52PROFESSIONAL REPORT | WINTER EDITION 2013
COOPERATING SIOR MEMBERS
• Kyle Roberts, SIOR, CCIM, Newmark Grubb Knight Frank, Salt
Lake City, UT
• John T. Barker Jr., SIOR, Red Rock Developments, Charlotte, NC
• Gabriel Silverstein, SIOR, Angelic Real Estate, New York, NY
In the summer of 2012, Kyle Roberts had a client interested in a build-to-suit: Nicholas and Company, a family owned food distribution company. This project was to be in Las Vegas, NV, where the company had purchased land years earlier. Nicholas needed over 180,000 square feet of freezer, cooler and dry storage, and administrative space. Roberts and his NGKF team had spent nearly two years with the tenant evaluating their
options of building on the current site, going to an existing building and
retrofitting it, or doing a build-to-suit. Ultimately they determined that the
land Nicholas previously bought was unsuitable for the project, and existing
space options could not meet the Nicholas needs, and a build-to-suit was the
appropriate solution. Roberts led the efforts to identify and secure a new,
better site, which also entailed cooperating with local municipal leaders to
garner incentives to benefit Nicholas.
In the first quarter of 2013 Nicholas was finally ready to go to market, and
Roberts and his NGKF team spearheaded the competitive bid process among
a short list of highly qualified national build-to-suit developers. Having
already proven themselves on the last project, the Red Rock/Angelic team
assembled a very competitive build-to-suit-to-lease bid that made the final
two. Juggling multiple finalist capital partner options and pricing negotiations, the Red Rock/Angelic team were able to accept
the terms and commit to fully negotiating and signing the deal in 30 days or less. And to funding roughly $1 million of pre-development costs before Red Rock would be able to close on the land.
• Nicholas needed specialty frozen and refrigerated food distribution space in one of the weakest industrial markets.
• Nicholas wanted to achieve flexible lease terms that locked costs in at a fixed amount for 20 years and still preserved
operating lease treatment.
• Nicholas needed to select a team that was willing to reimburse and fund over $1 million of pre-development costs even
before it owned the land, and who was able to fully negotiate and sign a lease from scratch in 30 days.
• Twenty year NNN lease plus renewal and other options
• Build-to-suit-to-lease structure where developer and capital partner funded 100 percent of the project costs and Red
Rock took the risk on construction success and guaranteed completion.
• Red Rock agreed to work with Nicholas’ desired contractor and to interface with and quickly integrate the contractor
JOHN T. BARKER,
JULY 22, 2013
BUILDING T YPE INDUSTRIAL
BUILDING SIZE 180,235 SQ. FT.
SALES PRICE $50,456,028