Throughout the first several months of the pandemic, one of the world’s largest and most successful food manufacturers witnessed a steady increase in consumer demand. To accommodate this increased need for more products, the company required the expansion of their existing distribution network.
Through a greater internal restructuring of its distribution network, the company recognized a need for an additional distribution center in Northeast Ohio. The organization’s national corporate real estate team reached out to Allegro Real Estate Brokers & Advisors, knowing that their history of successful transactions and knowledge of the region would help them find the perfect addition to their portfolio.
How One Commercial Real Estate Transaction Turned Into Three
Although the initial conversation centered around just one commercial real estate transaction in Northeast Ohio, the company quickly realized it needed to complete two additional transactions to meet its growth objectives and better serve its customers.
CRE Transaction 1: Twinsburg, OH
To meet customer demand, the company knew that it needed a new distribution center between Cleveland and Akron. After the initial proposals were sent, Allegro identified seven sites and received five proposals. Just six months later, the Fortune 500 food consumer product company signed a 10-year lease on a 109,000-square-foot, built-to-suit space for $8 million.
Throughout that brief period, the Allegro team maintained daily communication with the company’s national corporate real estate team and legal counsel, reviewed leases, and helped the team to understand local customs while working with them on the decision-making process.
CRE Transaction 2: Wooster, OH
While still finalizing the Twinsburg transaction, the Fortune 500 company realized it needed a second distribution center between Canton and Mansfield, OH. Allegro had the depth to pivot and focus attention as necessary as this project evolved, and maintained speed and precision when diverting resources to the Wooster site. Within one month, Allegro received six proposals from 10 identified sites.
In just two months, Allegro assisted the Fortune 500 company in securing their Wooster distribution center: An $8.7 million built-to-suit transaction for a 98,900-square-foot space. Although the food manufacturer initially wanted a 10-year lease, it ultimately signed a seven-year deal with renewal options due to limitations on project costs.
CRE Transaction 3: Massillon, OH
In the same month that Allegro finalized the Wooster transaction, the company identified an existing space in Massillon, OH. Allegro immediately engaged with the facility’s local broker and learned that it was a national sale of an asset due to the previous company’s bankruptcy filing. The following month, Allegro sent an unsolicited proposal on behalf of the food manufacturer, capturing the seller’s and national broker’s attention.
Because it was an existing facility, Allegro coordinated local tours and helped all parties understand the terms of the existing lease agreement. Throughout this accelerated process, Allegro spoke regularly with a small, high-level team at the Fortune 500 company to ensure the deal happened quickly and efficiently with no delays.
Just three months after their initial interest, the Fortune 500 food manufacturer signed a purchase agreement of $6.2 million for three buildings, totaling 48,000 square feet, on 108 acres. The site will serve as a truck maintenance and storage facility to service the Northeast Ohio region and provide enough land for the company to expand well into the future.
Ensuring Over a Decade of Growth and Customer Satisfaction
Allegro’s ability to manage and finalize these deals at such an unprecedented speed enabled the Fortune 500 company to quickly meet customers’ increased demands for its products now and in years to come.
The company will ultimately be able to utilize these Northeast Ohio hubs for more efficient distribution, thanks to Allegro’s expertise and flexibility to close a large number of transactions in a short span of time.
Do any aspects of this situation sound like something you’re facing? We can help. Contact us to discuss your real estate needs today.