Tight Market Limits Options

Global Food Properties was honored to support a fast-growing, non-dairy foods manufacturer in its recent expansion. Historically low vacancy posed challenges, as did the necessity of uncovering Class A refrigerated production capacity. Fortunately, the team identified a facility, quietly available, presenting a suitable refrigeration, process steam, and waste pre-treatment infrastructure.

Challenge

Industrial vacancy remains near all-time lows. Evolving food-safety regulations further challenge the viability of pre-existing facilities. Moreover, even high-audit facilities require further customization, to include creating linear efficiencies; raising ceilings to accommodate automation; and preparing the infrastructure for expansion. Here, the Client’s speed-to-market pressures translate into a comprehensive renovation room-by-room, allowing production to commence quickly and expand as production increases.

Outcome

The transaction’s closing as anything but random. The property was not marketed formally, so data and price expectations were undefined. Further complicating negotiations was a robust inventory of processing equipment included with the plant, only pieces of which appealed to the Buyer. Armed with access to pre-existing intelligence on the M&E values, Global Food Properties introduced a third-party manufacturer interested in acquiring what equipment remained, thereby allowing for an accelerated due diligence and closing.

Again, Global Food Properties was delighted to orchestrate a multi-party transaction, involving a private opportunity beyond public view, and we wish our Client, the Buyer, unbounded success as his important journey unfolds.

For additional details, please contact: Jeffrey J. Counsell, Co-Founder & Managing Broker, Global Food Properties +1 312 589 8844 / jeff.counsell@globalfoodproperties.com.