Control Southern, Inc.
Summary:
The new owner of CSI had inherited a lease agreement that did not accommodate efficient expansion possibilities. CSI wanted to review the logistics and costs of expanding their operation into a leased facility as compared to completing a build-to-suit purchase. We immediately reviewed CSI's internal operations to improve facility efficiency, analyzed market residual value for a building acquisition, developed an acquisition strategy and completed a Lease vs. Purchase analysis. Also, CSI had to consider potential reduction of space needs and wanted to design a facility that could be sub-divided for additional leased occupants.
Results:
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Interviewed architects to complete space analysis, building design, construction drawings, and construction management. Negotiated architectural contracts. |
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Negotiated turnkey build-to-suit for reduced market fee. Bids were competitively bid with line item request for negotiating. |
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Completed Lease vs. Purchase analysis. |
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Owner has been able to increase lease rate by 10% each year |
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Building value has increased by 40% in four years. |
Cash on Cash return of 110%.