NAI Arranges 1.22 Million SF Distribution Center Lease for Sherwin-Williams
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, today announced NAI member firms in Dallas and St. Louis combined to represent The Sherwin-Williams Company in the renewal and extension of its largest leased facility, a 1,221,000-square-foot regional distribution center in Effingham, IL. The transaction is likely to be one of the largest industrial transactions completed in 2009.
President of Corporate Services at NAI Robert Lynn, Dallas, TX, negotiated the lease at 711 West Wabash Avenue in Effingham after an exhaustive process during which build-to-suits in several surrounding cities in Illinois and Indiana were considered. Lynn was able to secure facility improvements and economic incentives that will net Sherwin-Williams multi-million-dollar savings over the term of the lease. The transaction has an aggregate value in excess of $20 million. The three-building complex is owned by a private out of state investor.
According to Lynn, competition was fierce to entice Sherwin-Williams to another location as the facility employs more than 300 people. “While the company originally had a strong desire to upgrade to a new facility, we were able to leverage all of the options available in the current economic environment to give Sherwin-Williams a significantly improved facility and millions of dollars in cost savings,” Lynn stated.
“Although the process showed new construction was not our best option for this situation, I was impressed that NAI was able to identify several parties who could do a build-to-suit for our unique use, in a tertiary market,” said Madeline Muser Hayes, Director of Corporate Real Estate at Sherwin-Williams. “The end result was an extremely favorable lease extension and amendment.”
Lynn has represented Cleveland, OH-based Sherwin-Williams on more than 30 projects over the past 20 years. David Branding, Associate Broker at NAI DESCO, NAI Global’s St. Louis, MO, affiliate, assisted on the transaction. NAI Global manages a network of 325 offices and 5,000 professionals in 55 countries across the globe. NAI specializes in representing large corporations with multi-market real estate requirements and was recently rated the best performing network in the 2009 Watkins Research Group survey of corporate real estate executives.