Greg Whittington, CCIM
President & Founding Partner
This client was in their first year of operations after separating from another company. As a start-up, they had moved into space with a partner on a short term sublease. After landing a few new contracts and two others that were pending, ProSupps (PS) found themselves landlocked. Their existing space was not adequate for growth or the functionality needed for future operations. PS had made the decision to bring manufacturing in house to increase quality control and reduce cost. They needed to find a way out of their current lease and in parallel find a new location that could house both their corporate and manufacturing function under one roof. All of this needed to be accomplished within 90 days
Spartan Partners assisted ProSupps in exiting their existing facility, followed by locating a new building that met their exact requirements. In addition to their corporate staff and sales team, their new state-of-the-art 55,000 square foot facility houses advanced manufacturing capabilities, including high-speed rotary compression machines, large volume blenders, and high efficiency milling machines, encapsulation machines, and tablet presses.
Spartan Partners market knowledge resulted in finding a building that was off the market.
The owner initially requested a $500,000 letter of credit/personal guarantee based on ProSupp’s lack of credit history, being that they were a new start-up. Through some creative negotiations and a unique deal structure, Spartan was able to eliminate the LOC in its entirety.
The services that PS received during this swift transaction included site selection, transaction management, move coordination and project management encompassing the bid process and execution of the construction for the new space.
ProSupps was able to move into their new facility on time and under budget. Their net ROI exceeded $875,000 over the term of the new lease