Andre Granello with Ironsides Group completed a complex disposition, acquisition and sale-leaseback for nearly 200,000 SF for a global leader provider of self-storage and commercial industrial doors, relocatable storage units, facility automation solutions, and door replacement and self-storage restoration services. The company approached Ironsides Group with a long-term lease in place on a facility that was no longer functional and limited their production capabilities. Ironsides developed a strategy to release them of that on-going liability, secure a new state-of -the -art facility that allowed them to increase production, operate more efficiently and increase profitability.
Overview
Janus International, a global leader in self-storage and industrial door solutions, approached Ironsides Group seeking resolution for operational constraints and expansion opportunities.
Challenges Faced:
- Space Limitations: Existing facility lacked adequate space and parking, hampering warehouse operations.
- Dual Location Management: Janus operated from two separate sites, desiring consolidation for efficiency.
- Lease Complexity: Long-term lease with a non-traditional landlord hindered relocation efforts.
Ironsides Group’s Approach
- Assessment and Strategy: Recognizing the need for a comprehensive solution, Ironsides recommended a build-to-suit (BTS) approach to address space and operational challenges.
- Market Exploration: While evaluating BTS options, Ironsides continued to explore the market for alternative solutions.
- Strategic Negotiation: Identifying a suitable property meeting Janus’ needs, Ironsides advised on a bold strategy to secure the property without landlord consent, creating leverage for a favorable sale-leaseback arrangement.
- Optimized Deal Structure: Ironsides negotiated a sale price equivalent to 45% of replacement cost, enabling Janus to maintain current lease obligations while doubling their operational footprint.
Execution and Results
- Consolidation and Expansion: With Ironsides’ guidance, Janus successfully consolidated operations under one roof, enhancing operational efficiency.
- Cost Reduction: Ironsides’ negotiation prowess resulted in a 17% reduction in effective rental rates per square foot, significantly lowering Janus’ overhead costs.
- Operational Efficiency: By streamlining operations and consolidating facilities, Janus experienced improved productivity and profitability.
GALLERY
Conclusion
Through strategic planning, market insight, and negotiation expertise, Ironsides Group empowered Janus International to overcome operational challenges, achieve consolidation objectives, and drive significant cost savings, positioning them for sustained growth and success in their industry.