Northstar Ceramic Trading, LLC

14500 E. Beltwood Parkway
Dallas, TX 75244

Assignment Size

50,000 SF

Occupier Services Provided

  • Site Selection
  • Cash Flow Analysis
  • Pre-Acquisition Due Diligence
  • Contract Negotiations
  • Sublease Marketing
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The Challenge

Northstar Ceramic Trading, LLC (Northstar), was experiencing explosive growth and needed to expand to meet revenue opportunities. The decision was made to relocate from their current 16,000 square foot location to a new 50,000 square foot facility. The preference by ownership was to own their next location in order to control the flexibility, productivity and profitability of the organization.

Our Strategic Approach

  • Northstar wanted to stay in the same submarket, which had few viable opportunities. Ownership of a commercial property was a new endeavor for the company. They had limited access to information on how to move forward to execute the purchasing initiative.
  • The existing facility needed to be subleased concurrently with the purchase of the new location in order to prevent duplicity of rent/debt service payments
  • Speed-to-market was critical because the business relied heavily on being able to move greater volume of product in a shorter period of time.

This strategy needed to be executed in a confidential and effective manner while managing the motivations, planning, budget and time lines of three differing organizations.

The Outcome

A competitive environment was created by aggressively negotiating the opportunities to purchase achieving the most economic pricing possible. Northstar was successfully advised through an onerous institutional sales contract. The acquisition of the new facility was closed contemporaneously with the sublease of the existing facility. The financial result was a savings of $144,354.

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