West Palm Beach, Florida
Delivered: November 2000
Total Cost: $3.9MM
• Plan: acquire 1.5 acres of a 40 acre site that were not on the market and perform a 15,000 square foot build-to-suit development for tenant Walgreen’s.
• Potential Deal Breakers: extensive off-site work needed.
Result: negotiated recapture agreement with property seller and Walgreen’s to relieve a substantial portion of off-site work costs.
Notable: First Walgreen’s build-to-suit performed by Trammell Crow company in its 50 year history
Cape Coral Walgreen’s
Cape Coral, Florida
Delivered: November 2001 | Total Cost: $2.785MM
• Plan: acquire vacant Miami Subs and perform a 15,000 square foot build-to-suit development for tenant Walgreen’s.
• Potential Deal Breakers: site too small to provide for tenant’s prototypical store.
Result: acquired vacant and adjacent 25,000 square foot Pep Boys building on three acres, split off one acre to Walgreens site, rezoned property from retail to medical office to reduce parking need, sold off former Pep Boys site less the Walgreens acre to local medical office developer
Jensen Beach Walgreen’s
Jensen Beach, Florida
Delivered: July 2005. Total Cost: $4.048MM
• Plan: acquire two acres that were not on the market and perform a 15,000 square foot fee development for tenant Walgreen’s.
• Potential Deal Breakers: extensive off-site work contributed to massive construction cost increases brought upon by global raw material shortages.
Result: re-negotiated Walgreen’s arrangement to build-to-suit lease; negotiated with property seller to bear a substantial portion of off site costs
Delivered: March 2005 | Total Cost: $4.618MM
• Plan: acquire operating Mobil gasoline service station, adjacent warehouse, and adjacent residential house that were not on the market to perform a 15,000 square foot build-to-suit for Walgreen’s.
• Potential Deal Breakers: operating Mobil reluctant to sell, former gasoline service station contained inherent contamination stigma; despite the acquisition of three properties, the site was still too small to accommodate Walgreen’s ideally-sized store.
Result: convinced Walgreen’s to commit to enough rent to support the cessation of Mobil operations, contamination not as bad as assumed and indemnity obtained from Mobil; acquired an additional 12,000 square feet from adjacent property owner Burger King by performing site improvements for Burger King
Delivered: May 2005 | Total Cost: $5.9MM
• Plan: acquire decrepit Exxon gasoline service station,
stand alone dry cleaners building and two adjacent houses that were not on the market, rezone to planned unit development, and perform a 15,000 square foot build-to-suit for Walgreen’s.
• Potential Deal Breakers: former gasoline service station contained inherent contamination stigma; dry cleaner owner unwilling to move; neighbors against planned development and therefore unwilling to support rezoning; store size so large that little on-site retention could be provided.
Result: contamination not as bad as assumed, indemnity obtained from Exxon and site designed around three monitoring wells; con-vinced dry cleaners owner and Walgreen’s to allow the construction of a 1,200 square foot attachment to Walgreen’s prototypical store for dry cleaners leaseback; negotiated neighbor support for planned development in exchange for our pursuit of a street vacation with County; street vacation, however, was ultimately denied; neighbors finally acquiesced due to the attempt; designed and budgeted nearly 1.5 acres of underground retention.