Build-to-Suit
Cambridge Hanover’s senior management team has extensive industrial development experience. This expertise combined with the company’s national network of leasing brokers has allowed Cambridge Hanover to selectively pursue build-to-suit projects. Corporate tenants and leasing brokers come to Cambridge Hanover because of the company’s financial strength and ability to react quickly to tenant specific demands, identify land parcels for development, and oversee a team of architects, contractors, and engineers to complete projects on time and within budget.
Case Study: 17 Forge Parkway (Franklin, MA)
The Keebler Company needed to double the size of its distribution capacity in the Boston market, but was locked into an existing lease fir a 45,000 square foot facility with a remaining term of 3½ years. The tenant’s initial plan was to build a second new 45,000 square foot facility in order to accommodate its requirement short-term, and then upon lease expiration of its original space, expand the new building. However, the cost inefficiencies of running two facilities would be prohibitive; additionally, Keebler’s plan for this second facility with expansion capability did not provide for economies of scale, further adding to the tenant’s overall occupancy costs. In order to provide Keebler with operational efficiencies and lowest occupancy costs, Cambridge Hanover both assumed the original lease and constructed a new 84,000 square foot distribution facility with Keebler’s specifications. Subsequently, Cambridge Hanover found a tenant to sublease the old facility. Cambridge Hanover later sold the building in 1993 to a publicly traded REIT which had acquired a number of Keebler-leased buildings across the country.
