Cresa executes disposition and new lease for 3M Company
Tenant representation firm Cresa announced that it had executed the disposition of a 270,890 SF building and 42 acres of land for $31.91 million in Ontario, Calif., for 3M Company. As part of the transaction, Cresa Phoenix negotiated a 10-year lease on a 454,877 SF distribution facility to be constructed on a vacant parcel nearby.
The project team was headed by Doyle Shea, Real Estate Manager for 3M Company. 3M was represented by Cresa Phoenix advisors Gary Gregg, Mike Gordon, Ashley Snyder, and Eric Walker. Sam Foster, of Jones Lang LaSalle also participated in the transaction, and David Nazaryk of the Trammell Crow Company will handle the development of the new distribution facility, which breaks ground on July 22, 2014. The building is expected to be delivered on May 1, 2015.
“This was a complex assignment, and we looked at multiple scenarios for accomplishing 3M’s goals.” Cresa Phoenix Managing Principal Gary Gregg said. “We were able to achieve extremely favorable economic terms for 3M while making sure they have a state-of-the-art distribution center,” he added.
Cresa is the exclusive commercial real estate provider for 3M Company in the United States. With approximately 40 million square feet and 240 locations in the US, 3M’s portfolio features a number of distribution facilities strategically placed throughout the country. As one of the largest conglomerates in the world, their product line is extensive, with more than 55,000 products to date, including adhesives, laminates, electronic materials, building materials, and car-care materials, as well as others.