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Owner Representation
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| Name of Building: | NISC Headquarters |
| Building Size: | 63,000 SF |
| Address: | 4178 N. Service Road
St. Peters, MO 63376 |
| Description: | St. Charles Commercial Real Estate Broker: Keith Schneider, CCIM, SIOR
Submarket: St. Charles, MO
Gross Leasable Area: 63,000 SF
Building Type: Office
Transaction Date: March 2005
Previous Owner: National Information Solutions Cooperative (NISC)
Challenge:
NISC was in the process of constructing a new 135,000 square foot office building in Lake St. Louis, MO, and was working with a competing brokerage house to sell their existing 63,000 square foot facility in St. Charles, MO. The existing facility was on the market for approximately 2 years, when Keith Schneider, CCIM, SIOR was contacted to present how CTMT can utilize its resources to dispose of the property.
CTMT’s Solution:
The property was offered for sale only, and NISC made it clear it was not interested in being a landlord. CTMT’s analysis indicated that it would be beneficial to employ a more aggressive marketing strategy, and to offer the property for sale and lease simultaneously. If a tenant was secured, the property would immediately be offered to an investor. NISC agreed with the marketing plan and listed the property for sale and lease with CTMT.
Results:
CTMT responded to a request issued by the U.S. Army Corps of Engineers; the COE was searching for a facility to relocate the Army Medical Reserve Unit from downtown St. Louis. Government representatives toured the facility in August 2004, and submitted a Letter of Intent to Lease later that month. The COE indicated that as a governmental entity, it could only enter into a year-to-year lease; however CTMT suggested a five-year lease with annual termination rights and diminishing penalties. During the course of the following months, the business terms of a five-year lease were agreed between NISC and the COE. As a lease document was being prepared, a targeted list of investors was prepared, and the property was offered as an investment sale, subject to finalization of the government lease. An investor entered into an agreement to purchase the property, and became actively involved in finalizing the lease along with NISC.
The five-year lease with the COE was executed on the same date that the sale closed with the investor/buyer. The lease generated a sale price that was higher than the asking price. The CEO of NISC included the following in an internal memo to its 200+ employees:
“With the sale of this property behind us, I would like to share a few observations and lessons learned. In our business we say, “Pick your partners carefully.” And that was certainly the case when we listed the property with Keith Schneider of Colliers Turley Martin Tucker. We found in short order that he shared the same values that we aspire to, which was very reassuring. He worked side-by-side with NISC employees to creatively develop a rather complicated sale/lease transaction that proved to be of significant benefit to NISC, TM Investments and the Army Medical Corps. As Stephen Covey would say, “Truly a win-win situation.”
The job that our employees did in working with Keith to complete this transaction was commendable. Their diligence and sense of fairness allowed us to negotiate a selling price that exceeded our expectations. . . “
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Build to Suit
Owner Representation
Colliers Turley Martin Tucker
1551 Wall Street
Suite 200
St. Charles, MO 63303
Phone: 636-949-9797
Fax: 636-949-8955
Keith Schneider, CCIM, SIOR
kschneider@ctmt.com
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Mike Statter, CCIM, SIOR
mstatter@ctmt.com
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Ben Cahill
bcahill@ctmt.com
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Colliers Turley Martin Tucker
