General Tire & Rubber Company needed a 250,000 sq. ft. regional office, warehouse and distribution building, in the O’Hare Airport area. We conducted a property search but there were no buildings available that met their size and timing requirements. We expanded our search to other adjacent communities, found some suitable buildings, but they were just not satisfied with the locations.
After several discussions I convinced them to construct a building to their own specifications. They agreed to do this if I could find them an acceptable site at the right price. I found a land site containing 28 acres which was of great interest to them, only to learn that it was under option to another company.
I then met with the President of the company, who informed me that they obtained the option two years earlier and had the exclusive right to purchase the property at a price that was significantly below the current market. They told me that they did not need the property for themselves, and that their option was going to expire within a couple of days. I immediately recognized this as an excellent opportunity to acquire the property at a substantial cost savings, and convinced the option holder to exercise their option and sell the land to General Tire.
This transaction was literally negotiated and closed at the eleventh hour. Both companies profited. General Tire & Rubber Company then constructed a 325,000 sq. ft. building. The larger than originally anticipated facility reduced their per sq. ft. construction costs and gave them the potential for built-in future expansion. The original plan was to lease out the additional 75,000 sq. ft. but by the time the building was completed they needed the entire space for their own use.
According to the President of General Tire, this was one of the best deals they ever made. I solved their problem using a creative and a unique approach.