The five-year lease will begin in December 2003, the estimated completion date of the building rising at 1800 Midway Lane. The build out for Field Container will include 8,460 sf of office space; the rest of the space will be used for manufacturing, warehousing and distribution of packaging materials.
This is the first assignment given to Panattoni by Field Container Company. GBDH Design Group Inc. is the architect. Financing is being provided by Bank of America.
David McGahren, SIOR of Colliers Turley Martin Tucker negotiated on behalf of Panattoni Development, LLC and Doug Howard of Colliers negotiated on behalf of Field Container Company in the transaction. McGahren declined to provide the specific financials of the transaction, but the asking rate for space in the building is $3.35 per sf per month, and local brokers familiar with the transaction tell GlobeSt.com that the tenant is paying "very close" to the asking rate because the company required several upgrades to what is typically standard."
Panattoni's regional partner Ron Colter tells GlobeSt.com that Field Container is moving out of space previously owned by Pillsbury that is about 12 miles away from Southpark Distribution Center. "Pillsbury had let them occupy the space rent free because they did business together," says Colter. "When Pillsbury sold to General Mills, everything changed." The silver lining is that because of the acquisition more business is being thrown Field Container's way, prompting the expansion, says Colter.
The new building will be the fourth of five buildings planned at Southpark Distribution Center. The rest of the buidling has not yet been leased, but McGahren says there are several prospects for the space.
Field Container was considering available space in one of the existing buidlings in the park, but it was recently scooped up by Beck/Arnley World Parts Corp., which signed a lease for 118,000 sf that includes 11,400-sf of office build out. The remaining area is being used for the storing and distribution of automotive equipment parts. The five-year lease includes a one-time five-year renewal option.
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