Colliers, in partnership with Alliance Partners, represented Mohawk Industries, the leading producer and distributor of flooring worldwide, in a 680,000-square-foot transaction with multiple parts that spanned more than 24 months.
Mohawk Industries occupied 253,800 square feet of warehouse/distribution space in Bolingbrook Corporate Center, Bolingbrook, IL on a 10-year lease with six years remaining. The company was seeking an additional 100,000 square feet and engaged Colliers to assist with the requirement. The additional 98,538 in Mohawk’s building was occupied by Nankang Tire, and while this seemed like the ideal occupancy solution, Nankang had a five-year renewal option.
Shortly thereafter, Mohawk Industries purchased Dal-Tile, Inc. This corporate acquisition changed the original 100,000-square-foot requirement to nearly 350,000 square feet of new distribution space and added a lease extension for the existing 253,800-square-foot warehouse.
The Colliers team approached Alliance Partners, which was already handling Mohawk’s real estate needs from Atlanta, and offered to help him in Chicago. Within six months of the initial contact, Colliers and Alliance Partners began work on Mohawk’s expansion.
IDI, the park’s developer, was completing speculative construction on a 285,000-square-foot building directly across the street. In a highly unique transaction, IDI agreed to lease 100,000 square feet to Mohawk in this building on a month-to-month basis and committed to allowing Mohawk to stay in this spec building until Mohawk’s long-term requirements could be fulfilled.
The Colliers team members were then able to secure the additional 98,538 square feet for ten years in Mohawk’s original facility when Nankang Tire surrendered its renewal option. In addition, Colliers helped Mohawk renegotiate their 253,800-square-foot lease, achieving a new ten-year lease term and a significant rent reduction for Mohawk in the process. The team was also able to secure the 6.7-acre land site directly adjacent to this facility, allowing for a future 145,000-square-foot expansion. To complete Mohawk’s requirement, the Colliers team successfully represented Dal-Tile in a 228,000-square-foot build to suit in the same business park.
The Chicago Chapter of the Society of Industrial and Office Realtors (SIOR) named this the Most Creative Transaction of 2004.