Ozburn-Hessey Logistics 2
Ozburn-Hessey Logistics, a leading third party logistics company, provides supply chain management services from a network of 20 primary campus markets throughout the US. Overall, OHL maintains more than 34 million square feet of dry and temperature controlled warehouse space at 150 facilities nation wide and employs more than 5,000. Customers include companies in the consumer products, electronics, food service, manufacturing, and pharmaceutical industries.
The Challenge
OHL was operating two different facilities in the Indianapolis market for the same client, a leading global manufacturer and marketer of nutritional products, which was creating inefficiencies from a transportation and labor standpoint. Consolidating into one food grade facility was desirable, but with the local Indianapolis bulk market tightening, options in the 600,000 square foot range were scarce.
Our Strategy
By combining this requirement with another OHL client already in the Indianapolis market, we were able to identify a facility that could accommodate both under one roof and obtain enough tenant incentives to cover necessary tenant improvements and the outstanding lease obligation of the existing facilities.
Results
We represented OHL in the lease negotiations with the building’s owner, ProLogis Trust, the world’s largest institutional owner of industrial property. The 812,000 square foot distribution center was located just off Interstate 70 in Plainfield, Indiana, west of the Indianapolis International Airport. The transaction represented the largest 2006 deal in Indianapolis, and the largest lease in 2006 across ProLogis’ entire North American portfolio.