Ozburn-Hessey Logistics
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 nationwide and employs more than 5,000 associates. Customers include companies in the consumer products, electronics, food service, manufacturing, and pharmaceutical industries.
The Challenge
OHL had an existing lease for 450,000 square feet in the St. Louis marketplace that was expiring and a landlord who did not want to renegotiate the terms of the lease renewal.
Our Strategy
Our Strategy
We identified a shell warehouse that was being developed two miles from OHL’s existing campus. Based on market conditions, we knew that utilizing a sale-leaseback strategy would reduce lease costs and provide a significant benefit for out client.
Results
OHL placed the building under contract and during the due diligence period the developer completed construction of the building. Simultaneously, we then identified a buyer willing to purchase the building from Ozburn-Hessey and lease it back to them for three years. Within two weeks of OHL’s purchase of the Lakeview Two facility, it was sold at a substantial profit.