Yeti Cycles

We met Yeti’s team through a referral from an existing client. At the time, Yeti Cycles was looking to buy an industrial building or build their own. They had a specific requirement of needing to be within a five-minute ride to a certain mountain-bike trailhead. After analyzing existing nearby warehouses for sale, we focused on land availability. After making an introduction to the local economic development council, running build scenarios, and introducing contractors, we shifted gears towards finding a warehouse for lease. This allowed Yeti to keep the capital required for a building acquisition/build and apply it toward further growing the renowned Colorado company.

We structured a new warehouse lease with a brand-new buildout with room for expansion, complete with showers and lockers for post-ride, Yeti turquoise on walls, and a bar for post-work team building.

OUTCOME:  A perfect vision-filling space that turned from a want to purchase to the desire to lease using information provided by the team, as well as growth options for the future

Applied Control Equipment

One of the Benchmark Commercial owners was referred to Applied Control Equipment, an Emerson valve distributor. Applied Control assembles and refurbishes large valves for the oil and gas industry, as well as others, such as Coors Brewing; they’re a culture-driven company that has been voted “Best Small Company to Work For” multiple times by CoBiz magazine!

Originally Applied Control preferred the idea of expanding at their current location. However, after interviewing and building a team with a Project Manager, Developer, Architect, and contractor, we found that they had a long-term business plan of 20+ years. The current space would work for up to five years, but looking 20 – 30 years ahead, we needed to look outside the current building to find the ideal warehouse office space.

As part of due diligence, we met with county officials to determine possible incentives for Applied Control. After doing so, we recommended they consider building the ideal office space and warehouse to meet their business needs.

Seven acres of land was purchased, and 40,000 SF of office space, complete with a mountain-facing glass curtain wall, and 25,000 SF of warehouse and assembly was built. With two cranes and additional poured concrete footing ready-to-go today, Applied Control is ready to add up to an additional 50% more SF to this space as they continue to grow. Additionally, we were able to negotiate having most of the utilities to the site paid for by the seller, making this an all-around win!

OUTCOME:  Applied Control Equipment is set up for the future; they can continue their long term upward trajectory without previous facility limitations.

Namasté Solar

Namasté Solar, a Colorado-based solar electric company, had outgrown both their Boulder and Denver locations and were seeking new office and warehouse space for lease. Namasté had unique needs for their space. With company values focused on reducing environmental footprints, being engaged in the community, and fostering a collaborative, harmonious team environment –Namasté needed a flexible space, an open floor plan to foster collaboration and creative flow, as well as room to grow in a community they could truly call home.

The Denver Location:
Namasté’s desire to be engaged with the community meant they needed a central Denver location with a high population density and opportunities to give back to the community. Additionally, ease of access to I-25 and I-70 was a must for Namasté’s delivery trucks. With these needs in mind, and an extensive search of over 25 locations, we toured a building on Federal Boulevard, right on the edge of the Sun Valley EcoDistrict. Sun Valley recently received a $30 million-dollar federal grant from the U.S. Department of Housing and Urban Development for neighborhood restoration, with some of that being focused on retail revitalization and renewable energy. Moving into this location would provide Namasté the community involvement they needed – bringing additional jobs to the area, volunteer opportunities, and the ability to participate in the community’s revitalization. Initially, Namasté wanted to lease, but after assessing their all-in cost with renovations, we suggested they consider purchasing instead. We were able to coordinate a discussion between the building owner and Namasté where they found their core philosophies and vision for the building aligned, and the landlord agreed to sell instead of lease. Finding the ideal office space for sale, Namasté’s Denver location now has approximately 25,000 SF to customize and grow into for years to come!

The Boulder Location:
Namasté, having started to Boulder, wanted to keep their roots firmly planted in the community. This location had similar requirements – visibility, ease of access to major roadways, continued community involvement, and ample parking. After viewing nearly 20 locations, we were able to find a unique location perfect for Namasté. A 31,000 SF industrial building, renovated into office spaces, with a loading dock on the back to meet their warehouse needs. Complete with ample community spaces and even a covered bike rack, easy access to bike paths, showers, and gym space, this building provided a healthy work environment and easy commute options which align with Namasté’s core philosophies.

 

Outrigger Energy

Outrigger Energy is a new company with a successful heritage. The team that founded Outrigger already had a successful track record in the midstream sector of the oil & gas industry. Benchmark Commercial was chosen to help identify and negotiate for an office space that would reflect past success but not burden the new company with unreasonable startup and on-going occupancy cost.

The Tabor Center was the first choice from the beginning but didn’t have the right size office space for rent currently available. After negotiating on two other landlords, the size and timing coincided, and the right space became available! The new offices for Outrigger required minimal changes to fit their needs and a portion of the Tenant Improvement Allowance was set aside for future use or to reduce future rent.

Initial Landlord Proposal Benchmark  Negotiated Terms Total Savings
Square Feet 6,829 6,829
Free Rent 0 months 4 months $59,184.68
Effective Rate $28.00 $25.78 $17,704.87
Tenant Improvement Allowance $0.00 $170,725 $170,725.00
Real Estate Fee Paid by Landlord Paid by Landlord
TOTAL SAVINGS $247,614.50

 

“Thanks for all the time and effort spent the last few months getting our office space figured out. I’m very happy with where we ended up. I appreciate your professionalism and attention to detail and will certainly recommend your services going forward.
I wish you guys the best on the continued success for Benchmark Commercial and look forward to staying in touch.”
– Dave Keanini, President & CEO, Outrigger Energy

Western Dairy Association

Western Dairy Association (WDA) is a non-profit, dairy farmer-funded organization that works to promote dairy products as part of a healthy staff lifestyle. Tanner met with Cindy French, President & CEO of WDA. There were two main tracks for the future of WDA, as with most of our clients: Lease or Buy? Leasing offered two options: Staying in their previous location would have involved another lease for three to five years, or seeking out a new location.  There are always pros and cons to weigh – extending their lease would be simple and would not involve moving costs and downtime. Moving to a new location, whether through purchase or lease, brings about the concern of employee retention and downtime. The benefits of finding an office space for lease include no initial capital contribution and more flexibility. Owning a building offers the benefits of known costs, tax incentives and controlling one’s own destiny.

Own:

Example on a $1,000,000 purchase:

30% down: $300,000
Loan: $700,000
4.5% interest rate
20 year amortization

Monthly principal and interest:
$4,429/mo plus expenses of approximately $4,500/mo ($8/SF on 7,000 Sf)

TOTAL MONTHLY: $9,096/mo

Lease:

Renew at current location:
Full Service $8,943/mo ($20/SF x 5,366 SF / 12 mos)

Move to new location:
NNN ($9.75/SF x 4,200 SF / 12 mos + $4.49/SF X 4,200 SF / 12 mos)

Ultimately, WDA chose to lease new office space. Tanner worked diligently to negotiate an office lease agreement with turnkey improvements on behalf of WDA.

Outcome:

WDA now has 2100 sf of warehouse and 2100 sf of office space for the next five years with turnkey improvements (new carpet, garage door opener, dishwasher, and additions of walls and doors) to customize the space to fit their needs for the future.