Case Study: Colliers not only helped plan the disposition of site, but also secured a record price
Colliers led the assembly of a consulting team including civil, geo-tech engineering and construction specialists for project’s financial feasibility.
Challenge: Chevron U.S.A. Inc. is a subsidiary of Chevron Corporation based in San Ramon, CA. Chevron U.S.A. engaged Colliers as an exclusive advisor for the disposition of the Chevron Northam Pump Station.
The Chevron Northam Pump Station suffered from significant contamination, requiring remediation and re-engineering. In addition, pipeline easements encumbered portions of the property.
As such, the Colliers team was asked to assist in the design and engineering of the site to support the development of a new proposed building. In addition, the team needed to provide comprehensive economic modeling to support the highest possible land value.
Strategy: Colliers led the assembly of a consulting team including civil, geo-tech engineering and construction specialists who were essential in supporting the project’s financial feasibility. The Colliers team assisted with pipeline rerouting and provided guidance for obtaining project approvals through the City of La Mirada and the State of California. Given the City of La Mirada’s requirement of extensive site studies to obtain preliminary development approvals, Colliers successfully facilitated meetings with planning department officials and consultants.
Result: Within six months, the Colliers team developed a comprehensive site plan to address the soil remediation, civil and geo-tech studies, and permits and entitlement. Colliers developed and circulated a comprehensive offering memorandum to more than 6,500 investors and obtained 25 qualified bids at pricing above historical market levels. After a best-and-final process, four bidders were identified and Duke Realty was ultimately the successful bidder.
The Colliers team completed due diligence within 30 days and secured a substantial nonrefundable deposit. Colliers successfully closed the transaction at a sale price that was the highest obtained in the Mid-Counties market for an industrial land site at the time.
Four months after the close of escrow, Duke Realty pre-leased the planned 478,000-square-foot distribution building to UPS on a long-term lease.