| Ford is a leading global automobile company located in every market in the world. The New York Tri-State Region is one of Ford’s largest customer bases. To dispose of a 1,000,000 sq. ft. brownfields car/truck assembly plant on 100 acres built and expanded throughout the 1930’s – 1980’s. The property is located on US Route 1 and is a prime candidate for redevelopment to several higher and better uses. The facility is located in Edison, New Jersey where the political climate is very fractured and indecisive. Ford needed to sell the facility as quickly as possible and still obtain top of the market pricing. |
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Through a series of strategy sessions and detailed analysis it was determined that a Competitive bid process to politically engaged, select, local mixed-use developers was required. CB Richard Ellis’ challenge was to implement this plan to accommodate Ford’s required immediate close and non-contingent contract. CB Richard Ellis in conjunction with Ford Land, assembled the project team to develop a strategy and implementation for this key project. Services included market opportunity analysis (Created formula for value add upside based on developer’s proforma), developer capability discovery, proposal solicitation, proposal analysis, and document/terms negotiation.
Results
CBRE as Ford Land’s alliance partner, created a competitive atmosphere that drove the price up and greatly improved the terms of the deal. As an example, the winning developer bid included an upside for Ford Land if the final development project reached certain milestones. CBRE was successful in further negotiating the final proposal which resulted in an incredibly quick non-contingent closing. This enabled Ford to meet its internal goals on time and at better than projected terms. As a result of CB’s partnership with Ford, the Edison Assembly Plant was signed, sealed, and delivered in record time and in excess of everyone’s expectations.
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