Patriot Equities

Case Study

Patriot Commons, East Greenwich, RI

  • Patriot Equities
  • Patriot Equities
  • Patriot Equities
  • Patriot Equities
  • Patriot Equities
  • Patriot Equities

Challenge

ON Semiconductor housed its Northeast engineering, design, and manufacturing operations in this 170,000 square foot facility in East Greenwich, RI. ON acquired this asset in the 1990s and remained active here until the company consolidated its operations to another location in early 2005.

When it came time to bring this industrial facility to market, Senior Management quickly discovered there was little demand for highly-specialized manufacturing product in New England. The prospect of a long and arduous sale was troubling, as the company was simultaneously accumulating additional operating expenses at a new location. ON needed a buyer with either a specific need for this specialized asset or the creativity to undertake a complete redevelopment to a higher and better use. Beyond that, the site’s disposition was further hindered by legacy environmental issues and an existing zoning ordinance which would make it difficult to convert the asset’s use from manufacturing to office.

Solution

Patriot moved in and put together a development plan to convert the former manufacturing facility to Class A office space, in-line with the market’s demand.

Extensive redevelopment experience enabled Patriot’s development team to quickly address the site’s challenges and hone in on the inherent features of the building that could be capitalized upon to provide significant cost savings relative to new construction. Patriot’s internal operating platform and strong partnerships with local municipalities and service providers ensured efficiency during the due diligence and closing periods. This synergy ultimately allowed for Patriot to close on the asset in 45 days, before all environmental remediation and entitlement issues were fully resolved.

Result

By partnering with Patriot, ON eliminated the liability and challenges associated with owning an asset. Its’ manufacturing operations realized greater efficiency in a new location and in the end, capital tied up in the property can now be redeployed back into the company’s core semiconductor business.

Since adaptive reuse of existing buildings often affords a lower cost basis over new construction, future tenants of Patriot Commons will experience a direct economic savings though highly competitive rents and creative design. Additional redevelopment will include a new façade, roof, HVAC and bathrooms, 18’ high finished ceilings, and an internal courtyard and collaborative area to provide for the largest block of contiguous space in the Providence market.

Seller

ON Semiconductor

Transaction Type

Acquisition - Vacant Manufacturing

Use

Office Redevelopment

Size

140,000 Sq. Ft.