Patriot Pioneer Park, Charlotte, N.C.

Challenge

Duff-Norton Company (acquired by Columbus McKinnon) operated from this 240,000 square foot manufacturing facility in Charlotte, NC since the 1950s. In 2006, a closer review revealed that as the company’s business and product lines evolved, so had its use of this asset.

Potential reconfiguration of operations and sale of the site would provide Columbus McKinnon with an opportunity to monetize this underutilized real estate and make Duff-Norton more efficient. The company needed a buyer that could overcome the challenges of this fifty-year old, user-designed facility to maximize the assets value, and shrink Duff-Norton into what was truly required to support its business.

Solution

As the site was marketed, Patriot contacted Columbus McKinnon directly, and was referred to Duff’s real estate advisor in Charlotte. Having experience in many similar acquisitions from corporate sellers, Duff felt comfortable in Patriot’s ability to execute on this opportunity. Working closely with Columbus McKinnon to understand its real estate goals, Patriot navigated through all facility, occupancy, general acquisition and cost issues to seamlessly reach a successful closing.

Result

Duff-Norton retracted its manufacturing and office space in the facility to 140,000 square feet and signed a new 10-year lease. By doing so, the company was able to upgrade its offices to increase efficiency while maintaining a long-term presence in the City of Charlotte. Furthermore, Duff-Norton now had proceeds from the sale to reinvest into its core business.

Patriot’s demising and occupancy plan provided Duff-Norton with the flexibility needed to make a smooth transition from “owner” to “tenant”. The newly available 90,000 square feet of vacancy will be reconfigured and modernized to allow the building to be multi-tenanted for other industrial uses. As the Charlotte industrial market continues to grow, this vacancy will be a welcomed addition.