SVP, Anderson Merchandisers
Anderson Merchandisers, LP, is one of the nation’s leading distributors of prerecorded music, movies, books and digital content materials. Anderson’s clients encompass all segments of the prerecorded and digital market place, both domestically and internationally. With the continual consolidation of the prerecorded distribution business in conjunction with Anderson’s aggressive acquisition model and intended purchase of their largest competitors in this industry, the challenge posed to RESOURCE Commercial was to assist Anderson’s Supply Chain model changes relative to their existing real estate configuration and find a large enough distribution space to accommodate their largest domestic business acquisitions. The initial requirement was to identify Central Indiana Bulk Distribution locations that could satisfy a minimum of 500,000 SF and support an aggressive new employee hiring requirement as part of the new distribution site.
Anderson Merchandiser’s main priorities for this project were total confidentiality of who they were, since they had multimillion dollar business acquisitions that were “under contract” prior to identifying the real estate for the project. In addition, the client also demanded the most up-to-date market comparables and property availabilities for Central Indiana to help guide their real estate analysis. In order to fully exhaust every lease opportunity, sublease opportunity, REO opportunity and potential sale opportunity that could address a distribution center size of 500,000 to 800,000 SF, the RESOURCE Team incorporated the assistance of their Market Research Specialist as well as the many local Economic Development relationships they had established in the State of Indiana. The strategy of balancing the overall cost of occupancy, understanding the labor market for each specific location and aligning with credible Landlord/Owners was key to the orchestration of the market search, property tours and ultimate identification of the best options for Anderson Merchandisers to consider.
By leveraging the market knowledge and wealth of experience of the RESOURCE Industrial Group, Anderson Merchandisers secured a 703,496 SF single tenant building that had the infrastructure, labor force, warehouse flow and specialized equipment necessary. In addition, the lease transaction will enable them to maximize their investments with the businesses they purchased and ultimately fill this distribution with their technology and people, while solidifying their industry-leading position within the marketplace. The lease rate secured for the project was $.60 PSF below comparable market options and the multi-million dollar value in the specialized material handling equipment, sortation equipment and mezzanine space were a significant value add to the Anderson Merchandising value proposition at this location.
Note: We have several professionals with substantial client transactional experience prior to joining RESOURCE Commercial, which is included above.