16 W. 030 83rd St. | Burr Ridge, IL
Relocation Services | Leasing
NelsonHill was hired as the exclusive broker to consult Popcorn Palace in their expansion needs. Mark and Michael Nelson, Principals with NelsonHill were brought in to work closely with Popcorn Palaces senior management team to consider such factors as location, initial square footage, future expansion requirements, functional layout criteria, occupancy date and financial implications.
Once the NelsonHill team had a strong understanding of the company’s operation, challenges and needs, they utilized their comprehensive database and contacts to survey all relevant building and site alternatives, and prepare a Market Report of every applicable prospective location, including such data as land size, building size, offering terms, amenities, and efficiency factors.
They then began the process of market review, advising and consulting on the different factors impacting each of the availabilities. With feedback from the client they eliminated the properties least advantageous and established a preliminary list of “candidates.” Finally, the brokerage team arranged and conducted tours of each “candidate” and highlighted relevant conditions – both positive and negative.
After four market tours over the course of six months, the NelsonHill team continued to review each building inspected and narrowed down the choices based on the client’s objectives and criteria. During this time, they helped the client get pre-approved for favorable SBA financing and made multiple introductions to different banks that began to compete for Popcorn Palaces business.
One building emerged as the favorite. This building was a 53,000 Sq. Ft., temperature controlled printing facility in Burr Ridge with lower DuPage County taxes. The value of the infrastructure was transferable over to Popcorn Palace’s operation. After a rigorous negotiation with the owner’s broker, the NelsonHill team created leverage by including another competing building. They also assisted the client by introducing an Indiana alternative as a means to gain incentives from Illinois.
Once the terms were agreed upon, and the Letter of Intent executed, the brokerage team continued to create value by working toward a fully-executed purchase contract between both attorneys. The brokers then assisted the client through his due diligence inspections: roof, environmental, sprinkler system and other physical inspections. Popcorn Palace was able to secure a historically low interest rate, with a 10% down payment and a 20-year fixed rate through the SomerCor 504 program.
Once Popcorn Palace closed on the building, NelsonHill was retained as the exclusive leasing agency to help lease out some overflow space in the building. Through NelsonHill’s marketing program, the brokers were able to solicit a tenant for 8,000 Sq. Ft. at terms acceptable to the client.