Case Study: Mohawk

Mohawk Industries

Bolingbrook Corporate Center - Bolingbrook, IL
680,000 Square Feet

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BACKGROUND

Colliers Bennett & Kahnweiler (Colliers B&K), in partnership with Alliance Partners, represented Mohawk Industries, the leading producer and distributor of flooring worldwide, in a 680,000-square-foot transaction with multiple parts that spanned more than 24 months.

Mohawk Industries occupied 253,800 square feet of warehouse/distribution space in Bolingbrook Corporate Center, Bolingbrook, IL on a 10-year lease with six years remaining.  The company was seeking an additional 100,000 square feet and engaged Colliers B&K to assist with the requirement.  The additional 98,538 in Mohawk’s building was occupied by Nankang Tire, and while this seemed like the ideal occupancy solution, Nankang had a five-year renewal option.

Shortly thereafter, Mohawk Industries purchased Dal-Tile, Inc. This corporate acquisition changed the original 100,000-square-foot requirement to nearly 350,000 square feet of new distribution space and added a lease extension for the existing 253,800-square-foot warehouse.

APPROACH

The Colliers B&K team approached Alliance Partners, which was already handling Mohawk’s real estate needs from Atlanta, and offered to help him in Chicago. Within six months of the initial contact, Colliers B&K and Alliance Partners began work on Mohawk’s expansion.

RESULTS

IDI, the park’s developer, was completing speculative construction on a 285,000-square-foot building directly across the street.  In a highly unique transaction, IDI agreed to lease 100,000 square feet to Mohawk in this building on a month-to-month basis and committed to allowing Mohawk to stay in this spec building until Mohawk’s long-term requirements could be fulfilled.

The Colliers B&K team members were then able to secure the additional 98,538 square feet for ten years in Mohawk’s original facility when Nankang Tire surrendered its renewal option.  In addition, Colliers B&K helped Mohawk renegotiate their 253,800-square-foot lease, achieving a new ten-year lease term and a significant rent reduction for Mohawk in the process. The team was also able to secure the 6.7-acre land site directly adjacent to this facility, allowing for a future 145,000-square-foot expansion.  To complete Mohawk’s requirement, the Colliers B&K team successfully represented Dal-Tile in a 228,000-square-foot build to suit in the same business park.

The Chicago Chapter of the Society of Industrial and Office Realtors (SIOR) named this the Most Creative Transaction of 2004.