Development

Case Study

3M Company

Park 88 and Peace Corporate Center, DeKalb, IL

Property Details

TRANSACTION TYPE

Redevelopment / Build-to-Suit

TRANSACTION DATE

2005, 2006, 2007, 2010, 2015

PROPERTY SIZE

2,518,620 SF

The Venture One development team prides itself in being able to meet the needs of our customers by delivering the high quality buildings, on time and on budget. Nothing speaks more to customer satisfaction than repeat business. Between 2005 and 2016 our team delivered five buildings for 3M. These buildings total over 2.5 million square feet.

In July 2015, 3M Company selected Clayco and Venture One Real Estate to serve as developer for its new 978,120 square foot build-to-suit at Park 88 in DeKalb, IL. This is the third building that Clayco and Venture One has completed for 3M in Park 88 over the last 10 years. This facility serves as the largest logistics center for 3M in the United States.

To meet 3M’s timeline of delivery and complete the building in under a year, the site work, foundations and floors went in before winter due to a precast shortage. This allowed the construction process to continue through the winter erecting the precast walls when they became available. In addition, the developer and its consultants were able to secure a variance for hazardous material rooms that are over 3 times the permitted size. A five year tax abatement program was secured for 3M and the value to them is estimated at $4 million.

In July 2010, construction commenced on a 650,000 square foot building (expandable to 1 million square feet) on 50 acres immediately adjacent to 3M’s existing building. The building contains 26,000 square feet of office which serves as the 3M regional distribution headquarters. It has 70 docks, 400 car parking, 400 trailer spaces and aerosol/red label rooms within the warehouse for flammable products. Venture One and Clayco received the “Industrial Development of the Year” award and was nominated for “Build to Suit Project of the Year” for the development of 1250 Macom Drive from the Chicago chapter of NAIOP.

In March 2007, construction commenced on a 410,400 square foot building on a 21.4 acre pad ready site in Park 88. The building was delivered on time four months later on August 1st to meet 3M’s occupancy deadline. The 32’ clear building has 14,000 square feet of office, 35 docks, 135 car parking and 154 trailer spaces. It contains aerosol and red label rooms within the warehouse for the storage of flammable products. 3M received tax incentives negotiated by the development team.

In 2005, Venture One acquired a vacant 1950’s construction crane building on 55 acres which had once been owned by Caterpillar to build tractors. Caterpillar had spent significant capital to construct 43 exterior docks and the building had good ceiling heights of between 24’ and 55’ clear. However it also had the following issues for distribution:

  • Column spacing every 20’
  • Uneven floor from 50 years of manufacturing use
  • No ESFR capability
  • Over 30 cranes ranging from one to thirty tons in five crane bays

Venture One created a redevelopment plan with Keeley Construction to renovate the building for distribution use. Significant work was completed in the building to remove cranes and obsolete equipment, reconfigure electrical systems, upgrade the fire protection to a Class 4 system, and recondition the warehouse floor to provide a level surface. The entire 277,000 square foot warehouse was leased to 3M for distribution. The remaining 25,000 square feet of office was renovated and leased to National Bank of Sycamore.

One year later, Venture One developed a 202,340 square foot building for 3M on the excess land and negotiated incentives on their behalf to reduce their occupancy costs. The building was completed in four months.