Tenant Rep Deal Minnetonka
Congratulations to Production Automation Corporation (PAC) on moving in to their new 12,864 SF office/warehouse space at Carlson Business Center in Minnetonka on 11/1/19.
Peter Kordonowy with Summerhill represented the Tenant and Ryan Krzmarzick, Andrew Odney, and Erik Nordstrom with Colliers represented the Landlord WPT Cheshire Lane, LP in this lease transaction.
Summerhill also marketed PAC’s old 6,255 SF space at Westwood I in Eden Prairie for sublease, and did a direct deal with the new subtenant Health Innovations of America to take over PAC’s old space on 11/1/19 (the day PAC moved out!) Peter Kordonowy and Joe Smith represented PAC in the sublease transaction, which was a direct deal.
PAC is a leading distributor for life science, aerospace, electronic, and industrial manufacturing industries, and they have 3 national, and 4 international, locations, and their new space in Minnetonka is their corporate headquarters. As part of the new Lease transaction, Peter was able to negotiate a sizable Landlord contribution toward the overall $350,000 total tenant improvement cost, and Peter was able to meet with the client and general contractor onsite weekly throughout the project to help bring the job in on time, on budget, and to PAC’s satisfaction. It was a team effort with a successful end result.
PAC’s previous space consisted of 6,255 SF of office/warehouse space with about 3,000 SF of office at Westwood I in a building Summerhill manages for a Landlord client. PAC had been operating out of their Eden Prairie office Midwest/Corporate headquarters at Westwood I successfully since 2005, however, they had growing warehouse needs, and decided to hire Peter Kordonowy with Summerhill as their Tenant Representative in the market to find them new space. The exhaustive space search process yielded a few good options (in a relatively tight market), 1 of which resulted in them finding, and moving into, their new corporate headquarters at 121 Cheshire Lane on November 1, 2019. The $350,000 tenant improvement cost included building out about 4,500 SF of new office space in a 12,864 SF overall space. Building out the new office required a lengthier term lease, and some Tenant contribution to the tenant improvements, but, in the end, PAC got the exact space they wanted delivered on time and on budget.
Because their old space had over 2 years of term left, PAC also hired Summerhill to market their old space for sublease. Their old 6,255 SF space had gotten significant updates from the Landlord in 2016, which helped in marketing the space. Joe Smith and Peter Kordonowy with Summerhill were able to find a subtenant for their old space with a sublease commencement date effective the day PAC moved out. This was a direct sublease deal, and the new subtenant, Health Innovations of America took the space “as is”. PAC was able to mitigate most of their remaining lease obligation in their old space as a result of the sublease.