Goals:
To find or build a space suitable for housing the PA NAM U.S. Headquarters. The desired facility was to be 55,000-70,000 square feet and within a 20 minute drive of the MSP airport.
PA NAM Corp. (PA NAM) is a Italian based world leader in the manufacture of high-pressure commercial power washer component parts. PA NAM desired to open a new U.S. Headquarters and their first U.S. manufacturing plant to supplement their Italian plant production. After an extensive search for a new facility, the company purchased a 64,000 square foot industrial building in Bloomington, MN.
The industrial market was experiencing all-time peak demand for new and existing buildings and subsequently, building options were limited. The original building desired for purchase did not work out as a much larger company outbid us for the building. This building was our backup and still met the key criteria but had larger remodeling needs and environmental issues to address.
After an extensive search within the defined search area, the list of alternatives was narrowed to three properties. We desire to have at least two properties involved with our search. This provides leverage for us in negotiations and as a backup option, in the event the first option does not come to pass. The most desired property was in Eagan, MN, but at the 11th hour the owner decided to sell to a Fortune 500 company.
Subsequently, we pivoted to our second most desired location in Bloomington. The property consisted of a 1970’s building with 20 ft. clear height and approximately 64,000 sq. ft. of industrial production and warehouse space. The building was in good condition and ultimately this building was selected and purchased in December 2019.
IAG Commercial Advisors, Jeff LaFavre and Bob Valentine worked with PA NAM Corp in defining the client needs, researching building alternatives, touring the market and negotiating the price with the seller, Taylor Corporation and their broker CBRE. IAG and the PA NAM worked closely with the state and local government officials to maximize the use of available incentive tools. IAG led the effort in coordinating architect and construction interviews and selection.
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