what cre leaders have organization…€¦ · colliers international “as an owner, developer and...

WHAT CRE LEADERS HAVE SAID ABOUT THE ALLIANCE

ORGANIZATION…

“Alliance’s TeamOne was retained for one half of our National and International work assignments for AT&T, Lucent and Avaya. Alliance performed at a superior level throughout their contract periods, and we would welcome continuing future work allocations with Alliance. The AT&T and operating unit case studies speak for themselves.”

– Celeste Prestinario, Senior Director, EVP Corporate Real Estate AT&T | Lucent | Avaya

“Bret expanded TeamOne while at CBRE that initiated several specialty practice areas not previously identified by the firm; significantly advanced the scope and quality of the firm’s tra-ditional work product; and delivered the highest revenue and profits of all production units of the firm.”

– Ray Wirta, CEO, Chairman of the Board CBRE

“Alliance’s TeamOne is second to none when it comes to Large-Cap Industrial RE development and closing US trans-actions. They breathed life into a tertiary Chicago 61 acre 1.5 million sf industrial HQ Campus property plagued with three superfund sites resulting in a sale exceeding owner expectations.”

– Paul Samek, EVP, CFO Allsteel Corporation | BTR

“I found Bret to be a tireless and productive worker when we worked together. His new Alliance Operations book identi-fies the basic success factors essential in our business. The Alliance case studies contained are evidence of his drive for pure production.”

– Vern Schultz, SIOR, Executive Vice President Colliers International

“As an owner, developer and re-developer of commercial real estate projects of significant size and complexity, I greatly appreciate Bret’s talents and Alliance’s unique practices in the marketplace. Bret has strong relationships with all his clients, which include many Fortune 500 companies. This enables an efficient transaction process from initiation to close.” We con-tinue to see large scale asset acquisition opportunities from Alliance; our high trust level in the firm causes us to take their offerings seriously.”

– Bill Krug, Managing Principal K5 Trust

“The book’s accuracy is distinct and describes how Alliance lead our multi-asset Consolidation for the new BTS HQ while monitoring the National needs through their representatives in the US.”

– Isaac Bazbaz, President, CEO CPP Logistics Corp

The material contained in this book may not be reproduced without written permission of

Alliance and Alliance Realty Group, LLC (“ARG”), parent company. It is intended for Commercial Private Operators (CPOs) and does not make any representations or guarantees, express or implied, as to its accuracy, completeness

or results from following the information contained herein. The reader is responsible for performing their own due diligence and

verification of information. This book is not an offering for the sale of securities.

This book is dedicated to Don Koll, whose vision remains an inspiration and driving force

behind the Alliance | ARG Platform Advisory and Asset Acquisition efforts.

NEGOTIATINGRECORD-BREAKING LARGE-CAP* TRADES

*Capitalized

THE SUCCESS OF ALLIANCE

Dr. Larry Keefauver, Salem Publishing Senior Editor interviews “Mr. Shmooze” aka Bret Broaddus, Managing Principal of Alliance

BRET A. BROADDUS

MCPBOOKS

MCP Books2301 Lucien Way #415Maitland, FL 32751407.339.4217www.millcitypress.net

© 2018 by Bret A. Broaddus

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the author.

Printed in the United States of America

ISBN-13: 978-1-54562-696-2

After over 25 years of transaction management with Corporate, Institutional, Private and Public organizations, the Alliance brand Transaction Management (“ATM”) is expanding its field services offices to 156 marketplaces within the US covering primary, secondary and tertiary market arenas. The ARG, LLC Parent and Operating Units ARA, ARGP, ATM include Alliance TeamOne lead Bret Broaddus which has continued the organi-zation’s Advisory and Co-invest Acquisition Operations expan-sion with several million square feet of additional Advisory and Acquisition representation in multiple marketplaces. The ARG, LLC Parent include Alliance Realty Group Partners (“ARGP”) lines, Alliance Realty Advisors (“ARA”) for Family Office and Family Office Advisor practices along with Alliance Co field services.

ARG successfully launched two private series Asset Holdings and two Private Equity efforts aside managing National Advisory platforms at CBRE, prior to Alliance Cos. Management views multiple Commercial Private Operators (CPOs) quali-fied for the national Alliance Co. platform offering advanced CRE Asset Trade and Co-Invest competencies a service cov-erage need in the marketplace.

xiii

Table of Contents

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5- The Enemy Called Average

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13- The Greatest Need of the Commercial Private Operator

The Alliance Success Factors

Alliance Success Factor #1 . . . . . . . . . . . . . . . . . . . . . 31- Professional Relationships with Decision Makers

Alliance Success Factor #2 . . . . . . . . . . . . . . . . . . . . . 39- Proficient Work

Alliance Success Factor #3 . . . . . . . . . . . . . . . . . . . . . 51- Pure Production

Record-Breaking Large-Cap Trades – Case StudiesLargest single industrial asset trade in square feet in history: AG-Communications

- AT&T | GTE Joint Venture . . . . . . . . . . . . . . . . . . . . . . . . . . .54Largest cleanroom campus: Lucent Technologies . . . . . . .56First Anthrax Cure R&D campus . . . . . . . . . . . . . . . . . . . . .58Largest known USDA Food Production Facility - Dial . . . .60Largest Suburban office redevelopment

- AT&T Network Solutions | 3Com . . . . . . . . . . . . . . . . . . . . .62Largest IND redevelopment Allsteel BTR . . . . . . . . . . . . . .64Largest DIP asset(s) underwriting, redevelopment Ben Franklin in multiple asset locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Largest VA consolidation E Toys . . . . . . . . . . . . . . . . . . . . . .68Largest consolidation EKCO World Kitchen KKR . . . . . . .70Largest technology folio - CPI . . . . . . . . . . . . . . . . . . . . . . . .72

What’s Next? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75- Why Not Join Alliance & Expand Your Practice Significantly?

“This book is written for primary, secondary and tertiary Brokerage professionals who refuse to be content with oper-ating at Average or even above average in their transaction processes. They strive to execute Large-Cap transaction clo-sures that often generate significant financial results. They envision successful executions that always exceed the market and their previous best market or submarket-specific trade.”

In writing this concise book, Dr. Keefauver with Alliance is following the lead of CRE icon Ray Wirta:

“Less words mean more.”

Ray Wirta, CBRE, is responsible for developing and imple-menting the strategic goals and objectives of the company after the Koll M&A initiative. Prior to CBRE in 2009, he served as Chief Executive Officer for Koll where he directed the strategy to take the company private in 2001 and then to take it public again in 2004. Prior to CBRE, Mr. Wirta was with Koll for 14 years, including the last five as president.

5

Preface

The Enemy Called Average

The average Commercial Real Estate Broker works hard to manage and close trades that are on occasion in excess of 10 million dollars. Commercial Private Operators (CPOs) pro-vide a substantial service need and with the exposure to National Account Services work-product which carry with it the Large-Cap trades the CPO will increase its volume and asset count within. Transaction Management of Alliance drives record-breaking Large-Cap trades, Alliance TeamOne has never seen “average” as acceptable.

This book is written for the CRE team leaders who desire to develop professional relationships which empower them to win big trades in the commercial real estate arena.

Alliance’s success has been demonstrated through years of experience negotiating successful Large-Cap trades for acquiring, divesting, structuring finance, build-to-suit and leasing of commercial real estate assets beyond the average levels of hundreds of thousands and/or millions of square feet.

6 NEGOTIATING RECORD-BREAKING LARGE-CAP TRADES

The authors of this work will narrate the history, success factors and performance of work executed by TeamOne at Alliance. Developing professional relationships and negotiating record-breaking trades are essential to TeamOne. TeamOne has ele-vated the commercial real estate Transaction Management of trades into the millions of square feet including the largest single-asset, square-foot Large-Cap trade which exceeded three million square feet.

“The thing is having a good team. I don’t believe in the chairman [or CEO, Managing Principal] having to do everything. I prefer people to think for themselves.”– Francisco Gonzalez Rodriguez CEO, BBV

This book is written for primary, secondary and tertiary Broker professionals who refuse to be content with operating at average or even above average in their transaction processes. Such Brokers strive to execute volume and Large-Cap trans-actions alongside portfolio and institutional closures that often generate significant financial results. They envision suc-cessful executions as always exceeding their previous best-ever market or submarket-specific trade.

The average Commercial Real Estate Broker will manage and close a continuous trade cycle of assets which may range in

NEGOTIATING RECORD-BREAKING LARGE-CAP TRADES 7

excess of 10 million dollars and beyond. Commercial Private Operators (CPOs) provide a substantial service need and may occasionally have the benefit to enjoy the exposure to National Account Services work-product which carry with it the Large-Cap trades wherein the CPO often increases one’s volume and asset count therein. The Transaction Management of Alliance drives record-breaking Large-Cap trades and Alliance TeamOne has a mindset focus and objec-tive that has never seen “average” as acceptable.

This book is written for the CRE team leaders who desire to develop professional relationships which empower them to win big trades within the commercial real estate arena.

Another metaphor can delineate Alliance’s mindset here. Consider the professionals who continue to build compe-tency and extensive knowledge of their profession, business and career. Ever learning and amassing a comprehensive base of knowledge, they are not satisfied with an under-graduate degree in business and finance. Rather, they pursue post-graduate and then perhaps a doctorate degree and then continue to do continual post-graduate study. They diligently read all the professional journals and literature to stay on the cutting edge of the CRE industry.

Or, consider the metaphor of cars. The average professional is like a Taurus — a good, functional and reliable vehicle but


far from being the best. Many Commercial Private Operators may become Lincolns or Cadillacs, which are certainly good and acceptable, but not the highest and best. Then you have the Mercedes-Benz perspective–The Best or Nothing. Some of the AMG S-Class models’ brand bylines are…

The Benchmark of Luxury at the Peak of Intelligence

The car every car looks up to and every driver looks forward to.

Performance – A Team Effort.

The Alliance Team understands that pure production at the highest levels of performance and execution requires a Team effort. At the end of this book, after some success factors are revealed, TeamOne will invite the Commercial Private Operators who aspire to be part of a National Platform to join Alliance.

Please understand this: Alliance values and esteems the market or submarket private Brokers who work hard and serve their clients with their best efforts. TeamOne realizes that some CPOs have within them this attitude—that the enemy is average and simply being good isn’t good enough.

The Alliance Team understands that the largest trade which a Broker has closed isn’t the last or the best but only a stepping


stone to higher Large-Cap trades. Elevating one’s perfor-mance is summarized as:

“Mediocrity is a region bound on the north by compromise, on the south by indecision, on the east by past thinking, and on the west by a lack of vision.”

– John Mason, An Enemy Called Average

Bestselling business author, Jim Collins, coined the phrase: good to great. Some who read this Preface will yawn and be comfortable with average, good enough and mediocrity. They will put down this book and embrace the enemy called Average.

Consider what Shawn Thomas suggests in The Power of Naivete:

“I believe naivete has been given a bad rap and that more good can come from naivete than bad. In fact, I believe that naivete has made me much of who I am today; I would even venture to say that naivete has made me the multi-million-aire I am today. Perspective is a valuable resource.

“It is through perspective that I can look back on my life thus far and make the above statement. You see, I am still naïve as I see each new day as a new experience and embrace it.


“Perhaps more importantly, I am naïve because I am not jaded by the negative realities of the world, rather I am ridiculously optimistic. In fact, I bet if I announced my current goals and ambitions right now to a room full of people who do not know me, rather than positive energy and applause, the room would fill with cynicism and disbelief—this just fuels my fire.

“I see too many people in the world who have closed minds. They are unwilling to see things another way or from a per-spective other than their own. The late Wayne Dyer once said, ‘When you change the way you look at things, the things you look at change. This is my challenge to you.’”

This book has been written from an extensive set of inter-views between Dr. Keefauver and Bret Broaddus. Its purpose is to challenge CRE Commercial Private Operators to change their perspective: the way they look at their work. Readers with an Alliance TeamOne mindset always reach for pure pro-duction and the highest-best results for the end user and its Institutional client. Such CRE professionals are those who will increase their knowledge and seize the opportunities before them.

If you aspire to be a TeamOne type of Broker, read on.– Dr. Larry Keefauver with Bret Broaddus

Who and What Commercial Real Estate Company was the only CRE Operator to close the largest Industrial Asset trade, ever, at 3 million sf?

Alliance’s TeamOne did that with AG Communication, an AT&T | GTE JV.

13

Introduction

The Greatest Need of the Commercial Private Operator

The Alliance organization has been instrumental in under-writing some of the most substantial “Large-Cap” trades and portfolios financing for decades. TeamOne operates at level unique to Commercial Real Estate Brokerage with the other lead Sponsors such as CBRE, JLL and Cushman & Wakefield. Alliance (www.ac-atm.com) offers CRE Private Advisory ser-vices sponsors including commercial real estate transaction management, capital markets trade, build-to-suit, debt-or-in-possession competencies, property acquisition and dis-position, crisis management and structured finance aside its Specialty Practices introduced only to authorized compliant official Alliance Licensees.

In the CRE business, relationships are everything. Any success achieved depends on teamwork. The Sr. Editor for a major publisher, Dr. Larry Keefauver, took the opportunity during the writing of this book to sit down with Alliance’s Managing Principal, to discuss Alliance’s history, work product, and


performance. Throughout this work, segments of interviews between the two contributing authors will be reported.

Dr. Keefauver: Mr. Broaddus, Alliance has a remarkable his-tory in Commercial Real Estate over the past three decades of performance. In the researching of Alliance’s Transaction Management work product, a compilation of Alliance’s work product is highlighted below:

• 6,025 leases • 4,210 acquisitions • 7,455 dispositions • 2,050 build to suit • 5,510 structured financings • 131+ account services

Bret, please give a brief overview of Alliance’s history...

Mr. Broaddus: As Alliance proceeds beyond 25 years since the formation of the TeamOne Practice Group and after departing KREG Koll and CBRE, the Alliance platform con-tinues its National re-expansion throughout the US. A few years ago, the ATM, LLC Operating Unit of Alliance exited a merger effort with G&E Capital Markets which ultimately filed for Chapter 11 bankruptcy protection. Since transitioning, the restructured Alliance platform has launched its re-expansion


and is poised for even larger growth throughout the North American marketplace.

As the Alliance Companies continue trade and asset underwriting for holdings, the expansion includes 155+ US North American offices along with expanding its CRE Specialty Services.

Dr. Keefauver: This sounds like a significant opportunity for Commercial Private Operators (CPOs) CRE Firms in the field. You have mentioned that Alliance does large Transaction Management not average transactions. Describe this strategy.

Mr. Broaddus: The Alliance expansion will offer CPOs an ability to transition to a cost effective National Services delivery model offering Large Cap Capabilities immediately, allowing their Members to compete on a level playing field and around the world. While underwriting the Account Services of major end users (EUs), all CRE needs are met including those less than Large-Cap and alike assets recorded as the largest ever in 47 US marketplaces by the Alliance Organization including largest IND Worldwide for the AG Communications, an AT&T | GTE JV, a portion of Alliance work-product.

Dr. Keefauver: What benefits are available for CPOs in joining the Alliance platform as it continues its expansion efforts?


Mr. Broaddus: The concluding chapter in this book details the benefits that can be provided. The list includes: National Platform operational reach and coverage, National Member Benefits, Co-Investment through ARG, LLC an identified sponsor Parent Company, National Purchasing Power and Large-Cap Competencies.

Dr. Keefauver: So, what is the greatest need of the submarket Commercial Private Operator (CPO)?

Mr. Broaddus: Transaction lead opportunities and deep, client relationships.

Dr. Keefauver: Your answer presents a perfect opportunity for me to ask you about your alter-ego that Richard Abraham wrote about in Mr. Shmooze. Mr. Shmooze emphasizes selling through relationships as being essential for success. I so enjoyed reading about Mr. Shmooze when it came out a few years ago. I knew nothing about the back story and your involvement with the book. Tell me about you, Mr. Abraham and Mr. Shmooze.

Mr. Broaddus: We were colleagues at CBRE. Rick asked us to commit significant time for interviewing me about my strategy of selling through relationships. My professional practice was to be a giver not a taker in serving the end user and our institutional client relations. Working long hours into


the evenings and weekends to provide service to our client base was the agenda. Alliance has always sought to meet the client needs in a transaction on multiple fronts, most of which are not compensated for.

Alliance is aligning with CRE Professionals. Negotiating and closing Large-Cap trades requires experienced and knowl-edgeable team members collaborating with one another to cut through the rhetoric.

Steve Jobs typified Alliance’s strategy: “Identify supporters and create a network of relationships that support your per-sonal brand.”1 Individual CRE operators cannot investigate completely every opportunity on their own—not thoroughly at least. As Richard Branson has said, “At my level, I cannot do anything myself, I must rely upon my team and operating business CEOs.”

How does a submarket commercial real estate operator increase market penetration and have the ability and rela-tionships to identify Large-Cap trade opportunities?

“The first way to increase deal [trade] flow clearly is to have extensive contacts. In Asia, among other markets, a lot of the deal flow comes from other Family Offices, then from Investment Banks and finally from wealth managers or

1 Davidson, Andrew. 1000 CEOs New York: DK Publishing, 2009.p. 17.


bankers representing their products or knowing big busi-ness houses/families. Hence, being in the market and being known and well-connected is of paramount importance.” (Shiraz Poonevala, CIO of the G.P. Group of Companies)

What Shiraz Poonevala talks about is well-connected, pro-fessional teamwork that knows every aspect, fact and figure in a transaction. Through Alliance and TeamOne for nearly three decades, the Alliance Team has worked with literally thousands of CRE private operators to execute and close Large-Cap trades.

Richard Williams, author of The Single Family Office, docu-ments the rise of CPOs. He writes, “Today, the family office industry is expanding at an impressive pace, with new family offices opening every month and assets continuing to grow every year. The family office wealth management industry is larger and growing faster than ever before. Family offices are thriving and the ways that ultra-high net worth families shape our economy and communities is evidenced all around us by their operation of franchises [licensing], apartment buildings, operating businesses and capital infusions.

Family offices are an important source of capital for all sizes of businesses and investments which fuel much of the global economy, an especially important factor giving the risk of economic slowdowns all around the world.


Family offices provide much-needed capital to businesses and investment funds. At last estimate, there are more than 6,000 family offices in the US with another 5,000 in Europe and 1,000’s more in Asia, Latin America and other areas of the world.

Family offices are also much more visible in the public’s eye as of late. With high-profile celebrities, successful business professionals and other people of note turning to the family office model for their wealth management, the family office is becoming more and more well-known to even non-invest-ment and financial professionals.”2

Dr. Keefauver: Alliance has connections with family offices. Can you describe how Alliance’s experience and competen-cies in working with ultra-high, net worth family offices and what benefit this can be to a CPO?

Mr. Broaddus: Alliance has competencies to access Family Offices (FOs), Family Office Advisors (FOAs) and their rep-resentatives through relationships and our Qualified Family Office Professionals (QFOPs). Alliance has relation-ships and extensive experience in working with ultra high-net-worth (HNW), family offices and family office advisors which are an important source for funding record- breaking, Large-Cap trades.

2 http://familyoffices.com/wp-content/uploads/2015/06/Report1.pdf


Alliance members have committed concentrated agendas in Real Estate Brokerage often clocking twelve to eighteen-hour days—six, even seven days a week. Many Brokers on average don’t feel that is necessary or appropriate to build the com-petency and knowledge, while gaining the hard-fought expe-rience. The Alliance Team has and closed record-breaking Large-Cap trades in virtually every US major service area.

In the early years brokering trades, one of the senior leaders who acted as a mentor to us was Vern Schultz. From Vern, we learned the essential lessons needed for a focused effort. Vern and later Frank Binswanger, Jr. would always ask us one key question, “Did you make the call?” One hundred calls a day…minimum.

Without constant communication, Brokers realize the diffi-culty in making the contacts, engaging the clients and building the experience and knowledge to execute. At Alliance, we worked diligently with clients to build activity which has effi-ciently helped build TeamOne’s processes. TeamOne success has been based upon a commitment to teamwork to deliver to end users, institutional and other CRE and Principals.

Unique among Alliance’s negotiation of Large-Cap trades was the largest single industrial asset trade in square feet known: AG Communications divestiture, 3.42m sf, 131-acre park development, an AT&T | GTE Joint Venture comprising


2.863 million sf which ultimately rendered an industrial campus of 3.426 million sf. Here is a snapshot of that trade from Alliance’s performance portfolio which will be high-lighted later in this book:


Making History!

An interesting airport bookstore book is The Book of Firsts, by Peter D’Epiro. The author lists about eight firsts in each century from the first century A.D. to the present. Each first was introduced by a question like…

• Who was the first Roman Emperor? • Who was the first traditional inventor of paper? • Who was the first Santa Claus? • Who first developed the Christian calendar? • Who built the first English navy? • Who was the first modern man? • Who first published a work on calculus? • Who was the first person to walk on the moon?

Among the 160 or so questions about firsts that D’Epiro answered, none…that’s right NONE of the questions were about wealth, real estate, or business…like, “Who became the wealthiest American tycoon in the 19th century, i.e. Carnegie, Vanderbilt, JP Morgan, DuPont, Rockefeller, Strohs, Cargill/MacMillan, Scripps, Busch, etc. are some that come immedi-ately to mind.

In the arena of wealth in real estate, some of the names that surface are Ray Wirta, Stephen Ross, Richard LeFrak, Ted Lerner, etc. Consider some of the most significant US


corporations in the 21st century like WalMart, Microsoft, Apple, Exxon, Amazon, Facebook, GE and AT&T to name a few.

Now ask the question most relevant to this book’s discussion of history-making, record-setting Large-Cap trades.

Who and What Commercial Real Estate Company was the first to close the largest com-mercial trade, ever, with over 3 million sf?

Alliance’s TeamOne did that: AG-Communications, an AT&T | GTE Joint Venture. Now that you have pictured it, let’s return to what Alliance does including selling through relationships and real estate transaction management. Again, there are five things in brokering and managing real estate assets that you can do: acquire, divest, build, lease, and underwrite structured financing for an asset.

Dr. Keefauver: For a moment, imagine we are in the third ele-vator to the top in Chicago’s Sears Tower, the highest occu-pied office-space in the world. Riding up with us is the CEO of a major corporation. What is your elevator pitch about what Alliance does?

Mr. Broaddus: Alliance has executed numerous, sophis-ticated, largest ever trades throughout the primary, sec-ondary and tertiary MSAs in the US including the one just


pictured. Alliance has demonstrated extensive proficiency in the CRE arenas throughout the US and North America and has a proven performance, knowledge base and capability to achieve effective closing results.

Within the Alliance trade and advisory practice, the organi-zation services the standard asset-class end user menu for industrial, office, retail, hospitality and multi-family as well as specialty asset classes such as student housing, correctional, debtor-in-possession, consolidation and medical facilities.

Dr. Keefauver: Bret, a case in point includes the Alliance advisory on the only US FDA Anthrax Cure R&D Facility of the SureBeam Corporation, a unit of the Titan Corporation. SureBeam initiated and operated the facility in the CHI MSA which was approved by the US FDA, the Department of Agriculture and Postal General Inspectors offices with capa-bilities which included mail radiation and clearing mail of deadly anthrax spores uncovered in the National scare after the events of 9-11. The Alliance Organization 3NL Co-Invest Holding Unit Acquired, Underwrote and was a part of the Redevelopment, Financed, Held and Divested this asset – generating a 59% IRR to its Co-investor and members. How did Alliance become one of the lead advisors in the CRE advi-sory space and what does advisory work include?


Mr. Broaddus: With the Anthrax Cure Facility as with all our transaction management we demonstrated advanced pro-cesses and final result the EU Corporate and US FDA approved and were relieved as to our TeamOne’s aptitude and excel-lence in the specifics and the general…

• EU asset and operational specific SIC regulations • Industry relations and competitive forces • Teaming with project particular competencies • Diligence and preparation • Comprehensive knowledge • Execution and closure

TeamOne developed and practiced many of the principles written about in Richard Abraham’s Mr. Shmooze: The Art and Science of Selling Through Relationships. At Alliance we sell through relationships and execute closure through a methodical process. There’s a dialogue in the book that sounds like a page from some of this author’s interviews with the Mr. Broaddus, aka, Mr. Shmooze:

Mr. Shmooze, “…You are the best salesman I know. It must not have taken you long to start landing business.”

Irving: “Bull*%@#. We actually worked 18 hour days, com-pleted our 100 calls and learned that there is a momentum,


and to stay at or on the momentum and there will be a breakthrough.”

“How did you break through?”

“Persistence from one to two and so on. Once we were retained the track was built to increase size and volume, repeat relationships, industries and MSAs.

Once the momentum was built and maintained it only con-tinues with focus.”

“So you began to close, when?” After year one we realized the focus and process and efficient method which continues to be refined.

“Okay, after 50+ weeks, year one, two and three…hey, wait a minute! I think I see where you are going with this, Mr. Shmooze….”

“What do you mean?” [Shmooze answered.]

“Well, while I am concerned that others may believe our ‘next generation traders’ are not hitting their stride yet, it took me three years to make a serious take of 1m+. We started from scratch and these newly joining have a deep platform of instruments that all but assure the big-take as long as they


“make the call.” Certainly, the tools are vastly advanced as opposed to photographing tax records and returning to the office to look-up detail, photocopying the raw data and lit-erally cutting and pasting the material for our administrative assistant to render a final product the next day as this would be after hours. The databases, email and multiple e-services today cut down on the logistical time and expense previously required – including opportunity costs.

“A platform. What kind of platform?”

“This is a relationship business. [We] succeeded by building relationships, day and night, every day in and day out.”

“So, the ‘platform’ is really a platform of relationships.”

“Absolutely!”3

An important word was repeated throughout this dialogue: Relationships.

The TeamOne practice starts and ends with relationships, dil-igence, comprehensive knowledge related to the end user (EU). The CPO (Commercial Private Operator) Licensee can accomplish that by incorporating the Alliance Playbook of

3 Abraham, Richard. Mr. Shmooze, New Jersey: John Wiley & Sons, 2010. pp. 45-47.


Success Factors into one’s Transaction Management work-product procedures.

Alliance’s National platform will elevate your practice thereby providing access and introduction to regional and National decision-making contacts and large asset opportunities and numbers of assets.

Alliance offers practice suggestions that can be made avail-able for Commercial Private Operators to approach and be armed with the supporting reason and materials for negoti-ating record-breaking trades.

Access to choices include:

• Mass promotional emails • 800-number monthly lead-sourcing call • Market-specific websites • CRE market data • Production compliance notes • Volume purchasing for goods and services (Procedural) • Licensees 180-day brand name and procedures

(Procedural) • Licensee production and compliance oversight

(Procedural) • Database libraries abilities


• Project Specific Web Offering Memorandum(s) (PSW OMs)

• Production lead-sourcing conferences • CRE Software • ATM Alliance Newsletter • ATM 800.ATM.CNTR # • Monthly Account Services conferences • Alliance work-product semi-weekly conferences • National Accounts Department - a production agenda • ATM phase I conflict center for resolution • Technology Services offerings • CRE Industry Trade conference participation • Administrative Operations (AO) direction • Please see benefits URL below:

http://ac-atm. com/firm/join/benefits

The Alliance CRE practice demonstrates effective success fac-tors that allow for competencies for negotiating in-depth sig-nificant Transaction Management closures:

• Pursuing Relationships with Decision-Makers • Proficient Work • Pure Production

Pursuing Decision-Maker relationships within Industry Specific Operating Unit Management while demonstrating Sector-Particular Compe-tencies leads to Large-Cap trade sourcing.

31

Success Factor #1

Pursuing Relationships with Decision-Makers

To illustrate the importance of building relationships with the right decision-makers, one can review how Alliance’s Managing Principal, Bret Broaddus, connected with John Peace, the head of the worldwide CRE holdings for AT&T | Lucent | Avaya. As a young, twenty-four-year-old CRE Broker, Bret made the effort at considerable expense at the time to attend a semi-annual event of the International Development Research Council (IDRC) in San Diego.

At one of the event’s functions, Bret approached John Peace, “John, I have contacted you many times and asked you to allow us to pitch our work-product, when is Alliance’s oppor-tunity going to come?”

“You know, Bret, I will be giving you your day soon.”

“How is that?” Bret asked.


“We will have lunch,” John answered.

Bret answered, “Okay, fine.” So, Bret took seriously Peace’s promise to have lunch with him.

Almost a year later, one weekday Bret called John’s office in New Jersey and asked his secretary, “Alice, is John in today?”

“Yes, he is,” Alice replied.

“Fine, thank you.” Bret hung up and immediately booked a flight out of Chicago, flying to New Jersey, and arriving around 11:30 A.M. at John’s office. Finding John’s secretary, Bret stated, “Alice, Bret Broaddus. I’m here for my lunch meeting with John.”

“Did you have an appointment?”

“No, but he promised me lunch.”

“Does he know that you are here today for lunch?”

Bret answered, “No.” Alice asked, “Don’t you think we should tell him?”

“Certainly.” So, Alice called into her boss. Knowing the time and effort it took to get there, John decided at that moment


to have lunch with Bret. That lunch meeting proved to be the start of an important relationship that lasted for years and brought to Alliance significant work ultimately leading to one of the largest cap trades in history as mentioned ear-lier in this book, The AT&T | Lucent | Avaya Tri-Co Preferred Provider Award.

Bottom line: Do what it takes in a compliant fashion to make contact and build your pro-active reputation with key CRE decision-makers.

“One genuine new relationship [face to face] is worth a thousand business cards [or phone calls and emails].”

– Susan Cain (adapted)

Through extensive relationships within the CRE sector, Alliance Directors are attuned to asset-holding Principals and related industry advisors who are involved with same for large asset trade opportunities. Alliance continues its expansion to 156 primary, secondary and select tertiary marketplaces pro-viding the traditional field services and the specialty oper-ating unit practices executed throughout North America and works to continue to align with CPOs to provide this market coverage for trades with National, international EU corpora-tions, institutional and governmental.


You will see in the coming Alliance success factors a con-tinuum of Large-Cap asset executions and examples of the noted clients that have been continuing client relations. This portfolio demonstrates Alliance’s experience and compe-tence in executing closures for the end users.

Dr. Keefauver: How important is connecting with the right CRE decision-makers and what can right relationships do for a Broker’s success?

Mr. Broaddus: The proper connections are paramount for a Broker’s qualification efficiency.

Relationships expand the knowledge of the client’s CRE needs. Jeff Bezos, Founder & C.E.O. of Amazon.com has this philos-ophy of relating to clients and customers: “Start with your customers [clients] and work backward—what do they want?”

Before developing a relationship with a CRE decision-maker, TeamOne does extensive research to know everything pos-sible about the client’s present and future needs. Like Mr. Shmooze, an Alliance team member also knows all about a decision-makers’ personal interests so that the relationship goes deeper than simply a business dialogue.

Dr. Keefauver: How does that relationship grow?


Mr. Broaddus: Over a period of two to three years, you may call the head of a corporation’s real estate division dozens and dozens of times. Perhaps hundreds of calls are placed. Every time you talk with him or her, the relationship builds. With that comes knowledge of the client’s needs and demon-strates to them your competence, experience, knowledge and capacity for doing the work at a high level.

“Repeated historic performance demonstrates one’s aptitude for negotiating and executing Large-Cap assets and folio trades.”– Bret Broaddus

Dr. Keefauver: As a young Broker, what happened after you closed your first Large-Cap trade?

Mr. Broaddus: We elevated our personal expectations of our-selves and continued to double down. If the transaction value was 10m we sought 20 and 50m trade valuations.

Dr. Keefauver: And “what’s next” in developing the relation-ship with a client?

Mr. Broaddus: Elevate your closures, relationships, contacts, knowledge and execution. Always elevate your relationship with your clients. Pursue deeper project work to deliver


service that exceeds the clients’ expectations. The relation-ship is about giving and serving the end user.

Dr. Keefauver: I know that Ray Wirta is an icon in your industry and an exemplary role model for your work. What have you learned from his example?

Mr. Broaddus: Relationships grow stronger and are more likely to produce leads and trade elevation follows in the rela-tionship. In the words of Ray Wirta, proficient work product is formed out of “introspection, deliberation, comprehensive, pervasive relationship underwriting and time committal.”

In summary, athletes are always talking about and taking steps to elevate their game…their performance…their win-ning. Over the decades, Alliance TeamOne has always been competitive in winning and closing larger sized asset volume trades.

“If you are the smartest guy in the room, find another room.”

– James D. Watson

“The man who does not work for the love of work, but only for money, is not likely to make money—not find much fun—in life”

– Charles R. Schwab, Jr.4

4 Davidson, Andrew. 1000 CEOs New York: DK Publishing, 2009. p. 17.

39

Success Factor #2

Proficient Work

At CBI Binswanger, where Mr. Broaddus practiced, the com-pany mantra was simply, “Did you make the call?”

Make the calls .

The objective was 100 calls a day. This demanded persistence and a mindset of perseverance. Those calls open the doors to the decision-makers in the CRE offices and specifically CRE Directors for potential retention.

Dr. Keefauver: “How do you improve on making the most effective prospect calls leading to closing the transaction management opportunities? One must ask, “What was exe-cuted properly?”


Mr. Broaddus: Brokers who expect to generate millions in GCI need to understand the proper lead Brokerage commitments:

• Always be prepared – preparation • Complete knowledge of the CRE industry landscape • Understand the end user need • Inquire and work to understand the future

capacity needs • Full compliancy • Understand the competitive landscape • Complete punctuality • Realize that mediocrity produces nothing substantial

– to loss. • Regard each opportunity as rare and a privilege to

serve the end user.

When a CPO conducts themselves in this fashion, commits to the superior model then the rewards may very well follow.

Understand that every company has a personality often led by or derived from the C Suite. Thoroughly understanding a company’s culture empowers a CPO to establish rapport and a comfort level with the EU and Institutional client.

Connections and relationships are built with diligence, trade journals, acting upon same, knowledge through end user research and professional persistence - constant prospecting.


It may take three to five years for that CRE manager or real estate Director to know an Advisor-Broker well enough to say in an internal office conversation:

“Hey Warren, we need a distribution hub in the Central US, perhaps St. Louis. It’s too costly and inefficient to continue to ship to our retail distribution POP stores from Ohio. Would you have any contact relationships for alternative sites or facility options?”

“Hmmm, probably so. I’ve been talking to one particular CRE Broker for years now who has kept in touch with our needs and is willing and prepared to service those needs. We are comfortable with his knowledge of our business.”

“Okay, Warren, please reach out to your relationship to begin the discussion of their capabilities – project-specific, their team members and plan to ensure corrective measures to generate a more significant logistical and transfer of goods for our Operating oversight.

Note, sometimes it may take years of diligent pursuit of that relationship took. As a Broker makes the calls persistently, a level of comfort develops with the client that leads to a, or several successful Large-Cap trades.”


Dr. Keefauver: Talk more about your work ethic and how it led in part to your success?

Mr. Broaddus: Mr. Shmooze saying he worked eighteen hour days was not an exaggeration; that’s exactly my work habit for years. Attentive work renders the client knowledge and the CRE market to demonstrate the proficiency and under-standing the end user’s need and interest.

John Mason writes that there is an enemy called Average. Statistics tell us that the average American works puts in 34.4 hours a week on the job.5 In sixteen other countries, workers put in more hours on the job.

Proficient work often means working eighteen hours a day, seven days a week. Such a work ethic means that a Broker develops comprehensive knowledge, and makes certain that every transaction detail is accurate and acted upon efficiently.

Working efficiently with a far greater time commitment was the only option based upon the depth of the Alliance industry, asset class and related specialty practice required to deliver for the EU or Institution.

5 John Mason, You Can Do It Even When Others Say You Can’t https://www.goodreads.com/author/quotes/583395.John_Mason


Average is the enemy .

Above average isn’t good enough. An average trade for many commercial Brokers involves thousands of square feet. Alliance refuses to perform at an average level.

Alliance works proficiently and is determined to succeed for the clients. Our determination is reflected in this mindset,

“Never worry about how much money, ability, or equipment you are starting with; just begin with a million dollars’ worth of determination.”6

“The secret to success is constancy to purpose.”– Benjamin Disraeli

The driving purpose of the Alliance practice is to meet and exceed its clients is with the experienced, competent, cost-ef-fective, service for meeting their commercial real estate requirement.



Alliance’s purpose is…

To provide Commercial Private Operators direc-tion to generate the lowest tax and operating Occupancy Cost Control (OCC) to support their need to deliver an advanced offering menu thereby generating more retentions to allow for a focus to greater, larger transaction man-agement opportunities in value and scope for a National framework from within which to operate.

Greater volume will equal greater proceeds to local and regional commercial real estate teams and operating unit, office. Alliance may assist with National annual Best in Class (BIC) procedures, strategies and case studies expe-rience to utilize, National platform support, web presence and Project Specific Web (PSW) knowledge to help provide a competitive advan-tage to raise performance in that market arena helping to maximize the CPO GCI revenues. As such the Alliance platform offers one of, if not the lowest royalty rates in the industry – period.


The constancy in Alliance’s purpose has been unwavering. The page from Alliance’s portfolio of Large-Cap trades that illustrates proficient work is the Lexmark International Distribution Center.

Lexmark International Distribution Center

Acquisition Case Study – Seymour, INAlliance Capital Global Locations: UNITED STATESBuilding Square Footage: 763,900 sfTransaction Timing: 4.8 MonthsResponsibilities: Acquisition, TI DeliveryClient: Lexmark International


Acquisition Overview:

Alliance’s Consolidation Strategies Group conducted labor and logistical studies in advance of this acquisition, in order to help replace and reduce labor costs. Alliance also provided site selection services and met the client’s and the court’s expectations in this DIP transaction.

Dr. Keefauver: How does this transaction illustrate Alliance’s proficient work product?

Mr. Broaddus: Alliance TeamOne was confirmed by US Court Order as DIP Advisor and acted to process the portfolio’s National assets. The Ben Franklin Store’s fixed assets were a Debtor in Possession assignment also engineering trans-action concern of the DIP EU. As a court-ordered bankrupt divestiture, the judge ordered the closure to be executed in 45 days. Alliance’s execution this closure, was within the court ordered timeframe.

Competitive Advisory Brokers consider executing trades net-ting millions – Alliance executes. Alliance doesn’t just con-sider; TeamOne executes and closes. As Wayne Huizanger remarked, “Some people dream of success, while others get up every morning and make it happen.”7

7 https://www.brainyquote.com/quotes/topics/topic_success.html


Constancy in proficient work produces the stamina that’s needed to see the job through to a successful end. General Colin Powell writes, “Success is the result of perfection, hard work, learning from failure, loyalty and persistence.”[7]

Proficient work leads to success not only in closing Large-Cap asset trades, but also in providing for families, employees, and sustaining life. In fact, in reading the first chapter of Genesis in the Torah, and paraphrasing what those first human beings were created to do, it would be…

“Get to Work.”– God

The word “execute” describes Alliance’s performance:

“Execution is a systematic process of rigorously discussing hows and whats, questioning, tenaciously following through, and ensuring accountability. It includes making assumptions about the business environment, assessing the organization’s capabilities, linking strategy to operations and the people who are going to implement the strategy, synchronizing those people and their various disciplines, and linking rewards to outcomes.”8

Bottom Line: Alliance executes.

8 Bossidy, Larry and Charan, Ram. Execution: The Discipline of Getting Things Done” New York: Random House, Inc. 2002, p. 22.


“There are two kinds of people, those who do the work and those who take the credit. Try to be in the first group; there is less competi-tion there.”– Indira Gandhi

“Hard work spotlights the character of people: some turn up their sleeves, some turn up their noses, and some don’t turn up at all.”

– Sam Ewing

Alliance is challenging you to consider, review and – if necessary – change your perspective

and the way you view your work product.

A Commercial Private Operator with an Alliance mindset of always reach

for pure production and the highest-best result for the end user.

51

Success Factor #3

Pure Production

Richard Abraham, President, CBRE | Koll described TeamOne led by Bret Broaddus as “Pure Production” based upon the team’s rendering the top revenue post of the year with only nine months to do so. TeamOne continued as top producing entity for the remaining years thereafter until the Alliance official commencement.

The portfolio of Alliance trades includes $10 million to $1bil-lion+ transaction valuations, extensive SIC industry sector analysis and investigation. The strategy of focusing on pure production created significant revenue volumes made pos-sible through teaming and industry specific understandings. Pure production resulted from Team Members carrying-out and quietly producing extraordinary results.


“The good-to-great leaders never wanted to become larger-than-life heroes. They never aspired to be put on a pedestal or become unreachable icons. They were seemingly ordinary people quietly producing extraordi-nary results.”

— James C. Collins

Good to Great: Why Some Companies Make the Leap... and Others Don’t

As mentioned earlier in the book, execution is a major com-ponent of pure production. Steve Jobs put it this way: “Ideas are worth nothing unless executed. They are just a Multiplier. Execution is worth millions.” 9

Alliance’s formula for success in negotiating, executing and closing recording-breaking Large-Cap trades is summarized in this basic formula:

Pursuing and Maintaining Relationships with Sector Decision-Makers

+Expanded – Beyond Industry Average Proficient

and Detailed Work Product=

Delivered – Pure Production



Pure production is demonstrated in Alliance’s closure of record-breaking trades in many of the major market service areas. Space in this work prohibits a listing of all Alliance’s work product.

The following pages describe a sampling of Alliance’s record-breaking Large-Cap transactions which are the largest ever in their respective MSAs and the world.

54

Largest Single Industrial Asset Trade in Square Feet in History

AG Communications divestiture, 3 .42m sf, 131-acre park development, an

AT&T | GTE Joint Venture Northlake, IL

55

AG Communications divestiture, 3 .42m sf, 131-acre park development,

an AT&T | GTE Joint Venture • 2.863m sf, 131-acre site, redevelopment additions to 3.42m sf. • Single largest industrial asset ever traded in history. • Originally began by AT&T in 1959 and was situated on 131-acre golf course.

• Included several AT&T Operating Units. • Village of Northlake IL worked with the AT&T EU (End User) and had own security, policing units and oversaw utilities and many other segments of the site.

• The asset was sold by the Alliance TeamOne group to Mike Mullen, CenterPoint Properties Trust and delivered a BTS for Champion Transportation of 267,300 sf.

• The facility had more parking for cars than Woodfield Mall which is the largest mall in the world to this date – larger than the Mall of America.

• The north parking lot was Champion Transportation BTS and in the south parking lot was 281,300 sf industrial facility which was leased bringing the total site to 3.43m sf.

• The facility was constructed for the AT&T efforts, which included the war effort and other support, including Western Electric and originally also involved telephone poles which were treated with creosol and distributed throughout a good part of the US. This later was transitioned to the AT&T West Chicago Facility on 776,401 sf on 1,135 acres which Alliance TeamOne transacted with Celeste Prestinario and John Peace a few years prior.

• The AT&T relationship term was 8.2 years and included the preferred provider account worldwide – one-half of the world, wherein the Alliance organization oversaw thousands of closures in multiple markets.

• The tenancy was created within the facility once AT&T departed was Kemmerer Bottling (which included Dr. Pepper and 7-UP).

• Certain segments of the land were donated to the village of North-lake as part of the entitlements offered to the EU at the time, AT&T.

• The facility was transacted and to this day remains operating with Olmarc Packaging and Kemmerer 7-Up bottling.

56

Largest Cleanroom Campus

Lucent Technologies – Kansas City MSA Lee Summit, MO 1 .314m sf

57

Lucent Technologies – Kansas City MSA

Lee Summit, MOArticle:

https://www.bizjournals.com/kansascity/stories/1997/09/22/story8.html

• 1.314m sf, 380-acre site • Facility is 10 minutes out of Kansas City proper in Lee

Summit, MO. • Lucent Technologies operating unit under AT&T-

Lucent-Avaya holding company. • Largest clean room campus with Phase 1, Phase 10,

Phase 100 (parts per billion) clean room areas within the campus.

• Lucent produced microchips for cell phones and computers.

• The End User (EU) was Clean Room for both pharmaceuticals and electronics.

• Difficult campus with extra land and retention areas and was cleared of all environmental remedial activities.

• Alliance was retained to lease and sell. Sold to a private real estate concern.

• The facility was leased and sold by Alliance and sell side operator to to new investment group that holds cleanroom campus and technology campus assets.

• A portion of the land after a 2:1 LTV Land to Building ratio was retained by sell side for future development.

58

First Anthrax Cure R&D Campus

Anthrax Cure R&D Campus underwritten, traded, acquired via co-invest and divested

Titan Corp – CHI MSA

59

Titan Corp – CHI MSAArticle: http://www.ac-atm.com/documents/Crains.pdf

• Alliance worked with the US FDA, Department of Agriculture and Postal Inspectors General to create a first of its kind radiation pasteurization facility including capabilities such as mail radiation to clear mail of the deadly Anthrax spores uncovered in the National scare that followed the events of September 11.

• SunBeam Corporation, a spin-off from defense contractor Titan Corp, leased the facility for 15 years.

• Alliance worked to retrofit an existing food grade facility for SunBeam’s unique technology which was able to cleanse food and a multitude of mail-type products.

• Alliance retained for surplus divestiture by Superior Corp to divest of asset.

• Alliance’s Divestiture Team located Titan Corp who was in need of new campus for their Anthrax cure operation.

• The facility was retrofit to their need/specs, was considered a Finished-to-Suit (FTS).

• Improvements: Up to 25k amp, 400k ava, 100% ac – upgraded AC units and 5’ thick reinforced concrete for production and operational segments of Anthrax cure procedure.

60

Largest Known USDA Food Production Facility

Dial Corp – St . Louis, MO

61

USDA Dial Corp – St . Louis, MO

• 812,700 sf

• HQ was moved from CHI to Phoenix years prior.

• Retained Alliance CSG for consolidation of multiple asset holdings and units to a central US Depot in St Louis MSA, Granite City in the St Louis MSA, 812,700 sf, 3-unit facility with food grade electronic and cleanroom capabilities within facility; BTS for lease and Alliance assembled joint venture of a REIT and capital source later taken out by CenterPoint Properties Trust.

• Site Status: 100% agricultural – changed zoning and created a park that has over 300 assets in it.

• The Alliance organization underwrote the land site acquisition, entitlements, BTS, competitive bid analysis and multiple surplus divestitures.

62

Largest CHI Suburban Office Redevelopment

CHI MSA

63

CHI MSA

• 980,000 sf, 41 acres

• Facility was AT&T Network Solutions Office R&D HQ in the CHI MSA – 411k sf transformed, marketed, sold through the Alliance organization to a significant CHI private Family Office (FO) which retained Alliance for divestiture after the lease-up.

• That process developed the 3Com consolidation of multiple assets in the region and 211k sf, 569k sf facility to 980k sf – FTS.

64

Largest Independent Redevelopment

British Tire & Rubber | Allsteel – Montgomery, IL

65

British Tire & Rubber | Allsteel – Montgomery, IL

• 1.436 million sf, 71 acres

• Alliance was retained for the divestiture of the asset.

• Within forty-four (44) days, Alliance identified an active investor group via a parent trust which proved to be the largest Real Estate Investment Trust (REIT) in the US at which time, Alliance was retained for lease-up after the structured-finance lease back to the sell-side, which was Allsteel and moved on to the final to Direct Storage Corporate (DSC), 1.050 million sf and the remainder to Suncast.

• Alliance underwrote lease-up and divestiture – later the excess land behind the facility was utilized for the build-to-suit Home Depot regional car fulfillment facility at 101,300 sf.

66

Largest DIP Asset Underwriting, Redevelopment

Ben Franklin Distribution Center – Seymour, IN

67

Ben Franklin Distribution Center – Seymour, IN

• 588,000 sf, 65 acres

• The Alliance organization was retained by Federal Bankruptcy Court for Ben Franklin Distribution Center on the sell-side to disposition possession and lead directly to a buy-side to acquire the facilities of Seymour, Indiana, 588,000 sf, which was expanded to 736,000 sf.

• Alliance obtained Lexmark as a tenant in the Seymour, IN facility, later expanding the structure and a separate EU for the Hunt Valley, Maryland facility for 357,300 sf.

• Both tenants were FTS and assets expanded; the sites were released and eventually sold. They divested to another investment group.

68

Largest Virginia Consolidation

E-Toys – Danville, Virginia

69

E-Toys – Danville, Virginia

• 740,000 sf BTS, 30’ clear height, 87 exterior docs, 5 DIDs, 161 acres

• Consolidation of several operating units throughout the northeast and the US marketplace for a new distri-bution and fulfillment center for the E-Toys continuing expansion.

• Taxes reduced in the Roanoke marketplace for the industrial distribution, fulfillment and logics facility.

• ARP, LLC was a JV co-invest principal partner.

• The initial rental was $4.20 per sf with 2.5% annual escalations (15-year term). Construction commenced shortly thereafter with a total investment of $22.7m or approximately $30.68 per sf.

• Asset sold for a realized proceed of $32.6m, a gross IRR of 25.8%.

• ARP offers this transaction as an excellent consolida-tion example for direct end users and investor return.

70

Largest Consolidation

Ekco Housewares – Monee, IL

71

Ekco Housewares – Monee, IL

• 700,200 sf expandable facility to 901,500 sf

• Land for 124,000 sf future expansion.

• ESFR sprinkler system, 6,185 sf elevator served office and parking facilities for 400 trailers and 190 cars.

• Consolidation of seven operating units to a central distribution depot resulting in a build-to-suit in the tertiary area of the largest industrial MSA in the world, Chicago, submarket Monee, IL .

• Build-to-suit facilities based on lower cost for land and prop-erty taxes.

• World Kitchen is a result of Kohlberg Kravis Roberts (KKR) assem-bling the lead manufacturers in the housewares industry, Ekco Housewares, along with several other National manufacturing and distribution organizations including Corningware, Pyrex, Revere, Farberware and OXO. The organization has manufac-turing and distribution facilities and sales organizational offices throughout the US, Canada, South American and Asia-Pacific regions and is the clear leader in the manufacturing and distri-bution of kitchenware products. Annual revenues totaled over $750 million in volume.

• After the purchase by KKR, the company progressed to Chapter 11 to voluntarily restructure its financial organization. The tenant signed a 15-year triple net bond lease.

• New facilities in the area include the state-of-the-art Sweetheart Cup and Tyco distribution centers, 33’ clear, 131 Levelator docks, 1,200 amp/ 3 Phase 480 Volt.

• ARP, LLC acted as a JV co-invest principal partner. The initial rental was $2.65 per sf with 2.25% annual escalations (12-year term). Construction commenced shortly thereafter with a total investment of $24.87m or approximately $35.51 per sf.

• The property was sold in early 2004, for a realized proceed of $48.10m, a gross IRR of 28.6%.

72

Largest Technology Folio

CPI Industries (HQ and Portfolio) – Nationwide

73

CPI Industries (HQ and Portfolio) – Nationwide

• 2.321m sf (7 buildings)

• CPI was an operating company and a portfolio of seven assets.

• Transacted on a 15-year bondable lease-back closure.

• The facilities were located in 7 states throughout the US and ranged from 292k – 626k sf.

President Trump Policies Improve the Commercial Real Estate Market

“Industry-friendly policies. The Trump Presidency will flat-out improve the real estate market, says Nathan Miller, president of Rentec Direct, a real estate software company based in Grants Pass, Oregon. The reasoning is pretty simple: Trump is a real estate guy and his mentors, policies and cabinet are going lean in the direction of real estate investments. Real estate is a market Trump knows well, so whether it’s a conscious decision or not, his moves in the White House will improve the real estate market.”– Brian O’Connell US News and World Report (2/2/17)

75

Conclusion

What’s Next?Why Not Join Alliance & Expand

Your Practice Significantly?

As this book is going to press, it’s very apparent that the pol-icies of the Trump Administration favor growth in the com-mercial real estate market and furthers wealth beyond Wall Street, i.e. investing in commercial real estate. One example of this favorable environment for our industry is Trump’s tax policies:

WASHINGTON — An industry familiar to President Trump appears to have emerged from the Republican tax rewrite relatively unscathed: com-mercial real estate.

For months, commercial real estate developers had been concerned that the tax plan in the works would make it more difficult or expensive for them to take out huge bank loans or would damage demand in the property market.


But if the plan unveiled this week by House Republicans comes to pass, developers like Mr. Trump, who made much of his fortune building skyscrapers, hotels and resorts, will have little to worry about.

“The industry was left whole,” said Thomas J. Bisacquino, president of NAIOP, a commercial real estate development trade group. “The provisions we feel are working will still work.”

Developers were fearful that the special tax treatment of “carried interest”—fees that are taxed as capital gains, not income — would be amended, or that they would no longer be able to deduct interest expenses from their taxable profits. They were also concerned that certain exchanges of commercial property, which currently enjoy a tax deferral, would face immediate taxation.

But the bill included no such changes to the industry, and developers are thankful.

“I think Trump, having lived through a couple of real estate cycles, probably is in tune with this more than the average policy maker,” said Martin Schuh, the head of government relations at the CRE Finance Council, a commercial real estate advocacy group.

“Him being an active industry participant gives him an insight that most folks don’t have.”– Alan RappeportNew York Times (3/3/17)


Alliance provides an extensive, integrative services compli-ment adjoined with the depth of reach of lead Commercial Principal Operators with deep industry knowledge. Past experience and performance demonstrate Alliance’s experi-ence and capacity to negotiate, execute and close Large-Cap trades far beyond the reach and ability of local or regional Commercial Private Operators (CPOs). How is that possible?

Alliance has National and international coverage. Alliance and its offices have executed some of the largest asset trades in Transaction Management underwritings ever recorded as mentioned earlier in the book.

The following map of Alliance’s past trades illustrates perfor-mance and our National platform and reach.


Alliance and its operating units (OUs), has been respon-sible for the single largest transactions in multiple markets throughout North America, including large transactions on behalf of Dial Corporation, E-Toys, Lexmark, Samsonite and Ekco Housewares, now World Kitchens a KKR Company. These transactions alone account for hundreds of millions of square feet of space.

Large-Cap trades in forty-seven marketplaces throughout the US were provided within multiple SICs made possible through Alliance’s knowledge and market intelligence in not just one


market service area but in multiple Metropolitan Statistical Areas (MSAs) throughout the country.

Alliance is well-versed in the application for, and acquisition of, competitive tax incentive plans within business parks nationally and has engineered value-added savings for its cli-ents continuously through competitive tax advantages and other government incentives.

The CPO BenefitsWhen joining Alliance, a Commercial Private Operator will enjoy these benefits:

National Platform: A National platform offers three key ben-efits a submarket and regional operator does not: [A] First and foremost, nationwide full service coverage for end users with CRE assets and operations in multiple locations for which the National Operator is able to deliver CRE Services and can accommodate their objectives and on a time sensi-tive basis opposed to partially equipped Brokerage Operators that would make-due and implement during said delivery time-frames [B] Attracting of Senior and competent head-count with the knowledge basis. [C] Volume benefits to cli-ents, prospects (those being pitched or pursued as potential clients) and their own Brokerage, Analysis and staff making for an accountable services delivery Sponsor.


National Reach: Again, note the National map earlier in this chapter and also the breadth and scope of reach illustrated in the last chapter’s case studies. Alliance’s National reach offers an ability to better call upon the Fortune 1000, lead Institutional and Large-Cap end user prospects and clientele.

National Benefits: These may include such items as health insurance, life insurance and 401k. CPOs may not typically provide such benefits for their offices including themselves. Providing benefits results in Headcount retention to maintain revenue models and increase same for growth.

Co-investment through ARGP: This provides a platform for co-investment with other outside institutional and private co-invest members to achieve higher yields than typical REIT and other real estate holding offerings. The ability to co-in-vest in commercial real estate through ARGP often provides double-digit plus returns and IRRs.

National purchasing power: Alliance offers significantly reduced costs to the Licensor and its Licensee member firms (CPOs) on a multitude of products and services which may be passed along.

Large-Cap competencies: Alliance allows the commercial real estate licensees to call upon, compete for and have the


legitimate ability to compete with the “CRE Big-3” CBRE Inc., JLL (Jones Lang LaSalle IP), Cushman & Wakefield, etc.

To illustrate a significant benefit, a National Platform, imagine for a moment you are a CPO (named The Edmund Snow Commercial Real Estate Agency of Seymour, Indiana). Ben Franklin is moving out of their 588,000-square-foot distribu-tion center located on sixty-five acres.

Your Brokerage is proud of your three decades of successful deal-making in your market service area (MSA). One of your largest asset closures has been a $2 million retail shop-ping center.

You know the local Ben Franklin management staff. In fact, you and your family have kids in school with them. You have yelled with them at the local soccer and football games, worked with them on dozens of civic projects over the years, and even shared the most joyful and saddest occasions of life with them—weddings and funerals.

Now in the sad moment of the announcement of their leaving, you approach your friends in management seeking an opportunity to represent them in the leasing of their large facility. To your surprise, you discover that the National Ben Franklin Corporation has already engaged the services of a


large national/international firm, Alliance. Why them? They had an office affiliate in your MSA. Furthermore…

One of the strengths of the Alliance is years of experience and contacts on the National level with proven performance. In the case of the Ben Franklin property, Alliance TeamOne was able to pair Fortune 100 companies and a property owner, in order to close this transaction in less than seventy-five days.

The principal lessor sought an investment-grade tenant, and Alliance knew that Lexmark was looking for a property, similar in scale and scope to what the owner offered. We were able to quickly match both property owner and lessee together, and complete this deal quickly. Simply put, a small, local CPO like the Edmund Snow Agency, does not have the capacity or National reach to service a large corporation like Ben Franklin, manage the transaction successfully, and get the deal closed in less than seventy-five days.

The opportunity for you to join a National CRE platform is for RIGHT NOW!

Join Alliance – The Opportunity for Your Future Success is Now

Alliance is growing and you can be a big part of Alliance’s future. Over the next 90 days, we will be initiating offices in key primary, secondary and tertiary markets across


North America. This is your opportunity to stand out in your Market while enjoying the National Teaming benefits! Don’t miss this unique opportunity.

Your success is Alliance’s success and you reap the rewards. Why would you license with a National company when you can own your office as a local provider? Alliance provides for a National structure while allowing you to keep control of your operation in your market. The Alliance platform offers Asset and Occupancy solutions and a great deal more, from National teaming, reach and connects offering greater and deeper relations to the CRE Director Position and related decision makers.

In summary, your CPO opportunity in joining Alliance is this:

1 . More and Larger Trades .The National platform may very well help you to generate increased revenue trades in value and scope and provide a National framework from within which to operate. Greater volume will mean greater proceeds to your teams and oper-ating unit, office.

The Alliance platform will operate from 156 offices. That will include Primary, Secondary and Tertiary offices in big states. You can be one of those offices now. Do not be a limited “Edmund Snow Agency” - let Alliance help you generate the


mindset and attitude you need NOW to expand revenues and asset advisory. Consider these thoughts:

“Happiness is not something you postpone for the future; It is something you design for the present.”– Jim Rohn

In other words, if you postpone joining Alliance in the present, you may miss opportunity after opportunity in the future and to qualify for the Large Cap work product – immediate qualifications!

“Infuse your life with action. Don’t wait for it to happen. Make it happen. Make your own future. And whatever your beliefs, Honor your creator, Not by passively waiting for grace to come down on high, But by doing what you can to make grace happen… Yourself, right now, right down here on Earth.”– Bradley Whitford


The fact is, Large-Cap asset transactions will not come to your doorstep, unless you act now as an Operator and expand the competencies, via the largest, advanced prac-tices, via clean-room, technical, sizable, diversities in all SIC sectors, DIP, Transaction Management, Account Services and Specialty Services, which others do not practice – case work via joining the Alliance Platform!

2 . Primary, Secondary, Tertiary – National Presence .The Alliance National presence connects having executed scores of large asset transactions will assist in the National EU Client qualification processes and deliver RFPs for fur-ther trade advisory opportunity. Alliance has the lowest license fee in the business. The general fee in our business is 5% - 6.5% aside marketing fees commitment to the Franchisor. Alliance’s license fee is 1% and a fractional marketing fee of $199 per month. While no sponsor can guarantee outcome, the upside trades and volume has covered these business operating expenses several-fold. A tremendous opportunity for you now – never offered before!

3 . Training and Marketing Considerations .Alliance will look to and consider assisting with National annual BIC (best in class) procedures, requests, case studies experience to utilize, National platform support, web pres-ence and PSW (project specific web) knowledge to help pro-vide a competitive advantage to raise your performance and


qualifications in the marketplace. Alliance offers one of, if not the lowest reported royalty rates in the industry.

Additional Alliance benefits – summarized:

• Alliance has underwritten over 11,000 trades across the US, Canada and Puerto Rico.

• Alliance offers a National multi-member transaction team with specialized skill sets recognized by Com-mercial Property News as a leading CRE asset under-writer and advisor.

• Alliance is versed in tax and incentive negotiations on a municipal, county and state basis generating the low-cost basis acquirer.

• Alliance has perfected a seven-step acquisition process providing complete cost efficiency while offering public and private principal partner advantages.

• Alliance will consider providing continual weekly project progress and post-transaction member reporting to ensure the optimal cost basis.

• Alliance has developed an accredited National capital markets industry desk offering specific technology and provisions including project portfolio CSWs, VTs and capabilities for the underwritten execution.


You are invited to…

Change your view to a National Commercial Private Operator, become an Alliance team member with

a National Platform, close large asset trades successfully – greatly benefiting your business

and your clients!

It’s time for you to take your business to the highest level of professionalism. Steven Pressfield observed, “Turning pro is a mindset. If we are struggling with fear, self-sabotage, pro-crastination, self-doubt, etc., we’re thinking like amateurs. Amateurs don’t show up. Amateurs crap out. Amateurs let adversity defeat them. The pro [like Alliance TeamOne] thinks differently. He shows up, he does his work, he keeps on truckin’, no matter what.”

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The Alliance TeamOne consists of seasoned, experienced pros. Here’s what our clients have said about us:

“It was almost as if they were EKCO employees. That was the sense I got; that was the comfort level I had.”– Ed Hayes, COO Ekco Corp

“We are extremely pleased with their work and look forward to work with them in the future.”– Celeste Prestinario, Director, Lucent

“Alliance Capital’s team was able to create a pos-itive credit enhancement vehicle which solved questions we encountered in the marketplace.”– Jim Hopwood, CFO Wickes Lumber Company

What’s Next?

Decide now to join the top professionals in our industry.

Join Alliance now.

“Procrastination is opportunity’s assassin.”– Victor Kiam

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Contact Alliancewww .ac-atm .com

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Bret Broaddus

Bret Broaddus serves as Managing Principal of Alliance with 25+ years of CRE Advisory and Principal underwriting oversight.

• Former President of CBRE Account Services and Koll Capital Markets.

• Private Portfolios I & II, National Brokerage platform CBRE, Koll, Alliance Cos and Equity Holdings.

• TeamOne recognized for largest-ever executions in 47 US marketplaces, including the largest known IND sin-gle-asset traded worldwide.


• Historical work product: 131 Account Services Retentions including account management for The Dial Corp, KKR Cos, EKCO, Xerox, AT&T | Lucent | Avaya, Titan Corp, HP, etc.

• FOA and Private account services and PNTR investor 220+ and 45+ clientele.

• Undergraduate work at UC Boulder, with MBA and PhD work at Roosevelt University.

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Dr . Larry Keefauver

Dr. Larry Keefauver is a bestselling author, ghostwriter, journal and book editor for over twenty years and worked with authors in business, self-help and motivation, commer-cial and residential real estate, law, medicine, marketing and sales, psychiatry, education, banking and finance, psychology, marriage and family counseling, leadership training and equipping, industrial economics, nutrition, alternative med-icine, financial planning, religion and spirituality, and editing academic theses and dissertations.

His writing and editorial services have been utilized by publishers and authors including Hachette, Time-Warner/Warner Faith, Abingdon, Simon & Schuster, Thomas Nelson, HarperCollins, Viking Penguin, and numerous others. Dr. Keefauver has extensive experience in editing non-fiction and fiction as well as trade books for both profit and non-profit corporations. Dr. Keefauver is a bestselling author with over 2 million books in sales, translated in 10 languages. He is a cum laude B.A. graduate of the University of Pennsylvania and a Theta Phi M.Div. and D.Min. graduate of Texas Christian University with post-graduate clinical training in pastoral counseling (AAPC).

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ACKNOWLEDGMENTS

The relationship is the driving similarity among those followed and acknowledged below, as Mr. Shmooze often said, “It’s the relationship, my friend! Something that does not need to be labored over, rather occurs as a natural result with the game-changer and real production drivers.”

Rick Abraham – President, CEO of Richard Abraham Company

Rick Abraham acted as a stalworth Industry senior Operator with vast direction, leadership and an agenda for profitability aside the indi-vidual insight to the organizations represented. He instilled in the TeamOne Management, the components necessary to lead from the top,

run a macro work-product understanding that it is not the advisor but the client need and direction that is required to be tended to, nor that of the Advisory Management that needs to be recognized and continually tended to.


Frank Binswanger, Jr. – Chairman of BinswangerThrough his of knowledge of National market-places one experiences his direction and com-mitment with that of Frank Sr.’s tradition. Frank Binswanger, Jr. “Frank” led the way to true expansion and international relations with the British, Germans and French to be led eventu-ally by FGB, III, “Jeff” which to this day, runs

international and his cousin David, institutional. When the term “Frank” is utilized among several others - Frank means Jr. at Binswanger Co - the source to elder Fortune 500 rela-tions with sectors of Motorola, Comcast and NBC as examples.

Frank is an adamant competitor every day of the week and it’s not unusual to receive calls at any hour particularly when competing against other CRE Sponsors for work-product. He looks to problem solving for the solution that has most probably been created and utilized through prior decades. Through the years, Mr. Broaddus valued his “personal atten-tion” of the closure process mandated with the classic oper-ators as Frank Binswanger Jr.

Jeff Gitt – Principal of Westwood Net LeaseThrough the decades Mr. Broaddus has traveled the world, specifically North America, to meet CRE Operators. Mr. Jeff Gitt is a clear unique, old-world and effec-tive Commercial Real Estate Broker and sales expert as it relates to asset advisory


and transaction management. He knows how to work the system and cut to the matter whether it be Capital markets, development, or outright acquisition and disposition of assets surplus and leased. Mr. Gitt brings a fervor and energy to the sales position rarely seen in today’s marketplace. Whether it be 10 million or 20 million and above in value, Mr. Gitt has a commitment to making the transaction happen at the highest possible level with the asset attributes offered within.

Ed Hayes – COO of EKCOWhen EKCO Group Inc.’s housewares manufacturing business needed to con-solidate operations within multiple facil-ities in several US states in different markets into one location, Ed Hayes, entrusted the Alliance TeamOne lead Mr.

Broaddus and the Alliance Operational group to make it happen with 39% OCC (occupancy cost control) returned to the EU client. Ed made them feel like they were part of the company - not merely an external service provider - for which Mr. Broaddus appreciated and joined the Ekco finance and management team at the hip for the duration of the project.

Scott Panzer – Vice Chairman of JLLScott Panzer has brought to the CRE Services side the Corporate CRE Director view of mat-ters and while working with Michael Korff, Maxwell McMillan and McGraw Hill trans-acting IND and Office work product, Mr.


Broaddus appreciated the “internal view” of asset trade and the balance-sheet effects in addition to Corporate revenue repercussions.

James Planey – SIOR, Principal at Lee and AssociatesMr. Planey always offered teaching intellect and instruction to so many, encompassing competitors. This included the up-and-coming highly perceptive, 100-hour week Mr. Shmooze, Bret Broaddus, one whom could be found in primary, secondary and often tertiary markets

throughout the US and foreign territories. This led to extended National work product with Fortune 100 and Fortune 500 clientele eventually rendering services with 72% of the Fortune 500 and the likes of Xerox and GM. After work clo-sures with Mr. Planey and AT&T, Mr. Broaddus continued on to AT&T|Lucent|Avaya after Alliance assembled international and domestic members rendering the PPA Award – working with 4,000+ Internal CRE Department members.

Vern Schultz – SIOR, Executive Vice President at ColliersVern is a classic results oriented Management member and while he is a stounce compliance director, how its executed is not of his concern. A favorite recollection of Mr. Broaddus was Vern calling the office at 10:18 pm one eve-

ning, “Bret, what are you doing in the office at these hours?”


Mr. Broaddus answered, “We have so much administrative work to carry out as a result of our contact discussions that we need to assist staff,” to Vern’s response, “If you do not go home you will never have a family working these hours!” This was one of the best memories, Mr. Broaddus recalled when Vern asked how he launched and ran the National Advisory Platform at Alliance. “Vern is an unbiased senior manage-ment sponsor of his production folks in which he genuinely expects them to triumph and achieve.”

Steven Stratton – Internal Director, Chairman at JLLSteven Stratton maintained the “mac-ro-view” at all times aside the micro allowing for servicing the end user (EU) client requirement and indirectly man-agement’s. This offered the latitude to allow the sponsor’s internal advisors to

practice and not be handcuffed with which would negatively impact creativity within the transaction team’s processes. Something most all “Large-Cap” EU advisors seek.

US $##.##

GO BEYOND YOUR BEST!This book is written for primary, secondary and tertiary Broker professionals who refuse to be content with operating at average or even above average in their transaction management processes. Such Brokers strive to execute volume and Large-Cap transactions alongside portfolio and institutional closures that generate significant financial results. They envision executions exceeding their previous best market or submarket-specific trade. CRE Team Leaders who desire to develop professional decision-maker relationships - which empower them and their teams to be retained and close the big trades within the commercial real estate arena - will find that this book with its success factors is a must read!

“Bret expanded TeamOne while at CBRE that initiated several specialty practice areas not previously identified by the firm; significantly advanced the scope and quality of the firm’s traditional work product; and delivered the highest revenue and profits of all production units of the firm.”– Ray Wirta, CEO, Chairman of the Board

CBRE

“Alliance’s TeamOne performed at a superior level and initiated advanced asset trade efficiencies.”– Celeste Prestinario, Senior Director, EVP Corporate Real Estate

AT&T | Lucent | Avaya

“This book identifies the basic success factors essential in our business. The Alliance case studies contained are evidence of the Alliance drive for pure production.”– Vern Schultz, SIOR, Executive Vice President Colliers International

“Alliance is second to none when it comes to Large-Cap Industrial CRE transaction management and closing US trades.”– Paul Samek, EVP, CFO

Allsteel Corporation | BTR

“As an owner and developer of commercial real estate projects of significant size and complexity, I greatly appreciate Bret’s talents and Alliance’s unique practices in the marketplace. Bret has strong relationships with all his clients, which include many Fortune 500 companies. This enables an efficient transaction initiation to close process. We continue to see large scale asset acquisition opportunities from Alliance, and our high trust level in the firm causes us to take their offerings seriously.”– Bill Krug, Managing Principal

K5 Trust

Bret A. Broaddus serves as Managing Principal of Alliance with 25+ years of CRE Advisory and Principal underwriting oversight. He is the former President of CBRE Account Services and Koll Capital Markets. Mr. Broaddus’ TeamOne is recognized for the largest-ever executions in 47 US marketplaces, including the largest know IND single-asset trade worldwide.www.ac-atm.com

Dr. Larry Keefauver is an Ivy-League educated, bestselling author, ghostwriter, journal and book editor for over twenty years in the fields of business, self-help and motivation, commercial and residential real estate, law, medicine, marketing and sales, psychiatry, education, banking and finance, and psychology.

what cre leaders have organization…€¦ · colliers international “as an owner, developer and...

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