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Opportunity
Stream assisted with an extremely specialized industrial facility, completing the high-profile relocation from California to Dallas of Farmer Brothers Company (NASDAQ: FARM), a leading manufacturer, wholesaler and distributor of a variety of high-quality coffee and tea products. This complex time- and cost-sensitive delivery included three components within the 545,000 SF facility: 85,000 SF Corporate Offices, 200,000 SF Roasting & Manufacturing facility and 260,000 SF Distribution facility. The challenge in completing this development was in the capital structure and funding the facility in the most economically efficient manner possible for FARM.
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Strategy
Taking the lead, Stream assembled and cohesively managed a large interdisciplinary team of experts to plan, design and deliver a highly technical one-of-a-kind, build-to-suit facility. Stream’s plan included assistance with the project oversight, coordination and reporting for a large institutional capital partner to fund 100% of the project through a leaseback with purchase-option structure, providing the economic efficiency FARM sought in the development.
Results
Stream executed a creative financial structure on behalf of FARM, maximizing economic efficiencies through a number of capital options including the sale of FARM’s California land to a Fund Project, advantageous use of U.S. 1031 tax opportunities, the leaseback scenario of the facility as constructed and eventual execution of the purchase option with project completion. Additionally, Stream located the proper development site just as it was coming to market, due primarily to our presence as a developer in the market.
