Representative Clients

 

Velocity Sports Performance - Alpharetta, GA

Services Provided

�  Corporate Real Estate Services

�  Market Analysis

�  Lease Analysis & Negotiation

�  Project Management

Owner Objective

The KGK Group was hired to assist Velocity in creating a real estate process for the franchise system. This process entailed assessing the company's business model in order to streamline the speed to market in opening facilities. The company was newly formed and had no existing program so one needed to be created.

KGK Activities

Upon assuming this assignment, The KGK Group:

�  Developed a strategic plan for opening centers

�  Instituted a standardized corporate real estate process

�  Selected vendor to provide support services

�  Created a lease analysis and negotiation process

�  Set up a site selection and approval process

Documented Results

The KGK Group developed the corporate real estate process in 30 days and immediately began to reduce the timeframe for negotiating leases and opening centers. The process for finding space took 320 days prior to the KGK Group being engaged. Within 90 days that timeframe was reduced to 118 days, a 63% improvement. Overall the KGK Group negotiated over 65 leases across the country and in Canada.

In addition to negotiating leases, KGK assisted franchisees in purchasing land for build-to-suit developments. Our company was instrumental in developing the design for these facilities and creating the development cost model for Velocity. KGK also served as a project manager for the construction of the facilities and had sign off responsibilities on all facilities prior to opening.

 

DB Enterprises - Jacksonville, FL

Services Provided

�  Transaction Advisory

�  Market Analysis

�  Project Management

Owner Objective

The KGK Group was hired to assist DB Enterprises in assessing the market and finding 15,000 square feet of flex space for its operations. The owner wanted to assess the entire market to determine the optimal location for its business. Requirements included identifying a newer building with flexible lease terms with the landlord willing to pay for the space build out.

KGK Activities

Upon assuming this assignment, The KGK Group:

�  Completed a market survey and analysis

�  Evaluated all potential locations and sub-markets

�  Developed a cost benefit analysis for all options

�  Negotiated favorable lease terms that met the clients objectives

�  Bid out the construction and oversaw the process

Documented Results

After an exhaustive search KGK was able to find a new flex development that met all the needs of its client in an ideal location. The aggressively negotiated lease incorporated better than market terms and required minimal capital from our client. Specific terms were as follows:

�  Rental Rate – Below market

�  Flexible Lease Term – 10 year term with 5 year cancellation option with no penalty for terminating early

�  Build Out – Entire build out paid by the landlord

�  Options – Favorable terms for extension options

�  Securitization – None

Long View Partners - NorthBrook, IL

Services Provided

�  Facilities Management

�  Market Analysis

�  Acquisition Analysis

Owner Objective

The KGK Group was hired to assist Long View in assessing the market and analyzing the economic benefits of acquiring a 200,000 SF suburban office building located in North Suburban Chicago. When acquired, the building needed to be renovated to meet the needs of the new owner who was also the only occupant. The owner was looking to outsource the day to day maintenance of the facility and sought advice on the best way to execute that strategy.

KGK Activities

Upon assuming this assignment, The KGK Group:

�  Completed a market analysis

�  Evaluated all operating expenses including HVAC, maintenance and landscaping costs

�  Assessed and contested the real estate taxes

�  Developed a cost benefit analysis for the acquisition

�  Developed a Short Medium and Long term Capital Budget

Documented Results

Overall operating expenses and taxes were reduced by 22 %. The cost savings were then used to reinvest in the operating business. Having a professional real estate advisor allowed then to professional maintain the property for disposition. In 2007 the property was subsequently sold along with the business generating the owners a significant return on their investment.