CASE STUDY
Today’s Pool & Patio
Distribution Center, Outlet, and Office
Phoenix, Arizona
Phoenix, Arizona
PROBLEM Today’s Patio, a regional luxury patio furniture retailer since 1979, had grown its operations and occupied two distribution facilities totally 70,000 SF in the Phoenix, AZ Deer Valley Airport market. The facilities served 7 retail locations in the Phoenix, Tucson, and San Diego. Brydant was engaged to advise and develop a plan that would allow the company to operate within one building serving distribution and HQ functions as well as their very profitable factory showroom. The facility needed to align with their business objectives and corporate growth.
PROCESS The objective to be in the Deer Valley market was challenging as the land prices are some of the highest in the overall Phoenix market. The factory showroom had 19th Avenue frontage and this exposure was mandatory. A site was selected for purchase and ground-up development. Brydant assisted in securing the site and project financing, gaining entitlements, coordinating design, and selecting the construction firm through a Design-Build approach. Design-Build is very effective for managing risk, construction quality, schedule, and cost-containment. Through the strategic planning process, the owners changed the parameters of the project and asked that Brydant pursue a Design-Build Leaseback for the project structure.
SOLUTION Brydant analyzed the overall storage requirements. Distribution facilities can increase operational efficiency by racking higher and decreasing floor space. Building 75,000 SF in a 30-foot clear-height building will be more efficient than a 24-foot clear-height building at 95,000 SF. This design efficiency allowed Today’s Patio to operate in smaller floor space and gain an additional 25,000 cubic feet of storage. A larger facility was designed allowing the development cost to be spread over 100,000 SF reducing the overall cost per square foot and resulting in 25,000 SF of additional speculative space. This the flexibility to serve as additional revenue and allow for future growth for Today’s Patio. The building was designed so that it could be bifurcated into 4 units at 25,000+ SF each. Brydant brought an investor to the project and created a financing structure that allows Today’s Patio an option to purchase the building after five years. These elements maximize flexibility and are key to successful exit strategies.
Brydant worked with the owners as a trusted advisor for more than 4 years. It was truly inspiring watching the two sons’ take their fathers company to the next level expanding product lines and stores as well as streamlining operations. Today’s Patio is a great small company.
PROCESS The objective to be in the Deer Valley market was challenging as the land prices are some of the highest in the overall Phoenix market. The factory showroom had 19th Avenue frontage and this exposure was mandatory. A site was selected for purchase and ground-up development. Brydant assisted in securing the site and project financing, gaining entitlements, coordinating design, and selecting the construction firm through a Design-Build approach. Design-Build is very effective for managing risk, construction quality, schedule, and cost-containment. Through the strategic planning process, the owners changed the parameters of the project and asked that Brydant pursue a Design-Build Leaseback for the project structure.
SOLUTION Brydant analyzed the overall storage requirements. Distribution facilities can increase operational efficiency by racking higher and decreasing floor space. Building 75,000 SF in a 30-foot clear-height building will be more efficient than a 24-foot clear-height building at 95,000 SF. This design efficiency allowed Today’s Patio to operate in smaller floor space and gain an additional 25,000 cubic feet of storage. A larger facility was designed allowing the development cost to be spread over 100,000 SF reducing the overall cost per square foot and resulting in 25,000 SF of additional speculative space. This the flexibility to serve as additional revenue and allow for future growth for Today’s Patio. The building was designed so that it could be bifurcated into 4 units at 25,000+ SF each. Brydant brought an investor to the project and created a financing structure that allows Today’s Patio an option to purchase the building after five years. These elements maximize flexibility and are key to successful exit strategies.
Brydant worked with the owners as a trusted advisor for more than 4 years. It was truly inspiring watching the two sons’ take their fathers company to the next level expanding product lines and stores as well as streamlining operations. Today’s Patio is a great small company.
“We want to thank all of you for your guidance during this entire process. Something that seemed like a monumental task - ended up being quite smooth, enjoyable and exciting. We truly appreciate all your help and guidance along this journey. You all have been a pleasure to work with and we definitely could not have made this happen without the Brydant team!”
- Chad Scheinerman, CEO & Craig Scheinerman, CFO of Today’s Patio
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