Corporate Advisory At Work
Keystone Foods, LLC, Conshohocken, PA

Situation:
A new initiative between our client and a minority partner to open a food processing plant for poultry products distributed in the north central United States.

Approximately 125,000 square foot facility with very specialized criteria for refrigeration, freezers, water treatment, and effluent control. Maintaining existing buildings which can be refurbished are a priority in order to make a third quarter 2008 production date. The facility will create up to 350 new jobs in the community in which it is located, and as a result, economic incentive programs are of paramount importance in of the site search process.

Action:
Stockton was retained by the partnership to provide across-the-board real estate services as the lead coordinator for the project. In addition, Stockton engaged a "local" real estate firm to provide best-in-class services in the field, identifying properties in three states. Stockton identified a broad list of 30 properties across the three states and narrowed alternatives down to 10-12 for additional due diligence and inspections. The focus has been on "spec" shell buildings, where a community will be very aggressive with the real estate in order to draw a new business and job creation to its area.

Results:
Site search and negotiations have produced two viable building opportunities in different communities. Each community will benefit from job creation and in turn state economic initiative packages are part of the overall financial analyses. Analysis of refurbished existing surplus of corporate assets may also be weighed against new opportunities as the decision making process concludes.

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