Real Estate & Construction Management Collaboration

PROJECT

Expansion of an industrial footprint in Mexico with a combined real estate and construction strategy

WHAT WE DID

470,000 ft2 industrial brown field acquisition with built-to-suit 84,000 ft2 specialized building with interior rail spur

CLIENT

A German metal mechanic company with nearly 18 years of operation in northern Mexico

TIMELINE

Phase 1 was completed, from start to finish, in a 18-month timeline: from January 2021 to July 2022. Phase 2 has kicked off.

PROJECT OVERVIEW

A German metal mechanic company that serves various industries had been operating in northern Mexico nearly 18 years when their market growth indicated a need to expand. As central Mexico had been one recipient of recent nearshoring investment, the booming market provided the metals manufacturer a strategic location to attend new markets.

The chosen location was in O'Donnell Industrial Park in Queretaro, Mexico located in the central Bajío region. It is home to a growing number of industries, and is especially strong in automotive manufacturing. It was a winning mix of availability, functionality and negotiation.

The metals manufacturer invested $40M in a production center aiming to improve their regional presence, and allowed them to reach new markets in Puebla, Guanajuato, Aguascalientes, San Luis Potosí and Jalisco.

The company's specialized product and manufacturing needs drove the real estate and construction strategies. From the first interactions, Prodensa's real estate and construction management teams worked together to align and streamline the project.

Thanks to the relationships built and maintained throughout the process, combined with some skillful and creative thinking along the way, a win-win project was expertly executed.

PROJECT SPECS

Land Specifications 84,000 ft2 brown field land parcel inside of an industrial park, with infrastructure build up to the foot of the property. It was designed and built-to-suite by Prodensa.

Building Specifications

The xx ft2 industrial building included:

10m?? specialized foundation to accommodate an industrial splitter
2 xx-ton overhead cranes
8-inch thick industrial flooring with structural rebar
An interior train spur entry
water??
electricity??
outbuildings??
exterior works??

PROJECT SPECS

Land Specifications 470,000 ft2 brown field land parcel inside of an industrial park, with infrastructure build up to the foot of the property. It was designed and built-to-suite by Prodensa.

Building Specifications

The 84,000 ft2 industrial building included:

10m?? specialized foundation to accommodate an industrial splitter
2 xx-ton overhead cranes
8-inch thick industrial flooring with structural rebar
An interior train spur entry
water??
electricity??
outbuildings??
exterior works??

PROJECT SPECS

Land Specifications 470,000 ft2 brown field land parcel inside of an industrial park, with infrastructure build up to the foot of the property. It was designed and built-to-suite by Prodensa.

Building Specifications

The 84,000 ft2 industrial building included:

8-inch thick specialized foundation with structural rebar
33-foot (10 m) deep pit to accommodate industrial splitter
2 separate 44-ton overhead cranes connected by a transfer car
An interior railroad switch
77,000+ ft3 (2,200 m3) water reservoir for rain storm drainage
500 KVAs electrical system

Expansion Specifications

The 86,000 ft2 industrial expansion is under way, including:

86k ft2 of roofed production and office space
Additional parking infrastructure and other exterior works

In 2020, PRODENSA Sr. Industrial Advisor, Ismael Villa, began providing local Queretaro market data to the German client, to start the site selection process for their approved project.

The task was challenging: locate a large site with a railway hookup, in a booming market, in the middle of a pandemic. The options were very limited and some creativity had to be used to bring this project to life.

Over the course of 12 months, 13 different sites were analyzed, with a 2-part visitation agenda coordinated with the corporate team. Local sanitation requirements meant that most meetings were done by Zoom, but that didn't matter. Our team's experience with project management ensured a high level of effective communication.

A brown field site inside the O'Donnel Industrial Park in El Marques, Queretaro was chosen. The infrastructure was developed up to the property line, and PRODENSA conducted all of the land and environmental studies and acquired all necessary permits for the construction.

The strong relationships built by PRODENSA, client and landlord were fundamental to the success of this specialized project. PRODENSA facilitated the win-win negotiation that included the separation of certain major works from the lease and extended the term. The goal was success, and it was achieved.

As of July 2023, another 80,000 ft2 building has been proposed and started in Q2 2024.

Construction-Management-Phase1-ExtFoundations-1

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Construction-Management-Phase1-ExtDrone-Halfway2

Construction-Management-Phase1-IntFloorRebar

Civil Works

This particular project included very specialized interior foundations that could accommodate the movement of roughly 80,000 pound rolls of sheet metal. Some of the specifications included:

8-inch industrial flooring reinforced with structural rebar
33-foot deep pit in the middle of the production floor to fit an industrial slitter used to cut large rolls of sheet metal
An interior railway switch for loading cargo
Two 44-ton overhead cranes connected by a transfer car for moving material on the production floor
Rail spur entry and interior connection to KCSM with capacity up to 29 rail cars

Construction-Management-Phase1-InteriorFoundations

Construction-Management-Phase1-IntFloors

Construction-Management-Electrical-Installation

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Construction-Management-Slitter-Installation

CHALLENGES

Height of the pandemic limited travel and highlighted the importance of communication
Complex real estate acquisition negotiation demanded a skillful and creative solution

Specialized land and building requirements limited options in an already booming market
Building specifications included specialized foundation, structured industrial flooring, and a rail spur entry

"When you head on out to the Moon, in very short order, and you get a chance to look back at the Earth, that horizon slowly curves around in upon himself, and all of sudden you are looking at something that is very strange, but yet is very, very familiar, because you are beginning to see the Earth evolve."

Gene CernanAstronaut, Apollo 17

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RESULTS

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PRODENSA

PARTNERS IN MEXICO

Navigating Regulation Pandemic-era challenges of distance, travel restrictions, and local sanitation regulations

LOCAL EXPERTISE Deep market knowledge to identify viable options for strict real estate requirements

BUILDING RELATIONS Effective networking and win-win negotiation skills for a complex project

MATERIAL EXPERTS Cross-functional teams collaborating to align and streamline the cross-over project

LEADERSHIP & COMMUNICATION Communication with all stakeholders overarching all of the first stages of the project

GLOBAL STANDARDS Working with foreign planners to "tropicalize" the project specifications to Queretaro, Mexico

PHASE 2

The expansion started about 2 years after finishing Phase 1 and consists of +86,000 ft2 of additional roofed space, additional to parking lots, air conditioning, electrical capacity expansion, specialized foundation for the installation of a 44 ton traveling crane, and the implementation of a nitrogen supply line.