Tuesday, May 31, 2011
LANDLORDS, TENANTS JOCKEY FOR POSITION IN LEASE NEGOTIATIONS
MAY 25, 2011 12:05 AM, BY DAVID BODAMER, RETAIL TRAFFIC EDITOR-IN-CHIEF
The mood at ICSC’s RECon has been near exuberant.
The industry is the most bullish it has been since the Great Recession began with many attendees feeling relieved that the “light of the end of the tunnel” that many talked about last year did not end up being a train. Instead, it really was daylight. And the result is a climate in which deals are actually getting done.
It’s still far from being a normal dealmaking environment. But at least attendees think things are clearly moving in the right direction.
The biggest challenge in the market is the difference in performance between top assets and those lower down in the value chain. The consensus in the market is that if you operate class-A space, you’re in pretty good shape. Those are the locations retailers want and those are the deals that are getting done.
The sentiment on class-B and class-C space is not as clear, however. Some attendeesRetail Traffic spoke with said that tenants are beginning to look at those properties while others said that the market remains dead. However, even those that reported that retailers are looking at lower-quality space said that it remains to be seen whether any real deals will materialize from the recent inquiries.
“Tenants are more aggressive, but still nervous about class-B assets,” said Bill Taubman, COO of Bloomfield Hills, Mich.-based regional mall REIT Taubman Centers.
“There’s a flight to quality,” added Michael Glimcher, chairman and CEO of Glimcher Realty Trust, a Columbus, Ohio-based regional mall REIT. “The highest quality retailers are more demanding and are much more interested in class-A properties.”
Besides class-A shopping centers, retailers also are aggressively trying to grab urban locations. Rents on some of the country’s highest profile retail corridors—Madison Ave. in New York, the Miracle Mile in Chicago and Rodeo Drive in Beverly Hills—have surged in the past 18 months, according to several executives with global real estate service firm Newmark Knight Frank.
“Retailers want an urban footprint,” said Cynthia Groves, senior managing director, retail consulting. “Urban cores are hot and exceedingly competitive,” added Gregory Kirsch, a principal in the firm’s retail group. Kirsch estimates that rents have escalated between 30 percent and 50 percent in urban retail cores in markets like New York, Boston, San Francisco, Chicago and New York.
Still looking for help
While the market is improving, the balance of power in leasing negotiationsunquestionably still lies with tenants. Activity is picking up, but vacancy rates at retail properties remain at or near historic highs, depending on whose numbers you look at.
So while the era of mass concessions is over, some tenants still need help, according to Matthew Bordwin, co-president of GA Keen Realty Advisors.
The firm renegotiated 7,500 leases in the last two-and-a-half years. Bordwin expects renegotiations to remain a big theme for the next couple of years. Some retailers that got concessions in the past couple of years may need additional support. For example, when landlords granted rent reductions, in many cases they were for 18 months. Those periods are now ending, but some retailers still need help. So those are the kinds of conversations that will continue to take place, according to Bordwin.
Retailers are also ...
Monday, May 30, 2011
U.S. ECONOMY ON A PACE TO CREATE 2.3 MILLION JOBS IN 2011, SAYS NADJI AT RECON
MAY 24, 2011 1:52 PM, BY MATT VALLEY, NREI EDITOR-IN-CHIEF
LAS VEGAS — The U.S. economy finds itself caught in a tug of war between economic headwinds and real recovery, says Hessam Nadji, managing director of research and advisory services for Marcus & Millichap.
The biggest headwinds are the ailing housing market, record consumer debt, and a large amount of public debt. The signs of recovery include the creation of 1.8 million private sector jobs over the past 12 months and a continual rise in retail sales.
“Housing is headed for a double-dip recession,” Nadji told a packed room of 700 shopping center industry professionals at RECon 2011 on Monday as part of Marcus & Millichap’s annual retail outlook.
“The U.S. housing market is now contributing only 3% to our economic output versus 6% in 2005.” Nadji estimates that 30% of the turnover in the housing market today stems from distressed sales, either foreclosures or short sales.
“There really is no end in sight in terms of when we can see the inventory of foreclosures and distressed sales out of the picture, so that we can get to the bottom and start a new cycle.”
Continue reading this piece at NREIonline.com
Sunday, May 29, 2011
Consolidation Accelerates Ahead of Market Recovery
Since the beginning of 2011, there has been a torrid level of M&A activity in the commercial real estate services industry. Recently announced deals include CBRE’s acquisition of the ING Real Estate fund management business; the sale of Newmark to financial derivatives house BGC; Colony Capital’s loan and exclusive look period with Grubb & Ellis; the recapitalization of DTZ by investment group SGP and the possible follow on merger with BNP Real Estate; and the hotly rumored takeover of King Sturge by JLL. And that is just on the services side. On the information side, Argus is selling to Altus and Costar is acquiring Loopnet.
That big money is being deployed to acquire and expand existing platforms is a clear sign that the commercial real estate market is in the early stages of recovery. Key metrics show both sales and leasing volume are up and in the major markets both rental rates and asset prices have recovered sharply for core assets. But there is a long way to go for secondary markets and non-core assets. As commercial real estate climbs out of the depths of the credit crisis, industry leaders are now looking to expand their depth and breadth of coverage in order to capitalize on opportunities.
There is little doubt that the big will get bigger and more consolidation will follow. The real question remains “how best to provide service?” Is it through a large corporate bureaucracy, best-in-class local providers or some combination that provides the requisite global infrastructure, quality control and support with the best local talent and client-centric approach? Clearly some of the recent M&A activity is following familiar strategic patterns, while others are dramatic course changes.
Over the past 40 years the commercial real estate industry has grown from a local business to a global industry with each economic cycle accelerating the transformation. Now more than ever global resources and reach are critical to serve commercial real estate clients at the local level. The trick is to be able to deliver local service at the global level. Finding the balance between entrepreneurial local market expertise and the institutional strength of a global company is the key to optimizing global real estate services. In the quest for scale and market share, the customer is often lost.
As the largest global managed network of commercial real estate firms we are committed to be a driver and leader in this industry transformation, evolving to serve the ever growing needs of our clients without sacrificing the local touch and customer care we have been known for.
About the author
Scope of Service Experience Jeffrey M. Finn is President and Chief Executive Officer of NAI Global. NAI Global, with over 165 affiliated commercial real estate brokerage firms throughout the world, a web of strategic partnerships and a core of real estate service specialists, is the world's largest managed network of commercial real estate service firms. The NAI system is involved in over $45 billion in real estate transactions annually. Mr. Finn is one of the founders of the company, and over the past decade, has helped lead the organization to its current position of industry prominence. He has been active in marketing, management and strategic planning capacities with NAI. Mr. Finn has represented major accounts including BP Amoco, Air Products & Chemicals, The United States Postal Service, Unisource and WorldCom - MCI. Mr. Finn has also pioneered the company's international growth establishing NAI Canada, NAI Europe, NAI Latin America, and NAI Asia Pacific. In addition to leading the company's Corporate Services Real Estate Group, Mr. Finn has established the company's many technological initiatives, which have earned the company a leadership position in the use of intranets and extranets, to efficiently deliver services. NAI Global's proprietery technology provides real time online information about markets and projects to streamline and systemitize the transaction and portfolio management process. In 2003 and 2004, his efforts were recognized by Realcomm, from which he received their prestigious "Digital Impact" awards for Brokerage Automation and Innovation in the commercial real estate industry. Education B.S. - Boston University School of Management (Cum Laude Graduate) New Jersey Real Estate Brokers License Numerous CoreNet, CCIM, SIOR seminars and courses. Professional Affiliations & Designations NAI Global, Inc. - Board of Directors NAI Cares Foundation - Board of Trustees The Peddie School - Trustee University of Pennsylvania, Wharton Real Estate Center - Founding Member & Past Advisory Board New Jersey Business - 40 under 40 International Council of Shopping Centers (ICSC) National Real Estate Investor - 40 Stars of Tomorrow Commercial Property News - Top Executives to Watch Real Estate Forum - The Forum 100 - Real Estate's Top Companies
Wednesday, May 25, 2011
EXPERT WITNESSES: A HALF-DOZEN INDUSTRY THINKERS SHARE THEIR KNOWLEDGE IN KEY AREAS
Some parts of the commercial real estate business are easy to understand. Leasing, design, development, construction and investment come to mind as bread and butter areas that most people can get their heads around—at least in broad strokes.
But there are niches that require just a bit more knowledge and nuance. Things like lease administration, resolution of troubled banks, title insurance, 1031 exchanges, cotenancy clauses, and defeasance are all subjects that are best left to the real experts.
So that’s exactly what we did.
In the following links, you’ll find columns on each of these topics from some of the leading lights in the industry. Brian Olasov, managing director with McKenna Long & Aldridge LLP, is a specialist on banking and real estate capital markets issues. He kicks things off with a look at whether it still might make sense for the government to create a second Resolution Trust Corp.
After that, Tara Scanlon, a partner with Holland & Knight LLP in Washington D.C.,examines some common issues retailers and landlords may face in reviving dormant projects.
Next, ...
Tuesday, May 24, 2011
NAI Global Expands into Mumbai, India with Sure Shot Suggestions
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announced today it is expanding its coverage into Mumbai, India with the signing of Sure Shot Suggestions ( India ) Pvt. Ltd. The firm will now operate as NAI Sure Shot Suggestions.
Located in Mumbai, India, NAI Sure Shot Suggestions is a full-service commercial real estate firm formed in 1992 by Sanjay Puri. The firm is a leading provider of real estate services to many local Indian corporations and investors and is renowned for its work on behalf of many multi-national corporations including Amway, Barclays, Citibank, Orange, Schlumberger, Sony and Standard Chartered.
“Through our partnership with NAI Global, we are now able to provide real estate services to our clients beyond Mumbai with the high standards of service we have established in the Greater Mumbai market.” stated Sanjay Puri, NAI Sure Shot Suggestions’ Managing Director. “Through our new partnership with NAI Global, we will have access to new resources and technology to better serve both our local and international clients.”
“As India’s economy continues to expand, it is playing an increasingly important role in global trade. It’s vital for NAI to have a strong presence in India’s capital,” said NAI Global President & CEO Jeffrey M. Finn. “With the addition of NAI Sure Shot Suggestions, NAI now has a well-established partner to provide local knowledge, relationships and skills to our corporate and investor clients with interests in Mumbai and throughout India.”
NAI Sure Shot Suggestions ( India ) Pvt. Ltd. is located at 2A, Gomes Society, Gr. Flr., TPS-III, 4th Road, Santacruz (East) Mumbai 400 055, India.
1031 EXCHANGES GAIN TRACTION AS LENDING ACTIVITY INCREASES
Tax-deferred exchanges, which accounted for nearly 30 percent of investment sales during the industry’s boom years, slowed to a trickle at the lows of the recession. Today—fueled by a renewed availability of capital—those deals are reemerging.
In 2007, perhaps the frothiest year of the boom, $4.1 billion in tax-deferred exchanges were executed on 765 transactions nationwide. That velocity proved to be short-lived.
The subprime lending crisis led to a full-blown credit crunch that began to rear its ugly head during the first quarter of 2008. As a result, banks, conduits and other institutions shut off the capital spigot for all types of investments. Most significant was the near shutdown of the CMBS market, which accounted for almost half of all commercial lending during the first half of 2007.
Bill Rose
As a result, a high-leverage, speculative investment climate was replaced by a renewed focus on operations underwriting. Of the retail transactions that managed to secure financing and close during the global economic crisis, the majority were ...
Bland Distribution Services Expands Facility
McAllen Economic Development Corporation
Hidalgo County, Texas – Bland Distribution Services (BDS) of Donna, Texas announces the expansion of its cold storage and dock areas. The distribution center broke ground in January 2008 and after unprecedented growth in just 2 years, a decision was made to expand the BDS cold storage space.
That expansion has recently been completed and BDS now has 100,000 square feet of cold, dry, packing, dock and office space. Cold storage space is divided into eight separately controlled areas with a 3,100 pallet position capacity. Each area incorporates Airo-cide technology, an air filtration and anti-ethylene gas system, and state-of-the-art refrigeration computer controls. The expansion included an additional six refrigerated dock doors bringing the total to eleven doors. BDS also has six dry docks and office space for lease to customers.
“We are most excited about the new refrigerated space for reworking and repacking shipments which assures the cold chain for our customers,” said Nick Sanchez, General Manager of BDS. “The facility has now doubled the controlled temperature zones from four to eight, increased dock doors has brought the loading time from check in to completion down to one hour. This expansion allows BDS to once again grow with their customers and develop new business, as it has been at full capacity since December 2010.
BDS opened in November 2008 as a cold storage and distribution center for fresh, frozen and dry goods. BDS specializes in consolidating loads, layer picking shipments, reconditioning/repacking and ...
Monday, May 23, 2011
Sunday, May 22, 2011
AS RETAIL REAL ESTATE COMES BACK TO LIFE, IT’S TIME TO REVISIT LEASE DOCUMENTS
The retail world is coming back with a bang and many retailers and developers are focusing on deals that were signed prior to or during the recent economic downturn. As a result, it’s time to dust off lease documents from 2008, 2009 and 2010 as new sales, financing and equity investments pick up.
A review of these lease documents is necessary for landlords and retailers to put themselves in the best possible position when bringing projects out of hibernation.
Passage of time
When many leases were executed, estimates for closing on construction loans and commencement of construction were based on the facts known at the time. Since then, difficulties obtaining construction financing created major delays on many developments. The uncertainty in the retail business sector also made it challenging to hit the leasing thresholds necessary to start construction.
Tara A. Scanlon
These delays pushed project schedules well beyond what would reasonably have been anticipated. Here are some provisions that warrant a review: ...
Wednesday, May 18, 2011
La Plaza Mall Considers Expansion
An artist’s rendering of La Plaza Mall’s new food court, scheduled to open during June 2012.
The Monitor - Posted by Dave Hendricks on May 18, 2011
La Plaza Mall may build a second story, and has undertaken a feasibility study on the idea, said Irma Castor, who oversees La Plaza, Palms Crossing and Harlingen’s Valle Vista Mall for Simon Property Group.
“We’re still in the feasibility study stage, but yes, there’s definite interest in expanding La Plaza, but we don’t have a date yet,” Castor said Wednesday morning. While adjacent property, ...
McAllen lures second Sam's Club
McALLEN — City leaders and an Austin-based developer have inked a deal to build the Rio Grande Valley’s third Sam’s Club near the intersection of North 10th Street and Trenton Road.
It’s an economic development coup for McAllen, which already has a Sam’s Club at 1400 E. Jackson Ave. The new Sam’s Club, slated for the intersection’s northwest corner near First National Bank and Red Lobster, must open by Dec. 31, 2012, according to the 380 Economic Development Agreement — a type of accord named for the chapter of the Texas Local Government Code under which it is allowed.
“I think this speaks very highly of the retail strength of McAllen,” said Keith Patridge, president and CEO of the McAllen Economic Development Corp. “There are very few cities where you have two Sam’s Clubs.”
It’s also part of an extended build-out along Trenton Road, starting at U.S. 281 and moving west. Both McAllen and Edinburg have experienced rapid growth along the corridor.
Signed April 26, the agreement between McAllen and Uptown Partners, a corporation controlled by Austin-based Cielo Realty Partners, contains several major incentives for the developer. Uptown Partners will keep 75 percent of sales tax revenue generated by Sam’s Club until the company receives $4 million. McAllen also agreed to waive some development-related fees and install necessary traffic lights without charge.
Sam’s Club will anchor the development, called Valencia Marketplace. Once Cielo Realty closes the deal, which should happen during the next few months, construction should begin shortly, said Rob Gandy, a partner at Cielo Realty.
“The retail sales numbers in the Valley continue to catch the attention of the regional and national retailers,” Gandy said. “And we believe north McAllen is a very attractive location for them to be.”
Several pad sites along 10th Street, including the Red Lobster location, have already been sold, according to county property records. Gandy said he couldn’t discuss the conversations he’d had with other restaurants and smaller retailers, but that announcements will be forthcoming.
Feldman’s, the Valley-based chain of liquor stores, may be among them. Owner Steve Jabour said during March his company might build a trendy, market-style store near the intersection.
--
Dave Hendricks covers McAllen and general assignments for The Monitor. He can be reached at (956) 683-4452.
NAI Global Firms and Agents Earn 216 CoStar Power Broker Awards
NAI Global, the premier network of commercial real estate firms and one of the largest real estate services providers worldwide, today announced that 84 NAI member firms and 132 NAI agents were named 2010 Power Brokers by CoStar Group, a leading information provider for the commercial real estate industry. NAI received a total of 216 Power Broker Awards across 56 markets for its performance in 2010. Only one other brokerage firm received more awards.
“NAI Global’s performance demonstrates the strength and depth of our organization throughout the United States,” said Jeffrey M. Finn, NAI Global’s President and Chief Executive Officer. ”This impressive showing confirms NAI Global’s leadership position and illustrates the capabilities of our professionals to provide best-in-class local market knowledge and real estate services in every market that we operate in. We are proud of our continued strong performance and appreciate the recognition of a leading independent organization like CoStar.”
CoStar Group tracks data on commercial properties and transactions throughout the U.S., U.K. and France. The Power Broker Awards are presented annually to the top brokerage firms and individual agents in major U.S. markets based on their leasing and sales transaction activities the prior year. The complete list of NAI member firms and agents receiving honors is available at http://www.costar.com/specialprograms/powerbrokers.aspx.
Monday, May 16, 2011
Auction Data Suggests Sales are Increasing
In June 2010, I analyzed CoStar Group (CoStar) data on industrial, office, retail and multi-family auction sales over a 17 month period. I recently reached out to our friends at CoStar to check out the recent 10 month period, July 2010 through April 2011. The research provided by CoStar reflects auction sales of only those properties listed with CoStar.
So, what has occurred since then? What sectors are hot?
From February 2009 to June 2010, 102 multi family properties were sold at auction and the variance between asking and sell price was 90%. From July 2010 to April 2011, the variance was 82%. More sales occurred however, with 132 multi-family properties with a total value of over $2 Billion sold at auction in just a ten month period.
The number of office properties sold at auction increased significantly. While only 108 office properties sold at auction during the February 2009 to June 2010 timeframe, the number increased to 202 sold during the recent ten month timeframe. The total dollar volume was just over $1 Billion. During the earlier period, the variance between asking and sell price was 75%. The gap closed during the most recent period, with average asking versus average sell at 99%. The data suggests that the overall average does not reflect steady monthly occurrences but rather sharp peaks with average sales prices surging in some months and dropping in others.
Industrial/flex property auction sales are up as well. Last year, when we compared half year 2010 sales to 2009 sales, we found a ten percent increase in number of transactions brought to market. During the entire earlier period, 132 industrial/flex properties sold at auction and average asking price to average sales price was 65%. When we look at just a recent 10 month period, the number jumps to 174 industrial/flex properties valued at just over $300 Million traded at auction. Prices during the earlier period were becoming more aligned and have continued. The former data showed a slight increase in the variance between asking and sell price, or 67%. Of interest is that the gap has narrowed in the most recent 10 month period with average asking to sell prices showing a variance of just 81%.
Retail property auction sales are also up. Retail properties being offered for auction dropped by more than 40% during the first half of 2010 as compared to the last six months of 2009 and were 20% less than the first half of 2009. During a 17 month period, 341 retail properties sold at auction and the variance between asking and sell prices at 70%. More consistency is found over the recent 10 month period when 299 retail properties with a total value of $1.1 Billion were sold at auction. We witness sharp peaks with high average selling prices surging in some months and dropping in others, with overall “average prices” suggesting a gap of just 1% or a variance of 99% when comparing average asking to sell prices.
While we had not considered land sales at auction last year, there were 191 transactions with a total value of over $1 Billion during the July 2010 to April 2011 timeframe. Average sell prices were 65% of average asking prices.
NAI Global has also witnessed increased interest in auction sales, with greater activity in sealed bid PowerSale, live and online auctions programs over the same period.
To learn more about NAI Global’s accelerated marketing program, visit www.nairgv.com or www.naiglobal.com/powersale
About the author
Scope of Service Experience Ms. Patricia D. Faulkner is a Senior Vice President with NAI Special Asset Services. Patricia is a real estate executive with more than 25 years experience. Currently, Patricia is the NAI Global Coordinator for the Commercial Property PowerSale, the most effective way to sell non performing and underperforming real estate. She was honored as NAI Global's Top Producer in 2008. Patricia works closely with companies who have multi location real estate requirements - from developing unique solutions to their complex needs to putting the people, processes and systems in place to execute their real estate plan. From 2001 through 2005, Patricia led the Corporate Communications department at NAI Global headquarters and coordinated the 2005 branding campaign which has been well received throughout the world. Patricia was awarded with an Outstanding Achievement Award in 2002 for her major contributions relative to NAI branding efforts.
Wednesday, May 11, 2011
Tuesday, May 10, 2011
Return of the Mall
RETURN OF THE MALL
MAY 5, 2011 8:08 AM, BY ELAINE MISONZHNIK, RETAIL TRAFFIC ASSOCIATE EDITOR
The enclosed regional mall—the uniquely American retail property that sprang to life in the 1950s and 1960s—has been declared dead (or dying) for years.
Stephen D. Lebovitz, president and CEO of CBL & Associates Properties Inc., a Chattanooga, Tenn.-based regional mall REIT with an 82.1-million-square-foot portfolio, recalls conversations with tenants in the not-so-distant past in which retailers insisted their future lay elsewhere—at lifestyle centers or town centers or mixed-use projects. The experience was not limited to CBL—mall executives across the board were having similar discussions with their tenants. At the time, many believed the format had outgrown its usefulness and was out of step with modern customers. “A lot of the retailers went so far as to say they prefer lifestyle centers over regional malls,” Lebovitz says.
The list of grievances was long.
Malls were too large.
Their temperature-controlled environments were too artificial.
Department stores—the original conceit around which the concept was developed—were not the draws they once were.
Mall parking lots were too sprawling and mall parking garages too arduous to navigate.
Formats like power centers, lifestyle centers and mixed-use facilities were newer, hipper and more convenient.
And, of course, there was the constant growth of internet retail, which continues to slowly eat away at traditional retail channels.
In response to these factors, mall owners ...
Click here to read more
If you are having trouble copy/paste the below link in your browser
http://retailtrafficmag.com/development/analysis/return_of_the_mall_05052011/
Master planning begins for Rio South Texas research, education park
Source: McAllen Economic Development Corp
A research and education park for the Rio South Texas region is becoming a reality now that the master planning process is underway. Broaddus Planning of Austin is expected to complete the master plan by fall 2011.
The park will be located on 400 acres of public and private land near the McAllen Foreign Trade Zone. Located across from Reynosa, Mexico, it is one of the nation’s most active trade zones.
Click here to read more
The park will be located on 400 acres of public and private land near the McAllen Foreign Trade Zone. Located across from Reynosa, Mexico, it is one of the nation’s most active trade zones.
Click here to read more
Monday, May 9, 2011
STC Stands Out in New Hispanic Outlook Ranking
South Texas College ranks number two on the inaugural list of “Top 10 Four-Year Schools Awarding the Most Associate Degrees to Hispanics.” The national education journal Hispanic Outlook in Higher Education released the rankings in its May publication.
The publication states it singled out these schools because they “boldly go where few community colleges have yet to venture,” and are considered as pioneers because they are community colleges that offer bachelor degrees.
STC is the only Texas college that made the rankings, sharing the top 10 spotlight with colleges from California, Florida, Illinois and New York. Miami Dade College ranked at the top of the list.
STC is one of only three community colleges in Texas accredited to offer baccalaureate degrees. The college introduced its bachelor’s program in 2005 and has witnessed continual growth with two degree paths—Bachelor of Applied Technology in Technology Management and a Bachelor of Applied Technology in Computer and Information Technologies.
“It’s very exciting for our faculty, staff and students to be recognized at this level,” said STC President Shirley A. Reed. “We are leading the nation in helping students complete degrees because of our commitment to exceptional student services and instruction.”
South Texas College offers more than 100 degree and ...
Click here to read more
New Powder Coating Company in McAllen MSA
MEDC
McAllen, TX. April 2011 - KAZAM announced in April the signing of a lease for 20,000 square feet of manufacturing and warehouse space in the industrial zone of McAllen, Texas where they will be providing manufacturing processes such as powder coating (5-stage wash line) and silk screening. A formal ribbon cutting and grand opening ceremony will be held at a later date.
KAZAM’s parent company, Karlee Corporation, is headquartered in Garland, TX and this site will be the 5th plant under the Karlee Corporation umbrella. In addition, Karlee has a manufacturing facility already in McAllen TX where they have sheet metal manufacturing and stamping. This new division, KAZAM will enhance Karlee’s ability to provide extended services for their product and give them the capability to service the region with a process that is not located within a significant radius.
“We are pleased to announce that we are expanding our manufacturing capabilities,” commented Luis Zeledon, Site Manager for Karlee and KAZAM in McAllen. “Labor costs and strategic location were the main drivers for us to set up the operation in McAllen. There is no other service like the one we will be offering that is open to multiple customers and not captive to one operation.”
KAZAM’s investment of approximately 1 million dollars will ultimately generate 25 jobs in McAllen once it is in full operation, expected to be by the end of 2011.
McAllen Economic Development Corporation has worked with KAZAM to ensure their smooth transition. “To support the new project and Karlee, we have been connecting Luis with potential customers,” mentioned Megan Davila, Business Development Specialist at McAllen EDC. “As with any new company we help establish in the McAllen area, we want to do what we can to ensure they are successful here.”
Friday, May 6, 2011
Subscribe to:
Posts (Atom)
Posts
