Nichols Institute

Overview

The Krausz Companies developed a master-planned, 100-acre, state-of-the-art corporate headquarters and reference laboratory campus in an area that was the subject of intense community scrutiny. Surrounded for miles by public wilderness, the demands of the community and environmental regulators, along with the needs of the user, created significant challenges for Krausz (and had caused many other high-profile developers to walk away from the project). In the face of such challenges, Krausz created a project it could be proud of within significant budgetary, aesthetic, functional, environmental and regulatory constraints. The tenant was a rapidly growing young company with great promise but limited financial resources. The tenant’s credit, along with the costs and challenges of developing a project in the middle of the wilderness, miles away from almost all necessary infrastructure, had before The Krausz Companies’ involvement prevented the tenant from successfully developing the project.

Strategy

The Krausz Companies addressed the credit challenge through a novel sale/leaseback and financing structure that enhanced the sponsor credit. Innovative design and construction solutions were put in place to solve the infrastructure and environmental concerns while still allowing the project to be delivered at market rents.

Results

The end result was both an economic and environmental success. The Krausz Companies delivered its client a first-class corporate headquarters and reference laboratory that exceeded the client’s expectations, maximizing efficiencies and utilizing cutting-edge technology. Despite initial opposition from environmentalists, public approval of the project ultimately was so broad that the local Audubon Society chapter, once a vocal opponent of the project, held regular meetings on site after the project’s completion.