In January of 2011, Teva hired AREA Real Estate Advisors to negotiate an expansion and renewal of their existing 117,000 square foot lease. As a part of that process, AREA evaluated all options in Kansas and Missouri, which included both existing and build-to-suit options. Because Teva is a science based company with strong growth and high salaries, our assignment was to analyze the cost benefit of renewing their lease versus constructing a new building. The new building would have to be constructed and customized to meet their needs and where tax incentives could be employed to offset the extraordinary cost of moving and constructing a new facility.
Working with a team of consultants which included Polsinelli Shughart, public assistance proposals from both Kansas and Missouri were obtained. After completing an integrated facilities cost analysis, it was determined that the cost of constructing a new building was more competitive on an annualized cost basis than renewing the lease. After a two year process of evaluation, it was determined that a site located at College Boulevard and Nall Avenue in Overland Park, Kansas, was the best location for the company. The site had long been owned by Sprint and had never been for sale. AREA entered into negotiations for the company to buy the 18-acre parcel of land with the ability to assign the contract to a developer of choice, once the lease was fully negotiated, the developer had proof of financing, and all entitlements and city approvals and tax abatement were in place. After extensive developer negotiations, Block Real Estate Services was chosen to develop the facility, which broke ground in June of 2012. The project was completed in September of 2013.