IRG acquires, preserves, redevelops and repositions corporate and governmental real estate assets for modern day use through individual partnerships and limited liability companies. The majority of the assets in the portfolio have been purchased well below replacement costs permitting IRG to spend sufficient capital to modernize the existing facilities, while still being able to offer inexpensive leasing terms to tenants.
While each acquisition requires its own specific strategy, many projects share similar structures and traits. Most of the projects involve acquiring real estate that is no longer needed by its current owner and renovating the property to meet market requirements. For instance, in 2005 IRG purchased a dilapidated steel mill in Baltimore, Maryland from a bankrupt steel manufacturer. Through a complex transaction, IRG completely renovated the 800,000 square foot facility, remediation of the environmental concerns and re-developed the project into a facility that currently houses major operations for Boise Cascade (NYSE: BZ), Weyerhaeuser (NYSE: WY) and several other regional users. Certain projects involve lease-back transactions with major corporations where IRG reduces operating costs at the property so that the tenant can remain in their facility. IRG has successfully completed these types of transactions with major corporations, such as Goodyear (NYSE: GT) and Lockheed Martin (NYSE: LMT).
IRG has continually managed impressive NOI growth rates and excellent return on capital to portfolio investors for many years.
IRG is able to evaluate the condition and opportunities of the company’s existing real estate; determining its highest and best use for redevelopment. Is the space suited for single-tenant or multi-tenant occupancy? Will it serve a single or a mix of uses? Is the site eligible for historic tax credits or ripe for adaptive re-use? Will it become apartments with a walkable town center or a corporate headquarters with office and industrial space? Is re-zoning an option? Which companies are already looking at the immediate area or region? From there, IRG supports the organization’s creation of a plan to secure more functional space, which may involve development of a new building or buildings and/or leasing and renovating a space. In addition, IRG can guide corporate leadership teams through the process of securing incentives and developing a plan which invests into the community and real estate it will vacate, leaving a positive impact.
As a partners during the process, IRG can purchase and lease-back portions of a property or its entirety, creating a seamless transition for employees and saving the steep cost for corporations to continue maintaining the real estate. This process is beneficial in terms of public relations, as it leaves behind a plan for mitigating reduced tax revenue and job opportunities. By beginning the transition with IRG, a public relations strategy can be in place ahead of the announcement, creating alignment between the corporation, public officials and IRG allowing for a smooth transition.
Their track record for leasing is extraordinary… To put it simply, they have figured out how to make projects successful where others could or would not.Will Dalman, Senior Vice President, Huntington Bank
Our decision…was based on factors having to do with the park itself, but equally important was the competence, professionalism, sophistication and integrity of Stuart Lichter and his staff.Ken Moore, Manager of Internal Operations, Northrop Grumman
IRG has been instrumental to the success of McClellan Park. IRG is a very professional organization with excellence in project design and management, governmental and tenant relations, and construction management.Paul J. Hahn, Director of Deprtment of Economic Development, County of Sacramento