News
Situation:
Marketing logistics company Prisma, based in Phoenix, Ariz., came to Foundry Commercial in May 2021 looking for tenant representation services in their pursuit to find a 100,000+ square foot facility to serve as a base of their East Coast operations. Having recently acquired two Nashville-based companies, Prisma was interested in seeing if the mid-south was the right fit for their expansion efforts. Having engaged Foundry Senior Vice President Melissa Alexander for market information, Prisma asked early in the process if incentives might be a part of the discussion to help evaluate their location options. At that time, Foundry Commercial and Maxis Advisors had not yet formed the professional partnership that was solidified in December 2021, but thankfully, in due time, it became apparent that Maxis could play a big role in helping to negotiate incentive opportunities for Prisma.
Solution:
In early 2022, Melissa reached out to Maxis Managing Director Dianne Jones to bring her – as well as colleague Andrea ‘Andi’ Brownell– into the discussion with Prisma Chief Operations Officer James Hill. Having the option to expand their operations near their existing HQ in Phoenix brought the competitive nature to the equation that is often the tipping point in incentives discussions, and while the city of Nashville did not offer incentives that would benefit Prisma, Maxis has worked numerous projects in the area and that experience lead Andi, to look beyond the confines of the city proper to engage both the state of Tennessee as well as utility provider, the Tennessee Valley Authority.
Result:
Foundry rigorously searched the Nashville market, which only had a 3 percent vacancy at the time. Before signing a lease at 2947 Brick Church Pike in Nashville, a property that will eventually house 109 net-new employees, Maxis Advisors negotiated an incentive package of approximately 20% of the project investment, which ultimately helped make the decision to open this base of East Coast operations in Tennessee. In partnership with the state of Tennessee, Prisma is receiving direct reimbursement for an employee training program. Additionally, the Tennessee Valley Authority came to the table with an economic development grant as well as utility credits that incentivized Prisma to make the move to the Nashville area. At this time, following property buildout and tenant improvements – which is being project managed by Foundry as well – those 109 new jobs will provide high-wage job growth in the area. It is expected that Prisma will be able to begin operations in their new property in the fourth quarter of 2022. This case study provides just one example of how crucial it can be to bring Maxis into incentives negotiations conversations early.
“The Foundry and Maxis teams were fantastic. Their market knowledge combined with an aggressive effort to negotiate incentives was extremely valuable as we sought to find a facility that met our needs in an incredibly tight market. The team also delivered real value during lease negotiations, getting a final lease executed, and in seeing that tenant improvements were done correctly and timely. It has been wonderful to partner with this team!” – James Hill, Chief Operations Officer of Prisma