Case Study: Klein Tools
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Overview
Klein Tools (Klein), a manufacturer of the highest quality hand tools for professional contractors, is committed to manufacturing their product in the USA. In order to maintain this commitment to production in the USA, Klein Tools is strategically adjusting their real estate holdings to optimize the productivity of their manufacturing plants. Jack Rosenberg, Principal, Colliers Bennett & Kahnweiler (Colliers B&K) enjoys a 15-year + relationship with Klein, working with them on a variety of assignments including the current corporate headquarters relocation build-to-suit.
Approach
Jack Rosenberg’s understanding of Klein’s business goals guides him in implementing their real estate strategy. With their current corporate office located in a 250,000 SF manufacturing facility, Klein needed to vacate the office to make more space available for manufacturing. Klein initially expressed interest in purchasing a 60,000 SF office building. Rosenberg’s long-standing relationship with Klein allowed him to recommend an alternative strategy that would accommodate additional manufacturing needs as well.
Recognizing Klein’s many subsidiaries and consistent need for manufacturing space, Rosenberg recommended an office/manufacturing combination and convinced Klein that this option would be most advantageous for current operating efficiency and future resale scenarios. Rosenberg began a search for both build-to-suit land sites and existing industrial facilities.
Results
In an extremely tight market, Colliers Bennett & Kahnweiler identified a rare piece of available Lake County land for the headquarters building, a seven-acre site in Lincolnshire near Milwaukee and Rt. 22. The Colliers B&K team facilitated the design and bidding process, negotiated the land sale and construction contracts, which led to McShane Construction’s engagement to building the 127,000 SF corporate headquarters building. The facility is currently under construction and will house approximately 250 employees at the time of its completion in the first quarter of 2006.
