here for NAIOP - Las Vegas

Industrial Build-to-Suit
Cashman
Equipment
A CASE FOR CONSOLIDATION
By Curt Carlson
Cashman Equipment was founded in 1931 in Las Vegas, Nevada, and is one of the
highest-rated Caterpillar construction equipment dealers in North America. Starting
as an equipment supplier for the construction of Hoover Dam, it has grown into one
of the largest privately owned employers in Nevada, with over 700 employees.
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DEVELOPMENT
FALL | 2010
www.naiop.org
The entire Cashman Equipment
complex is serviced by an underground
geothermal system to reduce HVAC
operating costs by as much as 45
percent.
In 2002, Cashman Equipment was
notified that a planned expansion
to the adjacent interstate, interchange access ramps and main
collector street would take seven
of their existing 23 acres. The
highway expansion would essentially consume the facility’s frontage, equipment sales and display
and main access to the property.
In addition, the new road design
would raise the current street level
25 feet above the existing grade
to clear the neighboring railroad
tracks. This would effectively bury
all visibility to the site and relocate
the main access to a minor street at
the rear of the property. Faced with
the ultimate decision to relocate
the company, this initiated a chain
of events that CEO and Chairman,
MaryKaye Cashman turned into a
series of opportunities for the growing company.
In 2002, the Las Vegas Valley, and
most of Nevada, was in the midst of
unprecedented growth, with some
of the largest public, private and
infrastructure projects in the United
States. Cashman Equipment had
outgrown its existing Southern Nevada facility with operations spread
across three separate facilities.
The anticipated relocation provided
the opportunity to consolidate the
Southern Nevada operations into
FALL | 2010
DEVELOPMENT
43
Industrial Build-to-Suit
one central location, upgrade and
expand corporate offices, service
shops, warehouse, sales and rental
facilities – and build a sustainable
facility. The next major hurdle was
to find a piece of property that could
handle their operations. With land
prices at an all-time high, major
existing parcels being re-zoned to
residential, and the need for freeway
and arterial access, finding 50+
(level) acres was no easy task. The
City of Henderson stepped up with
a solution that was almost too good
to be true. The city owned a 65-acre
parcel, masterplanned and zoned
for industrial, located on a major
arterial, with site access on three
sides and about 1.5 miles from two
major interstate access interchanges. While the city saw the benefits
of being the new home to a major
employer, it also had concerns
about locating a major industrial
operation at the front door to their
city. Cashman Equipment had some
concerns as well about relocating
operations 25 miles south to the
other side of Las Vegas. These concerns, however, were far outweighed
by the overwhelming benefits of the
property.
The interiors of the building were standardized throughout so
all employees’ spaces were equal – even shop areas. Enclosed
offices are based on two sizes and furnished the same in all
buildings, open work stations are designed in three sizes and
again furnished the same. This design philosophy also allows
for the expansion and contraction of internal departments
without having to reconfigure or remodel spaces.
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DEVELOPMENT
FALL | 2010
Building the
Team and Designing
Success
Early in the property search and
acquisition phase, Cashman Equipment assembled their project team
to include as many key players as
possible. The initial team included
programming consultants from
Caterpillar, the architect (SHarchitecture), and representatives from
each business unit and operation
unit at Cashman. Through a prequalification selection process, the
team added the contractor – Burke
and Associates – early in the planning process. The teams remained
intact and in very close communication through the entire planning,
design, construction, occupancy and
post-occupancy process. The team
started the planning process with a
research mission that included visits
to what were considered state-ofthe-art Caterpillar facilities in the
United States. From there, SHar-
www.naiop.org
s
Natural light in 90 percent of
occupied spaces, coupled with
exterior louvers and interior shades
controlled by automatic sun sensors,
reduces lighting and HVAC costs.
immersed itself into the
operations of Cashman Equipment,
learning each division’s operations, business models, specialized
requirements and personalities.
chitecture
The success of the project was defined by operational efficiency, employee comfort, cost-effective construction and building operations,
as well as sustainable features. The
planning process studied a variety
of single and multiple building
layouts which ultimately produced a
campus of seven buildings total-
ing almost 310,000 square feet of
enclosed area. The first building
houses corporate offices, sales,
warehouse, large equipment and
specialized service bays and training
rooms. The subsequent buildings
include: The Rental Store, EPG and
Power Solutions, dyno and testing
shop, welding and truck repair shop,
security building and a combined
central plant and equipment wash
bays. The site plan takes advantage
of the multiple access points by
immediately separating traffic flows
into public access and parking;
The equipment shop contains
glass sectional overhead doors for
increased natural light, and reflective
concrete floors.
warehouse and parts access; rental
and small equipment access; and
large equipment delivery. Main
public buildings and public parking
are located on the perimeter of
the site, while equipment delivery,
cleaning, testing, repair and storage
are located in a secured zone in the
central part of the campus -- out
of visual sightlines from surrounding roads and properties. This also
allowed the high number of truck
and service bay doors to be located
away from public view. The site was
required to include a pedestrian/
bicycle trail and public art program at the front of the project to
interconnect to the city-wide trail
system. The welding shop collaborated with SHarchitecture and the
city to design and produce their own
sculpture, benches and traffic bollards from recycled Caterpillar parts
to relate to the facility. To further
enhance and improve visibility and
down-play the site’s industrial look,
Cashman buried existing hightension transmission power lines
under the trail system at the front of
the property.
FALL | 2010
DEVELOPMENT
45
Sourcing Capital, Making
Markets, Maximizing Value
UnparalleledAccesstotheLargestPoolofPrivateandInstitutionalInvestors
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BELOW IS A SAMPLING OF OUR RECENTLY CLOSED OFFICE AND INDUSTRIAL TRANSACTIONS
Doral, FL
Office
120,000sf
$19,000,000
Huntington Beach, CA
MedicalOffice
58,542sf
$9,875,000
Whittier, CA
MedicalOffice
40,659sf
$9,000,000
Houston, TX
MedicalOffice
38,513sf
$8,450,000
Austin, TX
Office
35,802sf
$7,325,000
Schaumburg, IL
Industrial
104,191sf
$6,600,000
Newton, NC
Industrial
187,200sf
$6,375,000
Burbank, CA
Office
23,485sf
$6,100,000
West Palm Beach, FL
MedicalOffice
28,346sf
$5,000,000
To access the investment market, contact the market leader
Alan L. Pontius
ManagingDirector
NationalOfficeandIndustrialPropertiesGroup
(415)963-3000
[email protected]
Offices Nationwide
www.MarcusMillichap.com
Industrial Build-to-Suit
Creating a Sense
of Place While
Enhancing Brand
Identity
Caterpillar standards for corporate
identity and signage were key elements that had to be included in
all the buildings and had to satisfy
Cashman Equipment and Caterpillar, while adhering to the City of
Henderson’s requirements. The unwritten constraints were to provide a
significant building for the gateway
to the City of Henderson, create
the new sustainability standard for
Caterpillar facilities and be a place
employees would be proud to be a
part of. SHarchitecture designed a
series of simple rectilinear buildings
with a limited materials palette that
maintained an individual identity of
each building while relating to each
other. Through collaboration with
Burke and Associates and a series
of value engineering exercises, it
was determined that simple tilt-up
construction would be used for all
buildings to control construction
cost and construction timelines. All
of the buildings - ranging from one
to three stories – are exposed tilt-up
concrete accented with yellow metal
panels to reinforce the brand identity of Caterpillar. The interiors of the
building were standardized throughout so all employees’ spaces were
equal – even shop areas. Enclosed
offices are based on two sizes and
furnished the same in all buildings,
open work stations are designed
Even with sustainability as an overriding component, before
being incorporated into the project, all of the development’s
sustainable attributes went through a life-cycle cost analysis to
determine their economic viability.
46
DEVELOPMENT
FALL | 2010
in three sizes and again furnished
the same. This design philosophy
also allows for the expansion and
contraction of internal departments
without having to reconfigure or remodel spaces. The office areas are
arranged with open work stations
outboard – along windows – and
enclosed offices arranged inboard
with glass fronts facing windowed
areas. The campus broke ground in
July 2007 and Cashman Equipment completed move-in of the
final building by January 2009.
Benefiting From
Sustainability
At the very beginning of the project,
MaryKaye Cashman made a statement to be as sustainable as possible while providing a pleasant and
productive work environment for all
employees. The resultant building
is a LEED Gold-certified project that
far exceeded anyone’s expectations.
The highlights of the sustainable
attributes include:
www.naiop.org
s The Cashman Rental Store is a retail rental facility designed to service the contractor and subcontractor
s
construction-related business.
Open work stations in the administration area feature greenguard furniture with recycled fabrics.
• 80 percent (814 tons) recycled
construction debris
• 40 percent locally manufactured
materials
• Low-flow water fixtures and dual
flush toilets
• Xeriscape with no turf and 30
species of native plants
• Ground-source geothermal HVAC
with 359 wells 400 feet deep
looped through the central plant
and distributed to all buildings on
campus
• High performance, low-e dual
glazing
• Interior, remote sensor controlled
shades and exterior sunshades
• CO2 sensors throughout
• Daylight and occupancy sensors
on all lighting controls throughout
• Natural lighting in all occupied
spaces
• GreenGuard certified furniture
• Low/no VOC content in all products throughout
• In addition, 20 percent of all proj-
ect materials are post-consumer
recycled products which include:
• Concrete with 15 percent fly ash
• Terrazzo tile floors with recycled
glass aggregate
• Paving with 35 percent recycled
asphalt
• Recycled carpet materials
• Recycled fabrics on workstations
and seating
• 75 percent recycled structural
steel
• Employee lockers made from
recycled milk cartons
Even with sustainability as an overriding component, before being
incorporated into the project, all
of the development’s sustainable
attributes went through a life-cycle
cost analysis to determine their economic viability. As part of the sustainability analysis, SHarchitecture
identified other financial opportunities afforded to sustainable projects.
This included significant tax rebates
from the state and rebates from local utility companies. Coupled with
energy cost savings, this results in
a payback period of no more than
seven years for the systems and
products selected. The success of
the sustainability programs has been
embraced and enhanced by the
employees and include internal recycling programs, carpool programs
and green cleaning products. Other
employee amenities include a large,
central cafeteria and kitchen area,
remote employee breakrooms and
patios, an employee library, locker
rooms with showers, training rooms
and bicycle and motorcycle parking.
The feature most noticed by the
employees is the abundant natural
light and views from their individual
work areas.
The former Cashman facility has
been recycled as well. Still owned
by Cashman, the building has been
remodeled and leased to a construction company that does not require
the yard space or frontage that was
lost to the freeway expansion. n
By Curt Carlson, AIA, LEED AP, vice
president, director of design, SHarchitecture
FALL | 2010
DEVELOPMENT
47
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