In mid-2019, news broke that prominent Louisville entertainment venue Noah’s Event Venue was in financial trouble, leaving many brides and grooms in the lurch. Like these would-be married couples, the landlords of Noah’s facilities across the country were being victimized as well. It seems they had been pulled into an alleged Ponzi scheme that is now being litigated in federal court. The owners of the Louisville Noah’s building, which is situated in Blankenbaker Station on Plantside Drive, were a group of more than 20 unrelated investors from around the United States. These owners reached out to Paul Grisanti of Grisanti Group Commercial Real Estate to assist with the disposition of the real estate when it became evident that their tenant, Noah’s, was insolvent. After months intense negotiations and the challenging logistics of executing contracts and closing documents among 23 separate and remote parties, Grisanti Group facilitated the completion of sale of the property. The new owner, Hollenbach-Oakley, plans to re-purpose the facility into office space.

This was one of the most challenging transactions on which Grisanti Group has ever worked. The greatest complicating factor was the ownership structure: Tenancy-in-Common (TIC). Most multi-party ownership groups are structured as partnerships, corporations, or LLCs that have corporate bylaws giving a single individual legal signing authority. In a TIC structure, every party must sign all documents, including contracts, amendments, closing statements, deeds, etc. And these 23 parties were not all simply individuals. Some were single people, some were husband and wife, some were trusts, some were LLCs, and so on. Gathering 23 sets of signatures on every document added complexity to every phase of the transaction. Grisanti Group’s good working relationship with a local real estate attorney, Larry Abrams, was vital to getting the deal to the finish line. Additionally, as a triple net tenant, Noah’s had previously been responsible for all aspects of property maintenance and management. However, once Noah’s defaulted, the owners had to step in and take care of the property. Due to the remote and passive nature of the owners, they enlisted Grisanti Group to manage the property during the transaction. Grisanti Group managed the security, utilities, lawn, landscaping, and other property issues during the course of the transaction.

While the deal was a challenge, Grisanti Group shines during complex transactions. We pride ourselves on attention to detail and providing exceptional service from the beginning of the listing agreement, to the contract, to the closing table, and beyond.

Grisanti Group Commercial Real Estate recently provided tenant representation services to Ring Container Technologies, an Oakland, Tennessee-based plastics manufacturer. Ring needed industrial space in Louisville to supply a key customer.  Ring announced the opening of its state-of-the-art plastic container manufacturing facility in October 2018. Leading up to that moment, Paul and Nick Grisanti spent nearly two years working with Ring officials on site and building evaluation, lease negotiation, and construction. Paul and Nick presented multiple buildings and arranged for numerous tours for Ring’s decision makers. Ultimately, Ring decided to locate at the newly-constructed industrial building at 5808 Johnsontown Road. International Airport Centers was the developer and owner of this building. It is a multi-tenant building in which Ring leases 155,000 square-feet and shares with two other tenants.

The building is conveniently located in the Jefferson Riverport International, one of Louisville’s largest industrial parks. Ring selected the location for its proximity to Algood Foods, a key customer of its plastic containers. Algood manufacturers peanut butter. Ring’s plastic containers are used for a variety of food products, including peanut butter, mayonnaise, nuts, and other snacks. According to Ring, the Louisville facility is using new technologies. Per Ring’s press release: “This cutting-edge application was developed to support the needs of our current and prospective customers, and we are pleased to be launching it in Louisville,” said Brian Smith, Senior Vice President of Innovation and Supply Chain at Ring.

In addition to the real estate negotiations, Nick Grisanti assisted Ring with its applications for incentives through the Kentucky Cabinet for Economic Development. Nick guided Ring through the process of getting approved for the Kentucky Business Investment program, which provide tax rebates for job creation, and the Kentucky Enterprise Imitative Act program, which provide tax rebates for new construction projects. Nick’s experience as a project manager at the Cabinet for Economic Development allows him to offer these incentive consultation services as a bonus to clients with projects that meet the state’s criteria.

The Louisville industrial real estate market is about to get another modern distribution facility. Grisanti Group Commercial Real Estate has sold a 29-acre parcel of land for industrial development. The property is 7830 National Turnpike in Louisville’s Southside/Airport industrial submarket. Grisanti Group represented the seller in the transaction. The buyer plans to construct an approximately 400,000 square foot modern logistics/distribution facility.

A tenant for the proposed warehouse has not yet been announced, but our bet would be that an e-commerce distribution facility eventually calls this beautiful property home. As this article from Wealth Management states, “E-commerce had been averaging gains of 10 percent annually throughout much of the past decade, but those numbers have skyrocketed in recent years. A recent Deloitte study predicts that e-commerce will account for 30 percent of all U.S. retail sales by 2030.” Regional distribution facilities that enable “e-tailers” to provide customers with expedited delivery and return service are a crucial component of the e-commerce supply chain. The Louisville industrial real estate market has seen this boom result in millions of square feet in construction for logistics and distribution warehouses for e-commerce tenants over the last decade.

This new facility at 7830 National Turnpike will fit that mold. Grisanti Group is proud to have helped our client capitalize on this trend.