Patriot Equities

Case Study

Patriot Airport Industrial Park, Niagara Falls, NY

  • Patriot Equities
  • Patriot Equities

Challenge

For years, Saint-Gobain maintained the manufacturing center for both its Ceramics and Abrasives divisions on a 52-acre site in Niagara Falls, New York. The company acquired this 625,000 square foot facility as the result of merger activity in the early 1940s.

In 2006, as business needs evolved, Saint-Gobain made the strategic decision to move Ceramics operations out of Niagara. This decision and restructuring which changed the ownership of the Abrasives division internally, prompted the business unit responsible for Abrasives to begin exploring disposition options for the now underutilized site.

With a legacy in the community and loyal workforce, it was clear to the multinational giant that all viable disposition solutions needed to include some level of ongoing occupancy. The asset’s location in a secondary market coupled with its physical and environmental challenges, including an on-site landfill and groundwater contamination, concerned Saint-Gobain’s Senior Management team. They correctly identified these challenges as significant in finding a suitable buyer who would ensure a flawless transition from corporate owner to tenant.

Solution

Patriot acquired the property in full and leased back 150,000 square feet to Saint-Gobain for the next 10 years. A creative development plan was put in place to address the site’s environmental challenges. The Abrasives division was able to keep its home and workforce in Niagara and Saint-Gobain achieved the freedom from ownership and liability it ultimately desired.

Result

Patriot will transform the site into a modern manufacturing and warehouse facility, Patriot Airport Industrial Park. Unoccupied vacant structures will be redeveloped for remarketing, and options are currently being explored for repositioning the site’s additional 40-acres of land.

Adjacent to Niagara Falls International Airport, with excellent highway access to both U.S. and Canadian expressways, Patriot Airport Industrial Park offers a prime build-to-suit opportunity for a future user or investor.

Seller

Saint-Gobain

Transaction Type

Partial Sale-Leaseback

Use

Manufacturing & Warehouse

Size

625,000 Sq. Ft.