The Challenge
Nutramax Laboratories, Inc. holds the patent on various nutraceuticals used in the health veterinarian and agriculture industries.  Nutramax leased approximately 12,000 square feet, of which 5,000 square feet constituted manufacturing facilities.  The manufacturing facilities were “clean room” facilities built to government specifications.  Located in three different locations and experiencing unprecedented growth, Nutramax wished to consolidate its operation into one facility which would incorporate its executive, administrative and manufacturing functions.  The manufacturing function would consist of at least four clean room facilities and total, when complete, approximately 20,000 square feet.  Initially, Nutramax wanted to buy either a special purpose facility or a parcel of land and construct a “special use” facility for its manufacturing purposes.

The Solution
MacKenzie was selected to search in Pennsylvania and Maryland for existing facilities that could accommodate Nutramax - none existed.  A build-to-suit was not feasible given the fact that the building would be a “special purpose” building having limited market appeal upon resale and would be cost prohibitive to the company and its owners.  MacKenzie recommended that Nutramax lease a typical “warehouse” facility and construct the clean room facilities within the warehouse.  MacKenzie negotiated a lease for a 10-year term for an 87,000 square foot facility containing 17,000 square feet of offices.  The provisions of the lease allowed for the construction within the warehouse facility of modular clean rooms systems which would be financed through an “off balance sheet lease” arrangement with a third party vendor and be removable at the end of the lease term.  As opposed to the purchase or construction of a “special purpose facility”, the lease accomplished the objectives of Nutramax but did not require any equity or personal guarantees from the principals of the company.

Nutramax Laboratories

Services Provided: 
• Leasing & Sales
• Corporate Consulting & Strategic Planning
• Development Services
• Construction Services