Overview
Beginning in 2014, Intelica CRETM embarked on a 2.5-year project with Davidson Surface/Air (DSA), a global logistics company, to purchase a large tract of land for the development of office/warehouse space in Bridgeton, MO. DSA was founded as a small operation in 1981 and now services numerous third party logistics needs, including international import/export, air freight and a fleet of 5,000 vehicles. The deal brokered by Intelica CRE required creative ideas to overcome a series of challenges before construction on DSA’s new headquarters began in 2017.
“When you face these kinds of challenges, you don’t react. You just figure it out,”- Gary Parker
Challenge
“This is the most complicated project we’ve ever been involved in,” said Mike Steiniger, owner and president of Kuesel Excavating, one of the St. Louis area’s leading site-development firms. After proposing the site, Intelica coordinated with FEMA for over 18 months, conducting wetland studies and extracting spent munitions and other debris left by a defunct shooting range in order to prepare the property for development. After this, a year passed waiting for a species of bats to reproduce and re-locate. Another challenge arose when representatives of the Earth City Levee District attempted to halt the project, despite having given approval for the development in 2016.
Solutions
In keeping with the thesis of “intellectual capital,” Intelica leveraged financial expertise to negotiate high-value exchanges that made the deal possible within DSA’s budget and timeline. In addition, Intelica’s thorough approvals ensured the action to halt the project was ultimately unsuccessful and development continued as planned.
The successful brokerage of land and construction for a new Davidson Surface/Air headquarters is expected to help create 200 jobs. Davidson earned partial tax abatement from the City of Bridgeton for up to 15 years—100 percent for 10 years, and 50 percent for five. Additionally, Intelica assisted Davidson in securing a tax-preferred exchange, minimizing Davidson’s capital gains taxes.