What does it take to bring a build-to-suit development to life? In this week’s episode of Built on Better Decisions, host Andrew Taylor is joined by representatives from Buffalo Rock Company, J.H. Berry Commercial Real Estate, and Taylor & Mathis for a behind-the-scenes look at the site selection, financing, lease negotiations, and construction of Buffalo Rock's 350,000-square-foot Gulf Coast distribution center in Santa Rosa County, Florida. Taylor & Mathis developed and owns the property, which was designed around Buffalo Rock's operations and leased under a 20-year agreement.

Buffalo Rock's plans to modernize its distribution network created the need for a larger Gulf Coast facility. The 125-year-old beverage distributor was consolidating product-picking operations from 14 locations into fewer regional centers. Buffalo Rock identified a 50-acre site northeast of Pensacola that became available after FedEx abandoned its planned development. With much of the site due diligence completed and design-build contractor Vardaman already involved, the plans were adapted to Buffalo Rock's needs.

Edwin Moss and Hamilton Reynolds explain how Taylor & Mathis was selected through a competitive process and how the transaction was structured. They discuss the 20-year lease, tiered profit sharing, a purchase option if Taylor & Mathis decides to sell the property, and how the team secured financing after its initial lending arrangement fell through.

Attention shifted to design and construction costs. Taylor Harren and Jeremiah Owen explain how Taylor & Mathis, Buffalo Rock, and Vardaman identified 35 to 40 cost-saving opportunities, resulting in approximately $2.5 million in savings, or $7 per square foot.

As Buffalo Rock's operational needs evolved, the development team adjusted the design while planning for future growth. The facility includes 40,000 square feet of office space, a separate 17,000-square-foot fleet maintenance building, infrastructure for future automation, and room for a 150,000-square-foot expansion.

Key Takeaways

• Developer selection involves more than price.Taylor & Mathis stood out in a competitive selection process by understanding Buffalo Rock's requirements and offering a profit-sharing arrangement that worked for all parties.
• Lease structure affects the entire development. The 20-year lease, negotiated rent increases, tiered profit sharing, and purchase option were important considerations for both Taylor & Mathis and Buffalo Rock.
• Financing required a change in plans. When the initial lender couldn't secure a participating bank, Taylor & Mathis worked with another lender to finance the development.
• Collaboration delivered $2.5 million in savings. Taylor & Mathis, Buffalo Rock, and Vardaman identified 35 to 40 cost-saving opportunities while maintaining the facility's requirements.
• The design allows Buffalo Rock to grow. Taylor & Mathis worked with Buffalo Rock and Vardaman to incorporate infrastructure for future automation and allow for a 150,000-square-foot expansion, even as Buffalo Rock's immediate needs changed.

Connect:
- Matthew Dent — President & CEO, Buffalo Rock Company https://www.buffalorock.com/company/

- Jeremiah Owen — Executive Director of Strategic Infrastructure Support, Buffalo Rock Company

- Edwin Moss — Executive Vice President & Partner, J.H. Berry Commercial Real Estate, https://www.linkedin.com/in/edwinmoss/

- Hamilton Reynolds — Partner at Taylor & Mathis, leads the industrial division https://www.linkedin.com/in/hamilton-reynolds-15013514/

- Taylor Harren — Vice President of Development, Taylor & Mathis, https://www.linkedin.com/in/taylor-harren-34359891/

Andrew Taylor, President, Taylor and Mathis
https://www.taylormathis.com/

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Auburn Bank had been piecing together property in downtown Auburn for more than 50 years. When its aging facilities could no longer support the bank's needs, that five-acre site at North Gay Street and East Magnolia Avenue created an opportunity to think much bigger.

Host Andrew Taylor sits down with Bob Dumas and David Hedges of Auburn Bank, Jeffrey Brewer of GMC Network, and Mike Irby of Taylor & Mathis to look back at the planning and development of Auburn Bank's new downtown headquarters. Located just one block from Toomer's Corner, the project brought together a four-story, 90,000-square-foot office building, street-level retail, a roughly 500-space parking deck, and eventually a 129-room boutique hotel. The new headquarters also allowed Auburn Bank to bring its corporate offices, lending and administrative teams, operations center, and downtown branch together under one roof.

One of the biggest decisions came early. The bank only needed about half of the new office building for its own operations, but its leadership chose to build for the future rather than risk outgrowing another facility. With very few Class A office comparables in the Auburn market at the time, there was no guarantee the additional space would lease. The team believed the location, Auburn's continued growth, and proximity to the university would create demand. That decision has since paid off as the building attracted professional tenants looking for the type of office environment that previously did not exist in the market.

The parking deck became another important piece of the overall development strategy. Office, hotel, public, and event parking all had different demand patterns, allowing the team to share approximately 500 spaces across the development instead of building separate parking facilities for each use. The deck was also designed around the realities of Auburn, including larger vehicles and game-day traffic, with wider drive aisles, larger spaces, and sloped parking floors that eliminated the need for traditional speed ramps.

Topics Discussed:

• Why Auburn Bank chose to build more office space than it initially needed and plan decades into the future
• How office and hotel uses allowed the team to make better use of a shared parking deck
• The challenges of keeping the bank, drive-through, utilities, and site access operational throughout construction
• How the team managed construction during the pandemic while working around Auburn football weekends and other major downtown events
• Why the redevelopment became more than a new bank headquarters and helped support continued investment in downtown Auburn

Connect:
- Robert W. (Bob) Dumas (Chairman of the Board -- AuburnBank)

https://www.linkedin.com/in/robert-dumas-8683b344/

- David A. Hedges (President & CEO -- AuburnBank)

https://www.linkedin.com/in/david-hedges-646ab315/

- Jeffrey Brewer (CEO – Goodwyn Mills Cawood)

https://www.linkedin.com/in/jeffrey-brewer-aia-a8100a18/

- Mike Irby (Partner and Senior VP of Development – Taylor & Mathis)

Andrew Taylor, President, Taylor and Mathis

https://www.taylormathis.com/

Rate, Review, & Follow on Apple Podcasts:

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And if you haven’t done so already, give the podcast a follow, and you'll be notified when new episodes come out.

Andrew Taylor, President, Taylor and Mathis
https://www.taylormathis.com/

Rate, Review, & Follow on Apple Podcasts:

We hope you’re finding value in Built on Better Decisions. Your feedback is important to us, and we’d love to hear from you.

Here’s how you can help. Scroll to the bottom, rate our podcast with five stars, and select “Write a Review.” Let us know what you found most helpful from this episode!

And if you haven’t done so already, give the podcast a follow, and you'll be notified when new episodes come out.