A123 Systems
COMPANY SYNOPSIS
A123 Systems is one of the world's leading suppliers of high-power lithium ion batteries, using proprietary Nanophosphate™ technology to deliver previously unattainable levels of power, safety and life. The company is publicly traded.
BUSINESS QUESTION
A123 has had a variety of real estate challenges since the company was started in 2001. In the early days the company was primarily a research and development focused operation and had to conserve cash. The company needed to continue to expand its facilities to meet research needs but needed to do so in a cost effective way. More recently the company has transitioned beyond research and development, and required real estate and facilities worldwide to support expanding manufacturing and administrative needs. A123 needed a creative, smart and client focused real estate partner to help address a variety of ongoing real estate needs.
APPLIED BUSINESS APPROACH
Since 2001, T3 Advisors has been working with the A123 management team on addressing the company’s real estate needs. T3 has successfully completed a variety of assignments throughout the U.S.
T3 has successfully managed over 800,000 Square feet (SF) of real estate projects for A123 including:
- Two long term 300,000 SF manufacturing sites outside of Detroit MI. In addition to site search and transaction services for this assignment, T3 conducted a multi- state search for A123 resulting in the procurement over $100 million in refundable tax credits from the Michigan Economic Development Corporation. The search included outreach to 5 different jurisdictions, initial evaluation of proposed locations, and a comparative summary that analyzed both incentives and real estate cost scenarios. This analysis provided senior management with an evaluative model to develop a “shortlist” of potential jurisdictions. T3 then arranged site visits and meetings with senior government officials. Once the state was selected, T3 organized and coordinated the final local site search and incentives program with management and local officials.
- 100,000 SF headquarters in Waltham MA. In addition to site search and lease negotiation/transaction services, T3 is acting as owner’s rep/project management on the renovation of the building.
- 60,000 SF grid manufacturing facility in Westborough MA. T3 managed the site search and lease negotiation for this manufacturing facility.
"T3 has been working with A123 since the company was founded in 2001. Their work included the site selection and negotiation for our first headquarters in Watertown, MA and our subsequent locations. From the beginning, T3 has successfully negotiated a number of deals for A123, including our new 100,000 sf headquarters in Waltham, MA as well as over 600,000 sf of manufacturing space in Michigan. T3 also provided advice in our successful economic incentive negotiations with the state of Massachusetts. T3 has been a valued advisor for many years and I look forward to our continued work together.”
~Eric J. Pyenson, VP & General Counsel, A123 Systems
