Rio Rancho, NM
Titan Development completed the 218,000 SF, 3-story build-to-suit customer contact center for Hewlett Packard (HP) in December 2009. This project was constructed by Reid & Associates, LLC Design Builders in eleven months. Construction costs and lease rates for HP were guaranteed prior to the start of construction. No budget increases were realized and the project was completed 60 days in advance of the HP requested delivery date.
The facility is a Class A office building with a design and construction quality to attract and retain the best employees. The building features higher than average fenestration to promote natural light, efficient and flexible variable air volume HVAC system, highly efficient wall and roof insulation systems, and a landscaping and site design that promotes water conservation and reuse.
The facility, with a maximum occupancy of 1,400 employees, handles HP’s national sales and customer service operations and includes a cafeteria and fitness center. Titan led the coordination of state and local municipal approvals, industrial revenue bonds, ground lease execution, and construction performance guarantees.
Titan successfully financed the HP build-to-suit in the 4th quarter of 2008 when the capital markets had all but shut down. Titan leveraged local banking relationships as well as the New Mexico State Investment Council to structure $28M in construction debt for the project. In 2010, Titan refinanced the project using a credit tenant lease debt structure by selling bonds to TIAA-CREF.
The total project cost of $63M was constructed with $32M in debt, $10M in Titan equity, and $21M in state and city incentives and HP tenant improvement contributions. Titan is responsible for the property management of the facility. Titan retains ownership of this building and has structured the debt for a long term hold.