Under the deal's terms, TCC will manage Hughes' 12 million sf of real estate at 486 wholesale outlets in 38 states, including three million sf at 144 sites in Florida. The deal also grows TCC's Florida-based management portfolio to 47 million sf.
Hughes gets an opportunity to grow its sales volume by providing construction materials at all of TCC's developments. Founded in 1928, publicly traded Hughes distributes 350,000 products nationwide, generating average annual revenue of $3 billion.
"Strategically, it makes sense for us to form agreements like this where we can concentrate on our core business and receive a needed service," says Hughes president and CEO Tom Morgan. "Our relationship with Trammell Crow Co. has existed for several years and this step is evidence of the success we've had together."
Paul Ellis, a TCC principal in the North Florida region, expects the arrangement to benefit his clients immediately. "We expect this to be a 360-degree relationship and extend beyond the services engagement--one in which we will actively seek ways for our clients to save money by working with Hughes, while finding opportunities for Hughes to benefit from relationships we have with existing clients," Ellis says.
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