M&R Concentrates Operations in 320K Space

CHICAGO—M&R Printing Equipment has just become the latest company in the Chicago region to consolidate operations even as it plans to significantly expand capacity. The company is the world's largest manufacturer of screen printing presses and equipment for the graphic and textile industries, and has just signed a 14-year lease of a 319,885 square foot building located at 440 Medinah Rd. in suburban Roselle. The facility is part of a 19-acre, 480,885 square foot, two-building campus owned by TA Realty. Value of the term rent is more than $19.2 million.

“Naturally, the main reason for consolidating is a positive impact on the bottom line,” Jeff Blake, the senior vice president with Paine/Wetzel TCN Worldwide that represented M&R in the transaction, tells GlobeSt.com. But for M&R, a local, closely-held firm, keeping its workforce together and adding employee amenities were equally as important as the dollars saved through efficiency.

“They were able to retain almost all of their employees,” Blake says, many of whom are highly-skilled long-term employees, difficult to replace. He attributes this to the new location's proximity to the Elgin-O'Hare Expressway, which makes it an easy drive for those who live near the company's location in Niles.

TA Realty was represented in the lease negotiations by executive vice presidents Dan Leahy and Eric Tresslar of NAI Hiffman. George Weems, of Coman and Anderson PC represented TA as its real estate attorney. M&R was represented by house counsel Roger Herdrich.

The 30-year-old firm will consolidate two Chicago-area manufacturing locations and their corporate headquarters from Glen Ellyn and Niles. M&R & TA have already started build-out improvements that include: expanded office and employee amenities, increased employee parking, additional power distribution and other manufacturing improvements.

"Cap rates are so low that landlords can make concessions now that they may not have agreed to several years ago," Blake adds, which is a big help to companies like M&R that want new facilities. "But this is also a good deal for the landlord because they achieved increased residual value from a stable tenant like M&R for a 14-year term."

Richard Hoffman, president of M&R expects the efficiency created by this consolidation will “double the company's manufacturing capacity by January.” The company will immediately relocate about 400 high quality manufacturing and engineering jobs to Roselle with another 200 potential jobs projected in the future.

Patrick Watkins, community development director, Natalie Engel, economic development coordinator, and Matt Fitzgibbons of the Village of Roselle assisted the principals in coordinating the project.