Reno, Nev. - Dermody Properties (DP) and United Construction Company (UCC), announced today that they have finalized transactions with Philadelphia based Urban Outfitters, Inc, (Nasdaq: URBN) to develop and build Urban Outfitters' Western United States Internet Fulfillment Center in Reno, Nev. Urban Outfitters' expansion into northern Nevada and the new construction project is estimated to create a total of 655 jobs through direct and indirect job creation. Urban Outfitters, Inc., is an innovative, lifestyle-focused specialty retail company operating under the Anthropologie, BHLDN, Free People, Leifsdottir, Terrain, and Urban Outfitters brands.
The 655 jobs are comprised of the following: The project will create 160 direct full-time construction jobs over the period of a year, and an estimated additional 120 related manufacturing, wholesale/retail and service jobs, using industry standard multipliers for calculating indirect job creation. Also, Urban Outfitters intends to create 150 direct full-time jobs to staff the facility once the center is complete with as many as 225 additional new manufacturing, wholesale/retail, support and service jobs anticipated to be created as part of the indirect economic impact.
"For over 32 years, and through many economic cycles, Dermody Properties and United Construction have been the foremost development and construction team that continues to take the economic risk to bring companies to the community, create jobs for Nevadans and create a tax base that supports the local economy, including our schools, "said Michael C. Dermody, Dermody Properties Chairman and CEO, "We are honored to be part of this latest effort to continue to bring companies that bring economic vitality to our community."
As a team Dermody Properties and United Construction has:
• Completed over 19 million square feet of facilities in Nevada
• Each year, for over 32 years, created an average of 150 direct full-time management, support and construction jobs
• Built properties that have contributed over $90 million to the local property tax base over 32 years, which in turn under the regional tax structure, has contributed nearly $30 million to fund local education
• Helped bring over 250 new companies to the northern Nevada
The 462,720 square foot Urban Outfitters facility, designed to be USGBC LEED Silver Certified, will be located at 12055 Moya Boulevard on 38.34 acres of development-ready land in the Dermody Properties Silver Lake Business Park. Urban Outfitters purchased the land from Dermody Properties for an undisclosed price. The Phase 1 building will have over 450,000 square feet of warehouse space, over 10,000 square feet of office space, automated material handling systems and a 24/7/365 data center. A future Phase 2 expansion will increase the facility to 895,360 square feet.
United Construction will begin work on the project immediately, complete the building envelope by November 2011, and complete the facility by June 2012.
The total investment by Urban Outfitters for the development, improvements and construction in the region is estimated to be almost $60 million, generating an incremental $4 million in taxes annually, including more than $3 million in local taxes. Of that, an estimated 31 percent will be new funds that benefit the Washoe County School District.
The Dermody Properties/United Construction team that worked with Urban during the process included Michael Dermody, John Atwell, Dermody Properties COO,; and from United Construction, Craig Willcut, President and CEO; Michael Russell, COO; Mike Thomson, Design Manager, Dan Westman, Field Operation Manager and Robert Schenck, Senior Estimator. Also instrumental in assisting Urban Outfitters were Chuck Alvey, Stan Thomas and Paul Kinne of EDAWN (the Economic Development Authority of Western Nevada. Brokers involved in the transaction were Rick Chancellor of McDevitt Company of Santa Monica, Calif., and Eric Bennett of CBRE, of Reno.
The Dermody Properties/United Construction team also requested and received the assistance of Nevada Governor Brian Sandoval in courting Urban Outfitters. True to Governor Sandoval's commitment to assist in economic development and job creation in whatever ways possible, he personally called David Ziel, Chief Development Officer of Urban Outfitters, to help convince the company of the benefits of doing business in northern Nevada.
"I am pleased to welcome Urban Outfitters to Nevada," said Governor Brian Sandoval, who helped announce the company's expansion to northern Nevada at a press conference held at United Construction in Reno today. "I'm also very proud of the work of Dermody Properties and United Construction to help bring this outstanding company to our region. They truly share my commitment to economic development and creating new jobs for Nevadans, and I'm glad to have been able to assist in encouraging Urban to choose our state."
"The unique structure of a development company and construction company partnership brings multiple layers of benefits to the customer," said Atwell of Dermody Properties. "Because the developer and the contractor are both supporting the transaction, it protects the customer's final investment in the project. The building will also be LEED Silver Certified, which provides significant tax benefits to the client."
"The building design reflects Urban Outfitters' cutting edge culture and features an architectural look and feel not seen locally before," said WIllcut of United Construction. "We studied them as our prospective customer, and understood - and then delivered - what they needed and wanted for their major expansion here in the West... just as Urban Outfitters is known for successfully understanding and meeting the desires of their customers."
"In these still-tough economic times in northern Nevada, Urban Outfitters is making a significant investment in our community. Urban's David Ziel and his team of professionals have been wonderful to work with, and together we've developed a terrific building program and facility for Urban Outfitters' Western U.S. Internet Fulfillment Center. We look forward to our continued collaboration with Urban Outfitters for this project and beyond, and sincerely welcome Urban Outfitters to our community here in the Truckee Meadows, " added Russell of United Construction.
Dermody Properties, United Construction and Urban Outfitters plan an official groundbreaking ceremony on June 8 at 10 am.
About Dermody Properties
Dermody Properties is a privately held national industrial real estate development company. Founded and headquartered in Reno, Nev., it has regional offices in Portland, Ore., Philadelphia, Penn., and Chicago, Ill., as well as property holdings in Las Vegas, Nev., and Savannah, Ga. Over the last three years, DP Partners has developed and purchased more than 4.5 million square feet and leased approximately 1 million square feet annually. Over its 50-year history, the company has developed and leased more than 35 million square feet of high quality industrial/distribution facilities to many Fortune 500 companies and other well-respected firms. . They are consistently ranked among the top 10 private developers nationwide. In 1988, company leadership created the Dermody Properties Foundation, which is managed by the employees of the company to provide charitable support to the communities in which they do business. To learn more about Dermody Properties/DP Partners visit www.dermody.com.
About United Construction
United Construction is one of Nevada's leading design/build and construction services firms, providing more than 32 years of best-in-class services to a wide variety of customers in the western United States. United Construction's portfolio includes more than 35 million square feet of successful building projects, completed for both public and private sector customers. For more information, please call Michael Russell at (775) 858-8090 or visit their website at www.UnitedConstruction.com.
About the Team of Dermody Properties and United Construction
Dermody Properties, a local family business established in Reno in 1960, has grown into one of the premier private industrial development firms in the nation. Under Michael Dermody's leadership, the company increased its focus on customer service and created a unique platform of bringing the developer and contractor together to better serve the client. In 1978, Michael Dermody and Tony Taormina formed United Construction Company, which was the foundation of today's quality and customer service organization that has lasted over 32 years. Both companies owe a large part of their success to three groups of people: the talented and committed employees of both companies, local subcontractors/vendors and our customers.