Pacon Manufacturing Corporation, founded in 1949, specializes in the development and manufacturing of wipes, pads, towels, and liquids for consumers and professionals. With a client base that includes Fortune 500 companies such as Clorox, Revlon, Johnson & Johnson and Burt’s Bees, Pacon has been a business leader for over 50 years. Pacon wanted to explore an expansion and relocation of its operations and manufacturing in the southeast region of the United States. They enlisted Cody Cress and Tyler Pegg with the CRESS Group at Coldwell Banker Commercial Sun Coast Partners.
Pacon Manufacturing faced several logistical challenges during its expansion project. Pacon’s business model did not include commercial real estate holdings and they needed to find a suitable location that offered a favorable business environment. Equally important were educational resources, culture, and a quality standard of living. If such a property in the Wilmington and Brunswick County area could be located, it would also be subject to strict environmental regulations, providing further obstacles to the project.
Cress and Pegg selected two properties that met Pacon’s needs – each were former boat manufacturing facilities and large enough to allow for expansion. The first choice, 100 Quality Drive, was under contract when they inquired about it; having sat vacant for almost a decade. The CRESS Group’s knowledge of the nature of these contracts and the obstacles to closing led them to request that the Seller contact them if the contract was terminated on that property. In the meantime they began working on the second alternative with Pacon.
Pacon’s business model would require a long-term lease if they did not purchase a building. After negotiations stalled with an investor in the alternate property, the CRESS Group received communication that the initial property at 100 Quality Drive was once again available for purchase. Thus contract negotiations between Quality Drive Partners Holdings, LLC and Pacon began.
Pacon had additional hurdles to overcome in the due diligence phase of this project. Independent research into the possibility of recognized environmental conditions (REC’s) relating to the property found that there were, in fact, documented REC’s. Cress and Pegg worked with the Seller’s legal team and found that a No Further Action (NFA) letter was in process and only needed approval from North Carolina Department of Environmental Quality (DEQ).
The CRESS Group was able to precipitate a collaboration between the Seller, Pacon Manufacturing, and NCDEQ to successfully resolve the environmental concerns. Within a week of initial contact with DEQ the NFA was issued and the contract could move forward. The property was purchased by an investment group with whom Pacon executed a long-term lease.
Pacon Manufacturing’s expansion project in Brunswick County, North Carolina, has yielded significant outcomes. The company’s investment of 30 million dollars has created 299 jobs in the region, stimulating economic growth and providing employment opportunities.