Transaction Process and Timeline

Phase I: Purchase of Land and Lease Documentation

Initial Meeting with Operator

  • Establish transaction goals
  • Execute Letter of Intent

Site Selection (30-60 days)

  • Operator and First Beverage analyze and tour potential site locations
  • Determine final site location

Lease Documentation (21-30 days)

  • First Beverage and Operator negotiate and execute definitive lease document to be effective upon completion of warehouse facility
  • First Beverage and Operator negotiate and execute definitive work letter to govern specifications of warehouse construction
  • Annual warehouse rent determined on "yield" cost basis (as defined in work letter)

Project Team Selection

  • Operator selects preferred Construction Firm for design of warehouse
  • Operator and First Beverage select Project Management Firm for value engineering purposes and construction/budget oversight
  • Operator and First Beverage negotiate Gross Maximum Pricing (GMP) contract with Construction Firm

Purchase Agreement (21-30 days)

  • First Beverage submits Purchase and Sale Agreement to seller for purchase of land
  • Purchase and Sale Agreement executed

Escrow Period / Closing (30-60 days)

  • First Beverage performs standard third-party due diligence reports (Phase I, Survey, Title reports)
  • Closing typically occurs 30-60 days after executing Purchase Agreement

Total Transaction Time for Purchase of Land and Lease Documentation: 102-180 days

Phase II: Construction

Design and Pricing Phase (60 days)

  • Operator and First Beverage determine budget and specific design and layout of warehouse
  • Construction Firm completes civil, architectural, structural and MEP drawings and submits cost estimate

Permitting (approx. 60 days)

  • Includes planning commission review, design review board, city council review (if applicable), application for grading and building permits

Shell Building Construction (approx. 180 days)

  • Lay footings and foundation, underslab plumbing and electric, form, pour and erect tilt panels, roofing, electrical, plumbing, cooler refrigeration

Site Improvements (approx. 180 days)

  • Install sanitary, sewer, water and fire lines, install curbs, landscaping and irrigation, concrete and asphalt paving
  • Site improvements performed simultaneously with shell building construction

Office Finishes (approximately 30 days)

  • MEP overhead rough-in, frame walls, hang and finish drywall, install ceiling tiles and flooring, cabinetry, plumbing fixtures and office specific finishes
  • Project Completion

Total time for Design, Pricing and Permitting: approximately 120 days

Total time for Construction and Site Improvements: approximately 180 days

Total time: approximately 300 days (10 months)