You are on page 1of 4

About Us DESCO Services

The DESCO Group DESCO provides a turn-key experience to ensure ease and continuity for our clients. Our firms broad spectrum of resources allows us
to deliver everything your project needs from beginning to end.
DESCO stands for Don and Ed Schnuck Company, after the entrepreneurial
brothers who built the Schnuck Markets grocery chain into one of St. Louis
largest privately held companies.
Founded in 1993 and led by CEO Mark Schnuck, DESCO provides a full-service Brokerage Due Diligence Tax Incentives
experience including comprehensive development, construction management, DESCO offers the expertise necessary to We do our homework to make sure you What makes DESCO stand out is our
investment management, property management and brokerage services. With a creative approach to real successfully accomplish complex get the right property for your needs. By command of tax incentives. From the
estate development, DESCO delivers visionary real estate solutions. This creativity has proven successful transactions encompassing acquisition, maintaining a thorough approach to due local to state and to a federal level, our
disposition, tenant representation, build- diligence on the front-end we protect wide knowledge of tax incentive
in reaching strategic objectives and maximizing financial returns.
to-suit, sale/leaseback, site evaluation, your investment in the long run. We programs allows us to select the best
Our innovative development projects have touched many sectors of the real estate market, construction management and consulting perform an investigation into environ- combination that fits your project. We
including historic landmark renovations, regional shopping centers, medical office space, office parks services. Our brokerage team has the mental, geotechnical, governmental, regularly deliver the most cost-effective
talent and experience to take on projects legal and more. You can focus on your results that will save Anchor money in
and urban/suburban renewal projects.
throughout the Midwest and the country. business while we handle acquisitions, both construction and operating. Our
With a portfolio of more than 6 million square feet of buildings and $700 million in value currently With our strong industrial experience in survey and zoning matters, inspections, recent and expansive experience with
under management, DESCO also has over two million square feet under development, with projected brokerage and our affiliation with NAI- governmental review, financial incentives will be vital in the due
Global, we create value for our clients considerations and closing actions. diligence and site selection phase as we
development costs totaling over $200 million.
through our unique industrial market seek to be able to maximize all
knowledge, sophisticated financial financial opportunities.
analysis and strong negotiating skills.

Design Value Engineering Construction Management


NAI DESCO Commercial We will work with you to ensure that the At DESCO, value engineering is NOT We make sure the project stays on track
In order to maximize our brokerage services, DESCO design matches your vision and needs. about compromise or inferior construc- with firm but fair negotiated construc-
Using skilled architects and contractors, tion. Its about thinking critically and tion milestones and steady construction
Commercial was born in 2000. Mark Schnuck formed we bring together the operators detailed creatively to get great results for less updates to your management team. Our
the sister-company as a vehicle to engage DESCO in needs so you can focus on the big picture. money. Instead of eliminating features or interim milestone dates cover each fac-
third-party brokerage of office, industrial, retail and Our design will take into consideration reducing quality we use our experience tor of the project making it easy to track
investment properties. your spatial needs both short term and and ingenuity to come up with cost- progress and remedy as necessary. Our
long term and will incorporate special effective alternatives for all aspects of the Construction Management Teams
Soon, DESCO Commercial was accepted into the features that may be unique to project from initial site selection and extensive experience in manufacturing
worldwide New America International, Inc, (NAI) Anchor Packaging. design to building finishes. Successful allows us to engage Anchor in critical
network. This membership gives NAI DESCO access value engineering comes from parts of the decision making process but
to members and service providers in over 230 understanding every aspect of a project allows Anchor to stay out of the fray
so that we can find a solution that may and focus on operations. Problems will
offices in the United States and several key areas of Sustainability not only benefit Anchor from a arise but will be minimized thanks to our
the world. NAI DESCO currently has 25 brokers The DESCO Group is committed to construction cost standpoint but also from thorough front-end planning including
providing comprehensive commercial real sustainability on all of its projects. We do an operations ROI. contractor selection and AIA contract
estate services. not greenwash projects with fashion- negotiation. Our flexibility and problem
able trends but instead focus on what solving skills allow us to handle issues
Mark Schnuck leads this team of experienced really benefits both the environment and as they arise and to quickly implement a
commercial and industrial brokers in serving the City the bottom line. We strive to be simulta- recovery plan.
of St. Louis and 13 surrounding counties in Missouri neously environmentally conscious and
and Illinois. financially responsible. Our projects
include the first USGBC LEED Gold
retail project in the Midwest as well as
one of the first CO2 operated chiller
plants in a refrigerated warehouse
anywhere in the country.
Case Study : Project Pillar

Project Pillar is a 981,000-square-foot distribution facility that services 100 Schnucks stores in five states. The expansive development
nearly doubled the size of Schnucks previous total warehouse storage capacity. The facility employs an estimated 250-280 warehouse
Location : NorthPark, City of Kinloch, Missouri
workers, 140 drivers and mechanics, and 50 management employees.
NorthPark, the 550 acre premiere business park, is located east of Lambert St. Louis International Airport near the intersection of
Size : 981,000 square-feet
two major interstates.
Cost : $118,000,000
Located on an approximately 117-acre site in NorthPark, Project Pillar includes over 400,000 square feet of refrigerated storage, which
incorporates a 28 degree meat room and wet and dry produce rooms. The facility also contains 520,000-square-feet of dry warehouse
and a battery charging area to service 211 lifts.
Other structures on site consist of office space, a guard house, dispatch area, and a truck and trailer maintenance garage along with a
truck wash, and diesel fuel islands. The project construction features tilt-up panels, insulated metal panels, and a structural steel frame.
The site was designed with future expansion in mind.

Site Selection Tax Incentives Design Sustainability


After interviewing key stakeholders, NAI Desco compiled a list DESCO offered their client a comparison between tax incentives There is a direct correlation between time and the ability to The Desco Group strives for sustainable business and construc-
of potential sites that would meet the logistic and business needs available at NorthPark in St. Louis County, MO versus another influence project quality and total cost. Prioritizing design tion practices on all of its projects. At Pillar, we investigated any
of Schnuck Markets. Upon further analysis, sites were then site in St. Clair County, IL. upfront will pay off immensely during the project life cycle. For potentially negative environmental impacts of the project. We
eliminated and finally two sites were selected and put under example at Pillar, we challenged the space programming focused on keeping the project on track and on budget while still
The chosen site, NorthPark, yielded significant reduction in both
contract. information presented to us by Schnucks. As a result, we were being environmentally conscious.
the costs of construction and operation. Thanks to DESCOs
able to reduce the total cubic footage of the building which
innovative understanding of tax incentive programs, they were
Due Dilgence saved money in steel, fire protection and conditioning. We did The Project Team
able to discover alternative sources of funding for project costs.
not take the information supplied to us as a given but instead
Once both sites were under contract and the necessary confiden- we pushed to make sure our client was getting the best in both To produce Project Pillar, DESCO brought together a selection
tiality agreements were signed, DESCO performed a comprehen- Reduction in Cost of Construction of local architects and contractors to form an expert team. With
design and cost.
sive review of physical conditions that could impact the build- Sales tax exemption on construction materials vigilant construction management and thorough due diligence,
ability of the warehouse complex. At one site, for example, it through County Bonds. DESCO kept each team member on track to deliver project
was determined that the soil was so organic that over $1MM in Value Engineering needs while maintaining value engineering best practices.
extra soil stabilization would be needed to prepare the site for Bond financing for public or private infrastructure Industrial buildings need a lot of site work for their logistics
paving and building construction. Additionally, one site had a through MO BUILD. to operate properly. At Pillar there was a total of 116 acres of Architect and Landscape Architect : Forum
22 gas main running through the area where a building would earthwork and super miles of heavy duty paving. We challenged Contractor/Developer : Clayco
be placed and DESCO successfully pre-negotiated its relocation Reduction in Operating Costs the geotechnical engineer and the civil engineer to come up with
Civil Engineer : Stock and Associates
with the gas company to prevent project delays. Effective 10 year 50% real property tax abatement a new paving section that included more lime in the soil and a
through County Bonds. thinner asphalt section which saved the project more than Structural Engineer : Alper Audi
$1.1MM. Mechanical Engineer : Icon Mechanical
Effective 10 year 50% personal property tax abatement
through County Bonds. Electrical Engineer : Kay-Bee Electric
Construction Management Plumbing Engineer : G&W Engineering
Reduction in or rebate of withholding paid under
Missouri Works. Every project will have issues arise. How such problems are Fire Protection Engineer : Ahern Fire Protection
dealt with in terms of speed of information and brainstorming is Refrigeration Engineer : Innovative Refrigeration
Tax credits issued under MO Build.
essential to keep monetary and schedule impacts to a minimum.
At Pillar we insisted on interim milestones in the AIA contract
Sources of Funding Project Costs
with the general contractor and we base-lined their schedule with
Proceeds from sale of Super TIF Notes (assuming guaranty these milestones included. After working through the wettest
of certain wages by Pillar Tenant); OR receipt of payment June in Missouri history, we could see our late autumn milestone
on Super TIF Notes held by Pillar Tenant through 2022. dates were in jeopardy and assisted the general contractor with a
Proceeds from the sale of tax credits from Tax Credit re-sequencing of the site work so that we could focus on areas
for Contribution. that could be constructed while the other areas dried out. Our
low-ego approach to teamwork allows for cross-team
Funding from MO Build bonds issued collaboration so that everyone is ready and willing to come up
(infrastructure costs). with a new plan of action.
Meet the Team Meet the Team

Mark Schnuck Scott Sachtleben John Sheahan


CEO Senior Vice President of Development & General Counsel Principal / Lead Broker
After serving in a variety of Scott oversees and manages all John Sheahan has been active
positions at Schnuck Markets, real estate development in commercial real estate since
Inc., Mark became senior real initiatives and implementation 1987. As a member of the
estate officer in 1989. Then, on behalf of The DESCO Group. Society of Industrial and Office
four years later, Mark took the As general counsel, Realtors, John has completed
helm of the newly formed real he also manages the firms lease and sale transactions
estate company, The DESCO legal department. involving office, industrial,
Group. He took a corporate real Before joining DESCO, Scott retail, land and investment
estate department and trans- was a shareholder at the law properties. In his career, John
formed it into a full-service firm of Greensfelder, Hemker has completed over 730
commercial real estate & Gale, P.C. in St. Louis where transactions valued at over
development company. he practiced for 17 years with a $385 million dollars involving
In 2000, Mark created a focus on real estate, corporate, 10.6 million square feet and
sister-company, NAI DESCO. and securities law. 308 acres.
There he leads a team of experienced commercial and industri- Scott received his undergraduate degree from Southern Illinois Before coming to DESCO in 2000, John worked for the
al brokers in serving the City of St. Louis and 13 surrounding University Carbondale and his juris doctorate from Vanderbilt Johnson Group, a full-service real estate firm headquartered
counties in Missouri and Illinois. University. He is a member of the American Bar Association, Bar in St. Louis.
Mark graduated from Maryville University in 1980 with a Association of Metropolitan St. Louis, Arizona Bar Association, John graduated magna cum laude from
Bachelors degree in management and is a licensed real estate Illinois Bar Association, Missouri Bar Association, International Washington University.
broker in the states of Missouri, Illinois and Kansas. Council of Shopping Centers, Urban Land Institute, and Missouri
Growth Association.

Franklin Sears Randy Boettler David Melnik


Vice President, Design & Construction Project Executive Senior Financial Analyst
Franklin leads the Design & Randy brings years of David oversees the financing
Construction department for construction expertise to The activities of The DESCO
The DESCO Group. Franklin DESCO Group. With a client Groups portfolio. He is respon-
offers versatile expertise in con- list including Boeing, the City sible for debt portfolio manage-
struction with a concentration in of St. Louis, InBev, and Coca- ment, external lender relations,
open air shopping centers. Cola, Randy has successfully on-going financial analysis and
completed manufacturing and modeling, and development
Prior to DESCO, Franklin was
industrial projects ranging up to accounting and reporting for
employed by McEagle De-
$100 million dollars. complex projects.
velopment, a St. Louis-based
commercial developer. At Experienced in everything Prior to joining DESCO, David
McEagle, he was integral to the from renovation to full design was a Senior Account Admin-
completion of the WingHav- and construction, Randy works istrator specializing in Asset
en planned community with with DESCO to deliver value- and Valuation Services at NISA
projects including land develop- engineered quality on a large scale. Investment Advisors, based in St.
ment, senior living, hospitality, office, and retail. Franklin started Randy received his Bachelor of Science in construction Louis. There he was responsible for performing daily derivative
his career with Wyeth Pharmaceuticals, currently Pfizer, where management from the University of Central Missouri and mark-to-market calculations, directing and processing various cli-
he was involved in the development and construction of office, completed his graduate studies in civil engineering at ent events and optimizing clients collateral positions. Before that,
clean room, and lab facilities. Washington University. He is certified by the Design Build he was employed by Wells Fargo as a Senior Auditor specializing
Franklin graduated from the University of Massachusetts, Am- Institution of America. in the wealth, brokerage and retirement lines of business.
herst, earned his MBA from Washington University in St. Louis,
and holds a certification as a Development Professional from the
International Council of Shopping Centers.

You might also like