Lee & Associates Negotiates 750,000 SF Industrial & Office Leases for HelloFresh
OVERVIEW
- Lee & Associates New York City and Lee & Associates Dallas/Fort Worth worked collaboratively to successfully complete transactions for HelloFresh across multiple markets, including Grand Prairie, TX; Dallas, TX; New York, NY; Brooklyn, NY; Boulder, CO; and Swedesboro, NJ.
“We are thrilled to be expanding our operational footprint in the Dallas-Fort Worth metro region, a highly effective logistics hub as demonstrated by our existing Grand Prairie distribution center," said Uwe Voss, CEO of HelloFresh U.S. "This new facility bolsters our already strong presence in the region and further supports HelloFresh U.S. growth plans as we continue to invest in our facilities, our people and our technology to provide superior service and delicious meals to new and existing customers."
For more information regarding this case study, please contact:
JUSTIN MYERS
Executive Managing Director/Principal
O (212) 776-1281
jmyers@lee-associates.com
DENNIS SOMECK
Executive Managing Director/Principal
O (212) 776-1270
dsomeck@lee-associates.com
TREY FRICKE
Co-Managing Principal
D (972) 934-4010
tfricke@lee-associates.com
The Client
HelloFresh is a German meal-kit company based in Berlin. It is the largest meal-kit provider in the United States. They also have operations in Australia, Canada, New Zealand, and Europe, including Germany, Austria, Switzerland, Belgium, The Netherlands, Luxembourg, France, Italy, Ireland, Spain, Scandinavia, and the United Kingdom.
The Challenge
Our Lee & Associates New York City and Lee & Associates Dallas/Fort Worth offices navigated a range of complex real estate challenges, including short-term distribution needs, specialized facility requirements, and lease negotiations across multiple markets:
- Dallas/Fort Worth Distribution Center: The client required short-term space to accommodate excess capacity, with specific cooler and freezer storage needs.
- New York City Office Space: The client needed to terminate their current lease, sublease the existing space, and secure a new headquarters with a fully equipped test kitchen—while overcoming strict NYC venting regulations.
- Swedesboro, NJ Expansion: To support growth, the client needed to expand into the adjacent space within their existing facility.
Our Approach
Through strategic market analysis, diligent negotiations, and expert problem-solving, our teams successfully delivered tailored real estate solutions across multiple locations:
- Dallas, Texas: Secured a 375,000-square-foot distribution center to accommodate at least 700 vehicles, ensuring optimal operational efficiency.
- New York City: Conducted a comprehensive analysis of NYC venting requirements to identify a space suitable for a full test kitchen. Additionally, facilitated the sublease of HelloFresh’s 22,000-square-foot space by securing two credit tenants following their headquarters relocation.
- Brooklyn, New York: Identified and leveraged a one-time termination provision to successfully exit the existing lease.
- Swedesboro, New Jersey: Closely monitored an adjacent site for over a year, ultimately securing the lease for the adjoining property to support expansion.
The Outcome
By leveraging the combined expertise of our Lee & Associates New York City and Lee & Associates Dallas/Fort Worth offices, we achieved the following successful outcomes:
- Grand Prairie, Texas: Short term space was needed for excess capacity for DFW 180,000 SF distribution center. The space had necessary cooler and freezer capacity.
- Dallas, Texas: Our team located a 375,000 SF distribution center that accommodated 700-900 cars. They negotiated a long term lease with significant tenant improvement and government incentives.
- New York, New York: 44,000 SF HQ which accommodated a test kitchen despite strict NYC venting requirements. Negotiated full build to suit deal. Negotiated two 11,000 SF subleases with credit tenants after HelloFresh’s relocation to 28 Liberty.
- Brooklyn, New York: Identified one-time termination provision to get out of current lease. Found space 2.5 times the current size at a significant rent reduction in a sought after building for 9,800 SF studio space.
- Boulder, Colorado: 9,950 SF warehouse & office renewal. Negotiated a favorable 3 year renewal on short notice that provided two (2) two year renewal options.
- Swedesboro, New Jersey: Monitored site for over a year in order to lease adjoining 85,000 SF property. Negotiated favorable long term extension/renewal of current space and expansion into the adjoining space for a total of 170,000 SF.