At a Glance: Two International Group
§ Location: Portsmouth, NH
§ Line of business: Commercial real estate development
§ Challenge: Finding permanent financing for commercial properties
§ Merrill Lynch solutions: Commercial Real Estate Financing, WCMA account
Two International Group LLC is at the forefront of commercial development in the Pease International Tradeport in Portsmouth, NH. What was once the sprawling Pease Air Force Base on 4,250 acres has been transformed into one of New England’s premier business and industrial parks. When Dan Plummer, president of Two International, financed his office buildings there through Merrill Lynch, he never looked back.
Service on site
Dan Plummer knows his way around commercial real estate, having been involved with it for over 35 years. Since the company was founded in 1997, Two International has been pooling the experience of a select team of professionals to develop and manage high-end office space in this park-like setting. The Group’s tenants have convenient access to the excellent air, rail and shipping facilities of Portsmouth, while benefiting from their location in a Foreign Trade Zone.
“We do everything, from design through development and leasing,” said Plummer “We're personally involved every step of the way.” The Group maintains offices right on the site, accessible to tenants on the first floor of One New Hampshire Avenue. That way, Plummer stays in close contact with his tenants. These include several small businesses, whose owners and managers Plummer considers friends. “If somebody has a question or a problem, I want to be there to solve it,” he said. Two International is unusual that way among other developments at the tradeport. It pampers its tenants with attention. Amenities might include serving ice cream on hot summer days, or hosting scavenger hunts and delivering Thanksgiving pies. The Group even hosts an annual fall luncheon and a spring breakfast. They want to work with tenants individually and meet their needs.
The right lender
Dan Plummer recognizes this kind of attention to detail when he works with others to help him build the business. A couple of years ago, he sought permanent financing for three commercial buildings that were built with construction loans from a local bank. He remembered Financial Advisor Dan Gordillo (Portsmouth), who had been stopping by regularly just to touch base. “I liked the way he presented himself,” Plummer said. “No high pressure.”
Plummer invited Merrill Lynch to bid on the loan. Working with a team, including Finance Manager Edward Onofrio, Vice President of Business Financial Services Inc., and Chris Haynes, a Director of Merrill Lynch Commercial Real Estate, Gordillo was able to offer Two International a competitive bid. Complex tenant issues were involved. “Getting a handle on the 300-page regulations on Air Force leased land complicated things,” said Plummer. The Merrill Lynch team wanted to include language that would protect the borrower.
When a competing lender offered a quicker decision with no provisions, Plummer withdrew from Merrill Lynch. But at settlement, the lender wanted more time to work through the issues that Merrill Lynch had already turned up. That was it. Plummer went back to Gordillo and his team and worked through the issues that would complete the financing. Plummer, who wanted to see the people he was dealing with face to face, met with the team. “They were very straight with me,” said Plummer, who was impressed with their no-nonsense due diligence.
Besides the team's attention to detail, Plummer chose Merrill Lynch for its competitive rates and non-recourse financing. “Most banks won't offer non-recourse,” said Plummer. It would allow his company to invest in new projects and grow its portfolio, with knowledge of its cash flow requirements for the next ten years.
Looking ahead
Since being approved for the financing, Two International has returned to Merrill Lynch Commercial Real Estate again two more times and has been approved for a fixed-rate commercial real estate loan with 10-year terms and 30-year amortization. The company also has a Working Capital Management Account® (WCMA® account), a central asset business account that integrates other financing with investment and cash disbursement services. The trust built in the first transaction was enough to convince Plummer to focus on Merrill Lynch as Two International’s primary lender. With 98% of the office building spaces leased, Dan Plummer sees that his attention to detail counts. He gets the same attention from the team at Merrill Lynch.
The client's testimony is his own experience and may not represent that of others. It is not indicative of future performance or success.
The Working Capital Management Account® is a product of Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer, not a bank, and the WCMA account is not a bank account. Banking services are provided by licensed banks or by third parties through licensed banks. Financing linked to the Working Capital Management Account is offered through Merrill Lynch Business Financial Services Inc., 222 North LaSalle Street, 17th Floor, Chicago, IL 60601 – California Loans made pursuant to a Department of Corporations California Finance Lenders License.