BALLARD SPAHR ANDREWS & INGERSOLL

Summary  

Ballard Spahr subleased 22,000 SF of office space in a trophy building in downtown Washington, DC. They had outgrown their space, but wanted to stay in the building if the economics made sense. Furthermore, they wanted the opportunity to grow in the building through options if at all possible. Viable relocation options were identified, which helped to create leverage.

Results

• Structured a 38,000 SF prime lease at 10% below market.
• Secured the balance of the floor to accommodate their growth.
• Received abatement during the construction of the expansion space.
• Negotiated expansion options for approx. 15,000 SF
• Successfully subleased a portion of their excess space.

For more information, contact:
Scott Leachman
(202) 607-0050

Futures Industry Association

Summary  

FIA had outgrown their office space and wanted to secure growth space in their building if at all possible. They also wanted to make sure that the space would be designed to their specifications with minimal out-of-pocket costs for build-out, while allowing for as little disruption as possible.

Results

• Negotiated a long-term lease extension for approx. 10,600 SF
• Terms were below market with significant improvement package to meet their needs
• Secured growth space adjacent to their existing space along Pennsylvania Avenue
• Negotiated a rent abatement package to avoid additional costs during renovation of their offices
• Remained involved throughout lease negotiations to minimize disruption to client

For more information, contact:
Scott Leachman
(202) 607-0050

EMP GLOBAL

Summary  

EMP Global had occupied space that was inefficient and required too much renovation to justify the disruption associated with renewing their lease. They wanted to identify a good value in close proximity to their current location that could be designed for their specific needs.

Results

• Structured a 18,400 SF lease at 15% below market
• Negotiated a generous concession package that paid for almost all of their build-out costs
• This newly renovated Class A building was located on the same block as their former location

For more information, contact:
Scott Leachman
(202) 607-0050

INGLESIDE AT KING FARM CONTINUING CARE RETIREMENT COMMUNITY

Summary  

Ingleside at Rock Creek (DC) is one of the oldest continuing care retirement communities in the Washington, DC area. They, along with their sister community, Westminster at Lake Ridge (VA), decided to expand their mission in search of a new facility in Maryland. A site needed to be identified that could accommodate long-term growth to house upwards of 800-1,000 residents. Sites under consideration needed to have entitlements in place to mitigate the risk, and had to be located in a quality location.

Results

• Identified an 11 acre site at King Farm located in Rockville, MD
• Purchase price was 30% below market
• Project is zoned for 1.2M square feet
• Phase 1 (625,000 SF) is now under construction and will deliver January 2009
• Phases 2 and 3 have been designed for future growth needs

For more information, contact:
Scott Leachman
(202) 607-0050

PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD

Summary  

The Public Company Accounting Oversight Board (PCAOB) was working on an extremely tight deadline to identify up to 75,000 square feet of office space in Washington, DC for their new headquarters. The organization had to be fully operational in three weeks to meet guidelines stipulated by the Sarbanes-Oxley Act.

Results

• Structured a 48,000 SF lease at 15% below market.
• Negotiated for almost 50% more growth in 2 years at no additional carrying cost.
• All deadlines and preliminary budgets were met so that PCAOB was up and operational. This included voice and data infrastructure as well as furniture and computer installation.
• Oversaw the leasing of regional office space in major markets across the country.

For more information, contact:
Scott Leachman
(202) 607-0050

Tax Analysts

Summary  

Tax Analysts occupied office space in four buildings , two of which they owned. They had outgrown their headquarters building long ago, and had assembled almost 3 acres of land in Arlington, VA, for future development of a new headquarters.

We were asked to prepare a strategic plan and make recommendations for the optimal use of their real estate, since these holdings were by far their largest asset. After careful review with their Board, it was decided that the best course of action would be to sell the real estate for its highest and best use, and identify a new headquarters that could meet their future needs.

Results

• Sold the 3-acre parcel for 30% more than originally budgeted
• Purchased a new 81,000 SF office building at more than 25% below market
• Sold their headquarters at a premium, and negotiated terms that would allow Tax Analysts to stay in their space while their new headquarters was completed
• Negotiated terms to extend their existing leased space to coordinate with the delivery of the new headquarters
• Oversaw Project Management for the base building and interiors
• Oversaw Move Coordination of their headquarters
• In the process of leasing 31,000 SF of excess office and retail space to various tenants

For more information, contact:
Scott Leachman
(202) 607-0050

TRANSPORTATION SECURITY ADMINISTRATION

Summary  

Transportation Security Administration ("TSA") needed to procure approximately 500,000 square feet of office space in the Washington, D.C. area in a four month timeframe. TSA looked to the private sector to manage this requirement because of the severe time urgency. They required having a lease executed and partial occupancy prior to the end of the year, a timeframe less than four months.

Results

• Successfully completed a below-market 540,000 SF headquarters lease for TSA in Arlington, VA in under four months
• TSA was able to occupy over 150,000 SF within a month of lease execution
• First significant post-911 transaction completed in the market.

For more information, contact:
Scott Leachman
(202) 607-0050

Corporation for Enterprise Development

Summary  

CFED had outgrown their office space and wanted to find an office building that could provide ample flexibility for future growth and meet their budget parameters. They also wanted to make sure that the space would be designed to their specifications with minimal out-of-pocket costs for build-out. A more central location with easy access to Metro and amenities was a key consideration for their employees. Locations were identified in the Central Business District and East End that met these requirements.

Results

• 17,600 SF lease at 15% below market
• Class A building directly across from Metro Center
• "Turn-key" build-out designed for their operational needs
• 20% of additional growth space with rental abatement to offset 100% of subleasing costs
• Negotiated additional allowances to offset costs related to moving and cabling
• Remained involved throughout lease negotiations to minimize disruption to client

For more information, contact:
Scott Leachman
(202) 607-0050

MICROS SYSTEMS

Summary  

MICROS Systems wished to consolidate into a new headquarters facility in Maryland. They were housed in three locations in Beltsville, MD, one of which they owned. The sale of a capital lease as well as a sale leaseback were essential to complete the transaction. Moreover, terms had to be negotiated to enable MICROS to avoid paying double rent while a new headquarters was being constructed.

Results

• 250,000 SF lease in Columbia, MD
• Build-to-suit headquarters at 20% below market
• Option on a 100,000 SF building site for future growth at below market terms
• Secured a 20 acre site that was assigned to the developer at actual cost
• Sold a capital lease and their original headquarters (sale/leaseback)
• Restructured an operating lease along with the sale/leaseback terms to coordinate with the delivery of the new headquarters

For more information, contact:
Scott Leachman
(202) 607-0050