Not-for-Profit Client, Approximately 40,000 RSF, Purchase Relocation
ProTen was hired by a not-for-profit client to find a facility to house their programs for the developmentally disabled for-profit fulfillment business. This client had worked unsuccessfully with another broker for almost two years before hiring ProTen. In most municipalities, their use of the facility often triggered the need for a special use or zoning change application consequently understanding the zoning restrictions was critical.
ProTen first investigated zoning in over a dozen municipalities. ProTen then researched buildings in those municipalities where the zoning would permit the use or allow our client to apply for a special use. The survey of almost 100 buildings produced several listed and off-market options.
ProTen uncovered a property which not only met our client's location needs, but also met its operational needs due to some favorable existing conditions. The building had just been acquired by a real estate investment trust (REIT) looking to lease the property and generate cash flow from its investment. ProTen, however, was able to convince the REIT to sell the building based on the soft leasing market. More importantly, ProTen successfully persuaded the owner to accept our client's zoning contingency and timeline, even though this zoning process added up to four months to the purchase timeline. The REIT had to write off the rent loss during the contingency period and also engineer a defeasance, since the building mortgage had been securitized. Our client received their zoning approval in concert with the REIT obtaining the defeasance. Our client opened their state-of-the-art facility and now serves an even larger base of clients.
"ProTen left no stone unturned in its search for our development center. We had given up hopes of finding something to purchase, but then ProTen found this unlisted property at the right time and price. We now have an amazing facility to deliver great programs to an even larger consumer base." -Client testimonial
Vintage Office Building, 220,000 RSF, Purchase Relocation
ProTen was charged with finding an architecturally significant office building in Chicago's Loop to house this client's many business and philanthropic endeavors.
ProTen searched buildings that both were and were not being actively marketed. We uncovered 101 alternatives that fit the purchaser's initial parameters.
We convinced the new owners of the prospective building to sell without directly identifying the purchaser. The owner had already commenced to convert the building to residential condominiums, but agreed to sell the entire building to our client instead.
"We hired ProTen because they do outstanding work and are discreet. Their reputation allowed us to purchase the building and keep our identity confidential until all business and contract terms were complete." -Client testimonial
Health Care Client, 45,000 RSF, Office Simultaneous Purchase & Sale
ProTen's client had signed a long-term, build-to-suit lease for this MOB but a pending merger made it unnecessary. The challenge was to eliminate the $22 million rent liability which included parent organization guarantees.
Instead of just subleasing the space, ProTen proposed leveraging the client's purchase option in their lease. ProTen found another health care organization who wished to buy the entire building. ProTen orchestrated a simultaneous purchase and sale transaction with closing designed to avoid obligations normally ascribed to sellers, after a buy-out was rejected by ownership.
ProTen delivered a $19 million relief of the client's rent obligation (an 86% recovery) and improvement of its balance sheet within a 4-month period.
"ProTen developed a strategic plan that no one internally or any other broker had envisioned. In implementing the plan expertly, ProTen was able to save us millions of dollars. Their advice, review, and handling all aspects of this transaction were invaluable." -Client testimonial