Bankrupt Client, Disposition, Approximately 75,000 RSF, Lease Renegotiation
ProTen's client was in bankruptcy and had 6 years remaining on a lease, but only required it for 3 years since it was an operation they planned to close down.
ProTen recommended it contact the building to try and reduce its remaining lease obligation and our client gave approval. ProTen was able to get the building to start negotiations by pointing out our client did not need the facility long term and it was evaluating its options as it related to a potential rejection. ProTen additionally stressed that the asset manager of the building also had our client as a significant client elsewhere in its portfolio.
The end result is the building agreed to reduce the lease term by three years at no cost to our client, ultimately removing 50% of the remaining rent obligation.
"ProTen is analytical, creative, and honest in their approach. This, combined with their expert knowledge of our situation and adept collaboration with our bankrupt attorneys, resulted in a highly strategic, cost-effective real estate solution that supported both our short- and long-term business goals." -Client testimonial
Distressed Client, Approximately 85,000 RSF Lease Disposition and Approximately 55,000 RSF Lease Consolidation
Our client was in severe financial distress, and needed to reduce expenses in order to help its financial standing; ProTen was asked to consolidate the most profitable portion (2 locations) of the business into less space in one location, with no out-of-pocket expenditures to the client.
ProTen recommended subleasing 85,000 RSF and a consolidation into 55,000 RSF with only increasing in size at that building by 23,000 RSF.
ProTen, in a tenant's market, disposed of the 85,000 RSF with just 2 years left on the lease to a financially strong subtenant and achieved a 75% recovery. ProTen then found a sublease in the existing building of the remaining location and was able to secure an extension direct with a very concerned landlord (because of the bankruptcy). The resulting transaction improved operational efficiency, dropped 61,000 RSF of space, and reduced our client's annual expenses by 35% including the loss on the sublease.
"ProTen leveraged each market to obtain the highest returns and most favorable contract language for us. ProTen's persistence during all contract negotiations resulted in our surpassing our goals for revenue generation on the subleases and rent reductions on all parts of the acquisition." -Client testimonial