Build-To-Suits / Developer Transactions:
Corporate Partners works closely with corporations and developers on opportunities where a facility is being built to suit the user’s specific needs. These transactions can be structured to be effective before commencement, during, or after completion of construction. If construction has not commenced, Corporate Partners participates in the structuring of the lease, approving the building location and design, and providing a forward purchase commitment. Corporate Partners has the ability to provide such forward commitments to acquire multi-property and multi-location portfolios, along with varying credit and lease terms. Corporate Partners provides:
The result of the forward take-out commitment is an efficient and cost effective structure that eliminates interest rate risk or hedge costs and exposure to real estate market cycles during the ownership period.
Factory 2-U National Distribution Center (San Diego):
Challenge: Orix Real Estate Equities, Inc. sought a sale of a 600,000 build-to-suit facility that it developed for the national distribution center of Factory 2-U, a discount general merchandiser. Construction had not been completed and the tenant had not moved in to the facility. Orix required a commitment to close in a three week timeframe.
Solution: Corporate Partners reached a letter of intent with Orix within one day and provided for the required quick close. Corporate Partners re-structured the tenant’s Letter of Credit to correct the structural problem .
Outcome: Corporate partners closed the purchase in the Seller’s required timeframe and secured attractive permanent financing.
Safeco Insurance Company of America (Atlanta):
Challenge: Safeco decided to consolidate its multiple Atlanta-area offices into a single location for operating efficiency. Safeco joined with Atlanta-based developer Taylor & Mathis to create a state-of-the-art 157,500 square foot office building in the Northeast submarket off Interstate-85. The developer sought to sell the asset prior to completion of construction and occupancy.
Solution: The principals of Corporate Partners structured a purchase commitment after the developer's alternative take-out failed to materialize. The build-to-suit transaction contained several provisions designed to meet the special needs of the tenant including tenant responsibility for build¬ out of improvements. Corporate Partners' control of capital and efficient closing process helped to earn the confidence of the developer and the tenant.
Outcome: The transaction closed on time with 100% equity. After closing, long-term financing on the property was arranged.
Challenge: Lincoln Properties, in a venture with an investment advisor sought to liquidate ownership of a newly constructed two building campus in Austin, Texas, leased to Dell Computer with only 7 ½ years remaining on the lease. Dell was only occupying a small fraction of the 313,000 square feet and intended to sublease the balance. The Austin, Texas market had deteriorated and was experiencing high vacancy rates and reduced rents since the time the Dell leased had been executed.
Solution: An off-market purchase was structured utilizing interim debt financing and 65% interim debt financing.
Outcome: The $64 million transaction closed on-time as scheduled.
Kohl’s Department Store:
Challenge: A regional developer of a Kohl’s Department Store sought to sell the property but retain the development rights on an undivided out-parcel interest. The state subdivision laws did not allow for a sale of the undivided interest without a formal subdivision.
Solution: A purchase was structured providing the developer with the right to pursue the subdivision and purchase the out-parcel upon completion of the subdivision.
Outcome: The $9.3 million transaction closed as scheduled and the developer subsequently exercised its purchase option after successfully subdividing the property.