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SRC, Inc. | Syracuse, NY
Size: 101,000 SF
Sector: R&D and Government
Service: Tenant Representation
Freed from a constructive lease and saved $2.4 million in the process.
The Need
SRC had three years remaining on a thirty-year lease in a building that had grown functionally and mechanically obsolete. SRC is an independent, not-for-profit research and development company that develops solutions for the defense, environment, and intelligence industries. They had technically stringent requirements for their space. Changes in their industry and their company, along with advancements in technology, required SRC to look for a state-of-the-art facility that could handle their potential for explosive growth while projecting the image of an innovative high-tech brand. SRC expressed an interest in owning their own building, however, corporate governance required that they lease as opposed to buy.
BellCornerstone was hired to find a space to project SRC’s reputation for excellence, improve client accessibility, fulfill their need to periodically alter and adapt their space in addition to reducing their occupancy costs while maximizing the value of a twenty-year lease term.
The BellCornerstone Approach
BellCornerstone performed a comprehensive market analysis and sent RFPs to a narrowed list of suitable properties in addition to involving their current landlord in negotiations.
The Result
SRC’s new facility met their rigorous technical requirements and created an inspiring environment for cultivating innovation. BellCornerstone structured a deal that allowed the occupying tenant to buy out their lease obligation while convincing the landlord to sell the property for less than the remaining mortgage balance. The local industrial development agency took the title, issued a non-taxable bond, and leased the facility to SRC for twenty years with the ability to buy the facility for $1.00 once the bond matured. Over the course of the process, BellCornerstone saved SRC more than $2,462,000.