The Challenge:
The Robert Plan, a premier provider of insurance products and services, had the need to sell a building they owned that was occupied by one of their divisions, the Commercial Mutual Insurance Company.  Commercial Mutual was also interested in relocating because the space was simply too large for the 20+ employees on staff.  The challenge for Deegan~Sanglyn was to find a buyer for the commercial space as well as a better-fitting facility for Commercial Mutual at virtually the same time.

The Solution:
With no suitable space in sight for Commercial Mutual after an exhaustive search, bringing the sale of the existing building to a standstill, Deegan~Sanglyn proposed an alternative – a sale/lease back approach.

Commercial Mutual Insurance Company would consolidate their space in 60% of the existing building and sign a long-term lease.  This would allow Deegan~Sanglyn to market the building to investors who would find the long-term cash flow generated by Commercial Mutual attractive.  Making full use of the property’s location in a New York State Empire Zone, Deegan~Sanglyn was able to offer investors multiple tax advantages on the purchase of the building as well. 

The Results:
Commercial Mutual Insurance Company signed a ten-year lease on their space and Deegan~Sanglyn successfully closed on the facility with a group of investors. In a subsequent transaction, Deegan~Sanglyn located another tenant to occupy the approximately 40% of space Commercial Mutual did not need.
The Challenge:
When HMO Welcare filed for bankruptcy, KeyBank, NA took their property back in lieu of foreclosure.  One building contained 46,000 square feet and in another, 13,000 square feet, making a multi-tenant approach difficult.  The buildings were also centrally heated and cooled with one electric service, making it difficult for any investor to manage costs.  In addition,  the asset was uniquely designed to fit Welcare’s needs with a spider-like design, 200+ seat auditorium and other oddities that may not be appealing to prospects.

The Solution:
After reviewing the property and it’s potential applications, Deegan~Sanglyn decided to concentrate on end users for the property.  We marketed the property to the larger user pool – government agencies, not-for-profits, hospitals, medical users and other large corporate users. 

The Results:
Deegan~Sanglyn located a corporate user for the site within 8 months.  This was a user who could use the entire front building, and lease out the rear building to other tenants.  After resolving several planning board issues, the transaction was successfully completed.
The Challenge:
Fidelity National Credit Services initially contacted Deegan~Sanglyn to lease roughly 25,000 square feet of warehouse space for them in the rear of their building located in the Town of Ulster, NY.  In a quick turn of events, Fidelity National Credit Services then needed to have the asset off of their balance sheet by year’s end, and asked Deegan~Sanglyn to sell the building as quickly as possible instead.  In addition, the project was complicated by Fidelity’s desire to sign for a six-month leaseback agreement only, where most investors look for longer-term leases.

The Solution:
With pressure exerted from their corporate headquarters in Santa Barbara, California to affect a sale prior to fiscal year end so Fidelity could take some critical year end write-offs, we began our work.  Because of our active involvement in the commercial real estate market, we were already aware of a prospect searching for approximately 25,000 square feet of warehouse space willing to sign a lease with the purchaser of the building subject to his ability to close on the building.

The Results:
Two weeks prior to year-end, Deegan~Sanglyn successfully closed on the transaction with an investor who leased 25,000 square feet to a new user for the rear portion of the building.  Fidelity got the asset off their balance sheet by years end, and their short-term lease secured a place for them to wind down their business for 6 months.

www.deegansanglyn.com
845.334.9700
Fax 845.334.9100