Syracuse Research Corporation

Syracuse Research Corporation (SRC) had three years remaining on a thirty-year lease and occupied approximately 59,000 sf. Their twenty seven year old building had grown functionally and mechanically obsolete. SRC is a hi-tech, 501C3 "not for profit" firm that had a complicated and unique requirement for a minimum of 75,000 sf with the ability to expand to 100,000 sf. Corporate growth along with changing technology forced SRC to look for a facility that could handle their potential explosive growth, improve corporate identity and provide a state of the art facility for the hi-tech company. SRC's goal was to own their building, however, business practice required them to lease instead of purchase.

Objectives:

• Improve corporate identity along with client accessibility
• Provide for immediate expansion as well as anticipated future growth and satisfy an extensive list of unique requirements including: clear of overhead power lines; 25 kw UPS backup system; lighting protection system; UL alarm system; clear of interfering radar, television and radio transmitters
• Remain easily adaptable to SRC's constant internal modifications
• Reduce occupancy costs and maximize the value of a twenty-year lease term

Process:

• Performed a comprehensive market review for suitable alternate locations contacting all landlords and tenants for potential solutions and forwarding RFPs to select facilities
• Created a competitive environment to convince the present landlord that SRC was committed to finding an alternate location and began extensive negotiations with each potential finalist

Results:

• The Bell Group identified a facility with a tenant that had three years remaining on their lease. The company planned to relocate to another state but was not willing to go public with the relocation announcement. The Bell Group structured a deal for the tenant to buy out of their lease obligation while simultaneously convincing the landlord to sell the property for less than the remaining mortgage balance.
• An industrial development agency (IDA) took title, issued non-taxable bonds and leased the facility to SRC for twenty years (satisfying the leasing requirement), with the ability to purchase the facility at the maturation of the bonds for $1.00
• Savings received by SRC from the initial Request for Proposal responses to the final purchase / lease transaction was over $2,462,000

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