SUCCESS
SHARING
MODEL

SRC
SRC

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.

> Find a space to project SRC's reputation for excellence and improve client accessibility

> Provide for immediate expansion as well as anticipated future growth

> Satisfy technical 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

> Fulfill SRC's need to periodically alter and adapt their space

> Reduce occupancy costs and maximize the value of a twenty-year lease term

> Performed a comprehensive market analysis vetting properties against objectives

> Sent RFPs to a narrowed list of suitable properties, creating a competitive environment

> Involved their current landlord in negotiations, with the understanding that SRC would choose the location offering the most favorable terms

> Bell identified a facility where the occupying tenant was planning to move out-of-state, but had three years remaining on their lease. We 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

> An industrial development agency (IDA) took title, issued non-taxable bonds, and leased the facility to SRC for twenty years (satisfying SRC’s leasing requirement), with the ability to buy the facility for $1.00 once the bond matured

> Their new facility met their rigorous technical requirements and created an inspiring environment for cultivating innovation

> Over the course of the process, we were able to save SRC more than $2,462,000

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