Assignment
Pacific Real Estate Partners was chosen to exclusively represent The Cobalt Group, a privately held company wholly owned by Warburg Pincus, to re-align their facilities with their business plan. Our intensive research and analysis methodologies provided unmatched detail in charting the course for a successful negotiation strategy.
Objective
Secure near-term rent relief and a long term commitment based on current market conditions for their Seattle Headquarters.
Secure sub-tenant for their Austin, Texas facility to reduce facility overhead.
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Challenges
Cobalt's Seattle lease expiration was more than two and a half years away. The owner had the building financed under a conduit loan based on peak rents which limited the landlord's ability to modify the existing lease.
The Austin market vacancy rate was above 30% with very few tenants looking for space. The space Cobalt wanted to sublet was under a master lease from another tech company. The one tenant that fit the available space was in discussions with the building’s landlord who would ultimately have to bless this sub-sublease.
Results
By developing a detailed market analysis and probable leasing scenarios, we demonstrated the value to the landlord of working with Cobalt now by providing significant near-term capital relief in exchange for a longer-term lease. In addition to the capital relief, the landlord agreed to reduce monthly parking charges, provide additional hours of building operation at no charge, and reduce the square footage in the future.
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