Assignment
In 2007, Jive Software was a rapidly growing software firm that was occupying 16,000+ SF at the neighboring Loyalty and Hamilton Buildings in Portland’s CBD. They were spread across five different floors in a very inefficient layout. Pacific Real Estate Partners, Inc. was hired to secure a minimum of 30,000 SF of contiguous space in a cool, creative space in Portland’s CBD that was cost effective and well located, as well as subleasing Jive’s current space which had three years and $700,000 remaining obligation.
Challenges
In the Fall of 2007, there were very few “real” options that met Jive’s stated needs, making it imperative to keep leverage on all three final choices. PREP engaged the Portland Development Commission, the City of Portland, and other public shareholders to maximize Jive’s leverage. Simultaneously, Pacific Real Estate Partners, Inc needed to sublease Jive’s current space to reduce their exposure to double rent.
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Results
Jive leased 37,000 SF in the Federal Reserve Building, including a dynamic 9,200 SF penthouse with ample room for growth. Pacific Real Estate Partners, Inc. helped to negotiate very favorable financial terms for Jive, including an above market tenant improvement allowance, free rent, and flexible terms for future growth. In addition, the sublease as done at a premium with no tenant improvements and no free rent.
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