Lincoln Property Company Helps Client Shed Lease Burden – Translating to Significant Savings
After successfully brokering a deal on behalf of Printpack to terminate its lease in Farmingdale, N.Y., Lincoln has been awarded three similar assignments by the client.
Printpack, a flexible packaging manufacturer, vacated its New York plant in mid-2010 to move to Fredericksburg, Va., but was committed to pay rent at the unused space through 2013. Attempts to negotiate a buyout with the landlord were unsuccessful, as the depressed real estate markets have caused owners to be reluctant to terminate leases while the prospects for release are uncertain.
Strategically, Lincoln identified a broker contact in Long Island who had knowledge of a user with a space requirement closely matching the characteristics of the Printpack facility. Together, Lincoln and Colliers worked collaboratively to engineer a complicated transaction that provided the Owner with a long-term replacement tenant while providing Printpack with meaningful rent relief on the remaining term.
“We were able to create a win-win-win situation for the landlord, the incoming tenant, and Printpack,” said Denton Shamburger, Vice President of LPC’s Atlanta office. “It was a difficult, time consuming deal but we pride ourselves on finding solutions that benefit our corporate clients and utilizing our national platform to service clients across the country.”
Shamburger led the negotiations to get out of the lease and because of the success, Printpack has hired Lincoln for three additional disposition projects in New York, Indiana and Atlanta. These assignments cover five buildings and approximately 600,000 square feet of leased space.