Brokerage Services Success Stories
91 Corridor Redevelopment
Rebuilding a post-war, post-aerospace corridor with job-generating manufacturing and warehouse users.
Challenge:
Revitalize an entire corridor of the 91 Freeway with new uses after Southern California's aerospace industry began vacating their locations. Create new job opportunities for the area's former aerospace workers left unemployed by the change.
Solution:
Voit's brokerage professionals, particularly Rob Socci, created relationships with the aerospace companies, becoming the leasing representatives who accomplished more than two dozen major transactions of up to 53 acres each. Voit also worked with the City to ensure that potential buyers were assisted with all available redevelopment programs.
Result:
Voit resold properties formerly owned by Northrop Corporation, Rockwell International, Boeing, and Hughes Electronics to revitalize the area. The City even provided job training to one of the new users in order to reach out to the local community to invigorate employment opportunities. The transformation was dramatic, and Voit’s professionals continue to work in that market as industry and warehouse uses and needs change over time.
AOL
Top search engine company opens Orange County headquarters in modern campus office building.
Challenge:
AOL engaged Voit to secure a new state-of-the-art facility for their growing Orange County division within a campus-like environment.
Solution:
Voit canvassed AOL’s requirement to numerous qualified landlords to create demand and, in turn, a very competitive negotiating environment. The Irvine Company’s newly developed University Research Park was selected as the perfect location. Nonetheless Voit proactively negotiated on sites owned by other large local landlords to further leverage AOL’s negotiating strength and extract every lease concession available.
Result:
AOL secured a new lease for a 62,000 square foot property valued at $9 million with very substantial concessions, including several months of free rent, an above standard tenant improvement allowance and, most importantly, numerous future expansion rights to accommodate their projected growth.
Applied Materials
118,000 square foot building sold to all-cash buyer in a declining market.
Challenge:
Provide a property valuation, then strategize and implement a rapid investment sale for a soon-to-be-vacant 118,000 square foot, two building, R&D campus in a declining capital market, with a short-term tenant lease.
Solution:
Voit implemented an open bid sale program with a minimum bid price. This created a virtual online war room that allowed the seller to interview and qualify potential buyers based on real-time knowledge that detailed each buyer’s level of interest, track record and capital source. The seller could then make an informed and fact-based decision on which buyer was most qualified.
Result:
Voit provided its client with a qualified, all-cash buyer and was able to close the transaction within the allotted time. The idea to sell this property via an online bid process turned out to be an optimal way to make sure the property was sold to the most qualified buyer, as well as be able to comply with the challenging time frames set by the seller. This $36.4 million property was sold successfully to Bixby Land Company, a private real estate investment trust company.
Cisco
National IT networking company expands Orange County division
Challenge:
Cisco required a local market expert to provide research, transaction and project management services to it’s Corporate Real Estate Director for an expansion of one of their Orange County divisions.
Solution:
Armed with Cisco’s requirement criteria, Voit submitted detailed requests for proposals to every local building owner, creating strong competition for Cisco. After identifying a short list of properties, Voit used this leverage to create competitive negotiations with several owners. This resulted in a lease of a new “warm shell” building with sufficient tenant improvement allowance for Cisco to custom build its space from scratch, creating far greater space utilization and reduced occupancy costs compared to second-generation space.
Result:
Cisco expanded into a larger, more efficient facility at 62,000 square feet, reduced its operating costs per employee and outsourced the project management process to a local expert, saving valuable company time and money.
ConAgra Foods
America’s leading packaged food company sells manufacturing site
Challenge:
Voit was requested to identify a qualified buyer with a two month time frame to acquire ConAgra's former Hunt Wesson facility, a 559,000 square foot food processing plant, which was surplus to requirements.
Solution:
Voit undertook an extensive networking exercise within CORFAC International and a comprehensive national marketing campaign to brokers and prospective buyers. Within sixty days, Voit identified a residential developer prepared to purchase the property “as is” and assume the cost and risk of securing entitlements for a change of use to residential. Voit then negotiated a sale of the entire 100-acre site at a price reflecting the “highest and best use” for the land.
Result:
ConAgra received a sale price far exceeding the fair market value for the 550,000 square foot property and the transaction was closed sooner than expected, enabling ConAgra to record the sale in its fiscal year.
Hewlett-Packard
Successful sale of 506,490 square foot property to all-cash buyer.
Challenge:
Sell a 506,490 square foot hi–tech warehouse property within 75 days. This $14 million manufacturing facility owned by Hewlett-Packard and located on 30 acres of land, needed to be sold to a qualified all-cash buyer in a short term sale and leaseback during a very challenging market.
Solution:
Voit understood this property provided potential tenants with above standard amenities that included 100% A/C facility, 21 KVA power, epoxy coated (ESD) floors, 25-35' ceiling height and ESFR sprinkler system. Voit used these amenities to entice prospective tenants to look at this property. Voit discovered a need to Overton Moore and pursued them and capitalized on the need for this property, as well as the desire for Hewlett-Packard to sell it immediately.
Result:
Voit was successful in selling this large property within 75 days. Voit’s sale of this half million square foot property was the largest short term sale, hi-tech property sold within the Silicon Valley since the same property was originally sold years earlier.
Knobbe Martens Olson & Bear LLP
Intellectual property law firm buys Class A building to fix long-term occupancy costs & allow for growth
Challenge:
Knobbe Martens was seeking a long-term real estate solution in a high-image building and an investment opportunity for the firm’s partners with the flexibility to allow their business to expand over time.
Solution:
After a detailed lease vs. purchase analysis, Voit targeted local developers for a Class A build-to-suit opportunity. A ten-year lease of a highly prestigious office tower was negotiated, with options to expand during the lease including an option to purchase. Voit subsequently negotiated to buy the building at significantly below fair market value.
Result:
The lease provided flexible and efficient expansion options to accommodate growth until it was time to exercise the purchase option. Buying the building immediately reduced Knobbe Martens’ occupancy costs and enabled them to control their overhead over the long term. The 225,000 square foot building now provides valuable investment income for the firm’s partners and any surplus space is leased to other tenants until needed.
Los Angeles Times
Strategically acquired multiple facilities accommodating high truck traffic.
Challenge:
Identify strategically located facilities that could accommodate high truck traffic for the Los Angeles Times, California’s largest newspaper company. Voit would need to find 12 separate locations throughout Los Angeles and Orange counties within 18 months. This totaled in excess of over 339,000 square feet. Voit also needed to secure landlord tenant improvement contributions that would not increase the tenant rent.
Solution:
Research Los Angeles and Orange Counties to find appropriate space. Voit researched and identified ideal property in Ontario, Chino, Pomona, Glendale, Pasadena and Fountain Valley. All of these locations met the objectives of the Los Angeles Times and Voit was able to negotiate rent that was under the approved budget.
Result:
Secured all properties that met the requirements of the Los Angeles Times within the allotted time frame. Voit negotiated significant landlord tenant improvement contributions without increasing tenant’s rent. The Los Angeles Times saved an average of 28% net rent at each site. Voit acquired over 339,000 square feet of total office space for the Los Angeles Times in strategic locations, managed transactions, lowered leasing expenses and exceeded client expectations.
The Magellan Group
Success in selling 221,000 square feet of property to multiple buyers.
Challenge:
Assist The Magellan Group in the development and sale of 221,000 square feet of new industrial buildings. This property consisted of 25 separate buildings ranging from 5,117 to 23,816 square feet. The value of this property was $45 million.
Solution:
Voit implemented a broad target marketing program to get this project started. To better their chances of finding potential clients, Voit started door-to-door foot canvassing. Voit researched the general area to come up with the best prospects to target for these properties and to get as many deals made prior to construction completion as possible.
Result:
Voit was able to sell 13 of the 25 buildings before the construction was complete. They sold an additional seven buildings shortly after construction completion. On top of selling 20 of these buildings in a deteriorating market, which exceeded the client’s expectations, Voit also represented nine of the buyers in this transaction.
Marriott Vacation Club International
Lease renewal providing tenant with a reduction in rent and expenses.
Challenge:
Provide a strategy to renew Marriott Vacation Club’s existing lease or relocate to a facility that would be a better overall fit. Research showed that the expense of relocation was too high and a renewal would be a better option. Voit established a strong renewal agreement for the property that began as a 10,700 square foot property but was expanded upon by Marriott to become a 57,000 square foot property.
Solution:
Voit negotiated with the owner to establish agreeable terms for Marriott within the required 12 month time frame.
Result:
Voit secured a lease renewal that exceeded the expectations of Marriott. The agreement reduced Marriott’s overall rent while eliminating charges for after hours air-conditioning. Along with a reduction in rent, Voit negotiated for the owner to pay for Marriott’s new personal building security system. Voit further negotiated for the owner to pay for all tenant improvements as part of the reduced-rate lease renewal.
Marukome
Provided client with appropriate building space, under budget and on time.
Challenge:
Undertake an emergency acquisition campaign to find manufacturing space within a short time frame. After a failed transaction, Marukome turned to Voit to provide them with a space that would accommodate their product manufacturing needs that was within budget, and that they could acquire quickly.
Solution:
Voit uncovered a "value-add" property that was for sale that met the operational needs of Marukome with just minor changes. This 72,000 square foot property was located in Irvine, California. Voit immediately entered into competitive negotiations with seven other buyers and was successful in buying the building.
Result:
Voit succeeded in allowing Marukome to become operational within the required time frame. Voit assisted Marukome in buying this building at $30 per square foot below fair market value, making the retrofit amount $22 per square foot which was substantially below the anticipated budget.
Miramar Business Park
Landlord receives above market lease rate in a tenant market.
Challenge:
Retain Miramar Business Park’s largest tenant at the highest possible rent. This renewal came about during a tenant market, so Voit needed to negotiate terms that were favorable to the landlord.
Solution:
Use our in-depth knowledge of the current market and the need to both retain a major tenant yet negotiate a renewal lease favorable to Miramar Business Park. Negotiate directly with Alliant Tech Systems to show the existing tenant that remaining in its current space was the best business decision.
Result:
Voit provided its client with a five-year renewal lease at the above market rate, exceeding Miramar Business Park’s expectations. Voit secured an above market rate for the 98,000 square foot San Diego-based property with no tenant improvement or free rent concessions.
Pacific Life
Financial services firm consolidates to single building in a new location for greater economies of scale
Challenge:
Pacific Life occupied four buildings and needed to consolidate into one headquarters to improve financial and operational efficiencies. With 700 employees, it was crucial that staff retention would not suffer and business operations would not be interrupted as a result of a relocation.
Solution:
After extensive employee demographic analysis and location studies, Voit identified a new high-image site in the target market and delivered a build-to-suit solution with a 10-year lease and a turn-key tenant improvement allowance. Voit project managed the entire tenant improvement and relocation process on behalf of Pacific Life.
Result:
Pacific Life's consolidation into its new headquarters valued at $87 million lowered occupancy costs, increased efficiencies, provided amply parking and met all the technical criteria of Pacific Life's operations. Staff retention was maximized and the interruption to business operations as a result of the relocation was minimized through careful planning by Voit.
Panasonic Avionics
Acquired expansion space for client that met all needs.
Challenge:
Acquire additional expansion space for Panasonic Avionics within walking distance of its headquarters. This space needed to provide Panasonic with room to accommodate nearly 200 employees, client demonstration space and a conference center.
Solution:
Voit located an available 43,500 square feet of office space and facilitated Panasonic acquiring it. The space was within walking distance of the company’s headquarters and large enough to meet the needs of the client. Voit focused Panasonic management on the situation and moved them into first place, above many other potential clients, and negotiated a 56-month lease.
Result:
Voit handled the 43,500 square feet of office space that was in an ideal location with all the specifications. Voit also negotiated the purchase of furniture at less than 10% of cost. Voit then came to a 56-month lease agreement for Panasonic, to ensure that the timing of the lease expiration would coincide with the balance of other area leases; this enabled greater flexibility at the time of the client’s next lease renewal.
REO World, Inc.
REO World expands their Corporate Offices
Challenge:
REO World® is the premier asset management company representing foreclosed properties across the United States, based in Orange County. With the consistent growth of home foreclosures, REO World gladly needed to expand their corporate offices to stay up with the demand and to service their accounts. They required over standard parking at a ratio of 8.5:1000.
Solution:
Doug Killian of Voit Real Estate Services was engaged as REO World’s exclusive real estate agent to identify all properties for sale and for lease that could accommodate their specific office space needs and the 8.5:1000 parking requirement.
Result:
Killian was able to uncover two unique 20,000 square foot “off market” buildings that could accommodate REO World’s over standard parking requirement (free of charge). This ultimately created the necessary leverage to negotiate a new lease which was 12% under current market.
Ropak Corporation
Voit helps Ropak sell its building at a profit of $6 million.
Challenge:
Voit Real Estate Services was engaged by Ropak to provide consulting to sell their option to purchase. Ropak Corporation was presented with an option to purchase its leased 203,850 square foot building with two acres of excess land. The additional land had hazardous materials under it that required mitigation.
Solution:
Voit recommended a new five-year lease for the entire building, as well as purchasing and selling the property in a double escrow, rather than selling the option to purchase. Voit consulted with some of its strategic alliance partners, and sought to resolve the mitigation with the County of Los Angeles.
Result:
Voit was able to achieve a No Further Action notice from the County of Los Angeles on the environmental challenge. The property then became very appealing to investors. In the double escrow, Ropak Corporation purchased the building at the option price of $6.3 million and at the same time sold it for over $13 million giving Ropak a profit of over $6 million. Based on the success of this first assignment, Voit was further engaged to sublease a facility in Vancouver, Canada; sell the existing corporate headquarters; and lease two warehouse locations for Ropak.
San Jose Integral Communities
Voit Coordinates Negotiations Between Client, Borrower, and Lender in Complex 14-Acre Land Deal
Challenge:
Voit was tasked with navigating a complex deal involving a distressed mixed-use development in San Jose which, when finished, would comprise approximately 900 residential units, as well as commercial space.
The property was owned by a development company which had established multiple agreements with the city and was acting as a “master developer” for the planned community.
When the market stalled out, the remaining parcels of land still owned by the master developer were secured by a nearly $30 million loan, and all parties were in a predicament: if the bank foreclosed or the master developer walked away from the property, the existing development agreements would likely be lost and the property’s value would deteriorate.
The lender was contemplating selling its loan when reaching out to Voit.
Solution:
The Voit team realized that a foreclosure would result in litigation, and that the project would be devalued based on multiple development agreements becoming void. With this in mind, the team resolved the issue by bringing a new developer, Integral Communities, to the project.
Integral was willing to acquire a majority of the remaining parcels, totaling approximately 14 acres of land, to finish off the majority of the remaining development while allowing the master developer to retain a small portion of the land for its own future development.
By bringing a significant amount of equity to the project, Integral allowed the lender to take a small write down on their loan yet stay involved in the transaction. Not only did the lender provide financing for Integral’s acquisition, it also refinanced the master developer’s original loan and secured it with the portion of the project that the master developer held on to.
Result:
The Voit team negotiated a put option enforceable by the lender for its client to purchase the property directly from the borrower. In a separate contract, the borrower agreed to cooperate with Voit’s client in providing due diligence material and conveying its fee simple interest in the property. The borrower also reaffirmed its development agreements in order to reduce the development risk to Voit’s client.
Valeant Pharmaceuticals North America
Developed a global marketing strategy optimizing asset value.
Challenge:
Assist Valeant with a global marketing strategy for the company’s real estate portfolio. Valeant’s real estate portfolio encompassed over 1.1 million square feet of land and buildings in seven countries. Completion of the project required providing a global marketing strategy, as well as to sell/lease complicated properties with limited historical information within a 12 week time frame.
Solution:
Voit assembled a global market team to execute this strategy to its full potential. Voit joined forces with King Sturge and CORFAC, two international property consultant companies, and created a practical solution to optimize asset value and implement a current marketing program. Voit used its real estate expertise to assist Valeant in numerous sales and lease transactions.
Result:
Voit assembled a team of experts that developed a global marketing strategy which excelled in creating a practical solution optimizing asset value and exceeded the client’s expectations. Voit was able to represent Valeant in numerous sales and lease transactions involving in excess of 1.2 million square feet and totaling over $36 million.
Walmart
Walmart finds new home at Executive Park.
Challenge:
Walmart, employing more than 2.1 million associates worldwide, needed to find a new location as they expanded to Irvine, and had less than 60 days to do so. The space needed to meet Walmart’s specific geographic and financial requirements.
Solution:
Doug Killian of Voit Real Estate Services was engaged as a local market expert to quickly provide a comprehensive office space study to meet the client’s geographic, financial and specific space requirements. Voit submitted the requests for proposals which started the necessary leverage for the negotiation process.
Result:
Voit managed the process providing critical financial analysis, and lease negotiations. The total process was completed within the 60 day time frame which saved the client from costly hold over rent at their existing facility and ultimately the client Captioned on a new lease that was 15% below current market conditions, valued at $1 million for 10,700 square feet in Executive Circle in Irvine.
WESCOM Credit Union
Premier "people friendly" credit union relocates to outstanding retail location in The Market Place - Tustin
Challenge:
WESCOM Credit Union is a 76-year-old premier financial institution with nearly 300,000 members, over $2 billion is assets and 29 branches throughout five counties in Southern California. WESCOM needed assistance in identifying a higher profile and more easily accessible relocation site for its established Tustin branch and in negotiating a new lease.
Solution:
Key brokerage professionals at Voit Real Estate Services were able to identify a high foot traffic retail location within The Market Place, ranked third in Orange County for shopping center sales. This sprawling regional center, located on 165 acres with 1.6 million square feet, is owned and operated by The Irvine Company.
Result:
Voit professionals identified this prime location and negotiated the terms of a long-term lease. This 4,139 square foot retail space met WESCOM’s requirement for a location that allowed the credit union to continue to service it’s large existing customer base.
