Emulex Corporation, one of Orange County’s largest and fastest growing public companies, retained Studley (now Savills Studley) to provide a real estate and facilities solution to accommodate its rapid growth and long-term occupancy needs.
Studley engaged in a highly complex process that concurrently leveraged multiple relocation alternatives in the area. After in-depth analysis and consideration of multiple scenarios, Studley recommended executing a real estate solution for a long-term build-to-suit lease with Emulex’s existing landlord, C J Segerstrom & Sons. The transaction included a below-market land purchase and a custom build-to-suit for Emulex’s corporate campus.
The lease was structured as a lease with an option-to-purchase. Both the lease rate and purchase price were formulaic and were derived directly from the actual cost of the development. The transaction also included set expansion rights on campus. In order to accommodate the construction schedule, Studley negotiated to expand and extend Emulex’s existing headquarters lease at significantly below-market rental rates and with flexible terms. Studley’s Project Management division acted as Emulex’s development consultant through all phases of the project’s construction, fit-up and relocation.
3333 Susan Street,
Costa Mesa, CA