Case Studies

 

Transaction Details

Client
Greater Media Inc.

Property
One Bala Plaza
Philadelphia, PA

Transaction Size
40,000 square feet

Transaction Type
Lease Relocation

Industry

Greater Media Saves $750,000 Leasing Space 20% Larger Than Previous Location  

 

Client Situation

Greater Media, a Boston-based broadcast and publishing company, had been leasing approximately 33,000 square feet at One Bala Plaza, where the firm housed three radio stations. The company had approximately one and a half years remaining on its lease. In 2007, Greater Media acquired a company in central New Jersey that owned and operated two radio stations.  Rather than have these newly acquired stations continue broadcasting out of New Jersey, Greater Media wanted to move that operation into it Philadelphia facility.

Consideration Analysis

Aside from the unconventional challenges of having “shock jock” antics taking place in a conventional office building that also houses much more conservative tenants like Philadelphia Insurance, creating the necessary leverage in the marketplace was a difficult task. It was widely known that moving into new leased spaced would have been cost prohibitive as the build-out costs for studio space would be exorbitant. Studley (now Savills Studley) addressed this by creating an alternative to the stay-put option that involved selling an asset that Greater Media was currently leasing to Comcast and acquiring a new one through a 1031 exchange that would serve as the company’s new Philadelphia facility. This strategy yielded the results that Studley was aiming for—the building owner, Tishman Speyer, drastically lowered the rental rate it was asking and increased the tenant-improvement allowance significantly.

Result

Studley secured a lease for approximately 40,000 square feet, 20% larger than its previous space, while saving the client in excess of $750,000 over the 10-year term of the lease extension. In addition, several special provisions were required in order for this type of business to function along side businesses typically seen in traditional Class A buildings, such as permission to run special promotions in the building’s common areas.

 

Meet the Team

Patrick McGrath
Senior Managing Director, International Desk

Patrick’s extensive training in economics, technology, corporate finance, corporate valuation, and quantitative analysis enables him to rigorously analyze the array of complicated financial and organizational needs of Savills Studley’s global clients. Patrick specializes in financial transactions, developing robust statistical forecasts and models, as well as distilling meaningful trends from large data sets.

+1 212 326 8665

 

Timothy B. Monahan
Senior Managing Director

Tim has been with Savills Studley in Philadelphia since 1988. He has a high level of expertise in Center City Philadelphia and the surrounding suburban areas, including Southern New Jersey. Tim's resume includes over 600 leases. Tim has represented Black & Veatch (www.bv.com) for over 20 years, negotiating over 140 leases in 41 cities throughout America. Tim and his team represented B & V in acquiring the company's headquarters, a four year project resulting in a 600,000 square foot transaction involving the largest office building in the state of Kansas. This purchase earned the firm a "Capstone Award" from theKansas City Business Journal as the "Transaction of the Year for 2009." Tim's expertise includes representing corporations with multiple locations and representing law firms. Tim has represented more than 35 law firms in Philadelphia, and has worked with more than 12 firms on multiple occasions.

+1 215 563 4000

 

Find a Professional