Case Studies

 

Transaction Details

Client
Modern Videofilm

Property
Multiple Locations
Burbank, Universal City & Glendale, CA

Transaction Size
81,000 square feet

Transaction Type
Headquarter Renewal, Lease Relocation

Industry

MVF Reduces its Rental Rate by 36 Percent, Saving Over $1.25 million During Five-Year Renewal Term

 

Client Situation

Modern Videofilm (MVF) has over 25 years of success in the competitive and capital intensive film and television post-production business.  Some of MVF’s television projects include Desperate Housewives, Friends and Home Improvement.  MVF’s film résumé includes Gladiator, I Robot and Master and Commander.  Studley (now Savills Studley) has been MVF’s tenant representative for more than 10 years.

Consideration Analysis

MVF’s facilities requirements often include above-standard ceiling heights for theater installations, 24/7 HVAC with redundancy and convenient client parking and amenities.  Consequently, Studley works closely with MVF’s senior management to develop real estate solutions aligned with MVF’s changing business needs.

 

Result

  • Tape Duplication Facility – As one of Studley’s first assignments, MVF retained Studley to identify a 24,000-square-foot free-standing building in Glendale to house a new telecine and tape duplication facility.  The facility quickly became integral to MVF’s operations and Studley is currently negotiating a lease renewal for this space.
  • Headquarters – MVF had a lease renewal option on its 42,000 square foot headquarters facility.  The original lease document contained a provision stating that the renewal rent would not be less than MVF’s previous rent.  Studley uncovered an ambiguity in the documentation and determined that true fair market value was less than the rate that MVF would be paying at the end of its lease.  As a result, Studley helped MVF avoid risky lease arbitration and reduced MVF’s rental rate by 36 percent.  MVF saved more than $1.25 million over the 5-year renewal term.
  • Accounting Office – MVF utilized Studley’s advisory services to negotiate a new 12,000-square-foot lease in Universal City for the firm’s accounting department. This transaction featured a build-to-suit tenant improvement package, resulting in minimal out-of-pocket costs to MVF, and an ongoing tenant cancellation right throughout the term of the lease.
  • Tape Storage Facility – After a fire in an adjacent building to where MVF stored its videotape stock, MVF retained Studley to locate a more secure storage facility.  Studley completed the 3,000-square-foot assignment in less than 30 days.
 

Meet the Team

Mark Sullivan
Vice Chairman, Director and Regional Manager

Since joining the firm in 1986, Mark has been instrumental in driving the growth of the firm in Southern California. Mark’s commitment to Savills Studley was recognized and rewarded when he was appointed to the firm’s national board of directors in 2003.

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