Redevelopment of Corporate Headquarters/Flagship Retail Property

Client Challenge: 

A high net worth business owner desired to recapitalize and redevelop an aging property, located in a major US gateway city, that served as the corporate headquarters and flagship retail store for its high profile brand consumer goods retail business. The objective was to allow for the downsizing and restructuring of its retail business, reconfiguration of its corporate facility’s needs, and partial monetization of the underlying asset value.

Arcturus Solution: 

Conducted a full assessment of the property and highest/best use alternatives – including evaluation of physical condition, systems and infrastructure, analysis of underlying ground leases and assessment of market conditions and demand

Assessed corporate and retail store space needs required by the underlying business restructuring

Analyzed redevelopment/recapitalization alternatives – including assumptions, capital requirements, expected value and execution risks

Led a marketing effort with a select group of potential investors/developers to structure a partial sale, leaseback and future joint venture with the client

Utilized a condominium structure to facilitate the partial sale, redevelopment investment, joint venture and leaseback

Key Outcomes: 

Transaction value exceeded $200 million which generated proceeds to client $30 million above initial expectations

Fully recapitalized the asset to allow for a comprehensive redevelopment/modernization of the building, including the addition of amenities and new vertical transportation

Secured current and future corporate and retail space needs required to support restructured business strategy

Exceeded client expectations with respect to anticipated joint venture terms, control and future lease/space flexibility