60 Germantown Court

Challenge

The Federal Bureau of Investigation (FBI) was restructuring resources between its three primary offices in Tennessee. The reorganization of its three offices resulted in the Memphis Field Office reducing its leased footprint by half. The incumbent landlord could not retain the tenant, resulting in FBI running the competitive procurement in tenant-favorable market conditions. CBRE was hired by a Lessor with significant vacancy and facing a near term loan maturity on its office park

Solution

• Leveraging the GIP team’s real time market knowledge for 100% leased, single-tenant, FBI leased office buildings were trading, allowed CBRE FLAG to structure a “below-market” rent that still met the Lessor’s return threshold
• Following completion of the FBI design and construction process, the GIP capital markets team will market the FBI Memphis Field Office for sale

Results

• CBRE used its familiarity with FBI lease procurements to identify the asset within the office park that best fit the specific security and programmatic requirements of an FBI field office
• CBRE in collaboration with the Government Investment Properties (GIP) capital markets team was able to win the procurement for the Lessor
• CBRE secured a 15-year, 10-year firm term, full-building lease. The lease helped stabilize the office park and position it for an accretive refinance