Michael Feuerman joins Brett Amron, Esq., and Jeff Bast, Esq. to discuss their recently-negotiated office lease, and to discuss current topics in the South Florida office markets. Michael is honored to be their first, second-time guest!

The post The Law Firm Practice Podcast Episode #75- Michael Feuerman returns to the Practice Podcast to Review a Client’s Closed Office Lease Transaction appeared first on South Florida Tenant Rep.

CHALLENGE

Parkson Corporation is a global engineering, design, and equipment supplier to the water treatment industry.  Parkson changed its manufacturing process and no longer needed a 46,300 s.f. manufacturing warehouse facility in Pompano Beach, Florida.  They vacated the building and decided to sell it.  The sale was difficult due to a well-publicized construction project to widen Andrews Avenue, where the building was located.  This road widening could possibly require that the State of Florida take (by eminent domain) Parkson’s building within 10 years, and destroy part or all of the property.  It had not yet been determined whether they would have to take the building, but it was a possibility, complicating the sale.  Parkson hired Michael Feuerman, who had represented them on a previous brokerage transaction, to market and sell the property.

ACTION

Mr. Feuerman and his team examined the timing and likelihood of eminent domain.  They then reviewed the physical characteristics of the property (ceiling height, bay sizes, loading facilities, parking, fixtures and equipment, etc.) and the zoning code’s list of permitted uses, to determine which firms could use the property.  In most cases when selling a vacant property, a sale to a firm that will occupy the building (an owner-user) is more difficult to achieve but brings a higher price than a sale to an investor.  Mr. Feuerman focused on owner-user sales to maximize Parkson’s sale price.  The marketing materials disclosed the eminent domain issue, eliminating any firms that could not accept that possibility.  After marketing, touring and negotiating with multiple parties, Mr. Feuerman found a buyer and negotiated excellent sale terms in 7 months.

RESULTS

• The sale was a win-win for Parkson Corporation and the purchaser.
• The short time to sell and the high sale price both exceeded Parkson’s expectations.
• The purchaser occupied the building for close to 10 years, at a net cost that was likely below what it would have cost them to lease.
• The purchaser had eminent domain rights to force the state to pay fair market value when the building was ultimately taken to widen the road.

TESTIMONIAL

Michael is an effective knowledgeable leader who is able to act and deliver on a corporation’ requirements and strategies during all negotiation phases. Michael understands all facets of the commercial real estate business and was instrumental in the successful negotiations and final sale of Parkson Corporation’s Pompano manufacturing facilities. Oti Wooster, Head of Human Resources and Administration Operations

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CHALLENGE

In 2000, BankAtlantic (a Florida-based bank founded in 1952, with branches from St. Lucie County down to Miami-Dade County) decided to relocate their corporate headquarters from East Sunrise Boulevard to a location closer to I-95 in Broward County. In late 2000, Mr. Feuerman and his partner, both with a global, top 5 commercial brokerage firm at that time, won the assignment to lead the search for the bank. The new location had to have enough land or existing building to accommodate at least 100,000 s.f. of office space, sufficient parking for all employees, room for growth, and superior exposure for corporate identity, and it had to be a Class A property or one that could be upgraded to Class A. The bank was open to purchasing or leasing.

ACTION

By early 2001, Mr. Feuerman had identified over 10 properties that met the bank’s criteria and took the bank through each viable option. One of those sites was a +/- 188,000 s.f., Class C office/manufacturing facility, available only for lease. Mr. Feuerman envisioned that site as one which could be converted to 100% office, and upgraded to Class A.

Mr. Feuerman, having a prior relationship with the property owners, contacted them and convinced them to review an unsolicited offer to purchase the building, as well as an additional, adjacent +/- 11 acre parcel of vacant land that they also owned. The bank agreed that the site would make an excellent location for their new headquarters, and Mr. Feuerman’s team assisted the bank and its attorneys in negotiating the terms of the purchase and sale of the building and the adjacent land.

After the purchase, the property was converted to a Class A, single tenant headquarters building which stands today as an iconic property on West Cypress Creek Road.

RESULTS

• Exhaustive market search by Mr. Feuerman resulted in 11 possible locations for new bank corporate headquarters within the first month after being retained
• Detailed presentation of lease and sale comparables for both existing buildings and land, allowed the client to determine the appropriate purchase price
• The bank was able to purchase a 188,000 s.f. property for an excellent price, as well as an additional 11 acres for excess parking and for future expansion of the building
• The property was converted to a Class A corporate headquarters, where the bank operated until being purchased by BB&T in 2012

The post BankAtlantic Corporate Headquarters Relocation appeared first on South Florida Tenant Rep.

CHALLENGE

Fulmer LeRoy Albee, PLLC, a law firm with three offices in Florida, occupied a portion of a 15,000 s.f. office building in Fort Lauderdale, which was owned by one of the firm’s partners.  They wanted to sell the building and relocate the firm after the sale.  There were very specific parameters that had to be met: the sale price had to meet the goals of the firm partner who owned the building; the eventual purchaser had to be willing to give the law firm at least a 6-month leaseback after sale while they searched for and secured new space; and the relocation space had to fit the firm’s layout, location and budget requirements.

ACTION

The firm retained Michael Feuerman, Esq., CCIM as their exclusive broker for the sale and relocation.  Michael immediately marketed the property for sale to owner-users and investors, and advertised within the brokerage community.  Simultaneously, Michael tracked office space in the firm’s immediate vicinity, keeping a current inventory of available relocation space so the firm could move quickly when the building sold.  Calling on his training as a licensed Florida attorney, Michael worked with the seller’s attorney to negotiate purchase and sale contracts.  Once the property was under contract, Michael guided the owner through the due diligence process, helped the firm negotiate the 6-month leaseback from the purchaser, and worked with all parties to ensure that the sale closed in a timely fashion.  During the due diligence process, Michael helped the firm locate a great office for relocation, and negotiated favorable terms for a new, long term lease.

RESULTS

• Property under contract within 5 months to a cash buyer, closing less than 30 days later
• Six-month post-closing leaseback fully negotiated within one week of contract being signed
• New, relocation space terms fully negotiated less than two weeks from contract being signed, and lease signed within one month of sale (despite Christmas and New Year’s holiday scheduling delays!)
• Relocation space met the firm’s criteria, and more:
  • located 1.5 miles from their prior office
  • rent below budget
  • the new space was already fully furnished and the building had extensive amenities (on-site gym, cafe, security guard)
  • all improvements done by the landlord with additional concessions.

TESTIMONIAL

We have been relying on Michael Feuerman as our commercial real estate broker since 2003. He has provided expert guidance and has gone above and beyond what most brokers would do to solve our real estate issues and exceed our goals for over a decade. His help through this tricky sale/relocation process was invaluable. We highly recommend Michael as a commercial real estate broker to add tremendous value to any firm that occupies office space.

– C. Richard Fulmer, Esq.

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CHALLENGE

Bayview Center for Mental Health (Bayview) was a not-for-profit organization providing mental health care and social services to indigent and low-income patients throughout Broward and Miami-Dade Counties.  In the summer of 2009, Bayview decided to relocate their corporate headquarters and their medical clinic from one facility in Miami Gardens to two facilities in Fort Lauderdale (office) and North Dade (clinic). Bayview could have no downtime of their clinical facilities during the move, as patients depended on their services.  Bayview hired Michael Feuerman as their exclusive tenant broker to represent them in their search and negotiations.

ACTION

Mr. Feuerman had represented Bayview since 2004, and was very familiar with their requirements and operations.  He conducted a thorough review of their then-current configuration, and helped them to determine what functions would be required in the new facilities.  By September 2009, Mr. Feuerman had toured Bayview through multiple options for each requirement, in both counties.  He directed the negotiation process with several building owners until fully acceptable terms were presented for multiple facilities, providing Bayview with several choices.  He ensured that terms were in place so that the clinic would be delivered on time, with no delays. Bayview ultimately chose a 14,000 s.f. office location (5 year lease term) in Downtown Fort Lauderdale, and a 15,530 s.f. clinic location (10 year lease term) in North Miami Beach.  Mr. Feuerman (a licensed but non-practicing attorney) worked closely with Bayview’s attorneys to ensure that the final lease documents reflected all negotiated business terms, and to overcome government and neighborhood concerns over a mental health clinic being established in the North Miami Beach location.

RESULTS

• Assisted the client in finding a clinic location that was accessible to patients, where zoning allowed for mental health treatment, and with certain on-time delivery of the space
• Guided the client in choosing an excellent corporate headquarters location, suitable for meetings with donor organizations and government funding-agencies
• Negotiated rent at under-market and under-budget rates
• Negotiated above-market build-out allowance and free rent
• Negotiated sufficient parking for all employees

TESTIMONIAL

In all transactions, Mr. Feuerman was professional and knowledgeable, providing an optimum level of skill and expertise, working diligently to assure Bayview Center continued operations without interruption of services.  He provided a full range of real estate services, and guidance through all processes and far exceeded our expectations.

Charles B. Huiss, Chief Administrative Officer

Click here for a downloadable pdf copy of this page: Case Study Bayview Center Corporate Office and Clinic M Feuerman

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