Federal Lessor Advisory Group

2200 North American, Philadelphia, PA

Philadelphia, PA

2200 N

Challenge

  • The Federal Bureau of Investigation (FBI) needed to consolidate three different Philadelphia area facilities that were located in federally owned space into a more efficient single facility.
  • As no federal space was available, the FBI working with GSA decided to seek leased space and advertised for a 15-year, 10-year firm term 60,000 SF lease. 
  • The lease procurement sought specialized space for an FBI automotive repair facility and included a mixture of specialized high and low bay warehouse space, office space, and secure parking in a single-tenant fenced facility.
  • No options meeting this requirement appeared to be available in the urban Philadelphia location that was critical to the FBI’s mission requirements. 

Solution

  • 2200 N American Street was a furniture warehouse that had recently been acquired by a multi-family developer with the intent to re-purpose the site for residential development. The building was leased back by the seller subject to a 180-day cancellation notice.
  • When GSA advertised the need for this specialized facility, CBRE FLAG in collaboration with CBRE Philadelphia approached the developer about keeping the existing warehouse intact and renovating it to accommodate the FBI’s facility need. 
  • The opportunity to do an immediate deal with the Federal Government, rather than a multi-year residential development redevelopment was viewed positively by the developer, and CBRE FLAG was tasked to assemble a team of architects, engineers, and general contractors to plan and price the necessary renovations.
  • CBRE FLAG presented this solution to GSA and FBI and worked cooperatively with all the key stakeholders to tailor a lease and a renovation plan to meet the requirements of all parties.

Results

  • CBRE FLAG was able to demonstrate the building’s ability to meet the FBI’s technical requirements and secure a long-term GSA Lease.
  • CBRE FLAG was able to convince the GSA to modify the lease term to be a 15-year firm term rather than including 5 years of soft term via an alternate proposal that demonstrated substantial lease cost savings to the Government.
  • Downtime was minimized with the existing tenant remaining in place up until the date the renovations to convert the facility for FBI use were to begin.
  • The full building long-term federal lease allowed the developer to secure the necessary financing to carry out the project and will ultimately allow the developer to realize a significant development return on its acquisition years earlier than if it had proceeded with a multifamily residential development.

Federal Lessor Advisory Group

We navigate every dimension of the federal leasing landscape to drive value for your real estate.