Region: Shoreview, Mn
Services Provided: Seller Representation, Financial Analysis, Lease Negotiation, Econimic Incentives, Labor Analytics
Size: 313,000 SF 8.11 Acres
CHALLENGE
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Deluxe Corporation owned a two-building corporate campus in a suburban setting that had become functionally obsolete, inefficient and offered employees minimal amenities.
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To attract/engage/retain employees, Deluxe knew a significant campus renovation would need to take place soon and would cost $20M+.
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Deluxe, amid an entire corporate and real estate transformation, needed a long-term solution for creating dynamic headquarter space that
mirrored its vision for the future.
SOLUTION
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Newmark and Deluxe took an aggressive 3-pronged approach considering to own a campus, a long-term sale/leaseback, and selling the
campus plus relocating to a more amenity-rich Twin Cities’ location. -
A sale and relocation with short-term leaseback emerged as the lead strategic option after extensive analysis.
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Newmark confidentiality marketed the sale/leaseback opportunity to a targeted list of developers qualified to purchase, hold and develop a site
of this size. -
Through several rounds of written negotiations, a subset of finalists were selected to compete for the purchase.
RESULTS
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Deluxe made the decision to sell its corporate campus and relocate its headquarters to the heart of the Minneapolis CBD into a building
complex that would provide Deluxe access to top talent and countless employee amenities in the complex, skyway and nearby. -
Newmark negotiated with several leading commercial developers, creating leverage to secure optimal pricing with minimal contingencies
from Scannell Properties. -
Deluxe captured top of market pricing during a period of great uncertainty due to the COVID pandemic, while securing a short-term lease back
giving time to build out and move into a state-of-the-art headquarters.