Client: Fortegra Financial Corporation
Location: 10151 Deerwood Park Boulevard, Jacksonville, Florida
Size: 49,418 square feet
Overview: After a majority recapitalization was completed with Boston-based Summit Partners, Fortegra Financial wanted to reorganize the companies business sectors and position them for future growth. MB Real Estate was hired to evaluate the options for the Headquarters and Fulfillment requirements that were located at 100 W. Bay Street in Downtown Jacksonville, a few years in advance of their natural lease expiration.
Approach: MB Real Estate evaluated both downtown and suburban alternatives. The size of the premises varied from 45,000 – 60,000 square feet, depending on whether Fortegra Financial consolidated the HQ and Fulfillment operations or separated the two. The overall costs were analyzed on a Cash Flow and GAAP basis. To capitalize on GAAP reporting benefits, MB Real Estate
negotiated a buyout of their existing lease in lieu of tenent improvements and focused on space with existing conditions to minimize out of pocket costs.
Results:
- Negotiated a rental rate 10% below market.
- Obtained significant flexibility through favorable expansion and cancellation options.
- Negotiated a buyout allowance for Fortegra Financial’s existing lease obligation to accelerate the timetable and capitalize on favorable market conditions.
- Analyzed cost and benefits of consolidating into one facility versus separate operations for Fulfillment and Headquarters.
- Improved efficiencies 26%, from 257 to 191 square feet per person.