Fidelity National Credit Services initially contacted Joseph Deegan to lease roughly 25,000 square feet of warehouse space for them in the rear of their building located in the Town of Ulster, NY. In a quick turn of events, Fidelity National Credit Services then needed to have the asset off of their balance sheet by year’s end, and asked Joseph Deegan to sell the building as quickly as possible instead. In addition, the project was complicated by Fidelity’s desire to sign for a six-month leaseback agreement only, where most investors look for longer-term leases.
With pressure exerted from their corporate headquarters in Santa Barbara, California to affect a sale prior to fiscal year end so Fidelity could take some critical year end write-offs, we began our work. Because of our active involvement in the commercial real estate market, we were already aware of a prospect searching for approximately 25,000 square feet of warehouse space willing to sign a lease with the purchaser of the building subject to his ability to close on the building.
Two weeks prior to year-end, Joseph Deegan successfully closed on the transaction with an investor who leased 25,000 square feet to a new user for the rear portion of the building. Fidelity got the asset off their balance sheet by years end, and their short-term lease secured a place for them to wind down their business for 6 months.