The Robert Plan, a premier provider of insurance products and services, had the need to sell a building they owned that was occupied by one of their divisions, the Commercial Mutual Insurance Company. Commercial Mutual was also interested in relocating because the space was simply too large for the 20+ employees on staff. The challenge for Joseph Deegan was to find a buyer for the commercial space as well as a better-fitting facility for Commercial Mutual at virtually the same time.
With no suitable space in sight for Commercial Mutual after an exhaustive search, bringing the sale of the existing building to a standstill, Joseph Deegan proposed an alternative – a sale/lease back approach.
Commercial Mutual Insurance Company would consolidate their space in 60% of the existing building and sign a long-term lease. This would allow Joseph Deegan to market the building to investors who would find the long-term cash flow generated by Commercial Mutual attractive. Making full use of the property’s location in a New York State Empire Zone, Joseph Deegan was able to offer investors multiple tax advantages on the purchase of the building as well.
Commercial Mutual Insurance Company signed a ten-year lease on their space and Joseph Deegan successfully closed on the facility with a group of investors. In a subsequent transaction, Joseph Deegan located another tenant to occupy the approximately 40% of space Commercial Mutual did not need.