Client Served
challenge
ClubCorp, a leading owner-operator of private golf and country club and private business clubs in North America, was looking to reinvent the 25 year old Pyramid Club. To re-establish themselves as a leader in the market, the club needed reduced rent terms and a large Landlord improvement allowance.
Solution
CRA started the negotiations over 3 years prior to the pending lease expiration to allow for maximum leverage in the negotiations due to the tenant’s long history in the market. CRA was able to prove the value add their client created for the Building and was able to negotiate significantly below market lease terms that reflected this.
Benefit
The new lease terms were specifically negotiated to maximize tenant’s financial returns on this large capital project. Over the first 5 years of the new term they were able to realize a savings of over 25% from their previous agreement, a savings in excess of $1.25 Million.