Financial Startup Moves Up in Class A Midtown Building
As a start-up in the early 2000s, Forum Capital Partners was a financial services provider initially located in an executive suite before staffing up and expanding its business operations. When Forum Capital Partners began building up its client base and adding personnel, Savills was engaged to find a prestigious property that would accept a startup business operation as a tenant.
Forum Capital Partners wanted to present a first-class image in an established prime Midtown Manhattan building. As a startup with a limited revenue stream, it was essential to find a landlord that would have enough faith in this tenant to build the space for them on a turnkey basis.
Savills searched for a Class A building in all Midtown submarkets, with an emphasis on space near Grand Central Terminal, and located a dozen candidates. Savills leveraged its detailed knowledge of all the targeted buildings to create competition among landlords. In doing so, Savills found space in a Class A building that had recently been vacated by a major tenant. The landlord was looking for smaller tenants who would fill the high-end pre-built space that had just been delivered. Savills executed a five-year lease on behalf of Forum Capital Partners, with flexibility to accommodate future growth.
Four years later, when the initial lease was nearing its expiration, Savills was tapped to assist in the analysis of a stay-versus-move decision. Once again, Savills explored the marketplace to find the best real estate solution. Ultimately, Forum Capital Partners moved within the same building, 17 floors higher, to a corner space that was built-out by the landlord specifically for Forum Capital Partners. Then, in 2015, Savills proactively renegotiated the renewal provision in the lease, renewing for five more years at more favorable terms. Because Savills knew that the landlord’s loan was coming up for renewal, we leveraged the transaction to include substantial free rent and a work allowance for Forum Capital Partners to upgrade its premises.
Founded in 2001, Forum Capital Partners is a leading, independent placement agent and fundraising advisor to top-tier private investment managers, raising institutional capital for buyout, growth equity, real estate, infrastructure, natural resources, secondary and other private investment strategies on a global basis.