Swift Timing Results in Convenient In-Building Expansion and Significant Savings for Luxury Brand
The National Railroad Passenger Corporation (Amtrak) occupied approximately 250,000 square feet across three buildings in downtown Washington, DC. Amtrak needed a solution for its expiring lease at Union Station, which housed the transportation company’s headquarters. Amtrak took the opportunity to fully assess and align its long-term real estate strategy with its overall business goals. The company engaged Savills to explore the most viable options including consolidating, remaining decentralized or relocating to a new market altogether.
Valentino preferred to remain in their art-deco building for which they had been for over 15 years with a lease that still had 3 years remaining. It seemed they were destined to continue to rent expensive space offsite. Savills was retained to explore the market and devise a strategy to secure Valentino’s long-term tenancy while finding suitable expansion space within the building.
Savills uncovered a unique situation on the top two floors of the building. Elie Tahari was subleasing the floors, long-term, and had secured a subtenant. The sublease was out for consent and the landlord had one week remaining to decide if they would recapture or consent to the sublease. Savills proposed to the landlord to recapture the top two floors and Valentino would commit to lease them, long-term, and extend their current floor to be coterminous. The landlord agreed provided Savills was able to close the transaction on the top two floors within a one-week time frame. The landlord also agreed to honor the negotiated terms for the existing full floor renewal for 30 days. Savills completed a favorable transaction for the top two floors within a one-week period and secured the existing floor (for an additional 15 years) within the 30-day period. By no longer having to rent exhibit space during market week Valentino estimates they will save over $1 million dollars over the term of the lease.