Property Description:
Two, 2-story office buildings and one, single-story research and development building for a complex totaling 280,556 square feet. The buildings are situated on a 15.3 acre site, each with its own identity, parking, and access. The property is located in Southwest Houston in the Sugarland submarket at Highway 59 and Highway 90A, adjacent to the Sam Houston Tollway.
Titan’s Mission:
- Acquire an office/research facility occupied by Input-Output, Inc., an oil exploration company in Houston, Texas;
- Current lease had 8 ½ years remaining with an over-market rent and a punitive capital lease structure;
- Tenant wanted to remove one building in the future from the lease.
Titan’s Strategy:
- Acquired the facility from the seller while re-writing the lease to incorporate the tenant’s needs;
- Allowed the tenant to terminate the lease on one of the buildings for a set fee during the first five years of the lease;
- Crafted a favorable long-term lease agreement at market rents that gives the tenant a better economic deal while adding flexibility to their operations.
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Titan
Accomplished:
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The sale leaseback significantly reduced fixed operating expenses and converting the agreement from a capital to an operating lease improving the company’s financial strength; |
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IO has the flexibility to expand and contract to meet the future needs of their growing business. |
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According to Michael Kirksey, Chief Financial Officer of Input-Output, Inc., “this transaction affords us the flexibility in managing our business and allows us to have greater control over our facilities-related expenses.”
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