Corporation Service Company (CSC)

145,000sf Build-to-Suit Headquarters

The Challenge

CSC, the country’s largest provider of corporate governance services, needed a new 145,000sf world headquarters that could accommodate significant future expansion for its anticipated growth.

After reviewing the in-depth “own versus lease” analysis prepared by Tactix, CSC determined that ownership of its new corporate headquarters was essential. Unfortunately, no existing buildings satisfied their size requirement and the only development site which met their needs was not for sale under any circumstances due to the tax and legal constraints of the owner.

The Solution

By understanding the financial and legal issues of both CSC and the owner of the land, Tactix was able to structure an “outside-the-box” joint venture involving not fewer than 12 unique business elements. The catchphrase during the negotiations and deal structuring became “Yes, I understand that none of us have ever seen it done this way before, but why can’t we do it now?”

The ultimate transaction (a hybrid lease / joint venture structure), which was documented in over 300 pages of agreements, satisfied the complicated needs of the owner – a prerequisite to getting the deal done – and gave CSC (1) total control of the project, (2) 90% of the financial benefits of ownership for the first phase of the project for the first seven years growing to 100% thereafter, and (3) 100% of the financial benefits of ownership for all subsequent phases. CSC can expand by up to another 150,000sf at any time on pre-negotiated terms.

After almost a year of intense negotiations on our new 200,000sf+ headquarters, Tactix helped deliver a very unique transaction structure incorporating many one of a kind financial terms and critical project controls for CSC. Their sophisticated real estate and legal backgrounds and negotiating tenacity were key to making this deal a success. They continue to be a valued partner of ours on the real estate front.

Tom Porth CFO


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