Background

 

Insurance Data Processing (IDP) was located in a Jenkintown, Pennsylvania building and needed to expanded beyond its capacity.

 

Goals

 

The company’s business focus was on all of the product lines it was developing and the expected growth needs. There was a limited market area acceptable for a move.

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Mixing Entrepreneurs with Real Estate

 

The owners of IDP were very familiar with commercial real estate and ownership. When we identified a potential new development in which they could receive a carried interest for their tenancy, they elected to move.

 

Market Comparisons

 

Market alternatives were negotiated and reviewed against the “new” development alternative. The economic benefit of equity was evaluated as a “zero” opportunity and then given a conservative potential economic benefit.

 

The Decision

 

Although the economic lease terms did not drive the transaction, the percentage of equity did. The decision to lease/own at Wyncote Executive Plaza was made.

 

Development

 

Our firm was responsible for the full due diligence process and construction administration and tenant relocation.