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Washington Gas Light Case Study
Project
To assist Washington Gas Light Holdings with a major corporate relocation that involved the sale of its existing corporate headquarters building located at 1100 H Street, NW; the identification of a new headquarters facility, including the exploration of multiple options such as a sale-leaseback; representation during lease negotiations; and assistance with the design and construction process.
Total value of the combined transactions: $100 million.
Challenges
The existing headquarters building, originally constructed in the 1940’s, was not functional and had obsolete mechanical and electrical systems. The building needed to be sold and closed on a schedule that coincided with the new lease execution. A short-term leaseback had to be negotiated to house Washington Gas employees during the tenant buildout at the new location. The new buildout had to be delivered on a very aggressive time line. The sensitivities and concerns of Washington Gas employees regarding potential change would need to be addressed. Regulations imposed by the Federal Energy Regulatory Commission (FERC) would need to be factored in and adhered to. The new headquarters site required retail space with street presence and signage capability.
Solutions
We narrowed the search to a shortlist of three new buildings and 101 Constitution Avenue was ultimately chosen. As required, the building provided retail space on the ground level, as well as large contiguous floor plates with a grand interconnecting stairwell. Throughout the process, we coordinated with the Human Resources Department at Washington Gas, so that it could keep its employees informed about the progress of the relocation, as well as monitoring the buildout process.
Results
J Street represented Washington Gas in a 73,875-square-foot lease deal and produced the best price point ever negotiated at 101 Constitution Avenue. The deal included a favorable tenant improvement allowance and multiple growth and renewal options. Washington Gas occupied its new headquarters at 101 Constitution precisely on schedule. We exceeded the anticipated sales price of 1100 H Street, N.W., by $3 million, which represented a 20% increase over original estimates. In addition, the transaction was closed with no retrading, in spite of the fact that the building is 60 years old.
To assist Washington Gas Light Holdings with a major corporate relocation that involved the sale of its existing corporate headquarters building located at 1100 H Street, NW; the identification of a new headquarters facility, including the exploration of multiple options such as a sale-leaseback; representation during lease negotiations; and assistance with the design and construction process.
Total value of the combined transactions: $100 million.
Challenges
The existing headquarters building, originally constructed in the 1940’s, was not functional and had obsolete mechanical and electrical systems. The building needed to be sold and closed on a schedule that coincided with the new lease execution. A short-term leaseback had to be negotiated to house Washington Gas employees during the tenant buildout at the new location. The new buildout had to be delivered on a very aggressive time line. The sensitivities and concerns of Washington Gas employees regarding potential change would need to be addressed. Regulations imposed by the Federal Energy Regulatory Commission (FERC) would need to be factored in and adhered to. The new headquarters site required retail space with street presence and signage capability.
Solutions
We narrowed the search to a shortlist of three new buildings and 101 Constitution Avenue was ultimately chosen. As required, the building provided retail space on the ground level, as well as large contiguous floor plates with a grand interconnecting stairwell. Throughout the process, we coordinated with the Human Resources Department at Washington Gas, so that it could keep its employees informed about the progress of the relocation, as well as monitoring the buildout process.
Results
J Street represented Washington Gas in a 73,875-square-foot lease deal and produced the best price point ever negotiated at 101 Constitution Avenue. The deal included a favorable tenant improvement allowance and multiple growth and renewal options. Washington Gas occupied its new headquarters at 101 Constitution precisely on schedule. We exceeded the anticipated sales price of 1100 H Street, N.W., by $3 million, which represented a 20% increase over original estimates. In addition, the transaction was closed with no retrading, in spite of the fact that the building is 60 years old.