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Cres Solutions
Cres Cres

Success Stories

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Success Story - Kerbey Lane Cafe'


Savings: 

  • Increased TI allowance from $37.95/sf to more than $47.47/sf in addition to no liability and no cost for Fire Line to be installed.
  •  Percentage rent – 2% of $3.7 vs 2% of 3.5million.
  • Improved Renewal/Extension Option language so that it maxed out at 95% of fair market, and then defined fair market rates.
  • Capped Op Ex at max of 5% increase per year.


     

 Issues:

  • KLC had negotiated a lease on their own & didn't like it so they walked away from it.  They asked for John's assistance due to his being the current Land Lord.
  • They either wanted to move or renegotiate their current lease agreement.
  • Needed more TI allowance and less liability.

Results:

  • Went out to the market and got offers from 2 other competing, close by locations with more TI, less rent, and more Landlord provided improvements to use as leverage w/ the Corners as well as a Lease offer from downtown site
  •  Reduced liability regarding:
                Interruption of services language
                Capital Expenditures – must show 3 year pay back
  •  Added exclusive language regarding other 24 hour establishments and businesses which are limited to 30% of their sales from breakfasts
  • Reduced Personal Guaranty from, 5 year to 3 years
  • Designated parking for the restaurant





 

“Molly Anderson and the team at CRES significantly increased the amount and scope of improvements the Landlord had originally proposed, reducing our out of pocket expenses for build-out.  Their thorough and energetic approach reflected their market knowledge and commitment to their clients.”    

-Van R. Hoisington, President and Chief Investment Officer

 
 
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