Consolidating and Terminating Hundreds of Leases (National)
For the first time in SEC history, four public companies were merged into one entity - Coram Healthcare Corporation. The Denver-based company needed to consolidate hundreds of offices, market-by-market, across the country. How would Coram determine how to manage this complex real estate portfolio?
The Newton Team used its expertise to conduct a thorough analysis of the 368 leases. By analyzing existing sites, we identified which were the best locations to support the ongoing business in each market. We determined which offices to keep open, sublease, or offer a buyout to the landlord and then guided Coram in their negotiations to buy out of 273 of their leases. With the Newton Team overseeing these negotiations, Coram was able to buy out of those leases at just $0.27 on the dollar, achieving savings of over $12 million.
The Newton Team directly managed this nuanced space consolidation process. We understand how to maximize real estate portfolios and, in this case, buying out of future lease obligations was the best economic decision for the company in many cases. By advocating aggressively for the client, we were able to avoid the need to sublease and instead generated immediate cost savings for Coram.
“David Newton and his team used The Space Formula to organize and identify the best facility to conduct operations in each market throughout the country. Then they disposed of our excess sites at a fraction of our remaining lease liability.”
-David McCormick, VP of Operations, Coram