AmLaw 100 Firm
$222M
Financed via TI Lease
as Landlord
15-yr
Fully amortizing TI Lease
Summary
As part of a strategic initiative to modernize and optimize its operations, the law firm set out to consolidate multiple offices into a new, state-of-the-art headquarters that would support long-term growth and reflect its forward-looking culture. The objectives were clear: secure efficient control of space, enhance operational performance, and create an environment that would attract and retain top talent.
To realize this vision, the firm committed to a long-term lease for approximately 680,000 square feet in a newly constructed Class-A office building and financed tenant improvements through the TI Lease structure. Seeking to bridge the gap between the landlord’s allowance and its total capital needs, the firm opted for third-party funding that mirrored its corporate borrowing rate, required no collateral, and provided flexibility by amortizing over the 15-year lease term while minimizing pre-construction costs.
By structuring the tenant improvement costs as rent through the TI Lease, the firm preserved equitable expensing among its partners, avoiding the need to frontload a large cash outlay or short-term debt burden on current partners, and instead spreading costs evenly over the life of the lease.
As TI Lease Advisor, TI Solutions structured, sourced, and executed the TI Lease financing in parallel with the lease negotiations, delivering a tailored capital solution that aligned with the firm’s operational, cultural, and financial objectives.
Approach
Sourced efficiently priced capital aligned with the firm’s credit profile and lease term requirements.
Structured a separate TI Lease at the outset of the transaction to achieve rent-based expensing.
Secured competitive rates from highly qualified institutional lenders.
Obtained full cooperation and alignment from the landlord.
Confirmed operating lease treatment with the firm’s audit advisors.
Coordinated closely with corporate accounting, treasury, and real estate teams throughout documentation and execution.
Results
Met the law firm’s cash management objectives by deploying third-party capital to fund tenant improvements.
Closed financing with a leading insurance company, securing a 17-year facility at a highly competitive fixed rate.
Structured flexibility to delay capital drawdown until the commencement of construction, minimizing carrying costs.
Designed a customized, co-terminous amortization schedule commencing approximately 24 months after closing.
Preserved the firm’s full and unrestricted use of all improvements throughout the lease term and renewal periods.
Delivered even, rent-based expensing of real estate costs over the lease term, aligning benefits equitably across partners.
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