Brooklyn Nets
$35M
Financed via TI Lease
as Landlord / LP
25-yr
Fully amortizing TI Lease
Summary
As part of their relocation from New Jersey to Brooklyn, the Brooklyn Nets engaged TI Solutions to structure financing for the build-out of a state-of-the-art 110,000-square-foot practice facility in Industry City. The new space enabled the team to relocate operations from New Jersey and create a best-in-class environment for player development, team operations, and community engagement.
The project’s highly specialized design and purpose-built features significantly exceeded a standard landlord contribution, requiring a tailored capital solution that balanced complex stakeholder, tax, and compliance requirements.
Industry City—a 6-million-square-foot historic industrial complex on Brooklyn’s Sunset Park waterfront—is jointly owned by Jamestown, Angelo Gordon, Belvedere Capital, Cammeby’s International Group, and FBE Limited.
To meet the project’s ambitious vision and financial parameters, TI Solutions structured a proprietary 25-year TI Lease that enabled the Nets to finance $35 million of improvements efficiently while maintaining accounting, tax, and league compliance.
Approach
Structured a 25-year TI Lease that qualified as a “true-lease” for accounting and tax purposes.
Collaborated with the Nets’ internal finance team and external advisors at Ernst & Young to ensure full compliance with accounting standards and to optimize lease treatment.
Designed rent payments and draw schedules to align with construction milestones and the Nets’ budget, including free-rent and deferral periods.
Coordinated with the NBA League Office to confirm that the financing structure complied with all League rules governing team obligations.
Managed alignment among the tenant, landlord, and funding source to streamline execution and safeguard the interests of all stakeholders.
Results
Enabled the Brooklyn Nets to complete a $35 million build-out of a premier practice and headquarters facility in Brooklyn without the use of corporate debt.
Achieved full true-lease accounting treatment, preserving the organization’s balance-sheet efficiency and budget flexibility.
Delivered a highly structured rent schedule supporting the team’s operational and construction cash-flow requirements.
Secured League approval for the transaction, ensuring full compliance with NBA financial regulations.
Delivered a long-term capital solution that aligned financial efficiency with the team’s vision to establish a lasting home in Brooklyn.
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