$48.2M
Financed via TI Lease
as Landlord
16-yr
Fully amortizing TI Lease
Summary
As part of its plan to establish a premier Americas headquarters in Atlanta, InterContinental Hotels Group (IHG) sought to create a dynamic and modern workplace that reflected its global brand and long-term vision for growth. The project involved the build-out of approximately 500,000 square feet of leased space within Three Ravinia Drive, a 31-story, Class A office tower in the heart of DeKalb County’s Ravinia complex.
The proposed tenant improvements far exceeded the standard landlord contribution, requiring an innovative financing solution that would enable IHG to fund $48.2 million in improvements while maintaining accounting, tax, and operational efficiency.
As TI Lease Advisor, TI Solutions was engaged by CBRE Global Investors, the building’s landlord, to structure and execute the TI Lease financing, alinging the interests of IHG, the landlord, and the building’s lenders while preserving true-lease accounting treatment and operational control for IHG.
Approach
Structured a 16-year TI Lease tailored to meet IHG’s accounting and tax requirements for true-lease treatment.
Designed the financing to ensure no exposure to the landlord while granting full control of the improvements upon IHG’s lease expiration or exit.
Coordinated closely with CBRE Global Investors, IHG, and all stakeholders to satisfy first mortgage covenants, ensuring the financing did not affect the property’s lien position or rental obligations under any circumstance.
Structured the TI Lease so that the funding source held a senior claim directly against IHG, enabling direct recourse in the event of tenant default.
Secured cooperation and alignment among the landlord, tenant, and senior lender to streamline execution and protect all parties’ interests.
Results
Enabled IHG to complete its $48.2 million build-out for its new Americas headquarters at Three Ravinia Drive without utilizing corporate debt or upfront cash.
Achieved true-lease accounting and tax treatment, preserving balance-sheet efficiency for IHG.
Provided the landlord with zero financial exposure while ensuring complete control of improvements upon tenant departure.
Met all first mortgage compliance requirements, ensuring no disruption to existing financing or property rights.
Delivered a fully compliant, long-term capital solution that balanced the needs of a global tenant, institutional landlord, and senior mortgage lender.
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