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Engagement Highlights

Large Sales Transaction, 618,000 SF

Secured Commitments for Closing 3.1 Million SF of Future Development Rights

First Large-scale Sales Transaction at a Silver Line Metro Site

Three Separate Leases Executed to Accommodate Operational Needs of Tenant (SAIC/Leidos)

 

About the Client

SAIC - a premier integrator in the technical, engineering, intelligence, and enterprise information technology markets. SAIC has approximately 15,000 employees worldwide.

Leidos - a science and technology company, providing technology and engineering solutions in the defense, intelligence, homeland security, civil, and health markets in the United States and internationally.

Client Need

In 2011, SAIC engaged JM Zell to explore creative ways to maximize and monetize the real estate value of its global headquarters in Tysons Corner, VA.

Solution

JM Zell worked with SAIC leadership to develop and implement a strategy to significantly increase development rights and negotiate a sale-leaseback together increasing the market value while simultaneously satisfying SAIC’s corporate operational needs.

After JM Zell fully negotiated the transaction, SAIC decided to split into two distinct publicly traded companies (SAIC/Leidos), requiring operations to be separated.

The planned departure of Leidos from the site significantly changed the underwriting of the property and greatly increased the risk profile of the transaction. JM Zell’s diverse expertise and agility was instrumental in restructuring a transaction.  This enabled SAIC/Leidos to monetize the asset while maximizing value and operational efficiencies, and minimizing tax impact, all within the required timeframe.

The closing represented one of the largest square footage/dollar value transactions in Northern, VA in 2013

Following closing, JM Zell represented Leidos with its corporate headquarters relocation to Reston Town Center.

JM Zell continues to provide advisory services to SAIC and Leidos, ensuring  major real estate decisions align with their respective corporate strategies.