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TRW Automotive, Michigan

Sale Leaseback

Situation

TRW Automotive had an expiring lease for their headquarter building, with the option to renew.  However, TRW’s current rent and renewal options were above market, and the company did not want to renew at the higher, above market rental rate.   

 

 

Challenges

Prior to the expiration of TRW’s lease, the building owner had to refinance the building.  However, the owner was not able to lease to TRW at the lower market rent and still refinance the building.

 

 

Results

WWM evaluated the market, and identified building owners who could provide TRW with a market rent lease.  Given TRW’s ability to relocate at a market rent and the owner’s economic position, WWM was able to leverage TRW’s position and negotiate the purchase of the building from the owner.  WWM then went to the sale leaseback market, and negotiated the sale and leaseback of the property by TRW, reducing TRW’s rent expense by over 37%.