U.S. Department of Agriculture
Kansas City , KS
285,000 SF
FD Stonewater, on behalf of ownership, successfully negotiated a 285,000 SF lease renewal with the U.S. General Services Administration (GSA) for the continued tenancy of the U.S. Department of Agriculture at 6501 Beacon Drive in Kansas City, MO. The lease was executed in December 2020 with a term of 20 years, 15 firm with an additional 5 year renewal option. In this transaction, the FD Stonewater team was able to secure the long-term renewal by removing and mitigating major hurdles for ownership. The original procurement increased the risk to ownership that USDA would relocate as it provided the incumbent a limited advantage by requiring the same Tenant Improvement Allowance as the competitive field, included requirements that favored competitive properties, and required an evaluated purchase option that would create a collar on asset value (which was later removed due to our team’s efforts). The team was able to mitigate these challenges through the consolidation and dissemination of information across Government agencies and their stakeholders. This included information related to the in-place improvements to illustrate to GSA what the actual value to the Government would be to stay in place. Our team was able to be the solution to this inefficiency, provide GSA with a path to correcting the technical requirements of the procurement, and ultimately execute a mutually beneficial deal for all parties.

Category: Brokerage