National Contract Leads to Streamlined Process
Client:
Avon Products, Inc., a $10+ billion global manufacturer and marketer of cosmetics, fragrances, toiletries, jewelry, apparel and home furnishings.
Performance:
Decentralized management of security monitoring for field offices had resulted in inconsistent pricing, billings errors, poor customer service, and a general dissatisfaction with the quality and cost of its security services. Galaxy was engaged to analyze the problem and recommend and implement a plan to reduce costs and improve service for Avon’s New York, New York headquarters and 300+ U.S. field offices. Company procedures for initiating or discontinuing security were inconsistent and no link existed between the inventory of currently leased locations and security obligations, resulting in monitoring services being paid on closed or inactive locations.
Galaxy conducted a Request For Proposal (RFP) process to identify and engage the best vendor for Avon’s security needs. A uniform, national service contract was negotiated with an industry-leading security company. Galaxy designed a customized billing statement which provided clear tracking of location changes and minimized billing errors. Further, Galaxy established new procedures for and integrated the terms of the new security agreement into Galaxy’s proprietary real estate software resulting in significantly better control over costs and processes.
Result:
Galaxy Partners saved over $300,000 by structuring and negotiating a favorable national contract with a leading security services company to provide systems and monitoring services to Avon Products, Inc.’s portfolio of training centers. The improved contract also included more flexible terms to streamline the process of establishing, maintaining and cancelling security monitoring at each location.
Resourcefulness Solves Zoning Problem
Client:
EmployBridge, a national employment services company with a portfolio of complementary brands, including ProLogistix, ProDrivers, ResourceMFG, Resource Accounting, Personnel One, and Staffing Solutions.
Performance:
EmployBridge entered into a 5-year lease for an office/warehouse space in Aurora, Colorado; however due to a newly adopted zoning ordinance, EmployBridge was unable to obtain a business license to operate there. Galaxy Partners was engaged to find a suitable alternate location on extremely short notice, and attempt to negotiate an early lease termination, although both the Company and their advisors had failed after several attempts.
Galaxy succeeded in finding a qualified alternate location at lower rental cost than the original lease. Galaxy was also able to negotiate an early termination of the unusable lease at no cost to EmployBridge. Further, Galaxy persuaded the City of Aurora to grant a waiver to EmployBridge so that the Company could re-apply for a business license that would meet the local zoning requirements. Lastly, Galaxy prompted the landlord of leased-but-not-usable location to honor the original lease and to roll forward the lease commencement date, all at no cost to EmployBridge. This allowed the Company to occupy and operate in the premises it had first chosen without additional cost.
Result:
Galaxy Partners created three no-cost solutions for EmployBridge to relocate its Aurora, Colorado facility. Galaxy’s creative negotiating resulted in $70,000 of actual savings over the lease term.
Significant Dispute Solved Without Litigation
Client:
Spectrum Brands, a $2 billion global consumer maker of batteries, lawn and garden, specialty pet, and shaving and personal grooming products.
Performance:
Spectrum acquired an environmentally impaired site in Bridgeport, Connecticut acquisition of one of its operating units. The company/through a consultant, entered into a contract for sale to an investor at a price approximately $10 million. When contract deadlines were missed and other terms apparently violated, the Company engaged legal counsel to attempt to compel the buyer to close its purchase. Litigation loomed.
The Company engaged Galaxy to bring the parlies back to the table, resolve the dispute without litigation if possible, and get the sale closed. Galaxy Partners analyzed the purchase and sale agreement and the specific circumstances leading up to the legal dispute. In part because of a prior business relationship Galaxy had with the buyer's legal counsel, Galaxy was able to reestablish trust between the parties and successfully restart negotiations.
Result:
Galaxy renegotiated key terms of the purchase and sale agreement, including an increase in the sale price. The transaction subsequently closed without further dispute within a total elapsed time of approximately ninety days.
Strategic Analysis Prevents Costly Expansion
Client:
HTE, Inc. (a unit of Sungard Data Systems), a developer and marketer of enterprise management, Internet and wireless software for public sector organizations and government entities.
Performance:
At the time of the assignment, HTE was experiencing tremendous growth and changing real estate needs. HTE engaged Galaxy to review and evaluate its immediate real estate needs and goals at the Lake Mary, Florida headquarters and regional levels. It had nearly completed negotiations with the landlord /developer to expand the building by 30%. Time was of the essence both in terms of meeting its office space needs and in responding to contractual obligations under the lease.
Galaxy evaluated the existing headquarters facility, interviewed key management personnel, prepared employee headcount projections by department, and worked with an architect to prepare preliminary programming estimates. Significant focus was given to qualitative space utilization issues, such as planned organizational and products changes and how departments interact. Galaxy’s analyses and findings resulted in specific recommendations on quantity and type of space needed, effective utilization of that space, and the most cost effective and least disruptive path to house HTE's professional workforce.
Result:
Galaxy developed a specific time phased action plan to coordinate real estate strategies with corporate growth and direction. HTE avoided a $10 million capital expenditure and positioned itself for effective growth strategies of its real estate portfolio.
On Demand, Outsourced Real Estate Support
Client:
Norrell (now Spherion), a $2 Billion recruiting and staffing company that provides temporary, temp-to-hire, direct-hire, and professional and executive recruitment services.
Performance:
Following the unexpected resignation of Norrell’s Real Estate Manager, Galaxy Partners was asked to function as Norrel’s real estate department until a replacement could be identified and hired. With two days’ prior notice, Galaxy stepped in and took over, encountering a significant backlog of transactions in process, dozens of unanswered field inquiries, and the loss of trust in the real estate department.
Galaxy provided a wide scope of services including: completing dozens of transactions in process, analyzing market consolidation opportunities, negotiating new leases and lease renewals, and identifying several new field office sites in multiple markets, including Atlanta, Chicago, Dallas, Los Angeles, and New York. Galaxy also developed an internal portfolio reporting system and served as liaison between executive management and field personnel.
Result:
Galaxy completed over 40 transactions in two months, restored trust with field personnel, and initiated strategies the Company used to organize and develop a client-service-oriented real estate department going forward.
$4 Million Lease Dispute Resolved
Client:
Spherion, a $2 billion recruiting and staffing company providing temporary, temp-to–hire and direct-hire help, in addition to professional and executive recruitment, to a variety of fields including Accounting/Finance, Human Resources, Engineering, Legal and Technology.
Performance:
Spherion engaged Galaxy Partners to evaluate its Atlanta landlord’s claim that Spherion owed $4+ Million in previously unbilled or incorrectly billed rent and operating expense escalations under Spherion’s 200,000 square foot Atlanta office lease. Galaxy analyzed Spherion’s lease, prepared a 10–year financial analysis of all lease charges since inception of the lease, and successfully negotiated a settlement with the landlord.
Result:
Galaxy negotiated a lease amendment settling all claims by the Landlord and saving Spherion over $3.8 million .
Recovering Lease Overpayments
Client:
WestPoint Home, a $1.7 billion maker of bed linens and home soft goods.
Performance:
WestPoint Home leased 145,000 square feet in a Manhattan office tower. For years the company engaged local professionals to audit the lease expenses billed by the landlord. WestPoint chose to engage Galaxy Partners to perform a cost and recovery analysis for the current year and prior year of the lease.
Galaxy Partners analyzed the original lease including its twenty-two amendments and performed a cost and recovery analysis. Galaxy’s painstaking analysis revealed several lease requirements the landlord failed to follow and discovered a number of billing discrepancies overlooked by the prior reviewers.
Result:
Galaxy identified nearly $1 Million in lease overpayments for the client. Galaxy represented WestPoint in negotiations with the landlord and secured full restitution of the overpaid amounts, resulting in a nearly $1 Million lump sum payment back to the client.
Recognizing Market Momentum to Triple Property’s Value
Client:
Manheim Auto Auctions, an automotive auction division of Cox Enterprises Inc. Manheim operates 130 auto auction facilities worldwide and is the world’s largest provider of vehicle remarketing services.
Performance:
Manheim chose Galaxy Partners to evaluate and determine strategy for the disposition or development of three surplus properties in Nevada, Illinois and Virginia.
Galaxy performed hands-on, comprehensive site evaluation studies in all three markets. One property in Las Vegas, NV showed substantial development potential. Galaxy then created a development plan for the site which demonstrated a value that was double the client’s initial expectation. A year later, the client elected to sell the property and again engaged Galaxy Partners. Using a creative marketing approach, Galaxy was able to secure the highest value for the property.
Result:
Galaxy Partners aided Manheim Auto Auctions in divesting a surplus property which sold for triple the client’s original valuation, setting a new benchmark for price-per-acre land value in its Las Vegas sub-market.
Confidentiality in Negotiations
Client:
Rayovac Corporation (Spectrum Brands), a global consumer products company with a portfolio of diverse products, including batteries, lawn and garden, specialty pet supplies and shaving and grooming.
Performance:
With the acquisition of the Remington Shaver Company in 2003, Rayovac decided to separate its global headquarters from its other corporate business units to facilitate the growth of the company’s global markets. Galaxy Partners was engaged to conduct a confidential three-state site location study in Miami, Dallas/Fort Worth and Atlanta.
Since Rayovac’s board required approval of final lease terms before making a public announcement of the move, this assignment remained confidential until nearly completed. Earning the trust of the selected property owner, Galaxy Partners worked through the entire headquarters transaction with the landlord without revealing the prospective tenant’s identity until just before the leases were concluded.
Result:
Galaxy Partners helped Rayovac relocate its global headquarters to one of Metro Atlanta’s most prestigious office buildings without revealing the company’s plans, enabling the company to fulfill one of its key strategic goals.
Unlocking the Value of Brownfield Property
Client:
WestPoint Home (formerly WestPoint Stevens), a manufacturer of bed linens, bath towels and other home soft goods.
Performance:
Upon making the decision to close its 1+ Million square foot bed sheeting manufacturing facility in Clemson, SC, WestPoint Home engaged Galaxy Partners to render a Broker’s Opinion of Value and develop a Marketing Plan for the complex. With over 14,000 feet of shoreline on Lake Hartwell and encompassing 300+ acres, Galaxy recognized the uniqueness of the property and surmised there could be a substantial demand for redevelopment.
Galaxy marketed the property using its structured bid process and provided transaction leadership throughout the assignment. Galaxy assisted WestPoint Home in every aspect, from prequalifying bidders to arranging a pre-bid tour of the facility and land. Galaxy helped analyze and evaluate the bids received and, in conjunction with WestPoint Home, determined the best proposal. Finally, Galaxy led negotiations between WestPoint Home and the purchaser.
Result:
Galaxy arranged the sale of the former textile manufacturing complex at a price substantially in excess of appraised value. The buyer is redeveloping the “brownfield” into a mixed-use and single family residential community with common recreational areas and marina.