About Arden Hills (UTC)
When the opportunity was presented to Todd Interests, UTC Fire & Security was the tenant and had only 14 months left on their lease. The tenant had a one-time opportunity to renew with a 5-year lease, and they chose to give notice.
Todd Interests found the tenant’s lack of desire to renew interesting, because the building finish out was highly customized to their needs. Upon further due diligence, it was discovered that the tenant was going through a major acquisition and realignment of business interests. The decline to renew was not due to a lack of interest, but rather a lack of corporate strategy at the time.
Six months after acquiring the property, Todd Interests negotiated a new signed 10-year lease.
The building was acquired well below replacement cost and sold at a price point and cap rate commensurate with the institutional credit of the tenant. The building was held for 12 months to benefit from capital gains taxation.
“Six months after acquiring the property, Todd Interests negotiated a signed 10-year lease occupying 100% of the property.”
