Situation:

L.T. Apparel Group, a leading children’s apparel manufacturer, was faced with an approaching lease expiration. Having celebrated their 50th year in existence and the 15th anniversary in their existing space the family-owned company was looking to utilize the opportunity to reposition their NYC lease holding for the next chapter in their history. Having gone through three rounds of expansion in their New York City Headquarters as well as the absorption of a portion of the NY based staff in to the company’s New Jersey administrative facility, the current layout and size was not in line with today’s operating efficiencies. As a result, they needed to consolidate, modify and upgrade their existing space or find a new suitable location. They were interested in exploring the possibility of a different space in New York as well as examining the option of leasing space in New Jersey or in one of the surrounding Boroughs.

Action:

Taking every opinion into careful consideration and during an ensuing two year period, Intrepid and a partnering firm explored more than 50 buildings in complete earnest and with enduring dedication. The search covered buildings in Manhattan, Brooklyn, Queens and New Jersey. Over the life of the project Intrepid compiled close to 300 financial spread sheets in total for a multitude of spaces and worked with architects to produce 5 test-fit floor plans. The Intrepid team remained in close communication with L.T.’s board, which, as a family-owned company included three generations of family members.

Result:

After exploring the multitude of choices presented to them, the company’s Board decided that their best option was to remain in their current Manhattan location. They had considered the move to New Jersey, however the quality of space there was not as high, and it removed them from the City’s children’s apparel zone. Their two additional concerns: losing valued employees if their location changed and the fact that they still required a Manhattan showroom, led to their decision to stay in their current location. At this point, they still faced the problem of downsizing their space to appreciate New Age efficiencies. Intrepid was able to negotiate a long-term lease with a give-back of space that reduced their rent, plus the added value of several months of free rent, a construction allowance that enabled them to modernize their facility with no out of pockets investment. L.T.’s board was more than happy with their new lease and all its benefits and felt satisfied they had explored all their options.