Dayglow, LLC Success Story
- 7711 E. Pleasant Valley Road, Independence, Ohio 44131
- Client: Dayglow, LLC
- Square Footage: 130,200 SF
- Real Estate Type: Flex
- Services: Lease Negotiation, City Incentives
Project Overview:
Eliot Kijewski, SIOR and George J. Pofok, CCIM, SIOR strategically navigated the complexities of the lease negotiations on behalf of Dayglow, LLC. They worked closely with the landlord and their broker to structure a deal that balanced the landlord’s need for financial security with Dayglow’s requirement for a cost-effective lease structure. By leveraging market expertise and industry relationships, they negotiated a below-market rental rate, a phased security deposit structure, and a significant free rent period to Dayglow. Additionally, they facilitated discussions between Dayglow, JobsOhio, and the City of Independence, securing incentives to help offset tenant improvement costs, moving expenses, and payroll commitments. Their ability to align all parties ensured that the required build-out and infrastructure improvements would be completed to meet Dayglow’s corporate headquarters vision.
Challenge:
Dayglow, LLC, a newly formed entity resulting from a private equity acquisition of Spectrum Diversified, faced several hurdles in securing a 130,200 SF space with a mix of office and warehouse functionality, along with trailer parking. However, as a newly established entity with limited credit history, the landlord required a significant security deposit to mitigate financial risk. Additionally. the space needed substantial modifications, including a full office renovation, a new corporate front entry, selective racking removal, and the addition of three truck docks. Compounding the challenge, Dayglow’s existing sublease was set to expire in July, but they required early possession by April to ensure a smooth operational transition, necessitating the negotiation of a rent free-period.
Solution:
Through strategic negotiation and collaboration, Dayglow, LLC successfully secured a long term lease with renewal options in a fully customized space that meets their operational and branding needs. The landlord committed to extensive renovations, including a modernized office area and upgraded warehouse functionality, enhancing Dayglow’s ability to operate efficiently. The tenant’s up-front costs were significantly reduced through negotiated incentives and rent concessions, while the landlord benefited from a long-term, stable lease agreement. By overcoming timing constraints and financial hurdles, Kijewski and Pofok position Dayglow for a seamless transition into their new headquarters while maximizing cost savings and operation efficiency.
Results Achieved:
“Eliot Kijewski and George Pofok were instrumental in securing the ideal headquarters space for Dayglow, navigating complex lease negotiations with creativity and expertise. They structured a deal that provided us with a below-market rental rate, a phased security deposit, and key incentives to support our transition. Their strategic approach ensured a seamless move and positioned us for long-term success in our new facility.”
– Nick Morisoe | Chief Executive Officer