THE CHALLENGE:
Bodine faced a complex real estate situation. They had a $6 million contract from a REIT for their 367,000 square foot Chicago headquarters, but needed to optimize their space requirements to 130,000 square feet for headquarters and manufacturing. Additionally, they sought to minimize their Capital Gains Tax burden.
THE SOLUTION:
Kevin Tobin stepped in and successfully sold Bodine’s headquarters, exceeding the REIT contract price by several million dollars. He then negotiated a lease for Bodine with the new building owner, achieving a $2.5 million savings compared to other options, even with City, County, and State incentives. To further maximize savings, Kevin guided Bodine through a 1031 exchange, identifying and purchasing a new office building, resulting in over $2.8 million in tax savings.
“Kevin helped us recognize the full value of our corporate headquarters and at the same time saved us several million dollars in lease expense and capital gains taxes. We were very pleased.”
Jeff Bodine, Executive Vice President Bodine Electric Company
