HLC Delivers Results
Security Deposit Reduction: $150,000
Security Deposit Burn-Off: + $50,000
Rent Savings: + $45,888
Free Rent Value (3 Months): + $145,366
Tenant Improvement Allowance: + $589,986
Additional TIA (Amortize): + $327,770
Tenant Saved: $1,309,010
The Challenge
Bright Event Rentals LLC sought a large-format industrial facility in San Antonio to support continued growth following a major acquisition. While the acquisition strengthened the company operationally, it also resulted in elevated debt levels on the balance sheet, which became a concern for the landlord during underwriting.
The landlord initially required an outsized $300,000 security deposit, creating a significant barrier to completing the transaction and tying up critical working capital. In a tight market with limited availability for spaces of this size, Bright needed an advisor who could identify the right facility and navigate landlord credit concerns.
The Strategy
The HLC team identified a 65,554 SF facility owned by Jackson Shaw that met Bright Event Rentals’ operational needs. While the building was a strong functional fit, the landlord remained focused on Bright’s post-acquisition leverage and maintained a conservative position on deal security.
HLC worked closely with Bright to present a comprehensive credit narrative, contextualizing the acquisition-related debt and highlighting the company’s operational strength, cash flow, and long-term growth plan. Leveraging this narrative alongside market data and deal structuring expertise, HLC pushed for a revised security structure that balanced landlord risk while preserving Bright’s liquidity.
The Outcome
Through strategic negotiation, HLC successfully cut the proposed security deposit in half, reducing it from $300,000 to $150,000. Additionally, HLC negotiated a $50,000 security deposit burn-off provision, requiring Jackson Shaw to return $50,000 to Bright after 24 months of on-time rent payments.
Combined with three months of free rent and a substantial tenant improvement allowance, the final lease structure significantly improved Bright Event Rentals’ upfront cash position while satisfying the landlord’s credit concerns. This transaction enabled Bright to secure a critical San Antonio location without compromising financial flexibility following their major acquisition.
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Contact Holt Lunsford Commercial today | 972.241.8300
Harrison Davis | 972.421.1974 | hdavis@holtlunsford.com
