PrimeMark Advisors

Case Studies & Partial Track Record

FormFactor, Inc. - Singapore 300k SF R&D Build to Suit Requirement - 2007

Corporate Profile
FormFactor, Inc. (Nasdaq: FORM) is an industry leader in the design, development, manufacture, sale and support of precision, high performance advanced semiconductor wafer probe cards. FormFactor delivers products that rein in the high cost of testing and provide the capability needed to test high performance, advanced semiconductor devices.

Business Challenge
In 2006, FormFactor, Inc. made the strategic decision to increase its manufacturing capacity and to bolster its customer service and support infrastructure in Asia, which included regional service and sales locations in Taiwan, Korea and Japan. Singapore was identified as the optimal location for this expansion due to its highly skilled workforce, favorable environment for intellectual property (IP) protection and beneficial operating costs. FormFactor engaged PrimeMark Advisors to assess the Singapore real estate market for a potential build-to-suit industrial manufacturing site, or an existing 300,000 square-foot industrial manufacturing building that could be retrofitted to accommodate their needs.

The Solution
PrimeMark Advisors conducted an extensive and in-depth analysis of the Singapore market. Working with the Singapore government, local brokers and engaging top business people in
Singapore, PrimeMark Advisors uncovered the best possible building sites and potential existing building retrofits. After reviewing these options, the Tampines area of Singapore was
determined to be highly favorable to the FormFactor business objectives. PrimeMark Advisors managed the procurement of a land lease onbehalf of FormFactor through negotiations with the Singapore Government. As a result, FormFactor entered into a 30 year land lease with the Singapore government on a site within the Tampines area to build their 300,000 square-foot
manufacturing site.  PrimeMark Advisors advised FormFactor, Inc. to enter into the 30 year up-front land lease payment, as opposed to a per-annum lease payment structure. FormFactor, Inc.’s decision would hedge against land rental rate bumps and also the devaluation of the US dollar versus the Singapore dollar.

The Results
FormFactor, Inc. started construction in September 2007 and anticipate ramping production in early 2009, employing approximately 1000 people. Since the time of the completion of their land lease and October 2007, the US dollar has decreased in value against the Singapore dollar and the land lease rental rates have in creased by 10%.


Micron - 100k SF Buildings 33&34 Boise, ID 2010

Successfully completed the sale of buildings 33 & 34 by illustrating to Saint Luke’s the benefits of purchasing and retrofitting our building vs. completing a greenfield development for their laundry operation.

Micron Warehouse - 42K SF Lease Renewal/Extension 1057, 1065, 1123, 1131 & 1147 Exchange St. 2010

PrimeMark Advisors was able to achieve a 20% rental rate savings for Micron on a lease renewal / lease extension we managed at Micron's Exchange Street Warehouse. The lease rate we achieved was 20% below what the landlord had originally quoted Micron. In addition, we achieved two termination options, one at 3 years, and one at 5 years. The 3 year termination option has a cost of $24K if exercised, and the 5 year termination option has no cost. Both of these, re-negotiated termination options, are below current market lease term standards.
The Exchange St. lease re-negotiation and renewal process resulted in a long term occupancy cost reduction for Micron's Boise warehouse use and maximum flexibility for future lease termination opportunities. We achieved these savings and flexibility by conducting a competitive market process, by understanding the landlord's financial position, and by analyzing and presenting the landlord's economic position if he did not take our proposal

Micron - Shanghai Lease Consulting - 2011

Assessed the new W19 Shanghai lease and advised Micron to lease the 7th flr. to avoid re-invest in lab space within three years. Advised Micron to lease a separate office for the Micron sales, marketing and admin along with the Numonyx sales and marketing group at Center City. This strategy lead to reduced lease costs, reduced Numonyx office lease disposition costs and Micron employee retention.

Micron - 100k SF 2125 Onel Drive San Jose, CA - 2011

Successfully sold Onel to an investor for $10M with a two year leaseback.

Prior to PrimeMark Advisors

Lease Dispositions

Invesco Funds Denver, CO - facing large reductions within their organization, Invesco Funds saw the need to reduce the occupancy of their 500K SF HQ location by 50%. Identifying large tenants in the market, we were able to secure a 250K sf credit tenant (Richmond Homes) to sublease space from Invesco Funds resulting in a 40% reduction in their overall lease obligation costs

Software AG Highlands Ranch, CO - with a long term master lease on their Highlands Ranch 80K sf regional office, and only 50% usage, we successfully sublet 30K sf to multiple tenants leading to a 25% savings on Software AG’s CO regional office lease costs.

SGI Mountain View, CA & Worldwide Locations - created a consolidation program that resulting in the disposition of several office and r&d facilities worldwide including the disposition of SGI’s 450KSF HQ lease in Mountain View, CA. Overall occupancy cost savings from the disposition of their HQ facility and other lease dispositions resulted in savings of $10M per year

Lease Acquisitions

SGI San Jose, CA – Upon successful completion of SGI’s 450K sf HQ lease disposition, we completed a 100K sf new HQ lease within San Jose, CA achieving a 15% rental rate reduction. 

Consolidation and Disposition of Acquisition Assets

Hewlett Packard Houston, TX developed a Metro Plan for HP’s Houston facilities and concluded that HP should consolidate operations and free-up 2 million sq. ft. in the North half of the former Compaq HQ campus for sale to an investor or an owner user. We successfully sold 1.4M sf of the property to Lone Star College within a depressed market.

Portfolio Analysis

JDS Uniphase – Our Portfolio Analysis resulted in the identification of several consolidation and disposition of under utlized lease assets that could result in a 15% occupancy reduction.

Hewlett Packard –Identified several owned assets that could be consolidated into leased or owned properties along with identifying under utilized assets for disposition. As a result of the portfolio analysis, we disposed of the old Compaq campus in Houston, TX (sold to Lonestar College) and the Cupertino, CA campus (sold to Apple).

FormFactor, Inc. - Completed a portfolio analysis of FormFactor, Inc. multiple leased property headquarters in Livermore, CA which lead to a 30% lease cost reduction through a lease re-structuring process.

Ecollege – Performed a multiple lease analysis of the multiple leased properties within the Denver metro area that resulted in a consolidation plan.

Nvidia – Performed a Silicon Valley portfolio analysis which resulted in the non-commencement

​