Transaction Snapshot
At Stack Industrial Partners, we don’t just negotiate leases—we protect businesses. For Kolstad Company’s Blaine lease—50,160 square feet plus one acre of outdoor storage—we took a highly strategic tenant‑representation approach and secured lease terms that saved the client $650,000 in excess cost and risk. This case study details the challenge, our strategy, and the results that drove meaningful value for the client.
The Challenge
A buyer was acquiring a highly specialized industrial business operating out of an existing facility. The acquisition required the buyer to negotiate a new long-term lease while terminating the seller’s lease, securing financing, and managing economic uncertainty. Initial direct negotiations with the landlord resulted in market-aggressive terms that exposed the buyer to elevated rent, operating costs, and significant capital risk.
Our Approach
Stack Industrial Partners was engaged mid-process to represent the tenant and restructure the negotiation. We benchmarked the landlord’s proposal against market data, toured alternative properties to maintain leverage, and aligned lease economics with the acquisition timeline and financing requirements. Despite the building’s specialized nature, leverage was created through disciplined strategy and market positioning.
The Results
| Category | Amount |
|---|---|
| Rent & Outdoor Storage Savings | $205,000 |
| Free Rent Secured (2 months) | $74,000 |
| CAM & Tax Reduction | $151,000 |
| HVAC Capital Expense Avoided | $220,000 |
| Total Value Created | $650,000 |
The Value
This transaction demonstrates that real estate decisions during acquisitions directly impact cash flow, financing, and long-term risk. Without tenant representation, the tenant would have absorbed higher rent, higher operating expenses, and six-figure capital exposure. Tenant representation ensured the lease supported the business rather than constraining it with avoidable cost and risk.
