North American Casualty Co.
The Challenge
Applied Underwriters, Inc. (AUI) expended $23M on state-of-the-art tenant improvements to create a highly functional and beautifully designed headquarters that successfully incentivized employees to return to the office. While these custom interiors significantly enhanced the workplace experience, they represented a non-recoverable investment with no residual value. AUI sought to reclaim the capital tied to these substantial space improvements, enabling them to redirect funds toward higher-value initiatives aligned with their long-term business goals.
What We Did
Dolfin provided a 12-year, fully amortizing, credit-based TI Lease for AUI. The structure was tailored to:
- Reimburse the full $23M spent, delivering cash to AUI to deploy to other investments.
- Provide predictable, fixed payments with a transparent, credit-based lease structure.
Dolfin's financing solution allowed AUI to recover their investment and reallocate their capital to strategies that grow their business and serve their long-term goals.
The Outcome
- Enhanced Balance Sheet: Strengthened AUI's balance sheet by improving liquidity.
- Improved ROI: AUI redirected funds toward higher-yielding investments.
- Transparent Payments: Financing TI through Dolfin allowed AUI to decouple TI from their space lease, increasing visibility of true costs.
- Money In The Walls: Financing allowed AUI to find and repurpose capital used to build out their office space — effectively finding "money in the walls."
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