Per the lease terms, one of Denali Investment’s clients was required to provide a surety bond to guarantee the completion of their office construction project before the landlord would pay out Tenant Improvement (TI) dollars to the client. The cost of the surety bond, to be issued by an insurance company, was going to be $8,700. Denali approached the client’s lending institution and instead negotiated a Letter of Credit issued by the bank on behalf of the landlord; this Letter of Credit served to replace the necessity to get the surety bond. The cost of the Letter: $0. The savings to the client: $8,700!!! Another mountain moved for our client!
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