SUNOCO

SUNOCO SUNOCO
Property:
Multiple Properties and Engagements

Services:
Brokerage Services, Development Consulting, Financing, Asset Management, Corporate Services and Tenant Representation

Highlight:
Our relationship with Sunoco, formerly Aristech Chemical, dates back over a decade. In that time, we’ve brought all of our services to bear in tenant negotiations, development, and consulting over the course of four incredibly successful transactions resulting in millions of dollars of client savings, and exciting new construction initiatives.

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Project Summary

SUNOCO (formerly Aristech Chemical Corporation)

Pennsylvania Commercial Real Estate, Inc. has now worked with Aristech and their new owner, Sunoco on four different occasions. In our first assignment, we helped them recast an unfavorable lease at their Monroeville, PA Research Center. No one within Aristech, including their Chief Financial Officer and President, had been able to make any headway with the existing landlord.

We took the assignment on a pure contingency basis, offering to receive a percentage of any savings achieved for Aristech. We first negotiated a savings in excess of $3 million for a 10-year renewal term. This involved many trips to Buffalo, New York to visit with the building’s owner. After the renewal was renegotiated on a10-year basis, Aristech’s Board came to us and requested that we attempt to reduce the term of the lease extension. The ultimate result was a reduced rental rate and reduced term exposure to a third of what it had been.

Their confidence in us was further demonstrated by their awarding Pennsylvania Commercial a large development consulting assignment to assist them in developing a new Polypropylene Technical Center. Pennsylvania Commercial performed all the tasks necessary to have a state-of-the-art facility designed and financed with low cost public funding. Aristech’s new $20 million facility was completed in August of 1997.

Pennsylvania Commercial was then awarded the contract to relocate Aristech’s Corporate Headquarters in June of 1999. After a 3-month search, evaluation, and negotiations, Pennsylvania Commercial was successful in arranging a new cost efficient headquarters at One Oliver Plaza, which essentially cut their cost of housing in half.

In the latter part of 2000, the owner of Aristech, Mitsubishi Corporation, sold the entire company to Sunoco, Inc. Sunoco has retained Pennsylvania Commercial to provide consulting services for their Research Center in Monroeville and their Tech Center located at Pittsburgh Technology Center in Pittsburgh.

Please contact David Siporin, former Managing Director, Organizational Development at Aristech (currently at Lord Corporation at (919) 468-5979 ext. 6225) for a recommendation.