Knoxville News Sentinel | Knoxville, TN
Size:
188,139 SF
Sector:
Media/Newspaper
Service:
Sale-Leaseback
Sale-Leaseback Turns into a Win-Win-Win
Gannett Co., Inc. (GCI), a long-time portfolio client of BellCornerstone, engaged the team to package and sell four (4) large printing/distribution facilities in Jackson, Mississippi; Fayetteville, North Carolina; Providence, Rhode Island; and Knoxville, Tennessee. The complexity of this request was the juxtaposition of GCI’s need to lease back specific portions of production space in each building, while giving up significant portions of office space.
This offering included two requirements: a long-term leaseback that would allow Knoxville News to continue production of its 136-year-old newspaper and a reduction of its occupancy footprint by approximately 75,000 SF.
The BellCornerstone Approach
Through the early marketing stages, BellCornerstone uncovered significant interest in the Knoxville building from investors, but more importantly from prospective end users in the local market. As a result, BellCornerstone recommended that GCI pivot strategies and sell the property as a stand-alone location. The BellCornerstone Team immediately began targeted outbound phone calls to the local market’s top employers and potential end users. These efforts generated fifteen interested local buyers in addition to the national investors who were interested in the initial four-property portfolio. With newly identified end users, the BellCornerstone Team created a competitive bidding environment and secured multiple offers for the Knoxville News Sentinel Building.
The Result
BellCornerstone negotiated with several prospective buyers to achieve the maximum sale price and the best possible leaseback terms for GCI and the Knoxville News Sentinel. The deal closed 61 days from the start of negotiations, resulting in the sale of the building for $8.5 Million and a 10-year leaseback, which included a no-cost termination option and two 5-year renewals. This leaseback was critical for the Knoxville News Sentinel because it secured the newspaper’s future in the local community while allowing the new local Buyer the opportunity to grow his workforce and thrive in the Knoxville market. This sale-leaseback also resulted in GCI being able to monetize a significant asset while dramatically reducing annual operating expenses.
Real Feedback. Real Results.
What Our Clients Say About Working with BellCornerstone.
At BellCornerstone, we know that our success is built on the success of our clients. That’s why we listen first, act fast, and work smart — delivering measurable results that speak for themselves. With over 40 years of experience, service across all 50 states and Canada, and an 83% client retention rate, we’re proud to be the trusted partner for industry leaders nationwide. But don’t just take our word for it — hear what our clients have to say.

Santa Fe New Mexican
Patrick Dorsey
Publisher
“I have worked with BellCornerstone on many projects since first meeting them in 2013. In those 10 plus years they have earned my total trust in assisting me with various real estate transactions across the country in many different markets. I came to think of them as my in-house real estate partner as we worked together to find space to lease, lease out existing space to third parties, repurpose space to maximize rental income or save expense, sell buildings and many other building and real estate related transactions. They have been great in not only executing on our needs, but becoming a trusted consultant in providing suggestions and alternatives to more efficiently manage our space and generate positive economic impact.”

Namekagon Newspaper Services
John Mathew
President
“BellCornerstone has been and continues to be, an outstanding partner for my clients and me. BellCornerstone is a no-nonsense, down-to-earth firm with a unique understanding of the commercial real estate market especially as it relates to the newspaper industry. Bell works only for its client in a specific market and does not represent competing interests. Our relationship over the past four years has been very mutually beneficial.”

Southern Newspapers
Leonard Woolsey
President
“BellCornerstone should be everyone’s first stop when making decisions about building inventory. Professional, knowledgeable and highly effective. Make the call.”

GateHouse Media
Steve McCauley
Facility Manager
"GateHouse engaged BellCornerstone as a vendor for the review of a single transaction in Florida. BellCornerstone's recommendation & creative solutions directly resulted in saving millions of dollars, reducing term, and right sizing our operation. BellCornerstone now represents our portfolio nationwide and is considered among our most trusted advisors."

TCGplayer
Rod Mayette
VP of Finance
"BellCornerstone's knowledge of the market and thorough analysis of our options, along with their expertise and guidance, enabled us to achieve all of our goals. They found us a property that wasn’t officially on the market in a building where space was not initially vacant. The cost-benefit analysis that BellCornerstone's unique approach provided to our company was tremendously valuable. As a result of BellCornerstone's work, we were able to commit more of our time and resources to growing our business and brand."

Knoxville News Sentinel
Joel Christopher
Executive Editor
“This is an ideal relationship for everyone. [The Buyer] gets a great location to expand his rapidly growing, locally based businesses, Knox News locks in a long-term deal for its production and office needs, and other businesses get an opportunity to lease in a location with tremendous access to downtown, the airport and the interstate system.”

ConServe
Mark Davitt
CEO & President
"It is a pleasure to deal with true professionals who deliver value, and Mark Bethmann is such a professional."

EO Media Group
Heidi Wright
CEO
“BellCornerstone is uniquely positioned to assess, market and sell under-utilized facilities in the newspaper industry. Their strategic approach and market analysis ensured that our property received maximum exposure and attracted serious interest. Such was the case with our Pendleton property which Bell sold at full value in less than 120 days. Brian and Aidan offered invaluable advice that guided us through the complexities of the real estate transaction. Their expertise was evident in their ability to navigate negotiations, legal considerations and logistical challenges with ease.”

News Media Corporation
JJ Tompkins
President
“When I assumed leadership at NMC a few years ago, my primary goal was to optimize our resources. Partnering with the BellCornerstone team, led by Aiden Cleghorn and Brian Rossi, we developed a comprehensive plan to address our underutilized real estate. The execution of this plan, guided by their expertise and dedication, has allowed us to wipe out almost all of our debt and focus on what we do best, media operations, serving our communities with quality journalism and growing advertising. I would highly recommend setting up a call with BellCornerstone.”

Lakway Publishers, Inc
Michael Fishman
President
BellCornerstone has been a wonderful partner in helping right-size our business. Their experience working with others in the industry has provided a unique perspective in our strategic initiatives. Their attention to detail and sincere concern have been paramount.

Pharos
Kevin Pickhardt
CEO
“The level of commitment that was made to create this unique technology campus experience, combined with a focus on employee wellness and community sustainability, is the perfect fit for Pharos as we further our development as a benefit corporation and solidify our foundation for growth.”

Rust Communications
Jon K. Rust
President
“We’ve ‘right-sized’ several of our operations into smaller buildings and sold old press plants. BellCornerstone has been a pleasure to work with: straightforward, responsive, creative and successful. We’ve worked with other firms, but the BellCornerstone team is the absolute best in keeping us up to date on all aspects of the process. They’re also fun to work with!”




