Delta Airlines Call Center
The Delta Airlines Call Center was purchased in February 2004 at a price of $11 million. This was a newly constructed call center containing 49,650 square feet, with a surface parking area to accommodate approximately 500 cars (10 spaces/1,000sf) situated on 6.3 acres. The property was in an excellent location in Miramar, Broward County, Florida, and this facility was to serve as the Spanish language call center for the airline. Recognizing that Delta Airlines was a sub-par credit, Falcon obtained a $2.5 million letter of credit to support the lease. Delta did, in fact, go bankrupt a year and a half after the lease was signed and rejected the lease in court a year later. However, Falcon was quickly able to obtain Royal Caribbean Cruise Lines as a new tenant on a ten-year lease, using the funds from Delta’s letter of credit to cover leasing costs. The property was sold in December 2007 at a 6.97% capitalization rate, equal to a price of $14 million, and an Internal Rate of Return of 11.17%.