Engagement Restructures Significant Industrial Square Footage, Reducing Long-Dated Lease Exposure While Preserving Operational Continuity

ZCG Consulting (“ZCGC”), the business consulting services platform of Z Capital Group (“ZCG”), through its Real Estate Division, today announced the successful renegotiation and restructuring of a large-scale industrial lease portfolio on behalf of a sponsor-held private equity firm. The engagement reduced long-dated lease exposure across the portfolio while maintaining uninterrupted operations at multiple operating facilities.

The mandate encompassed a legacy lease portfolio totaling more than 2 million square feet, including industrial, distribution, and logistics facilities supporting supply chain operations across the west coast and southeast regions. Several of the leases carried escalating rent obligations extending through 2031, creating material long-term contractual exposure.

ZCGC was retained to evaluate strategic alternatives across the portfolio and deliver a permanent, market-aligned solution under current conditions. Through a structured renegotiation and market-executable assignment strategy, ZCGC successfully restructured approximately 100% of total leased square footage, resulting in the elimination of approximately $55 million in future contractual lease obligations.

Rather than pursuing temporary concessions, the engagement focused on permanent risk reallocation by aligning landlord outcomes with realizable, risk-adjusted economics. ZCGC conducted a forward-looking assessment of market demand, vacancy and downtime risk, enforcement alternatives, and timing considerations, reframing negotiations away from contractual face value and toward executable outcomes.

Where appropriate, ZCGC introduced fully underwritten replacement tenant solutions with immediate operational readiness, enabling clean and permanent assignments without disruption. In parallel, ZCGC coordinated real estate execution with supply chain and operational sequencing to ensure continuity of inventory flow, distribution, and service levels throughout the restructuring process.

The outcome delivered balance sheet stabilization, immediate asset stabilization, and uninterrupted operations across the affected facilities, while permanently removing residual lease exposure from the portfolio.

About ZCG Consulting

ZCG Consulting is the business consulting services platform of ZCG, providing integrated advisory solutions across real estate, supply chain, strategic finance, and operational transformation. The firm deploys cross-functional teams to deliver execution certainty on complex balance-sheet and operational challenges.

About ZCG

ZCG is a leading, privately held global firm comprised of private markets asset management, business consulting services, and technology development and solutions. ZCG is headquartered in New York and operates with approximately 400 professionals across five countries. For more information, visit www.zcg.com or www.zcgc.com.

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