Nearly 25 businesses that were facing a Friday deadline to move out of a Gold River office building can stay home for the holidays, and beyond, thanks in part to some quick action by Sacramento-based office developer Business Central.
About 50 businesses at 2377 Gold Meadow Way, Suite 100, received formal, written notice that the center where they leased space would be closing in a Nov. 2 letter from Regus Management Ltd. Regus is a multinational corporation that provides office accommodations in business centers worldwide.
The letter said Regus would not be renewing its lease agreement with the Roseville-based landlord and would meet with affected businesses about moving to a nearby Regus location in Folsom. They were told they would have to move out by Friday.
The Gold River firms had been making lease payments to Regus, which in turn had been making lease payments to Roseville's Pacific Capital Management, owner and manager of the property.
Some businesses objected to what they called short notice, the prospect of moving at year's end and a potential scramble to secure new office furnishings and equipment. The businesses, which were not obligated to stay with Regus, also said changing phone numbers and addresses would likely create confusion among clients and customers.
Grant Greenberg, North American spokesman for Regus, said Friday that about half the businesses in the building ultimately moved to other area office sites overseen by Regus, and a handful of others are "still undecided."
The businesses that wanted to stay which included some "virtual" businesses operating from remote sites but using meeting, phone and office services in the building were assisted by Business Central, which developed and previously occupied the Gold River building.
Tom Tenge, co-owner and executive vice president of Business Central, was among those who stepped in to work out a deal that would enable the businesses to stay. He said Pacific Capital acted as a go-between in negotiations between Business Central and Regus.
Tenge said a deal was worked out for Business Central to purchase assets and maintain the businesses' on-site operations through the end of the year. He said Business Central will take over completely on Jan. 1, having agreed with Pacific Capital on a 10-year lease with an option to purchase the site.
Tenge said he is working with the remaining businesses on post-Dec. 31 lease agreements.
Greenberg said Regus had sought a long-term deal with Pacific Capital "but it just didn't work out and we had other locations in the market that we wanted to offer to our clients."
He said Regus helped move clients who left the Gold River building.
Tenge said he was "glad we were able to work something out for those who did stay."
He added: "We worked out a deal with some numbers to buy everything in the place and just to keep the peace and keep (the business that wanted to stay) from freaking out. There was so much stress all over the place. I'm just glad everybody gets to stay to the end of the year until we take over."
Tenge said, "We have an option to purchase, which is what we intend to do but first, we have to take a good look at everything and stabilize the property."
Tenge said the process of replenishing the building's tenant base could take "up to one or two years."
Business Central owns other office sites in Sacramento and Folsom.