SALEM COMMUNICATIONS CORP.

The Challenge Salem Communications (NASDAQ: SALM) is a publicly held communications company who desired to acquire a building with a line-of-sight to Bay Area radio towers. A building that met their scope and line-of-sight did not currently exist in the market. Michael Harrison was contracted to evaluate the constraints of Salem’s Fremont radio station, prepare an analysis of potential purchase options and new construction opportunities, and examine opportunities in the greater Bay Area market.

After thorough analysis, Michael determined that 1701 Harbor Bay Parkway, a net rentable area of 57,874 square feet zoned CM-PD, was an ideal solution. Square footage was available for lease in the building and met the scope required. Although Salem desired the building, they did not have the capital allocated for a larger building nor the leasing expertise to manage multiple tenants.

The Solution Through his long-term relationships in the market, Michael Harrison raised the additional funds. He completed an investment prospectus that analyzed the projected cash flow, projected property resale and present value, while negotiating on Salem’s behalf. An investor group was poised and ready should Salem decide to pursue the opportunity. A parallel analysis of lease opportunities was also completed, while evaluating the restructure, renewal and expansion of their current facility in Fremont. With every option at hand, and with Michael’s expert guidance, Salem ultimately chose to preserve capital, move costs and renew in their existing facility.

"The site you found in the Harbor Bay Business Park was ideal for our needs. I met with four other firms, including Studley, Staubach, and Grubb & Ellis. Your presentation and follow-up proved to me that I could count on you. Not only did you know the marketplace, and offer services that were of interest to me, you worked hard and cared about me. That’s why I plan to use you again in three years when we plan to move into a new facility."

Ken Miller
General Manager
Salem Communications
KFAX San Francisco, AM 1100
(SALM : NASDAQ)