PHH Mortgage Inks 97,000 SF Lease Deal For New Facility In Buffalo, NY

Jackson Cross Partners, LLC (JCP) today announced that PHH Mortgage Corp. (PHH) has agreed to a lease on a 97,000 SF new build-to-suit facility at 1760 Wehrle Drive in Amherst, NY, with plans to move its soon-to-be-acquired mortgage servicing business currently located in Depew, NY. JCP’s Louis Battagliese and John Morrissey, along with David Schiller of Pyramid Brokerage of Buffalo, NY, represented the Mount Laurel, NJ based company. Terms of the deal were not disclosed.

As part of the agreement announced in May 2012 between HSBC Bank USA, N.A. and PHH Mortgage, HSBC will outsource its mortgage processing and servicing business to PHH, and transfer approximately 400 former HSBC employees to PHH Mortgage. PHH was seeking a site that could accommodate its existing operation and a potential future expansion. PHH decided on the Buffalo market because of their ability to retain an experienced workforce, assisted by financing and tax incentives provided by the State of New York and the Amherst IDA.

The new PHH building will be developed by Zaepfel Development of Amherst and is scheduled for occupancy in the fourth quarter of 2013. The 97,000 SF two-story facility will feature an open floor plan design and will have capacity for up to 800 employees. The building will also include underground parking.

“This project involved a number of complex variables,” said Battagliese, “location, access, expansion and parking were all critical to the decision process. The Zaepfel team worked through a number of challenges, and was able to deliver the best solution for PHH.”