International Paper Will Relocate HQ From Stamford to Memphis

"In light of the company's plan to become more focused and streamline our operations," says International Paper chairman and chief executive officer John Faraci, "we believe the timing is right to relocate our global headquarters to Memphis, because of the improved efficiencies that will result from having all of the company's leadership in one place." The company shifted its operational headquarters from New York City to Memphis in 1987 and currently employs approximately 3,000 people there.

The company's corporate headquarters was moved from Purchase, NY to Stamford in December 2000 shortly after International Paper's purchase of Champion International. The 400 Atlantic St. property was built in 1981 and served as the headquarters for Champion. International Paper subsequently entered into a sale-leaseback transaction for the. property with the Landis Group in a deal valued at $105 million. International Paper still has 10 years remaining on its lease, according to Scott Landis, a principal of the Landis Group.

International Paper's Sawyer said that the State of Connecticut issued a low-interest $1-million loan as an incentive for its move to Stamford in 2000. Since the company is now moving out of the Nutmeg State and breaching terms of its agreement with the state, it plans to repay the that sum, along with a 7.5% penalty.

Landis says his firm was not surprised at International Paper's decision to relocate since it announced a month ago that it was considering such a move. He adds that his firm has had no discussions regarding the space. The 500,000-sf property is currently 92% leased. UBS occupies approximately 200,000 sf and law firm Wiggin & Dana leases approximately 40,000 sf.

The Landis Group, which has developed, owned and operated approximately 15 million sf of space in the Northeast, recently opened a Marriott Residence Inn, which features 120 suites, in Carnegie Center in Princeton, NJ. Among its commercial holdings are 1370 Broadway and 1440 Ave. of the Americas in New York City.