Sallie Mae spin-off Navient to open headquarters on riverfront

Navient, the spin-off from student lender Sallie Mae, has chosen Wilmington for the location of its corporate headquarters. Sallie Mae, the consumer banking business, will remain at its existing headquarters facility in the Stanton-Christiana area south of Newark.

Navient signed a seven -year lease with Pettinaro to occupy approximately 40,000-square-feet of space in the Star Building,  at 123 Justison Street on the Wilmington Riverfront. The space aims to keep company’s current employment base in Delaware and provide  room  for additional growth. Terms were not disclosed.

Sallie Mae spokesperson Nikki  Lavoie  said the  new space will be built out in coming months  with a goal of moving at least 120 employees to the new  headquarters by the end of 2014. Until that time, future Navient and Sallie Mae employees will share space at 300 Continental Drive in Newark.

“I am glad that Navient chose the city of Wilmington as headquarters for this growing new company,” said Governor Jack Markell in a press release announcing the move.  “Wilmington is a hub for many financial services companies, and Navient will fit right in. We look forward to working together to help Navient grow and expand in the years to come.”

The Riverfront location was selected for its suitable building infrastructure, proximity to the Amtrak train station and convenience to quality of life attractions for employees, according to a Navient release.

“I am pleased by Navient’s decision to establish its headquarters from offices near the Wilmington Riverfront, and we look forward to welcoming them to the city of Wilmington,” said Mayor Dennis P. Williams. “This is a strong signal that Wilmington remains a good investment option for businesses and is a preferred location to settle. The city looks forward to working with Navient, and we wish them much success.”

The announcement comes about a month after executives unveiled Navient as the new name for the company created by the strategic plan to separate Sallie Mae into two, publicly traded entities. The company will provide customer service to assist 12 million customers to successfully repay their education loans. Navient will also continue to perform asset recovery services for more than 1,500 government, higher education and business clients.

“When Sallie Mae chose Delaware for its headquarters, we were attracted to the community and workforce,” said John  F. Remondi,  CEO of Sallie Mae. “As we plan for the future of Navient, we know the Wilmington Riverfront will be an ideal location for our employees to work, helping our clients and customers navigate a path to financial success.”

Navient will also continue to lease space in the Iron Hill Corporate Center,  at 800 Prides Crossing in the Ogletown area south of Newark and near the Sallie Mae headquarters.

Based on recent estimates, Sallie Mae employs nearly 400 people in Delaware, Lavoie said  Initially, Navient will employ about double that number.  Both companies are expected to create additional jobs, she added.

Sallie Mae employs more than 7,200 people nationwide, 1,200 in Delaware. Once the separation is complete, Sallie Mae’s consumer banking business will continue to trade on the NASDAQ under the ticker symbol SLM, and Navient will trade as NAVI.