MSKCC_RFP_5-6-2020-6-55am_ML

SUBMISSION TO MEMORIAL SLOAN KETTERING CANCER CENTER FOR OWNED AND LEASED PROPERTIES

Scope:

1. Examine and forecast changing market conditions with respect to MSK’s markets of interest in New York City, Long Island, Westchester County, and New Jersey; including how these may impact MSK’s current assets. Cushman & Wakefield has incredibly deep market penetration in ALL of the markets where MSKCC has facilities. In the appendix to this submission, you will see the overlapping locations of our offices. While Cushman & Wakefield aligns well with MSKCC’s locations, we align even better in the service lines and market leading results in each of MSKCC’s markets. In short, we have the horsepower and the talent to do an exceptional job on this project for MSK- CC. Further, as some elements of our report will be predictive, our research department will play a pivotal role and is regarded as best in class nationally and within the Tri-State Region. 2. Provide the current and projected market value of MSK’s physical assets based on the list we provided to you, including property, improvements, and unused development rights (if any). Cushman & Wakefield’s Valuation & Advisory practice is regarded as the best in the United States. Its center of gravity is here in New York City, where we will be able to utilize Rob Nardella (Regional Manager and known well by MSKCC), John Feeney, John Katinos, Naoum Papagianpoulos, and Gerald Rasmussen to perform the highest quality appraisals on the owned assets. Gerald is universally acknowledged as the foremost expert in valuing clinical medical facilities. Ed Donnery and I will evaluate every lease within your portfolio, summarize it, and project it forward so that you and your team have up to date intel on the cost and value parameters of all of your real estate holdings. Ed is one of our co-heads of our Strategic Advisory Group. Ed and Jennifer Casey, field research and consulting, will support our analytics which in every instance will be customized for MSKCC. We will utilize market experts in marking each lease to market utilizing our comps database, our market intel of pending transactions, as well as our research department for the predictive elements that will be so important in getting this right. 3. Evaluate for each location, whether its asset-related costs are favorable with its market value. Our ability to perform this work is unparalleled as each member of our team will work together, HOWEVER, the appraisals of the owned properties will be done in a completely unbiased manner without regard to marking them to market. Our appraisals are always independent. We will draw market information in forming our valuations in consul- tation with our investment sales teams, lead by Doug Harmon and Adam Spies. They are regarded as best in class in New York City. For New Jersey, we will use Gary Gabriel (I am working with him on the Princeton University account and regard him as best in class in New Jersey). Gary’s experience and probing intellect are impressive, and he would be a natural fit for MSKCC. On Long Island, we will use David Pennetta. David is deeply entrenched in both the Nassau and Suffolk markets and has sold more buildings in Suffolk County than any other broker on Long Island. In Westchester, we will work closely with Maureen O’Boyle. She has deep healthcare experience in Westchester County and worked closely with me on the Columbia University Account. Maureen is reliable, accurate and smart! 4. Identify the replacement opportunity cost of each asset, and ease with which a replacement may be found in future. Some assets will be relatively easy to replace and some, owing to their size and unique nature as well as the overall size of their submarkets, will be more challenging. We can and will be able to depict that information for you in clear, straightforward prose citing examples where necessary. Based on some of the intricacies of construction costs, we will use our Project Management Team, lead by Richard Jantz and Christina Fish, making certain that we get the capital costs right! 5. Create a baseline financial model of status quo projected asset-related expenses, including tax projections where applicable. Ed Donnery and his team will create highly customized, simple lease cost analyses for MSKCC. Ed and his team have a proven ability for client specific customization which will be essential as we work through all elements of scenario planning. Further, whenever MSKCC transacts a sale leaseback for less than 30 years in New York City or for any term in NJ, Westchester or LI, the owned properties necessarily go back onto the tax roles. Ed and his team will research and iterate, when necessary, the likely tax implications of every property within the MSKCC constellation of assets.

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