MSKCC_RFP_5-6-2020-6-55am_ML

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

6. Develop multiple proforma scenarios of the financial implications for levering various dispositions and/or acquisi- tions. Ed and his team live and breathe this sort of work! Getting this right, however, requires all of the disciplines we are bringing together in order to fully service MSKCC. 7. Proforma the sale versus leasing of any owned targets for disposition. This will be done in consultation with the investment sales professionals mentioned above. We have a robust not-for- profit practice (including Cornell, Columbia, NYLAG, National Audubon) and are very fluent in creating these models which focus on interest rate sensitivities, growth rates and terminal cap rates. 8. Formulate KPIs, and benchmark against other leading companies/institutions. These will be provided and formulated by Lorie Damon. Lorie is Cushman & Wakefield’s Healthcare Practice Group lead. Lorie brings New York State and National expertise in developing relevant KPIs for many of the firm’s clients, both in healthcare (the majority of which are for-profit healthcare institutions) and for corporate clients (blue-chip). In our experience, many large healthcare providers value certain KPIs more than others. Space utilization, revenue per square foot, and operating costs per square foot are only a few KPIs that your peers track. We currently track up to 60 healthcare related KPIs and would work with MSKCC to determine which are most suitable and practical to mine data so that that data can be used effectively by MSKCC. Our goal will be to create KPIs for MSKCC to mea- sure itself against its peers as well as other leading institutions within New York City and nationally. 1. Comment on CW’s expertise for the noted scope and geographies, separately for both clinical and office uses. Our deep experience in each market is for BOTH clinical and office. We have sold and leased more healthcare properties than any other firm in the region. Accordingly, we are skilled at using all of our service lines together to benefit our healthcare clients. Further, our clinical experience in appraisal, lead by Gerald Rasmussen, is the finest in the real estate industry as we’ve noted that many of our competitors do not understand the highly nuanced nature of valuing a clinical healthcare asset 2. Note what access CW has to benchmark KPIs – including examples of who and where located. In our appendix, we listed some KPIs that may be relevant for MSKCC that we use for other healthcare systems (the majority of which are for-profit healthcare institutions), as well as blue-chip corporations. Note, however, that we have the ability (and proven track record) to craft and customize KPIs for MSKCC that are specific to MSKCC’s most important metrics. Those could include access to power, parking, value (appraised and market), patient access, physician access, compliance with laws, cost of deferred maintenance, in addition to the items on our list. Together, we would select the relevant and best monitored ones for MSKCC. We track KPIs for many major healthcare sys- tems and envision customizing KPIs for MSKCC based on asset value, asset utility, and asset cost basis. We can break down the KPIs to be compared both “vs. NYC/etc” and “vs. nationally”, however, we are not certain on the quality of the KPIs for the NYC institutions. For this work, we would work closely with Lorie. 3. Proposal should indicate that per the terms of a separate NDA, all MSK data will be highly confidential, and not be kept or used by CW for any other purpose (even if aggregated and/or anonymized). ALL MSKCC data shall be kept confidential and only be used for the purpose of generating this report and executive presentation. 4. Any engagement on the above scope shall not imply exclusivity, nor future engagement for other services related to this study and any of its output (including, but not limited to, workplace strategy, brokerage, etc.) UNDERSTOOD AND AGREED. 5. Pricing. Please see in our Appendix our proposed pricing model for this work. Also note that Cushman & Wakefield is honored to partner with MSKCC and is open to any other pricing model that may work best for MSKCC. Qualifications:

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