NXT 50_RFP_BHFS_5.29.19_Link
50 Response for A.9. EXTRAORDINARY SERVICES
KEY SERVICES THAT DRIVETHENEEDLE FORBROWNSTEIN
Visioning
Market Evaluation
Best in Market Negotiators
4-TIME NAIOP TOP BROKER
WHAT DOES IT COST? V.2.0 1/22/18
BROWNSTEIN BASECASE and POTENTIAL OCCUPANCY ALTERNATIVES - Denver
Baseline /Basecase:May'18 -May'23 (61months)
LongTermOccupancyAlternatives:May'18 -Apr'33 (180months)
ANALYSIS OVERVIEW ($ IN MILLIONS)
BASECASE -Current+Expand 18th
ALT2:Relocate toBlock 162at Expiration (May'23)
ALT3:Terminate410 17th, Relocate (WFC)
BASELINE -Current
ALT 1:ExpandandStay at410 17th
PremisesSize (SF)
111,307SF
130,163SF
130,163SF
105,000SF
120,000SF
#ofAttorneys SF /Attorney
145 768
160 814
160 814
160 656
160 750
$ inMillions
TotalCostMetrics
NetPresentValue
$14.5
$17.4
$48.0
$55.7
$52.8
AnnuityEquivalent 1
$3.3
$3.9
$4.9
$5.7
$5.4
Capital and 1-TimeSpend 2
TotalRequiredBuildout andMove
$0.0
$0.8
$4.3
$18.5
$20.4
$0.0
$0.8
$4.3
$9.1
$11.4
Less: LandlordProvidedTenant Improvements
N/A
N/A
N/A
N/A
$3.7
Plus: TerminationFee
TotalCapital / 1-TimeOutOfPocket
$0.0
$0.0
$0.0
$9.5
$12.7
126mos term* <-132mos term* -> 165KSF
BROWNSTEINBASECASEandPOTENTIALOCCUPANCYALTERNATIVES -Denver $ inMillions ($'s inmillions)
[1]TotalNPVenables comparisonofequivalent length investments.Annuityequivalent converts totalNPV intoa seriesofannual cash flows therebyprovidingaway to compareprojects / scenarios ofunequal life.
FINANCIAL METRICS CHART
[2]Capitaland1-Time Items=Tenant ImprovementBuildoutPLUSMoveCostsPLUSTerminationFee (ifapplicable) LESSany LandlordProvidedTenant ImprovementAllowance
$60.0
$55.7
$52.8
$48.0
$45.0
TotalScenarioPre-TaxNPVCost
ScenarioCapitaland 1-TimeExpense- NetofTI(1)
$30.0
AnnuityEquivalent (2)
$17.4
$14.5
$15.0
$12.7
$9.5
[1]Capitaland 1-Time Items=Tenant ImprovementBuild-out PLUSMoveCostsPLUSTerminationFee (ifapplicable)LESS anyLandlordProvidedTenant ImprovementAllowance [2]TotalNPVenablescomparisonofequivalent length investments.Annuityequivalentconverts totalNPV into a seriesofannualcashflows therebyprovidingaway to compareprojects / scenarios ofunequal life.
$5.7
$5.4
$4.9
BROWNSTEIN BENEFIT Helping Brownstein Decide
$3.9
$3.3
$0.0
$0.0
$0.0
$0.0
BASELINE -Current
BASECASE -Current+Expand 18th
ALT 1:Expand andStay at410 17th ALT 2:Relocate toBlock 162 atExpiration (May'23)
ALT 3:Terminate410 17th,Relocate (WFC)
<-------------------------------~5YearPeriod (May'18-May'23)----------------------------------->
<-----------------------------------------------------------15YearPeriod (May'18-Apr'33)------------------------------------------------------>
V1.0_1-18-18
BrownsteinHyattFarberSchreck | Cushman&Wakefield 12
If aplan toextend for 5-10 years,whatwould be the anticipated scope ofworkneeded?
Future Square Footage
Estimated Costof Work (PSF/ Total)
Estimatedout-of- pocket cost (without free rent credit)
Lease Expiration
SquareFeet (Total)
Subleased SF
Ageof Asset
Renovation condition and anyplan to vacate?
Landlord Provided Concessions
City
DRAFT _AlternativeComparison_ 1/25/2018 Page1
BocaRaton,FL 11/14/201 8
1
2,163
2,000 5 years Plan to vacate later this year
No extension
$10/$20,000 $0
BROWNSTEIN BENEFIT Helping Brownstein Act & Execute
Completebuild-out 13 years ago -willmost likely vacate Completebuild-out 10 years ago -opportunity todemise& surrender space (someCAPEX req’d) Completebuild-out 12 years ago -willmost likely vacate (CAPEX req’d) Completebuild-out 10 years ago Completebuild-out 13 years ago - renovation for densificationpurposesor possible vacate (CAPEX req’d) Oldbuilding –not conducive to lawfirmpractice,possible vacate (CAPEX req’d) Inplace renovation for densification (CAPEX req’d)
Extensionnot likely –plan tomove for locationpurposes
LINK TO FULL SAMPLE
$40-$50TI and6-12months free rent (relocation)
2 NewHaven,CT 2/28/2018 9,481
3,947
6,000 12 years
$100/$600,000
$330,000
Possible extension -needs cosmeticupgrade (paint, carpet)
$15TI and0-3months free rent (renewal)
$40/$328,000
$205,000
3 WestHartford,CT 2/28/2018 11,239
8,200 10 years
Capital Projections OperatingExpense Comparison Building
Extensionnot likely –plan tomove for locationpurposes
$180/ $4,500,000
$60-65TI and 10-12months free rent (relocation)
$2.94Million
4 Stamford,CT
3/31/2019 33,735
25,000 13 years
Brownstein Denver - 21 st Floor
$70TI and 7months free rent (10 year renewal);$35TI and3 months free rent (5 year renewal) $20-30TI and 2-3months free rent (5 year renewal);$40-50TI with5-7 freemonths rent (10 year renewal)
Possible extension -needs cosmeticupgrade (paint, carpet)
5 Washington,DC 4/30/2019 5,820
5,620 10 years
$10/$56,200
ExcessFunds
Possible extension - renovation for densificationpurposes
$200/ $4,000,000
$4million
6 NewYork,NY 7/31/2019 58,709
22,279
20,000 13 years
Renew/extension likely -needs cosmeticupgrade (bathrooms, paint, carpet) Likely extension - renovation for densification Extensionnot likely -$200/ SF asumption for relocationon densification Possible extension (5 year renewal) -needs cosmeticupgrade (paint, carpet)
7 DelrayBeach,FL 2/29/2020 4,137
4,137
15 years
$10/$41,370 $10TIminimum
$0
$30-35TI and 1-2months free rent (renewal) $5-$15TIon a5 year;$15-$25TI on 10 year and0-4months free rent (renewal); $45-$60TI and 6-18months free rent (relocation)
8 Boston,MA
8/31/2020 41,609
9,467
32,133 12 years
$100/$3,213,300
$2.17million
Completebuild-out 11 years ago
$200/ $12,000,000
9 Hartford,CT
10/31/2023 80,399
600
60,000 11 years
$8.85million
Enhanced Reporting
2018 Total Expenses (psf) RE Taxes (psf)
OpEx net ofRE Taxes (psf)
Moved in - substantial renovation4 years ago
$25-35TI and6-7months free rent (renewal)
555 17 th Street 1401 Lawrence 1670 Broadway 1801 California CO StateBank Republic Plaza 1401 17 th Street 1331 17 th Street TABOR CENTER
10 Greenwich,CT 11/30/2023 7,900
7,900 4 years
$20/$158,000
ExcessFunds
$13.91 $17.86 $12.73 $14.20 $11.59 $16.79 $17.69 $16.71 $17.14
$5.71
$8.20 $7.74
65,000 (renewal); 60,000 (relocate)
Possible extensionormove - renovation fordensification purposes
Potentialout-of-pocket capital by2020 Potentialout-of-pocket capital between 2021-2023 Totalpotentialout-of-pocket capitalbetween 1997-2023 $20TI and6months free rent (renewal); $45TI and 12months free rent (relocation)
$10.12
Completebuild-out 7 years ago
$200/ $13,000,000
11 Parsippany,NJ 8/31/2025 100,010
17,742
7 years
$9.3million
$5.65 $6.66 $4.66 $6.58 $9.17 $8.50 $6.71
355,202 54,044 $7.08
$12,758,870
$9,645,000 $18,150,000
TotalRSF
$25,158,000
$7.54 $6.93
$37,916,870
$27,795,000
$10.21
$8.52 $8.21
$10.43
Detailed Comparison 1401,555 and Tabor OperatingExpense Categories 1401 Lawrence
BROWNSTEIN BENEFIT Making Sure Brownstein Gets Value
555 17 th Street Tabor Center
PSF 1.17 1.25 0.29 0.19 1.13 0.44 1.10 1.76 10.12 0.40
PSF
PSF
Utilities Cleaning Elevator
1.94 1.28 0.35 0.20 1.30 1.20 0.66 1.21 5.71 0.06
1.71 0.88
SeeR&M SeeR&M
HVAC
Repair & Maint Lot & Landscape
1.83
3.46*
Security
0.51 1.67 6.71 0.37
Admin & PM Fee
RE Taxes Insurance
TOTALS
$17.86
$13.91
$17.41
Alternative Vision
• AtTabor thisamount reflectsRETaxesandparking costs that cannotbebilledbackasOpEx.
Tenacious Audit & Reporting
LegalSectorAdvisoryGroup | ADVISING FOREXCELLENCE
C&W Saltmine Platform - Building Consensus
Cushman & Wakefield | Brownstein Hyatt Farber Schreck
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