NXT 50_RFP_BHFS_5.29.19_Link
50 FACILITY PLAN REVIEW& FINANCIAL ASSESSMENT Response for C.3.
Illustrated below are a few examples of the type of planning, budgeting and financial modeling the C&W team will perform for each individual facility within the portfolio. Every project, every market and every office for Brownstein is different and requires unique and focused solutions. Armed with the guidance that the portfolio review process will produce, C&W will work with Brownstein administrators to develop a strategic plan for each facility working to implement the vision of firm leadership while helping firm administrators work through the unique dynamics that each facility and each Brownstein office will present.
Preliminary Visualization
Budget Development
Financial Modeling Illustrated Cost & Efficiency Choices
/
Rough Order of Magnitude (ROM) Budget: Forecasted Cash Flow 5.17.2017
BROWNSTEIN HYATT FARBER SCHRECK DENVER EFFICIENCY & COST MATRIX BASED ON 130,059 SF | 141 ATTORNEYS | 5/31/2023 LXD
BuildingSize: 140,000 square feet
Option 3: Relocate to Existing Building
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
LandCosts Land
TitleCommitment TrafficStudy Geotechnical ESA-1 ClosingFees Title Insurance AltaSurvey Subtotal LandCosts
TRUE
HardCosts& Permits/Fees
TapFees-2"Water&Sewer Electric,Gas,Phone Stormwater DesignApplicationFees Planning&ZoningReviewFees PlanCheckFees
3D Walk Through + Renderings
NEW CONSTRUCTION
FULLYESCALATED 2019RENT
FULLYESCALATED 2023RENT
$ $ $ $
18,112
BuildingPermitFees
37,616
UseTax
252,000
TrafficLight
-
SiteWork
$ $ $
-
$ $ $
-
$ $ $
-
$ $ $
-
$ $ $
-
$ $ $
-
$ $ $
-
ConstructionCosts
1,600,000
1,600,000
1,600,000
1,600,000
1,600,000
1,600,000
1,600,000
Builder'sRisk Insurance
1,786
1,786
1,786
1,786
1,786
1,786
1,786
SubtotalHardCosts
$307,728
$ 1,601,786
$ 1,601,786
$ 1,601,786
$ 1,601,786
$ 1,601,786
$ 1,601,786
$ 1,601,786
TRUE
FULL SERVICE RENT VARIABLES
$26.04 $26,040 $24,009 $22,134 $21,066 $19,530 $18,228 $16,926 $15,624 $14,322
$27.54 $27,540 $25,392 $23,409 $22,280 $20,655 $19,278 $17,901 $16,524 $15,147
$30.00 $30,000 $27,660 $25,500 $24,270 $22,500 $21,000 $19,500 $18,000 $16,500
$35.00 $35,000 $32,270 $29,750 $28,315 $26,250 $24,500 $22,750 $21,000 $19,250
$40.00 $40,000 $36,880 $34,000 $32,360 $30,000 $28,000 $26,000 $24,000 $22,000
$45.00 $45,000 $41,490 $38,250 $36,405 $33,750 $31,500 $29,250 $27,000 $24,750
$50.00 $50,000 $46,100 $42,500 $40,450 $37,500 $35,000 $32,500 $30,000 $27,500
$55.00 $55,000 $50,710 $46,750 $44,495 $41,250 $38,500 $35,750 $33,000 $30,250
$60.00 $60,000 $55,320 $51,000 $48,540 $45,000 $42,000 $39,000 $36,000 $33,000
Soft Costs
CollaborationSpace–22 nd Floor
Architect
$ $
38,750
$ $
- -
$ $
- -
$ $
36,868 41,200
$ $
36,868 41,200
$ $
48,212 48,950
$ $
48,212 48,950
$ $
- -
$ $
- -
$ $
14,585 10,486
$ $
14,585 10,486
$ $
14,585 10,486
$ $
14,585 10,486
$ $
14,585 10,486
$ $
14,585 10,486
$ $
14,585 10,486
$ $
71,854 38,950
MEPEngineering StructuralEngineer CivilEngineering Landscape ProcessEngineering
-
1,000 SF/ATTY
22ndFloor {clickon link toaccess3Dwalk through}
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Entitlements FurnitureDesign
$
11,667
$
11,667
$
11,667
CommissioningCoordination ThirdPartyCommissioning WorkplaceStrategiesLight
$ $
6,000 10,000
$
10,000
$
10,000
CURRENT OCCUPANCY 922 SF/ATTY
$
32,820
$
-
$
-
$
-
WorkplaceStrategiesChangeMngt
$
21,000
$
21,000
$
21,000
$
21,000
$
21,000
LeanSixSigmaConsultant
$ $
40,000 10,000
$ $
20,000 10,000
$ $
-
$ $ $ $ $
-
ProjectManagement
$
10,000
$
10,000
25,333
25,333 12,500 5,000
$ $ $ $
25,333 12,500 5,000
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
$
25,333
Graphics/SignageConsultant
850 SF/ATTY
AudioVisualConsultant
LegalFees
$
1,389
$
1,389
$
1,389
$
1,389
1,389
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
$
1,389
Appraisals ThirdPartyMaterialTesting ThirdPartyDesignReview TransactionServicesFee Contingency ReimburseableExpenses CodeConsultant/PermitExpeditor
$
15,000
$
3,000
CAPACITY OCCUPANCY 809 SF/ATTY
Pleasebeadvised that this rendering (this "Rendering") representsdesign intentand conceptonly, isonlybeingused forpresentationpurposes,and isnot intended,and shouldnotbe reliedupon forarchitecture, construction,development,building, life safety, fire safety, orotherpurposes.ThisRenderingisnotanarchitecturalor constructiondrawing, it isnotdrawn to any scale,and isnot intended to complywithany relevantbuilding, fire, life safety, zoning, constructionorother codes,ordinances, laws, rules,regulations,orwith any nationalor localdrawing standardspromulgatedor supportedbyorganizations suchas theAmerican InstituteofArchitects.Anymaterials, structures,orobjectsdepictedor reflected in theRendering, suchas carpet,paint,windows,walls, furniture, fixtures,andequipment are conceptualarenotguaranteed to beprovided,arranged,or installed inanymannerbyCushman&Wakefieldoranyotherentity. Cushman&Wakefielddisclaimsallwarranties in connectionwith thisRendering,expressor implied, including,butnot limited to implied warrantiesofmerchantability, fitness foraparticularpurpose,andnon-infringement.Cushman&Wakefieldassumesno responsibilityor liability for any legal claims resulting from anyuseof thisRendering,byor fromanyparty,whatsoever.Cushman&Wakefield reservesall rightsnotexpressly reservedhereunder, includingany rightsandentitlementarisingunder intellectualpropertyor copyright laworunder contract.ThisRenderingdoesnotand isnot intended to confer, convey,orassignany licenseunderanyexisting intellectualpropertyor copyright law to theuser.
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
$ $
8,750 3,500
Subtotal SoftCosts
$ 10,000
$ 11,389
$ 135,209
$ 43,639
$ 38,972
$ 146,207
$ 146,207
$ 147,801
$ 151,134
$ 38,972
$ 38,972
$ 88,043
$ 85,043
$ 85,043
$ 85,043
$ 95,043
$ 80,043
$ 74,043
$ 137,526
$ -
$ -
$ -
TRUE
1 1
OtherCosts
750 SF/ATTY 700 SF/ATTY 650 SF/ATTY
Furniture& Installation TelephoneEquipment
$ $
2,100,000
$ $
2,100,000
35,000
35,000
LowVoltageDataCabling/ITRoom
$
70,000
$
70,000
$
70,000
$
70,000
$
70,000
$
70,000
RelocationOffice
$ $ $ $ $ $ $ $ $ $ $ $
70,000 280,000 70,000 70,000
RelocationR&DandService
MoveManager
$
70,000
Artwork
$
70,000
InteriorSignage ExteriorSignage
$ $ $ $ $ $
10,500 14,000
10,500 14,000
Security
105,000 490,000
105,000 490,000 49,000 70,000 175,000 14,000
AudioVisualEquipment
SoundMasking
49,000 70,000
Equipment
DecommissionSharpPoint
Plants
SubtotalOther
$ 2,873,500
$ 70,000
$ 70,000
$ 70,000
$ 140,000
$ 70,000
$ 140,000 $ 3,552,500
TRUE
ProjectContingency
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
$
57,647
TARGET OCCUPANCY 600 SF/ATTY
/
Total Project Budget
Floor Plan + Legend
$10,000
$11,389
$192,856
$101,286
$96,619
$203,854
$203,854
$205,448
$208,781
$96,619
$404,347
$4,620,976
$1,814,476
$1,814,476
$1,814,476
$1,894,476
$1,809,476
$1,873,476
$3,747,673
TRUE
TIAllowance
(1,500,000) $
(1,500,000) $
(1,500,000) $
(1,500,000) $
(1,500,000) $
(1,500,000) $
(1,500,000) $
FundingRequired
$
10,000
$
11,389
$
192,856
$
101,286
$
96,619
$
203,854
$
203,854
$
205,448
$
208,781
$
96,619
$
404,347
$
3,120,976
$
314,476
$
314,476
$
314,476
$
394,476
$
309,476
$
373,476
$
3,747,673
$
-
$
-
$
-
TRUE
550 SF/ATTY
“RIGHT-SIZING” IMPACT:
IndividualSpaces
Required
Provided
2023 Capacity: 161 Attorneys (20 Vacant Offices) 809 SF/attorney or 130,059 SF
Future “Right Sizing”: 141 Attorneys 600 SF/attorney or 84,600 SF
2023 Occupancy: 141 Attorneys 922 SF/attorney or 130,059 SF
Workstations
24
24
EnclosedOffice
70
70
Very Specific Decision Analysis
CollaborativeSpaces FocusRoom-1P
4
4
TeamRoom-5P
1
0
+ $231,000 per Equity Partner Over 15 Years
$3.6 million annual rent
$3.6 million annual rent
$2.3 million annual rent
MeetingRoom-6P
1
3
AdvancedEnergy | CapitalBudgetSpend&CashFlow | 7
MeetingRoom-10P
4
3
PresentationRoom-20P
1
0
Vacancy Cost: $445,597 annual rent
$42,400 annual per Equity Partner (85)
$27,000 annual per Equity Partner (85)
Specialty+SupportSpaces
Required
Provided
Hydration Station
1
2
$636,000 per Equity Partner (15 years)
Vacancy Cost per Equity Partner (85): $5,242 $405,000 per Equity Partner (15 years)
Cafe
1
1
Concierge/Greeting
1
1
FINANCIAL ANALYSIS
Storage
-
1
Notes: 1. Rents do not include estimated expense passthroughs over base years.
FileStorage
-
2
IDFRoom
-
1
Copy-Print-SupplyPoint
-
4
V.2.0 1/22/18
BROWNSTEINBASECASEandPOTENTIALOCCUPANCYALTERNATIVES -Denver
Copy-Print-SupplyRoom
2
0
Legal Sector Advisory Group | ADVISING FOR EXCELLENCE
Baseline /Basecase BASELINE -Current
May'18 -May'23 (61months)
111.3KSFat 41017thStreetThroughMay'23
BASECASE -Current+Expand18th LongTermOccupancyAlternatives ALT1:ExpandandStayat41017th
ExpandOnto18thFloorandStay InExistingSpace (130.2KSF)at41017thThroughExpiration -May'23
May'18 -Apr'33 (180months)
ExpandandStay LongTermat41017th (Take18thFloor,ExtendOtherSpace throughApr'33)
ALT2:Relocate toBlock162atExpiration (May'23) ALT3:Terminate41017th,Relocate (WFC)
ExpandandStayUntilExpiration (May'23)ThenRelocate toBlock162
2 Pleasebeadvised that this rendering (this "Rendering") representsdesign intentand conceptonly, isonlybeingused forpresentationpurposes,and isnot intended,and shouldnotbe reliedupon forarchitecture, construction,development,building, life safety, fire safety, orotherpurposes.ThisRenderingisnotanarchitecturalor constructiondrawing, it isnotdrawn to any scale,and isnot intended to complywithany relevantbuilding, fire, life safety, zoning, constructionorother codes,ordinances, laws, rules,regulations,orwith any nationalor localdrawing standardspromulgatedor supportedbyorganizations suchas theAmerican InstituteofArchitects.Anymaterials, structures,orobjectsdepictedor reflected in theRendering, suchas carpet,paint,windows,walls, furniture, fixtures,andequipment are conceptualarenotguaranteed to beprovided,arranged,or installed inanymannerbyCushman&Wakefieldoranyotherentity. Cushman&Wakefielddisclaimsallwarranties in connectionwith thisRendering,expressor implied, including,butnot limited to implied warrantiesofmerchantability, fitness foraparticularpurpose,andnon-infringement.Cushman&Wakefieldassumesno responsibilityor liability for any legal claims resulting from anyuseof thisRendering,byor fromanyparty,whatsoever.Cushman&Wakefield reservesall rightsnotexpressly reservedhereunder, includingany rightsandentitlementarisingunder intellectualpropertyor copyright laworunder contract.ThisRenderingdoesnotand isnot intended to confer, convey,orassignany licenseunderanyexisting intellectualpropertyor copyright law to theuser.
Terminate41017thSpaceatApr'19OptionDateThenRelocate toExistingOption (WFCas sample)
AnalysisPeriod (May'18 -Apr'33)
180mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos FYE 4/30/19 4/30/20 4/30/21 4/30/22 4/30/23 4/30/24 4/30/25 4/30/26 4/30/27 4/30/28 4/30/29 4/30/30 4/30/31 4/30/32 4/30/33
$'s inMillions
Finding Savings in Portfolio
Annuity Equivalent 1
TotalP-TCASHExpense
TotalNOM$
TotalNPV$
Baseline /Basecase
May'18 -May'23 (61months) 111,307SF
BASELINE -Current
$17.4 $20.8
$14.5 $17.4
$3.3 $3.9
$3.3 $3.1 $3.5 $3.6 $3.7 $0.3 $3.9 $3.8 $4.1 $4.3 $4.4 $0.4
LINK TO FULL SAMPLE
BASECASE -Current+Expand18th
130,163SF
LongTermOccupancyAlternatives
May'18 -Apr'33 (180months)
ALT1:ExpandandStayat41017th
$80.2 $92.4 $84.0
$48.0 $55.7 $52.8
$4.9 $5.7 $5.4
$4.4 $4.5 $4.7 $4.8 $4.9 $5.1 $5.2 $5.3 $5.5 $5.6 $5.7 $5.9 $6.0 $6.2 $6.3 $3.9 $3.8 $4.1 $5.2 $6.3 $15.1 $5.4 $5.5 $5.7 $5.8 $6.0 $6.2 $6.3 $6.5 $6.7 $7.0 $9.0 $4.4 $4.6 $4.7 $4.8 $4.9 $5.1 $5.2 $5.4 $5.5 $5.6 $5.8 $6.0 $6.1
130,163SF 105,000SF 120,000SF
ALT2:Relocate toBlock162atExpiration (May'23) ALT3:Terminate41017th,Relocate (WFC)
/
Capital /1-TimeExpense Items: Netofany LLProvidedTI$s 2
TotalNOM$
Baseline /Basecase
May'18 -May'23 (61months) 111,307SF
$35M SAVINGS OPPORTUNITY
BASELINE -Current
$0.0 $0.0
$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
BASECASE -Current+Expand18th
130,163SF
LongTermOccupancyAlternatives
May'18 -Apr'33 (180months)
ALT1:ExpandandStayat41017th $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $9.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $3.7 $9.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $12.7 [1]TotalNPVenables comparisonofequivalent length investments.Annuityequivalent converts totalNPV intoa seriesofannual cash flows therebyprovidingaway to compareprojects / scenarios ofunequal life. [2]Capitaland1-Time Items=Tenant ImprovementBuildoutPLUSMoveCostsPLUSTerminationFee (ifapplicable) LESSany LandlordProvidedTenant ImprovementAllowance $0.0 $9.5 ALT2:Relocate toBlock162atExpiration (May'23) ALT3:Terminate41017th,Relocate (WFC) 130,163SF 105,000SF 120,000SF
SOLUTION
CAPITAL INVESTMENT SAVINGS OPPORTUNITY
FINANCIAL ANALYSIS
$11M over 7 YRS $1.6M / YR 5 Month Payback $10M over 10 YRS $1M/YR 2.5 YR Payback
NEW YORK CITY
Sublease Floor 8 or 10
$680K
BrownsteinHyattFarberSchreck | Cushman&Wakefield 17
126mos term* <-132mos term* -> 165KSF
BROWNSTEINBASECASEandPOTENTIALOCCUPANCYALTERNATIVES -Denver $ inMillions ($'s inmillions)
Right-size: Relocate or Renew
$60.0
DENVER
$2.4M
Cash
$55.7
TotalScenarioPre-TaxNPVCost ScenarioCapitaland1-TimeExpense -NetofTI [1]
$52.8
$48.0
ConferenceRoom–21 st Floor Pleasebeadvised that this rendering (this "Rendering") representsdesign intentand conceptonly, isonlybeingused forpresentationpurposes,and isnot intended,and shouldnotbe reliedupon forarchitecture, construction,development,building, life safety, fire safety, orotherpurposes.ThisRenderingisnotanarchitecturalor constructiondrawing, it isnotdrawn to any scale,and isnot intended to complywithany relevantbuilding, fire, life safety, zoning, constructionorother codes,ordinances, laws, rules,regulations,orwith any nationalor localdrawing standardspromulgatedor supportedbyorganizations suchas theAmerican InstituteofArchitects.Anymaterials, structures,orobjectsdepictedor reflected in theRendering, suchas carpet,paint,windows,walls, furniture, fixtures,andequipment are conceptualarenotguaranteed to beprovided,arranged,or installed inanymannerbyCushman&Wakefieldoranyotherentity. Cushman&Wakefielddisclaimsallwarranties in connectionwith thisRendering,expressor implied, including,butnot limited to implied warrantiesofmerchantability, fitness foraparticularpurpose,andnon-infringement.Cushman&Wakefieldassumesno responsibilityor liability for any legal claims resulting from anyuseof thisRendering,byor fromanyparty,whatsoever.Cushman&Wakefield reservesall rightsnotexpressly reservedhereunder, includingany rightsandentitlementarisingunder intellectualpropertyor copyright laworunder contract.ThisRenderingdoesnotand isnot intended to confer, convey,orassignany licenseunderanyexisting intellectualpropertyor copyright law to theuser.
AnnuityEquivalent [2]
DRAFT _AlternativeComparison_1/26/2018 Page5
$45.0
LOS ANGELES
?
?
?
9
$30.0
$1.6M over 8 YRS $200K/YR 1.4 YR Payback $12.5M over 10 YRS $1.25M/YR 3 YR Payback
PHILADELPHIA
Sublease 3,000 SF
$276K
$17.4
$14.5
$15.0
$12.7
$9.5
$5.7
Give-back Floor 21, Demise large offices on 4 floors to right-size
$5.4
$4.9
$3.9
$3.3
CHICAGO
$0.0
$0.0
$0.0
$3.5M
$0.0
BASELINE -Current
BASECASE -Current+Expand18th
ALT1:ExpandandStayat41017th
ALT2:Relocate toBlock162atExpiration (May'23)
ALT3:Terminate41017th,Relocate (WFC)
<-------------------------------~5YearPeriod (May'18-May'23)----------------------------------->
<---------------------------------------------------------------15YearPeriod (May'18-Apr'33)--------------------------------------------------------->
V1.0_1-18-18
[1]Capitaland1-Time Items=Tenant ImprovementBuildoutPLUSMoveCostsPLUSTerminationFee (if applicable) LESSanyLandlordProvidedTenant ImprovementAllowance [2]TotalNPVenables comparisonof equivalent length investments.Annuityequivalent converts totalNPV intoa series of annual cash flows therebyproviding away to compareprojects / scenarios of unequal life.
Legal SectorAdvisory Group |ADVISING FOR EXCELLENCE
BrownsteinHyattFarberSchreck | Cushman&Wakefield 16
Cushman & Wakefield | Brownstein Hyatt Farber Schreck
27
DRAFT _AlternativeComparison_1/26/2018 Page4
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