Client Situation
A major U.S. City’s downtown municipal campus consisted of a hodgepodge of older buildings no longer suitable for its needs. It needed to consolidate its municipal office space.
Solution
After assessing the situation, an executive with extensive commercial real estate experience, now a E78 partner, worked with the City’s team to develop a master plan and provide financial analysis of alternatives to build or renovate. This consultation, analysis, and strategic planning in connection with the City’s facilities evaluation culminated in the acquisition of a 1,000,000 square foot high-rise building. Presentations to the Mayor and City Council of 10- and 30-year cash flow projections also showed cost comparisons of alternative scenarios.
Results
- Several years down the line, the City now has several new municipal buildings in its downtown campus anchored by its Municipal Tower
- The acquisition of this high-rise office tower resulted in savings to the City over 30 years of $330 million
