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Oceancrest was engaged by a 2,000+ member non-profit organization to oversee the proposed development of a 24,000+ square foot Class A office building. The client worked with Oceancrest to design a development proforma construction budget and timeline.
The client, being a not-for-profit, posed non-traditional investment objectives. While looking at most developments from the perspective of an investor, emphasis had to be placed on the member goals and objectives.
Oceancrest's role was to minimize the client's exposure while maximixing cost savings.The analysis stressed variables such as construction costs, lease rates, occupancy, and timing to determine what the best and worse case scenarios would be. Worst-case scenario cash flow variables were stressed to present the maximum potential shortfall that the owner/developer may be responcible for. Various tax implecations had to be considered as to the nature of the client. As well, any excess cash flow was placed back into the deal, allowing for the client to effectively breakeven as a not-for-profit entity.
Realistic expectations as to achievable leasing scenarios and cash flow inflows and outflows were diligently modeled. The constituent members were engaged in ongoing Q&A sessions and briefings, thereby answering any inquiries and or concerns as they came up.
The building specifications were continuously reviewed and changes were a constant, as necessary to meet the needs of the organization and its members. The final building design included a banquet hall and for-lease space to occupants other than the developer/owner. This therefore, maximized the cash flow potential based on the building's location and uses, further benefiting the owner occupant.