March 19, 2009 - Real Estate Asset Management Strategy


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March 19, 2009 - Real Estate Asset Management Strategy

  1. 1. Real Estate Asset Management Strategy Fort Monroe Federal Area Development Authority March 19, 2009
  2. 2. Today’s Agenda <ul><li>Current work summary </li></ul><ul><li>Role of Fort Monroe/Old Point Comfort Real Estate Asset Management Strategy </li></ul><ul><li>Real estate goals and objectives </li></ul><ul><li>Interim leasing concepts </li></ul><ul><ul><li>Residential </li></ul></ul><ul><ul><li>Commercial </li></ul></ul>
  3. 3. BAE Scope of Work <ul><li>Updated financial analysis </li></ul><ul><li>Real Estate Asset Management Strategy </li></ul><ul><li>Economic Development Conveyance </li></ul><ul><li>Property manager/developer solicitations </li></ul>
  4. 4. Asset Management Strategy is Key Driver <ul><li>The Fort Monroe/Old Fort Comfort </li></ul><ul><li>Real Estate Asset Management Strategy: </li></ul><ul><ul><li>Sets goals and objectives </li></ul></ul><ul><ul><li>Identifies key challenges </li></ul></ul><ul><ul><li>Formulates strategies to realize goals and objectives </li></ul></ul><ul><ul><li>Provides a direction and road map for FMFADA staffing & leasing activities </li></ul></ul>Real Estate Asset Management Strategy RFQs/RFPs FMFADA Real Estate Staffing EDC Application Lease/Contract Terms
  5. 5. Goals and Objectives <ul><li>Clearly articulate FMFADA’s goals and objectives </li></ul><ul><ul><ul><li>Focused on real estate dimension only </li></ul></ul></ul><ul><ul><ul><li>FMFADA management consultant to focus on other dimensions (e.g., institutional management, cultural, interpretive, and recreational) </li></ul></ul></ul><ul><li>Five areas to focus on today: </li></ul><ul><ul><ul><li>Summary of Overall Goals and Objectives </li></ul></ul></ul><ul><ul><ul><li>Financial </li></ul></ul></ul><ul><ul><ul><li>Historic Preservation </li></ul></ul></ul><ul><ul><ul><li>Operational </li></ul></ul></ul><ul><ul><ul><li>Economic Development </li></ul></ul></ul>
  6. 6. Overall Goals and Objectives <ul><li>Generate a stable stream of revenue to preserve and protect Fort Monroe’s rich historical, cultural, and natural resources </li></ul><ul><li>Enhance the economic development of the City of Hampton and entire Hampton Roads R egion </li></ul><ul><li>Optimize results and control costs by establishing an efficient, highly flexible, and responsive FMFADA organization </li></ul><ul><li>Support and complement public uses of Fort Monroe </li></ul>
  7. 7. Financial <ul><li>Generate near-term revenues </li></ul><ul><li>Optimize long-term value </li></ul><ul><li>Achieve long-term financial self-sustainability </li></ul><ul><li>Minimize upfront Commonwealth investment </li></ul><ul><li>Achieve market-rate rates of return </li></ul><ul><li>Enhance value with Fort Monroe/Old Point Comfort “brand” </li></ul>
  8. 8. Financial (continued) <ul><li>Explore residential leasehold program to generate capital </li></ul><ul><li>Establish an interim leasing program prior to transfer </li></ul><ul><li>Generate fiscal benefits to City of Hampton to cover costs of municipal services </li></ul><ul><li>Maximize the use of state and federal investment tax credits </li></ul>
  9. 9. Historic Preservation <ul><li>Preserve historic buildings through interim leasing </li></ul><ul><li>Facilitate long-term rehabilitation and adaptive reuse of historic structures </li></ul><ul><li>Facilitate maintenance of cultural landscapes </li></ul><ul><li>Ensure compliance with Fort Monroe Historic Preservation Design Standards </li></ul>
  10. 10. Operational <ul><li>Build a responsive and flexible FMFADA real estate organization using best practices </li></ul><ul><li>Control operating costs by minimizing permanent staffing requirements </li></ul><ul><li>Provide an efficient permitting process </li></ul><ul><li>Ensure “owner’s rep” project support </li></ul><ul><li>Establish interim leasing program with contracted broker and property management firm </li></ul>
  11. 11. Operational (continued) <ul><li>Privatize major rehabilitation and new development </li></ul><ul><li>Capacity to enforce Programmatic Agreement for historic preservation </li></ul><ul><li>Operate real estate programs to complement Long Range Interpretive Master Plan </li></ul><ul><li>Ensure Army remediation meets standards set by Fort Monroe Reuse Plan </li></ul>
  12. 12. Economic Development <ul><li>Strengthen local and regional competitiveness </li></ul><ul><li>Collaborate with state & local ED officials to secure “anchor” tenant </li></ul><ul><li>Promote “green-tech” or “clean-tech” industry </li></ul><ul><li>Promote IT, aerospace, military, and NASA related commercial tenants </li></ul><ul><li>Improve the region’s quality of life by making Fort Monroe the “front door” of the Hampton Roads Region </li></ul><ul><li>Support the on-going revitalization of Phoebus as “Fort Monroe’s neighborhood shopping district.” </li></ul>
  13. 13. Interim Leasing <ul><li>Challenge: </li></ul><ul><li>Balance need for early revenue and historic preservation with protection of Fort Monroe/Old Point Comfort image </li></ul><ul><li>Lessons Learned: </li></ul><ul><li>Presidio of San Francisco commercial leasing program </li></ul>
  14. 14. Interim Leasing Concepts - Residential <ul><li>Proposed concept: </li></ul><ul><li>Fort Monroe Residential Rental Program </li></ul><ul><li>Target market segments: </li></ul><ul><ul><li>Military families renting “on the economy” </li></ul></ul><ul><ul><li>Foreign families assigned to NATO HQ </li></ul></ul><ul><ul><li>Visiting faculty & graduate students at area colleges & universities </li></ul></ul><ul><ul><li>Local public safety agency employee households </li></ul></ul><ul><li>Seeking credit-worthy, short-term tenancies to give FMFADA flexibility to implement long term rehabilitation and residential leasehold program </li></ul>
  15. 15. Interim Leasing – Residential (continued) <ul><li>Required improvements : </li></ul><ul><ul><li>Limit to units requiring only cosmetic Improvements – “paint and patch” </li></ul></ul><ul><ul><li>Improve landscaping at Wherry Housing </li></ul></ul><ul><li>Implementation: </li></ul><ul><ul><li>RFP for residential property manager </li></ul></ul><ul><ul><li>Master lease with Army pending transfer </li></ul></ul><ul><ul><li>Start mid- to late 2010 </li></ul></ul>
  16. 16. Interim Leasing Concepts - Commercial <ul><li>Identify buildings that are ADA compliant and require minimal investment for occupancy, including: </li></ul><ul><ul><li>11 recently constructed “butler” buildings with flexible floor plans </li></ul></ul><ul><ul><li>Building 100 </li></ul></ul><ul><li>Target existing office tenants in local market </li></ul><ul><li>Target technology and clean-tech firms needing shop and storage space </li></ul><ul><li>Lay marketing and “proof of concept” ground work for identification of anchor tenant </li></ul>