Public/Private Transactions
Negotiation
Support for Public/Private Hotel Partnership
San Francisco Municipal Railway (MUNI),
CA
Site Reuse Studies
and Negotiation Support
San Francisco Municipal Railway (MUNI),
CA
Evaluation
of Development Proposals for Major Urban Infill Site
United States Soldiers’ and
Airmen’s Home
Old
Mint Reuse Developer Solicitation, and Negotiation Support
Mayor’s Office of Economic
Development, San Francisco, CA
Presidio
Major Lease Negotiations and Solicitations
National Park Service, CA
Negotiation
Support for Mare Island Development Agreement
City of Vallejo, CA
Financial
Analysis and Proposal Development for Residential Project
KB Homes, CA
NASA
Ames Major Lease Negotiations
NASA Ames, CA
Financial
Analysis for Ocean Colony Partnerships and Development
Ocean Colony Partners, CA
Financial
Management Plan for Presidio of San Francisco, Area A
National Park Service, CA
Presidio
Residential Leasing and Property Management Strategy
The Presidio Trust, CA
Michigan
Smart Parks Review of Request for Proposals
Michigan Economic Development
Corporation, MI
Developer
Solicitation and Disposition Agreement
Contra Costa County Redevelopment
Agency, CA
Treasure
Island Developer Solicitation Advisory Services
Treasure Island Development Authority
(TIDA), CA
Review
of Marina Area Mixed-Use Development Agreement
Vallejo Redevelopment Agency, CA
Proposal
Development for Fort Ord Residential Project
KB Homes, CA
McClellan
Property Conveyance Negotiations and Financial Analysis
County of Sacramento, CA
Negotiation Support for
Public/Private Hotel Partnership
San Francisco Municipal Railway (MUNI), CA
For this key site at Mission and Steuart near the waterfront in
downtown San Francisco, BAE assisted the public agency owner in soliciting developer
interest for a landmark boutique hotel. We then analyzed the financial feasibility of
proposal submittals and interviewed proposers to select the most qualified team. After
selecting a developer, BAE supported the development agreement negotiations. Working with
representatives of the City Attorney’s Office, BAE structured business terms and
ground lease payments, and resolved financial partnership issues. This work resulted in an
agreement for more than $300 million in ground lease payments to MUNI over a 65 year term.
The project, a 100-room loft-style boutique hotel, is scheduled for completion in 2005.
Site Reuse Studies and Negotiation
Support
San Francisco Municipal Railway (MUNI), CA
Following on the success of BAE’s work for disposition of
MUNI’s Mission & Steuart site in downtown San Francisco, BAE is currently
assisting the agency with site evaluation and disposition for the Kirkland site. This site
is located adjacent to one of the largest tourist attractions in the U.S.
(Fishermen’s Wharf), and also near a major HOPE VI project. BAE conducted a highest
and best use study for residential, retail, hotel, and special purpose uses, along with
advisory services to prepare for a developer solicitation.
Evaluation of
Development Proposals for Major Urban Infill Site
United States Soldiers’ and Airmen’s Home
The U.S. Soldiers’ and Airmen’s Home (USSAH) is a retirement
facility for veterans of the Army and the Air Force located in northwest Washington, DC.
The site contains 49 acres of prime developable land no longer needed to support the
USSAH’s mission. BAE evaluated developer proposals for this surplus acreage,
including assessment of developer capabilities and track record, review of market support
for each proposed use, quantification of proposed ground lease payments, and evaluation of
the proposals’ impact on continued operation of the existing retirement facility. The
development proposal process encountered significant controversy from surrounding
landowners, and BAE has worked closely with the client to ensure a thorough and legally
defensible selection process.
Old Mint Reuse
Developer Solicitation, and Negotiation Support
Mayor’s Office of Economic Development, San Francisco, CA
The Old Mint is an historic structure located at Fifth and Mission in
downtown San Francisco. Built in the 1870s, the Mint served as the primary producer of
gold and silver coins for the western U.S. in the latter half of the 1800s, and the Greek
Revival structure was one of only two public buildings to survive the 1906 earthquake.
Abandoned by the federal government in the 1970s, the Old Mint was just recently
transferred to the City of San Francisco. BAE prepared a feasibility study of potential
uses for the building, and the ability of these used to attract private investment. Next,
working with a Task Force, BAE and City staff issued a Request for Proposals. BAE
evaluated the three submittals for their financial feasibility, along with development
team qualifications and experience. The San Francisco History Museum was selected for
negotiation. BAE will assist the City in negotiations, leading to a ground lease and
development agreement.
Presidio Major Lease
Negotiations and Solicitations
National Park Service, CA
BAE has assisted the National Park Service with major lease
negotiations, tenant and developer solicitations, and related implementation services at
the Presidio of San Francisco since 1992. Solicitation processes were for the Main Post
(350,000 square feet of historic structures), the Letterman-LAIR complex (almost one
million square feet of space), the historic housing units, and several community
facilities. For each solicitation, BAE developed the RFP, marketed the sites, and assisted
the selection panel with proposal evaluation. BAE then negotiated long-term leases and
associated building rehabilitation agreements for more than 300,000 square feet of office,
commercial, and community facilities space.
Negotiation Support
for Mare Island Development Agreement
City of Vallejo, CA
BAE assisted the City of Vallejo with negotiating a master development
agreement for a major portion of Mare Island, a former naval shipyard installation of over
1,200 acres. BAE reviewed financial projections and proposed business terms, created
counter-proposals on behalf of the City, and evaluated public revenue streams. Deal points
included sharing early lease income, sale of historic assets with tax credit implications,
and phased new development. The work resulted in a Master Development Agreement with
Lennar to redevelop its portion of Mare Island, including more than $250 million of new
investment over the next 20 years.
Financial
Analysis and Proposal Development for Residential Project
KB Homes, CA
BAE served as a member of the development team for a proposed master
planned community to be located at the former Hamilton Air Force Base. Working for KB
Homes, the largest home builder in the U.S., BAE formulated a detailed cash flow analysis
of multiple new neighborhoods, including single and multifamily products. BAE also
assisted with incorporating public and private revenue streams into the project proposal
to create a feasible project achieving multiple goals for the Request for Development
Proposals.
NASA Ames Major Lease Negotiations
NASA Ames, CA
In our role as real estate advisor to NASA Ames, BAE is leading the
negotiations to lease land and buildings on a long-term basis to a variety of
"partners" in the creation of a 21st century research park and
educational campus. The partners include several private developers and high tech
companies, Carnegie Mellon University, U.C. Santa Cruz, San Jose State University, and
related organizations. Negotiations include complex structures to allow for construction
of a NASA laboratory/research building in lieu of partial lease payments.
Financial
Analysis for Ocean Colony Partnerships and Development
Ocean Colony Partners, CA
BAE performed due diligence and financial evaluation for purposes of a
sale of partnership interests from two pension funds to a third development entity. BAE
also projected pre- and after-tax cash flows for a mixed-use project component to obtain a
new joint venture partner. Subsequently, BAE assisted the new property owner with various
analytical tasks including cash flow analysis of a hotel and golf course project,
evaluation of exchanging affordable housing obligations with another developer, and
assessment of historically antiquated lot values as part of the land assembly process.
Ocean Colony, located near Half Moon Bay, is now successfully developed as a luxury golf
community and five-star Ritz-Carlton hotel.
Financial
Management Plan for Presidio of San Francisco, Area A
National Park Service, CA
BAE developed the Financial Management Plan for Presidio lands under
NPS's permanent management at the Presidio (Area A), including Crissy Field, Torpedo
Wharf, Coast Guard Station, Golden Gate Toll Plaza, Coastal Bluffs, Lobos Creek, and Baker
Beach. Our work included evaluation of the area’s building inventory and
building-specific assessment of leasing potential based upon commercial real estate market
conditions, leading to a cash flow analysis of potential reuse revenue, rehabilitation
costs, and operating costs. BAE also recommended "next steps" for
rehabilitation. Alternative revenue concepts analyzed as part of this work included fee
parking, visitor-serving food and beverage kiosks, and special event venue rental.
Presidio
Residential Leasing and Property Management Strategy
The Presidio Trust, CA
BAE completed a comprehensive analysis of the Presidio's 1,100 units of
housing, which includes historic homes and duplexes, non-historic apartment units, and 500
rooms in group quarters. BAE provided a detailed inventory of the housing stock, evaluated
the cost to improve structural and site infrastructure conditions, and analyzed market
conditions to forecast rental rates by housing type/floorplan. BAE then evaluated a series
of management options (direct lease and management, third party property management,
etc.), and recommended implementation actions.
Michigan Smart Parks Review
of Request for Proposals
Michigan Economic Development Corporation, MI
The State of Michigan is establishing a "Smart Parks" program
to encourage development of business parks and facilities for technology-based industry,
with an emphasis on traditional business/research parks and "virtual" parks
linking facilities through shared services and telecommunications infrastructure. BAE
worked with the Michigan Economic Development Corporation to evaluate initial proposals
from local municipalities and developers, and then prepared a formal Request for
Proposals. BAE contributed to the evaluation of proposals from 18 communities and
recommended terms and conditions for incorporation into development agreements.
Developer Solicitation and
Disposition Agreement
Contra Costa County Redevelopment Agency, CA
BAE worked with a land planner to create a New Urbanist development
concept for this 11 acre site in a blighted neighborhood. Working with community
residents, the site was planned for a mix of small lot single family homes and rental
units over retail. Following approval of the concept, BAE drafted a developer Request for
Proposals and assisted in site marketing, resulting in seven qualified submittals. BAE
reviewed the development proposals, and selected a team of market-rate and affordable
housing developers to implement the project. BAE then assisted the Agency with
negotiations.
Treasure Island
Developer Solicitation Advisory Services
Treasure Island Development Authority (TIDA), CA
BAE assisted this public agency, charged with redeveloping Treasure
Island, after a developer solicitation process yielded fewer responses than expected. BAE
was commissioned to conduct a follow-up evaluation of developers who had expressed
interest but did not submit proposals, in order to assess the potential for increased
submissions in the event of a second RFP issuance. BAE also evaluated, through telephone
interviews with these developers, future actions that TIDA could undertake to enhance the
marketability of the project.
Review of Marina Area
Mixed-Use Development Agreement
Vallejo Redevelopment Agency, CA
BAE provided third-party review of proposed business terms and
financial projections for the Marina Master Development Agreement covering redevelopment
of the waterfront area near downtown Vallejo. The project will include a hotel/conference
center, phased residential products, a public plaza, and parking garages.
Proposal Development for
Fort Ord Residential Project
KB Homes, CA
BAE served as a member of the development team for a master planned
community proposed for this former military facility in the Central Coast area of
California. BAE assisted KB Homes with the preparation of the development proposal,
including formulating a detailed cash flow analysis of multiple new neighborhoods,
including single and multifamily products. BAE also assisted with incorporating public and
private revenue streams into the project proposal to create a feasible financial structure
for all parties to the proposed transaction.
McClellan
Property Conveyance Negotiations and Financial Analysis
County of Sacramento, CA
BAE assisted the County with preparing and negotiating the Economic
Development Conveyance for the former McClellan Air Force Base from the federal government
to the County. BAE formulated a multi-step conveyance process that shared the potential
risk, while enabling payments in excess of $100 million over the next 30 years. The
agreement included provisions for capturing "upside" revenue to be earned from
privatization of military contracting to aerospace companies.
