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Mixed-Use Waterfront Redevelopment
San Juan, Puerto Rico |
Mixed-Use Waterfront Redevelopment
Components: Multifamily, Office, Retail, Hotels and Civic Uses
Project Value: $1.5 billion
SAG is currently the Development Manager to the Department of Economic Development and Commerce, the Puerto Rico Tourism Company, and the Puerto Rico Convention Center District Authority regarding the public and private development of the San Juan Waterfront area in Old San Juan, Puerto Rico. This 100 acre waterfront parcel is slated for $1.5 billion of future investment which will include multifamily, office, retail, hotels and civic uses. Assets to be developed include 3,500 residential units, 177,000 square feet of retail, 110,000 square foot fitness center, 320,000 square feet of office, 660 hotel rooms, and 4,200 parking spaces.
Click here to view project video.
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Konterra
Prince Georges County, MD |
Suburban Office/Retail/Residential Mixed-Use
Components: For-Sale Residential, For-Rent Residential, Retail, Office, Parking
Project Value: $1 billion; $150 million TIF component
SAG assisted Forest City Washington with structuring the Town Center component of the 2,200-acre Konterra mixed-use development situated in Prince George's and Montgomery Counties, Maryland straddling Interstate 95. The Town Center is a 115 acre mixed-use 20-year project encompassing the development of 1,700 residential units, 1.4 million square feet of retail, 700,000 square feet of office space, and 10,000 parking spaces. In total, the project encompassed 4.2 million square feet.
SAG coordinated all financial structuring analyses for this $1 billion project to understand the feasibility, timing, investment, partnership and infrastructure of each component of Town Center. In addition, SAG helped model the tax increment that could be generated by the project to help fund $150 million in infrastructure costs.
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Orlando Universal Boulevard District
Orlando, FL |
Tourism District Mixed-Use
Components: Retail, Hotel, Mass Transit, Infrastructure
Project Value: $2 billion
SAG was the financial advisor to the Universal Boulevard Property Owners Association and Orange County regarding the public and private development of the area surrounding the 10 million square foot convention center, the second largest center in the U.S. Assets to be developed included 5,000 convention hotel rooms; 500,000 square feet of retail, restaurants and entertainment; 10,000 parking spaces; a 3-mile elevated transit system; and seven pedestrian bridges.
SAG focused on both public and private investments. From the public perspective, SAG worked with existing and potential new investors to create a Community Development District (CDD) that would be empowered to self assess to fund infrastructure and to implement an additional 1% sales tax to fund the transit system. From the private investment perspective, SAG worked with the client team to solicit private investment for the hotel and retail components. Investors were identified for Phase I of the retail (250,000 sf) and for the first 1,500 room hotel.
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San Jose Convention Center
Renovation & Expansion
San Jose, CA |
Convention & Conference Center
Components: Convention & Conference Center
Project Value: $300 million
SAG was the financial advisor for the renovation and expansion of the San Jose Convention Center, representing the facility manager, convention and visitors bureau, and hotel community. Following a failed voter referendum (by 2%) to fund the project, SAG created an alternative financing strategy that combined a unique Mello-Roos District with downtown redevelopment area tax increment financing.
Mello-Roos financing structures have been used throughout California to finance infrastructure related to residential and commercial master planned developments, but a district had never been created with existing hotels to finance convention infrastructure. Under this approach, hotel members in the district vote to self impose a tax to fund the project. The tax is based on hotel revenues, much like a hotel tax. These funds are monetized in the public bond markets and the project is funded. To maximize the proceeds that could be generated by the special tax, additional credit enhancement was created through the use of a "blinker tax" that would blink-on an additional 1% to replenish a debt service revenue stabilization fund if utilized. These funds were augmented by tax increment financing proceeds generated by the City's downtown redevelopment area to complete the project.
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Nationals Park
Washington, DC |
Major League Baseball Team Relocation and Stadium Development
Components: Major League Baseball Ballpark (42,000 seats)
Project Value: $690 million
SAG was the financial advisor to the District of Columbia regarding the relocation of the Washington Nationals and development of a new ballpark. SAG led a multi-faceted team that addressed every issue associated with the project ranging from ballpark site evaluation to ballpark cash flow projections, finance plan development, programming, conceptual design, development budget estimates, finance plan legislation, outside infrastructure costing, land acquisition costing, preparation of the relocation "pitch book" to MLB, and ultimately negotiating the lease and ballpark development agreement with MLB.
The project budget increased over time as off-site infrastructure was added to the project and the finance plan evolved through a number of iterations. Ultimately, the ballpark was funded by team lease payments, taxes generated by ballpark activities, a business gross receipts tax (previously used for the MCI Center), and a business utilities tax.
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Dr. P. Phillips Performing Arts Center
Orlando, FL |
Performing Arts Center
Components: 2,800-seat Theater, 1,800-seat Theater, 300-seat Theater
Project Value: $400 million
SAG was the financial advisor to the Orlando Performing Arts Center Corporation related to the development of the Dr. P. Phillips Performing Arts Center in Orlando, FL. The project included a 2,800-seat amplified theater, 1,800-seat acoustic theater, and 300-seat theater. The site is also planned to include a 200-room hotel, two 400,000 sf office buildings, and 500 residential condominium units.
SAG created a comprehensive finance plan that addressed both development and operating costs. From a development perspective, SAG worked with the City of Orlando and Orange County to create a plan of finance that includes philanthropy, State grants, tax increment financing, tourist development tax, and the sale of the old PAC site. The operating finance plan addressed the sustainability of the PAC, providing ongoing operating support generated by the development of the commercial real estate, capturing the taxes generated by the site's commercial real estate, ongoing philanthropy, and securing annual funding commitments for capital replacements from the City. SAG also led the effort to secure an $80 million line of credit to provide for upfront project costs that will be repaid by pledged donation collections over the construction period.
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Grand Cypress Resort Orlando
Orlando, FL |
Luxury Golf Resort
Components: 1,500-acre Residential, Hotel, Golf
SAG professionals served as advisor for the acquisition and financial structuring of this 1,500-acre large-scale golf resort in Central Florida, including the potential for conversion and selling of vacation villas as timeshare or vacation condominium facilities.
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