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Citibank
New York, NY
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Bank Commercial Lending Criteria Restructuring
Components: Commercial Loan Lending Criteria Modification
SAG team members helped modify Citibank's commercial real estate lending criteria following the failure of commercial real estate loans in the early 1990s. The project began with a survey of loan officers to understand the primary variables that went into commercial real estate lending decisions. The next step was to gather project and market data that was available at the time of the loan commitment on 500 sample loans. This data was fed into a multivariable regression model to understand which variables were most correlated with loan success or failure. Variables included relationship data, past borrower performance, project data (occupancy, coverage, etc.), and market data (occupancy, growth rate trends, known new supply, etc.).
The study determined that there were ten key project and market variables that were known at the time of lending that were reliable predictors of success. However, the survey of loan officers indicated that relationship and past performance were their key criteria in making loan decisions. The result was a modification of the lending practices that lowered commercial real estate lending delinquency.
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Grand River Mixed-Use Development
Birmingham (Leeds), AL
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Suburban Residential/Retail/Motorpark Mixed-Use
Components: For-Sale Residential, Outlet Center
Project Value: $300m Private Investment; $35m TIF component
SAG assessed the tax increment financing potential of Grand River, a 6,500 acre tract of land in Leeds, AL, a Birmingham suburb. Grand River is a mixed-use, master-planned community which upon completion is to include: 6,000 single family homes; 1,500 multi-family homes; 1.2 million SF of retail; 1.0 million SF office/commercial; Bass Pro Shops Outdoor World; two elementary schools; Barber Motorsports Park & Museum; and a nature park. The project developer was United States Steel Real Estate and Daniel Corporation.
The tax increment related to Phase I of the project funded $35 million in infrastructure improvements focused on roads and utilities. Property taxes generated in the City of Leeds and Jefferson County and sales taxes generated in the City of Leeds supported the tax increment financing.
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Konterra
Prince Georges County, MD
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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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Poplar Point
Washington, DC
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Urban Residential/Retail/Office/Hotel
Components: For-Sale Residential, For-Rent Residential, Retail, Office, Hotel, Parking
Project Value: $900 million; $250m TIF component
SAG assisted Forest City Washington with assessing the tax increment financing potential of a 150 acre site that was previously a federal reserve into a waterfront-oriented mixed use development. The 15 year master plan included 2,700 condominiums, 200 town homes, 900 apartments, 775,000 square feet of retail, 1.8 million square feet of office space, 600 hotel rooms and 6,000 parking spaces. In total, the project encompassed 8.8 million square feet.
SAG assisted with programming, phasing, and all financial modeling including development cost estimates, financing, operating cash flow projections, project capitalization, and tax increment financing potential. The tax increment was to support $250 million in infrastructure costs.
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Tropicana Field Area Redevelopment
St. Petersburg, FL
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Downtown Redevelopment
Components: For-Sale Residential, For-Rent Residential, Retail, Office, Hotel, Parking
Project Value: $900 million
SAG assisted Hines and the Tampa Bay Devil Rays with financial modeling and analysis related to the redevelopment of the existing Tropicana Field site encompassing approximately 87acres. The mixed-use project included a 250-room hotel, 200,000 square feet of office space, 230,000 square feet of retail space, 800 condominium units, and 300 residential apartments. Our scope included an analysis of how the taxes projected to be generated by the redevelopment of the old ballpark site could be monetized through tax increment financing to provide a source to fund new ballpark development costs.
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Dr. P. Phillips Performing Arts Center
Orlando, FL |
Performing Arts Center Mixed-Use / Downtown Redevelopment
Components: 2,800-seat Theater, 1,800-seat Theater, 300-seat Theater
Project Value: $400 million
SAG managed the pre-development stage of the Dr. P. Phillips Performing Arts Center in Orlando, FL. The project includes 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 assisted with all aspects of the development of the PAC, including project conception, finance plan development, obtaining funding approvals, master planning, design review, operating plan development, team assembly, developer solicitation, and project financing. In addition to creating the overall finance plan, SAG 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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Orlando Universal Boulevard District
Orlando, FL
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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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Centennial Olympic Park Area Redevelopment
Atlanta, GA
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Downtown Redevelopment
Components: Residential, Hotel, Aquarium, Museum, Retail, Parking
SAG team members assisted with creating and implementing the strategy for developing Centennial Olympic Park to be used during the Olympics as a gathering place, and as a state park after the Olympics. We worked with the State on the due diligence efforts that entailed the coordination of appraisal teams, environmental teams, finance specialists, and cost estimators, and was responsible for preparing the briefing to get the project approved by the Governor and State.
Once the park was approved, we coordinated the redevelopment of the 100-acres surrounding Centennial Olympic Park through a public-private partnership for Central Atlanta Progress, the City of Atlanta and the business community. The 18-month initiative included hosting an Urban Land Institute panel, coordinating the architecture master planning team, fund raising, assembling landowners, soliciting developers, working with financial institutions, and establishing an ongoing organization to see the project through to completion. Ten years later, the area is now home to an Embassy Suites hotel, new Phillips Arena, residential condominiums, World of Coca-Cola museum, and the new Georgia Aquarium – the world's largest salt water aquarium.
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Los Millares Golf & Country Club
Andalucía, Spain
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International Resort Mixed-Use
Components: Hotel, Golf, Residential, Spa, Casino
Project Value: $100 million
SAG team members prepared a market analysis and business plan for Phase I of the Los Millares Golf and Country Club in Andalucía, Spain. Los Millares is a 1,800 acre master planned destination golf resort. Phase I included a 350-room Grand Hyatt hotel, two 18-hole championship golf courses, 900 residential units, a health spa, equestrian center, tennis center and casino. The scope of services included a detailed market analysis for each component (hotel, golf, residential, spa, and casino), and extensive modeling of potential cash flows, development costs, capital structures and investor returns.
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