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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.
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Hilton Americas-Houston
Houston, TX |
Public Owned Convention Hotel
Components: 1,203-room Convention Hotel
Project Value: $285 million
SAG provided pre-development management services for the development of the 1,203-room Hilton Americas-Houston convention center headquarter hotel adjacent to the George R. Brown Convention Center in Houston, TX. SAG led a multi-faceted team assisting the City with creating the development and financing strategy, establishing a non-profit corporation to facilitate financing and operations, preparing the financial models, selecting the most appropriate project delivery method, writing RFQ/RFP's for other team members (architect, developer, operator) and basically playing the quarterback role until the developer was hired. SAG's role continued as owner's representative throughout the construction process. The hotel opened in 2003 and is managed by Hilton.
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Renaissance Schaumburg Hotel and Convention Center Complex
Schaumburg, IL (Chicago suburb) |
Public Owned Convention Center and Hotel Complex
Components: Convention Center, 500-room Hotel
Project Value: $240 million
SAG managed the pre-development phase of a financed 500-room full service hotel and convention center with 150,000 sf of function space for the Village of Schaumburg, a Chicago suburb, under a tax exempt structure. SAG led the development on behalf of the Village, addressing building programming and phasing, site options, cost estimates, cash flow modeling, organizational and management structure, development team selection, bond structuring, rating agency and bond insurer presentations, and contract negotiations. SAG worked closely with the legal team and represented the Village on transaction documents, including the qualified management agreement, technical services agreement, operator loan (key money), pre-opening agreement, room block agreement, official statement, trust indenture, and other transaction related agreements.
The tax-exempt bonds were structured to be repaid by a mix of sources. The primary source of repayment was to be generated by hotel profits and the incremental taxes generated by the complex (hotel, sales and food & beverage taxes). Additional resources were allocated to the bonds to provide for shortfalls during the hotel's stabilization period and credit enhancement. These included a privilege tax, telecommunications tax, real estate transfer tax and food & beverage tax. To add further credit enhancement, the Village elected to issue the bonds as general obligations of the Village, even though the Village did not levy property taxes. However, property taxes would have to be levied if the above primary revenue sources were insufficient. The convention center and hotel opened in 2006.
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The Westin Charlotte
Charlotte, NC |
Public-Private Convention Hotel
Components: 700-room Convention Hotel
Project Value: $170 million
SAG provided pre-development project management services for the City of Charlotte for the development of The Westin Charlotte, a 700-room convention hotel adjacent to the Charlotte Convention Center. The hotel was privately financed, with the City making the project financially feasibly by building the hotel's meeting space and parking. The City also participated in conduit financing. SAG led a multi-faceted team assisting the City with evaluating developer proposals, assessing private developer incentive requests, outlining public-private partnership options, contract negotiations, creating an industry leading hotel room block agreement, and managing the City Council communication process. Over a period of eight months, SAG took the project from concept to reality, significantly reducing the public sector involvement. The hotel opened in 2003.
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Raleigh Marriott City Center
Raleigh, NC |
Public-Private Convention Hotel
Components: 400-room Convention Hotel
Project Value: $60 million
SAG structured the public-private partnership for the development of the 400-room Raleigh Marriott City Center Hotel adjacent to the new Raleigh Convention Center. The hotel opened in 2008 and was financed privately, with the City providing an upfront grant and a below-market parking arrangement to make the project financially feasible. Our role involved soliciting potential private developer partners, interviewing and short listing candidates, assessing the public versus private finance approaches, negotiating with the top two candidates, negotiating detailed term sheets and contracts with the selected partner, negotiating a room block agreement, and various other activities to create a successful public-private partnership.
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San Jose Convention Center Renovation & Expansion
San Jose, CA |
Convention & Conference Center
Components: Convention & Conference Center Renovation & Expansion
Project Value: $300 million
SAG managed the renovation and expansion of the San Jose Convention Center, representing the facility manager, convention and visitors bureau, and hotel community. The existing center offers 142,00 square feet of exhibit space and 50,00 square feet of ballroom and meeting space. The convention center had not undergone any material renovation since its opening in the 1980s. Back of house services such as the central plant, roof and life safety were in dire need of replacement. Client areas were dated and space configurations limited the booking potential of the facility.
SAG began is role by researching the market and creating a customer-focused renovation and expansion program. Services continued with formulating a development strategy, analyzing master plan site issues, developing a conceptual design, estimating development costs, developing an organizational and management plan, and preparing a funding and financing plan. Following the creation of the strategies, SAG continued its management role, representing the client group in project design, development and financing.
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Nationals Park
Washington, DC |
Major League Baseball Stadium
Components: Major League Baseball Ballpark (42,000 seats)
Project Value: $690 million
SAG managed a multi-faceted team that successfully assisted the District of Columbia with relocating the MLB-owned Montréal Expos to Washington, DC and developing a new ballpark. Our team addressed every issue associated with developing the ballpark ranging from development budget creation, finance plan development, parking finance plan development, ballpark attendance projections, funding stream tax projections, ballpark tax impact projections, comparable ballpark finance structure data gathering, competitive market ballpark revenue due diligence, and assisted with lease and ballpark development agreement negotiations.
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. Nationals Park opened in March 2008.
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Dr. P. Phillips Performing Arts Center
Orlando, FL |
Performing Arts Center Mixed-Use
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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