Commercial Build-to-Suit | Services
Development Advisors, LLC offers the following A to Z services for its Clients:
1. Review your organization’s Business Plan.
2. Set project Goals (timing, staffing, principal involvement, communications).
3. Discuss building Features (function, size or # persons, shape, # floors, image, look, general interior layout, etc.).
4. Establish site Criteria (zoning, visibility, access, loading, parking, topography, etc.).
5. Discuss Budget (total project costs, annual mortgage or lease payments, payment of operating expenses, FF&E, etc.).
6. Discuss Funding (up front pre-construction costs, available equity capital, FF&E, etc.).
1. Decide Ownership (type of legal ownership entity).
2. Establish investment Criteria (Hold Period, Exit Strategy, Return-on-Investment, Tax Needs, etc.)
3. Establish investment Measurements (Cash-on-Cash, IRR, etc.) that you prefer to use.
• Create project budget including land, soft costs, hard costs, FF&E costs and financing costs.
• Create pro-forma scenarios incorporating project budget, proposed lease rates showing rates of return (cash-on-cash, IRR, debt reduction, etc.)
- Identify, Evaluate, Negotiate and eventually Consummate the purchase of the land site.
Site Test Fit
- Conceptually plan the proposed land site to determine the useable area, siting of the building, traffic impacts, accessibility, storm drainage, grading, etc. to ascertain the viability of a proposed site.
Site Cost Analysis
- The cheapest site to purchase considers the costs to complete a “finished pad” ready to construct on. Advisors consider all the potential horizontal costs.
- Advisors orchestrate the entire Purchase Due Diligence process (including preliminary municipality interaction), inspections for environmental, soils, title, survey, utilities, etc.
Project Team Selection
The first key to a successful project is the selection of a great team. Advisors leads the effort to procure the most capable and appropriate professionals for Client’s anticipated project including the project architect, general contractor, civil engineer, and others. But the first person you need to select is a person in your organization who can take substantial time away from their primary organizational responsibilities in order to work on this project.
Along with Advisors, you need a point person who Advisors can collaborate. We strongly consider someone with decision power, good people skills and someone who likes solving problems!
Advisors lead the effort to select preferred and pre-qualified A&E professionals. By using a competitive process, Client discovers recent similar projects and receives new concept ideas. Advisors analyze and compare proposals allowing Client to make an informed final selection and then the fun begins!
- Advisors will help you determine qualified firms, conduct RFP process and interviews, check references and tour work examples.
- In tandem with your legal counsel, Advisors will negotiate the performance contract.
It is in your project’s best interest to have a GC on board as soon as possible to suggest ideas to the architect and provide cost estimates to the Client, instead of waiting for the completion of documents that might end up needing to be changed. Advisors also leads the selection process for the selection of a general contractors who can perform both up-front pre-construction (cost estimating and value engineering) and construction services for the new building. Advisors also assist in negotiating construction services that represent current market conditions for overhead, profit and general conditions.
- Determine qualified firms, conduct RFP process and interviews, check references and tour work examples.
- Determine most appropriate delivery method.
- Select contract and negotiate criteria (fees, general conditions, overhead, incentives, penalties, GMP, etc.). Note: Often a pre-negotiated approach with your preferred Contractor (in which self-performed tasks are identified and subcontractor bidding processes are established) can frequently accomplish a more favorable outcome.
Select supporting Sub-Trades
- Civil Engineering (Grading, Drainage, Site Plan);
- Geotechnical Engineering (Soils and Materials Testing);
- Structural Engineering (generally will work for architect);
- Mechanical and Electrical Engineering.
Additional Selections (as necessary)
- Interior Design (make this place like home-you’re there enough!);
- Landscape Design (frequently overlooked and under-installed);
- Attorney (specialists: land use, contracting, etc.—depending on needs);
- Land Use specialist (if necessary to rezone property-someone already connected in the municipality);
- Acoustical Engineering (especially for church auditoriums);
- Public Relations specialist (if necessary for zoning changes);
- Urban Planner (if necessary to help incorporate building into neighborhood or for planning multiple buildings);
- Financing Agent (if necessary someone to procure financing);
- Accountant (if necessary for tax planning, entity creation, bookkeeping);
- Market Analyst (if necessary to ascertain market conditions to insure realistic pro-forma forecasting).
Advisors provide, update and maintain the overall project schedule that considers the planning, resource procurement, real estate selection, team selection, financing, design, entitlements, engineering and construction—from A through Z. Throughout the project, Advisors regularly updates the schedule as needed and includes, in part, schedule documentation from both the A&E and the GC. Advisors will also create a timeline for each specific purpose including task accountabilities, cash outlays, project management fees, etc.
Advisors lead the interaction and negotiations with municipal officials pertaining to the requirements necessary to gain approval to begin construction (commonly referred to as “entitlements”) as shown below.
In the event that the preferred land site does not allow for your intended use, Advisors will lead the effort to rezone the property. This can take from 12-18 months. Changing a site’s designated use can be both time consuming and costly and should NOT be entered into without carefully ascertaining the potential for success.
Once you are certain your proposed use could be permitted, the following are generally routine parts of the development process.
• Platting (estimated 3-6 months)
• Development Plan Approval (estimated 4-6 months)
• Building Permitting (estimated 1-2 months)
In cooperation with legal counsel, Advisors review and negotiate all associated contracts and agreements, including but not limited to:
- Entity creation for property ownership;
- Land acquisition;
- Municipal arrangements;
- Property lease w/ new ownership entity;
- Professional contracts including design, engineering and construction;
- Loan arrangement documentation;
- Listing new surplus space for lease;
- Property management (if necessary).
We take your new facility vision and conceptually articulate the future facility program (building size, parking and related space configurations). This facility program starts with the organization’s mission statement, business plan and considers the way you should conduct your business for maximum profitability. As part of this process, orchestrate the following:
- Tour pre-selected buildings in the metro area (similarly functioning buildings).
- Advance general wants and needs for the proposed new building site, exterior and interior conditions including skin materials, landscaping, parking, entry features, windows, elevators, floor loading, interior finishes (doors, lighting, grid, ceiling tiles, carpet, etc.), HVAC, electrical, telecommunications and security.
- Conduct a collaborative conceptual design process with the selected architect and the major sub-trades (mechanical, electrical, plumbing, structural) in a brainstorming all-day session that is highly controlled. This allows architect, engineers, construction persons, key subcontractors and you, the owner, to resolve most design issues in one day; helps to “set” the budget and value engineers to reduce costs to a reasonable target budget. In the course of this planning exercise, consider:
- interior design (floorplate, bay depth, core, vertical transportation, HVAC, ceiling, lighting, lobby, amenities, materials, etc.).
- off-site issues (mandated by municipality and/or referring agencies).
- exterior design (structural and electrical selection, skin materials selection, roof design, windows, parking, level of landscaping, signage, etc.).
Advisors is responsible for managing and coordinating the A&E professionals throughout the project and making recommendations to Client to enhance its’ decision making process and to keep the process running smoothly.
The design of the new building consists of the following stages:
- Schematic Design Phase (more formal wrap-up to building concepts described above).
- Design Development Phase (DD’s);
- Contract Documents Phase (CD’s);
- Negotiate GMP with Contractor;
- Building Permit Negotiation / Approval.
Prior to construction and during each of the design phases, Advisors, along with the GC, will assist with the following:
- Provide a construction cost estimates that will get increasingly more accurate with each iteration.
- Lead the process of “value engineering” to consider alternative construction methods and materials to improve reduce project costs.
- Advisors lead Client through a process to identify, evaluate, negotiate and eventually consummate one or more loan transactions.
- Advisors lead the effort to identify and solicit lender candidates. Advisors acts as Client’s advocate—presenting candidates with the advantages of a lending relationship with Client. Advisors stays involved through the commitment, documentation, due diligence, loan closing and loan disbursements.
- Advisors assist Client with preparing a loan package starting with information provided in the Project Definition phase (above) supplemented with additional information that lenders will need to get comfortable with and to qualify Client for future construction and/or permanent debt resources. Such supplemental information shall include historical data, project data, financial data, staff data, product and competition data, and risk data.
- Advisors do not represent any candidates that might loan money to Client. Advisors acts as the advocate for the Client throughout the project and throughout the procurement of the debt resources.
It is critically important that Client be able to plan the timing of inflows and outflows to ensure that there is sufficient cash to pay the bills and that Client does not borrow more money than it needs. Advisors will set-up the cash flow model necessary to analyze inflows and outflows and can also maintain the cash flow model as part of the financial management of the project.
Advisors acts as the owner’s representative advocating the Client’s interests to complete the construction of the new building on-time and in-budget. Advisors works closely with the GC to track construction progress but most importantly to constantly resolve unforeseen issues and make decision affecting the cost and quality of the new building. The following services are provided by Advisors as your owner’s representative:
- Set-up kick off meeting for General Contractor mobilization, start of work, and submittal process;
- Attending periodic construction meetings (could be once a week once construction starts) and provide periodic construction inspections (once or twice a week depending on the level of construction);
- Monitor completion of field inspections and advise Client as to expected award of certificate of occupancy;
- Monitoring project schedule, overall project budget, cash flow models and provide routine reporting to Client and to lender;
- Reviewing all RFI’s (request for information), PR’s (proposal requests), and Change Orders presented by the general contractor and make recommendations to Client on to how to proceed;
- Coordinating with GC the installation of all owner FF&E, including AVL, cabling, security, acoustical installation, furniture, appliances, window coverings, playground equipment, licensing requirements, etc;
- Providing periodic construction inspections (once or twice a week depending on the level of construction) as well as managing third party inspection consultants such as a materials testing engineers, geotechnical engineers, lender inspectors, etc;
- Interface with the various municipalities – City/County, Master Community, Water provider, gas & electricity provider, communications provider , etc. on Client’s behalf for such things as utility inspections, special permits, fees for utilities, final acceptance, etc;
- Reviewing and preparing monthly payment requests (invoices from architect, general contractor and owner vendors) and incorporating data into the existing budget to analyze status of expenditures versus budget;
- Submitting monthly draw requests to Client’s lender for payment and to ensure backup documentation is acquired and processed;
- Conducting Punch List inspection with architect and Client (architect to issue written documentation) and obtain final sign-off;
- Determining with Client how much retention should be held to the end of project to ensure that the uncompleted items (punch-list) get completed.
Advisors play the leading role in the planning and procurement of furniture, fixtures and equipment for the new facility. Here is the typical process for acquiring all FF&E:
- Inventory all existing FF&E that client intends to relocated to the new facility;
- Determine which FF&E needs to be upgraded or replaced (such as IT equipment);
- Estimate the future FF&E needs by first reviewing programming and then confirming with division leaders. Create FF&E needs spreadsheet, estimate costs and create budget that syncs with overall budget;
- Research FF&E vendors. Arrange meetings with vendors to investigate, inspect and discuss alternatives. Request estimates of cost, refine scope, negotiate price, sync budget and place order for delivery;
- Upon deliver, orchestrate the installation and/or set-up.
- Interview prospective property management firms or develop systems for in-house property management.
- Develop budget, recommend vendors, etc.
Leasing Surplus Space
In the event you should construct a larger building resulting in unoccupied space, we can assist in creating a leasing and marketing program that you or a third party real estate brokerage firm can implement to achieve income on your expansion area.
Client Driven Solutions
Development Advisors, LLC
2000 South Colorado Boulevard
Annex Building, Suite 250
Denver, Colorado 80222