The Client, McBroom Company, needed its interests represented in a large $24 million multi-family development project with multiple partners including the land owner and general contractor. Time and inflation had virtually destroyed the ability to obtain financing/construct the project. Development Advisors stepped in to revitalize the project and meet a strict timeline, so as not to forfeit developer’s 3-year investment of sweat equity and due diligence/design/pricing costs.
Assignment Highlights
Worked with developer and contractor to reduce project costs thereby allowing the partners to close on a HUD construction/permanent loan.- Assisted developer to obtain HUD construction loan and begin construction.
- Renegotiated arrangements with architect, general contractor, and sub-contractors because of value engineering needed to get the project financed and under construction.
- Negotiated a change in the delivery schedule of buildings/units in order to meet market demand without increasing the general conditions and total projects costs.
- Worked with general contractor, sub-contractors and architect daily to work out field issues and to determine the final design.
- Reworked delivery schedule to allow for changes in soil report, leasing requirements and timing in current real estate market.
Results
- Worked with developer and partners to successfully finance the project and build it per the budget and schedule agreed upon.
- Successfully negotiated a change in the delivery of building/units to meet market conditions without a change order.
- Due to unforeseen soils issues, numerous changes in building inspectors, and making changes to floor plans to meet market conditions, the project faced 9% in total change orders. The project closed with change orders held to 3% thereby saving $1.2 million.
