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Home My WebLink AboutPOWERPOINT PRESENTATION - CORNERSTONE 1 (ITEM #13)Cornerstone RECOMMENDATION FOR DEVELOPER OF CREATIVITY OFFICE CAMPUS Marketing and Selection Process 2 r Marketing, Pricing and Selection Strategy (June 2014 - Feb 2015) ► Retain CBRE - commercial brokerage team Confidential appraisal to establish base land price Preparation of Market and Pricing Strategy with CBRE Development of Cornerstone website with CBRE Developer interviews and solicitation of Business Proposals with CBRE ► Evaluation of Business Proposals ► Site Siuuic:) Oui iC z -u i z+ — ivuvC, liber 2014) Retain LPA, architect Preparation of Site Studies and Design Guidelines Preparation of Legacy Park concept plan Marketing L e�� r I r!qjo BUILD YOUR LEGACY C 0!�h E R -S -T a N E I Site Studies and Design Guidelines I El KEYMAP LEGEND SYM- DESCRIPTION BuaolNc f \ PEDESTRIANAOCESS B \\ A OUTDOOR GATHERING SPACE NOW] OPEN SPACE ` D C � ROADWAY SECTION SET BACKS AND EASEMENTS Criteria for Developer Selection Development Entity and Experience Core Competencies Stability and Strength of Entity Resources devoted to Project Success, past and present Quality and experience of development team Concept for Developing the Site Competency of design team (architect and landscape architect) Concept plan and approach for development of property Conformance with Design Guidelines Innovation and creativity Criteria (cont'd) Financial Ability Character and quality of current real estate portfolio Established relationship with lenders and capital partners Financial commitments for developments in current pipeline Business Offer Purchase Price Takedown schedule Development schedule Sources for Funding the Project No Contingencies impacting the timely development of the site OC Office Market "Shift Suggests Spec Development on Horizon" OCBJ (page 1, Apr 20-26) Lowest vacancies since 2008 Current vacancy at 100 Highest rent increase since 2007.... 7.6% year -over -year The Irvine Company... building Class A Office without pre -leases (Fashion Island and the Spectrum) New construction is not justified until the rents are above $3.00 psf/month ($36 /year) Unemployment at 4.4% in Orange County... lowest in SoCal 7 lir ' '� 1. ice.[ ' •' '� f ll .V AI'Ido 10, MIA -.- S i 3 Lill r IT � � E �,n Business Offer - ► Development Entity Categories ► Capabilities of the Development Entity ► Financing ► Timeline for Development ► Project Feasibility ► Purchase Price ► Phasing ► Consulting Team ► Contingencies Developer Recommendation Lincoln Property Company Commercial Established firm with a national presence and SoCal presence Investor partner(s) whom developer has completed multiple transactions �, Local principals, at a high level, to lead and manage project team 0- Lead principal has reputation for repeated success in SoCal market Devote significant resources, personnel and consultants, as a priority project ► Enthusiasm for Cornerstone I and Tustin Legacy Develop without pre -lease contingency Responded best to City's request for a Business Offer Listened to the City staff concerns 10 LPC N at i o na Lincoln Property Company is one of the most diversified real estate services firms in the world. Southern California Lincoln Property CompanyTeam Recent Development and Creative Redevelopment Projects ]MAX Under Construction 66,000 SF $66,000,044 Runway Under Construction 240,000 SF 1430 units $400,000,000 i o Under Construction 300,000 SF $165,000,000 Horizon Phase I, Completed 544,000 SF $275,000,000 Desmond Under Construction 81,000 SF $41,000,044 Parsons Securing Entitlements 642,000 SF 1475 units $820,000,004 Pen Factory Recently Closed 214,000 SF $182,000,444 AXIS Construction Documentation 340,000 SF $55,000,000 In Southern California, LPC currently owns and operates over 13 million square feet of commercial space. Current Southern California developments include Runway at Playa Vista and IMAX. T Horizon Lobby Playa Vista, CA 13 runway Playa Vista Proposed Project Description Cornerstone I ► Creative Officr P- Approximately 760,000 square feet Structured and surface parking ► Am�riitie,� Approximately 100,000 square feet of support uses ► Food Hal Retai Outdoor Meeting and Gathering Areas for office users Pedestrian friendly campus environment with easy access to Legacy Park Recommendation Authorize the City Manager to execute the Exclusive Negotiation Agreement for Cornerstone I between the City of Tustin and Lincoln Property Company Commercial, Inc. 20