waveland partners llc was formed by edward m. polich and...
TRANSCRIPT
About W
avela
nd P
art
ners
LLC
• Waveland Partners LLC was formed by Edward M. Polich and Nicholas F. Wilder in
2001 as the successor to LCOR Incorporated’s Midwest Regional office.
• The principals of Waveland Partners possess over 50 years of combined real
estate experience. A significant portion of that experience established our former
firm’s reputation as a Developer and Owner of premier properties in major markets
and as one of the nation’s premier Public / Private developers.
• Waveland’s portfolio of experience reflects our key involvement in all types of real
estate asset management and sales, including land, office, retail, residential,
industrial, parking, mixed-use and transit oriented developments.
• We have extensive experience as a real estate asset manager and advisor to
institutions, municipalities and high net worth individuals seeking to optimize their
real estate assets through repositioning, redevelopment and monetization.
• The consulting services we have provided in the past, combined with our
experience in the development, occupancy and operation of various types of
commercial real estate assets enables us to provide critical input to the owners
(including investors and lenders) of under-utilized real estate assets.
• One of our core beliefs as real estate professionals is that there is no substitute for
direct principal involvement in our client and partnership relationships.
• Initially retained as an advisor to the Federal Court appointed Custodian for this asset,
Waveland outlined a strategy to achieve the monetization of the asset through re-
positioning and disposition. We were subsequently asked to assume comprehensive asset
and property management responsibilities for a portfolio of this and other assets seized by
the court as result of the original owner’s fraudulent acts.
• Edgewater Medical Center (shown below) is an existing former hospital campus – multiple,
decaying, vacant structures situated on an urban land site of 2.58 acres or 1.045 hectares
in size. In it’s current state, the asset has been appraised at a negative value.
• Waveland has successfully obtained entitlements (re-zoning) and municipal financing
(TIF) commitments in close consultation with the local Alderman and City staff.
Edgewater Medical Center Redevelopment Chicago, Illinois
• Once we have completed final
documentation of entitlements,
we will coordinate hazardous
materials remediation, building
demolition and site preparation
and market the parcels to
developers.
Edgewater Medical Center Redevelopment Chicago, Illinois
• Utilizing plans and
renderings of the potential
redevelopment of the site
enables us to successfully
re-zone the site and create
and agreement for municipal
financing assistance via TIF
utilization.
• Waveland will simultaneously
provide on-going
management services,
execute the marketing plan
and oversee the sale of
individual land parcels to
developers.
CFMT of FLORIDA & ROGAN TRUSTS Nationwide Locations
Waveland, on behalf of a Federally appointed Receiver, has
provided asset search, stabilization, operating and
disposition strategy creation for real estate located in
Florida, Georgia, South Carolina, California and Illinois.
These assignments have included:
• The management and sale of a portfolio of cash &
equities.
• The sale of single-family homes and bundled condominiums.
• The completion of a partially converted condominium project requiring extensive re-
positioning and the work-out of an existing investor/partner/owner in order to enable the completion of the conversion and sale of the units.
The Claretian Missionaries Chicago, Illinois
• Waveland has been retained as real estate
asset manager and advisor to the Claretian
Missionaries USA Province, a Catholic men’s
religious order and owner of real estate assets
across North America.
• In Chicago, our asset management services
have included planning & supervising a
$2.3MM façade restoration and modernization
of the building’s life-safety systems.
• We also are implementing a plan for leasing
which will create improved office & retail tenant
spaces for AT&T and other tenants in the
building.
• This plan has significantly increased revenue
generated by the asset.
The Claretian Missionaries Illinois, Texas, and California
• Our assignments as the Asset Manager for the Claretians range in size and
complexity from that described on the previous page to:
• Assembling and acquiring property for the construction of surface parking for
Our Lady of Guadalupe Church in Chicago.
• Providing a long term asset utilization assessment of the Claretian’s
Provincial House in Oak Park, Illinois.
• In San Antonio, Texas we are re-purposing various building located on the
Order’s Founding House campus, including the restoration of the 100+ year
old historic Founding House structure (lower right).
• We have also coordinated the design and structural repairs required to
stabilize the steeple of the IHM Church on the San Antonio campus (right).
• In Northern California we have developed an asset
management and development strategy for over 450 acres
of undeveloped land (a bequest to the Order) located
between San Francisco and Sacramento, California.
• Also in California, we have provided asset management
services related to the Dominguez Seminary in Compton
and the La Placita Church of Los Angeles.
Brach-Brodie Estate Land Naperville, Illinois
• Over the past decade, Waveland Partners has been the asset
manager and development advisor to the Brach and Brodie
Estates which jointly own approximately 300 acres of un-
improved farmland bisected by State Highway 59 in the midst
of the fast growing Naperville and Aurora, Illinois corridor.
• In order to successfully monetize this asset for the benefit of
the estates, we assembled a team including contractors, civil
engineers, zoning attorneys and land use planners to create a
retail center.
• The new center’s roster of tenants and land owners
includes Costco, Staples, Lowes and Starbucks.
• As the asset manager, Waveland Partners
enabled the creation of imaginative solutions to
physical and marketing challenges in conjunction
with city officials and owners with sometimes
divergent approaches to the process.
• The project has faced numerous hurdles including a location under the flight path of a private
airstrip, soil conditions resembling a swamp and county officials who wanted to take the most
valuable parcels for park expansion.
• Waveland was asked to address the real estate asset management and
long term senior care issues of this Catholic women’s religious order.
• The Order’s real estate portfolio included its 115 year old Mother House
(shown above) situated on a five acre campus along with a number of
other owned structures situated on remote land parcels.
• In addition to underwriting the operating efficiencies of the Mother House
and the escalating costs of the Order’s care for senior sisters, we helped
the Executive Committee develop a strategic approach to these assets.
Sisters of St Francis of Mary Immaculate Joliet, Illinois
Mother Alfred Moes
• Subsequently, the senior care issues
were addressed through the Order’s
self-development of a Continuum of
Care Campus on one of the previously
noted remote land parcels.
• Implementation of the strategy resulted in a successful,
multi-parcel transaction which included the sale and
conversion of the Mother House to the University of St.
Francis for administration and classroom uses.
Meyerhof Family Estate Land Borrego Springs, California
• Waveland was retained by the family to provide asset advisory services to enhance
and monetize this 260 acre raw land parcel located in the desert community of
Borrego Springs, California.
• Upon our initial investigation, we determined that the parcel was about to be down-
zoned to very low density as a result of prevailing anti-development sentiment in San
Diego where it is located.
• Via the creation of a development plan (shown above) of a near zero “carbon
footprint” by utilizing minimal land disruption and the creation of pre-fabricated home
sites, we were able to enlist the support of the County for re-zoning the property with
increased density (about 200%).
• As a result, we are anticipating a
significant increase on expected
yield from this asset upon
completion of the 24 to 36 month
re-entitlement process.
• Waveland has been retained by a family owned real estate firm in Aurora, Illinois to
assist them in the enhancement of their undeveloped real estate assets.
• Waveland’s team created a master plan to reconfigure one of their more complex
sites to allow for the development a mixed use center including 90,000 square feet of
retail shops, 50 for-sale townhomes and 132 luxury rental residences (shown above).
• Waveland is also assisting the family in the creation of a development plan for retail
shops adjacent to an existing grocery store on another parcel, also located in Aurora.
Greenfield Commons Mixed Use Development Aurora, Illinois
Manhassett Village Residential Redevelopment Richmond Heights, Missouri
• An existing, 65 year old asset was in dire
need of repositioning or redevelopment to
enhance returns to its owners.
• Waveland, as advisor, assessed the state of
the existing asset and implemented changes
in operations to increase short term revenues
and recommended redevelopment of the site
be explored.
• Waveland’s team conducted a market assessment, created a comprehensive redevelopment
plan reflecting our findings and worked with the City and community of Richmond Heights, local
counsel and consultants to re-zone the site at a significantly higher density.
• To date, we have completed demolition of the
existing structures and the construction of
municipally financed infrastructure improvements
and the property stands ready for
redevelopment.
• The proposed first phase of development is
shown in the Architect’s renderings above and to
the right.
Chicago Title Tower Chicago, IL
• Developed, leased and managed by Ed Polich and the
Linpro/LCOR Chicago office
• $260 million project development budget
• Completed in 1992
• 50 story Class A high-rise office tower
• One million gross square feet with three levels of below
grade loading and parking
• Located in the North Loop Redevelopment District in CBD
Chicago
• Purchased the Harris and Selwyn Theaters, gifted them to
the City of Chicago and, ultimately The Goodman Theater
• Includes an extension and access to the underground
ped-way system and major public transit stations
• Formed a separate entity to provide Asset Management and
Leasing services upon completion
Archstone – Waveland Alliance Mixed Use Development Aurora, Illinois
• Waveland, with Archstone Mixed-Use and Regency Centers, previously proposed the
acquisition of 60 acres of the Brach-Brodie estate for development as a mixed-use
community.
• The proposed plan ($190mm) anticipated the creation of 342,000 sqf of retail space
and 500 residential units of varying style and pricing in a village-like setting.
181 North Clark Street Chicago, Illinois
• Created a revised and
amended redevelopment
agreement and P.D
Ordinance by working
closely with the Chicago
DPD
• 800,000 sq. ft. of office
above a fully enclosed 650
car parking facility
• Street level retail along
Clark and Lake
• A 200,000 gross sf mixed-use (parking & retail) building at the corner of Lake and Clark
Streets in Chicago, IL.
• Waveland created a development plan and formed a joint venture to acquire and
develop the vacant land parcel.
• Negotiated a purchase and sale agreement with the existing off-shore, institutional land
owner.
181 North Clark Street Chicago, Illinois
• Developed, leased and managed by Nick Wilder for
Jaymont Properties
• $62 million project development budget
• Completed in 1988
• 27 story Class A mid-rise office tower
• 366,417 gross square feet
• Designed by Skidmore Owings & Merrill
• Steel frame and concrete construction with granite and
glass curtain wall
• Located in West Loop area of Chicago CBD
• Fully leased within 18 months of opening
• Sold for a record high price per square foot
303 West Madison Chicago, IL
Archstone – Waveland Alliance Skokie, Illinois
• Waveland with Archstone, worked in concert with the Village of Skokie to create a
strategy to redevelop their old, under-utilized downtown into an entertainment,
commercial and residential district.
• In the early stages of municipal financing planning, the ($180mm) plan anticipates the
creation of 450 residences, 135,000 sq. ft. of retail and 65,000 sq. ft. of office space.
Warren-Market Street Entertainment District
Dayton Performing Arts Center Dayton, Ohio
• Nick Wilder Consulted with a public/private
partnership to develop preliminary plans and
financial strategy for two theaters with 3,000 seats,
hotel, apartment tower and parking.
• Coordinated the design of the Center with Cesar
Pelli Architects
• Raised over $50 Million from public and private
sources
• Initiated and coordinated the involvement of the
Regional Transportation Authority, City of Dayton,
Montgomery County, Dayton Philharmonic, Dayton
Opera Company and Victoria Theater Association
in the planning and funding process.
The Chicagoan Chicago, IL
• Developed for Draper and Kramer by Ed Polich as
Development Manager
• $65 million project development budget
• 235 unit, 35 story luxury high-rise rental building
• Recognized as the benchmark for luxury in Chicago’s
Near North apartment market
• Washer/dryer in select units plus common facilities
• Walk-in closets in every unit
• Heated rooftop swimming pool with landscaped terrace
and sundeck
• Dedicated tenant health & exercise room
• Indoor tenant and public self-park garage
• 24-hour security / doorman
Prairie Lakes Apartments Naperville, IL
Prairie Lakes is a 325 unit multi-family development
created by LCOR under the direction of Ed Polich.
This development introduced a ground breaking
degree of luxury to the suburban Chicago rental
market featuring fully protected, two-story units
with integrated parking garages.
The property also boasts resort-like amenities
including a fitness center and half-court
basketball & volleyball gymnasium.
When sold, it was valued at the then highest
price per unit paid for a suburban Chicago
rental property.
Spring Meadows Senior Living Libertyville, IL
• $32 million project
development budget
• Completed in 2001
• 200 unit Rental Congregate
Care Community
• 45 Assisted Living units, 155
Independent units
• Full food service
• Housekeeping and laundry
services
• Full entitlements achieved in 8
months
• $30 million project
development budget
• Completed in 2000
• 195 unit Rental
Congregate Care
Community
• 45 Assisted Living units,
150 Independent units
• Full food service and two
dining rooms
• Housekeeping and
laundry services
• Full entitlements achieved
in 12 months
Spring Meadows Senior Living Naperville, IL
Ass
et M
ana
gem
ent
& A
dvi
sory
Serv
ices
• Highest and Best Use Evaluation
• Land Use Planning
• Infrastructure Planning and Design
• Entitlement Issues
• Public and Private Financing Analysis
• Marketing Strategy and Execution
• Purchase and Sale Agreements
• Development and Development
Management
Upon retention to provide asset management or advisory services, Waveland will
conduct an initial asset status review to familiarize ourselves with the physical
and economic context in which our services are to be provided. We then meet
with our client to review their goals and objectives and determine the most
effective strategy to achieve any specific objectives while ensuring our asset
advisory services create maximum real estate value for our clients.
This approach has been employed successfully on a range of assignments
including the development of raw land, the completion of interrupted
development or the repositioning or redevelopment of older or distressed assets.
The following various types of analysis, further detailed on subsequent pages,
may be conducted by Waveland to develop a successful value maximization
strategy.
Highest and Best Use Evaluation
Assess demand characteristics of certain markets and values
• Commercial Retail
• Residential
• Office
• Industrial
• Needs of local demographic
Desirable and achievable zoning & entitlements
• Permitted uses under existing zoning
• Allowable and achievable density
Adjacent uses and zoning envelopes
• Compatibility with alternate uses / NIMBY factor
Transportation and traffic patterns
• Internal and external vis-à-vis retail potential
• Government approval of needed intersections and curb cuts
Waveland Advisory Services
Land Use Planning
Assess access characteristics of site
• Ingress
• Egress
Visibility
Vehicular and pedestrian circulation
• New urbanism
• Traditional
Topography
• Green design
• Wetlands
• Respect for natural site features
Storm water management
• Potential site amenity
Transition zones
• Setbacks and landscaping elements
Waveland Advisory Services
Infrastructure Planning and Design
Roadways
• Traffic impact analysis (external)
• Traffic circulation study (internal)
Intersections
• Site access locations
• Signalization requirements
Grading and excavation
• Respect existing topography to greatest extent possible
• If excavation is required attempt to balance site spoils
Detention and retention requirements
• Minimize area on most valuable parcels
• Utilize existing grades to allow natural flow to streams and waterways
Waveland Advisory Services
Entitlement Issues
Roadways and traffic control • Traffic signal warrants and signal locations
• Permitted uses under existing zoning
• Allowable and achievable density
• Streetscape and public R.O.W.
requirements
Off site improvements • Roadway and infrastructure improvements
• Recapture agreements
Annexation and zoning • Site plan and plat approval
• Subdivision requirements
• Impact and permit fees
• Parks and open space requirements and
outlots
Environmental remediation and
protection • Wetlands and wildlife conservation
• Archeological and historic preservation
issues
Legal coordination of municipal and
governmental processes
Waveland Advisory Services
Public and Private Financing Analysis
Public / municipal bond financing
• Creation of special improvement or assessment districts
• Minimizes interest on debt and allows repayment by end users through RE taxes
Tax increment or PILOT financing
• Determination of eligible costs
• Negotiate and structure terms of public-private agreements
• Funds provided in exchange for future increases in RE taxes
Sales tax rebates
Conventional debt financing
• Pension funds and institutional lenders
• Bank loans
Investment / equity financing
• Institutional investors
• Project specific syndicated equity funds Waveland Advisory Services
Marketing Strategy and Execution
Consumer / end-user profile analysis
Product pricing
• Area or market comparables
Canvassing and focus groups
• Brokers
• Developers, end-users and parcel purchasers
• Best prospects and most likely consumers
Public Relations
• Events, community activities and placed news items
Collateral materials
• Original artwork for advertisements, brochures and signage
Paid media
Site signage Waveland Advisory Services
Purchase and Sale Agreements
Negotiation of critical business terms
• Earnest money
• Purchase price and any adjustments thereto
• Due diligence period
• Contingencies
• Closing dates and defaults
Escrow agreements and title issues
Risk management issues
• Due diligence and other third parties
• Mechanics liens
• Site access prerequisites
Coordination of legal services
Waveland Advisory Services
Development and Development Management
Asset creation
Asset repositioning or redevelopment
Infrastructure development
Coordination of project professionals
• Architects and planners
• Civil, m/e/p and structural engineers
• Specialized consultants
• Professional service providers
• Construction contractors and vendors
Price and contract negotiations
• Project professionals
• Property purchasers
• Municipal and utility agreements
• Long-term service and maintenance agreements
Waveland Advisory Services
Waveland Compensation Formats
Fee based consulting and advisory services
• Fixed monthly retainer fee plus expense reimbursement
• Hourly fees
• Reduced hourly fees with phased or completion based success fees
Equity Participation
Profit Participation
Brokerage Commissions
Combinations of formats are also acceptable
Waveland Advisory Services
Ass
et
Mana
gem
ent &
Advis
ory
Act
ivitie
s • Edgewater Medical Center
• CFMT of Florida & PR Trusts
• The Claretian Missionaries
• Brach-Brodie Estate Land
• Sisters of St Francis of Mary Immaculate
• Meyerhof Family Estate Land
• Greenfield Commons Mixed Use Development
• Manhassett Village Residential Redevelopment
Develo
pm
ent Ex
peri
ence
• Chicago Title Tower
Chicago, IL
• Mixed Use Development Aurora, IL
• 181 North Clark Street Chicago, IL
• 303 West Madison Chicago, IL
• Warren-Market Street
District Redevelopment Skokie, IL
• Dayton Performing Arts
Center Dayton, OH
• The Chicagoan Chicago, IL
• Prairie Lakes Apartments Naperville, IL
• Spring Meadows Senior Living Libertyville, IL
• Woodstock Commons Rental
Residences Woodstock, IL