Delivering critical health sciences academic and student life facilities through a public-private partnership by unlocking commercial development value within Carlow’s real estate portfolio.
Carlow University (Carlow) sought to develop 400,000 SF of academic use for health sciences programs, a café, and campus welcome center, as well as commercial uses for synergistic tenants along Fifth Avenue in the heart of the Oakland neighborhood.
Hayat Brown Role: Transaction Advisor
The Hayat Brown team conducted a market study and a highest and best use analysis to determine the best product (multifamily, office, and retail) to generate maximum land value for the University, which will be used to offset the cost of delivering an academic facility. Our team crafted an operating pro forma model to determine the viability of developing the project under various project structures. We will also validate the developer’s financial plan to ensure the feasibility of proposed project.
We defined optimal financial and ownership structures for the project that provided the best combination of value, control, and risk sharing for the University. We also summarized feasible transaction structures including an analysis of associated risk/control trade-offs.
Our team is supporting Carlow through the solicitation process for this project including developing a Request for Proposal, organizing a pre-proposal webinar, managing the procurement process, and supporting the evaluation of proposals with a focus on financial analysis and securing development requirements. We also advised the development of form transaction documents to protect Carlow’s interests. We will soon assist Carlow throughout the transaction negotiation, where we will assess key business terms for their impacts on value, risk, and Carlow’s control over the project.