Challenge
A port authority owns approximately 100 acres along the waterfront in the downtown area of a Major U.S. city. Due to emerging interest from major corporations to build new headquarters facilities on portions of the land, the port authority had to quickly develop a pricing, financial structuring and negotiating strategy for the potential redevelopment of this port property. The port authority’s objective was to balance regional economic development objectives with its own operational and financial needs.
Solution
The port authority engaged Allegro to value this unique waterfront land. Allegro was responsible for addressing a number of issues on behalf of the Port, including but not limited to: land valuation of the immediate disposition opportunity, oversight of an MAI Appraisal, opportunity analysis of all 100 acres, case study evaluation and ad-hoc consulting as needed.
Allegro developed multiple financial analyses assessing the pricing of a number of financial structures including fee simple dispositions, ground leases, master building leases and hybrid structures. Each disposition option took into account a myriad of variables and identified reasonable ranges for potential disposition. The project and negotiations are currently in process.
