SITE INVESTIGATION AND NEGOTIATING SERVICES PROPOSAL for LITTLE ROCK TECHNOLOGY PARK AUTHORITY Presented by Moses Tucker Real Estate Jimmy Moses Rett Tucker Chris Moses John Martin (jmoses@mosestucker.com) (rtucker@mosestucker.com) (cmoses@mosestucker.com) (jmartin@mosestucker.com)
Site Investigation and Negotiating Services for Little Rock Technology Park Authority December 2, 2013 Mr. Buckley O Mell Vice President, Advocacy The Little Rock Regional Chamber of Commerce One Chamber Plaza Little Rock, Arkansas 72201 RE: Proposal for Site Investigation and Negotiating Services for the Little Rock Technology Park Authority Dear Buckley, Thank you for allowing Moses Tucker Real Estate the opportunity to be considered for real estate services for the Little Rock Technology Park Authority s site selection in Downtown Little Rock, Arkansas. For 30 years, the mission of Moses Tucker Real Estate has been focused on building a strong vibrant city by developing mixed use projects as well as re development projects that create jobs and provide a place for people to work and live in Downtown Little Rock. Moses Tucker Real Estate is interested in this assignment for a variety of reasons. Primarily, we strongly believe that the creation of the Technology Park is a an important project towards economic development for central Arkansas that will result in job creation that is critical in developing high paying jobs and capitalizing on the technology and innovation currently being development by the partner institutions and others. Enclosed with this letter for your review is our proposal. If you have any questions, please feel free to contact any of us. Thank you again for your consideration. Sincerely, Jimmy Moses Rett Tucker Chris Moses John Martin
Site Investigation and Negotiating Services for Little Rock Technology Park Authority Site Investigation and Negotiating Services for Little Rock Technology Park Table of Contents: I. The Assignment II. Who We Are III. Project Experience IV. Our Team V. Our Services VI. Plan of Action VII. Proposed Professional Fees VIII. Suggested Professional Companies
Site Investigation and Negotiating Services for Little Rock Technology Park Authority I. The Assignment The Little Rock Technology Park Authority is seeking a qualified real estate consultant to assist the Authority in the selection and due diligence of suitable locations in and around the Main Street area of Downtown for real estate or space that will accommodate sub sites concentrated on (1) new ventures engaged in the commercial application of research, and (2) establish technology based enterprises. Moses Tucker Real Estate will assist the Little Rock Technology Park Authority as follows: 1) Work with the Authority s consultant, Charles Dilks, to evaluate the proposed site(s) to determine if they can be master planned for the long term development of the Tech Park. The evaluation will include site boundaries, existing improvements, acquisition costs, projected redevelopment costs, and any use restrictions that would impact a redevelopment. 2) Investigate individual parcels in the proposed site, study all existing reports, including environmental and engineering, zoning, utilities, and evaluate the condition and re-use potential of existing improvements. 3) Obtain and review title insurance commitments to discover title issues affecting the redevelopment and use of the parcels for the intended use. 4) Estimate the fair market value of each parcel in the proposed site. 5) Utilizing a conceptual site master plan, prepare a capital cost model for (1) site acquisition, (2) site infrastructure, (3) Phase 1 development. 6) Represent the Board in negotiating site acquisition contracts and help facilitate closing on the parcels.
Site Investigation and Negotiating Services for Little Rock Technology Park Authority II. Who We Are Moses Tucker Real Estate, Inc., ( Moses Tucker ) is a full service commercial real estate company located at 200 River Market Ave in downtown Little Rock. Moses Tucker was formed in 1984 and provides professional services in development, brokerage, property management, and consulting/advisory services. Moses Tucker is a dynamic commercial real estate company uniquely different than others in the Little Rock marketplace as we are dedicated to building America s next great City. It is our passion for building a truly wonderful, livable city that sets us apart. Active in all areas of the commercial and residential market, we are the established leader in Downtown Little Rock s phenomenal $1 billion renaissance. Moses Tucker conceived the idea of the River Market District and has been responsible for over $200 million in development starting with the re development of the GANS Building in 1982. Retail shops and restaurants on Clinton Avenue, loft apartments in funky warehouses, upscale condominium residences, first class hotels and office space and the most desirable residential rentals. Moses Tucker has had a hand in them all and specializes in the development, sale and leasing of these properties. Moses Tucker has an experienced team to supervise the total development of a project, including site acquisition, economic modeling, design, construction and financing, and project management. Principals are Jimmy Moses, Rett Tucker, and Chris Moses are natives of Little Rock. Our staff includes eight brokers serving our commercial and residential portfolio and client properties. The assigned team would be Jimmy Moses, Rett Tucker, Chris Moses, and John Martin who have combined experience of over 75 years of commercial brokerage and development services.
Site Investigation and Negotiating Services for Little Rock Technology Park Authority III. Project Experience Moses Tucker has been active in the site acquisition and development of numerous large scale projects including serving as the site acquisition and project team for Heifer International s Global Headquarters, the William J Clinton Presidential Park on behalf of the City of Little Rock, as well as the previously planned campus for World Services for the Blind in Downtown. Moses Tucker s assigned team has worked with numerous boards and committees, municipalities, non profits, and private organizations in assisting with a strategic plan for new sites and handling all aspects of acquiring property including contract negotiations, coordinating environmental studies and due diligence items, zoning requirements, project financing, and review of closing documents. Additionally, Moses Tucker will assist in the selection process of the architectural and engineering teams as well as the contractor. Site Acquisitions Example Projects William J Clinton Presidential Park When President Bill Clinton picked Little Rock as the site for his presidential library, it set in motion a number of real estate assignments. Moses Tucker Real Estate was chosen by the City of Little Rock to acquire the 27 downtown acres designated for the William Jefferson Clinton Presidential Park where the library will be located. Construction will be completed in November 2004. Moses Tucker assisted the Clinton Presidential Foundation in leasing office space in the heart of the River Market District. In the spring of 2000, Moses Tucker put together the winning development proposal to the General Services Administration for the Clinton Presidential Materials Project. Housed in an adapted 40,000 square foot former automobile dealership, the project is home to over 100 million manuscripts and over 75,000 museum artifacts from the Clinton Presidency until the Clinton Presidential Library is completed. Moses Tucker also assisted the Clinton Presidential Foundation in its acquisition of an historic building at 610 President Clinton Avenue, which will house the Foundation s gift and souvenir store, internet sales, and accounting office. Moses Tucker will manage the property for the Foundation. Moses Tucker also acted as the exclusive agent for the City of Little in the assemblage of land for the construction of the William J. Clinton Presidential Library and Park, which included the purchase of 18 acres for over $10,000,000. Heifer International Moses Tucker also represented Heifer International in the purchase of 18.6 acres for over $5,800,000 for the construction of their international headquarters and village. Moses Tucker is currently providing advisory services regarding excess property owned by Heifer International.
Site Investigation and Negotiating Services for Little Rock Technology Park Authority World Services for the Blind Moses Tucker was most recently hired by World Services for the Blind to represent them in the disposition of their land and buildings that total 7 acres and 45,000 square feet of buildings that was assembled through the firm in over 40 transactions. Development/Re Development Project History 1982 - GANS Building, 217 West 2nd, Office renovation of a historic property - $600,000 1983 - Tripp Building, 207 West 2nd, Office/Retail renovation - $500,000 1984 - Heritage East, 225 E. Markham, Conversion of warehouse to office - $2.0 million 1985 - Heritage West, 201 E. Markham, Conversion of 2 buildings into office/retail - $3.5 million 1988 - Rose Building, 311 Main, Historic retail-gold s House of fashion - $1.0 million 1995 - Market Row, 313 Clinton Ave., Historic rehab-retail/loft apts - $2.5 million 1999 - Tuf Nut, 415 E. 3rd, Adaptive reuse-loft apts & retail - $3.0 million 2002 - Capital Commerce Center, 200 River Market Ave., Condo/office/restaurant - $15 million 2004 - First Security Center, 400 Clinton Ave., Condo/office/hotel - $25 million 2005 - Rainwater Flats, 415 E. Capitol, Condos - $4.0 million 2007-300 Third Tower, 300 E. Third, Condo/restaurant/retail - $35 million 2009 - River Market Tower, 315 Rock, Condo/retail/restaurant - $58 million 2012 - Rainwater Apartments, 405 E. Capitol, Historic renovation/apts. - $1.5 million 2013 - Mann on Main, 4th & Main, Apts/restaurant/office - $23 million 2013 - The Arcade, 200 River Market, Office/theatre/retail - $17 million
Site Investigation and Negotiating Services for Little Rock Technology Park Authority IV. OUR TEAM If selected for this assignment, Moses Tucker Real Estate is prepared to staff the property with highquality and experienced personnel. The management of this property will include a team led by the Principals, Jimmy Moses, Rett Tucker, Chris Moses, and John Martin For almost 30 years, Jimmy Moses and Rett Tucker have brought to life their vision of making Little Rock a better place to live. This vision and the progress that has been made is evident just by taking a walk down President Clinton Avenue. Moses Tucker Real Estate is the established leader in Downtown Little Rock s phenomenal $1 billion renaissance. Jimmy Moses, As a member of a pioneer Little Rock family, Jimmy Moses founded Moses Tucker Real Estate in 1984. A past chairman of the Downtown Partnership and the University of Arkansas Capital Commerce Building, home to Moses Tucker Real Estate headquarters. Arkansas at Little Rock Foundation, Moses is an active community leader. He serves on the boards of the Winthrop Rockefeller Cancer Institute Foundation, Central Arkansas Transit Authority and the Downtown Little Rock Partnership. He is a past chairman and member of the Little Rock Airport Commission. Moses is the visionary leader of the highly successful River Market District and is also responsible for many of the buildings there, including the Capitol Commerce Center, 300 Third Tower, the First Security Bank Tower, Museum Center, the Heritage Center and several of the storefront commercial buildings along Clinton Avenue. He is a graduate of Washington and Lee University and has a Masters in Urban Planning from the University of Florida. He has been a guest speaker all across the United States on the subjects of urban planning and downtown Little Rock s remarkable renaissance. In 1999, he was presented with the Award of Merit by the Arkansas chapter of the American Institute of Architects for his work in Downtown Little Rock. Rett Tucker, A fourth generation Arkansan and Little Rock native, Rett Tucker carries on a family tradition of business and civic leadership. He has an impressive track record in commercial brokerage and development over the past 29 years. A past
Leasing and Property Management Proposal Market Place Shopping Center 9 chairman of the Little Rock Regional Chamber of Commerce and the Arkansas Arts Center and a tireless advocate for quality public education, Tucker led the effort to build the Central High Museum and Visitor Center. He is a member of Fifty for the Future and a former board member of Arkansas Children s Hospital and the Little Rock Branch of the Federal Reserve Bank of St. Louis. For his efforts, he has won numerous awards, including the Pulaski County Bar Association s Citizen of the Year; the Diamond Award, given by the Public Relations Society of America (Arkansas Chapter) to the person who has done the most to enhance the image of Arkansas, and the Outstanding Individual Contribution to the Humanities by the Little Rock Arts and Humanities Promotion Commission. Tucker currently serves on the boards of Verizon Arena and the Downtown Little Rock Partnership. He graduated from Washington and Lee University and has an MBA from the University of Arkansas. Moses and Tucker were the developers and now manage all of the newest mixed-use buildings in downtown Little Rock, including the Capital Commerce Center, First Security Center, 300 Third Tower and River Market Tower, Mann on Main and the newly constructed Arcade Building, a portfolio exceeding $250 million. They were also retained by the City of Little Rock to assemble the sites for the Clinton Presidential Park and Library and retained by Heifer International to develop its new world headquarters. Under their leadership, MTRE was presented with the prestigious Top of the Rock award in 2007 by the Downtown Little Rock Partnership. Both also serve on the Downtown Little Rock Partnership s Main Street Revitalization Committee. Chris Moses, who was recently named President of the company, currently oversees the management of over three million square feet of office, retail, condo and warehouse space. Prior to joining Moses Tucker, Chris spent seven years as a Senior Retail Advisor at both Healstone Investment Real Estate (Irvine, CA) and Marcus & Millichap (Atlanta, GA). In 2006, Chris was a finalist for the California Rookie of Year Award, when he listed over $110,000,000 in a nine month span. Chris has worked extensively on both the East and West Coasts on behalf of numerous institutional and private client groups. Currently, Chris is a member of Certified Investment Institute Member (CCIM). In 2011, Chris graduated from Clemson University s Masters of Real Estate Development Program (MRED), where he obtained the distinguished Alpha Sigma Epsilon Honors Award. Chris also holds a BS in Real Estate Finance from Arizona State University. Chris will directly oversee the day to day operations of this property. John Martin, CCIM, serves as the Director of Brokerage and has been with MTRE for over eight (8) years and has been a commercial broker for eleven (11). John has extensive experience in commercial brokerage and has closed approximately $100 million in transactions and has represented users in the acquisition of sites for both private and non-profit clients. John is involved in every aspect of a transaction from establishing the initial objectives and criteria, performing property searches and market analysis, assisting in the contract preparation, negotiating the sale, managing the due diligence/inspection process, and getting the property closes and transitioned to the client.
Leasing and Property Management Proposal Market Place Shopping Center 10 V. OUR SERVICES Moses Tucker Real Estate specializes in the commercial and residential real estate market in the Greater Little Rock area. Active in areas of development, brokerage, and property management, the firm is well known for its creativity and responsiveness to client needs. As part of its corporate mission, the company is committed to making Greater Little Rock a better place to live. Moses Tucker is well positioned to handle all types of commercial real estate transactions. CLIENT RELATIONS Moses Tucker Real Estate considers client service to be its most important endeavor. The goal is to create strong relationships and satisfied customers. The company does that by not only preserving value, but increasing it, so that each owner s investment is worthwhile. Acquiring and disposing of the right assets at the right time is a crucial element in enhancing return on investment. MTRE s brokers assist institutional and private investors with developing acquisition and disposition strategies that take into account market dynamics and the clients long term objectives. They draw from a strong platform of resources including market research and analysis, strategic consulting, and evaluation to support each client s short term and long term goals. As a full service commercial real estate company, Moses Tucker manages and leases over 3.5 million square feet of office, retail and residential space. MTRE has a wealth of experience dealing with older, historic properties which are sometimes the most challenging to manage. Moses Tucker Real Estate has been named the Best Commercial Real Estate Firm and Best Property Management Firm in recent years by readers of Arkansas Business. The company has also been recognized for excellence in office/commercial management by the Arkansas chapter of BOMA. DEVELOPMENT Moses Tucker Real Estate has been active in the development and re development of properties in the Greater Little Rock area for over 30 years. From the $600,000 redevelopment of the GANS Building in 1982 to the $58 million River Market Tower, Moses Tucker has directed more than $200 million in the development and re development of new and historic properties from Downtown to WLR. The principals of Moses Tucker have over 50 years of combined experience in development and project management that includes investigation and site analysis, acquisitions, budgeting of development and re development projects, and managing the development process from start to finish.
Leasing and Property Management Proposal Market Place Shopping Center 11 BROKERAGE Brokerage Sales Our sales professional s objective is to secure the best sales price by maximizing the exposure of the property to the market by correctly pricing the asset, utilizing our contact data base, and executing a comprehensive marketing plan. We are actively involved in every aspect of closing the transaction. Consulting and Advisory Services Our professionals with over 75 years of experience provide consulting and advisory services to private industry as well as numerous not for profit organizations regarding their real estate needs. We work diligently within the time frames of each requirement to determine the most cost effective outcome for each assignment whether it is for site selection, cost analysis, cash flow analysis, tax appeal, lease verse own analysis, and Broker Price Opinion s. FINANCIAL SERVICES Moses Tucker Real Estate takes on all the responsibilities and challenges of ownership when managing a client s property. Budgeting, accounting, and financial reporting go together with collections, contract administration, maintenance, risk management, and marketing to provide property owners with the assurance that the value of their asset is not only being maintained, but enhanced. The company s property management team has over 50 years of combined experience in every area from high-end commercial buildings its bread and butter to affordable tax-credit properties. MTRE s focus on controlled spending, asset preservation and timely collections ensures that its properties perform as expected, and will continue to do so in the future. The firm uses state-of-the-art property management software, and reporting is in real-time, so owners and investors can know exactly how their investment is performing at any time. ACCOUNTING MTRE offers a full range of accounting services to its clients. We assume full responsibility for all the accounting needs of a property and will tailor our services to meet our Client s specific needs. Our approach includes using industry leading real estate management technology to help customize monthly financial reports as well as a dynamic platform to process the extensive, day-to-day operations on the property. TAX ADVISORY SERVICES Property taxes are the single largest expense associated with real estate and can comprise up to 40% of an asset s
Leasing and Property Management Proposal Market Place Shopping Center 12 operating costs. Moses Tucker has a proven history of saving their clients hundreds of thousands of dollars in proposed tax liability. MTRE will leverage their expertise in property tax management, tax appeal, audit support and consulting to ensure that property owners assets are fairly valued from a tax perspective which is a crucial element in enhancing return on investment. TENANT RELATIONS MTRE understands the importance of tenant relations and tenant retention, especially during the current economic environment. MTRE regularly visits with all its tenants to stay on top of all concerns and issues they may have to insure a high level of satisfaction overall. They also have a proven track record of effectively staying on top of accounts receivables and working successfully to retain tenants that may experience financial hardships from time to time. BIDDING & COST CONTROL All services provided at the property are bid annually at a minimum to ensure the operating expenses are as low as possible. Ways to minimize the frequency of every service without compromising the overall condition of the property is also constantly evaluated for further savings opportunities. SUSTAINABILITY For MTRE, energy management and sustainability are always a priority. With older properties, all exterior lighting (at a minimum) is evaluated for efficiency ratings within 30 days of execution of the management agreement. On an ongoing basis, other sustainable practice opportunities are identified and presented to owners for consideration based upon total project cost and payback projections. MTRE successfully performed several energy savings projects at no cost to its owners in 2012 through their connections with Entergy/Clear Results which also included several thousand dollars in rebate checks.
Leasing and Property Management Proposal Market Place Shopping Center 13 VI. PLAN OF ACTION Upon confirmation of Moses Tucker Real Estate being selected, Moses Tucker Real Estate proposes the following scheduled: 1) Moses Tucker Real Estate will prepare a representation agreement to be delivered to the Board within three (3) days of being selected. 2) Within thirty (30) days of being selected and having the representation agreement completed, Moses Tucker will be available to meet with the Little Rock Technology Park Authority Board and Mr. Dilks to establish and confirm the criteria for real estate/space, budgets, and target timeframes to identify, analyze, and acquire a site. 3) Upon establishing the criteria, Moses Tucker will begin an extensive search and review for candidate properties in the target area. 4) Upon an initial review by the Board, Moses Tucker Real Estate will perform a market analysis and develop a Broker Price Opinion on target properties to be considered by the Board. 5) Moses Tucker will work with the Board, Mr. Dilks, and other experts as determined by the Board to evaluate each candidate property and begin the negotiation and due diligence process. 6) Moses Tucker will be involved in every aspect of closing the property and help transition the property for the Authority. Moses Tucker will provided status reports to the Board every 30 days either in writing or at meetings as directed by the Board.
Leasing and Property Management Proposal Market Place Shopping Center 14 IX. PROPOSED SERVICE FEES 1) Site Investigation and Negotiating Services: Moses Tucker Real Estate proposes a fee of $125 per hour for services rendered to be billed at the end of each month. Moses Tucker will include a summary of the work and hours involved in each billing cycle. 2) Sales Fee: Moses Tucker Real Estate will charge a Seller of property a sales fee of four percent (4%) or will receive half of the sales fee if the property is actively listed for sale. At closing, Moses Tucker agrees to reimburse the Authority an amount equal to the professional fees previously paid up to the amount of the sales commission.
Leasing and Property Management Proposal Market Place Shopping Center 15 VIII. Suggested Professional Companies Moses Tucker has experience with the following professional companies: 1) Civil Engineer Tanner Weeks Ecological Design Group 120 S. Izard Street Little Rock, AR 72201 (501) 378-0200 2) Structural Engineer Frank Allison Allison Engineers 401 W. Capitol Ave Little Rock, AR 72201 (501) 376-3752 3) Geo technical Engineer Mark Wyatt Grubbs, Hoskyn, Barton, and Wyatt 1 Trigon Place Little Rock, Arkansas 72115 (501) 455-2356 4) Title Examiner Suzanne Martin Beach Abstract & Guaranty Co 100 Center Street Little Rock, AR 72201 (501) 376-3301 5) General Contractor Shannon Earls Clark Contractors 15825 Cantrell Road Little Rock, AR 72223 (501) 868-3133 Luke O Gary Central Construction Group 200 River Market Ave., Suite 520 Little Rock, AR 72201 (501) 244-9084 6) Architect Frank Barksdale AMR Architects 201 W. Markham, Suite 150 Little Rock, AR 72201 (501) 375-0378 7) Environmental Consultant Joe Carter
Leasing and Property Management Proposal Market Place Shopping Center 16 Snyder Environmental 7031 Dewaflebaker Ln North Little Rock, AR 72113 (501) 801-2776 Anne Woker Ecologic 419 Main Street Little Rock, AR 72201 (501) 399-9375 8) Incentives Consultant Sam Walls III Heartland Renaissance Group 200 River Market Ave., Suite 400 Little Rock, AR 72201 (501) 374-9247 Joey Dean Little Rock Regional Chamber of Commerce One Chamber Plaza Little Rock, AR 72201 (501) 374-2001