Post on 06-Apr-2016
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By
(Ph) 858.519.3240 (Fax) 858.519.3250
Prepared For: Thomas EbnerDirector Kontron
Date: November 4, 2014
Corporate Real Estate and Government Economic Incentives Advisory Services
Building Strategic Partnerships for the Future
12250 El Camino Real, Suite 220, San Diego, CA 92130
San Diego Long Beach Honolulu Orlando St. Louis
www.McKinneyAdvisory.com
Damian McKinney, Founder & CEO
Cell: 562.889.2001
Email: DMckinney@Mckinneyadvisory.com
Julie Dunlap, Corporate Real Estate Advisor
Cell: 858.229.5597
Email: JDunlap@Mckinneyadvisory.com
Peter Quinn, Corporate Real Estate Advisor
Cell: 858.864.8491
Email: PQuinn@Mckinneyadvisory.com
80% of the team members have over 15
years of corporate real estate advisory
experience specializing in industrial,
office, and retail.
Andy Zlotnik Legal Counsel
Jamie Keller Portfolio Lease Admin
Lic.#01249255
Damian McKinney Principal
Lic.#00777218
Peter Quinn Corp. RE Advisor
Lic.#00806439
Julie DunlapParalegal / Corp. RE Advisor
Lic.#01243401
Charlie Copelan Corp. RE Advisor
Lic.#0129508
Kelly Nicholls Corp. RE Advisor
Lic.#00947564
Personalized Project Team
All information contained herein is from sources deemed reliable, however, no representation or warranty is made as to the accuracy thereof. McKinney Brokerage Group License #01891265
Andrew Metyers Corp. RE Advisor,
Investment, Financial Analysis Lic. #01239760
Lisa Jarman Corp. RE Advisor
Lic. #01806439
Tyler Repstad Market Research Specialist
Lic. #01942179
Value Added Services
Real Estate Services
Market Analysis - Competitive Site
Negotiate Lease Terms and Conditions
Review Lease Terms
Program Brief
Tenant Improvement Scope
Review Financing
Site Alternatives Study
Build To Suit
Sale Lease Back Comprehensive
Programming
Key Date Tracking
Lease Abstracting
CAM* Reviews & Audits
Government & Community Interface
Landlord Interface
Lease Administration
Construction Review
IT Procurement Admin
Furniture Procurement Admin
Audio/Visual Program Admin
Move Management Program
Administration
Workplace Strategy
Interior Architecture
Project Management Services
*CAM: Common Area Maintenance
All-Encompassing Tenant Representation Services
Transaction Management
Pursuit of state & local incentives
Assess site and building information using national
data that we acquire
Orchestrate multi-site competition to maximize client leverage
Solicit and evaluate proposal responses
Develop/negotiate Letter of Intent
Aggressively negotiate lease/purchase contract
Financial Analysis
Occupancy cost analysis
Lease vs. Buy analysis
Alternative location cost comparison
Government incentive benefits analysis
Expense reconciliation and audit
Strategic Planning
Evaluate current situation
Define current and future real estate financial goals
Orchestrate workspace optimization
Assist in budget development and support
Prepare critical-path time lines
Develop strategic real estate plan
Market Research
Market research surveys, demographics, and property reports
Vacancy and absorption statistics
Market trend analysis
Analyze sale & lease comparables
Project Management
Refine project time lines
Work letter review and negotiations
Negotiate vendor contracts
Monitor value-engineering process
Monitor costs and options
Advise on move coordination
Ongoing Services
Annual operating expense audits at no charge
Landlord/tenant liaison
Lease administration
Asset management
Sublease and buyout negotiations
Disciplines of Experience
New lease agreements
Lease renewal negotiations
Blend-and-extend renewal negotiations
Expansion/contraction negotiations
Lease buyouts
Subleases
Acquisition, including facilitating financing
Build-to-suits
Sale/lease-back
Construction of add-on space
Remodeling/repositioning
Disposition of assets
Alternative sources of debt and equity
Financial Statement Impact Review
Every Client is unique, having its own financial requirements and focus. While most Clients are
comfortable with cash flow analysis for decision making, businesses with large and growing multi-
location real estate assets often have particular additional requirements, including GAAP reporting,
lender covenants and compliance, economic profit analysis, and capital budget decision support.
Financial Alternatives Review
As a result of both its Client side representation as well as its substantial investment fund
management experience, McKinney is well versed in traditional financing and acquisition
techniques. But more importantly, McKinney has tremendous experience in structuring
alternative financing techniques which often open up a whole new world of possibilities for the
Client. Some of these alternatives include Sale/Leaseback, Section 1031 Like-Kind Exchanges, Credit
Tenant Lease financing, New Market Tax Credit, EB - 5 Funding and Economic Development
Incentives.
Core Planning Optimization (a.k.a. Rocket Science)
The mathematics of optimization is the Rocket Science of real estate and we sometimes
employ the services of our PhD affiliates to solve for (recommend) an optimized footprint
strategy.
In this type of project we identify real estate planning groups and their requirements. Based on the
business requirements, metrics, and site visits, McKinney will identify opportunities for savings and
performance improvements.
Results are often staggering, resulting in savings of tens of millions of dollars over the planning
horizon. Using the same optimization software used by the major airlines, hotel chains, retailers and
international logistics planners, the McKinney team can identify sound optimized portfolio footprint
strategies for the Client to implement.
Working with the Clients business unit leaders, McKinney will develop a deep understanding of the
different types of business activities and their real estate requirements.
Corporate Real Estate Tenant Representation
Possible Planning Group Adjacencies
Closer to Headquarters
CommercialProducts Commercial
Sales
Marketing
MobileProducts
AdminSupport
Facilities
NewProducts
NewProductResearch
Data Center Ops
Partner ServicesProject
Management
Software Engineers
Sales Activities
SupportActivities
Legal
HumanResources
Finance
Consumer Sales
New Retail Product C
Core ConsumerProducts
IT Security
Senior Executives
New Retail Product A
Management Challenges Facing Businesses with Multi-Location Commercial Real Estate Footprints How McKinney Helps Clients Navigate the Unique Challenges Presented by Multiple Location Business Models (Leased or
Owned)
For most businesses a major decision about real estate location is an infrequent event
occurring mainly when a single lease expires once every five to seven years.
But for certain types of businesses, a large and growing portfolio of real estate locations (leased
and owned) is critical to success. Even manufacturing and distribution operations are often an
optimized network of locations. Managing such a multi-location portfolio of real estate assets
becomes a major administrative process and often requires daily attention. Moreover,
consolidation comes into consideration as operations reach critical mass.
Thats where McKinney Advisory Group can help. Clients with multi-location real estate
business can turn to our experienced team of commercial real estate transaction
specialists and our post-transaction administration and management experts to stay on top of
their real estate holdings.
Working collaboratively with the Clients own commercial real estate executives, McKinney
Advisory Group helps Clients develop and implement a customized strategic real estate plan
that incorporates the best practices and sound work flow management. The result is an
enterprise wide, strategic real estate management solution, with substantial Client cost savings.
Seeing a Clients Collection of Locations as an Integrated Portfolio
McKinney Advisory Group is not your typical commercial real estate representation firm.
While we do specialize in transaction and location acquisition strategies, McKinney
has always prided itself on its holistic portfolio view. Our Client for Life philosophy and
continued involvement after the transaction is closed is what sets McKinney Advisory
Group apart. Thats why we have client relationships lasting, in some cases, for 30 +
years.
All real estate administration begins with the location. As such, we maintain client
location data in a location-centric data base that organizes and tracks all data on both leased
and owned property in the area. Using state of the art cloud based information architecture,
Clients have direct log-in access to their portfolio via an encrypted internet portal. What this
means for the Client is no significant investment in IT or IT infrastructure while having the
ability to access portfolio information 24/7.
Site Selection and Acquisition Transaction Management
McKinney Advisory Group helps Clients excel in location acquisition strategy by
initiating and managing competitive RFP site selection evaluation processes designed to
pull all data together into a manageable decision format, including demographic profiles,
drive times, public transportation nodes and landmarks, energy costs, labor costs and other
critical variables.
Corporate Real Estate Tenant Representation
Real Estate Analytics
Program Management
Pre-Open Operating
Sites
Proforma Lease
Potential Locations
Projects Locations Parcels
Facilities Capital
Projects
Contracts/Leases
Tax Parcels
Operating Locations
Remodels, Renovations, etc. Contracts
on Location, Parcel, Facility Locations
Locations Being Built
Pro
toty
pes
Corporate Real Estate Tenant Representation
Developing a Comprehensive Strategic Plan The Play Book
McKinney Advisory Groups Real Estate Strategic Planning Solutions help manage the entire life cycle
of all Client locations by focusing on:
Location analysis, performance management, long and short-term growth projections
Portfolio Management & optimization
Site selection and transaction management
Lease analysis vs. Purchase analysis
Build-to-Suit analysis
Space build-out & move management
Facilities management
Capital program & project management
Local and regional Government Incentives analysis
Lease administration & rent accounting
Time management, cost projections, bench marks, accountability and contingencies are all integral
parts of a good strategic real estate plan. McKinneys team of experts, in cooperation with its clients
decision makers, help structure the entire campaign of site identification, proforma creation and
analysis, site vs. site analysis, site selection, competitive acquisition, and ultimately cost reduction
comparison analysis.
Tenant Representation is a topic in itself. But in a nutshell, McKinneys 7- Step process, fine tuned for
over 30 years, jump-starts its selection process by mining regional & national data bases to develop a
comprehensive local market analysis and an initial set of space candidates that fit the Clients defined
needs.
With a robust market analysis in hand, McKinney initiates a competitive bake-off among possible
space candidates and documents the progression of offers and counter offers. It is not unusual for
McKinney to manage detailed RFP offer and counter offer bids for 10 or more candidates per
desired location.
After the Client and McKinney narrow the candidates to a short-list, we develop detailed
comparative Lease Proforma data and perform cash flow and P&L analysis (including
GAAP and SOX impact, if necessary). Side-by side comparison of multiple lease proposals
help support optimal decision making.
Identify Needs & Requirements
Analyze Target Markets
Identify Initial Targets
Analysis and Short Lists
Negotiations
Selection
Post Execution
1
2
3
4
5
6
7
Lease Administration Scope of Services
McKinneys Lease Administration Services are a secret weapon for its Clients. Our Lease (and
Contract) Administration Services include:
Lease Administration
Auditing
Real Estate Operational Expense Auditing
Lease Abstracting, Validation & Design
GAAP Capital Lease Consulting Occupancy
Cost Allocation
Diligence
Space Size Verifications
Corporate Real Estate Tenant Representation
Lease Negotiation - Lease Traps
While most clients focus on the big ticket items (base rent and tenant improvement costs)
McKinney Advisory Group makes sure that the two-dozen or so standard Landlord
friendly terms designed to trap unwary tenants are also negotiated out of the
transaction. These lease traps can cost an unsuspecting tenant almost as much as the base
rent.
By calling upon our 30+ years of experience and a standard set of Client requirements as
well as our own set of tenant favorable lease amendments, we routinely save our Clients tens
of thousands of dollars. In fact, this aspect alone typically generates savings into the
thousands for our Clients.
Construction and Tenant Improvement Project Assistance
McKinney will also coordinate the creation of schedules and budgets by project type,
regions, market or any other method desired or used. Having worked in this area for
decades, we have seen it all. And we dont let the way it's always been done penalize
the Clients schedule or budget.
McKinney Advisory Group can assist the Client to track all facilities, their assets, and
construction projects including documents, schedules, and budgets related to each facility as
well as equipment detail on each facility asset.
Lease Administration
Clients often track every space, its use, and any occupancy details including association
with related subleases. Clients often desire to track facility performance history for
sales, expenses, or other metrics. We can assist Clients in the implementation of this
tracking and can later use this data for strategic insights and portfolio review.
Contingency planning affects the importance of "options" to expand, cancel or sublet space as well as length of lease term, options to buy or rights of first refusal. Creating"real options" and management flexibility in thoughtful ways that matches the Client's business needs is an important aspect of McKinney's portfolio advisory service.
McKinney Lease Administration Keeps Clients in control of important financial impact items, such as:
Critical Dates, Rights, Obligations and Kick-out Dates
CPI, Percentage Rent and Other Escalations
Rent Bumps & Additional Rent Review
Lost Security Deposits and Letters of Credit
Notices & Reporting
Lease Abstracting and Validation
Lease File Organization and Maintenance
Negotiation and Collection of lease administration disputes with landlords
Summary
While many commercial real estate firms can handle the occasional (but important) space
transaction for Clients, not many have the depth, the credentials or the experience to represent the
needs imposed by the multi-location business model. McKinney Advisory Group has more than 30
years of demonstrated success.
Lease Auditing
Lease Auditing, also known as CAM Auditing or Operating Expense Auditing, is the detailed review
and comparison between the legal definitions in the lease and what a landlord may be charging for
occupancy cost. Most companies are overcharged for items they dont even know about.
How significant is portfolio administration for a typical Client? One way to answer that question is to
convert administrative savings into equivalent sales.
Corporate Real Estate Tenant Representation
Recently, for example, McKinney Advisory Group obtained CAM and Work Letter
adjustments of almost $3 million on behalf of one client representing 15% of its base real
estate occupancy costs. At an 8% net income to sales ratio, this $3 million savings represents
the sales equivalent of adding $37.5 million in new revenue to the top line.
Portfolio Strategic Review
Best practices require that Clients with multi-location space footprints conduct a
periodic strategic review of their portfolio. This can be undertaken by McKinney along any
number of perspectives.
Scenario Analysis
Portfolio Strategy includes finding the right balance between leased space and owned space
and identifying and mitigating risk (including business continuity).
Addressing Potential Concerns
Based on our expertise, weve identified the following potential concerns and responses.
Concerns Opportunities and Benefits
Savings are too small to be meaningful
Too much time
Taking responsibilities for real estate undermines local control
Portfolio evaluation requires cost investment
The savings we can achieve through portfolio strategy and superior implementation can equal the value ofacquiring another division without the capital investment.
Attention to detail adds up.
McKinney team works with individual divisions and develops summaries and key decisions for headquartersreview and decision making.
One point of contact for Client corporate staff.
Cost savings identified are returned to individual divisions.
Individual division goals and priorities are primary business drivers tempered with consideration of corporategoals.
Initial corporate and major divisional interviews and portfolio research and evaluation for domestic locations.(Hourly rate dependent upon scale of review.)
Initial cost of portfolio review is earned back if we reduce space or avoid acquiring additional space. Pay rent orpay to save even more.
Individual transaction costs are compensated through brokerage fees and typically paid by landlords.
Lease Comparative Analysis
Summary of Alternatives
Key Lease Information
Rentable SF Usable SF Commencement Date Termination Date Lease Term (months)
Deal Points
Type of Lease Starting Rent Straight Line Rent Over Term Months of Rent Abatement Calendar Yr. Base Year Operating Expenses Estimated Operating Expenses $/rsf/year Construction Cost / rsf Landlord Const. Allowance / rsf
Tenant Paid Const. Cost / rsf
Rent Average Base Rent / rsf / year Average Gross Rent / rsf / year NPV - Base Rent / rsf / year NPV - Gross Rent / rsf / year Total Rent over Term
Occupancy Cost
Project Costs (Const., Moving, Start Up Costs) First Year Occupancy Cost Total Occupancy Cost over Term Average Total Cost / rsf / year
Average Monthly Occupancy Cost Average Annual Occupancy Cost NPV - Average Annual Occupancy Cost NPV - Total Occupancy Cost / rsf / year $/Seat/Yr
Net Effective Rate / rsf / year @ 8%
Net Effective Rate / Year @ 8%
NPV @ 8%
LL 1 Offer #1A
Address, State
120,000 109,091 3 / 2014 9 / 2024
127
Gross plus Elec $21.50 $22.72
7 2015 $8.00
$40.00 $40.00
$0.00
$22.72 $24.02 $14.79 $15.53
$28,850,000
$0 $1,820,200
$39,571,238 $31.16
$311,585 $3,739,015 $2,432,070
$20.27 $8,478
$29.91 $3,588,930
$25,739,404
LL 1 Offer #1B
Address, State
120,000 109,091 3 / 2014 7 / 2021
89
Gross plus Elec $22.50 $22.85
5 2015 $8.00
$40.00 $28.00
$12.00
$22.85 $23.71 $16.88 $17.46
$20,335,000
$1,440,000 $3,760,200
$28,592,396 $32.13
$321,263 $3,855,155 $2,900,643
$24.17 $8,742
$31.91 $3,829,618
$21,513,105
LL 2 Offer #1
Add ress, State
121,090 105,296 6 / 2014 5 / 2025
132
Gross plus Elec $17.25 $17.33
10 2014 $8.00
$40.00 $30.00
$10.00
$17.33 $18.76 $11.03 $11.83
$23,082,781
$1,210,900 $2,100,343
$32,977,904 $24.76
$249,833 $2,997,991 $1,945,195
$16.06 $6,798
$24.05 $2,911,685
$21,397,148
LL 3 Offer #1Address, State
135,056 125,052 6 / 2014 1 / 2025
128
Gross $17.50 $18.83
8 2014 $8.00
$40.00 $20.00
$20.00
$18.83 $20.21 $12.14 $12.93
$27,123,747
$2,701,120 $3,502,452
$31,812,691 $22.08
$248,537 $2,982,440 $2,000,160
$14.81 $6,763
$21.92 $2,960,024
$21,335,041
LL 4 Offer #1
Address, State
120,000 104,348 1 / 2014
12 / 2025
Gross $15.75 $17.28
2014 $8.00
$40.00 $30.00
$10.00
$17.28 $18.74 $10.67 $11.45
$24,880,000
$1,200,000 $2,590,500
$32,271,653 $22.41
$224,109 $2,689,304 $1,687,385
$14.06 $6,098
$21.77 $2,612,762
$20,248,620
Example
Corporate Counsel Lease Review
Detailed analysis of lease for LOI
Modification of document to tenant favorable language
Identification of real property site specific issues
Analyze non-standard terms and conditions
Quantify risks and obligations
Abstract pertinent provisions
Lease Audits & Portfolio Administration
Service Type Offered Brief Overview
Critical Dates Review and Maintenance
Lease Abstracting and Validation; Software System Set-up and Population
Review key dates and provide updates to client; provide reports of all lease data as requested by the client
Rent Escalation Review Assess accuracy of rent increases
Lost Security Deposits Review security deposit reconciliations from Landlord; ensure Tenant receives timely refunds and credits
Perform lease abstracts either in hard copy format or into the companys existing lease administration software
Service Type Offered Brief Overview
CAM and Operating Review operating expense billings for client
CPI, Porters Wages, Percentage Rent and Other
Invoices
Management and Administration Fees
Insurance
Calculate CPI Increases, Precentage rents, etc. and provide updates to client
Review Invoices presented to tenant and ensure compliant with lease
Utilities
HVAC (Overtime & Reimbursements)
Review pro-rata utility billings to ensure compliant with lease
Review after hours HVAC billings to ensure compliant with lease
Review management fee and administrative services billings to ensure compliant with lease
Capital Expenses Review landlord billings for capital expenditures to ensure they are allowable per lease
Review RE Tax billings and ensure Tenant is billed appropriately
Review operating expense billings and determine if Landlord is billing appropriately; Review Landlords Insurance requirements to Tenant against lease to ensure Tenant is only supplying what is required of them
Real Estate Taxes
Negotiations and Collection of Lease Administration
Square Footage Verification
Base Years and Gross-up Calculations
Calculate CPI Increases, Percentage rents, etc. and provide updates to client
Verify square footage matches lease document and is calculated based upon the
appropriate BOMA standards
Expense Ceilings and Adjustments
Ensure Landlords are using correct base year figures and grossing up lease per the terms
of the lease document
Ensure Landlords are appropriately accounting for any CAPs on operating expenses
Reciprocal Easement Agreements
Co-Tenancy and Percentage Rent
Tracking Tenant Improvement Work
Self-explanatory
Self-explanatory
FASB 13 Capital Lease Consulting
Prepare reconciliation packages to Landlord for Tenant Improvement Allowance
reimbursement
Analyze system needs for administration based upon changing laws
Lease Abstracting Lease Auditing
Total Operational Costs
At first glance, real estate costs may not appear to be large amounts. However, 9 times out of 10, obscure real estate costs are greater than the accounting presentation would indicate. Our in-house team members consist of legal, accounting, and lease audit specialists who perform detailed document reviews, lease audits, operating expense reconciliations, and identify costs to create flexibility, cash flow, and minimize overhead.
Like an iceberg, what is visible from the surface (the income statement - lease costs and depreciation) is not a true measure of real estate impact.
Underneath the surface, buried within other items are the impacts that best practice corporations capture as a part of the total cost of real estate operations.
Visible Costs Cost to Own or Lease
Rent Depreciation
Visible and Hidden Costs1. Visible Cost to Own or Lease Rent Depreciation
2. Cost to Operate Insurance, Real Estate Taxes, Utilities, Maintenance, Repair, Facilities Management, PhysicalSecurity and Project Management, CAM pass-thru
3. Cost to Provide Facility Services Janitorial, Food Service, Transportation, Mail Services, Other Services
4. Cost to Manage Locations Strategic planning, fixed asset accounting, environmental, health and safety, warehousing
The Incentive Process
Planning and RFP Preliminary Evaluation Client Requirements Project Definition RFP Process
Analysis & Initial Due Diligence Field Visits Narrow List Analytical Model
Finalist Evaluation and Selection Property Investigations Negotiations Final Selection
Incentive Negotiation and Documentation MOU or Development Agreement Real Estate Transaction Public Announcement Post Announcement Support
Importance of Disciplined Competition and Site Selection Process
1. Produces highest value of proposals of several rounds of negotiation
2. Quickly surfaces the most seriously interested locations
3. Best chance for obtaining coordinated/orchestrated offers from all agencies within a state
4. Best process for site selection other than EDIs which layers right on top of the location selection process
Potential OpportunitiesSite Selection & Incentives
McKinney Proterra transaction recognized in Site Selection for 250K R&D Facility with over $90 million in incentives.
Create multi-state competition for appropriate divisions to capture value in existing location
Respond to changes in customer structure
Significant tax savings and other benefits that go beyond real estate savings to include other savings
Credits & Grants
Exemptions & Discounts
Targeted Zones
Local Incentives
Sweeteners
Corporate Income
Tax Credits
Sales Tax Exemptions
Enterprise Zones
Tax Increment Financing
Closing Grants
Job Creation Grants
Energy Discounts
Other Special Designated Zones
(Ports, Brownfield, etc.)
Property Tax Abatements
Finance/Bond Assistance
Infrastructure Grants
Free/Discounted Land/Public
Land Disposition
Training Grants
Payment-in-lieu-of-tax (PILOT)
Misc. Other Grants and Assistance
Representative Clients
Troy, MI
Concord, Ontario
Addison, IL
Melrose Park, IL
Long Beach, CA
Orange County, CA
Rancho Dominguez,
CA Orange County,
CA Dallas, TX
Irvine, CA
Glendale, CA
Corporate Portfolios Managed
JP Morgan Chase
Citizen Communications
KIK Custom Products
NAL
Alberto Culver
Molina Healthcare
Union Supply Company
Caribiner International
Burnham Service
Company GTE
Select Assignments
Flagstar Bank - HQ
KIK Custom Products - HQ
NAL - HQ
Alberto Culver - HQ
Molina Healthcare - HQ
Applied Medical Resource Group - HQ
Union Supply Group - HQ
Trigem America - HQ Citizen Communications - HQ
Masimo Corporation- HQ
Christie Parker & Hale - HQ
120,000 Sq. Ft.
142,388 Sq. Ft.
201,110 Sq. Ft.
200,000 Sq. Ft.
460,000 Sq. Ft.
244,800 Sq. Ft.
114,920 Sq. Ft.
147,136 Sq. Ft.
225,000 Sq. Ft.
110,000 Sq. Ft.
42,112 Sq. Ft.
3
SUCCESS STORIES
4
SUCCESS STORIES
Team Member Bio Damian McKinney
Founder & CEO 562.889.2001 (ph)
858.519.3250 (fax)
dmckinney@mckinneyadvisory. com
License #00777218
Damian has 32 years of experience in national commercial real estate investment and consulting.
Damian began investing in value-add commercial real estate opportunities in 1985. Prior to investing in
value-add transactions, Damian had been recognized as one of the nations preeminent corporate
services advisors since 1979. His intellect and negotiating skills, combined with his experience in multi-
market real estate transactions, his relationship with governmental agencies, corporations (both
domestic and international), and national real estate brokerage companies have contributed to the
profitable acquisition of properties throughout the United States.
Areas of Expertise
From 1985 to present, Damian has been acquiring value-add real estate. Damian has extensive
experience in hospitality, multi-family, retail, commercial and industrial investments.
Value-Add Transactions
Distribution Center, Fort Wayne, Indiana (1,000,000 SF) Distribution Center, Metro Washington DC (660,000 SF) The Modern Honolulu, Honolulu, HI as the only 4 diamond boutique brand hotel in Hawaii (360-key hotel) The Wyland Waikiki Resort & Spa, Honolulu, HI (400-key hotel Airport Center, Honolulu, HI (110,000 SF office building The Cannery at Iwilei, Honolulu, HI (100,000 SF office/industrial project Waikalua Bayside Estates, Honolulu, HI (20-lot home site development New Phoenix Hotel - To be repositioned (100-key hotel) Sand Island Industrial Building, Honolulu, HI (54,000 SF)
Nationally, Damian has been involved in the acquisition of properties in Hawaii, California, Utah,
Illinois, Indiana, Ohio, Georgia, and Maryland that have a fair-market value in excess of $500 Million.
Client Representations
Ford, Boeing (formerly McDonnell Douglas), TRW, Northrop Grumman, Alberto
Culver, Hughes aircraft, Bell & Howell, U.S. Frieghtways, Emery Airfreight, Bekins,
Molina Healthcare, Proterra and BAX.
Service Specialization
Tenant Rep (Full Service), Economic Development Incentives Procurement,
Tenant Portfolio Administrator & Investment Sales Principal.
Associations & Accreditations
Education
University of Southern California, Bachelors Degree in Business
Administration, Finance Emphasis
Board Member and Founding Member - All Kids, Inc., Los Angeles Vice Chair of Board of Directors San Diego North Economic Council Vice Chair of Board of Directors San Diego Center for Children Board Member - Academy of Our Lady of Peace, San Diego Past Member - American Industrial Real Estate Association Board of Directors Member - Los Angeles American Cancer Society Past President of Board of Directors - Kids Included Together
Recognitions
2014 San Diego Daily Transcripts Top Influential 2014 Center for Wealth and Legacy Inspirational Award Winner
Five office building portfolio, Orange County, CA (220,000 SF)
Team Member BioJulie Dunlap
Corporate Real Estate Advisor & Portfolio Lease Administration
858.519.3247 (ph)
858.229.5597 (cell)
jdunlap@mckinneyadvisory.com
License #: #01243401
Julie joined McKinney Advisory Group, Inc. with over 20 years of commercial real
estate experience. She has extensive experience coordinating real estate transactions
with owners, real estate brokers, attorneys and investors. Julies paralegal
responsibilities include preparing and reviewing legal documents for managing
properties, acquisition and disposition of properties and corporate leasing
transactions. She has the responsibility of oversight of acquisitions and management
of assets in excess of $500 million. Julie has property management experience for
industrial and office projects. Her property management responsibilities include
preparing and negotiating leases, reviewing CAM reconciliations and annual
budgeting, asset management and maintaining tenant relations.
Areas of Expertise
Prepare and review acquisition and disposition documents, correspond with
attorneys, brokers, escrows and vendors to administer all steps in the development
and escrow processes, and prepare proposals and documentation to assist in
commercial real estate transactions.
Value-Add Transactions
Nationally, Julie has been involved in tenant representation, acquisition and disposition
of properties in Hawaii, California, Utah, Illinois, Indiana, Ohio, Georgia, and Maryland
that have a fair-market value in excess of $500 Million.
Client Representations
Christie, Parker & Hale, Union Supply Company, The Harbor Club, MMW
Inglewood, LLC, Nikkiso, Neighborhood House Association, and Gunderson
Dettmer
Service Specialization
Investor Relations Coordinator, Tenant Rep (Full Service), Acquisitions
and Dispositions Administrator
Associations & Accreditations
Education
Colorado State University, B.S., Organizational Leadership and Management
Spokane College, A.A.S. Legal Sciences/Paralegal Certificate
Salesperson License | California Department of Real Estate
Notary Public State of California
The Harbor Club, San Diego, California | Board Member
American Lung Association Leadership Committee
Association of Legal Administrators | Member
Team Member BioPeter Quinn
Corporate Real Estate Advisor
858.519.3256 (ph)
858.864.8491 (m)
PQuinn@mckinneyadvisory. com
License #00806439
Peter has32yearsof experience in commercial real estate brokerage, development, investment
and consulting. Peter began developing and investing in commercial real estate opportunities
in 1985. Pursuit of joint venture development opportunities led to corporate real estate
assignments with Eastman Kodak, Texaco USA and Eli Lilly. These relationships and experience
led to the founding of Parkstone Companies, a provider of corporate real estate services to Fortune
500 companies, investors and major financial institutions, including Security Pacific Bank, Bank of
America, Wells Fargo, and Sumitomo Bank. Quinn led southern California based Voit
Development Companys efforts in San Diego from 2003 to 2007, becoming the third most
active real estate development company in the region while developing or acquiring nearly
1,000,000 square feet of office and industrial product.
Areas of Expertise
Since 1985, Peter has been assisting his partners, investors and clients on the development,
acquisition or repositioning of commercial properties. Peter has extensive experience in office,
industrial, multi-family, and retail investments.
Value-Add Transactions
Client Representations
American Hospital Supply, Hughes Corporation, Oakley, Eastman Kodak, Eli Lilly,
Texaco USA, CalFed Enterprises, Bank of America, Wells Fargo, Sumitomo Bank
Service Specialization
Investment/ Development Advisory, Tenant Rep (Full Service), & Investment
Sales Prinicpal
Associations & Accreditations
Education
B.A. in Business Administration, San Diego State University, Finance Emphasis
Maritime AllianceBoard of Directors San Diego Chamber of Commerce Member San Diego North Economic Development Council Member Junior AchievementMentor Port Tenants AssociationMember InSoCal CONNECTSteering Committee
Canyon Plaza, Development, 168,000 SF Class A office, $45,000,000 project
WaterCourt, Reposition, 173,000 SF, $16,000,000 saved
Texaco USA, Portfolio Assessment and Business Plan Development, 75,000 acres, Unimprovedand un-entitled land, $120 million added balance sheet value
Chula Vista Commerce Center I, Industrial Condo Conversion, 78,614 SF, $6,000,000 added value
Chula Vista Commerce Center II, Industrial Condo, 184,136 SF (this is the largest industrialproject built in Chula Vista in 25 years), $19,000,000 project
Why Team with McKinney Advisory Group?
McKinney has chosen to take a Best Practices approach to the comprehensive real estate services, which it provides to all of its clients. These services include site selection, financial analysis, contract negotiations, and architectural, construction and project management coordination. Our philosophy embraces the idea that a lease and/or purchase is not finished until such time as our client vacates the premises. McKinney prides itself on taking the long term approach to relationship management, as well as uncustomary client service and support.
McKinney is a leading advisory firm when it comes to adding value to Corporate Americas bottom-line. McKinneys creativity, ingenuity, dedication, and tailored approach to its clients needs assures a maximum return to clients shareholders.
Full-service nationwide Tenant Representation brokerage services
Complete centralized lease administration and audit services
Thorough Economic Development Incentives (EDIs) benefits and savings analysis
Highly experienced, full service team dedicated to servicing our clients real estate
needs (often acting as our clients in-house real estate team)
Strategy development first, process implementation second
Virtual business partner with the ability to evaluate opportunities and challenges and
create innovative solutions
Provide counsel at all levels of real estate cycle and ensure real estate goals meet
the business goals
Reduce occupancy costs related to real estate
Comprehensive understanding of all real estate costs, both direct and indirect, results
in savings beyond the rental rate
Market Coverage
The Why Behind What we Do!
Volunteerism
Our teambuilding often takes the shape of volunteer opportunities. We get excited about supporting organizations
through walks, events, and gardening at the local homeless shelter. Many of our staff also serve on committees
for nonprofit philanthropic organizations, providing strategic support and fundraising assistance. Together we
have rebuilt a garden at the local homeless center, raised awareness and walked for local organizations, and
committed to feeding homeless teens on a recurring basis. We gather supplies, toys, as well as consult on strategy
and growth plans. We enjoy getting involved and lending a helping hand whenever we can.
Annual Charity Event
Our signature event each year is our Annual Holiday Event. McKinney Advisory Group organizes and supports,
with the help of local sponsors, an annual giving back event. We invite top CEOs and decision leaders of San Diego
to meet four outstanding nonprofits. Each guest is given a $100 voucher to donate to the charity of their choice.
We bring together like-minded people who care about philanthropy and the San Diego community. This event is
not about the funds raised, or sales presentations, rather the invaluable connections made and celebration of
giving.
We prefer working with companies and nonprofits who are changing lives and creating a positive impact for their
customers or causes they serve. If you feel you are one of those nonprofits or companies that fit into our model we
would love to partner with you to make a difference. We continue to better our services in real estate learning more
about new companies and social missions along the way. We enjoy working on projects that leave the community and
families they touch in a better way.
Our company culture at McKinney Advisory Group is not like many other
firms. We believe in our sense of purpose and commitment to making the world
a better place. Our goal is to help people and companies achieve their visions. This
might sound fluffy or too good to be true so let us explain how we work
differently.
Relationships
McKinney Advisors are truly advisors to our clients. Our clients are people with
dreams and goals. Our clients have families, support other families and are part of
their communities. We understand our clients responsibility to others which
translates to part of our strong sense of fiduciary responsibility to our clients. Our
legal obligation to our clients extends far greater than the best recommendation, it
is a relationship from which we both grow and benefit.
Servant Leadership
With our company and communities, we strive to be Servant Leaders. Servant
Leadership is an ongoing commitment to work as a team that serves each other
and the community. We support our team in continuing education,
family, board of director duties, and the best part is, our clients receive the
benefit of teamwork with multiple strengths rather than just one broker. Servant
Leadership is at the heart of who joins McKinney Advisory Group at every level.
Our team comes to work for McKinney Advisory Group because they believe in
serving others. Our culture is a dedication to doing the right thing, committing to
achieving our clients visions, and making a positive impact in the world.
Partnering with Nonprofits
Our Corporate Social Responsibility is our platform for everything we do.
McKinney Advisory Group seeks to enhance the bottom line and social
impact of nonprofits in our community. Through our business relationships we
have supported many nonprofits with our gifts of time, talent and treasure.
Our advisors are also encouraged and supported as they sit on many nonprofit
Board of Directors. We have a dedicated individual in our staff to assist with
our commitments to nonprofits and make sure we are utilizing our resources to
meet all our nonprofit partners needs effectively.
Founders Letter
Dear Prospective Partner, Thank you for taking the time to get to know McKinney Advisory Group. First, you should understand why we work in commercial real estate, which
is the opportunity to create meaningful relationships and give back to the community. McKinney Advisory Group is founded on the principle that the more
success we have as a company the more we can give back to others. We work as a team to better serve our clients as well as enrich our communities through
volunteering, board memberships and strategic partnerships with nonprofits.
The way in which we practice real estate at McKinney Advisory Group is different. Too often, commercial real estate transactions end when a tenant is handed
the keys to their new space. A typical broker believes that their job is done after closing and they are on to the next deal. However, we
see the closing of one transaction as just the beginning of the next. At McKinney Advisory your competitive advantage is our long-term commitment. We have
enjoyed 30+ year relationships with our clients and believe trust is the key to any successful business venture. Our relationships are built on listening, understanding, continuously
engaging with our clients, and executing a customized strategy to add to their bottom line.
and executing a customized strategy to add to their bottom line.
Time and again I hear our clients say "You really are advisors!" This rings true with everyone at McKinney Advisory. Each advisor on our team brings a high level of competence,
ethics, and a special skill set to every assignment. Our in-house brokers, property managers, legal counsel, project managers, portfolio administrators, and financial analysts pride
themselves in finding customized solutions and creating value-add services for our clients. Further, we seek to enhance the traditional broker representation model by providing
many of our services at no extra cost to our clients.
Whatever your passion, your business, your philanthropic endeavors, we are confident in creating a customized solution to fit your needs.
Yours Truly,
Damian McKinney
Founder and CEO
dmckinney@mckinneyadvisory.com
Our relationships are built on listening, understanding, continuously engaging with our clients,