Conference for Catholic Facility Management G460

Transcription

1 Conference for Catholic Facility Management G460 How to Optimize Property and Buildings: Real Estate Asset Management, Keep/Sell Strategies, and Case Study Diocese of Charleston SAV1504 Speakers: Lydia Doyle Thomas M. Justin, CRE Kathleen Rose, CRE May 12, 2015

2 Credit(s) earned on completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-aia members are available upon request. This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. ============================ Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

3 Copyright Materials This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speakers is prohibited. The Counselors of Real Estate Conference for Catholic Facility Management (CCFM) 2015.

4 Course Description One of the most important strategies for Church leaders today is optimizing real estate assets. This session will provide practical information about how to inventory property and buildings, establish values, develop keep/sell strategies, identify best options for adaptive reuse, maximize revenue and manage the real estate portfolio to best serve the needs of the Diocese, parishes and Church members. This session will also feature a case study of a project conducted by volunteers in The Counselors of Real Estate s (CRE) public service initiative The CRE Consulting Corps for the Diocese of Charleston. The project addressed growth and resource allocation to enhance and sustain a vibrant Diocese, and provided a strategic action plan.

5 Learning Objectives Using examples, options, and a case study, at the end of the program, participants will: 1) Understand important strategies for optimizing real estate assets throughout a Diocese. 2) Learn best practices for asset management and elements of a strategic action plan, including property inventory and keep/sell strategies.

6 Learning Objectives (cont d) 3) Understand how establishing a real estate department at the Diocesan level can provide important oversight for Church real estate assets, some of which are currently owned/managed by the Diocese and some by parishes, and how such a department can be organized. They will also learn ways to effectively work with parishes to establish an understanding of the value such a department can offer them. 4) Learn how to evaluate and select a resource to advise the Diocese about optimizing real estate assets, with details about the Diocese of Charleston s process and selection.

7 Case Study DIOCESE OF CHARLESTON

8 Counselors of Real Estate CRE Members: Recognized records of accomplishment Commitment to excellence Uncompromising adherence to high standards of professional conduct Visionary, yet practical, approaches to real estate issues

9 CRE Public Service Initiative The CRE Consulting Corps provides members the opportunity to give back and offers clients: Experience Professionals with proven track records Objectivity Superior, non-partisan, objective advice Cost-Effectiveness Fees at a fraction of current market rates Time-Efficiency Advice and recommendations provided quickly

10 The Charleston Consulting Team Areas of expertise: corporate and not for profits real estate management land planning, zoning, and entitlement expertise brokerage demographic forecasting financial advising, especially with religious institutions strategic planning Combined Experience of 172 years

11 The Assignment Establish a strategic framework for managing Diocesan real estate holdings; Provide an action plan for implementation; Develop short & long term strategies for expansion; Provide best practices road map to accomplish strategies

12 The Process Site Evaluation Data Immersion SWOT Vision Framework Action Plan

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14 Concentrations of Catholics County # of Catholics Charleston 25,000 Richland & Lexington 25,000 Greenville 24,000 Horry (Myrtle Beach) 19,000 Beaufort 18,000 York (Charlotte) 17,000 Total 128,000 ~ 69% of state totals

15 Comparative Assessment Rank Catholics Population % Catholic Diocese ,139 5,904, % Atlanta ,909 4,024, % Raleigh ,413 4,054, % Charleston ,583 1,696, % Charlotte ,987 2,630, % Savannah Source: catholic hierarchy.org; 2005 Statistics by Diocese

16 Organization

17 Current Reality A strong faith community A generous diocesan A high level of trust A dedicated staff Need for more vocations Need for additional talent Need to expand/empower communication Property not in the right places to support growth Organizational structure needs realignment Compensation structure needs realignment Deanery structure needs rethinking

18 The Mission/Vision To manage growth and allocate resources to enhance and sustain* a vibrant Diocese *financial *human *physical

19 Strategic Framework Trinity Plan Create an enabling structure to achieve the mission Identify and maximize existing assets Facilitate growth and expansion

20 Create an enabling structure to achieve the mission 1. Establish a professional real estate department To strategically plan for growth To strategically manage existing assets 2. Establish personnel, policies, procedures and initiatives To maintain existing assets To expand and/or develop new facilities 3. Professionally manage department and assets Engage and empower qualified professionals Establish best practices, benchmarks, timelines and outcomes. Discipline!

21 Identify & maximize existing assets 1. Organize and consolidate a comprehensive property data file 2. Plan for ongoing asset protection Structural and land (legal and reports) Furniture, fixtures, equipment and temporal/spiritual collections Property condition report/risk management Capital Expenditure plan/budget 3. Create an Asset Business Plan for the entire portfolio Identify priorities Determine buy/hold/improve/sell for each asset within the plan

22 Property Inventory Buy Sell Hold Redevelop Property Acreage +/- Tax Assessed Value * Daufuskie Island 24 $325,000 Mt. Pleasant 17 $ n/a Folly Road 4 $381,000 Blythewood 36 $ n/a Garners Ferry 10 $70,000 West Chancery 5 $2,000,000 Bishop Thompson House n/a $250,000 McCormick County 1 $ n/a Total potential value $3,000,000 5,000,000 +

23 Facilitate growth and expansion 1. Evaluate Deanery structure Today there are 5 realign to ±7 Create strong Deans 2. Evaluate and enable human resources to support growth 3. Develop resources and policies for expansion and construction project management Presbyterate demographics related to age and tenure Staff salary/compensation versus skill sets and contribution Develop capacity to better manage existing properties Enhance capacity for managing growth

24 Presbyterate /29 30/39 40/49 50/59 60/69 70/ # of Priests

25 Strategic Framework Trinity Plan Create an enabling structure to achieve the mission Identify & maximize existing assets Facilitate growth and expansion

26 BIG Ideas..for consideration Bold Innovative Goal-oriented Rethink the Deaneries from 5 to 6 or 7 Locate all DOC leadership at Chancery to govern entire Diocese and strengthen its communication and identity Focus on one strong Chancery

27 BIG Ideas..for consideration Bold Innovative Goal-oriented Redevelop Cathedral parish parcel as new Chancery Retain existing downtown Chancery (e.g.conference center; priest retirement home) Sale of future Chancery sites (60 of 100 acres acres) could net additional ±$2,000,000)

28 The Rest of the Story Formed a Real Estate Committee Established policies and guidelines to govern real estate transactions Realigned the deaneries into a seven deanery model Found a way to retain ownership of downtown chancery Obtained appraisals for current extra property

29 The Future Diocese Relocate all chancery staff to new location Form a Real Estate Department Begin to liquidate unnecessary real property assets Real estate software program

30 Questions? 430 North Michigan Avenue Chicago, Illinois (312)

31 Find the Expertise you Need Assess your needs Consider if the expertise you need is available locally CRE can assist ( ;

32 This concludes the American Institute of Architects Continuing Education Systems Course. Conference for Catholic Facility Management Contact: Andy Guljas (765)