OUTSOURCING PROPERTY MANAGEMENT A CASE STUDY SHOULD WE OUTSOURCE? IF SO, HOW?

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1 OUTSOURCING PROPERTY MANAGEMENT A CASE STUDY SHOULD WE OUTSOURCE? IF SO, HOW? 4/21/2015

2 Lance Matteson, Executive Director Clarence Nelson, Asset Manager Mark Flynn, Board Member

3 1. Introduction 2. Overview: SEED s housing portfolio 3. Whether to Outsource 4. How to Outsource 5. Q&A

4 What SEED is and does Context of SEED s outsourcing decision Two part process

5 Clarence Nelson One size does not fit all SEED s affordable housing portfolio/goals Many property management choices

6 SEED Property Mix

7 Courtland Place at Rainier Court 3700 Rainier Avenue South 208 Units PROJECT TYPE: OWNER: PROJECT COST: FINANCING: New Construction Mixed-Use Affordable Housing Rainier Court Associates LLC & SEED Managing General Partner $24 Million US Bank, Washington State Housing Financing Commission, City of Seattle, State of WA, US Environ. Protection Agency, Apollo Housing Capital, and King County

8 The CLAREMONT PROJECT TYPE: New Construction Mixed Use - Affordable Housing OWNER: Walden LLC & SEED Managing General Partner 3333 Rainier Avenue South 68 Units PROJECT COST: FINANCING: $17.7 Million US Bank, Washington State Housing Financing Commission, City of Seattle, US Environmental Protection Agency, State of Washington, King County and the Rainier Valley Community Development Fund

9 The Dakota at Rainier Court 3700 Rainier Avenue South 178 Units PROJECT TYPE: OWNER: PROJECT COST: FINANCING: New Construction Mixed Use - Affordable Housing Rainier Court Associates LLC & SEED Managing General Partner $27.8 Million US Bank, Washington State Housing Financing Commission, City of Seattle, US Environmental Protection Agency, Apollo Housing Capital, State of Washington, and King County

10 The Charlestown Apartments th Avenue South 7 Units POJECT TYPE: OWNER: PROJECT COST: FINANCING: A mix of incomes ranging from below 50 % and 65% of median income. SEED $1.5 million. Tax-exempt bonds; Key Bank; Washington Community Reinvestment Association, City of Seattle and State of Washington.

11 Nuuanu Pali 5031 Martin Luther King Way S 19 Units PROJECT TYPE: OWNER: PROJECT COST: FINANCING: Acquisition, Rehabilitation Affordable Housing SEED Managing General Partner $2 Million Tax Exempt Bonds, City of SEA, State of WA, WA Community Reinvestment Assoc., WA State Housing Financing Community, Low Income Invest. Fund, Local Initiatives Support Corp, Impact Capital

12 Lake Washington Apartments 9061 Seward Park South 366 Units PROJECT TYPE: OWNER: PROJECT COST: FINANCING: Acquisition, rehabilitation Joint venture, SEED/ A.F. Evans Company $25 Million Tax Credits, Tax Exempt Bonds, City of Seattle, State of WA, Washington Community Development Loan Fund (WCDLF), LISC, Seafirst Bank, U.S. Bank, KeyBank, NEF, and Washington State Housing Finance Commission

13 Oregon Place 3600 S Oregon Street 39 Units PROJECT TYPE: OWNER: PROJECT COST: FINANCING: Rental units for low income families; acquisition and rehab SEED $4.1 million Washington Community Reinvestment Association (WCRA); Federal Home Loan Bank; State and City Housing Funds

14 3904 Martin Luther King Jr. Way PROJECT TYPE: Acquisition, moderate rehabilitation 3904 Martin Luther King Jr. Way South 33 Units OWNER: SEED PROJECT COST: $850,000 FINANCING: HUD Rental Rehabilitation, Federal Home Loan Bank, Seafirst Bank, City of Seattle, and Local Initiatives Support Corporation (LISC),

15 Lilac Lodge Apartments th Avenue South 44 Units PROJECT TYPE: OWNER: PROJECT COST: FINANCING: Acquisition, rehabilitation Lilac Lodge Community Organization, SEED Sponsor and Project Manager: $1.9 Million HUD

16 Total Affordable Units: 1007 Total Commercial SF: 33,000

17 Lance Matteson Business school outsourcing criteria SEED s outsourcing cost-benefit analysis Quantitative versus qualitative factors

18 HOW TO OUTSOURCE: Attributes of a good RFP process The RFP process Practicalities of implementation Implementing the RFP Implementing the contract Mark Flynn

19 Define Task Issue RFP Review Proposal Interview Finalists Select Firm Negotiate Standards Sign Contract Recruit Candidates Check References Visit Sites

20 Contact info for SEED 5116 Rainier Ave. S., Seattle, WA

21 SEED Brochure SEED Property Management RFP SEED Outsourcing Cost-Benefit Analysis Property Management Selection Criteria

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