Board of Trustees Meeting The University of North Carolina at - - PowerPoint PPT Presentation

Board of Trustees Meeting

The University of North Carolina at Greensboro

Transitioning From McIver to New Nursing & STEM Building

September 21, 2016 BAC-2.1

McIver Building

• Approximately 130,000 gsf
• Currently 18 departments occupy in varying

degree

• Space occupied by those departments may

not provide best fit

September 21, 2016 BAC 2.1

McIver Today is Nursing Tomorrow

September 21, 2016 BAC 2.1

Implementation of 3 Guiding Principles

• Academic instruction and academic instructional

support service functions with heavy student interaction and/or student use will be concentrated in the center of campus.

• Administrative functions will be located further
• ut from the center of campus and in some cases

beyond current campus boundaries.

• Academic administration and other

administrative services campus edge or off campus.

September 21, 2016 BAC 2.1

Potential Locations for Relocation

McIver UNCG Auditorium

September 21, 2016 BAC 2.1

Strategy for Theater Department

• Cost of Acquisition: $1.2M
• Cost of Renovation: $3.2M
• Gross Square Feet: 17,882
• Assignable Square Feet: 11,576
• Renovation $/GSF: $179
• Much of the renovation is used

to build specialty space

Approximately 6,353 square feet

September 21, 2016 BAC 2.1

Strategy for Impacted Administrative Units

• Cost of Renovation: $4.9M
• Gross Square Feet: 36,220
• Assignable Square Feet: 23,543
• Renovation $/GSF: $135

September 21, 2016 BAC 2.1

Collaboration and Hard Work Leads to Rightsizing

• McIver departments not returning to the new

nursing building used 63,237 assignable sf in McIver.

• While all moves associated with these properties

will only require 36,596 assignable sf.

• Examples: repurpose of space from higher

density in McNutt, Campus Supply storage and re-capture of offices at 2300 Oakland Avenue.

September 21, 2016 BAC 2.1

Our Strategy vs Traditional Lease

• Based on market rates for similar lease space

and general vicinity, likelihood of finding lessor to offer a lower annual cost for space and upfit is less likely.

September 21, 2016 BAC 2.1

Our Strategy vs Traditional Lease

• This model allows us to lock in annual rent

amounts for 30 years while traditional lease would be limited to 10 years exposing us to inflating rent expense.

• In the end, the University is “renting to own”

and will own an asset in very desirable locations.

September 21, 2016 BAC 2.1