Maximize site utilization and share operating expenses in a retail condominium format
NEED
West Suburban Bank – a local, family-owned business since 1962 – needed to fill gaps in market coverage at the lowest capital. Management also wanted the bank to own the property rather than lease, and reduce operating expenses. The ideal locations were too large for a single tenant development.
Q2 PROCESS
We presented the bank with several alternative locations to expand its footprint and better cover its market. We selected two prime locations and crafted innovative solutions for the bank to acquire them at the lowest possible costs. Working with the bank’s architect, we designed approximately 6,000- and 10,000-square-foot buildings, including a 2,500-square-foot branch bank with three drive-thru aisles. The design gave the bank a strong market presence and also maximized use of the overall site. We managed site selection, acquisition, underwriting, entitlement, construction and post construction phases. Upon completion we sold the bank its branches at a predetermined price. To further reduce capital costs, we partnered with the bank to develop a condominium project that fully utilized the site. The bank owns its branches and we own the balance of the retail space. This allowed the bank to meet benefit annually from reduced taxes and operating expenses.
RESULTS
Our process gives clients the greatest opportunity to make the right decision. We saved the bank more than $950,000 in capital costs compared to owning the entire property as a single branch. Our creative condominium structure allowed the bank to meet its objectives for site maintenance and reduced operating expenses for CAM and tax. The ownership concept maximized the development potential of the site, and the additional retail made the project more enticing to the local municipalities.
