PERSONALIZED SERVICE
Property consulting firm zumBrunnen, Inc. heeds the call.
Julie Fritz
During this difficult time for the real estate industry, Atlanta-based
zumBrunnen, Inc., a national construction and property services consulting
firm, is helping owners, developers and investors meet their objectives.
President and Founder John zumBrunnen describes his company' philosophy,
Build it Right/ Manage it Right?, this way: "We provide customized solutions
for every client and every project, whether it is before, during or after
constructionS. The classic approach of providing standardized consulting
reports and services simply does not work for the real estate client."
The following examples demonstrate how zumBrunnen, Inc. has fulfilled
its client' needs with proactive, customized strategies.
Shell Point Retirement Village
When
the owners of Shell Point Retirement Village, a landmark retirement community
in Fort Myers, Florida, needed to assure their investors that the $150
million expansion would be built to the highest of standards and delivered
on time and on budget, they hired zumBrunnen, Inc. (zBI) as the owner'
and investor' representative. Responsibilities included design and contract
review, construction monitoring, budget management, payment approvals
and schedule reporting. Thus far, the project has been a success and is
currently on budget and on schedule.
As the most recent phase of construction neared an end, zBI supplied
the owners with its FacilityForecast? Software, a state-of-the-art capital
budgeting program to enable the community to meet their needs and keep
track of the long-term capital expense requirements for the entire facility.
"John [zumBrunnen] offered sound insight to the project from the early
negotiations with the contractor through the final punch list," says Robert
Southern, director of development. "He was a team player and helped bring
harmony to the project. When the owner, contractor or architect were in
disagreement, John reviewed each position and found workable solutions.
We are now in the process of developing our capital reserve program and
are excited to be able to not only identify our capital needs, but manage
and price our product accordingly."
Gold Kist, Inc. and Cotton States Insurance Corporate Headquarters
GC Properties, an Atlanta-based partnership for Gold Kist, Inc. and Cotton
States Insurance, wanted to assess its 20-year-old headquarters building
for purposes of long-term budget planning and immediate repair needs.
The company hired zBI to complete the job. The work was completed in short
term to provide GC Properties with valuable year-end financial information.
The reports, charts and graphs were again a product of zBI' FacilityForecast?
Software.
Senior Vice President Michael Stimpert and Director of Corporate Office
Services George Crawford, both with Gold Kist, acted as property managers
for GC Partnership. They note, "The budget reports helped us to systematically
prioritize the capital needs and clarify our overall strategic plan for
this facility."
Cameron Village
zumBrunnen,
Inc. also completed a feasibility study for Branch Properties LLC. The
company needed the study for a competitive bid to purchase 550,000 square
feet of retail shops and 75,000 square feet of office space. The properties
occupied six city blocks in the historic district of Raleigh, North Carolina,
and were constructed and renovated over a 50-year period starting in 1949.
The work was especially challenging due to the various buildings and ages,
and the reports had to be delivered within a 45-day due diligence period.
To keep on schedule, cost data was fed to the client as the data was developed.
"As the project unfolded, zumBrunnen, Inc. worked effectively by keeping
in constant touch with our office as issues were identified," notes Richard
Lee, partner with Branch Properties. "Bill Burke, the senior project manager
with zumBrunnen, Inc., kept us fully appraised and openly discussed the
various options and philosophies to help bring this deal together. Had
Bill taken a classic approach of simply producing and delivering the final
report without our input, we would have had far less time to evaluate
and digest the numbers to determine if the deal was to go forward. Ultimately,
we were the successful bidder and were able to close the deal."
Multi-Property Apartment Disposition
Although zBI has specialized over the years in producing property condition
surveys for acquisitions, Post Properties, a national multifamily real
estate investment trust (REIT), hired the firm to assist on the disposition
side. As six projects were readied for sale in the Southeast, zBI produced
reports on each to identify immediate repairs and a 5-year capital reserve
budget to address issues that might impact the sale.
Doug Gray, senior vice president with Post Properties, praises the survey,
saying, "As part of our effort to extend the Post brand to our disposition
program, we have found it beneficial to identify and disclose potential
issues upfront as we price and bring a property to market. This essentially
eliminates the possibility for a significant issue to be discovered by
the purchaser, which can reopen the door to negotiations. Any time a deal
has to be renegotiated, the process can prove to be costly for all parties,
especially if the deal unravels."
Cost data from each property can be merged collectively to develop a
reference database for managing and benchmarking. These reports can then
be provided to the respective property managers to help them critique
their own performance.
Westin Charlotte Convention Center Hotel
When the lead lender, Wachovia Securities, Inc. of Atlanta, wanted a
firm to monitor construction financing of the Westin Charlotte Convention
Center Hotel, a $150 million project in Charlotte, North Carolina, zBI
answered the call.
Warren Snipes, vice president for the developer, Portman Holdings, says,
"As the construction lender representative, zBI has proven to be a proactive
team member by helping to identify potential issues before they became
serious problems. Their approach works well with the project team, facilitating
solutions for the various challenges that come up during the construction
process. When extremely difficult issues had to be dealt with in negotiations
with the contractor, Rick Alcala, senior project manager for zBI, participated
in developing solutions that resolved the issues. Working as an objective,
independent third party to the team, the company proved to be an asset
to the project, versus being an added burden simply imposed by and for
the benefit of the construction leader."
"The key to these types of success stories is the ability of a consulting
firm to combine professional savvy, knowledge of markets and customized
responsiveness to meet the client' specific needs on a project-by-project
basis," says John zumBrunnen. "Additionally, to deliver value-added services,
it is paramount the consultant remain objective, be a good facilitator
and bring creative thinking to the table."
©2002 France Publications, Inc. Duplication
or reproduction of this article not permitted without authorization
from France Publications, Inc. For information on reprints of
this article contact Barbara
Sherer at (630) 554-6054.
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