6-10-16

4A — June 10 - 23, 2016 — M id A tlantic

Real Estate Journal

www.marejournal.com

M id A tlantic R eal E state J ournal By Caroline Shelly, LEED AP, HF Planners, LLC Unrealistic budgets – or “How to overcome headache # 2”

C orporations held their money very closely these past years and now real-

identify what the end user is hoping to achieve and blend what the Facility Manager needs in order to avoid head- aches along the way: 1. Determine the wish list from the end user, and if there is an order of magnitude on what they want in the space. For example, can the existing lighting be reconfigured or is there an expectation on add- ing soffits and various lighting scenes for presentations? 2. Are specific furniture re- quirements expected, such as table top connectivity? If so, is there a commercial furniture dealership that can provide such equipment?

3. Is an Interiors Group or Architect needed to help de- velop the scope of work and prepare the construction docu- ments to go out to bid? 4. Is an Engineering Group’s expertise neededwhen it comes to the expansion of space sce- nario and how the HVAC and electrical capacity needs to be modified? 5. How do you handle the end users last minute requests to interface TV monitors as op- posed to overhead projection? 6. A contingency factor should be included in the budget for unforeseen site conditions. Successful cost containment

can be achieved, but it’s impor- tant to work with professionals who have a successful track record. They should be knowl- edgeable in office planning and design, contract documents, project management, and they should be capable of selecting construction materials and systems in order to minimize long-term maintenance and operation costs. Cost estimates should be developed during the design development stage as the materials, furniture, equip- ment and systems are being selected. Once approved, con- tract documents are developed for bidding. Construction costs are im- pacted by the design, building location, materials selected, accuracy and completeness of the construction documents. Change orders occur due to revisions to the scope brought about by the end user, errors or omissions in the construc- tion documents, interpretation of the building code, building inspector requirements or un- expected building conditions. By developing the project based on the approved budget and/or developing a budget based on the end user’s wish list is something a successful Interiors Group can help with, and thereby help the Facilities Manager to avoid headaches. Caroline Shelly, LEED AP, is principal of HF Plan- ners, LLC. n Redwood Team completes Mount Vernon sale MOUNT VERNON, NY — Redwood Realty Advi- sors announced the closing of two apartment buildings in Mount Vernon for a price of $7.5 million and a cap rate of 6.9%. The two properties are located on the same block of South Second Ave. The sale included one 34-unit apart- ment building and a second mixed-use apartment with 35 apartments and seven com- mercial spaces. This was a unique situation where the seller had previ- ously retained two other bro- kerage firms, neither of which were able to find a suitable buyer, said Thomas McCon- nell, CCIM , managing part- ner at Redwood Realty. Redwood Realty Investment associates Michael Scrima and Thomas Gorman bro- kered the transaction. n

gets. The FacilityManager will need to educate these end us- ers on how costs have changed. For example; your Market- ing department wants to create a multi-use training room out of two offices. The basic price per square foot is a good place to start and in the NY tristate area, pricing is running $74.23/ SF (Q1 Commercial Brokerage Avison Young average of Class AMidtown/Manhattan Office). However, determining the scope of work prior to a “guess- timate” can help minimize cost overruns along with disap- pointment, frustration, and headaches for the end user. The following list can help

ize that ex- isting office space may no longer meet the end us- er ’ s needs . Departments may discov- er that they have money

to spend by the end of the year on some “pet” projects and reach out to the Facility Man- ager for assistance. The issue then becomes about managing expectations of the end users who may have unrealistic bud- Caroline Shelly

Attention Builders/Investors: Charlestown Township Orders 2 Land Properties to be Sold. Located in Dynamic Great Valley/Malvern area AUCTION REAL ESTATE

Property #1: Valley Hill Rd, just E of Rt. 401

Four-lot approved residential subdivision • Wooded Area of fine homes $35,000 Bank Cashiers Check needed to register to bid on the real estate at time of auction.

Property #2: 6.44± acres Zoned I/O/B- Ind/Office/Business

Auctions held at The Desmond Hotel, 1 Liberty Blvd., Malvern, PA 19355 Monday, June 27, 2016 — 1:30 PM You may walk the lands at your own risk 3017 Phoenixville Pike Corner of Yellow Springs Rd • Across from Great Valley Corp Center • 5 mi. to King of Prussia, 2 mi. to Turnpike entrance • at Route 29 • Includes large historic dwelling required to be rehabbed $25,000 Bank Cashiers Check needed to register to bid on the real estate at time of auction.

For terms & details visit traiman.com or call 215-799-0655

REAL ESTATE AUCTION CO. Broker/Buyer Co-op

PA AY000040-L NJ 7837064

EQUALHOUSING OPPORTUNITY

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