50 South 10th Street

Ryan has managed this 455,000-square-foot, 11-story office tower/36,405-square-foot retail property since its construction. The building has consistently maintained 95% to 100% occupancy at market-leading rental rates.

Challenges faced

• In slower economic times when lease rates are dropping throughout the metro area, the property management team wants to maintain occupancy and rental rates.
• To keep the building competitive and profitable, the team also looked critically at reducing operating expenses and pursuing LEED-EB certification.

Results

• Ryan utilized its JEDI lease acceleration model to begin the lease renewal process early. They communicate with tenants to understand their business and space needs so they can deliver before tenants begin to shop for new space options.
• The management team renegotiated key service contracts to reduce operating expenses and discovered opportunities to reduce utility consumption. This resulted in a significant reduction in expenses: 17% janitorial, 11% security and 12% utilities.
•  Ryan is managing the LEED-EB process and has implemented a green cleaning program, completed a recommissioning study, implemented several energy-saving initiatives and is currently completing EnergyStar certification.

7500 Flying Cloud Drive

Ryan developed and built this class “A” suburban nine-story, 201,495 square-foot office tower in 1987. Wilson Learning, the anchor tenant, occupied 50% of the building.

Challenges faced

• The building’s occupancy fell to 49% after the anchor tenant downsized and vacated.
• To meet the demands of today’s real estate market, Ryan renovated the building, repositioning it to be more competitive in the marketplace.

Results

• Utilizing its Jedi Leasing ModeL — a proven team delivery process for bringing buildings to full occupancy more rapidly, efficiently and cost effectively — Ryan successfully drove occupancy from 49% to 95% in a little over a year’s time.
• Ryan sold the property to Cornerstone Real Estate Advisors, a real estate investment advisory firm which was so pleased with the transformation of the building and Ryan’s performance, they retained Ryan as property manager.

 

The Quarry

 

The Quarry retail project was a successful public/private partnership formed with the objectives of providing state-of-the-art retail services to city residents and redeveloping an under-utilized, contaminated inner-city site.

Challenges faced 

• Ryan’s property management team was challenged to maintain the property to the guidelines of the Minnesota Community Development Agency (MCDA) and the Minnesota Pollution Control Agency (MPCA).
• The MCDA required public transportation to the center from areas throughout the Eastside Neighborhood as well as well-maintained bicycle and pedestrian access.
• The MPCA put in place very strict landscaping guidelines and regular well monitoring due to the previous soil contamination issue.

Results 

• Ryan formed a Merchant’s Association with tenants and regularly met with neighborhood organizations to ensure the retailers maintained a good neighbor relationship with surrounding residents.
• The Quarry won many awards including the distinguished national Phoenix Award for brownfield redevelopment.

 

 

One North Central

Sumitomo Corporation desired to purchase a significant Phoenix asset to add to their real estate investment portfolio and approached Ryan with an offer to buy the Phelps Dodge Tower. Ryan proposed to sell the building to Sumitomo at an above-market price contingent upon Ryan achieving a defined occupancy.

Challenges faced

• To achieve that purchase price, Ryan and Sumitomo negotiated an agreement to escrow a cash “earn-out” to Ryan if Ryan could achieve a 90% building occupancy within 13 months of the sale date.
• Market activity was slow. The building’s occupancy was 83% within a submarket still recovering from the 9/11 decline (recording a 12% vacancy factor).
• If Ryan failed to meet the occupancy target, the earn-out would be forfeited.

Results

• Ryan created an aggressive marketing campaign and ultimately secured 93% occupancy within the defined timeline.
• The lease was with a federal government entity at slightly higher than market rate for a 10-year firm term.
• Three years later, Sumitomo sold the asset to Mitsubishi Real Estate and recommended retention of Ryan for real estate management services.
  

 

Midtown Exchange

Built in 1928 as a massive retail and distribution center for Sears, this art deco monolith sat vacant from its closing in 1994. The City of Minneapolis acquired the property in 2001 after previous attempts to convert the site fell through. In 2004, Ryan was awarded the development rights to convert the former Sears site into a vital, mixed-use development in the heart of Minneapolis’ Midtown district.

• 418,000 square feet is leased to Allina Hospitals and Clinics, the largest non-profit health care provider in Minnesota.
  
• Midtown Global Market, developed by a consortium of non-profits led by the Neighborhood Development Center, occupies 71,000 square feet.
• 12,000 square feet of additional retail/service space includes a US Bank branch.
  
• The remainder of the building is residential.

Challenges faced 

• Multiple owners meant a complex renovation budget and complicated operating agreements.

Results

• Thirteen different operating budgets were developed and then rolled into one overall budget for each owner
• Each owner/tenant now happily cohabits Midtown Exchange. The anchor tenant Allina is especially pleased with the operation of their space — they consolidated operations into one location for 1,800 employees.

 

St. Luke's Hospital

Ryan was engaged by St. Luke’s Hospital to provide consulting services with the objective of:

• Understanding the scope, obligations, risks and costs of St. Luke’s real estate portfolio.
• Analyzing and estimating property values, operating costs and any operational issues.
• Identifying cost savings, income generation and service improvement opportunities.
• Recommending improvements in cost control, service, risk management, building operations, dispositions, leasing and sales or refinancing.

Challenges faced

• Ryan interviewed St. Luke’s personnel on leases, operations, financials, budgets, insurance/risk management and other strategies regarding their holdings. They did so with sensitivity to ensure no one felt their job in jeopardy.

Results

• Ryan created a centralized file system for building lease administrative files and other property records for ease of access.
• Ryan’s comprehensive report outlined its findings, recommendations and the pros and cons of specific tactics. Since the original evaluation in 2003, Ryan continues to serve as St. Luke’s primary real estate consultant.

 

 

North Central Association Commission Accreditation and School Improvement (NCA)/CASI

Ryan built NCA/CASI’s 10,000-square-foot, class “A” regional headquarters in the Arizona State University Research Park. The building was the first LEED gold level certified building in Arizona.

Challenges faced

• Addressing operational concerns up front was critical to achieving LEED points as the model focuses on sustainability.
  
• Ryan worked closely with NCA management in defining their needs and budgetary constraints, and with ASU Research Park management in meeting their restrictions on construction and operation of the Park’s buildings. 
• Together, the team weighed each design consideration on the merits of its long-term sustainability with emphasis on water savings and energy efficiency.
  
• Design solutions included:  energy compliant roofing material, xeriscape landscaping, waterless urinals, green paints and finishes, and motion-detecting devices. The project was successfully completed meeting both budgetary and timeline requirements

Results 

• Today, NCA operates realizing a 50% water and 26% energy savings over comparable building.
• The relationship developed during the design and construction resulted in Ryan being awarded the long-term management of the project. 
• NCA’s latest client satisfaction survey rated Ryan 4 out of 4, commenting, “Ryan does a great job for us!”