Trammell Crow Company was selected by the University of Southern California, from a pool of 17 development teams, to ground lease a 5.3-acre property adjacent to the University’s Health Science Campus in downtown Los Angeles, create a financing structure to execute the project, and then develop the administrative office building, which USC would lease back on a concurrent 20-year lease term.
Solutions & Outcomes
TCC's strategy included:
- Implement entitlement and project approval process with City of Los Angeles in parallel with design to fast-track execution
- Create conduit structure to finance the project through a tax-exempt bond issuance at less than 4% interest
- Layer negotiated incentives for entire team, tiered toward cost management, budget management, and overall successful delivery
- Bifurcate core & shell design and budget from TI design and budget to maintain fast-track project schedule for USC
The project was a resounding success, opening in August 2011, 4.5 months ahead of USC’s required schedule and $2M under budget.