Asset Management Advisory Services

Description:

A firm with several offices throughout the Midwest decided to make Des Moines their Corporate Headquarters. Their existing building in Des Moines was dated and in need of repairs. In addition, they owned some adjacent land and were considering expansion. They contracted with Terrus to perform a financial analysis showing them whether to stay and make the needed repairs to their existing building, build a new building elsewhere, or lease.

Terrus' Role:

Terrus provided the three different scenarios above and included a potential sale/lease back as a fourth option. In addition, Terrus provided an in depth walk through of their current facilities and estimated the capital repairs to be approximately $800,000 versus the $2,000,000 quoted by a mechanical and general contractor. Ultimately, they were able to see the value of all 4 scenarios over a 10 year-period, and decided to stay in their current location and upgrade.

Advantages:

Because Terrus acts as an advisor, we have no incentive to sell mechanical equipment or General Contracting Services. We do however provide Construction management Services for the Owner that are designed to minimize the Owner's cost. In addition, our expertise in financial analysis allows us to work with Clients well in advance of making decisions and provides scenarios that will help make the right choice.

Savings:

Terrus helped this Client save approximately $1,200,000 in immediate repairs/replacements. Also, the decision to stay in their current location versus building or leasing saved them $500,000 to $1,400,000 respectively.