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Union Theological Seminary
Outcome: Substantial
profit from sale of non-essential building in real estate portfolio.
When Union Theological Seminary needed cash flow,
the organization wisely chose to assess the value of real estate
holdings. This venerable institution is located among giants: Columbia
University, Riverside Church and the Jewish Theological Seminary.
The delicacy of finding profit while staying on the best of terms
with neighbors led Union to Freeman/Frazier. We do assessments a
little differently. We ask a few more questions. You want to find
value but what has the most value to you? To the market? Which market?
How important are factors like reputation? Answering these questions
with our client, Union concluded that their first course –
selling the air rights above the seminary, leading to construction
of a 50-story tower – was not acceptable. The money would be
real. But the injury to Union's traditions, and neighborhood relationships,
would be too damaging.
Given this, we saw the real challenge: to find
value elsewhere in Union's portfolio. After careful study, we recommended
a course of consolidation. We saw how two existing properties could
be combined in terms of usage. We recommended renovating the first
property for enhanced and expanded dormitory use. Simultaneously,
we sought buyers for the second property – going directly to
the most likely users – nearby educational institutions –
and talking straight to prospects that we knew would be interested.
The result? Instead of selling wholesale to developers, Union sold
at retail to area institutions and kept the difference for their
endowment.
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