Board of Trustees Meeting The University of North Carolina at - PowerPoint PPT Presentation

BAC-2.1 Board of Trustees Meeting The University of North Carolina at Greensboro Transitioning From McIver to New Nursing & STEM Building September 21, 2016

McIver Building • Approximately 130,000 gsf • Currently 18 departments occupy in varying degree • Space occupied by those departments may not provide best fit September 21, 2016 BAC 2.1

McIver Today is Nursing Tomorrow September 21, 2016 BAC 2.1

Implementation of 3 Guiding Principles • Academic instruction and academic instructional support service functions with heavy student interaction and/or student use will be concentrated in the center of campus. • Administrative functions will be located further out from the center of campus and in some cases beyond current campus boundaries. • Academic administration and other administrative services campus edge or off campus. September 21, 2016 BAC 2.1

Potential Locations for Relocation McIver UNCG Auditorium September 21, 2016 BAC 2.1

Strategy for Theater Department Approximately 6,353 square feet • Cost of Acquisition: $1.2M • Cost of Renovation: $3.2M • Gross Square Feet: 17,882 • Assignable Square Feet: 11,576 • Renovation $/GSF: $179 • Much of the renovation is used to build specialty space September 21, 2016 BAC 2.1

Strategy for Impacted Administrative Units • Cost of Renovation: $4.9M • Gross Square Feet: 36,220 • Assignable Square Feet: 23,543 • Renovation $/GSF: $135 September 21, 2016 BAC 2.1

Collaboration and Hard Work Leads to Rightsizing • McIver departments not returning to the new nursing building used 63,237 assignable sf in McIver. • While all moves associated with these properties will only require 36,596 assignable sf. • Examples: repurpose of space from higher density in McNutt, Campus Supply storage and re-capture of offices at 2300 Oakland Avenue. September 21, 2016 BAC 2.1

Our Strategy vs Traditional Lease • Based on market rates for similar lease space and general vicinity, likelihood of finding lessor to offer a lower annual cost for space and upfit is less likely. September 21, 2016 BAC 2.1

Our Strategy vs Traditional Lease • This model allows us to lock in annual rent amounts for 30 years while traditional lease would be limited to 10 years exposing us to inflating rent expense. • In the end, the University is “renting to own” and will own an asset in very desirable locations. September 21, 2016 BAC 2.1