Investors Realty has had a relationship assisting Methodist Health System for over 17 years. More recently, Steve Farrell, CCIM, SIOR, Tim Kerrigan, CCIM, SIOR, and JP Raynor, JD, have assisted with various assignments, working with Methodist to lease and purchase properties for clinic locations as well as administrative offices.
Project: Over the past few years, Methodist realized that its administrative offices at 8511 and 8601 West Dodge Road were outdated and would be in need of both capital improvements and cosmetic renovations. In addition, there was no room for anticipated growth. In 2016, Steve, Tim and JP were engaged to assist Methodist with an analysis to study alternatives and identify solutions relative to its administrative offices.
Holland Basham Architects completed programming to determine Methodist’s needs going forward. IRI completed financial and comparative analysis comparing the purchase of existing office buildings available at the time, including the costs of renovations necessary to satisfy Methodist’s office requirements versus other lease opportunities in the market and constructing new office facilities. The financial analysis considered total capital costs and operating costs over a 20-year time horizon and provided a present value analysis to aid comparison. In addition to financial analysis, IRI factored in other attributes such as location, suitability, room for expansion and other long-term needs.
From this analysis Methodist determined that it made the most sense to construct new office facilities. After considering several West Omaha locations, an 11.3 acre site at 168th & Pacific seemed to check all the boxes: location, size and cost.
IRI assisted Methodist in acquiring that site and closed in March 2017. The 150,000 sq. ft. building is now under construction and scheduled for completion in the fall of 2018. As of today, we understand that construction is on time and on budget.
We are now in the process of assisting Methodist with the sale of its 12-acre site at 8511 and 8601 West Dodge Road where current administrative offices are located to Children’s Hospital and NP Dodge Company. Children’s will develop seven acres of the property while NP Dodge will purchase and develop the western portion of the property, approximately five acres. We are very grateful to have the opportunity to work on this project with the Methodist team and look forward to an even longer relationship assisting them with future real estate decisions.