Expertise / Capital Planning
Capital Planning lays out a financial strategy for major repairs or improvements to a building. Because Capital Planning involves spending large sums, C3 is particularly challenged to assume the owners mindset, always framing Capital Planning within the context of the owner’s vision for the property. At C3, this task falls into two primary categories: Capital Planning for Educational Institutions and for Owners and Investors in commercial real estate. As detailed in our Case Studies, Each tends to have vastly different Capital Planning needs, owing to different ownership timelines.
Education’s Long-Term View
Educational institutions or municipalities generally view buildings to be owned in perpetuity as part of their long-term educational or civic mission. As such a capital plan must address urgent and long-term issues in order to accommodate these long term goals. The process can be complicated by the fact that endowments, which often pay for property improvements for schools, can be formed into different funds and allocated to certain project types, such as residential, dining, classroom and arts facilities. Check out two recent and highly relevant Capital Planning assignments at two prestigious New England private schools: Roxbury Latin School and Middlesex School in our Case Studies.
Commercial Real Estate’s More Immediate Perspective
With real estate investors, the hold periods tend to be more finite. Some institutional investors envision a holding period of a decade or more, and Capital Planning must often accomplish goals, like improving an office building's profile from a “B” to an“A” property. Other investors are more interested in aggressively timing the market and "flipping" an asset for a substantial profit. In either scenario, C3 keeps an eye firmly on the owner's objectives and the building's Real Estate Life Cycle. We understand how to execute your vision and communicate the options, costs, and exit strategy impacts related to all your decisions.