Goodwill
Location: New York | Date Involved: 2018 – Current
Overview
Goodwill NYNJ (“Goodwill”) has an established track record of empowering individuals with disabilities and other barriers to employment to gain independence through the power of work. Several years ago, new leadership at Goodwill developed a strategic plan to map the organization’s evolution and started to undergo significant change. Part of its envisioned growth includes the expansion of existing business lines, including e-commerce, salvage and recycling services and retail. Goodwill leadership is also focused on prioritizing staff recruitment and engaging more fully with clients, funders, donors, board members, and other members of the non-profit community. Finally, Goodwill aims to bring increased awareness to their larger mission. While many are familiar with Goodwill in retail, there is less awareness of the variety of programs Goodwill offers to clients, with a focus on getting those with disabilities in the workforce.
Goodwill engaged a talented project team to evaluate their real estate portfolio in Astoria, Queens, which included a warehouse, administrative headquarters, and an affordable housing building. This engagement resulted in Goodwill’s decision to sell both properties and use the sales proceeds to fund programmatic, economic, business, and organizational goals. In parallel, we worked with Goodwill to find new locations for its headquarters and warehousing functions. We played an important role by managing the project team to ensure key milestones were met and financial objectives were achieved.
We are proud to have worked with Transwestern to market the properties and ensure the solicitation process attracted qualified bidders. We worked diligently to evaluate bids, conducted buyer interviews to vet proposed development plans for the properties, and assessed bidders’ ability to close on the purchase of the properties. To ensure agreed upon terms were competitive, we negotiated term sheets with several firms simultaneously and supported Goodwill through the negotiation of the Purchase and Sale Agreements. A successful negotiation was vital to Goodwill since important business terms like a satisfactory lease back period for the warehouse and administrative space were essential.
After Purchase and Sale Agreements were executed, we supported Goodwill through the due diligence process, helped to navigate various regulatory processes related to the affordable housing building and oversaw the Attorney General review process for the sale of the warehouse property.
Throughout the entire engagement, we helped Goodwill manage the project team, which included Transwestern (broker), Nixon Peabody (legal counsel), Gensler (architect), and many others. Playing the role of project managers, we prepared agendas and meeting minutes, held regular conference calls, developed and maintained a project plan and schedule, and prepared reports and presentations to facilitate Board of Directors’ decision-making. We also developed and frequently updated a financial model to ensure that financially prudent decisions were made, and that the impact of costs on the balance sheet were properly understood.
Project Information – Astoria Warehouse
- Size: 40,067 sq. ft.
- Sale Price: $14.4M
- Team: KSS Architects, Cushman & Wakefield (broker), Bertone | Piccini (real estate attorney)
Project Information – Goodwill Terrace
- Size: 206 residential units
- Buyer: Jonathan Rose
- Sale Price: $35M
- Team: Transwestern (broker), Nixon Peabody (real estate attorney)
To determine the best location for the new warehouse and retail outlet, we worked with Johnson Stephens Consulting, and completed an analysis that assessed the cost of transportation, accessibility to major thoroughfares and public transportation, proximity to a FedEx location and trash haulers and the availability of a talented and cost-effective workforce. We also factored in the availability of robust technology infrastructure (high-bandwidth fiber-optic cabling and wireless services) since the facility is heavily reliant on technology.
After developing a catchment area, we worked with Cushman Wakefield to complete a thorough site search. After evaluating various properties, we identified a property located at 400 Huyler in South Hackensack, New Jersey, that met all of Goodwill’s criteria. We supported Goodwill through the negotiation of the lease, focusing on important business terms like the term of the lease and rent obligation.
After the lease was executed, we supported Goodwill by managing the architect through the design process, making sure deadlines and the budget were adhered to and that construction documents reflected Goodwill’s facility needs. Once design was completed, we worked with Cushman Wakefield to direct project meetings track and evaluate change orders, develop recommendations and work plans and monitor and update the project budget and schedule.
Project Information – 400 Huyler
- Size: 126,433 sq. ft.
- Budget: $5.1M
- Team: KSS Architects, Cushman & Wakefield (broker), Bertone | Piccini (real estate attorney)
Project Overview: Acquisition of New Administrative Headquarters & Build-Out of 25 Elm Place
Before embarking on a site search to help Goodwill find a new location for its headquarters, Matter worked with Transwestern to define Goodwill’s headquarter workplace requirements. This initial analysis included: in-depth leadership programming interviews, employee commute analysis, employee surveys, a preliminary space program.Once this work was completed, we worked with Transwestern to evaluate office lease and purchase opportunities in lower Manhattan. We acted as project managers during the site search process and prepared agendas and meeting minutes, held regular conference calls, and prepared reports and presentations to facilitate Board of Directors’ decision-making. As potential properties were considered, we updated the financial model to ensure the cost of each opportunity was understood.
During the COVID-19 pandemic, Goodwill learned that administrative employees are able to work from home and remain productive. As a result, the organization decided to implement a hoteling concept in Downtown Brooklyn in office space located at 25 Elm Place that allows employees to reserve workspace on demand.
We supported Goodwill by playing the role of owner’s representative overseeing the design and renovation of the space to mitigate schedule, budget, and quality risks. During design, we managed the architect, expediter, and the rest of the design team to ensure key milestones were met during design and permitting. Subsequently, we directed the bidding process and assisted Goodwill in the negotiation of a CM agreement with Quest Builders Group. Finally, we managed the renovation of the space by working closely with Quest Builders Group to make sure that schedule and budget goals were met.
- Size: 30,000 sq. ft.
- Budget: $1M
- Team: Quest Builders Group, Robert Derector Associates (MEPFA Engineer), Fox Architectural Design, Municipal Building Consultants (expeditor), iWise Consulting (IT & Security)
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