Technical, Analytic and Transaction Services for Enhanced-Use Lease Projects in West Los Angeles, CA
Department of Veterans Affairs (VA)
Due Diligence and Financial Analysis, Transaction Management, Public-private Partnership Studies and Transaction Execution, Management and Process Improvement Solutions
Summary
In 2016, the U.S. Department of Veterans Affairs (VA) engaged the Craddock Group, LLC to provide development and transaction assistance associated with the execution of multiple Enhanced-Use Leases (EULs) on the 388-acre Greater Los Angeles Healthcare System West Los Angeles Campus. Through key team members’ support of VA’s development of the 2016 Draft Master Plan for the West LA campus, we have a unique and comprehensive understanding of the EUL projects proposed for homeless and at-risk Veterans. The intent of the Master Plan is the development of more than 1,200 housing units on this 388-acre campus. Our continued support for VA includes the structuring, oversight, and execution of these various EUL transactions, as well as the development and implementation of various infrastructure projects.
Approach
Due Diligence
Reviewed and analyzed zoning, taxation, and title issues related to each EUL planned on the Campus. With assistance from qualified subcontractors, the Team obtained surveys (metes and bounds), Phase I Environmental Site Assessments, appraisals, and Environmental Assessments for purposes of the National Environmental Protection Act (NEPA) for multiple EUL projects. Additionally, the Team is providing advisory and coordination support related to due diligence for environmental and utility infrastructure projects.
Solicitation and Developer Selection Support
Provided support to VA with the solicitation and selection of developers for Buildings 205, 208, 207 and 209, as well as the solicitation and selection of a Principal Developer to develop the remainder of the planned housing units on the Campus.
Public Meetings
Coordinated building information sessions and tours for Buildings 205, 207, and 208 and an Industry Day for the Principal Developer solicitation. The Team assisted VA with the Public Hearing for Building 207 and the Principal Developer EUL.
Transaction Support
Review and analyze development plans, development budgets and pro formas, site and design plans, construction and infrastructure plans, capital contribution agreements, operations and maintenance plans, and tenant selection plans, among other similar documents for each EUL. The Team advises VA on the structure of each EUL transaction, identifying key risks, and proposing associated mitigation strategies.
Construction Oversight and Monitoring
Together with our subcontractor, ISI Professional Services, we assist VA in overseeing the construction of the B205, B207, and B208 housing projects, along with the dry utilities’ trunkline.
Project Management
Participation in regular weekly progress calls with VA, as well as bi-weekly calls with the developers and other related project team calls. The Team maintains a document and action item checklist for each project to track critical issues and ensure all required documents are finalized efficiently and on-schedule.
• With the Craddock Team’s support, VA executed four EULs and multiple associated EUL amendments on the West LA campus, delivering more than 230 new Veteran housing units
• Assisted VA in soliciting for and selecting a highly qualified Principal Developer team, who will develop at least 900 Veteran housing units on the West LA campus
• Advised VA on the redevelopment strategy and infrastructure planning for the West LA campus, including structuring, drafting, and negotiating the Principal Developer EUL with various developers, lenders, investors, and governmental entities
• Supported VA with communications planning and delivery, including engagement of multiple stakeholders internal and external to VA
• Worked closely with VA and developers on the planning for hundreds of additional supportive housing units for homeless and at-risk Veterans on the West LA campus
Results
Results
• With the Craddock Team’s support, VA executed four EULs and multiple associated EUL amendments on the West LA campus, delivering more than 230 new Veteran housing units
• Assisted VA in soliciting for and selecting a highly qualified Principal Developer team, who will develop at least 900 Veteran housing units on the West LA campus
• Advised VA on the redevelopment strategy and infrastructure planning for the West LA campus, including structuring, drafting, and negotiating the Principal Developer EUL with various developers, lenders, investors, and governmental entities
• Supported VA with communications planning and delivery, including engagement of multiple stakeholders internal and external to VA
• Worked closely with VA and developers on the planning for hundreds of additional supportive housing units for homeless and at-risk Veterans on the West LA campus
