SPECIFIC EXPLANATION: On April 8, 2015, Motion No. 2015-0235, City Council declared surplus, Parcels SY14-101 and SY15-072, located at Nicholson Street and West 19th and 20th Streets, and authorized the appointment of two independent appraisers to determine the fair market value.
The parcels are former water facilities located in the Heights area, which have frontage along the Bike trail on Nicholson Street. The property at Nicholson Street and West 19th Street has great historical significance as it represents three different eras in the history of the City’s management of its water facilities from the late nineteenth century to the middle of the twentieth century.
In September 2015, the General Services Department (GSD) solicited a Request for Proposal (RFP) from eleven real estate brokerage firms to actively market the properties to determine their highest and best use while preserving these historically relevant structures in a manner that is supportive of the context of the neighborhood The eleven firms were: Colliers International; New Quest Properties; Lewis Property Company; Transwestern Commercial; CBRE; Boyd Commercial; Joint Venture of Waterman Steele Group/Jones Lang LaSalle; Greenberg & Company; Streetwise Retail; Edge Realty Partners; and Cushman & Wakefield of Texas, Inc.
The RFP contained selection criteria that ranked the firms on the following criteria:
· Years of marketing experience in land sales in the Heights area.
· Past performance with City of Houston properties or other government municipalities.
· Demonstrated ability to affect a Marketing Plan, if necessary.
· Ability to include target prospects and to achieve highest and best use of the property.
· Dealing with any unusual issues which relates to the property.
· Alternative funding sources for preservation for historic structures.
· Minority participation and associated fees.
GSD formed a selection committee comprised of representatives from PWE, Aviation and Planning & Development Departments to evaluate and rank the respondents. The selection committee short-listed and interviewed two firms: Joint Venture of Waterman Steel Group/Jones Lang LaSalle and Cushman & Wakefield. Cushman & Wakefield received the most points based on the selection criteria, which included their experience as a team, past experience on City of Houston land transactions, past experience on historic property transactions, and their support of the historic preservation desires of the City on the subject parcels.
SCOPE OF CONTRACT AND FEE: The proposed Agreement will commence on the date of countersignature by the City Controller, and terminate at the earlier of (a) 11:59 p.m. on the 540th day after the commencement date, or (b) upon the closing and funding of the City’s sale of the property.
Under the terms of the Agreement, Cushman & Wakefield will perform the following tasks:
- Gather relevant information and develop high-quality marketing materials;
- List or advertise the properties in appropriate publications, websites, etc;
- Install agreed-upon signage on the properties;
- Identify and target qualified prospects;
- Respond to information requests concerning the properties;
- Assist with the City’s bid sale process; and
- Provide periodic progress reports to the City.
The City will pay Cushman & Wakefield a one-time fee of 2.75% of the sales price of the property, or 4% to be split 50/50 if the purchaser is represented by a broker other than Cushman & Wakefield.
The sale of the parcels will be conducted in accordance with all applicable state and city laws and will require City Council approval.
M/WBE PARTICIPATION: Cushman & Wakefield will pay 25% of its commission to Ryland Enterprise Inc. d/b/a Arvo Realty Advisors, a Minority Business Enterprise, for assisting with the marketing and sale of the parcels.
Therefore, GSD recommends approval of a Real Estate Listing Agreement with Cushman & Wakefield of Texas, Inc. to assist with the marketing and sale of Parcels SY14-101 and SY15-072, located at Nicholson Street and West 19th and 20th Streets.