UCSF wanted to consolidate several neuroscience research programs into a single building to promote collaboration, interdisciplinary research, and easily move trials from labs to a clinical setting. The school's vision was leading-edge, but the timing was off: external market forces, including the rising construction pricing, made the planned DBB approach unfeasible. Every bid came in above budget.
A public-private partnership (P3) allowed UCSF to carry out its academic mission despite unfavorable market conditions. Through a P3, Edgemoor guaranteed the project cost and schedule up-front, and provided a certainty of operating costs and capital replacements.
UCSF wanted to further the project’s design in parallel with contract negotiations, but had no budget authority to expend funds. Without a source of funds, the project would have been delivered a year late.
Edgemoor arranged, at risk, a line of credit to cover the design costs. The credit facility payed third-party design and engineering costs, and the outstanding balance was paid off at financial close for the permanent financing.
UCSF wanted to leverage the private sector’s efficiency and expertise in managing life sciences buildings, and ensure that funding for capital repair and replacement was locked in.
As part of the long-term contractual arrangement, Edgemoor guaranteed both the operating costs and the capital refurbishment costs. This approach not only provided UCSF with cost certainty, but also created a structure that will guaranty that the building will be handed back to UCSF in excellent condition.
"Throughout the partnership, the Edgemoor team displayed extreme flexibility, as well as the willingness to incorporate modifications such as the addition of new researchers, or newly conceived research projects and their associated facility requirements. It has all been superbly orchestrated and executed by Edgemoor."
Edgemoor is a leading vertically-integrated developer and asset manager of buildings and infrastructure and offers tailored comprehensive development solutions to a broad range of clients.