M-Albuquerque-NM-LRG
CLIENT Molina Healthcare, Inc.
LOCATION Albuquerque, NM
SERVICES Corporate Portfolio Management
Lease and Purchase Negotiations
Lease Administration
Work Space Optimization
PROPERTY SIZE 137,000 SF Class “B” Office Building
PORTFOLIO SIZE 4,250,000 + SF of Mixed Property Type
FINANCIAL BREAKDOWN Leased at 33% Cost Savings over 78 Months

ACCOUNT OVERVIEW

Damian McKinney met Dr. C. David Molina, the founder of Molina Healthcare, in 1989 in Long Beach, CA. At the time, Molina Healthcare was occupying approximately 10,000 square feet of medical and office space. Today, McKinney manages this Fortune 500 Company’s real estate portfolio of over 4.25 million square feet and growing. McKinney Advisory Group proactively adds to Molina’s earnings through real estate brokerage as well as asset, project, and property management. McKinney Advisory Group provides comprehensive portfolio management services for Molina Healthcare ranging from site identification, lease and incentive negotiations, asset management, lease administration, CAM audits, financial reviews, strategic planning, and on-going tenant representation.

 

CHALLENGE PRESENTED

Molina Healthcare was experiencing significant growth in their New Mexico health plan as a result of new membership. Albuquerque, a market with limited office buildings, made finding an option with enough contiguous vacancy to accommodate the anticipated growth incredibly challenging, particularly finding a location with the parking required to suit their dense population of employees.

 

SOLUTIONS

McKinney Advisory searched for a building could accommodate Molina’s specific growth requirements and expansion plans in the growing healthcare industry. McKinney performed extensive location searches in the surrounding areas and multiple pre-tours prior to presenting any options to the client. During the search, a building was located that was available for both lease and purchase. Exhaustive financial analyses was performed on the site to compare the various lease options, as well as investigate the potential purchase. As Molina was not interested in becoming a building owner, McKinney found an investor willing to purchase the property with the assumption that Molina would lease approximately 137,000 square feet of the building at a below-market lease to Molina. McKinney also negotiated a parking contract with the City of Albuquerque at a savings of 42% per annum for over 600 parking spaces.