molina_columbus_oh
CLIENT Molina Healthcare, Inc.
LOCATION  Columbus, OH
SERVICES Corporate Portfolio Management
Lease and Purchase Negotiations
Lease Administration
Work Space Optimization
Property Management
PROPERTY SIZE 160,181 SF Class “A” Office
FINANCIAL BREAKDOWN Total Savings of $10,037,303
PORTFOLIO SIZE 4,250,000+ SF Mixed Property Type

ACCOUNT OVERVIEW

Damian McKinney met the Molina Family in 1989 in Long Beach, CA. At the time, Molina Healthcare was occupying about 10,000 square feet of corporate space. Today, Damian, Jamie Keller, and Charlie Copelan now manage this Fortune 500 Company’s real estate portfolio of over 1.5 million square feet and growing. McKinney Advisory Group proactively adds to Molina’s earnings through brokerage negotiation as well as asset, project, and property management. McKinney acts as a trusted advisor to Molina, looking for ways to create value in every dollar spent. McKinney also accommodates the real estate needs of Molina Healthcare ranging from site location, lease and incentive negotiations, asset management, lease administration, CAM audits, legal administration, financial reviews, and continued tenant representation. By providing a comprehensive portfolio management service, McKinney helps Molina’s real estate, become assets adding to their bottom line.

 

CHALLENGE PRESENTED

Molina Healthcare started their Ohio health plan in 2005, with a suite consisting of approximately 8,000 square feet. Over the past 7 years, their occupancy foot print has increased to over 75,000 square feet, with additional future growth expected as a result of the Affordable Care Act. The building in which they were located would not accommodate the growth anticipated through 2014. McKinney went to work finding alternatives with large blocks of office space available or becoming available in a timeline that would accommodate Molina’s needs. Molina preferred a lease and to stay within a few miles of their current location to accommodate their staff.

 

SOLUTIONS

McKinney Advisory searched for a building with space optimization that 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. McKinney brought to the attention of Molina that they could purchase the same building they were contemplating leasing, a Class “A” office building generating a profit greater than 11 million dollars for Molina ultimately through a sale lease-back.