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CLIENT Molina Healthcare of Puerto Rico
LOCATION San Juan, Puerto Rico
SERVICES Brokerage
Lease Negotiations
Request for Proposals
Lease Administration
PROPERTY SIZE 83,355 SF Class “A” Office Space
PORTFOLIO SIZE 4,250,000+ SF Mixed Property Type

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’s wholly owned subsidiary, Molina Healthcare of Puerto Rico, Inc. had executed a contract with the Puerto Rico Health Insurance Administration to operate the Commonwealth’s Medicaid-funded Government Health Plan program in the East and Southwest regions. Molina Healthcare of Puerto Rico’s total expected enrollment in the two regions was approximately 350,000 members. The operational start date for the program was scheduled for just five months following the contract award. The company and staff needed a new central location quickly. McKinney needed to research all possible options with the appropriate size, location, and ease of access for staff and plan members.

 

SOLUTIONS

McKinney Advisory Group went to San Juan, Puerto Rico to pre-tour and study the area to assess the best area for the location of the main Puerto Rico office. McKinney then took the client to suitable options within San Juan, ultimately narrowing the search to two competitive options. McKinney’s long-term relationship with Molina and knowledge of its real estate criteria helped McKinney negotiate effectively on behalf of the client’s needs. McKinney was able to secure a build-out of the space and successfully negotiated a below market rental rate, a turn-key build-out and right to renew with same terms and conditions in a market with very little options large enough to accommodate a user of Molina’s size. Further, Molina needed to occupy the space within 120 days of the tour date, and the space was delivered fully ready for occupancy at the deadline.