* An affiliate of Talbco, was either the owner and/or partner in the project
Construction / Project Management – Failed Project EvaluationAn equity fund with a $20 million investment is forced to take over a failing condominium development from its development partner. The project consisting of 300 units in 15 buildings is over budget and behind schedule.
Talbco is hired to evaluate the property and complete the project. Talbco uncovered unresolved City code issues, soils problems, construction overruns and absent cost controls. After consultation, the equity fund manager agrees that the outcome will not be good. The question is how bad it will be and the level of the fund’s ethical and fiduciary responsibility to the underlying lender holding a $50 million mortgage.
Within 12 months of initiating a construction program the code violations were solved, retaining walls built to remediate for poor soil conditions, cost controls implemented and 80% of the remaining units were completed with the others proceeding on schedule. At that time the equity fund took the position that it would not stand further loss and the lender agreed to step in to manage the sales process to completion.
The equity fund manager wrote of the Talbco principal in charge …
“Jason S. Talbot successfully managed a large residential project with significant challenges. He demonstrated excellent organizational ability and exceptional people skills. The combination of these skills and his understanding of technical construction issues were instrumental in resolving problems. Jason’s advice and guidance during the course of this project proved to be invaluable.” Peter Zarcades, MNG
General Contracting – Public/Private Design Build Talbco was asked to lead a team to design and construct a facility to be leased by the Los Angeles Metropolitan Transit District (“Metro”). The property is to be used as a bus driver training facility with a 15,800 square foot office and industrial building to be use by the Metro security department.
The two acre site had been a manufactured gas plant in the early part of the 20th century and an oil transfer depot through 2008. Talbco’s responsibilities included demolition of a 3 story building, destruction of deep 8’ thick concrete processing the waste concrete for re sue as base, removal of 27 tons of piping containing and remediating the residual natural gas, and importing fill to create16,500 cubic yards needed to bring the entire site to street level. Talbco graded and paved the site and completely rebuilt a brick building on the site to create an appropriate office and storage space for the client’s needs. The work was safely completed a major street in downtown Los Angeles delivered on time and under budget.
The Director of Capital Projects for Metro wrote:
“Talbco did a fantastic job on our Operations Central Instruction project at 410 Center Street in Los Angeles, California. The turnkey design/build project was executed flawlessly, on-time and on-budget, with very little cost growth other than a few changes for differing site conditions. The construction quality and materials selections were superb, and we are very happy with the finished product. Jason Talbot is excellent to work with, always available, diligent, honest, and professional. I look forward to working with them again.” Timothy Lindholm, Director of Capital Improvements, Los Angeles County Metropolitan Transit Authority.
Citing Talbco’s excellent delivery of the housing project the agency asked Talbco principals to help the agency turn an idea into a reality. An 18,000 square foot 30 year old one story building owned by the Agency as its operating headquarters requires renovation inside and out. Owned by the agency for only 5 years the building in its current configuration cannot provide the agency with needed spaces for expansion and the building is shabby making a questionable impression on clients and donors.
Some funding exists from a pool of different donors with different goals and ideas about the realization of the project. Merging the various points of view and marrying real operating requirements to a realizable goal described the problem faced by the Talbco team. In addition, while the agency is well known and well regarded throughout the community, but the importance of the renovation of the headquarters for expansion had to be sold to all stakeholders and to public and private donors and Talbco was instrumental in that process as well.
For over a year prior to breaking ground, the team at Talbco led the agency through all budgeting exercises, designer selection, pre-construction planning and coordination through permitting while helping oversee the final fund raising process. These responsibilities included presentations to funders as well as various community groups and city council meetings. When completed the building achieved LEED certified status and is being used as an example by the City of San Diego of best practices in pursuing and using Community Development Block Grant funds.