Challenge
A Northeast Ohio municipality hired Allegro to perform an in-depth analysis of three buildings they own: a 70,000 square foot medical office building, a 25,000 square foot community health center, and a public parking garage. These buildings are located in close proximity to a hospital and the city needed to understand the influence of the hospital’s operations on the value of the properties. Additional analysis was requested to determine the costs associated with a repositioning or disposition of the assets. The buildings are owned by the municipality, but they do not currently manage or operate either. However, the city would assume financial and management responsibilities if the hospital were to close. An analysis of these responsibilities was required to inform decisions among municipal leaders and stakeholders.
Solution
Allegro toured and assessed the properties in question and provided the city a thorough report detailing the estimated future value of the properties under several scenarios. Detailed construction, maintenance, and operational costs were projected over 10+ years to help the city understand what their financial and management obligations would be relative to the hospital’s future operational decisions. This included providing potential alternative uses for the properties and studying the supply and demand factors for each use.
Ultimately, Allegro equipped the city with data and information that allowed them to plan for the future and assisted their decision making process relative to the uncertain future of the hospital.
Allegro formed a partnership with the municipality that is fluid, ongoing, and has led to additional projects.
