After an extensive request-for-proposal process, a real estate consulting firm was selected for the project. It provided a thorough lease-versus-own analysis that concluded ownership of the headquarters is financially more favorable than leasing over a 20-year time horizon. It also conducted an exhaustive analysis of buildings for sale in the area and found no building deemed to be suitable for purchase as they were in the same outdated condition as our current location.
Explore This IssueACEP Now: Vol 33 – No 08 – August 2014
Several tracts of land for potential build-to-suit projects were identified, and in April 2014, the ACEP Board approved pursuing this option.
The preferred 5.8-acre tract of land is close to DFW International Airport and two miles from the current headquarters. For the convenience of our Board, committees, and members who visit, it is adjacent to a full-service hotel. It can hold a 55,000–60,000 square-foot office building with adequate parking.
The Board approved a plan to meet the total project cost of $14.5 million, with $7 million down and financing of $7.5 million. ACEP has healthy financial reserves, with a substantial portion in very low-yielding CDs and fixed-income investments. Additionally, when the current building is sold, ACEP can expect to net about $3.5 million.
Provided that the ongoing land-acquisition negotiations continue favorably, it will likely be spring 2015 before we can break ground, and it will be 18 months or more before we move in.
We believe value to our members and future members will be the result of this investment, and we anticipate more effective and efficient service for our Board, committees, and chapters. A newer, modern headquarters presents further opportunities for ACEP to reflect, develop, and disseminate our values and goals.
Dr. Rosenau is President of ACEP and practices emergency medicine at Lehigh Valley Health Network in Allentown and Bethlehem, Pennsylvania.
Mr. Wilkerson is Executive Director of ACEP.