WINTHROP PARK DEVELOPMENT Case Solution
The Construction Area “The Winthrop Park Development” in Cambridge, is consisted of a city block made up of five plots of land with frontage on Mt. Auburn, Winthrop and JFK Streets. The first parcel was purchased in the early 1980s, & the five-story crescent-shaped brick office building at 104 Mt. Vernon was completed in 1984. The city of Auburn was founded. Peter’s father, Petrol A. Palanquin, and his partners had already put together three adjacent parcels over the years, all under the name Eliot Square Associates. Peter arranged & bought the fifth & final parcel in 1994, resulting in a single 22,246-square-foot estate.
The plan for Intercontinental was to merge the five parcels into a signature square with frontage on many main access roads, & to build a scheme that would greatly improve the property’s use & density.
The 3,500square-foot plot on the Mt. Auburn Street side of the property where the Holy Cross Armenian Catholic Church was located, was the only parcel that Intercontinental did not own as of February 1994. The property acted as a valuable retail spot as well as a key corner piece. It completed the assemblage of the entire city block, paving the way for new construction. The first step for Intercontinental was to contact the owners.Peter secured the acquisition of the property for $1.8 million in December 1994, including $800,000 in cash to the church and a deferred $1 million pledge in the form of a promissory note to be drawn down in the future for the church’s construction of a much-needed new building offsite.
For his most recent building scheme, Winthrop Park in Harvard Square, Peter Palandjian hoped to secure $18.2 million construction loan and $13.8 million in permanent funding. The redevelopment challenge was to combine the existing buildings with the new construction in order to create a coherent & functional new mixed-use building.Palandjian has to deliver a presentation to the Cambridge Saving bank’s senior officers. In order to prepare himself up for the presentation, he finalized a comprehensive package, which included the description of the development and the design scheme, financials and the market information, which would fit as per the ambiance of the Harvard Square.
He wondered what kind of debt they’d be able to get depending on the property’s present cash flow, &how much money they’d have to bring up themselves. How much more of the family’s assets should be put at risk? Moreover would the project be a financial success for a family owned concern, was another point wondered by Palandjian.
The three major players in the development of signature square are:
- Peter Palandjian
A Belmont native, He spent several years on the ATP professional tennis circuit, worked as a consultant for Bain & Company, and worked as the assistant to the CEO at Staples, Inc. for 18 months. He is currently working as a director at Intercontinental, a Boston-based land production & investment agency.He is the beneficial owner of around 50 properties in all. He received a BA degree from Harvard University and an MBA from Harvard Business School, after graduating from Phillips Academy And-over………………………….
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