GSA and the Albuquerque community partnered to benefit both groups—improve GSA business performance and accomplish community goals through development of a real estate exchange. In order to effectively partner with the community, the GSA Partnering for Performance Team developed a strategic plan for the Albuquerque district. The team sought to optimize downtown Albuquerque real estate value and performance. GSA wanted to improve portfolio performance and meet policy goals, and the City sought to increase tax revenue by revitalizing the downtown area. At the time, no GSA/City strategic plan existed, nor had there been any strategic collaboration efforts or real estate exchange agreements.
In the Exchange Agreement, GSA agreed to trade a federal historic building (which had losses of $200K per year, needed $3M in modernization, and had vacancy rates of 30-40%), a small surface parking lot, and a small parking garage for a large City parking garage located closer to other federal office buildings. In addition, the real estate exchange provides for GSA to lease City garage parking space and lease back the historic building until tenants are relocated to the other federal space. The exchange meets a projected Federal tenant demand for 450 additional City parking spaces and avoids future losses of $200K per year and building modernization costs of $3M on the historic federal building.
In this win-win situation, GSA was able to divest itself of costly maintenance and modernization, meet customer needs, make funds available for reinvestment in property retained in its portfolio, and in the end, retain the proceeds (obtaining a parking garage of equal value) from the real estate transferred out of federal ownership. The City was able to move forward with its downtown revitalization plan and came out a winner, too.
For additional information, contact Ms. Maria Conley at (817) 978-4230 or via e-mail at maria.conley@gsa.gov.
