University of California Office of the President    Oakland, CA

Project Description:

The University of California Office of the President (UCOP) complex is considered a key element in the ongoing revitalization of downtown Oakland and its Broadway Corridor. The project was developed in partnership with Lankford & Associates under a Development / Design-Build contracting approach. The University of California issued an RFP for office space to accommodate 1,100 employees in the Bay Area.

The Phelps Development / Lankford & Associates team was responsible for identifying a project site and developing the project to the University's program requirements. Design/build/finance procurement methodology used by UCOP for this project resulted in a below-market priced new facility and significantly reduced schedule to 17 months for design and construction completion.

Development required developer to manage close and full cooperation between two major government entities, UCOP and City of Oakland. Neither UCOP nor City of Oakland had any exposure to schedule delays or cost overruns which were covered by completion guarantees, provided by the developer. The 235,000 SF Class A facility includes office space for the University of California and retail / restaurant space on the first floor. The project was awarded the Design-Build Award in 1999.

Project Team:

Developers: Phelps Development / Lankford & Associates
General Contractor:  Hensel Phelps Construction Co.

Project Cost:

Total: $47,340,000

Financing Structure:

Phelps Development / Lankford & Associates arranged for $47,340,000 in tax-exempt bond financing with 100% letter or credit security through relationship with the Association of Bay Area Governments (ABAG). Private sector joint venture provision as primary security for the variable rate tax-exempt construction bonds significantly reduced the projects overall costs in comparison to traditional financing methods.