return to Steven M. Schwartz, Inc.'s home page
Federation of Protestant Welfare Agencies, Inc.
Church Missions House
CASE STUDY
The Federation of Protestant Welfare Agencies Project provides an excellent example of how clients might utilize the services of Steven M. Schwartz, Inc.
The Federation of Protestant Welfare Agencies, Inc. is a 60 year old New York institution dedicated to improving the quality of social services provided to less privileged city residents. In 1963, the Federation bought the old "Church Missions House" from the Episcopal Church. The property, located at Park Avenue South and 22nd Street, is a magnificent building and its both a New York City Landmark and on the National Register of Historic Places. When built in 1892, it was the first example of steel frame "skyscraper" construction in New York City. The Federation invested $450,000 in upgrading the building when it bought it, but had invested little in the property over the next 30 years.
In the 1980's, the Federation first consolidated it's staff, and then began experiencing serious problems with the building's structures and systems. The Board and staff of the Federation found that the building was half empty, office layouts no longer matched the programs, and the problems and other code violations would require large capital investments to correct.
Internally, the Federation had conflicting goals when it tried to approach these problems, and turned its attention from solving one problem to another on an ad hoc basis. Federation staff, with little time and less experience in real estate, were unable to mobilize the resources of the organization to solve the problems.
Steven M. Schwartz, Inc. was hired by the Federation in 1990 to produce a comprehensive, long range plan to solve the problems. SMS selected an architectural firm to produce a comprehensive survey of existing conditions, schematic plans, outline specifications a budget and a timeline. SMS worked with a capital campaign consultant to determine the feasibility of raising capital grants for the project. SMS reviewed the historic financial performance of the Federation to determine the organization's parameters and ability to finance the project. SMS also conducted or arranged many other studies including a market survey, a survey of conference center operation, an asbestos survey and an analysis of the costs and benefits of selling the building and moving to less expensive leased space.
It was determined that the Federation could occupy 3 floors in the six floor building, provide a first class conference facility, and rent two floors out to other nonprofits. With capital grants of $2 million, low cost tax exempt bond financing, rental income from tenants and conference center events, savings from shared services and facilities, and savings from higher efficiency mechanical and electrical systems, it was determined that the Federation could undertake this $6 million project with little or no increase in annual occupancy costs.
In December of 1991 the Federation secured financing at 6.95% fixed for 20 years. Construction contracts were signed at the estimated budget. The building was completely renovated, on schedule, during 1992 and the Federation has reoccupied it's space.