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Regency Plaza Brandon Murphree & Daniel Smith
Case Background – the project • Regency Plaza is a mixed-use hotel and condominium project located in the Boston Common area in downtown Boston • 22 story steel and concrete building with a brick and granite façade • First two floors are common areas • Next eight floors are hotel rooms • Last twelve floors are condominiums • 300 hotel rooms and 96 condominiums • Two levels of underground parking below the building (300 total parking spaces) • Close to the city and park
Oldest city park in America dating back to 1634 May be the world’s first public urban park Declared a U.S. National Historic Landmark in 1987 Contains the Central Burying Ground where early artists, composers, and poets are buried 50 acres of land open for formal and informal meetings, concerts, softball games, and ice skating. Site of war protests, Martin Luther King Jr and Pope John Paul Speeches Boston Common
Case Background - amenities • Located near the oldest park in America • Historical landmark tourist area • Walkable distance to attractions • Easy access to transportation • Underground parking available • Valet parking • Four-star restaurant onsite • Exclusive health club • Concierge service available • Access to the common area in the hotel • Room service from the hotel dining room • Customized condominiums with excellent views of the city and park
Case Background – the problem • The project is already behind schedule and over budget • The hotel development firm remains committed to allowing buyers to customize their condominiums • Due to the extensive changes requested by buyers, the construction schedule has been delayed • The recently hired project manager is struggling to get the project back on track • The general contractor is angry about having to deal with the changes and construction delays • Local socialites have high expectations and are being very particular about the customization of their condominiums. • The economy is slowing down and the sales of the condos is affected • Construction schedules need to be meet in order to stay on budget. • Displeasing buyers needs to be avoided so that potential word of mouth advertising is not affected.
Facts & Assumptions • The hotel development firm needs to sell 96 luxury condominiums • The project manager needs to keep the project on schedule and on budget • A high level of customer service is expected from the senior hotel management • Customization changes requested by customers are slowing down construction • Changes are limited by the building design • The project manager needs to improve the customization process and run the project more efficiently
Normal Design Change Process No Yes Drawings could be reviewed three or four times before approval. Each cycle could take up to a month.
Issues at Hand • Design • Construction • Timing • Marketing • Personnel
Harvard Case Study Proposed Solutions 1. Tell the Millers it is to late to customize the units 2. Try and push through all of the Millers changes 3. Hire another GC to finish-out units before closing 4. Terminate work and turn over unit as shell space 5. Move the Millers to a higher floor
Market Analysis Source: JohnKeithRealEstate.com
Decision – compromise • Provide a $50 PSF allowance to all tenants • Modifications over this amount will not be covered • Design Modifications: • Open floor plans- remove a few non load bearing walls • Allow for layout customization • MEP and major building/structural systems in place • Day-lighting-Interior light shelf options • What else?