Sharon Nelson Craig

Challenge

Lerch Early serves as primary outside real estate counsel to Howard University.  For the past several years, the now 150 year old University has been leveraging certain of its Washington, DC real estate assets to improve the campus environment and the experience of its most valuable assets – the students, faculty and staff of the University. 

Strategy

In 2016-2017, Lerch Early attorneys worked with the University’s internal legal and finance teams and its outside real estate advisor, Alvarez and Marsal, to structure a unique arrangement among  Howard Dormitory Holdings 1, LLC, a wholly-owned and title-holding company of Howard University, and Howard University (collectively, the “University Parties”) and Corvias Campus Living, LLC (“Corvias”).  Lerch Early represented the University Parties in drafting and negotiating the concessionaire, project management and residential life agreements, entity formation agreements, construction contracts, financing documents, and other operative  agreements in connection with the transaction, as well as assisting the University Parties in addressing and resolving numerous legal and business issues associated with the transaction. 

Results

The innovative 40-year partnership among the University Parties and Corvias raised $144 million, a portion of which will fund the renovation and modernization of the Howard Towers, will provide for the ongoing management of the Howard Towers and two additional residence halls, and will create, for the long-term, a sizable reserve fund for future capital expenses.    

Challenge

Lerch Early client Lee Development Group had owned property in downtown Silver Spring for more than 50 years that was adjacent to two aging buildings owned by a quasi-governmental housing commission.  The existing uses on all three properties needed renovation or full redevelopment.   

Strategy

We led negotiations for a joint development strategy to redevelop the entire block as a quality, high-end mixed-use project, with significant affordable housing in the project.  “High-end” and “affordable” usually don’t go together in commercial real estate; however, this project shows they can. LDG and the Housing Opportunities Commission of Montgomery County together are developing Elizabeth Square, which will include residential housing, including expanding affordable and workforce housing with a large seniors component, along with retail, recreational, health services, and educational facilities.

The project will advance in stages to accommodate the transition of residents from the existing senior living property into a new affordable building with the integrated public services, allowing demolition and replacement of the existing obsolete senior building with another new modern and mixed affordable building. We created a land development agreement allowing the parties to pursue the regulatory approvals, and secured project and subdivision plans for the overall project and site plan approval for the first stage. We developed a condominium structure and air rights lease for the operation of the first new building.

Result

Elizabeth Square gives HOC a revitalized presence in downtown Silver Spring, just blocks from the Metro, keeping seniors in their existing community in a modern, energy-efficient building supported by market rate amenities. 

Challenge

Starbucks wished to redevelop a site in Burtonsville into a new Starbucks restaurant that would include a drive-thru. Before Starbucks retained Lerch Early, the project had become “stuck” in the review process.

Strategy

We identified key decision makers in County government and worked with County leaders of our zoning interpretation and path to approvals.  This involved multiple meetings with planning staff and officials, as well as testimony before the Hearing Examiner.

Result

Starbucks received all approvals necessary to redevelop a key strategic location with the Starbucks required amenities.