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Excess Property Services

NSI can assist corporations in identifying and disposing of excess properties. Whether a single major property worth tens of millions of dollars or hundreds of widely scattered "cats and dogs" each worth very little, but collectively worth significant amounts.

The real estate professionals of NSI are particularly adept in helping electric utilities identify and dispose of excess properties.  We define excess properties as those that are non-income producing or not a core asset.  Carrying costs for excess properties can cost a utility anywhere from 10% to 13% of the fair market value of the property each year.  Excess properties are a cash drain on the utility and have a negative effect to the balance sheet.

Our model for success has been tested and proven with a number of electric utility companies. A quick summary of our approach follows:

  1. Establish an accurate and definitive list of all properties owned by the client.

  2. Establish methodology and criteria for determining when a real property is not necessary to meet the core needs of the client.

  3. Apply methodology and criteria to determine which properties are not required for the core business and therefore excess.

  4. Create spreadsheet listing all client properties and their classification as required or excess.

  5. Review and confirm property classifications with client.

  6. Secure the internal approvals for final release (for example, environmental, mortgage trust indenture, etc.)
  7. Determine what needs to be done to make the property sellable.

  8. Establish a fair market value for all properties classified as excess.

  9. Generate a marketing and disposal plan for the excess properties.

  10. Execute plan to sell all excess properties. (Typically, within a two-year window from the date property is approved and fully released by client as excess.)

To achieve success, utility real estate department must obtain a final release on all properties agreed upon as excess. We have found that internal politics can derail the classification of a property as excess if one of the operating units refuses to give a final release due to the “someday we may need this property” syndrome.

For more information, please contact Mike Schira


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