Detailed Analysis Breaks Real Estate Deadlock
Management of a $1 billion electric utility remained deadlocked on how to develop a piece of property. The property itself was small – a 30-acre parcel zoned for light industrial use – but the real estate market had recently dropped and management was at odds about what to do with the property.
Should they hold it until the market came back? Sell it immediately? Convert it to utility use? Develop infrastructure and subdivide it? Or develop the parcel, which generated an entirely new debate about ownership structure?
After repeated attempts to reach closure, management engaged SDG to assess the value and risk of each alternative and identify options with the highest value to the corporation. As a result, the client was able to narrow the alternatives to two, and with an understanding of the risks of each, agree on the best path forward.
