Hemisphere
Development LLC | Consulting
CASE
STUDY: University of Dayton
|
|
Former
NCR Manufacturing Facility - Circa 1950 |
UD's
Acquisition |
HEMISPHERE ADVISES UD ON MAJOR CAMPUS EXPANSION
For
nearly two decades, a 49 acre brownfield site owned by NCR
Corporation,
contiguous to the University of Dayton (“UD”)
stood woefully underutilized. UD, the nation’s seventh
largest Catholic university, was landlocked and hoped
to acquire
this unusually large urban site to address the university’s
expansion needs. Given the appropriately conservative nature
of UD toward the issues associated with such an acquisition,
successfully structuring and negotiating a transaction acceptable
to both UD and NCR was a daunting challenge.
Site History
Historically, the property housed the main manufacturing facilities
for the National Cash Register Company. NCR conducted a variety
of manufacturing activities at the facility including: metalworking,
woodworking, polishing, enameling, printing, and assembly. The
facility also housed a power plant, foundries and plating operations.
A section of the old Miami-Erie Canal ran north-south along the
eastern property boundary. The canal was filled during the 1920s
and a railway was built on top of the area. A powerhouse provided
steam and electricity for the plant. The property also contained
a substantial fill area consisting of ash, cinder, wood, foundry
sand, and other rubble. Most of the old manufacturing buildings
had been demolished into their basements, creating significant
geotechnical constraints. An extensive tunnel system running
between the buildings also remained. Finally, the entire site
was perched over Ohio’s most prolific groundwater acquifer
and adjacent to the Great Miami River.
Hemisphere Structures A Winning Transaction
UD retained Hemisphere to lead the professional team in structuring
a transaction appealing to both UD’s Board of Directors
and NCR. Hemisphere spearheaded all major aspects of the deal,
including negotiations with NCR and its team of advisors, comprehensive
due diligence and manuscripting a significant environmental
insurance policy to address contingent liabilities through
the redevelopment process. Hemisphere also will lead the team
in redeveloping UD’s newest acquisition, integrating
the University’s current needs through its existing master
plan with the enormous potential presented through the property
acquisition.
A New Day In Dayton
The project’s scale undoubtedly will be enormous over time,
creating a permanent new front door to the University. Based
on current projections, total development costs on the site could
exceed $300 million. Initial plans include a significant mixed-use
development consisting of commercial, office and residential
components, a major performing arts center and a number of University
facilities.
