Commercial Real Estate Development Experience

Leadership: Team Champion is made up of talented, well-educated associates who work within their Unique Abilities and strengths to assist each client with their property development.  From assisting with entitlement and municipality questions, to construction coordination and tenant advocacy, our team works together in a Self-Managing format to get the job done right, on time and on budget. (When we refer to clients, we are referring to our tenants, buyers, joint venture partners, developers and consultants.) Note: much of our talent is now drawn from our partners’ teams, paid for by Champion through a Development Fee split.

 Valued Relationships: Over the years, Champion has developed valuable relationships with respected contractors, architects, engineers and other consultants who believe in doing business the way we do business.  We work as a team to create a unique collaborative experience for the client – one in which they do not have to worry about the day to day tasks, but rather, can focus on the big picture items.  We can then work together to assure those items are successfully brought to action.

 Proven Process (Guidance Documents): As a way to assure our valued buyers and tenants, Champion created a Guidance Document for our construction and consulting partners to effectively and efficiently complete a Champion project.  Beginning with initial site selection and entitlements, Champion works diligently to increase quality of design and construction while reducing costs saving the client money and time.

 Tenant Advocacy Experience™: Ricky Lyons developed the Tenant Advocacy Experience specifically for our Buyers and Tenants to have a sense of calm as they open their new location.  The mission is to assist our clients in opening smarter, faster and more profitably, while maintaining and growing their current business and not being bogged down with the opening of their new site.  We take great interest in their business plan and their needs so that we can act on their behalf so they can continue to focus on their current business. We assist with everything from initiating architect meetings, to construction management, to assisting with them gaining business insurance, to helping them get open for business.  We stay with them throughout the process and beyond, assisting where they need help so they can be as successful as possible. All who work with and at Champion, consider being part of Champion as a team sport.  No one position works without all positions working on plan, together.

Remarkable Delivery™: We promise to deliver each and every project in a Remarkable way.  That means something different to each client we work with.  But as long as we act remarkably, then we are doing what’s right.

The Champion Experience™: Champion’s goal is to provide each of our clients, investors, partners, consultants and staff with The Champion Experience.  We want to provide the best experience in the industry.  By promising – and delivering – a Remarkable Delivery™, using the Tenant Advocacy Experience™ and focusing on leadership and relationships, we aim to be the best at what we do while being innovative and strong in the processes we create.

 Operating Model: We measure our successes by three underlining statements at Champion: We are passionate about delivering the best experience in the world; We transform relationships to the benefit of everybody involved; and we find the best metric possible to deliver the best rate of return.

Metric: On any given proforma we prepare, we assume a 18-24 month timeframe for stabilization to potential sale.  We assume equity in each project is equal to 25% of the total cost of the project.  Champion’s metric requires that at the end of 24 months if the project is sold, there would be cash distributed to the partners after the return of equity, which is equal to the equity investment.  For example, if the total cost of a project is $16,000,000, the equity required for our standard metric is $4,000,000.  We would expect a sale of $20,000,000 within the 24 – 30 month timeframe, leaving a distributable cash amount of $4,000,000 after payment of costs (which include the return of $4,000,000 cash equity). If financing is non-recourse, equity will need to be increased.

 Project Partnership Agreement: Champion has flexibility with respect to the structure of project partnership agreements.  We take into account the percentage of ownership of the partnership, rates of return and fees.  When we are dealing with a partnership agreement pertaining to a Shopping Center, historically we have delivered yields at approximately 25% project returns.  

In calculating distributable cash (*), we rely on cap rates for rental and investment properties averaging about 1% higher than currently being accomplished in the marketplace.

*The reason we use the term ‘distributable cash’, as opposed to ‘profit’ is because we see profit as a taxable item, it involves tax calculations, whereas with distributable cash, we are dealing solely with cash.