ARCO/Murray was brought once design drawings determined the project would cost 20% more than anticipated after the project was determined to be 20% higher than anticipated. By partnering with a national design-build firm to carry on the project with an upfront final project cost, SRC was able to feel confident in their cost effective construction and have it complete in only 4 months.
Stanton Road Capital (SRC), a national real estate private equity firm based in LA, recently purchased their newest building asset in Richardson, Texas to add to their 5M SF national portfolio. The first step in the repositioning of the 200,000 SF previously single tenant building was a complete renovation of the first floor including a new entry lobby, fitness center, training room, café, lounge, management office and creek-side patio. After completing a full set of design drawings for the Campbell Glen project, SRC realized the desired improvements were going to be 20% over budget.
SRC brought the ARCO/Murray team on as a partner and design-build consultant to engineer value and assist with the redesign of the project. ARCO provided breakout pricing for each area to help dollarize decisions. The team also found strategic opportunities to reduce project costs through the engineering scope. The ARCO team redesigned the mechanical and electrical systems to repurpose more of the existing infrastructure, generating significant cost savings.
ARCO then used its national buying power to find comparable and more competitive interior finishes, including a new lighting package and exterior decking material, that wouldn’t sacrifice the original design intent. The back patio design was optimized for a more cost-effective open-air gathering place.
These value-added solutions enabled SRC to confidently allocate money towards the aspects of the project with the greatest return on investment, as well as maximize the budget to focus on brand and design aesthetics for the space. Once all design decisions were made, ARCO committed to the final pricing. Having an upfront budget commitment before construction documents were completed, gave SRC the confidence to kick off the job.
“One of the most rewarding aspects of our job is finding unique ways to deliver value,” said Trevor Heaney, Director of Business Development for ARCO/Murray. “We’re very proud of this project and look forward to working with Cushman and the Stanton Road Capital team on their future endeavors.”
Throughout the course of construction, ARCO was the center point of all decision-making, treating every dollar as if it were their own and working with the architect and client to ensure all decisions made would not affect the critical path. Through design-build, ARCO was able to complete the project in 4 months and stay ahead of schedule – even with the challenges presented by COVID-19.