PORT OF OAKLAND, CALIFORNIA
Review of Commercial Real Estate Projections for Bond Feasibility

As a sub-consultant to Ricondo & Associates, the firm reviewed the financial projections and capital program of the Port of Oakland ’s Commercial Real Estate Division for inclusion in a bond feasibility study. The Commercial Real Estate Division is responsible for real estate not used directly in airport and maritime operations. These operations include an airport business park, the Jack London Square waterfront urban entertainment complex, marinas, hotels, and office properties. Many of the facilities were developed on ground leases.

The scope of our assignment included testing and validating the operating projections of both revenues and expenses, and reviewing the proposed capital projects as to their readiness and reasonableness for inclusion in a bond issue. SKMG provided local support in review of leases and market conditions. Our methodology included review of a sample of leases and evaluation of the underlying status and development readiness of several proposed key capital projects. The real estate section of the feasibility study included background on the market, overview of the holdings and operations of the division, description of the capital program, and financial projections.