Colorado State and JLL complete new research facility
First-of-its kind public-private partnership utilized for funding and development of new translational research facility
CHICAGO, October 17, 2019 – When Colorado State University (CSU) set out to build a leading center for translational research – translating primary research into innovative, real-world medical treatments for people and animals – they were interested in exploring the benefits of private sector innovation and risk transfer through a public-private partnership (P3). As the first-ever P3 for the university, CSU engaged JLL as an advisor to examine various procurement structures, construct the P3 strategy and advise on every aspect of the P3 proposal, from the architectural specifications to specifications for maintenance and operations.
Under JLL’s leadership, the procurement specifications were changed to allow the private sector partner to design the facility for performance, rather than highly specific design criteria. The team’s recommendations included revising the design specifications in the P3 proposal to focus on outcomes, as well as transferring maintenance and operations risk to the private sector partner. This change allowed for more private sector innovation in the solution, which resulted in a redesigned building that the end users preferred more than the earlier design with its highly prescriptive specifications. These changes also freed up savings that allowed the developer to provide several million dollars’ worth of additional programming that was previously deemed out of reach.
“JLL’s successful track record and expertise with higher education institutions was essential in leading us through the P3 process,” said Tom Satterly, the University’s Associate Vice President for Facilities Management. “With JLL’s guidance, we were able to obtain a higher performing facility at better value while transferring the operations and maintenance risks to the developer.”
CSU selected Tetrad Property Group as the private sector partner, to design, build, operate and maintain the now-completed $65 million C. Wayne McIlwraith Translational Medicine Institute (TMI). Under the terms of the agreement, CSU retains ownership and occupancy of the new facility. Meanwhile, the private sector partner assumes responsibility for general building maintenance, capital renewal and operations for 30 years.
“By leveraging our in-depth expertise in real estate development and P3s, CSU is able to focus on their unique areas of expertise and executing on their vision for creating a leading research center,” said Bob Hunt, Managing Director, West Region, JLL's Higher Education group.
The now completed C. Wayne McIlwraith Translational Medicine Institute is expected to support new discoveries in translational medicine, enhancing CSU’s research expertise in areas such as orthopedics, biomedical engineering, immunology, infectious disease and surgical advances.
JLL's Higher Education practice partners with public and private universities, as well as university health systems, to help fulfill their missions through the stewardship of real estate. The group taps the unrealized potential of real estate to produce cost savings, improve financial strength, manage risk and improve the overall student experience. A leading provider of higher education services, JLL has worked for more than 200 colleges and universities throughout the world and provides a broad range of services that encompasses brokerage, project and development management, sustainability solutions, public private partnerships, facilities management and master planning. JLL's expertise includes student housing, athletic stadiums, gateway and innovation projects, science and research facilities, parking garages, continuing education, hospitals and international campuses. For more information, visit www.jll.com/highereducation.
Colorado State University in Fort Collins, the System’s flagship institution, is a doctoral-granting research university with a student body of more than 33,000. The University was established as the state’s only land-grant institution in 1870, and currently boasts top-ranked business, veterinary medicine, and journalism schools, as well as groundbreaking research in atmospheric sciences, infectious diseases, and clean-energy technologies. In addition, CSU Extension provides services to all 64 counties in the state, offering community-oriented education, research, and 4-H programs to all Coloradans. Learn more at https://www.colostate.edu/.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com