What is a Multi-tenant Nonprofit Center

Shared Spaces: Sustainable Workspace for Nonprofits China Brotsky Vice-President, Special Projects Tides Family of Organizations May 13, 2004 Needed: A Home A Family Focused on Promoting Change Towards a Healthy Society Tides Foundation 1976 1989 Tides Center Thoreau Center 1996 Groundspring. org California Clinics Initiative 1999 Tides Canada 2000 2003 • Seven values-based organizations with a common vision • Providing infrastructure solutions to the social change movement • Flow-through: ~$140 million/year • Offices in five cities in two countries Shared Spaces Nonprofit Real Estate Problems • Second largest expense next to staffing • Economic Boom and Bust - Instability - Subject to Vagaries of Market - Declining Revenues • Location and Quality Challenges and Opportunities • Challenges – - Nonprofits don’t know real estate • Opportunities - Favorable economic climate: the moment is now!! - Leveraging nonprofit resources Cleveland Environmental Center, Cleveland, OH Multi-tenant Nonprofit Centers • Stability • Affordability • Quality Program Space • Visibility Donald W. Reynolds Community Services Building, Incline Village, NV Community Benefits • • • • Increasing Direct Program and Service Delivery Providing Community Resources Creating New Hubs of Economic Activity Community Campus of the Foundation for Seacoast Health, Portsmouth, NH Increasing the Effectiveness of the Nonprofit Sector Strategic Components of Venture • Strengthening the Thoreau Center for Sustainability • National Public Education Initiative - www.nonprofitcenters.org online resource center • Creating 3-5 new Multi-tenant Nonprofit Centers across the Country Community Building, Spokane, WA Bringing People Together • Network of Peer Support and Education for Existing Centers • Education and Resources for Emerging Centers • Advocacy and Education with Philanthropy, Real Estate, Financial and Government about nonprofit real estate and MTNCs • Long-term vision of quality program and workspace for public benefit organizations • Operated informally since Fall of 2000 The Nonprofit Centers Network • Business Plan and formal creation of The NonprofitCenters Network, launch May 2004 • Online education: www.nonprofitcenters.org • Newsletter and other Best Practices Publications • Regional and National Conferences - Mid-West conference May 6-7, 2004 in Cleveland - National Conference May 2005 in San Francisco • Support the Network with memberships, grants and corporate sponsorships • Seed Funding received from anonymous funder Thoreau Center for Sustainability • Mission is to be environmentally and financially sustainable • Office complex: 150,000 sq ft in 12 buildings • 50 tenant organizations, primarily nonprofits Front Entrance – Thoreau Center for Sustainability, San Francisco, CA • Used green design principles in an historic building Tides Rents Vs. SF Market Rents San Francisco Bay Area Class B Office Space Rent 1998-2002 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Q4 Q2 Q4 Q4 Q2 Q2 Q4 Q2 19 98 19 99 20 02 20 00 20 01 20 02 20 00 20 01 19 99 Q4 San Francisco Rents Tides Rents Rent Quarter Market Niche = Competitive Advantage MARKET Traditional Real Estate Tides Real Estate Division: Multi-tenant Nonprofit Centers WHO For Profit Developers Multi-sector collaborative projects: •Nonprofit •For profit •Philanthropy ROI Financial Bottom Line (25% return) Triple Bottom Line • 5-10% return • Social Impact • Environmental Health FINANCIAL TOOLS • Private Capital • Commercial Debt • Tax Credits Access to Both Commercial and Nonprofit Financing Tools • Tax-exempt Bonds • Government Funding • Grants • PRI’s $ Fully Subsidized Real Estate Government Federal Local Philanthropy Subsidies support social and environmental public benefit Our Team • Drummond Pike – President of Tides Family • China Brotsky – Vice-President, Special Projects, co-founder of Groundspring.org • Tom Sargent - Equity Community Builders, LLC, developer and manager of multi-tenant buildings for over 10 years, San Francisco • Diego Recalde – Concrete Stories, real estate development and consulting firm, New York City Thoreau Center for Sustainability, San Francisco, CA Resources Needed • Start-up support: - $150,000/year for 2 years • Revolving Acquisition Fund: - $100,000 one-time contribution Thoreau Center for Sustainability, San Francisco, CA • Long-term loans and program-related investments: - $100,000 - $1M, earning 4-10% return Conclusion and Q&A Thoreau Center for Sustainability, San Francisco, CA Contact Information China Brotsky Vice President, Special Projects Shared Spaces: Sustainable Workspace for Nonprofits Tides, Inc. PO Box 29198 San Francisco, CA 94129 Phone: 415-561-6337 Email: china@tides.org www.tides.org www.thoreau.org www.nonprofitcenters.org