2019 Appraisal Institute Conference July 22, 2019 2019 Appraisal Institute Conference

U.S. Embassy Tegucigalpa Security, Resilience, and Stewardship OBO’s mission is to provide safe, secure, resilient and functional facilities that represent the U.S. Government to the host nation and support OBO staff in the achievement of U.S. foreign policy objectives. OBO constructs, maintains, and manages facilities that represent American values and the best in American architecture, design, engineering, technology, sustainability, art, culture, and construction execution. U.S. Embassy Tegucigalpa SHoP Architects 2

A Global Portfolio 291 18,300 80 Million 25,153 $88.7B 15,995 Locations 18,300 Culturally Significant Objects 80 Million Square Feet 25,153 Assets $88.7B Replacement Value (owned assets) 15,995 Leases Foreign Building Program established in 1926 Foreign Buildings Act- named Porter Act after chief sponsor, Rep. Stephen Porter (R-PA) – established commission to oversee the purchase and construction of diplomatic facilities OBO manages app. 80 Million square feet of office and residential property in 282 locations. $3.8 billion includes all contributions in FY 18 25,100 assets include both leases and GO properties 36% of the portfolio is owned at 74% of the portfolio is leased. The owned assets have an estimated replacement value of $51.2 billion.

Program Activity Snapshot Capital Security Construction 60+ Active Projects $20 Billion Workload Major Renovation 25+ Active Projects $950 Million Workload Compound Security Upgrade 25+ Active Major Projects $260 Million Workload 4

Diplomatic Project – Beirut Lebanon Located on 44-acre site in the Awkar suburb of Beirut Includes chancery, Marine security guard residence, support annex buildings staff & temporary housing, community facilities & parking Projected to earn LEED® Platinum Anticipated date of completion - 2022 Architect: Morphosis Architects General Contractor: B.L. Harbert International Total Project Budget: $1B Since 1999, as part of the Department’s Capital Security Construction Program, OBO has completed 135 new diplomatic facilities with an additional 50 projects now in design or under construction. 5

Sample Projects 6

Evaluations Division – Scope of Services Acquisition Valuations Lease Negotiation Support Disposition Valuations Valuations Redevelopment/JV Analyses Commercial Property Valuations Preliminary Value Analyses New Embassy/Consulate Analysis Lease vs. Buy Analysis Fair Market Rent Determination Housing Valuations Financial Analyses Acquisition / Disposition Support Renovation Cost Feasibility Market Studies ǀ Feasibility Studies 7

Evaluations Division – Who We Are Staffing – Chief Appraiser, 9 Review Appraisers, 2 Program Analysts – 7 MAIs + Virtual Interns EV Appraisers real estate careers include experience in: Appraisal Appraisal Management Real Estate Finance Consulting Teaching/Lecturing Leasing/Brokerage Facility Management Development City Planning Expert Witness Tax Certiorari Authorship 8

Contracting for Appraisal Services Indefinite Delivery/Indefinite Quantity (IDIQ) contracts provide the U.S. government with appraisal and valuation services for acquisitions and dispositions of land and improved property as well as fair market rent determinations worldwide. Current one-year IDIQ contract awarded October 2018 with four, one-year renewal options All vendors must have Data Universal Numbering System (DUNS) number Individual assignments are competitively bid as best value task orders 9 9

Working with Evaluations Division Challenges for IDIQ Field Appraisers Communications – language, culture, time-zones Field support – coordination with U.S. mission & EV Willingness to cover difficult locations Creativity in solving the tough ones Potentially short turnaround Unique property rights Opaque markets U.S. Embassy Ankara Ennead Architects 10

Each assignment – a journey and partnership Final Thoughts Each assignment – a journey and partnership For more information contact: Wayne A. Nygard, MAI Evaluations Division Chief 703 875 6721 NygardWA@state.gov 11