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investor).
Eastdil Realty prepared a report dated July 16, 1984,
entitled “Report to the United Banks of Colorado on One, Two and
Three United Bank Centers and the Atrium Commitment” (the Eastdil
report), which was reviewed by the Committee at its meeting of
September 24, 1984. An observation made in the Eastdil report
provides:
Construction of the atrium will inhibit the Bank
from selling its Broadway-Lincoln property as one unit.
This may reduce the proceeds from the sale of the
Bank's property on the block. In the discussion of the
Broadway-Lincoln block below, we conclude the Bank may
be able to get more for its Broadway-Lincoln property
if it is sold as one package rather than if Two and
Three United Bank Center are sold separately. If the
entire block is sold as a package, the purchaser can
keep the existing buildings, or replace them with a new
52-story office tower at some future date. This
assumes, however, that the atrium is not built.
If the atrium is built, the remaining ground area
on the Bank's portion of the block is not sufficient to
support a 52-story building. As a result, the block is
no longer as attractive a development site, and as such
will probably not command as high a sales price.
In addition, the Eastdil report estimated that the present
value of the net cash flow that would be generated by the retail
operations planned for the Atrium was $2.7 million. The report
noted that, although optimistic, the present value of the net
cash flow that could be generated from adding 39,000 square feet
of additional retail space “by opening the second and third
floors of Three United Bank Center to retail and building Two
United Bank Center out at the ground level to the sidewalk on all
sides and on the second floor” could be as high as $6.9 million.
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