07.28.08 - GlobeSt
Transcend Equity Tackles MOB Green Conversion

MGM Mirage To Anchor $4.2B Development in Vietnam :
LAS VEGAS-A $4.2-billion integrated beachfront resort project by a Canada-based company will begin with an 1,100-room resort to be operated by MGM Mirage.

MESA Increases Funds Available for Distribution
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Our MESA solution is significantly more attractive than traditional procurement methods for three main reasons:

1. MESA increases yield. MESA doesn’t require landlord capital and does not increase building operating expenses. Minimizing the amount of your capital invested in your assets while maintaining cash flow increases your realized yield on the investment.

2. MESA does not use cost recoveries. MESA is an operating expense not a capital item. Traditional improvement transactions (cash, financed or leased) are considered capital items, and are thus bound to the cost recovery methods that are defined in your leases. Generally speaking, these methods are financially restrictive and discourage comprehensive improvement projects. Further, because it tends to be difficult to measure the cost/savings impact of each individual improvement you make to your building, cost recovery billings tend to be a contentious issue when presented to your tenants for reimbursement.

3. MESA provides 100% of the benefit with 0% of the risk. Due to the financial constraints mentioned above, improvements made via traditional procurement methods direct only 40 – 70% of the financial benefits to the landlord while burdening the landlord with 100% of the performance risk associated with the improvements.

Transcend Equity. Looking at things differently.
 
 
   
 
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