Agenda Item
c. RFP 22-533 Real Estate Advisory Services Renewal Approval ~ Dudley Thomas Spade SPE, LLC dba DTSpade (from November 18, 2024 through November 17, 2025 ~ Renewal Year 3 of 4 (Not to exceed $300,000)
Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Request: It is requested that the Board of Education approve the renewal of RFP 22-533 to Dudley Thomas Spade SPE, LLC dba DTSpade, on an as needed basis, to provide real estate advisory services for a period of one year effective from November 18, 2024 through November 17, 2025 for an amount not to exceed $300,000.
Why: This request to renew RFP 22-533 ensures the district is provided real estate advisory services on an as-needed basis for services that include but are not limited to real property appraisal, assessments, valuations, acquisitions, brokerage and disposals based on the best value of the property in the context of the current and projected market. This is renewal option three (3) of four (4).
Details: RFP 22-533 was competitively solicited through the Purchasing Department. It was posted to IonWave on June 10, 2021. The RFP was advertised in the Champion Newspaper on June 10, 2021 and June 17, 2021. Electronic notification was sent to 56 vendors from the DCSD vendor bid list. Electronic notification was sent to 1,089 vendors through the State of GA Procurement Registry. Electronic notification was sent to 166 vendors through IonWave. Four (4) vendors responded to the solicitation. The responses were reviewed and four (4) were deemed responsive to requirements of the solicitation by the Purchasing Department.
Financial impact: The contract amount of $300,000.00 will be paid from the general fund GL Code: 100.2500.530000.7200.9990.8010.00.0000 and Capital Outlay fund GL Code: 300.4000.530000.7520.9990.8013.050.0000
The rate for non-brokerage services will be $125.00 per hour. Fees for brokerage services will be billed separately and are paid for from the proceeds of the transaction.
Contact: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance, 678.676.0278
Status: Approved by General Counsel
DEKALB COUNTY SCHOOL DISTRICT PROPOSAL JULY 20, 2021
Compensation
PROPOSED FEE SCHEDULE
Real Estate Advisory Services
DTSpade is committed to the excellent execution of each task. We provide our best services when
our thought partners allow us to ‘stay at the table’ - this helps build trust and relationships, to
learn and question, to share and explain, and to be accountable and responsive.
Column two below denotes the upfront professional time we anticipate spending, with no
expectation of compensation. We honor the opportunity to do business, to learn and onboard
and to contribute in a meaningful way. We list some of these in the Added Value section.
In column three we list our hourly rate of for consultation activities that go above and beyond
what is anticipated. This honors our professional time, ensures long term sustainability, and
incentivizes efficiency.
We will track all hours in each category as part of our monthly reporting.
ACTIVITIES TIME VALUE
ANTICIPATED TIME ABOVE & BEYOND
ANTICIPATED ANNUAL ACTIVITIES (absorbed at no charge) (after time absorbed)
20 hours each Up to 20 hours at $125/hr
DTSpade + QVA Meetings With DCSD Team
(total 40 hours) (not to exceed $2,500.00)
DTSpade Monthly Reporting 24 hours n/a
up to 20 hours at $125/hr
DTSpade Broker Opinion of Value n/a
(not to exceed $2,500.00)
DTSpade + QVA Attend 10 hours each Up to 20 hours at $100/hr
Community Engagement Gatherings (total 20 hours) (not to exceed $2,000.00)
DTSpade + QVA Specialized Reports and
10 hours each Up to 20 hours at $125/hr
Presentations For Constituents
(total 20 hours) (not to exceed $2,500.00)
(outside of DCSD team or DOE)
Up to 40 hours at $125/hr
DTSpade ESRI Mapping 20 hours total
(not to exceed $5,000.00)
DTSpade SRE 55
DEKALB COUNTY SCHOOL DISTRICT PROPOSAL JULY 20, 2021
Compensation continued
PROPOSED FEE SCHEDULE CONTINUED
Real Estate Brokerage Fees
Fees for Listing (real estate disposal) and Selling (real estate acquisition) will depend on whether
the property has an improvement on it or not. Land deals without improvement typically
take significantly longer to sell. The asking prices tend lower depending of course on size
and particularities of the market. Higher fees for land sales are not atypical in the brokerage
community as upfront holding costs to brokers is significant and transaction times tend to be
longer.
Fees for listing and selling also depend on whether there is another broker (co-broker) engaged
by the purchasing customer. DTSpade will split its fees 50/50 with purchasing customer’s broker
if we list a property for sale.
It is customary in brokerage for the listing broker to receive brokerage fees from the sale at the
time of closing and simultaneously for fees to be dispersed to the purchaser’s brokerage. Even
though this is customary, a commission agreement will be part of the contract terms and will
explicate how much, when and by whom fees are paid. Hence it is important to include the co-
brokers fees in this proposal.
Likewise, if DCSD is acquiring the property and DTSpade is the selling broker in an acquisition,
then DTSpade would negotiate a sales price that is inclusive brokerage fees below. The fee would
be paid by the owner/listing broker and no direct payment would come from DCSD, unless
DCSD chooses some other process for paying fees. Such an option would be delineated clearly in
settlement documents.
There can be considerable variation in leasing fees and when they are paid depending on the
terms, size and Landlord (or Tenant). Hence for simplicity and to ensure there is a specific cap
on the fees, we consider leasing from a Landlord as a Tenant the same as an “acquisition” below
and leasing to a Tenant as a Landlord the same as a “disposal” below.
ACTIVITIES DISPOSAL ACQUISITION
<$2,999,999 >$3M <$2,999,999 >$3M
Co-Brokered land 10% 8% 5% 4%
Co Broker Land + Improvement 8% 6% 4% 3%
No Co broker Land 5% 4% 5% 4%
No Co Broker land + Improvement 4% 3% 4% 3%
*Brokerage fees include: Negotiating purchase/sale/lease of DCSD parcels and obtaining executed purchase
ageements; Advising the DCSD Board of Education and DCSD in all matters regarding the purchase sale,
lease offers claims, counter offers pertinent discussions; Attending closings; obtaining plans, right of way
maps, title searches, title commitments, owners title policies, acquisition and/or eminent domain use in
project.
DTSpade SRE 56
DEKALB COUNTY SCHOOL DISTRICT PROPOSAL JULY 20, 2021
Compensation continued
PROPOSED FEE SCHEDULE CONTINUED
QVA Appraisal and Valuation Fees
The primary focus of Quest Valuation & Advisors is development of sound and credible real estate
valuation analysis. We understand that each assignment will require discussion, administration,
and coordination time to address the scope of work and any special circumstances. Our fees in
the chart below includes typical report development and consultation prior to and during this
process. In the instances, after a report is complete, that explanation is needed for constituents
beyond DCDS, then an hourly rate of $125/hour will be applied for additional consultation
services beyond the scope of our report development.
LAND ONLY LAND + IMPROVEMENT
(NO IMPROVEMENTS)
<29,999sf n/a $ 4,000
>30,000 sf n/a $ 5,000
<9.99 AC $ 2,500 n/a
>10 AC $ 2,500 n/a
DTSpade SRE 57