Sheraton Norfolk
Waterside Hotel
(formerly Omni Waterside Hotel)
777 Waterside Drive
Norfolk, VA
Karchem's Role: Project Manager
Investor: Intertech Corporation
Size: 442-guest rooms
Budget: $1.1 million
Schedule: 16 weeks
For 10 years, Karchem properties advised Intertech Corporation on its investments in commercial real estate. In addition to the Norfolk Waterside Hotel, Karchem evaluated four other hotels for Intertech in Baltimore, Detroit, Pittsburgh, and Northern New Jersey.
In 1993, Karchem Properties assisted Intertech in conducting acquisition due diligence. Based on our findings, we recommended a reduction in the purchase price. During the initial site visit, Karchem Properties detected asbestos-containing materials. After conferring with an abatement contractor, Karchem determined that the cost to abate the hazardous materials would total about $1 million.
Following closing on the hotel, Karchem Properties compiled a comprehensive room condition survey, documenting the presence, quantity, and condition of deteriorating asbestos-containing materials. Karchem negotiated with a general contractor and environmental consultant to provide abatement services.
Given the extent of the abatement effort, Karchem recommended simultaneous renovation of the guest rooms to capitalize on the construction work already required by the abatement project. Karchem prepared a renovation schedule for execution during the off-peak season and directed the renovation. Each floor was slated in turn for a one-week abatement effort, a schedule that was closely coordinated with the general manager and the sales director to minimize the loss of room revenue.
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