Strategic About Real Estate

TVA continues to reduce its footprint, lower cost and boost local economies in 2018 through a series of successful moves implemented under its Strategic Real Estate Plan. 

FEBRUARY 6, 2019—TVA’s Strategic Real Estate Group (SREG) exists to help the company right-size itself in terms of buildings and budgets. And 2018 was a very good year. Last year’s progress included auctions, property sales, relocations, consolidations, and building improvements across the Tennessee Valley. To date, the SREG Team has reduced over 1.4 million square feet.

 

2018’s most visible actions included: 

  • Sale of 19 acres and two buildings at Singleton Marine in Louisville, Tenn., for $960,000
  • Sale of 900 acres and 55 buildings on the Muscle Shoals Reservation for $5 million dollars
  • Sale of five acres and one building in Harriman, Tenn., for $55,000
  • Sale of the former Knoxville Customer and Transmission Service Center in Knoxville for $570,000
  • Relocation of the Lenoir City Watershed Team to the Knoxville West Tower and eliminated a yearly lease payment
  • Removal of modular structures at Kingston Fossil Plant
  • Initiation of a Master Plan for Chickamauga Power Service Center (pictured above)
  • Completion of a Master Plan to consolidate all buildings in the Knoxville region into the Knoxville West Tower and Norris Engineering Labs
  • Relocation of the Customer Service Center in Memphis to the Peabody Place Office Tower (pictured below)
  • Implementation of enterprise governance, including standard processes and procedures for all real estate transactions
  • Establishment of business unit reduction targets in TVA’s 2019 business plan

peabodyre.jpg

“This has been a team effort across the board,” said Mike Dobrogosz, senior manager of Strategic Real Estate. “Over the last five years, the SREG team has worked closely with Enterprise Improvement, OGC, Financial Services and many TVA business units to find ways to right-size our real estate portfolio and lower cost to TVA.” 

As part of these efforts, the SREG Team has focused much of 2018 on consolidating the Knoxville region. “We have 55 buildings in the Knoxville region,” said Bill Threlkeld, Property Portfolio Manager. “As with Chattanooga, our goal is to consolidate our Knoxville facilities into two central locations — one for corporate offices and one for field services, such as laboratories, warehousing and fleet materials. Ultimately, this will reduce cost by eliminating underutilized buildings and focus TVA’s future investments and maintenance on two, core locations.” 

In addition to the Knoxville consolidation efforts, the SREG Team is still working to obtain an occupant for the vacant East Tower and Summer Place Garage.

“I think we’re close to finalizing a deal for these properties,” said Dobrogosz. “I know the consolidation and improvement efforts at the KOC have caused some inconveniences to employees, but in the end, this effort will provide employees with more modern workspaces, lower TVA costs and provide economic development opportunities for downtown Knoxville.”