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Kale Roscoe of Detroit and Robert Heath of Philadelphia developed the private industry component of the Coldstream Research Campus at the University of Kentucky.
They constructed eight multi-tenant buildings with lab and office space at the Lexington, Ky., campus. The 735-acre build-out totaled about 1 million square feet and attracted such tenants as IBM, Hewlett Packard and Minolta.
Roscoe has a background in land development and construction and property management in southeast Michigan and across the Midwest.
Heath’s experience is in property financing and management.
HORIZON I
Five-story academic and research building under construction at Blossom and Main streets
Cost: $35.9 million
Upfit: $26 million
Parking garage: $15.5 million
Horizon Plaza: $1.2 million
DISCOVERY I
Five-story academic research building under construction on Greene Street across from the Colonial Life Arena
Cost: $34 million
Upfit: $26 million
Parking garage: $19 million
Discovery Plaza: $1 million
HORIZON II
Planned five-story building for private companies and federal government tenants collaborating with USC researchers
Estimated cost: $20 million to $25 million
DISCOVERY II
Planned five-story building for private companies and federal government tenants collaborating with USC researchers
Estimated cost: $20 million to $25 million
SOURCE: Innovista
The new partners in USC’s Innovista research campus say they are close to signing leases with IBM as well as British business software producer Regus International.
Kale Roscoe of Detroit and Robert Heath of Philadelphia — who jump-started the University of Kentucky’s Coldstream research campus — also say they will start construction of the first of two long-awaited private research buildings in four weeks.
Talks also are under way with undisclosed local firms to move to the downtown Columbia research campus, USC officials said.
“The university wants to see action, and we want to do the work,” said Roscoe, who also helped develop the University of Michigan’s research campus. “You can rest assured that we will put the buildings up.”
Innovista has lagged in both constructing research facilities and recruiting tenants.
USC officials in May publicly stated their “disappointment” with private development partner Craig Davis of Raleigh, who failed to meet 2006 deadlines for the two buildings, dubbed Discovery II and Horizon II.
Two other university buildings, called Horizon I and Discovery I, are being built with taxpayer money. They are nearly complete but are awaiting private tenants. Up to three USC researchers who hold endowed academic chairs are slated for Horizon I, however, and USC scientists occupy the top three floors of Discovery I.
The delays are why USC’s board of trustees in May forced a shotgun wedding between Davis and the new partners and imposed a 120-day deadline for construction to begin.
The three developers this week inked the buy-in deal for the new partners, for an undisclosed amount of cash.
Under the contract, Davis will stay with the project; Roscoe and Heath will play greater roles.
Davis had had an exclusive agreement to build Innovista, and his contract with USC had no penalties for missing deadlines.
But Davis spent what was termed a substantial amount of his own money in a failed attempt to form a research partnership with computer giant Intel.
“We’re reimbursing Mr. Davis for costs and brought in a bit of equity,” Roscoe said. “We cleaned some things up for Mr. Davis and look forward to having a long-term relationship with him.”
Rick Kelly, USC’s chief financial officer and vice president for business development, said the new partners will be fired if they don’t begin construction within 120 days, measured from the signing of the contract this week.
Roscoe will assume major responsibility for building the campus and recruiting tenants. Heath is essentially a money man.
Davis could not be reached for comment. But Roscoe said his role would be limited.
“He will take more of an investor role in this project,” Roscoe said. “I will be playing the developer role and selling the goods, so to speak.”
Further information was not available about Roscoe’s and Heath’s potential corporate recruits.
IBM, the ubiquitous multinational computer technology corporation, is headquartered in Armonk, N.Y. It is the largest information technology employer the world.
London-based Regus International is the world’s largest provider of outsourced office workspace. It offers customer service and office management software as well as full-equipped meeting and office space. It has 950 locations in 70 countries.
John Parks, USC’s executive director for Innovista, worked with Roscoe and Heath in Kentucky while executive director of Coldstream.
“What this (new deal) does is bring in additional (financial) strength” to Innovista, he said.
In Kentucky, Parks said, Roscoe and Heath built eight private buildings totaling about 1 million square feet, and attracted such tenants as IBM, Hewlett Packard and Minolta.
“There had been nothing built there in five years” before they got there, Parks said.
USC’s 110,000-square-foot Horizon II building is estimated to cost between $20 million and $25 million. Roscoe said it is presently out for bid and will take 12-14 months to complete once a contractor is selected. Discovery II also is expected to cost between $20 million and $25 million.
Roscoe and Heath have made numerous visits to Columbia over the past year and had repeatedly talked with Parks about getting involved.
They were looking to diversify their business and said they believe Columbia has growth potential. They cited the resurgence of downtown and Innovista’s proximity to the State House and USC’s main campus as appealing.
“All areas are hit with financial issues right now and everyone is apprehensive,” Roscoe said. “But we’re ready to get moving.”
Reach Wilkinson at (803) 771-8495.
