Torre Velasca: determining the Highest and Best Use of a Modern Monument

Problem Statement
“Being an icon of the modern Italian architecture did not preserve the Velasca Tower by carelessness, obsolescence and vacancy. For that reason today the future of the
tower seems particularly uncertain. Furthermore the decision of Fondiaria Sai (the owning company) to sell the tower kindles a vivacious discussion in town about the role
of this edifice in Milano and its cultural value. The research tries to determine the Highest and Best Use (HBU) of the Velasca, considering both the financial feasibility and
the cultural value of tower in the uncertain scenario of the Real Estate Market in Milano”.

Highest and Best Use Cultural

Cultural
Cultural
Values
Value
Cultural
ValuesValues

Use Use
Values
Values
Use Values
Cultural Values
Aesthetic
Aesthetic
Benefits
Aesthetic
BenefitsBenefits 1 1 1

Building Analysis Location Analysis Market Analysis The Cultural Value is not a unique concept,
but can be divided in 11 sub-values orga-
Financial
Financial
Benefits

Educational
Financial

Educational
BenefitsBenefits Use Values 2 2

Benefits
Educational
BenefitsBenefits 3 3
2

3
Aesthetic Benefits 1
Scenarios Interv
nized in 3 groups. Different Interventions Real
ap-Real
Estate
Estate
Value
RealValue
Estate Value 4 4 4
Financial Benefits 2 Sc
Transformation Reh
proaches lead to the activation of different
Heritage
Heritage
as aHeritage
as
source
a source
of
asskills
aofsource
skills of skills 5 5 5
Cultrual value
Strengths Weaknesses
Educational Benefits 3
Conservative Sc
NonNon
Use Use
Values
Non
Values
Use Values
Scenarios
Scenarios
Scenarios I Intervention
Intervention
A Approaches
a Approaches
Real Estate Value 4
The The
role role
of the
The
of historic
the
rolehistoric
of heritage
the heritage
historic
placeheritage
place
in in place
6 in6 6
Transformation
Transformation
Transformation
Sc Sc Sc Rehabilitation
Rehabilitation
Rehabilitation The Event Square Sc
defining
defining
the defining
cultural
the cultural
identity
the cultural
identity
of a identity
of
community
a community
of a community
Heritage as a source of skills Cultural
5
Values
Poor level of services Conservative
Conservative
Conservative
Sc Sc Sc
The retail is mainly
oriented on local
for residentia C Contribution
u Contribution
to historic
to streetscape,
historic streetscape,
7 7 7 The Green Tower Reu
demand neighbourhoods
u neighbourhoods
etc. etc.
Good opportunity to Masterpiece of the The floor plan is not The The
Event
Event
Square
The
Square
Event
Sc ScSquare Sc Non Use Values Use Values
sit, talk and listen Modern Architecture
Poor Accessibility by efficient (GFA/LFA) Scenarios Intervention Approaches
with remarcable Option
Option
values
values
Option
— the—values
value
the value
—
to the
community
tovalue
Scenarios community
to community
8 8 8 Intervention Approaches
Good Accessibility by Good visibility at city detail car
The The
Green
Green
Tower
TheTower
Green Tower Reutilization
Reutilization
Reutilization members
membersof members
having
of having
theofoption
the
having
option
totheThe
visit
to
optionrole
visit
the to of
the the
visit thehistoric heritage place in Aesthetic Benefits
Public Transport level The tower need a A Transformation Sc Rehabilitation 6
historic
historic
heritage
heritage
historic
placeheritage
place
in the
in future
place
the future
in the future
defining the cultural identity of a community
Site not adequate to
strong restoration Transformation Sc Rehabilitation
Site located in the Adequate number of The tower is a listed
sport activities
Inadequate number Financial Benefits
city centre leisure (cafés and building Poor Energy perfor- The amount of of parking places B Conservative Sc Bequest
Bequest
values
Bequest
values
— the
—values
value
the value
—associated
the
associated
value associated
9 9 9
restaurants) Only the 2% of the
mance availabel space for withwith
the knowledge
thewith
knowledge
thethat
knowledge
that Contribution
Conservative
the heritage
thethat
heritage
the
asset
heritage
asset to historic
Sc asset streetscape, 7Educational Benefits Con
facilities in the site
Average protection The prices expressed
are open till late in retail is too little Poor protection can be
canendowed
be endowed
can be
to endowed
future
to future neighbourhoods
generations
togenerations
future generations etc.
against traffic by the Tower are The Tower is a Listed against crime
The Tower has an
higher in average
the night
building
(600m2) C The Event Square Sc Conservation
Conservation
Conservation
indubitable iconic
The Real Estate Value
Average Protection than the one of other The tower is suffering Poor opportunity to E ExistenceExistence
uvalues —values theEvent
the benefits
— gainedSquare
benefits from
gained Sc
from
against unpleasant
shape. Can be easily
considered a Trophy building in the same Poor visibility at Site Phisical Obsoles- of functional walk around. knowingknowing
that thethathistoric
the heritage Cultural Values
Option values
historic heritage
10 10
place has
— the10value to community
place has 8
D Reutilization
The Green Tower ofmembers of having
the the option to visit the
location Level.
ReutilizationHeritage as a source of skills
sensory experiences Building cence obsolesce
been conserved,
been conserved,
irrespective
irrespective
whether
of whether
the
community
u community
membermember The Green
historic
enjoyingenjoying Tower
the benefit heritage
the benefit place in the future
uactually actually
visits it. visits it. Use Values
Location is not that Collaboration with Luxury hotel are Growing the The realization of Collaboration with Office: The are of Bequest values — the value associated Non
9 Use Values
Scenarios Intervention Approaches
Aesthetic Benefits
important in Milano the Municipality to generally associated High-Rise Market EXPO2015 is having the Municipality to Garibaldi will
Indirect
Indirect
ValueIndirect
Value Value with the knowledge that the heritage asset 1
facikitate the with landmark some difficulties and facilitate the compete with the
can be endowed to future generations The role of the historic herita
Milano will host Expo conversion of the building, in New comers in the the program is going conversion of the CBD Transformation Sc Rehabilitation
2015 tower well-established Retail sector on very slowly tower S Spill-over
Spill-over
benefitsbenefits
from from tourism 11 Financial
u tourism 11 11Benefits defining the
2 cultural identity
destination such as Office: 600.000 m2 of Conservation
Sustainability: the Paris, London or High vacancy has Sustainability: The new offices will be
Growing Event Residential sector:
label system of the Conservative Sc Existence values — the benefits
Educational Conservation
Benefits gained from 10Contribution
Economy
public opinion pays Milano. Furthermore
The demand been found also in available before 2012 3 to historic street
certainly attention to they are associated
characterizing by the retail around the energy classes is knowing that the historic heritage place has
this argument with tradition and square pretty complicated Residential: afford- neighbourhoods etc.
Growing attention for history with design
buyers with strong
and very technicale ability is the real
The Event Square Sc been conserved,
Real irrespective
Estate Value of whether the
the Modern Culture purchasing power. 4
being influenced by Sustainability: The problem of Milano- community member enjoying the benefit
The demand is certain time period supply and the Prices are too high
interested to this which in turn New supply in all
I still have some
actually visits it.
Heritage as a source of skills Option values — the value to
PGT is a new tool Sustainability if maintains the hotel categories is
operator of the
supply side still do
doubts that the
The Green Tower Reutilization members of 5 having the option
buyers feel the
that can encourage related to the cost luxurious feel of each expected to further
Integrated regenera- saving. hotel in the segment. limit the Milanese
not give an exhaus-
tive answer to the
energy performance historic heritage place in the f
as quality element of
tion process. hotels ability to doubt of the the estate Non Use Values
Indirect Value
increase occupancy demand. Scenarios Intervention Approaches
Massive levels Bequest values — the value a
Re-development of The rolefrom
Spill-over benefits of the historic heritage place
tourism in the knowledge
11with that the

Opportunities Threats
the city. Transformation Sc Rehabilitation 6
defining the cultural identity of a community
can be endowed to future gen
Conservative Sc Conservation
+ Contribution to historic streetscape, E 7 u
neighbourhoods etc.
The Event Square Sc
Option values — the value to community u 8
The Green Tower Reutilization members of having the option to visit the
u
historic heritage place in the future
A B
Building A
Each Scenario is related to different Indirect Value
Bequest values — the value associated 9
Location Intervention Approaches whichwith the knowledge that the heritage asset
sug- Spill-over benefits from touris
can be endowed to future generations
Market gest the Cultural Values, that are ac-
Conservation
tivated. The Scenario C and D Existence
( The values — the benefits gained from 10
knowing that the historic heritage place has
C D Event Square and The Green Tower) been conserved, irrespective of whether the
lead to a mixed Intervention Approach
community member enjoying the benefit
actually visits it.
(Reutilization+Conservation), which is
B
able to maximize the use of the Cultur-
Indirect Value
al Value (because the greater amount
of sub-values result activated). Spill-over benefits from tourism 11

Historical High Rises in Milano For that reason, among the 4 Sce-
narios, which have been extracted
1 Torre Velasca
by the market analysis, the consider-
2 Torre Breda ations about the Cultural Value sug- C
gest to further develop the third and
3 Torre Pirelli
the forth.
4 Torre Galfa
5 FFSS I

6 FFSS II 450m

7 Torre Romana D

Tower Recently built or Planned inMilano 400m

1 Palazzo Lombardia
2 Torre Porta Nuova 350m

3 High Rises Hotel

4 High Rises Residential 300m

5 High Rises Offices

6 CityLife 250m

3
Case Study in New York 2

200m
2 Torre Porta Nuova 6

3 High Rises Hotel 6

150m
4 High Rises Residential
1 3 2 6
5
3
2 100m
4
4 1
5 6 1
4
4

Igor Lusardi 4049276 R&H Corporate Real Estate Management