The Livestrong Foundation, the Austin-based totally cancer nonprofit, sells its glossy East Austin headquarters in a flow it says will permit it to reach greater cancer patients.
Greg Lee, the muse’s CEO, said Livestrong purchased and renovated the 30,000-square-foot building for $5.8 million in 2008. Now, Livestrong has bought the belongings to Notley Ventures, an Austin-based undertaking firm that backs for-earnings startups that make a social effect in addition to nonprofit ventures.
The sale price of the belongings at 2201 E. Sixth St. Was $17 million, Lee said.
“Since day one, I’ve had human beings approach me and ask if we have a concept about selling it ever,” Lee said. “Over the ultimate 18 months, the frequency of these individuals who were accomplishing out and the visibility of these those who were achieving out simplest extended. We were capable of close on a sale of the assets for almost triple the amount that we paid.”
Lee stated the selection to promote the headquarters had not been made because the muse is suffering financially. Rather, he stated, Livestrong decided to promote because the money will enable the muse to amplify its services.
“We’re no longer in the business of real property development. We’re in the business of supporting humans with most cancers, and this turned into just a natural manner for us to try this,” Lee stated. “Our 23-yr history has usually been focused on taking objectives at the gap in most cancers care, and we can maintain to try this. Financially this offers resources for us to say how are we able first-class to deploy sixteen to 17 million (greenbacks) to help the cancer network.”
Livestrong was based in 1997 via most cancers survivor and bicycle owners Lance Armstrong and changed into at the beginning named the Lance Armstrong Foundation. The agency struggled through years of turmoil and declining sales after the downfall of Armstrong, who admitted to using overall performance-enhancing pills at some stage in his seven Tour de France victories. Armstrong resigned from the foundation in 2012.
Between 2011 and 2015, contributions fell eighty-five percentage, in step with the Associated Press. In its annual document, Livestrong said it had revenue of $12.1 million in 2017, $13.1 million (anticipated based totally on pre-audited numbers), and projected revenue of $thirteen.1 million in 2019.
Today, the foundation carries out some of the programs along with Livestrong at the YMCA, a physical activity and well-being application designed to assist most cancers survivors in attaining their fitness desires. Livestrong has served 67,000 contributors through this system.
Regarding the sale of the Livestrong headquarters, Daniel Borochoff, president of Chicago-primarily based CharityWatch, which rates and evaluates charities for donors, said that “lots of corporations sell their constructing whilst it appreciates — it’s no longer ordinary or uncommon.”
“It may also thoroughly be the prudent aspect for them to do if they could locate extra reasonably-priced office space that suits their wishes,” Borochoff stated. “As a charity, they don’t always want a perfect deluxe office. It’s better than they’re capable of direct greater assets to their motive, so that might make loads of experience to try this.”
In 2017, its most current audit 12 months, the muse had over two years’ worth of reserves and total fund stability of $ fifty-seven. Eight million, of which $13.7 million is permanently restrained, Borochoff said. The foundation in 2017 also reduce its deficit in half, and its fundamental source of sales is from investment income, he mentioned.
“They’re not in dire straits,” Borochoff stated. “They’re virtually not (promoting the constructing) due to the fact they have to have that cash a good way to operate.”
Lee said the inspiration would hire returned the headquarters from Notley for six months simultaneously as it conducts a look for a new domestic. Livestrong hasn’t decided if it will buy or hire space for its 23 personnel, he said.
Before Livestrong offered the East Sixth Street property, the website housed a warehouse that furnished janitorial and paper elements to the inn enterprise. The basis oversaw yr-lengthy protection that transformed the construction into a showcase headquarters with excessive ceilings, herbal mild, and lots of open space for collaboration and community gatherings.
Notley Ventures, situated on Springdale Road, will hire a new tenant while Livestrong movements, stated Matt McDonnell, Notley founder and coping with a partner.
“The Livestrong headquarters has been a superb space for nonprofits in East Austin, and we experience very lucky to be the stewards of the subsequent bankruptcy in its records,” McDonnell said. “We are devoted to building upon its legacy and continuing its project as a domestic for modern, transformational social impact.”