Bullard Houses Case Summary

Pre-negotiation Analysis for Bullard Houses
Jiahui Jiang
Part I
1. Your Client’s (Absentia) Interests
Confidentiality
Not to reveal your client’s interest in Gotham
Not to reveal your client’s identification
Not to reveal your client’s BATNA
Money
Rights to change the zone area into commercial use
2. Other Parties’ Interests
Downtown
Preservation
Save houses from destruction, maintain their historical structure
Reputation
Maintain the symbol of power and privilege
Residential
Eventually sell houses to a condominium developer
Money
Solve the problem of low cash flow
Sell houses as soon as possible
3. Questions to Ask
What is your primary concern for keep Bullard Houses for residential use?
Why do you think that converting Bullard Houses to
Your Client’s BATANA
Alternative site at $20 million - Medium
2. Other Parties’ BATANA
Luxury housing: $11.5 to $13.5 million - Strong
A Quincy Market: $20 million - Weak

Part III
Opening Offer and Basis
Up to $24 million
Basis:
Past experience regarding to possible competing bids
No one else has thought of commercial use
There is a glut of high-rise office space in Gotham

Part IV
1. Potential Concessions
Honestly, I do not see any possible concessions in this negotiation. The two parties has a radical conflict of interests: the buyer wants to make houses convert into commercial use while the seller is unwilling to make this change and want to maintain its residential property. It is not reconcilable.
2. Creative Solution
The only way that might make this negotiation work is not to disclose the client’s real interests, which means I have to hide my client’s intention to change the property to high-commercial