79th & biscayne final edited
Post on 11-Jul-2015
3.444 Views
Preview:
TRANSCRIPT
79th & Biscayne
Urban Infill Team Presentation
Molly Parnes, Xuqiao Wang,
Felipe Azenha, Jacob Aaron
Francisco Rodriguez, Khaled Alawadhi
May 4, 2012
Site
Zoning • Miami 21- T6-8 (O) Can build up to 8 stories
• The proposed project is larger than 9 acres, and qualifies as a Special Area Plan.
• Special Area Plan: Allow parcels greater than nine (9) Abutting acres in size to be master planned
• Transit Oriented Zone: parking reduction with mixed-use by 30%
Vision
• Create a Mixed-Use destination and not an eye sore
• Establish a central focus for the Upper East Side
Commercial corridor
• Fill the demand for a better office, retail, residential
• Host local farmers markets, food trucks and events
• Non-traditional tenant mix based on area demands
• Anchor the site with a strong office tenant such as
an IVAX
Development ProgramDevelopment Snapshot SF Units Total SF
Multifamily Units 910
1 Bedroom 650 500 325,000
2 Bedroom 1,100 350 385,000
3 Bedroom 1,300 60 78,000
Town House Units 1,500 20 30,000
Leasing Office 1 1500 1,500
Mailbox Room 3 500 1,500
Fitness Center 1 2500 2,500
Business Center 1 2500 2,500
Pool Area (rooftop) 1 5000 5,000
Lobbies 3 500 1,500
Hallways 120,375
Total Multifamily 952,875
Trader Joe's 15,000
Retail (Including Trader Joe's) 183,995
Office 491,100
Parking Phase 1 Block 1, 2, 4 350 638 223,300
Parking Phase 2 Block 3 350 430 150,500
Parking Phase 3 Block 6,7 350 551 192,850
Hardscaping (streets, sidewalks 115,000
Landscapping 59,000
Community Market 100 5,000
Site Demolition 248,000 248,000
Total Development with landscaping 2,194,620
Gross SF (parking not incl) 1,642,970
Multifamily 43%
Retail 9%
Office 22%
Parking 26%
Square Feet Distribution
•Residential- 930 Units•Retail- 183,995 sqft•Office- 491,100 sqft
Development Proposal
• Trader Joe’s Grocery Store
• Rental apartments and townhomes
• Large scale office tenants to anchor development
• Convenient retail for development
• Restaurants
• Marketplace setup for locals to sell produce/goods
• Outdoor recreational area by river
Market AnalysisDEMOGRAPHICS• Population of the 5-minute drive radius:
• Population: 20,801
• Households: 7,403
• Average age: 39
Demographics of Historic Neighborhoods on East of Biscayne:
• Average Household Income: $76,567
• Average home value: $500,000
• 55% rental / 45% owner occupied
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0 to 4 5 to 9 10 to 14
15 to 17
18 to 20
21 to 24
25 to 34
35 to 44
45 to 54
55 to 64
65 to 74
75 to 84
85 and over
2010 Estimated Population by Age
Market Analysis
Residential ComparablesThe Bank and Nirvana
• Current average rents for both of these developments are exactly the same at $1.74 sq ft.
Market Analysis
OFFICE
• Mostly Class C with some Class B and one or two Class A buildings.
• The rents range from $16-$25 per square foot.
• Most of the office is located to the south of the site which is closer to Midtown, Downtown Miami and Brickell.
• The average rental for offices is $19.10 per SF direct gross rent and the vacancy is 25%.
• The absorption is negative at this moment.
Market Analysis
RETAIL
• Currently- a discount retail center, serves mostly the locals from the Westside of Biscayne boulevard
• NO competition for our project
• People drive past the site to other retail destinations
• Trader Joes- the Retail anchor for the retail section of the development
Building Programs
Financial Assumptions
Retail 3.5%
Multifamily 4%
Office 3%
Growth Rates
Retail 15
Office 30
Tenant Improvements
Multifamily 3%
Retail 5%
Office 5%
Stablized Vacancy
Expenses
Residential 35%
1 Bedroom $1,100 % of GI
2 Bedroom $1,500 % of GI
3 Bedroom $1,800 % of GI
Townhouse 3/2 $2,300 % of GI
Retail $23 6.00
Trader Joe's $20 6.00
Office $24 7.00
Parking/Space $230 25.00
Rental Rates
Loan Assumptions
Development Cost $28,088,458
LTC 55%
Amount Loaned $15,448,652
Equity $12,639,806
Interest (LIBOR) 0.47%
Spread 3.50%
Total 3.97%
Construction draws $14,386,879
Total Interest $1,930,497
Loan $15,448,652.12
Equity $0
Annual debt service $1,122,328
PV $15,448,652
FV 0
N (years) 30
LTV 55%
I/R (annual) 6%
PMT $1,122,328
Permanent Loan - Retail
Construction Loan - Retail
Development Cost $107,750,688
LTC 65%
Amount Loaned $70,037,947
Equity $37,712,741
Interest (LIBOR) 0.47%
Spread 3.50%
Total 3.97%
Construction draws $63,569,227
Total Interest $9,951,877
Loan $70,037,947.02
Equity $0
Annual debt service $4,952,820
PV $70,037,947
FV 0
N (years) 30
LTV 75%
I/R (annual) 6%
PMT $4,952,820
Permanent Loan - Multifamily
Construction Loan - Multifamily
Development Cost $79,196,343
LTC 55%
Amount Loaned $43,557,989
Equity $35,638,354
Interest (LIBOR) 0.47%
Spread 3.50%
Total 3.97%
Construction draws $40,566,192
Total Interest $5,439,631
Loan $43,557,988.63
Equity $0
Annual debt service $3,335,559
PV $43,557,989
FV 0
N (years) 30
LTV 60%
I/R (annual) 6.50%
PMT $3,335,559
Permanent Loan - Office
Construction Loan-Office
Investment Summary & Sensitivity Analysis
Multifamily 22.11%
Retail 23.09%
Office 16.14%
Parking 12.16%
Total 18.88%
IRR
Investor 21.51%
Developer 33.24%
Investor 22.34%
Developer 38.12%
Investor 15.10%
Developer 32.80%
Investor 11.88%
Developer 16.80%
Retail
Multifamily IRR
Retail IRR
Office IRR
Permanent Loan Rate Downside Current Upside
Retail 6.50% 6.00% 5.50%
IRR -0.13% 23.09% +0.13%
Multifamily 6.25% 5.75% 5.25%
IRR -0.21% 22.11% +0.21%
Office 7.00% 6.50% 6.00%
IRR -0.15% 16.14% +0.15%
Parking 6.50% 6.00% 5.50%
IRR -0.28% 12.16% +0.27%
Effect on IRR
Retail 7.50% 7.00% 6.50%
IRR -1.06% 23.09% +1.14%
Multifamily 6.50% 6.00% 5.50%
IRR -1.39% 22.11% +1.50%
Office 9.00% 8.00% 7.00%
IRR -1.99% 16.14% +2.24%
Parking 7.00% 6.50% 6.00%
IRR -1.36% 12.16% +1.41%
Exit Cap Rate
Development Costs
Multifamily $73,620,000
Retail $17,111,535
Office $56,476,500
Parking
Multifamily $12,841,127
Retail $4,101,047
Office $3,457,226
Site Demolition $744,000
Landscapping $590,000
Hardscapping $1,380,000
Site Purchase Price $20,655,508
Hard Development Costs
Total Costs $247,067,974
Total Costs w/o land $226,412,466
Total Development Costs
Parking $36
Multifamily $90
Townhomes $85
Retail $93
Hardscaping $12
Landscaping $10
Soft Costs 20%
Office $115
Demolition $3
Construction Costs
Development Phasing
1
2
3 3
Development Timeline
• The entire project will take 4 years to complete from preconstruction to the end of the 3rd phase
• Preconstruction will take 1 year, 2 months, and 11 days
• First Phase will take 7 months
• Second Phase will take 9 months and 10 days
• Third Phase will take 9 months and 20 days with a year lag for extra financing to accumulate
Community Benefits
• A distinctive development that will create strong sense of place that the Upper Eastside needs
• An Employment center that will be a centralized HUB near major access points
• A marketplace for locals to sell goods
• A 55th Street Station taken to the next level
Summary
The sum equals the whole: • A place to reside (LIVE)•A place of employment (work)•A place of Enjoyment (Play)•A place to shop/Eat ($$$)Equals a successful Mixed-Usecommunity
top related