“osborne” synergy chandan singla: kyungwon kim : sean lee : vipasha dasgupta market research o...
TRANSCRIPT
“Osborne” synergy
Chandan Singla: Kyungwon Kim : Sean Lee : Vipasha Dasgupta
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Market Research
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
USE DEMAND RENT INFORMATION
Apartments 500 $3 – 3.5 / Month
Highest rent - $62/3 housing- rental
Condominium 250 units – 1BR1000 units – 2 BR
$ 500-600 psf Pipeline – 1500North point- 2700
Office 100,000 sf/ yr $ 50-55 psf-gross
Advantage- Proximity to MIT, Housing, Synergy
R& D Labs 200,000 sf/yr $ 60-75 psf-gross
Sound ,Stable Market Agglomeration
Hotel 300-400 rooms ADR $200-300 No pipeline for next 3 yrsHigh demand for midscale and extended stay
Retail 50000 sf $ 40 – 50 psf Cater to the adjacent uses
MIT Requirement
USES PRESCRIBED INFORMATION
ACADEMIC, RESEARCH, TEACHING, COMMUNITY SPACE
600,000 SFPhasing 2011-2015
CONFERENCE FACILITIES 1000 PARTICIPANTS
PERFORMING ARTS CENTER 36,000 SF
GRADUATE HOUSING 500 Beds – 1 BR, 2 BR
MIT Museum , Zeta Psi Fraternity Relocated
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
OUR PROGRAM
USE REQUIRED PROVIDED
ACADEMIC, COMMUNITY
600,000 SF 450,000 + 30000 SF
FACULTY HOUSING 92 Units- 92000
STUDENT HOUSING 500 BEDS 480 , Phased
PERFORMING ARTS 36,000 SF 36000 SF
APARTMENTS 500 units 560 units
CONDOMINIUMS 1000 + 250 units 223 units
OFFICE 100,000 sf/yr 503500 sf , Phased
R&D LAB 200,000 sf/yr 515200 sf , Phased
HOTEL 300-400 rooms 400 rooms
RETAIL 50,000 sf 43,700 sf, Phased
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
FAR
• Program Summary
• FAR: 3.52 (including Shire building), otherwise 3.12
USES: % of total GSFMarket
Absorption Phasing
Office 19% 503,500 300,000 sf/yr 2 (60:40)
Retail 1.61% 43,700 50,000 sf 2 (40:60)
Hotel 7% 190,000 300-400 rooms 1 (100)
R&D-Lab 19% 515,200 200,000 sf/yr 2 (70:30)
Residential 18% 475,830 500 2 (70:30)
Faculty&Student Housing 7% 188,000 500 beds 1 (100)
Academic 18% 486,800 - 2 (70:30)
Affordable 3% 83,970 - 2 (70:30)
Condos 8% 223,200 220 units 1 (100)
Total 100% 2,710,200
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Financial Analysis
• Assumptions
• [email protected]% : $325 million
USES: Ann Gross Rent Market rate
Office $50.00 Psf $40 – 50 psf
Retail $45.00 Psf $35 – 45 psf
Hotel $200.00 ADR $200 – 300 ADR
R&D-Lab $65.00 psf $60 – 75 psf
Residential $40.00 psf $30 – 36 psf
Faculty&Student Housing $40.00 psf - psf
Academic $40.00 psf - psf
Affordable $10.00 psf - psf
Condos $700.00 Per unit $500 - 600 per unit
* Terminal cap rate: 7.0%
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Deal Structure
• Forms of entities
– MIT holds the ownership of the land– For sales properties, MIT has the first right of purchase & refusal after
75 years of time period (for lease properties, 10 years)– Equity partner and the development split returns pari passu until they
reach 12% of the hurdle rate. After that, they go 50:50 for promote Within LLC, MIT and developer split 90:10.
Developer MIT
LLCEquity Partner
$345 M
The project
Cash: $20 M Land: $325 M
Equity: 35%
Debt : 65%
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
DESIGN CONCEPT
• SYNERGY– Weaving the development in the fabric of the
community– Be sensitive to the community – since MIT is
a partner to the Cambridge communities– Create a vibrant community
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Neighborhood
RESIDENTIAL
R&D & RETAIL
TECH SQUARE, MARRIOT
INSTITUTIONAL
OFFICES & RETAIL
R&D
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Retail gateway --
Subway exit /People/Retail/Food court
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Community - Residential
Achieving a height which mirrors the residential neighborhood
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Office district with Mass Av address
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Shadow Study 9am
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
3 -d
Shadow Study 1 pm
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Shadow Study 5 pm
MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN
Thank you