Proposal for Roebling Redevelopment

670 South Clinton Avenue Trenton, NJ 08611

Prepared by:

Kleber Palacios

John Caruso

Nick Gareffa

Jamie Malikie-Freda

Matthew Englehardt

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Table of Contents

1) Executive Summary

a) Objectives

b) General Assumptions

2) Site Overview

a) Explanation of Subject Property

b) History of Subject Property

c) Location Analysis

3) Greater Trenton Summary

a) Trenton 250 Master Plan

4) Trenton Demographics

5) Area Advantages

a) Business Community

6) Our Concept

a) Summary

7) Concept Plan

8) Buildings Overview

i) Building No. 51

ii) Building No. 52

iii) Building No. 54

iv) Building No. 57

v) Building No. 58

vi) Building No. 62

9) Construction

a) Summary

b) Construction Costs

c) Building Construction Costs

d) Site Construction Costs

e) Total Construction

10) Sustainability

11) Potential Funding Sources

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Executive Summary

Our team's primary objective will explore a proposal for the highest and best use for a mixed-use

redevelopment project located at Roebling Block 2 (Block/Lot: 15704/1 &1.02) 670 South

Clinton Ave., Trenton, New Jersey which is approximately 8 acres. The sites use will potentially

be maximized by using its rich and unique historic buildings, where The Roebling Company

produced key elements to some of the world’s most fascinating bridges. With the goal being to

revitalize Trenton’s community by creating, “Trenton Makes Art”, a Premier Economic and

Cultural Center Build of Arts, Industry, and Education. Block 2 has been out of commission

since 1974, and an analysis of the highest and best use has been executed to determine the most

feasible investment in the current market for the redevelopment of this specific site to occur. Our

team has determined that our redevelopment concept will be an artist focused community in a

combination of mixed-use development featuring 68 apartment units totaling 69,100 SF with

97,780 SF of retail and 25,200 SF of office space which would garner the least risk and greatest

return from the market, and for our investors. The following proposal will be described in more

detail with the specific elements of this mixed-use development project.

Objectives

Enhance the reputation of Trenton

Attract investors

Retain and secure prospective (residential/commercial) tenants

Create positive public awareness

Efficient project development/effective development management

Environmentally sound and sustainable construction

Produce positive cash flows for investors

Serve as a catalyst for surrounding real estate

Preserving the architectural and historic significance of the area

General Assumptions

No environmental issues exist on the site

Assuming land costs will equal $1

All zoning variances will be granted pertaining to site

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Site Overview

670 South Clinton Ave

Trenton, NJ 08611

Explanation of Subject Property

Roebling site block 2 is laid out over an 8-acre parcel of land that consists of six primary

buildings once used for industrial manufacturing of suspension wires for bridges globally. Block

2 itself is zoned as mixed use, but has four surrounding streets that differ from that. To the north

of block 2 lies Hudson St., which is zoned as residential. This is the same scenario (residential)

for Mott St., which lies to the west of block 2. To the south of block 2 lies S. Clinton Ave. which

also fronts Roebling site block 1 and consists of commercial/retail. To the east of block 2 is a

parking lot used for US Social Security Administration (state) workers.

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History of Subject Property

Founded in 1849 by John A. Roebling, the designer of the Brooklyn Bridge, the Roebling

Company was internationally known for producing suspension wires used to construct some of

the world’s most infamous bridges such as the Brooklyn Bridge, George Washington Bridge, and

Golden Gate Bridge. In 1974, operations at the 45 acre Trenton facilities (Blocks 1,2,3) ceased

operations, and Block 2 has remained vacant ever since. As for the adjacent Blocks (1 and 3),

Block 1 is a completed project that has been renovated and operating since the late 1990’s, while

Block 3 has started their leasing of the eventual 190 luxury lofts on Block 3 as of the beginning

of this month (3/1/17). Other uses of the once vacant buildings throughout sites 1 and 3 include

commercial/retail strip centers, senior housing, luxury apartments, and public use space.

Location Analysis

The site is located in the Eastern portion of the Roebling Complex Redevelopment Area which

encompasses the site of the former Roebling Company and is in a proposed food and cultural hub

designated location as of the Trenton 250 Redevelopment plan. It’s bordered by a mix of uses

including The Sun National Bank Center which holds up to 10,000 people only a couple blocks

away. The NJ Transit Light Rail River Line, is no more than two blocks away that takes you

straight to the Trenton Transit Center which serves as a hub to three of the main rail lines of NJ

and Bus Center hub as well. The Transit Center is only 0.6

miles away from the property and serviced an average of

1,200 passengers per day in 2016 making it a prime

location to reach various destinations linking Mercer

County, the Greater Delaware Valley Area, Bucks County,

Philadelphia, Camden, Newark, New York City, Boston,

and Washington, D.C.

The property is fairly close as well in proximity to major

highways such as the I-95 NJ Turnpike, I-195, Route 1,

and Route 129. This is a key element in having a variety

of access points to reach our destination from our patrons

and tenants.

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Greater Trenton Summary

Greater Trenton is an independent 501c-3 nonprofit organization that plans to use private

funding and a network of collaborative relationships to advance economic revitalization efforts

in the state’s capital city. CEO, Founder and Trenton native, George Sowa, brings his successful

30+ years of real estate development experience back to where his family history originated.

Since founding Greater Trenton in 2015, Sowa’s objective is to bring back a positive cultural

reputation to Trenton and expand on what the state capital has to offer.

Trenton 250 Master Plan

The Trenton 250 Master Plan is a comprehensive plan that provides a long-range vision for the

community and a guide for the state capital from now to year 2042, the 250th Anniversary of

City’s incorporation. The Master Plan is a detailed outline for the vision of Trenton, goals for

accomplishing that vision, and various tactics and actions to achieve those goals to revitalize the

true meaning of the slogan, “Trenton Makes-The World Takes”.

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Trenton Demographics

Trenton New Jersey National

Population 84,459 8,874,374 314,107,084

Median Age 33.5 39.3 37.4

Caucasian 26.6% 69.61% 74.17%

African American 52.0% 13.50% 12.56%

Asian 1.2% 8.37% 4.81%

American Indian 0.7% 0.25% 0.82%

Native Hawaiian .01% 0.03% 0.17%

Mixed Race 4.1% 2.37% 2.68%

Other Race 15.3% 5.88% 4.79%

Hispanic or Latino 33.7% 19.0% 17.60%

Median Home Price $113,100 $319,900 $175,700

Median Rentals $991 $1,188 $920

Renter Occupied

Households

62.0% 35.0% 35.60%

Income per Capita $17,021 $36,359 $28,555

Median Household

Income

$35,647 $72,062 $53,482

Median Income Renter

Occupied

$23,072 $47,106 $36,116

Median Earnings Male $21,756 $47,106 $36,116

Median Earnings

Female

$23,346 $32,292 $25,692

Unemployment Rate 11.40% 10.70% 5.80%

Poverty Level 28.40% 10.70% 15.60%

** All statistics found areavibes.com**

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Area Advantages

Trenton is a city that has its own distinctive advantages that distinguishes itself from the rest of

American history in its own way through the motto “Trenton Makes, The World Takes”. Trenton

once was an industrial powerhouse for the state of New Jersey, as well as its impact worldwide.

Block 2 of the Roebling sites is an 8-acre site that has a surrounding area that correlates with the

history that once took place in the city. With the majority of these buildings being on the

waterfront, Trenton has many historical sites to offer such as the New Jersey State Museum,

which includes a planetarium, art, and historic exhibits; the Old Barracks Museum, dealing

primarily with the revolutionary war; the 1719 William Trent house, being the oldest house in

Mercer County; and the New Jersey State House, being the 3rd

oldest state house in the country,

while holding offices for the Governor and both chambers of the Senate and General Assembly.

Already Block 2 fronting the avenue of South Clinton, holds the Roebling Market Place a

successful strip center with various tenants. The site has a huge advantage while only being 0.6

miles away from the Trenton Transit Center which gives access to New York City in

approximately an hour and 15 minutes. Also, Philadelphia only being 34 miles away is

accessible from the Trenton Transit Center by a quick train ride. Along with these transportation

surroundings, Trenton also has its own airport, Trenton-Mercer Airport, which is used heavily by

the commercial airliner Frontier. This commercial airline travels to most airports throughout the

entire country.

The site is advantageous and extremely attractive to potential long term tenants because it is

available for a tax abatement, offsetting corporate taxes up to ten years. This is a great way to

attract new growth and incentives to promote business development and local job growth.

Companies that would not have thought about relocating before now will be enticed to due to the

proximity of Mass Transit access to the location which will broaden their accessibility to new

employees.

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Business Community

To become a place where people want to live, work and shop, Trenton must reshape the image

that many people grasp that is associated with the state capital. With a stable and slowly growing

economy, Trenton could be the next ideal real estate location to be revitalized as per the Trenton

Master Plan by the year 2042. According to the U.S. Census 1- year estimates, Trenton has seen

an increase in most job sectors from 2005 to 2011. Increases came from sectors such as:

education, health care, professional, and social assistance. However, Trenton did see a decline in

several sectors: transportation, warehousing, and retail trade. Trenton is an ideal location,

because it’s at the center of two vastly populated cities, New York City and Philadelphia.

With the location that Trenton has to offer, employers and individuals can benefit with the

relatively low commercial and housing prices, and the proximity to the two major cities. In an

article published by NJ.com, Mayor Eric Jackson stated that the city’s renaissance rests on four

pillars: a decrease in crime, improvements to the public schools, an increase in economic

development, and growth of the arts and culture. And of the four pillars, the city must rely

heavily on economic development to be the foundation of revitalization of Trenton, and the rest,

a domino effect.

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Our Concept

Our concept is to bring “Trenton Makes Art”, a Premier Economic and Cultural Center Built on

Arts, Industry, and Education into Trenton by preserving the Roebling buildings into many new

opportunities which fit directly with Trenton 250 Master Plan. In the Trenton 250 Master plan,

Block 2 has a proposed redevelopment idea for the zone called the Roebling Center

Redevelopment Plan Zone (RPZ-2). While this location is considered a Priority Investment

Neighborhood where it will be a focal point of main attraction. As stated in the Roebling Center

Redevelopment Plan Zone (RPZ-2), “Redevelopment of the structures and millyards should

bring new residential opportunities, as well as commercial and restaurant offerings, and office

space, bringing jobs to the surrounding neighborhoods and Trenton as a whole.” We will be

doing just that by giving the community a location where we incorporate Chambersburg’s

greatest assets which are location, demographic, and history. Using our Art District concept to

enhance the area’s vibrancy and cultural richness to support neighborhood retail and support

growth of “Home-Grown” Businesses and immigrant entrepreneurs.

First Floor Layout

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Second Floor Layout

Third Floor Layout

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Building Overview

Building No. 51

Building No. 51 is one of the seven pre-existing buildings which has been most recently

renovated for office space to be utilized for a prior project that was in place. Our proposal for

this 2-story building is ideally suitable for a museum to acknowledge the step-by-step process

that took place at the John. A. Roebling Wire Works. Through 11,988.76 sq. ft. the museum

would depict the precise operations that took place in the making of the suspension wires. This

idea would inform the use of the 54 acre factories that were the leading producer of wire rope in

the early 1900’s, with 8,000 employees at its peak, inspiring the motto: “Trenton Makes, the

World Takes’.

Building No. 52

At roughly 5,246.70 sq. ft. this

freestanding building will be used to

complement the surrounding

buildings with the purpose of serving

as a common area where visitors may

unwind after visiting the museum or

gallery exhibits. Using this building

as a canopy/open recreational space,

students involved in the Arts Trade

Organization we propose as tenants,

will have a place to congregate with

peers as well as network with other

artists in the industry. This structure

will also be ideal to serve as an area

that can be rented out for private

banquets and parties. Though the

structure will be open 24/7, as

preparations of the winter would

include space heaters as well as a

drop down translucent tarp.

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Building No. 54 (Commercial Floor, 1st)

The 1st floor of building 54 will be the dominant structure of the redevelopment project, as well

as the main provider of an income stream. Implementing an anchor tenant that will draw

consumers to the building, along with six commercial spaces. These spaces will be rentable

varying from as low as 2,500 to as high as 27,000 square feet.

● We will be proposing a ethnically diverse restaurant at 9,300 Sq. Ft.

● A local café/lounge will include a spacious unit dedicated for “peaceful” and “cozy”

cafe-style lounge at 2,700 sq. ft. that will have a vibrant atmosphere for both residents

and invitees.

● A “fast-casual” style restaurant will be located in the unit in the bottom right corner of the

building adjacent to the coffee shop and art-living lobby entrance. A prospective tenant

for this particular unit would be the chain restaurant Chipotle Mexican Grille, with a

space size of 3,800 square feet.

● 2 Retail spaces will be available for rent, 2,500 and 3,200 sq. ft., which can be built to

suit retail segments including: Home Center/hardware stores, and apparel/hard line

specialty stores (books, clothing, office products, toys, home goods, electronic).

● A large anchor tenant in the available 27,000 sq. ft. space will be well suited for tenant

such as: Walgreens or CVS. The idea for a drugstore in this particular area would be

beneficial to the community while supporting the growth of the neighborhood due to the

demand of incoming population needs.

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Building No. 54 (Residential Floor, 2nd)

The second floor of building 54 will be dedicated to work-living lofts to incentivize artists by

providing a living space as well as a featuring courtyard along the single-corridor of the second

floor. The concept behind the work-living for art is to inspire the neighborhood to recognize the

arts as an essential to the community through health and vitality. Through these concepts

revitalizing Roebling and bringing the culture back to Chambersburg will build up and serve

individual artists, art organizations, and creative entrepreneurs. The arts will encourage citizens

to participate/get involved with the arts, culture, and creativity and recognize it as an everyday

lifestyle. As per the size of the second floor consisting of 52,154 sq. ft., we propose a plan to

build:

● 33 loft units -

1,100 sq. ft./each

● Courtyard -

~10,000 sq. ft.

The following work-

living lofts will consist

of a ground footage of

750 sq. ft. and a partial

half floor of 350 sq. ft.

for a grand total of 1,100

sq. ft. This allows for

potential artists to work

freely and spaciously in

order to create their

individual unique pieces

of art. As far as rent prices, approximately $1000/month is the set price for the artist plus

commission charged by the land owners which has a monthly minimum sales requirement from

the artwork sold in the Gallery in Building No. 57. We decided to introduce a commission

between 10-20% of the sale price on all artwork sold due to the low rent prices offered to the

artist and a way for the owner to be re-compensated for the low rent price, as well as an incentive

for the artist to be able to sell their work at a much lower rate than most other galleries will

charge that ranges from 30-50%.

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Building No. 57 (Gallery/Arts Floor, 1st)

Building No. 57 located off Mott Street will consist of two uses on the ground floor. Our team

has planned to dedicate 10,180 square feet for an Art Gallery, as a space for major exhibitions

and/or a rental space for private events. As Roland Pott, President of Trenton Makes, Inc. stated

“Demand for studio space by artists are rising in the city” therefore were providing a modern

space for all artist to have a foundation to establish a forefront of “Trenton Makes Art.” As for a

prospective landlord of the Gallery, our team has implemented a commission rate on the artwork

created by the artists living in the work-living lofts in Building No. 54 as another source of

income.

The arts will be a way to engage the public through the visualization process, while experiencing

a different aspect of culture through the vibrant atmosphere a Gallery has to offer. This would

allow the work-living artist to proudly display his/her creations which will be available to the

public for sale. The other half of the first floor will consist of the concept “For the Arts”. This

will provide the community with a series of creative and inspiring arts, music, and performance

based events such

as educational

programs which

would be hosted

by emerging

artists/arts

organizations. A

proposed concept

will be an art

organization as a

tenant that

connects with the

local community,

including nearby

universities, to

influence the

general public to

participate in arts,

culture, and

creativity as part

of everyday life.

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Building No. 57 (Office Floor, 2nd)

As for second floor of Building No. 57,

our proposal includes the entire floor

being dedicated to office space. The

space includes a rentable office size of

25,200 square feet. With simple

ingress/egress off Mott Street and

through the entrance of “Trenton Makes

Art”, the suitable office space is easily

accessible for potential employees and

employers. As well as the proximity to

local and mass transit, the space offers

tax abatements for potential employers.

Building No. 58

Building No. 58 will be solely residential. The building is composed of 3 stories and has a total

square footage of 41,820. This building will contribute to the income stream because its

availability to the public whereas the lofts in building 54 focuses strictly on work-living for the

artists. We proposed a plan to offer 2 styles of apartments,1 bedroom and 2 bedrooms:

35 total units

-23 units of 1 bedroom

-800 sq. ft./ room

-12 units of 2 bedrooms (Located at

each corner on each floor)

-1,200 sq. ft./ room

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Building No. 62

For this particular building, we decided to collaborate with the Trenton 250 Master Plan for the

area of Chambersburg which plans to revitalize the culture and food hub of Trenton. Our

proposal includes two separate uses for the 34,486 sq. ft. building. For the most northern section

that faces Mott Street, we plan to establish a Marketplace featuring small spaces that build on the

“Local Entrepreneur and growth of

Home-Grown Businesses” as per

the Trenton 250 Plan. The

Marketplace would be a year round

Marketplace for area grown

produce, specialty products, and

where Trenton Makes Art residents

and visitors can find fresh, seasonal

food from the Tri-State. The

Marketplace 14 local farmers,

fishers, and bakers selling items

such as fresh produce; meat and

poultry; eggs; milk and cheese; fish

and shellfish; bread and baked

goods; beverages; flowers; and a

variety of specialty foods. All items

sold at the market place would be

produced or originate from the tri

state area.

● The Marketplace total

footage would be

-19,650. Sq. ft.

● 14 vendor units

-900 Sq. ft. each unit.

To grasp an understanding of what

the Marketplace will resemble, we

referenced the shops at Faneuil Hall

in Boston, MA.

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As for the remaining portion of Building No. 62, we propose an industrial-style restaurant

that goes along with the theme of the building. The total rentable space for the restaurant is

14,000 square feet. The “manufactured authenticity” features an upscale experience people want

with the trendy industrial look of exposed bulbs, bare brick and concrete that perfectly correlates

with the millennial demographic we are trying to captivate.

Construction Summary

We will be restoring all of the seven buildings on site. We are keeping the structure for each of

buildings on the condition that they are suitable for redevelopment. The only new development

being added to the site will be infrastructure such as: sewage, lighting, power supply. As well as

additional parking for residents, employees and invitees of Trenton Makes Art.

Construction Costs

Land Cost $- $-

Hard Costs $96.00 sf $23,513,712.72

Site Work $12.00 sf $2,939,214.09

Soft Costs $13.00 sf 3,184,148.60

Financing $8.00 sf $1,959,476.06

Total Development Cost $31,596,551.47

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Detailed Construction per SF.

Building 51

(Museum,2Floors)

1st Floor 5,994.38 sf

2nd Floor 5,994.38 sf

Total Building 11,988.76 sf

Building 52 (Canopy/Open

Space)

Total Building 5,246.71 sf

Building 54 (Main Building,

2 Floors)

1st Floor

Anchor Tenant 27,652.00

Restaurant 9,520.00 sf

Coffee Shop 2,704.00 sf

Fast Casual 4,160.00 sf

Retail 1 2,548.00 sf

Retail 2 2,548.00 sf

Stairwell Main

Entrance

771.80 sf

Total, 1st Floor 49,903.80 sf

2nd Floor

Apartments, 90% of

Total

46,939.39

Hallway, 10% of Total 5,215.49 sf

Total, 2nd Floor 52,154.88 sf

Total Building 102,058.68 sf

Building 57 (Gallery/for

Arts/Office

1st floor

Gallery 10,558.92

For Arts 12,671.09

Lobby 2,112.17 sf

Total, 1st Floor 25,342.18 sf

2nd floor sf

Total, Office Space 25,342.18 sf

Total, Building 50,684.36 sf

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Building 58 (Residential)

Tenant Space 36,423.00 sf

Hallways/Common

Area

4,047.00 sf

Total, Building 40,470.00 sf

Building 62 (Restaurant/Marketplace)

Rentable Space (14

Total)

12,600.00

Common Area 2,810.00

Hallway of Common

Area

4,240.00

Total Marketplace

Area

19,650.00

Restaurant 14,836.00

Total, Building 34,486.00 sf

Total Project Area 158,388.36 sf

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Net Leasable Area

Leasable Area SQ. FT.

Building 51 (Museum) 1st Floor 0.00

2nd Floor 0.00

Building 52 (Canopy) Open Space 0.00

Building 54 (Mixed Use, 2 Floors)

1st Floor

Anchor Tenant 27,000.00

Restaurant 1 9,300.00

Coffee Shop 2,700.00

Fast Casual 3,800.00

Retail 1/Top Right 2,500.00

Retail 2/Under Top Right 3,200.00

Total, 1st Floor 48,500.00

2nd floor

Total Lofts, 2nd Floor 36,300.00

Building 57 (Gallery/For Arts/Office)

1st floor

Gallery 10,180.00

For Arts 12,500.00

Lobby 0.00

Total, 1st Floor 22,680.00

2nd Floor

Total Office, 2nd Floor 25,200.00

Building 58 (Residential)

Living Space (12) 2

bedroom units

14,400.00

Living Space (23) 1

bedroom units

18,400.00

Total, Building 32,800.00

Building 62 (Restaurant/Marketplace)

Rentable Space (14 Total) 12,600.00

Total Marketplace 12,600.00

Restaurant 2 14,000.00

Total Project Square

Footage

192,080.00

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Lease Income and Operating Expenses

Rental Rates unit/sf Annual Rents

(12) 2 Bed $1,350.00 unit $194,400.00

(23) 1 Bed $1,145.00 unit $316,020.00

(33) Lofts $1,000.00 unit $396,000.00

Vacancy (5%) $(45,321.00)

Residential Subtotal $861,099.00

Rent/SF

Restaurant 1 $14.00 sf $130,200.00

Restaurant 2 $14.00 sf $196,000.00

Fast Casual $15.00 sf $57,000.00

Coffee $15.00 sf $40,500.00

Anchor $13.00 sf $351,000.00

Retail 1 $15.00 sf $37,500.00

Retail 2 $15.00 sf $48,000.00

Gallery $12.00 sf $122,160.00

For Arts $12.00 sf $150,000.00

Office $10.00 sf $252,000.00

Marketplace $12.00 sf $151,200.00

Commercial Subtotal $1,535,560.00

Total Income $2,396,659.00

Operating Costs

Residential 5% of Gross Residential Revenue ($54,385.20)

Commercial 6% of Gross Commercial

Revenue

($92,133.60)

Total Expenses $146,518.80

Net Operating Income $2,250,140.20

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Sustainability

Sustainability: Everything that we need for our survival and well-being depends, either directly

or indirectly, on our natural environment. To pursue sustainability is to create and maintain the

conditions under which humans and nature can exist in productive harmony to support present

and future generations.

At 670 S Clinton, we plan to obtain a LEED certification. LEED stands for Leadership in Energy

and Environmental Design, is a certification program focused primarily on new, commercial-

building projects and based upon a points system. The more points you earn, the higher your

rating. Acquisition of an LEED status can require significantly higher upfront expenditure but

also may yield massive cost savings over time in the form of state and local tax breaks.

LEED certification ensures that the project is a healthy, energy efficient, and sustainable place to

live. Included in the construction costs will are materials such as: Ultra-efficient HVAC systems

to thermal windows, built-in LED work lighting to low-VOC finishes, and solar panels placed on

the roofs of buildings: 54, 57, and 58.

Potential Funding Sources

As per USEDA funds for this site, potential funding include:

● State Grant for Roebling

● Economic Development Trust Funds

● USEPA Assessment Grant Funds

● New Jersey Hazardous Discharge Site Remediation Funds

● Community Development Block Grant Funds

The site is available for all of the funds listed above, however does not include Federal Historic

Tax Credit because the following site is not listed on the National Historic Register of Historic

Places.

● A 20% income tax credit is available for the rehabilitation of historic, income-producing

buildings that are determined by the Secretary of the Interior, through the National Park

Service, to be “certified historic structures.” The Internal Revenue Service defines

qualified rehabilitation expenses on which the credit may be taken. Owner-occupied

residential properties do not qualify for the federal rehabilitation tax credit.