uli hines competition 2011: transitional town center development pro forma
DESCRIPTION
TRANSITional Town Centre proposed a transformation from low-density suburbia to an entrepreneurial nucleus and car-free community for Mount Baker Station in Seattle, Washington. Given an underdeveloped neighborhood bisected by the very busy Rainier Avenue, our design sought to create a town center with sufficient density to create a transit hub. Reflecting the very diverse community, we designed a pedestrian-oriented market street that could support a night market. This would create a sense of place, a destination for transit users, and an identifiable public space to bring together neighbors from both sides of Rainier Ave.TRANSCRIPT
2011 ULI Hines Student Urban Design Competition Team Summary Board1
1. Summary Pro Forma Team 2301
Year 0 Phase I Phase II PhaseIII Phase IV Phase V
2011-2012 2013 2014 2015 2016 2017 2018 2019 2020 2022
Net Operating Income
-$ -$ -$ 958,768$ 1,523,089$ 2,808,565$ 6,191,589$ 10,723,352$ 14,465,884$ 19,284,479$
-$ -$ -$ 82,070$ 132,836$ 222,512$ 507,156$ 894,912$ 1,203,338$ 1,604,298$
-$ -$ -$ 847,649$ 1,269,444$ 2,277,359$ 3,011,317$ 3,425,537$ 3,537,204$ 3,771,643$
Affordable Retail -$ -$ -$ 38,961$ 73,629$ 176,591$ 243,569$ 305,009$ 316,066$ 339,391$
-$ -$ -$ 355,179$ 570,406$ 834,160$ 1,002,230$ 1,039,355$ 1,952,142$ 2,607,203$
-$ -$ -$ 71,440$ 103,017$ 313,485$ 361,970$ 386,246$ 397,834$ 422,062$
-$ -$ -$ 2,354,067$ 3,672,421$ 6,632,674$ 11,317,832$ 16,774,411$ 21,872,468$ 28,029,076$
Development Costs
-$ 10,258,807$ 10,566,571$ 37,490,268$ 63,689,876$ 44,700,338$ 40,828,664$ 22,030,956$ -$ -$
-$ 1,209,285$ 1,245,564$ 4,165,585$ 7,076,653$ 4,966,704$ 4,536,518$ 2,447,884$ -$ -$
-$ 6,758,651$ 6,961,411$ 6,143,559$ 7,317,290$ 1,019,107$ -$ -$ -$ -$
-$ 3,084,534$ 3,177,070$ 2,073,718$ 2,135,929$ -$ 7,298,464$ 7,517,418$ -$ -$
-$ 1,352,925$ 1,393,512$ 2,395,117$ 2,466,971$ -$ -$ -$ -$ -$
Demolition -$ 280,197$ -$ 522,469$ 679,237$ 632,748$ 284,831$ -$ -$ -$
Bus Loop Land 1,510,212$ -$ -$ -$ -$ -$ -$ -$ -$ -$
1,510,212$ 22,944,398$ 23,344,127$ 52,790,715$ 83,365,956$ 51,318,897$ 52,948,477$ 31,996,258$ -$ -$
Annual Cash Flow
-$ -$ 2,354,067$ 3,672,421$ 6,632,674$ 11,317,832$ 16,774,411$ 21,872,468$ 28,029,076$
Total Asset Value -$ -$ 35,620,035$ 55,574,793$ 100,220,190$ 171,974,992$ 255,811,542$ 333,206,692$ 442,782,361$
-$ -$ 1,068,601$ 1,667,244$ 3,006,606$ 5,159,250$ 7,674,346$ 9,996,201$ 13,283,471$
1,510,212$ 22,944,398$ 23,344,127$ 52,790,715$ 83,365,956$ 51,318,897$ 52,948,477$ 31,996,258$ -$ -$
Net Cash Flow -$ -$ 2,354,067$ 3,672,421$ 6,632,674$ 11,317,832$ 16,774,411$ 21,872,468$ 457,527,966$
Debt Service 572,128$ 1,628,365$ 3,432,209$ 6,909,564$ 9,935,189$ 12,984,378$ 15,245,168$ 16,125,396$ 16,702,796$
Unlevered Net Present Value @10% 8,900,277$ 455,428$
Loan to Value Ratio (LVR) 75%
Unleverd IRR Before Taxes 10.84% Current Site Value (start of Year 0)
Levered IRR Before Taxes 23.76% Projected Site Value (end of Year 10)
Year-by-Year Cumulative Absorption
Total Buildout 2013 2014 2015 2016 2017 2018 2019 2020 2022
Project Buildout by Development Units
(units) 0 0 81 107 292 505 745 946 1,086
(units) 0 0 9 12 32 56 83 105 121
(units) 0 0 17 17 46 46 46 46 46
(units) 0 0 7 7 20 20 20 20 20
(spaces) 0 0 169 169 452 452 452 452 452
Project Buildout by Area
(s.f.) 0 0 94,669 126,226 343,629 593,503 875,952 1,111,628 1,276,718
(s.f.) 0 0 10,519 14,025 38,181 65,945 97,328 123,514 141,858
(s.f.) 0 0 93,636 93,636 165,961 180,286 180,286 180,286 180,286
Affordable Retail (s.f.) 0 0 8,829 8,829 23,842 23,842 23,842 23,842 23,842
(s.f.) 0 0 31,125 31,125 50,849 50,849 50,849 114,377 114,377
(s.f.) 0 0 50,779 50,779 135,514 135,514 135,514 135,514 135,514
(s.f.) 0 0 289,557 324,620 757,976 1,049,939 1,363,771 1,689,162 1,872,595
Market-rate Rental Housing
Affordable Rental Housing
Infrastructure Costs
Roads
Utilities
Other Hardscaping (not incl. surf. pkg.)
Landscaping
Other Amenities
Total Infrastructure Costs
Total Development Costs
Financing Assumptions: Construction Costs:
Construction Loan Terms Hard Costs/Ft Soft Costs/Ft
- 75% Loan-to-Cost, 6.0% interest only, 36 month term, and full-recourse Rental Housing 139.68$ 13.54$
Permanent Loan Terms Retail:
- 75% Loan-to-Value, 5.5% interest, 30 year amortization, 10 year term, and non-recourse Anchor Tenants 111.76$ 7.40$
Ground Floor 117.01$ 12.33$
Market Assumptions: Institutional/Educational 168.03$ 18.79$
Lease Rates Vacancy Rate Yearly Absorption Cap Rate Structured Parking 48.23$ 2.00$
Rental Housing $ 1.72 (NNN) 5.00% 172 (units) 6.50% Total Equity Requirements by Ph Total Development Cost by Ph
Retail: Phase I $13,585,685 Phase I
Anchor Tenants $ 17.9 (NNN) 4.00% 20,776 (sf) 6.50% Phase II $30,061,225 Phase II
Ground Floor $ 29.78 (NNN) 4.00% 15,895 (sf) 6.50% Phase III $15,984,868 Phase III
Institutional/Educational $ 25.67 (FS) 0.00% 19,063 (sf) 7.00% Phase IV $13,380,852 Phase IV
Structured Parking $80 (per space) 25% 90 (spaces) 8.00% Phase V $16,404,054 Phase V
8. Development IRRs By Phase
Phase I
Phase II
Phase III
Phase IV
Phase V
7. Development Space and Use Distribution (sf)
46,288,526$
$63,992,516
$41,695,876
$61,150,481
$105,581,431
Leveraged Net Present Value @23.5%
5. Assumptions 6. Debt and Equity Uses
1,557,571$
-$
412,034,484$
155,192,516$
442,782,361$
Market-rate Rental Housing
Structured Parking
Institutional/Educational
Market-rate Retail
-$
2021
18,577,087$
Market-rate Retail
327,522$
Market-rate Rental Housing
Affordable Rental Housing
Affordable Rental Housing
Market-rate Rental Housing
-$
-$
2,514,176$
Affordable Rental Housing
Institutional/Educational
Retail (ALL)
Total Net Operating Income 27,038,657$
-$
Total Development Costs -$
Structured Parking -$
46
23,842
Net Operating Income
Total Costs of Sale 12,361,035$
Total Development Costs -$
27,038,657$
27,038,657$
16,702,796$
2. Multiyear Development Program
2021
1,086
121
Affordable Retail 20
Structured Parking 452
1,276,718
141,858
Market-rate Rental Housing
Affordable Rental Housing
Market-rate Retail 180,286
Institutional/Educational 114,377
Structured Parking 135,514
Total 1,872,595
3. Unit Development and Infrastructure Costs 4. Debt and Equity Sources
Development Costs Unit Cost Total Costs Amount Percent of Total
($ per unit) 216,980$ Equity Sources
($ per unit) 218,179$ Joint Venture Equity 20.4%
($ per s.f.) 138$ 11.5%Retail (ALL)
($ per s.f.) 221$
Debt Sources
Institutional/Educational
Development Site Land Contribution 43,456,549$
Structured Parking ($ per space) 25,362$
Conventional Loan 64.7%
LIHTC Financing (@ 50% AMI) 1,916,886$ 0.5%
Public Private
6,240,000$ 1,083,851$
New Market Tax Credits 977,772$ 0.3%
9,240,000$ -$
-$
3,652,532$
409,769$
-$
1,932,041$
245,143,826$
$77,278,151
2.7%
Public Subsidies
Do not include public costs 324,331,168$ Total 378,827,496$ 100%
-$ 1,096,235$
-$
15,480,000$ 4,112,126$
Tax Increment Financing 10,054,312$ -$
Market Rate Rental Housing, 1,276,718, 68%
Affordable Rental Housing, 141,858,
Institutional/Educational, 114,377, 6%
Market Rate Retail, 180,286,
10%
Affordable Retail, 23,842, 1%
Structured Parking, 135,514,
7%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%Unlevered IRR Levered IRR