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MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
MIT Competition PPT
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MIT Competition PPT

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  • 1. Penn CommonsAn Integrated, Complete Community on DC’sIconic Monumental Boulevard
  • 2. SubjectPropertyNational Mall andMonumental LandmarksVerizon Center/7th StreetEntertainment CorridorHines City Center(Under Construction)Federal Triangle/Trump’s PostOffice Hotel (Planned)UnionStationIntroduction Site Context Project Overview Financing Strategy Return Analysis Conclusion[Site Location and Surrounding Uses]
  • 3. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion0123456782013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2Space Scheduled to be Available (Million SF)OFFICEHOTELMULTIFAMILY RETAILClass A Ground-Up Officeis rare in downtownDC, especially east of theWhite HouseThe nearest grocerystore serving thecommunity is a 22minute walk awayEmerging micro-unitconcept highly desiredby young professionalsDemand for hotelspace on the NationalMall remains strong2002503003502010 2011 2012 2013 2014 2015Average Daily Rate (Historical and Projected)4%5%5%6%6%7%7%8%8%9%9%Vacancy in Downtown DC0100020003000400050006000700080002011 2012 2013 2014 2015 2016Change in Supply vs. Change in Demand
  • 4. Introduction Site Context Project Overview Financing Strategy Return Analysis ConclusionLink Downtown with the National MallCreate a Vibrant Mixed UseDevelopment, Particularly SupplyingAdditional Housing in the Downtown DCAreaEnhance Public Space and PedestrianWalkability by Reducing Block ScaleConstruct D Street, the Paper StreetRunning East to WestProvide a Commemorative Public Space[Master Plan Recommendations]
  • 5. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion[Proposal]ResidentialMultifamily(IncludingMicro-Units)SignatureOffice SpaceHotel inPrime DCLocation
  • 6. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion[Project Connectivity]RetailConnectionsProgrammed Public SpaceConnections
  • 7. Introduction Site Context Project Overview Financing Strategy Return Analysis ConclusionNorthern Anchor – GroceryStore Draws LocalsSouthern Anchor – HooverTower Draws TouristsD Street Pedestrian StreetArchway Design Allows 160Foot HeightPublic Space Allowsfor Seasonal EventsCapital Bikeshare StationNear MetroUse of Crowdsourcingfor Small Retail[Big Ideas]
  • 8. Introduction Site Context Project Overview Financing Strategy Return Analysis ConclusionMicro-Units135,108 Sq Ft359 Units328 Market31 Affordable UnitsMultifamily699,676 Sq Ft879 Units805Market74 Affordable UnitsHotel214,291 Sq Ft225 Keys20,495 Sq Ft MeetingSpaceOffice672,937 Sq FtRetail147,885 Sq Ft1,796,841 Total Sq Ft[Stacking Plan]
  • 9. [Entitlements Strategy]Existing Zoning Proposed ZoningC-4/DD D-6-B-110.0 FAR (Min 2.0FAR Residential)8.5 NonresidentialFAR; No Cap onResidential10% AffordableHousing Set-Aside8% AffordableHousing Set-Aside160 ft/110 ft Heights 160 ft/110 ft HeightsParking:1 per 4 Resi DUs1 per 1,800 Office sf1 per 8 Hotel Keys1 per 3,000 Retail sf(25% Reduction Dueto Metro Proximity)No MinimumParkingRequirementsIntroduction Site Context Project Overview Financing Strategy Return Analysis ConclusionStrategy: Seek entitlements justbefore FBI vacates space.Proposed DC ZoningRegulations should be adoptedand will provide beneficialrequirements (Noparking, higher FAR, lower set-aside)
  • 10. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4[Project Schedule]EquityRaiseBuyLease Existing Building to FBIBegin Architecture and Engineering FeasibilitySecureDebtLease Office, Retail, Residential; Secure Hotel Flag and Operator, CrowdsourcingDemolition and ConstructionOpen and StableSaleEntitlementsIntroduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
  • 11. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion1. Team 26 will serve as developer and will provide 10 percent of theequity2. Partner with a sovereign wealth fund or pension fund to provide theremaining 90 percent of the equity3. Together, we will seek debt financing commitment of 65percent oftotal project costs at a 5.5 percent interest rate[Deal Structure]
  • 12. [Development Costs]Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
  • 13. Introduction Site Context Project Overview Financing Strategy Return Analysis ConclusionProject Cash Flowlow and Sensitivity Analysis[Cash Flow]Summary of Project Cash flowYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102014 2015 2016 2017 2018 2019 2020 2021 2022 2023Acquisition Price -$110,000,000Development Cost (Less Rent) -$40,619,644 -$17,450,447 -$33,117,411 -$148,836,162 -$274,171,877 -$141,002,680Building 1 $2,020,294 $5,782,963 $5,931,758 $6,084,401Building 2 -$4,246,515 $5,789,818 $11,979,182 $12,412,309Building 3 -$14,175,231 $11,354,178 $17,031,035 $20,128,966Building 4 $1,632,259 $19,842,620 $24,377,859 $24,996,684Building 4 Hotel $11,085,868 $11,929,736 $12,399,268 $13,175,747Reversion (less cost of sale) $1,280,263,964NCF -$150,619,644 -$17,450,447 -$33,117,411 -$148,836,162 -$274,171,877 -$141,002,680 -$3,683,325 $54,699,315 $71,719,102 $1,357,062,070NPV $697,460,960IRR 11.6%Owner Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102014 2015 2016 2017 2018 2019 2020 2021 2022 2023Acquisition Price -$110,000,000Development Cost (Less Rent) -$40,619,644 -$17,450,447 -$33,117,411 -$72,984,375 $0 $0Building 1 $2,020,294 $5,782,963 $5,931,758 $6,084,401Building 2 -$4,246,515 $5,789,818 $11,979,182 $12,412,309Building 3 -$14,175,231 $11,354,178 $17,031,035 $20,128,966Building 4 $1,632,259 $19,842,620 $24,377,859 $24,996,684Building 4 Hotel $11,085,868 $11,929,736 $12,399,268 $13,175,747Debt Service -$29,848,493 -$29,848,493 -$29,848,493 -$29,848,493Mortgage Repayment -$519,104,233Reversion $1,280,263,964NCF -$150,619,644 -$17,450,447 -$33,117,411 -$72,984,375 $0 $0 -$33,531,819 $24,850,821 $41,870,609 $808,109,343NPV $555,460,257IRR 15.0%
  • 14. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion[Returns and Waterfall]
  • 15. Penn CommonsAn Integrated, Complete Community on DC’sIconic Monumental BoulevardIntroduction Site Context Project Overview Financing Strategy Return Analysis Conclusion

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