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Houston, TX - Riva Place Development

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Major project on Post Oak and Westheimer in Houston. I created and managed the master plan with HOK, Jon Jerde and Rosewood Hotels.

Major project on Post Oak and Westheimer in Houston. I created and managed the master plan with HOK, Jon Jerde and Rosewood Hotels.

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  • 1. 1 Urban Resorts Development, L.P., is committed to a new concept in placemaking that will forever change the way residents, visitors and businesses in major metropolitan centers view life’s possibilities surrounding them. The vision is a bold and powerful one — to blend what is best about upscale multi-use developments in creating a new, world-class paradigm in development — the urban resort. ◆ At a total of two million square feet, the concept is designed to exceed expectations with luxury accommodations, residences and offices at the heart of each planned project. Market-driven amenities including a private club, luxury spa, entertainment and meeting facilities, vacation ownership options as well as fine dining and retail offerings will be woven in, as appropriate, to complement the whole. ◆ While many of these are elements seen in combination before, it is the synergy among the elements, the interaction of a variety of spaces within a stimulating environment and, ultimately, a level of service stemming from key strategic partnering that will create long-term market impact and interest in a given development and its surrounding neighborhood. ◆ This appeal will be used to launch multiple projects in some of the most affluent, dynamic cities in the world. The first will be in Houston, with others under consideration including Miami, Atlanta, Boston, San Diego, London and Berlin. Each is destined to become the new urban icon in its chosen place. THE VISION
  • 2. 2 P R O J E C T E L E M E N T S P R E S T I G I O U S R E S I D E N T I A L C O N D O M I N I U M S (AVERAGING 3,000 SQ. FT.) 220 UNITS F I V E - S T A R , U L T R A - L U X U R Y H O T E L (285,000 SQ. FT.) 175 ROOMS AND SUITES T H E C I T Y C L U B (35,000 SQ. FT.) 500-1000 MEMBERS B O U T I Q U E O F F I C E S (65,000 SQ. FT.) 15-35 UNITS E X E C U T I V E B U S I N E S S & M E E T I N G C E N T E R (10,000 SQ. FT.) 275 GUESTS U P S C A L E R E T A I L S P A C E (60,000 SQ. FT.) BOUTIQUE SHOPS E X Q U I S I T E R E S T A U R A N T S P A C E (60,000 SQ. FT.) 6 RESTAURANTS U N I Q U E E N T E R T A I N M E N T V E N U E (40,000 SQ. FT.) LUXURY SCREENING ROOMS, GALLERIES, MUSEUMS L U X U R Y S P A & W E L L N E S S R E S O R T (30,000 SQ. FT.) 250-500 SHARED MEMBERS (CLUB & HOTEL) C U L I N A R Y A R T S C E N T E R (5,000 SQ. FT.) 5-10 PRIVATE DINING STUDIOS C I R C U L A T I O N , P A R K I N G A N D L A N D S C A P I N G (700,000 SQ. FT.) 1700 PARKING SPACES D I M E N S I O N S O F I N D I V I D U A L E L E M E N T S : 1 3 4 5 6 7 8 9 10 11 2
  • 3. D E V E L O P M E N T T I M E L I N E 3 AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP DESIGN & PERMITTING DEMOLISH EXISTING STRUCTURE UNDERGROUND PARKING & FOUNDATIONS NORTH HOTEL/CONDOMINIUM TOWER SOUTH CONDOMINIUM TOWER ABOVE GRADE PARKING OFFICE RETAIL LOW-RISE OCCUPANCY SOUTH CONDO TOWER HOTEL GRAND OPENING HIGH-RISE OCCUPANCY CONDOMINIUMS 2002 2003 2004 2005 D E V E L O P M E N T S C H E D U L E L O G I C The timeline below represents projected key dates for the development in the Houston market. Design and permitting will continue through early next year with construction expected to begin in spring 2003. The unique and simultaneous phasing of this project allows accelerated early revenue streams on completed components, while others are still under construction. For instance, lower office and retail units within the south tower will be open for occupancy prior to the 2004 holiday season, while hotel and condominium units in the north tower are expected to be complete first quarter 2005. The overall completion date for the entire project is projected for March 2005.
  • 4. 4 F I N A N C I A L S U M M A R Y F I N A N C I A L S U M M A R Y 10-YEAR PROJECTED PROJECTED REVENUE STREAM DEVELOPMENT COSTS RESIDENTIAL CONDOMINIUMS $280 MILLION $189 MILLION FIVE STAR ULTRA-LUXURY HOTEL 334 MILLION 73 MILLION THE CITY CLUB 66 MILLION 16 MILLION LUXURY SPA & WELLNESS RESORT 49 MILLION 11 MILLION RETAIL AND ENTERTAINMENT 55 MILLION 21 MILLION EXECUTIVE BUSINESS & MEETING CENTER 35 MILLION 11 MILLION BOUTIQUE OFFICES 17 MILLION 9 MILLION PARKING AND SECURITY 144 MILLION 23 MILLION TOTAL $980 MILLION $353 MILLION In order to express the true opportunity and value of investing in this new concept in upscale multi- use development, Urban Resorts has developed a full-scale financial model based on solid assessments as to the future costs and revenues when the project is implemented, sold and/or operated. Below is a summary of the financial model prepared for this unique development including the projections for the estimated development costs and 10-year revenue stream. Based on a conservative debt leverage of only 50-60 percent, the project’s return on investment is expected to be in excess of 25 percent.
  • 5. 5 THE TEAM The development team of Urban Resorts Development, L.P., The Jerde Partnership International and Rosewood Hotels & Resorts, along with their consultants, have the experience, the energy and the power to create this newest archetype on the urban scene. Nowhere on the national or international development arena exists such a strong collaboration of highly talented firms capable of ensuring the creation of new urban destinations of choice that simultaneously offer the potential of long-term profitability to their investors. Through the creation of a separate entity, Luxury Partners, LLC, an outstanding investment opportunity exists for those with the vision and boldness to commit to the next generation of urban multi-use developments around the world. URBAN RESORTS DEVELOPMENT, L.P. Spearheading project concept, development and management, the Urban Resorts management team has more than 50 years of combined experience in corporate real estate and capital market activities including for Shell Oil Pension Trust and Prudential Securities. The experience of the firm’s principals, Fenner R. Weller, Jr. and Gene Duckworth, along with Robert Bryant (formerly of Economics Research Associates, Omni Hotels and Pannell Kerr Forster), and James Pancotti (former legal counsel and tax advisor to Shell Oil) ensure that each Urban Resort development is based on sound market-driven positioning and profitability.
  • 6. 6 THE JERDE PARTNERSHIP INTERNATIONAL, INC. Having received accolades worldwide for its unique ability to create humanistic public places, The Jerde Partnership, founded by Jon Jerde in 1977, is recognized as the leader in the art of "Place Making." The Southern California-based urban planning and architectural firm currently is working in 30 different countries on projects that create deliberate and interesting spaces and architecture that deliver on public expectations. Notable projects include Horton Plaza in San Diego, Bellagio and Treasure Island in Las Vegas, Canal City in Fukuoa, Japan, and Hollywood Marketplace in Los Angeles. ROSEWOOD HOTELS & RESORTS The highly acclaimed Rosewood Hotels & Resorts will serve as hotel manager for this project. In 1979, Texas native Caroline Rose Hunt established Rosewood Hotels & Resorts. Her vision was to create a collection of distinctive properties that reflected an operating philosophy called “a sense of place.” Each property embraces this concept through a celebration of its location, culture and history. This is the hallmark of the Rosewood legendary standard. In keeping with Rosewood’s tradition, this project will reflect the philosophy throughout the hotel, spa and City Club. COMMARTS, INC. Based in Boulder, Colorado, the firm has developed a reputation since its inception in 1973 as an expert in solving design problems for people-oriented spaces. The company strives to understand and convey the graphic, virtual and environmental subtleties of each development in a manner that is innovative, effective and appropriate. Clients include AMC Theatres, Gaylord Entertainment Company, Gerald Hines Interests, Simon Property Group, Mills Corporation, The Rouse Company, The Taubman Company and Walt Disney Imagineering. HELLMUTH, OBATA + KASSABAUM (HOK) HOK, the second largest architectural firm in the world, believes as part of its core values that the quality of life can be improved through design and that incorporating sustainability into the design process is paramount and essential. The firm has a deep specialization in mixed-use development, including retail as an integral element, with more than 200 such projects to its credit. Specifically, it is with retail that HOK has consistently provided expertise and stayed abreast of the latest developments in design worldwide. T H E P R O J E C T T E A M
  • 7. 7 T H E P R O J E C T T E A M ECONOMICS RESEARCH ASSOCIATES (ERA) Having completed more than 14,000 consulting engagements worldwide, the California corporation has substantial experience in large-scale land development, destination resorts and hotels, mixed-use projects, as well as retail and university-related development. In the urban arena, the firm has conducted numerous economic-based studies, long-range master plans and research involving growth and development policies. The firm is also a leader in the development of urban entertainment centers. Clients include Walt Disney, Universal Studios, General Motors and Ben & Jerry’s. E.E. REED/BEERS SKANSKA As the general contractor, the combined resources and experience of E.E. Reed Construction, L.C., one of the largest general contractors in Texas, with Beers Skanska, one of the largest contractors in the United States, provides a strong blend of exceptional talent and reputation. Their mastery of the design/assist fast-track construction process and product experience sets them apart from competitors and their geographic diversification will serve as a tremendous asset to the team. As a member of the worldwide Skanska organization, Beers Skanska is able to offer clients unprecedented services and stability by partnering with any affiliate in the Skanska global network to assist clients with international expansion and construction requirements. Notable projects include The Mark condominiums in Houston, Centre at Post Oak in Houston, Bank of America Plaza in Atlanta, The Setai Resort and Residences in Miami, Centennial Olympic Park in Atlanta and Rowes Wharf I in Boston.
  • 8. 8 A B O U T H O U S T O N ◆ Largest petrochemical center in the U.S. ◆ Second in U.S. projected city employment growth through 2025 ◆ Largest international tonnage port in the nation ◆ Fourth largest city in the U.S., after New York, Los Angeles and Chicago ◆ Fourth largest in U.S. cities for foreign investment ◆ Home to the world’s largest medical and health care complex, the Texas Medical Center, treating 4.5 million patients annually ◆ Fourth largest nationally in top office markets ◆ One of the few U.S. markets outside New York and Los Angeles with world- renowned arts organizations spanning opera, ballet, theater, symphony and visual arts ◆ A transportation network served by four interstates and, with three airports, the fourth largest multi-airport system in the nation ◆ Two major convention centers, George R. Brown and Reliant Park, that accommodate more than 37 million visitors to the city each year Luxury Partners, LLC, has selected Houston, the fourth largest city in the United States and one of the fastest growing in the nation, to introduce its first urban resort development concept to the world. Long known as the oil and gas capital of the world, Houston has grown to become economically diverse over the last decade. Industries such as biomedical services and research, aerospace technology, international trade services, insurance and financial services as well as information technology have contributed almost 90 percent of the city’s job growth since 1989 and now account for more than half of the city’s total employment. This economic diversity, along with the continuing expansion and upgrades of transportation systems and infrastructure bodes well for Houston’s future. Houston is a city of promise. More importantly, it is a city with a history of delivering on that promise through continuous efforts by public and private institutions to attract new businesses, celebrate cultural and economic diversity and offer a quality of life that is unobtainable in most other metropolitan markets. It is an ideal setting for a revolutionary new concept in urban development. H O U S T O N H I G H L I G H T S
  • 9. 9 A B O U T U P T O W N H O U S T O N U P T O W N H O U S T O N Uptown Houston is an urban community of exceptional beauty, sophistication and international prominence in the heart of Houston. Anchored by the beautifully-appointed Post Oak Boulevard, it is the home of a thriving business district, acclaimed retail activity including The Galleria, many of Houston’s finest hotels and restaurants and the most prominent residential neighborhoods. Uptown Houston is located five miles from the central business district and within a 15-minute drive to the city’s major employment centers, the Texas Medical Center as well as tourist and arts attractions and centers of higher education. Comparable in feel to New York’s Fifth Avenue or Chicago’s Magnificent Mile, it is an urban area that creates its own energy and will provide the ideal setting for this new concept in placemaking. U P T O W N H I G H L I G H T S ◆ Houston’s leading retail market with more than five million square feet of retail space ◆ One of the top 15 business districts in the nation, with 23.6 million square feet of office space ◆ The premier hotel district in Houston, with 26 hotels and 6,200 rooms, accounting for 25 percent of the city’s lodging revenue ◆ A sought-after residential market, with approximately $457 million in construction valuation for single-family and approximately $261 million in valuation for multi-family permits ◆ Per capita income of $57,120, higher than most affluent neighborhoods nationwide ◆ Uptown Houston generated $248.1 million in local and state governmental taxes in 2000 ◆ Planned and funded infrastructure and mobility improvements, including a $235 million local street program that will dramatically increase mobility within the area
  • 10. 10 A B O U T T H E P R O J E C T RivaPlace will raise the standards in urban living. The serenity and life that water provides binds the public areas into a refreshing, exciting place to gather in Houston. RivaPlace is the city’s new address for style, business and leisure. From its luxury condominiums, vibrant shops, restaurants, and entertainment to its premier City Club, RivaPlace creates a new standard for living smart and living well. In the middle of things certainly, but quietly removed. At RivaPlace, an exquisitely appointed hotel combined with boutique office space creates an entirely new way to envision life, work and play in balance, in the center of Uptown Houston, one of the world’s great urban settings. needs something...
  • 11. W O R L D - C L A S S A R C H I T E C T U R E & D E S I G N As conceived by The Jerde Partnership, RivaPlace will make a bold statement of its own yet complement the world-class architecture that defines Houston. It will transform Post Oak Boulevard from a predominantly vehicular street into an entertainment and cultural catalyst, thereby becoming the centerpiece for the entire neighborhood. By blending classical design in a warm palate of colors with the contemporary, clean look that Uptown Houston is known for, RivaPlace will be marked by an air of casual sophistication and an undeniable sense of place. Twin cast stone and glass towers, one the hotel and the other condominiums, will pierce the sky and be fastened at the street level by an inclined, semi-circular one way avenue, Crescent Drive, onto which upscale shops, restaurants and entertainment venues will face. The tilting plane of the thoroughfare offers a dynamic visual experience, allowing for varied pedestrian and vehicular entrances, fountains and landscaping, and below-ground parking as well as a central courtyard. The change in elevation also affords the hotel’s porte cochere to become the centerpiece of the project. A covered arcade will reinforce the arc of the entry drive and add elegance to the entire complex. Buildings of various types and heights, trellises, signage and graphics will further stimulate the functionality, as well as the form, of this memorable city within a city. A B O U T T H E P R O J E C T 11
  • 12. P L A N O N E ◆ High-end shopping, restaurants, trellised gardens, outdoor cafes and fountains face Post Oak Boulevard ◆ The project transforms environment from primarily vehicular to pedestrian-leisure ◆ Easy access to shops and restaurants from parking ◆ Parking creates an architectural topography for the climbing circulation 1 T H E P L A N S 12
  • 13. P L A N T W O ◆ Drop-off areas for restaurant valet and cinema ◆ Trellised courtyard garden for performances, open markets, outdoor restaurants, and other community events 2 T H E P L A N S 13
  • 14. T H E P L A N S 3 P L A N T H R E E ◆ The Rosewood hotel porte cochere marks the architectural climax for the project ◆ Entertainment, shopping, residential lobby, and restaurants are accessible from both the semi-circular drive and the parking area ◆ Second level offices overlook Post Oak Boulevard and the trellised courtyard 14
  • 15. 4 P L A N F O U R ◆ Day spa and City Club are accessible from the hotel and residential towers ◆ Terraced gardens for relaxation and social events ◆ Secure, private parking easily accessible to the residential towers, day spa and City Club T H E P L A N S 15
  • 16. 5 P L A N F I V E ◆ Rosewood’s hotel and residential towers create an identity for the entire project ◆ The towers command distant views of Houston as well as views of the project’s terracing gardens, trellises, outdoor cafes, courtyard events, pools and fountains T H E P L A N S 16 R I V A P L A C E T O T A L A R E A T A B U L A T I O N (IN SQUARE FEET) Residential . . . . . . . . . . . 703,515 Hotel . . . . . . . . . . . . . . . 255,498 Hotel Back of House . . . . . . 30,680 City Club. . . . . . . . . . . . . . 35,474 Office . . . . . . . . . . . . . . . . 65,427 Retail/Restaurant . . . . . . . 123,544 Theater . . . . . . . . . . . . . . . 30,308 Spa . . . . . . . . . . . . . . . . . 27,349 Parking . . . . . . . . . . . . . . 708,884 Service Dock . . . . . . . . . . . 15,427 T O T A L : 1,996,086
  • 17. 17 P R O J E C T D E T A I L S P R E S T I G I O U S R E S I D E N T I A L C O N D O M I N I U M S Uptown Houston boasts one of the most significant appreciations in home values in Houston, driven by increasing demand for homes close to major employment centers and retail amenities. This trend, especially among high-rise properties, is on the upswing, with several new residential projects currently underway in the neighborhood. According to American Metro/Study Corporation, RivaPlace will benefit from these planned luxury residences. In fact, the development could sustain: ◆ Sales pricing of $350 to $475 per square foot, with units ranging from 2,400 to 3,600 square feet; ◆ Penthouse unit sales of $500 to $550 per square foot; and ◆ Annual absorption rates of 50 to 60 units. 1
  • 18. 18 Housed within the two towers, the 220 units of RivaPlace, a mix of two-, three- and four-bedroom spacious homes configured to suit residents’ preferences, will have views of Houston’s skyline and the resort property’s beautifully landscaped gardens. Serviced by Rosewood Hotels & Resorts, residents will have round-the-clock access to five-star hotel facilities and services including housekeeping, laundry and room service, as well as experienced multi-lingual concierges, doormen, security and valet parking. Residing in elegance with the convenience of top-level services 24 hours a day, upscale shopping and dining within the complex and membership options in the region’s finest club and spa, will create a remarkable incentive for Houston’s most prominent individuals and companies to consider RivaPlace as the “place to be.” E S T I M A T E D U N I T P R I C E Unit % Units Number Size (SF) of Total Price/SF 2 BR 60 2,400 27% $350 2 BR 60 3,000 27% $365 3 BR 65 3,600 30% $400 4 BR + 35 4,200 16% $475 Total/Average 220 3,200 100% $400 P R O J E C T D E T A I L S
  • 19. 19 F I V E - S T A R , U L T R A - L U X U R Y H O T E L In a city that attracts more than 37 million visitors annually, exclusive hotels, surprisingly, are at a premium. Many of those rooms, are located in Uptown. However, lack of available land makes it highly unlikely that many new hotels will be built in the neighborhood. It is expected that the hotel at RivaPlace will be successful in capturing existing demand from current competitors and creating new demand. Under the Rosewood’s strong management, a stabilized occupancy of 71 percent is projected for 2006. The hotel is projected to obtain an average daily rate of $371 in its second year of operation. In keeping with the Rosewood tradition, the hotel will become internationally acclaimed for its superior service and distinctive design. Featuring exquisite furnishings and fixtures in 175 oversized rooms, including 53 suites, the upper levels will contain approximately 100 condominium units, all of which, along with those in the adjacent tower, are for sale. Guest rooms will cater to high-end corporate guests and weekend leisure travelers with a full array of amenities and personalized services. To continue Rosewood’s legacy of fine dining, a 135-seat restaurant will undoubtedly rank among Texas’ finest. In-room dining and catering will be available 24 hours a day. 2 P R O J E C T E D H O T E L O C C U P A N C Y & R A T E YEAR OCCUPANCY RATE2 2004 65% $350 2005 68% $371 20061 71% $390 1 Stabilized year of operations 2 In constant 2000 dollars P R O J E C T D E T A I L S
  • 20. 20 T H E C I T Y C L U B Club membership is key to the overall marketing initiative and success of RivaPlace as a whole. As a vital component, it will allow members of one city location to use the facilities and services in all other cities in which the club is represented. Modeled after Rosewood’s venerable Crescent Club in Dallas, The City Club will be reminiscent of the renowned, private clubs of 19th century Europe and will be viewed as the best club in the city and region it serves. Members and guests will enjoy the finest privileges, dining and meeting facilities, amenities and unprecedented service within the surroundings of exotic woods, handcarved marble and stone, as well as subtle lighting, fresh flowers and delicate linens. Complete state-of-the-art health and fitness equipment and training will be available. An indoor swimming pool, steam and sauna facilities for men and women, a running track and recreational facilities, such as indoor tennis, squash, racquetball and basketball courts, will be available on premises. With an expected membership of approximately 500-1000 affluent individuals and families, use of all facilities will be restricted to members and, under certain circumstances, to hotel guests and tenants of the complex. An initiation fee will be charged and membership will be incumbent upon payment of annual dues. P R O J E C T D E T A I L S 3
  • 21. 21 B O U T I Q U E O F F I C E S Known as an international center for commerce, Houston has the fourth largest business district in the U.S. and was recently ranked nationally as the city with the second highest number of Fortune 500 companies. Therefore, Houston sets the stage for continued economic growth and as an ideal place to locate an office. Geared to cater to key decision makers, board members and Fortune 100 companies, the boutique offices at the RivaPlace will provide the privacy, security, comfort, elegance and convenience that its tenants desire. In addition, the unique combination of residential condominiums, offices and retail options will make working and living at RivaPlace convenient and desirable to many. It will encompass a total of approximately 65,000 square feet of office space at an average of about $50 per square foot. The tower will host anywhere from 15 to 35 units with office space ranging from 2,000 to 5,000 square feet. All facilities will feature access to technologically advanced services, as well as being armed with the highest security and safety applications available. Tenants and employees will have access to the executive business and meeting center and the nearby parking facility as well as valet parking services. RivaPlace’s highly professional management staff will always emphasize a strong concern for and commitment to the happiness and security of its tenants. Located along one of Houston’s most celebrated streets, Post Oak Boulevard, the offices at RivaPlace will be considered “the place to be” because of its close proximity to hundreds of shopping, dining and hotel destinations. In addition, its unique central location will provide convenient access for clients and business travelers to major freeways, other business centers and both of Houston’s major airports. P R O J E C T D E T A I L S 4
  • 22. 22 P R O J E C T D E T A I L S E X E C U T I V E B U S I N E S S & M E E T I N G C E N T E R In addition to a fully equipped business center within the hotel itself, fifteen of its rooms will be executive suites and meeting rooms specially designed to meet the needs of international business travelers and key decision makers. Each room will be oversized with proper lighting and acoustics and feature a small office-like area with a fax machine, computer, Internet service and phone system. With a built-in meeting room and the latest in technological and audio visual capabilities, it will serve as a self-contained learning and meeting environment for the executive and his/her counterparts that is private, highly secure, quiet, comfortable and elegantly appointed. The hotel also will feature approximately 10,000 square feet of additional meeting space with a 2,700-square-foot executive meeting area for larger, private gatherings of 30 to 50 people. While smaller in scale than what is currently available in the market, the configuration of executive business suites and meeting rooms will be specified by market demand and staffed by the highest-quality personnel available. 5
  • 23. 23 U P S C A L E R E T A I L S P A C E With an international mix of sophistication, style and elegance, Uptown Houston is a world-renowned center for retail. Its success as a shopper’s fashion paradise is attributed not only to the high quality and diversity of its retail mix but also to the spending power of its visitors. RivaPlace will reinforce this legacy with the addition of upscale boutiques, spanning more than 60,000 square feet. Based on the commitments of various internationally recognized retailers, RivaPlace’s marketplace will feature retailers such as Hermes, Chanel, Prada, Cartier and Gianni Versace. Each retail store within the complex will be built to purpose for each tenant, ranging from 4,500 to 9,000 square feet per store, and will lease at an average of $34 per square foot*, which at stabilization is at or above the highest rates in the area. 6 P R O J E C T D E T A I L S *Base rent upon which a negotiated percent of gross revenues would be applied.
  • 24. 24 E X Q U I S I T E R E S T A U R A N T S P A C E Uptown Houston is the premier dining and entertainment area of Houston. It offers a variety of casual, fine and family dining to meet a wide variety of tastes and interests. To top off this tradition, RivaPlace will feature six of the most exquisite and delectable dining the region has ever experienced. Possible well-known restaurateurs might include Emeril’s and Wolfgang Puck’s Spago. Hotel guests, residents and executives will be able to savor the convenience of starting off their day or evening with the finest cuisine at a trendy and upscale restaurant, a charming bistro, an outdoor cafe or simply at the corner coffee shop, which are all just a step away. Restaurant space within the marketplace will be built to purpose for each tenant, ranging from 6,500 to 12,000 square feet per unit, and will lease at an average of $32 per square foot.* U N I Q U E E N T E R T A I N M E N T V E N U E Houston is one of the few markets outside New York and Los Angeles with world-renowned art organizations. However, the majority of these activities and venues are located in other parts of the city. With more than 40,000 square feet of planned entertainment space, RivaPlace will help bring the arts to Uptown. The complex might encompass a regional or national art gallery or luxury screening rooms, or serve as a small theatrical arts venue. 7 8 P R O J E C T D E T A I L S *Base rent upon which a negotiated percent of gross revenues would be applied.
  • 25. 25 L U X U R Y S P A & W E L L N E S S R E S O R T With a focus on treatments designed to maximize strength, appearance, mental acuity and spiritual balance, the spa & wellness resort at RivaPlace will truly personify the urban retreat concept of the project. Discreetly situated within the complex, the 30,000-square-foot facility will spare no detail in providing a proven regimen to body health. This luxury resort will be a serene escape from the everyday worries of the city, offering a wide variety of service and activities to pamper and relax its guests as never before. In addition, expert trainers will oversee personal workouts and instruct dance, aerobics and yoga. Available to members of the community for an initiation and annual membership fees, participation will be extended to hotel guests at appropriate daily, monthly or annual rates. Spa services, offered in conjunction with the hotel, will be priced and packaged based on specific purposes, such as weight loss, dietary considerations and fitness features. Another favorite amenity will be the Spa Café, featuring a full array of healthy alternatives. P R O J E C T D E T A I L S 9
  • 26. 26 P R O J E C T D E T A I L S C U L I N A R Y A R T S C E N T E R In a city well known for its great love of food and its broad array of exquisite and original dining options, a strong focal point of RivaPlace will be food – whether it is an upscale restaurant within the open marketplace or Rosewood’s 135-seat fine dining establishment. To create a truly unique sense of place and reinforce the importance of the finest cuisine, Urban Resorts, in partnership with Rosewood Hotels and Resorts and a world-renowned culinary learning institution, will set the standard for higher-end food in Houston with the development of the Culinary Arts Center. Food enthusiasts and students looking to advance their skills will travel from all over the world just for the weekend or for a longer, more intense session to learn the art of fine dining as well as how to prepare the finest cuisine, taught by signature, nationally renowned chef instructors. The center also will be known for cultivating new talent within the culinary arts by hiring top students graduating from other established institutions and providing them with opportunities within RivaPlace to share and flourish their talents. The 5,000-square-foot center will be designed to meet the needs of its students and chefs with five to 10 private dining studios. Each studio will include a kitchen with leading-edge technology and an adjacent dining area/classroom. The center’s programs will be based on a hands-on approach to experiencing and learning the culinary arts. The high standards set forth by the Culinary Arts Center will carry through to all of the other aspects of RivaPlace, making it a haven for the very best in food and dining in the region. 10
  • 27. P R O J E C T E D C A S H F L O W & R E T U R N S R I V A P L A C E P R O J E C T F I N A N C I A L S U M M A R Y (In Thousands of US Dollars) INFLATION INDEX 3.0% 1 1.03 1.06 1.09 1.13 1.16 1.19 1.23 1.27 1.30 1.34 1.43 1.43 TIMELINE -2 -1 1 2 3 4 5 6 7 8 9 10 11 R E V E N U E Hotel $0 $0 $22,320 $24,752 $27,167 $28,609 $30,153 $31,057 $31,989 $32,949 $33,937 $34,955 $36,004 Condominium $0 $0 $97,425 $87,450 $55,125 $39,525 $0 $0 $0 $0 $0 $0 $0 City Club $0 $0 $5,027 $5,511 $5,553 $5,998 $5,760 $5,933 $6,111 $6,294 $6,483 $6,677 $6,878 Spa and Wellness $0 $0 $3,617 $4,135 $4,681 $4,097 $4,220 $4,346 $4,477 $4,611 $4,749 $4,892 $5,039 Retail and Entertainment $0 $0 $4,961 $4,961 $4,961 $4,961 $4,961 $4,961 $4,961 $4,961 $4,961 $4,961 $4,961 Executive Business and Meeting Center $0 $0 $2,002 $2,234 $2,478 $2,661 $2,848 $2,933 $3,112 $3,400 $3,827 $4,437 $5,298 Boutique Offices $1,584 $1,584 $1,584 $1,584 $1,584 $1,584 $1,584 $1,584 $1,584 $1,584 $1,584 Parking and Security $0 $0 $6,707 $8,795 $11,323 $13,218 $13,614 $14,023 $14,444 $14,877 $15,323 $15,783 $16,256 TOTAL REVENUE $0 $0 $143,643 $139,421 $112,872 $100,652 $63,139 $64,837 $66,676 $68,675 $70,864 $73,288 $76,019 C O S T O F G O O D S S O L D Hotel $0 $10,604 $11,759 $12,906 $13,206 $13,919 $14,336 $14,766 $15,209 $15,666 $16,136 $16,620 Total Cost of Goods Sold $0 $10,604 $11,759 $12,906 $13,206 $13,919 $14,336 $14,766 $15,209 $15,666 $16,136 $16,620 O P E R A T I N G & F I X E D C O S T S Hotel $0 $17,300 $19,184 $21,056 $20,931 $22,060 $22,722 $23,403 $24,106 $24,829 $25,574 $26,341 Condominium $0 $15,026 $8,749 $5,516 $3,956 $4 $4 $4 $4 $5 $5 $0 City Club $0 $3,794 $3,972 $4,067 $4,242 $4,290 $4,419 $4,551 $4,688 $4,828 $4,973 $5,122 Spa and Wellness $0 $1,979 $2,313 $2,665 $2,745 $2,827 $2,912 $2,999 $3,089 $3,182 $3,278 $3,376 Retail and Entertainment $0 $1,439 $1,439 $1,439 $1,439 $1,439 $1,439 $1,439 $1,439 $1,439 $1,439 $1,439 Executive Business and Meeting Center $0 $1,413 $1,576 $1,749 $1,760 $1,883 $1,940 $2,058 $2,249 $2,531 $2,934 $3,503 Boutique Offices $0 $214 $214 $214 $214 $214 $214 $214 $214 $214 $214 $214 Parking and Security $0 $5,701 $7,475 $9,625 $11,235 $11,572 $11,919 $12,277 $12,645 $13,025 $13,415 $13,818 TOTAL OPERATING FIXED COSTS $0 $46,865 $44,921 $46,331 $46,522 $44,290 $45,569 $46,946 $48,434 $50,052 $51,831 $53,813 N E T O P E R A T I N G I N C O M E Hotel $0 $0 $5,021 $5,568 $6,111 $7,679 $8,093 $8,336 $8,586 $8,843 $9,109 $9,382 Condominium $0 $0 $82,399 $78,701 $49,609 $35,569 ($4) ($4) ($4) ($4) ($5) ($5) City Club $0 $0 $1,233 $1,540 $1,486 $1,756 $1,470 $1,514 $1,559 $1,606 $1,654 $1,704 Spa and Wellness $0 $0 $1,638 $1,822 $2,016 $1,352 $1,393 $1,434 $1,477 $1,522 $1,567 $1,614 Retail and Entertainment $0 $0 $3,953 $3,953 $3,953 $3,953 $3,953 $3,953 $3,953 $3,953 $3,953 $3,953 Executive Business and Meeting Center $0 $0 $589 $657 $729 $901 $964 $993 $1,054 $1,152 $1,296 $1,503 Boutique Offices $0 $0 $1,278 $1,278 $1,278 $1,278 $1,278 $1,278 $1,278 $1,278 $1,278 $1,278 Parking and Security $0 $0 $1,006 $1,319 $1,698 $1,983 $2,042 $2,103 $2,167 $2,232 $2,298 $2,367 TOTAL NET OPERATING INCOME $0 $0 $97,117 $94,839 $66,881 $54,470 $19,189 $19,608 $20,070 $20,581 $21,151 $21,797 C A S H F L O W S — A F T E R C A P I T A L E X P E N D I T U R E , D E B T S E R V I C E & R E V E R S I O N ) Hotel $0 ($29,072) ($334) $152 $635 $2,166 $2,542 $2,762 $2,989 $3,223 $3,463 $67,962 Condominium $0 ($28,034) $48,809 $52,949 $21,616 $18,360 ($17,212) ($4) ($4) ($4) ($5) ($5) City Club $0 ($6,457) $42 $337 $282 $540 $261 $300 $341 $383 $427 $10,839 Spa and Wellness $0 ($4,387) $824 $995 $1,175 $526 $563 $602 $642 $683 $725 $12,506 Retail and Entertainment $0 ($8,537) $2,446 $2,446 $2,446 $2,446 $2,446 $2,446 $2,446 $2,446 $2,446 $32,449 Executive Business and Meeting Center $0 ($4,468) ($198) ($136) ($70) $97 $156 $183 $239 $329 $463 $13,613 Boutique Offices $0 ($3,637) $646 $646 $646 $646 $646 $646 $646 $646 $646 $2,457 Parking and Security $0 ($9,290) ($669) ($401) ($75) $169 $14,270 $273 $327 $383 $440 $499 Total Cash Flow $0 ($93,880) $51,565 $56,988 $26,655 $24,951 $3,672 $7,208 $7,625 $8,088 $8,605 $140,320 TOTAL CUMULATIVE CASH FLOW $0 ($93,880) ($42,315) $14,673 $41,328 $66,279 $69,951 $77,158 $84,783 $92,871 $101,477 $241,797 R E T U R N O N P R O J E C T E L E M E N T S DEVELOPMENT COSTS IRR Hotel $72,680 13% Condominium $188,530 160% City Club $16,141 9% Spa and Wellness $10,967 24% Retail and Entertainment $21,341 34% Executive Business and Meeting Center $11,170 ($767) Boutique Offices $9,092 15% Parking and Security $23,225 9% COMPLETE PROJECT $353,146 38% 27
  • 28. 28 T H E O P P O R T U N I T Y One secret of success in life is for a man to be ready for his opportunity when it comes. — BENJAMIN DISRAELI “ ” Luxury Partners, LLP offers the opportunity to invest in a breakthrough urban development concept that anticipates a more than 25 percent rate of return from its initial $353 million project. The vision and boldness of the initiative are inherent. The project team, with impeccable credentials, is in place. The market analysis and financial projections tell the real story. Thank you for your consideration.