Peter porraro, Multifamily Development Today

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Peter porraro, Multifamily Development Today

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Peter porraro, Multifamily Development Today

  1. 1. ULI Spring 2012 TOD DevelopmentWest Hempstead, Long Island
  2. 2. West 130 – TOD Case Study• Market Analysis - Market Area; Demand Factors; Supply Factors• Site Selection• Land Use and Zoning• Product Design and Site Plan• Financing and Investment• Construction
  3. 3. West 130MARKETING ANALYSIS
  4. 4. Long Island Regional Map• Starts just 18 miles east of Manhattan• Two Counties – Nassau (287 square miles) & Suffolk (911 square miles)• Extensive public transportation network (LIRR)• 1,180 miles of shore-line
  5. 5. Rental Housing - MetricsLong Island DemographicsPopulation: 2.8 millionTotal Employment: 1.2 millionUnemployment: 7.2%Average HH Income: $175,000MF Rental Completions2006 1,0162007 -2008 -2009 226 84% of existing rental housing stock was built prior to 1979 (REIS)2010 -2011 210 Source: Long Island Housing Index 2007; REIS Report 2011
  6. 6. West 130SITE SELECTION
  7. 7. Site Acquisition• 1960’s Hotel• “Hourly Hotel”• Source of crime• Community eyesore
  8. 8. West 130 Location Map
  9. 9. Site Aerial
  10. 10. Rail and Bus Network •Station literally outside front door • 50 minutes to Penn Station
  11. 11. West 130LAND USE AND ZONING
  12. 12. Benefits to Community• Permanent Closure and Elimination of the Courtesy Hotel and source of crime/blight• New, Distinctive Gateway to West Hempstead• Creation of Sense of Place: with Attractive Building, Enhanced Streetscape, and Sidewalk Improvements• New Choice of Upscale Apartment Living• Catalyst for Further Redevelopment and Community Improvements• Revitalization of West Hempstead LIRR train station• Generate a positive trend in neighborhood real estate values• Set example of a Public / Private Collaboration
  13. 13. TimelineEntitlement TimelineMarch 2006 Purchase ContractNovember 2006 Submit Rezoning ApplicationNovember 2008 SEQR Approval (State Environmental Quality Review)December 2008 Adoption of CA-S Zone & Rezoning ApprovalJune 2009 Site Plan ApprovalJuly 2009 IDA Inducement (PILOT)October 2010 Building Permit ApprovalFebruary 2011 Close and Start Construction
  14. 14. Entitlement Process
  15. 15. West 130PRODUCT DESIGN/SITE PLAN
  16. 16. Project Description Building ProgramSize: 3 AcresDensity: 50 units per AcreBuilding Type: 5A Construction 4-story over 2 levels parkingUnits: 150 Market RateMix: 1 Bedroom: 35% 2 Bedroom: 57% 3 Bedroom: 8%Average Unit Size 1,085 SFAmenities: 4,000 SF Clubhouse; Fitness Center; I-lounge; Café; Wii- theatre; Landscaped Courtyards and Pool
  17. 17. Floor Plan
  18. 18. Underground Parking Garage
  19. 19. West 130FINANCING ANDINVESTMENT
  20. 20. Project Cost SummaryUnits 150Cost Item Total Per Unit Per SF• Hard Cost: $28, 500,000 $190,000 $175• Land/Soft Cost: $15,500,000 $103,333 $ 53• Total Costs: $44,000,000 $293,333 $228Average Rent/SF: $2.46Average NSF: 1,085Average Rent/Home: $2,670
  21. 21. CapitalizationUnits 150 Dollar % of Total Per UnitCategory Amount CostDebt Total Construction Debt: $28, 500,000 65% $190,000Equity Total Equity: $15,500,000 35% $103,333Total Capitalization $44,000,000 100% $293,333 Un-TrendedYield on Total Project Cost: 8.0%+Market Cap Rates: 4.75%
  22. 22. West 130CONSTRUCTION
  23. 23. May 2011
  24. 24. May 2011
  25. 25. May 2011
  26. 26. November 2011
  27. 27. November 2011
  28. 28. August 2011
  29. 29. February 2012
  30. 30. April 2012
  31. 31. Vision Long Island Smart Growth Award Recipient

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