Melody Station- Executive Summary

The Nexus of Rhythm and Harmony

Executive Summary
-Project Overview
-Location
-Background
-Partners/Consultants
-Investment Highlights
--Market Overview
-Development Overview
Market Analysis
-Market Snapshot
-Market Segments
-Market Saturation
-Office
-Multi-family
-Reconciliation
Property Description
-Scope of Project
-Municipality & Zoning
-Long Range Plan
-Area Map
-Campus Office
-Multi-family
-Schematic Floor Plan
-3-5 Short term Site Plan
Site Analysis
-Property information
-Utilities
-Zoning
-Access Limitations
-Due Diligence
Conclusion
-Project Summary
-Exhibits
I
Melody Station by BMR Development Group
Financial Analysis
-Financial Salient Facts
-Project Economics
-Rent Roll
-Multi-Family Cash Flow

“Melody Station,” a mixed-use transit-oriented
development, connecting you to your preferred
lifestyle. It is located adjacent to American Fork’s
new transportation hub - where I-15, Pioneer
Crossing, and UTA FrontRunner converge.
Melody Station is oriented around Williamson Park,
a 2.5 acre park with an amphitheater. The park will
be surrounded by multi-family housing, corporate
campus for a single user, and in phase II
complementary office, townhomes, and single
family homes on the southern portions of the
development. Retail will be constructed in Phase
III.
Sustainable principles have been maximized to
create a walkable master planned mixed-use
development. Melody Station uses new urbanism
planning strategies that creates long-term
sustainability and a sense of place.
Residents will enjoy the direct connection to open
space at Williamson Park and amphitheater. While
future employees can utilize mass transit and take
a break in the park. Melody Station is an urban
center for residents and neighbors through open
space, arts in the park, and a vibrant mix of
commercial and retail services.
Melody Station is strategically located at the junction
of I-15, UTA FrontRunner station, 200 South, and the
future Vineyard Connector in American Fork, Utah.
This location is the junction for American Fork,
Saratoga Springs, and Eagle Mountain.
2
Site AnalysisExecutive Summary Market Analysis Property Description Financial Analysis
Frontrunner
Station
I-15
Interchange
The Meadows
Pioneer Crossing
Project Overview Location

3
Phase I comprises of three parcels which total 36.15
acres. The three parcels are owned by three different
parties. The site is currently zoned residential-
agriculture 5. The land is currently under the
jurisdiction of Utah County. However, American Fork
City has shown the parcels in their general land use
plan as Transit-Oriented Development (TOD) which
allows for higher density and greater flexibility of uses.
Melody Station is proposing a multi-family density
between 30-35 units per acre.
The development and timing of future products was
thoroughly analyzed. The goal of future phases is to
enhance the current product and create synergy
between other real estate products (create a sense of
place).
Background

4
Partnerships/Consultants
Mary Street- Cushman & Wakefield
Bret Mackay- DLM Development
Williamson Family
Kent & Jen Paulson- American Fork Residents
Allen Argyle- ICO, Commercial
Brandon Rypien- Urban Planner, Layton City

5
The Multi-family market has grown substantially
over the past 5 years. Financing for this type of
product is favorable with bankers due to low
vacancy rates around 5% and increasing rent rates.
Current average rent rate is at a 10 year high
according to EquiMark- Multi-family Investment
Services, January 2013 report of the Greater Salt
Lake area.
Melody Station is capitalizing on the opportunity to
participate in the market. Melody station is looking
for a LTV of 65%, interest rate 5%, with an
amortization of 25 years, and a loan fee of 1.5%.
Melody Station is looking for an equity investor for
28% of the total development cost. This project
yields a unlevered IRR of 7.9% and levered IRR of
18.7%.
Investment Highlights

6
Market Overview
Utah- Improved economic climate. Values for all product types
increased in 2012. Investment sales at end of 2012 over $800
million. Which is a 27% sales volume increase from 2011.
Utah County- Positive absorption in all sectors. Added 8,000 new
jobs in 2012 equal to a 4.3% increase.
Regional and Location Analysis:
Industrial-Regional market analysis shows that the old Geneva Rock
site is better suited for this type of product.
Office- The office market had the most dramatic change during
2012. Cap rates lowered by 95 basis points. The office market is very
saturated with newly constructed buildings at Thanksgiving Park,
several large complexes under construction (Traverse Ridge Center),
and in the pipeline (Perry Homes Office Park, Thanksgiving
Commercial Center).
Retail- Vacancy dropped to 8.2% from 11.8% in 2011. Outlets at
Traverse Mountain 250,000 SF recently opened November 2012.
The Meadows 739,000 SF is adjacent to the site on the east side of
I-15. The Terrace at Traverse Mountain is 117 acre site in Lehi.
Thanksgiving Point has proposed retail pads as well. The retail
market is saturated in the market area.
Multi-family- Vacancy rate is 3.2% in Utah County (EquiMark).
Rental rates are at 10 year high. American Fork has no multi-family
under construction per BEBR, Utah Construction Report.

7
• Multi-Family 288 units,
3 story, Garden Style
(light yellow)
• Corporate Campus
Office 152,000 SF,
Anchor (dark blue)
Development Overview
• Williamson Park &
Amphitheater (Joint
Venture w/ City)
• 2-Class B Office
Buildings (light blue)
• Townhomes & Single
Family Residences
• 2 Restaurant Pads
(light red)
• Additional Offices
(light blue)
• Further Residential
expansion
• 2 Additional
Restaurant Pads
• Additional Office on
west side of
Vineyard Connector
and north side of
200 South
• Sports Complex-
Baseball and soccer
fields
Phase I Phase II Phase III Final Phase

Utah- Population 2,855,287 (2010 Census) and
2030 population projection is 3,772,042. Average
household size 3.1.
The growth of Utah continues to outpace the U.S.
During the same period the U.S. grew by 0.5%
compared to Utah at 2.3%. Job growth is steady at
3.1%. The Utah economy added 37,800 jobs over
the past 12 months (by the end of 2012).
Unemployment rate is 5.1%, and the national
average is 7.8%. A third of the population is
bilingual.
The state of Utah has several competitive
advantages such as low tax rates and a young,
highly educated work-force (median age 29.2,
youngest in the nation).
In 2012 there was positive absorption in all product
types.
Utah County- Population 540,504 (2012 est.) and
2030 population projection of 833,101. Positive
absorption in all sectors. Added 8,000 new jobs in
2012 which was an increase of 4.3%. Household
growth 2010 to 2030 is 2.47%. Highest household
size in Utah 3.24. Employment (2020) 329,383.
8
Market Snapshot Primary Market Area
The northern portion of the county has experienced
rapid development with Adobe and Xactware
constructing new corporate campuses.
American Fork- Population 27,147 (2012).
Projected 2030 population 39,635 (2.5% increase
per year). Median household income is $68,725.
Persons per household 3.49%. Homeownership rate
is 78.2% with just 11.7% in multi-unit. Total housing
units 7,598 (2011).

Utah Overview-Total Sales Volume $812,827,367.
Total SF 5,381,566. Total Units 6,531. Total Number
of Transactions 156.
Utah County
Industrial- Through the market analysis process it
was determined that Industrial would not serve the
highest and best use. The old Geneva site located
south of the site is better equipped to support this
type of development. Also, this is not the desire of
the city.
Retail- The retail market is very saturated currently
and there are multiple retail projects just completed
and in the pipeline. Therefore, retail is not being
proposed at this time in the project until there is
support for such product.
The Meadows is adjacent to Melody Station on the
east side of the I-15 and has 739,000 SF of retail.
Outlets at Traverse Mountain in Lehi just recently
opened, and The Terrace at Traverse Mountain will
have117 acres of retail at build out. Lehi Pointe will
have 160,000 SF retail. Also, Thanksgiving Point
has large retail pads for future development.
9
Market Segment Snapshot
Office- There are several large Class A Office
complexes recently completed, under construction,
and in the pipeline. Thanksgiving Park has 700,000
SF, with building 3 of 140,000 SF currently under
construction. Traverse Ridge 138,000 SF under
construction with a total of 400,000 at build out.
Traverse Mountain 1.5M SF in the pipeline. Lehi
Pointe has 385,000 SF. Perrry Homes Office Park
in pipeline 400,000 SF.
Therefore, because of market saturation it is
proposed that a tenant looking for a Corporate
Campus, build to suit would be the highest and
best use for Melody Station’s office component.
Solarwinds is currently looking for a Corporate
Campus, so this could be a potential tenant to
anchor the site. The long range plan is to build
supportive office surrounding the Corporate
Campus.
Multi-family-The vacancy rate for Utah County is
3.2% per Equimark, indicating additional absorption
is possible in the market. Rent growth is 4.6%.
When rent growth occurs and vacancies remain
below 5%, there is market share to be captured.

10
Market Saturation Overview

Corporate Campus Office- The office market is
very saturated with newly constructed buildings at
Thanksgiving Park, several large complexes under
construction (Traverse Ridge Center), and in the
pipeline.
For this reason it is proposed that a company
looking for a corporate campus office of 150,000-
250,000 be acquired.
Solarwinds already has space a Thanksgiving
Point, but is currently looking for a corporate
campus. The corporate campus is part of Phase I
because it will be an anchor and incentivize other
companies to come to Melody Station.
11
Target Market
Multi-Family- Why multi-family? Vacancy is at
3.2% in Utah County and rents continue to clime and is
at a 10 year high (EquiMark). These are indicators that
more multi-family product could enter the market and be
absorbed. Also, the Utah Construction Report showed
zero multi-family projects under construction in American
Fork as of January 1st, 2013- July 31st, 2013. There is an
opportunity to capture the unmet demand.
Pres. Professor, Arthur Chris Nelson has estimated that
there are enough Single Family Residences for the next
30 years, due to the aging baby boomers looking to
down size. Also, Gen Y wants to be more mobile and
could be lifetime renters according to the Metropolitan
Research Center at the University of Utah. Ivory homes
is constructing the same amount of multi-family units as
single family homes due to demographic desires.

Two product types are proposed for Phase I of
Melody Station. This is due to current market
supply and demand conditions.
Due to the over abundance of office for lease in
northern Utah it is recommended that a company
looking for a corporate campus office of 150,000-
250,000 be acquired.
Solarwinds already has space a Thanksgiving
Point, but is currently looking for a corporate
campus. The corporate campus is part of Phase I
because it will be an anchor and incentivize other
companies to come to Melody Station.
Second product type is multi-family. Vacancy is at
3.2% in Utah County and rents continue to climb
(EquiMark). These are indicators that more multi-
family product could enter the market and be
absorbed. Also, the Utah Construction Report,
showed zero multi-family project under construction
in American Fork as of January 1st, 2013- July 31st,
2013.
These two product types will provide cash flow to
fund further phasing.
12
Reconciliation

13
Property Information

14
Utilities
Power: Rocky Mountain Powers
Gas: Questar Gas
Sewer: Timpanogos Special SVC District
Culinary Water: American Fork
Irrigation Water: American Fork River
Storm Water: Utah County Storm Water
Phone: Quest*
Cable: Comcast*
Note: Quest and Comcast will put together a utilities plan to fit the site plan.

15
Zoning
Residential Agriculture 5
American
Fork
FrontRunner
Station
Industrial 1
Industrial 1
Transitional Residential 5
Transitional Residential 5 Residential Agriculture 5
Site
Zoned: Residential Agricultural 5 Proposed: Transit-Oriented
Development (TOD) Zone
¼ Mile
Radius
TOD Zone
Utah County Zoning Map (American Fork Land Plan- 2012)

16
Access Limitations
Phase I
Phase II
Phase III
2011-2040 Long Range
Transportation Plan (LRP)
Utah has a thirty-year plan for state
transportation facilities in urban and rural
areas. In rural areas, UDOT prepares the
Long Range Transportation Plan
(LRP). In urban areas (50,000 or more
inhabitants) the Metropolitan Planning
Organizations (CACHE, WFRC, MAG,
DMPO) prepare the Regional
Transportation Plans (RTPs).
Long Range Plan- Surrounding Site
Vehicle Access: Accessing the site from the north and west side
requires taking Pioneer Crossing, then Mill Pond Road to 200 South.
Access from the site from the east requires taking 300 West to 200
South. From the south, 200 South follows along I-15. Vineyard
Connector (proposed by UDOT) will provide north/south access to the
site (shown as 1020 West on map).
Mass-Transit Access: FrontRunner stops just north of the site.

17
Due Diligence
Soil Issues: Chipman silty clay loam. No known soils issues.
Ground Water: Water table 7-10 feet below surface
Sewer: Timpanogos Special SVC District- upsizing needed (sewer
runs along 200 S.)
Culinary Water: American Fork City
Power: Rocky Mountain Power
Natural Gas: Questar
Drainage: Change in grade over site is less than 2%. Possible draining
issues. (4565.37- 4543.54=0.5%)
Liquefaction: High-Utah Geological Survey, Aug. 1994
Flood Plain: Not located in FEMA flood plane zone
Wetlands: No wetlands on site
Environmental: Current and previous use is agricultural
Zoning: Residential-Agriculture 5

Phase I of Melody Station will consist of office,
multi-family, and open space.
The Campus-Style Office will be between 150,000-
200,000 square feet depending on tenant’s needs.
The potential tenant would be a single user such as
Solarwinds, who is looking for Campus Office space
to employ up to 1000 employees and expand within
Utah County. Solarwinds currently has space a
Thanksgiving Point.
The Multi-family will consist of 4 buildings, 3 story
garden style with a total of 288 apartments. There
will be a variety of floor plans from 1 bed/1 bath to 3
bed/2 bath. These apartments will be market rent.
Rents will range from $775-$1250.
Arts in the park, both American Fork city and local
homeowners recognized the need for a venue for
the performing arts. The park will serve a two-fold
purpose. One, create open space for residents and
employees. Secondly, to house an amphitheater
within one quadrant of the park. This component
will bring the community into the space and create a
sense of place for the community.
Each product type is strategically placed to create
synergy and maximize use.
Area Map
18
Scope of Project
The property is currently under the jurisdiction of
Utah County. Zoned- Residential-Agriculture 5.
American Fork has proposed on their general land
use map as Transit-Oriented Development.
Recommendations are given in anticipation of a
rezone to Transit-Oriented Development (TOD).
Municipality & Zoning

Area Map
19
Long Range- Master Plan
The Master Plan includes
product types that complement
Phase I products. Phase I-
Large Campus Office, Multi-
family, and Open Space (central
park). Phase II- Class B Office,
Amphitheater, Townhomes and
Single Family Residences, and
Restaurants supported by
residents, employees, patrons
going to the park or
amphitheater.
Phase II will have Class B office
that may or may not have an
association with the Campus
Office owner. Townhomes and
Single Family Resident
community will develop in the
South/East quadrant of the
master planned development.

20
3-D SketchUp of Site Plan

Office Site Map
21
Campus Office
The Campus-Style Office will be between 150,000-
200,000 square feet depending on tenant’s needs.
The potential tenant would be a single user such as
Solarwinds, who is looking for Campus Office space
to employ around 1000 employees and expand
within Utah County.
Solarwinds currently has space at Thanksgiving
Point and is looking to expand operations.
Ancestry.com is another potential tenants with their
lease expiring in 2-3 years and will be most likely
looking for another campus to relocate their
operations facility.
First option would be to create a land lease with the
tenant to create a steady stream of income.
Second option would be to be the developer and
construct the building and sale it to the future tenant.
Example: Campus Office

Multi-family will consist of 4 buildings, 3 story
garden style with a total of 288 apartments. The
complexes will front the tree lined roads creating an
urban feel with parking in the rear to create a more
walkable pedestrian friendly environment, a sense
of place, and security for the residents. There will
be a lounge in each complex and a shared pool.
Residents will enjoy the proximity to the park,
splash pad, amphitheater, and adjacency to
FrontRunner. Future phases will truly create a
vibrant transit-oriented development that is
desirable and sustainable .
There will be a variety of floor plans available from
1 bed/1 bath to 3 bed/2 bath, which allows for age
in place. As the family grows the family can stay
within the community long term.
Leases will be competitively priced at market rate
ranging from $775-$1250. The multi-family will be a
long-term hold for at least 10 years.
Anticipated construction period is 18 months and
have a stabilized NOI after 24 months from the time
of certification of occupancy.
Multi-family Site Map
22
Multi-family Proposed Sq. Ft and rents Wasatch Front Avg.

23
Open floor plans, Stone countertops & backsplashes, Wood & glass cabinetry, Tile or laminate floors, 1.5 parking
stalls/unit, Heated swimming pool, spacious park just feet from the complex, Frontrunner station adjacent to project.
Project Amenities
Floor plans
2 Bed, 2 Bath 3 Bed, 2 Bath

24
3-5 yr. Site Plan

25
Financial Salient Facts

26
Multi-family Pro-forma

27
Multi-family Cash flow

28
Conclusion
Project Summary
Market Analysis Summarized
Vacancy is at 3.2% in Utah County and rents
continue to climb and are at a 10 year high
(EquiMark). These are indicators that more multi-
family product could enter the market and be
absorbed. Their is an opportunity to capture unmet
demand.
Site Analysis Summarized
The site has several great characteristics such as
proximity to the freeway, FrontRunner stop, and
the topography is flat which lowers grading costs.
The visibility from I-15 is a plus for business and
retail.
Product Selection Summarized
The Corporate Office – selected due to nearby
office for lease products. This will serve as an
anchor to other future offices proposed.
Multi-family is a growing product type due to
changing views of homeownership. Melody Station
looks to capture this opportunity.
Financial Analysis Summarized
The success of the multi-family will depend on the
city’s decision to allow for higher density to make
the numbers pencil. An unlevered IRR of 19% is
attractive to many investors.
Conclusion
Melody Station captures the elements desired by
UTA, American Fork, and landowners. Melody
Station will be a vibrant place where residents
within and outside the development can enjoy.
Let the music begin!

29
Exhibits
Overview of potential competition for Retail in the region

30
Exhibits Soils Report Liquefaction Report

31
Exhibits
The Site does not
have any identified
wetlands per the
National Wetlands
Inventory. There is a
Freshwater
Emergent Wetland
about 1000 feet from
the south/east
corner of the site.
The water table is 7-
10 feet below the
surface due to the
proximity to Utah
Lake which prevents
below- grade
improvements
without significant
construction and
mechanical
engineering.

32
Sources
• Governor's Office of Planning and Budget, 2012 Baseline Projections
• FEMA
• National Wetlands Inventory
• Utah County
• American Fork City
• UTA
• U.S. Census Bureau
• Commerce Real Estate Solutions
• Layton Construction
• ICO
• Zion’s Bank
• EquiMark Properties

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