Jonathan Rose Companies LLC


  Implementation of New Urbanism:
Case Study: Highlands‟ Garden Village
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village                            Introduction




                      Environmental Responsibility
Highlands’ Garden Village   Introduction
Highlands’ Garden Village                                                                                                 ...
Highlands’ Garden Village   Introduction
Highlands’ Garden Village   Introduction
Highlands’ Garden Village                               Introduction



                  Highlands’ Garden Village Denver...
Highlands’ Garden Village                                                            Financing

                      High...
Highlands’ Garden Village   History
Highlands’ Garden Village   History
Highlands’ Garden Village                                History

                            •Mary Elitch and Her Bears
Highlands’ Garden Village   History
Highlands’ Garden Village        History




        •Elitch Formal Gardens
Highlands’ Garden Village   History
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village
Perry-Rose LLC & Rose Companies Management LLC                 Housing




    Co-Housing       ...
Highlands’ Garden Village   Single Family Housing
Highlands’ Garden Village   Single Family Housing
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Single Family Housing
Highlands’ Garden Village   Townhomes
Highlands’ Garden Village   Live-Work Housing
Highlands’ Garden Village   Live-Work Housing
Highlands’ Garden Village   Co-Housing
Highlands’ Garden Village   Co-Housing
Highlands’ Garden Village   Multi-Family Housing
Highlands’ Garden Village   Multi-Family Housing
Highlands’ Garden Village   Senior Housing
Highlands’ Garden Village   Senior Housing
Highlands’ Garden Village   Senior Housing
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Planning Process
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village   Commercial
Highlands’ Garden Village                                     Public Realm


     Careful Attention to the Public Realm:
 ...
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village            Public Realm




                            Shared Uses of
                         ...
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village   Public Realm
Highlands’ Garden Village                                        Green Features


     HGV Has Been a Pioneer in Green Bui...
Highlands’ Garden Village                                            Green Features

     Additional Environmentally Sensi...
Highlands’ Garden Village                                              Green Features

                                   ...
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village                                    Green Features




         Water Efficient Buffalo Grass Use...
Highlands’ Garden Village                      Green Features

600000

500000

400000                                     ...
Highlands’ Garden Village                                 Green Features

$45,000

$40,000

$35,000

$30,000

$25,000     ...
Highlands’ Garden Village                          Green Features




            Experiments in Xeriscaped Tree Lawns
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village   Green Features
Highlands’ Garden Village                     Green Features



           HGV Sunflower Market Building is
              ...
Highlands’ Garden Village   Green Features
Highlands’ Garden Village                                               Financing

     Success With Public/Private Partne...
Highlands’ Garden Village                          Financing




     Risk Mitigation Strategies:
           • Phasing
   ...
Highlands’ Garden Village   Financing
Highlands’ Garden Village   Financing
Highlands’ Garden Village   Financing
Highlands’ Garden Village                                                            Financing

                      High...
Highlands’ Garden Village                                                       Financing



          Acquisition & Devel...
Highlands’ Garden Village                                                           Financing

                       Land...
Highlands’ Garden Village                                                          Financing
            Single Family and...
Highlands’ Garden Village                                         Financing

                                             ...
Highlands’ Garden Village                                                      Financing

                  Cottage Hill S...
Highlands’ Garden Village                                                    Financing


                 Trocadero Apartm...
Highlands’ Garden Village                                                                       Financing


              ...
Highlands’ Garden Village   Financing
Highlands’ Garden Village   Financing
Highlands’ Garden Village   Conclusion
Highlands’ Garden Village   Conclusion
Highlands’ Garden Village   Conclusion
CNU-Highlands Garden Village
         Ron Tilton, President
         FirstBank of Denver
          ph. (303)595-2403
     ...
“New Rules”
• Commercial Real Estate (CRE) Guidelines: 300%
  of Capital limitations are being enforced by
  regulators
• ...
What‟s In & What‟s Out

•   LTC & LTV…real cash equity is „in‟; hybrid equity is „out‟ (developer fee‟s,
    market apprec...
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Highlands Garden Village-Case Study-lmplementation of New Urbanism-Jonathan Rose Companies LLC

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Highlands Garden Village-Case Study-lmplementation of New Urbanism-Jonathan Rose Companies LLC

  1. 1. Jonathan Rose Companies LLC Implementation of New Urbanism: Case Study: Highlands‟ Garden Village
  2. 2. Highlands’ Garden Village Introduction
  3. 3. Highlands’ Garden Village Introduction
  4. 4. Highlands’ Garden Village Introduction
  5. 5. Highlands’ Garden Village Introduction
  6. 6. Highlands’ Garden Village Introduction
  7. 7. Highlands’ Garden Village Introduction
  8. 8. Highlands’ Garden Village Introduction
  9. 9. Highlands’ Garden Village Introduction Environmental Responsibility
  10. 10. Highlands’ Garden Village Introduction
  11. 11. Highlands’ Garden Village Introduction Himalayan Village LEED Rating: 29 Himalayan Village LEED Green Building Rating System Project Checklist 14 Pos s ible Points Points Earned Sustainable Sites Y Prereq 1 Erosion & Sedimentation Control Required Y ? N Credit 1 Site Selection 1 1 Y ? N Credit 2 Urban Redevelopment 1 0 Y Y ? N Credit 3 Brownfield Redevelopment 1 0 Y ? N Credit 4.1 Alternative Transportation, Public Transportation Access 1 0 Y ? N Credit 4.2 Alternative Transportation, Bicy cle Storage 1 0 Y ? N Credit 4.3 Alternative Transportation, Alternativ e Fuel Ref ueling Stations 1 0 Y ? N Credit 4.4 Alternative Transportation, Parking Capacity 1 1 Y ? N Credit 5.1 Reduced Site Disturbance, Protect or Restore Open Space 1 1 Y ? N Credit 5.2 Reduced Site Disturbance, Dev elopment Footprint 1 1 Y ? N Credit 6.1 Stormwater Management, Rate or Quantity 1 0 Y ? N Credit 6.2 Stormwater Management, Treatment 1 0 Y Y N Credit 7.1 Landscape & Exterior Design to Reduce Heat Islands, NonRoof 1 0 Y Y N Credit 7.2 Landscape & Exterior Design to Reduce Heat Islands, Roof 1 0 Y ? N Credit 8 Light Pollution Reduction 1 1 5 Water Efficiency 5 Poss ible Points Y ? N Credit 1.1 Water Efficient Landscaping, Reduce by 50% 1 1 Y ? N Credit 1.2 Water Efficient Landscaping, No Potable Use or No Irrigation 1 0 Y ? N Credit 2 Innovative Wastewater Technologies 1 0 Y ? N Credit 3.1 Water Use Reduction, 20% Reduction 1 1 Y ? N Credit 3.2 Water Use Reduction, 30% Reduction 1 1 3 Energy & Atmosphere 17 Pos s ible Points Points Earned Y Prereq 1 Fundamental Building Systems Commissioning Required Y Prereq 2 Minimum Energy Performance Required Y Prereq 3 CFC Reduction in HVAC&R Equipment Required Y ? N Credit 1.1 Optimize Energy Performance, 20% New / 10% Existing 2 0 Y ? N Credit 1.2 Optimize Energy Performance, 30% New / 20% Existing 2 0 Y ? N Credit 1.3 Optimize Energy Performance, 40% New / 30% Existing 2 0 Y ? N Credit 1.4 Optimize Energy Performance, 50% New / 40% Existing 2 0 Y ? N Credit 1.5 Optimize Energy Performance, 60% New / 50% Existing 2 0 Y ? N Credit 2.1 Renewable Energy, 5% 1 1 Y ? N Credit 2.2 Renewable Energy, 10% 1 1 Y ? N Credit 2.3 Renewable Energy, 20% 1 1 Y ? N Credit 3 Additional Commissioning 1 0 Y ? N Credit 4 Ozone Depletion 1 1 Y ? N Credit 5 Measurement & Verification 1 0 Y ? N Credit 6 Green Power 1 1 5 Materials & Resources 13 Pos s ible Points Points Earned Y Prereq 1 Storage & Collection of Recyclables Required Y ? N Credit 1.1 Building Reuse, Maintain 75% of Existing Shell 1 1 Y ? N Credit 1.2 Building Reuse, Maintain of Existing Shell 1 1 Y ? N Credit 1.3 Building Reuse, Maintain 100% of Shell & 50% Non-Shell 1 1 Y ? N Credit 2.1 Construction Waste Management, Div ert 50% 1 1 Y ? N Credit 2.2 Construction Waste Management, Div ert 75% 1 1 Y ? N Credit 3.1 Resource Reuse, Specif y 5% 1 1 Y ? N Credit 3.2 Resource Reuse, Specif y 10% 1 1 Y ? N Credit 4.1 Recycled Content, Specify 25% 1 1 Y ? N Credit 4.2 Recycled Content, Specify 50% 1 1 Y ? N Credit 5.1 Local/Regional Materials, 20% Manufactured Locally 1 1 Y ? N Credit 5.2 Local/Regional Materials, of 20% Above, 50% Harves ted Locally 1 1 Y ? N Credit 6 Rapidly Renewable Materials 1 1 Y ? N Credit 7 Certified Wood 1 0 12 Indoor Environmental Quality 15 Pos s ible Points Y Prereq 1 Minimum IAQ Performance Required Y Prereq 2 Environmental Tobacco Smoke (ETS) Control Required Y ? N Credit 1 Carbon Dioxide (CO 2 ) Monitoring 1 0 Y Y N Credit 2 Increase Ventilation Effectiveness 1 0 Y ? N Credit 3.1 Construction IAQ Management Plan, During Construction 1 0 Y ? N Credit 3.2 Construction IAQ Management Plan, Bef ore Occupancy 1 0 Y ? N Credit 4.1 Low-Emitting Materials, Adhesiv es & Sealants 1 1 Y ? N Credit 4.2 Low-Emitting Materials, Paints 1 1 Y ? N Credit 4.3 Low-Emitting Materials, Carpet 1 1 Y ? N Credit 4.4 Low-Emitting Materials, Composite Wood 1 0 Y ? N Credit 5 Indoor Chemical & Pollutant Source Control 1 0 Y ? N Credit 6.1 Controllability of Systems, Perimeter 1 0 Y ? N Credit 6.2 Controllability of Systems, Non-Perimeter 1 0 Y ? N Credit 7.1 Thermal Comfort, Comply with ASHRAE 55-1992 1 0 Y ? N Credit 7.2 Thermal Comfort, Permanent Monitoring Sy stems 1 0 Y ? N Credit 8.1 Daylight & Views, Day light 75% of Spaces 1 0 Y ? N Credit 8.2 Daylight & Views, Views for 90% of Spaces 1 0 3 Innovation & Design Process 5 Poss ible Points Y ? N Credit 1.1 Innovation in Design: Winrock Policy 1 1 Y ? N Credit 1.2 Innovation in Design: Roof and Cistern Assembly 1 0 Y ? N Credit 1.3 Innovation in Design: Economic Feasibility in Marketplace 1 0 Y ? N Credit 1.4 Innovation in Design: Prototypical Building Model 1 0 TM Y ? N Credit 2 LEED Accredited Professional 1 0 1 Project Totals 69 Pos s ible Points Ce rtifie d 26-32 points Silve r 33-38 points Gold 39-51 points Platinum 52-69 points 29
  12. 12. Highlands’ Garden Village Introduction
  13. 13. Highlands’ Garden Village Introduction
  14. 14. Highlands’ Garden Village Introduction Highlands’ Garden Village Denver,CO
  15. 15. Highlands’ Garden Village Financing Highlands Garden Village Project Cost $101.8 million Project Size 27.39 acres Site Acquisition, Infrastructure, Demolition, Planning and Open Space $15.5 million Single Family, Town Home $25.8 million Cohousing $ 8.3 million Live/work Lofts $ 7.8 million Senior $ 7.0 million Multifamily $10.0 million Commercial $18.5 million School $ 5.8 million Plaza and Entrance Park $ 1.0 million Theater $ 2.1 million Total Housing Units 306 Single Family 52 Carriage Homes 20 Town Homes/Condominiums 38 Senior 63 Multifamily 74 Co-housing 33 Live/work Lofts 26 Commercial Area 75,000 sq. ft. School 43,000 sq. ft Civic Uses: Historic Elitch Theater and Carousel Building 20,000 sq. ft. Open Space 140,000 sq. ft
  16. 16. Highlands’ Garden Village History
  17. 17. Highlands’ Garden Village History
  18. 18. Highlands’ Garden Village History •Mary Elitch and Her Bears
  19. 19. Highlands’ Garden Village History
  20. 20. Highlands’ Garden Village History •Elitch Formal Gardens
  21. 21. Highlands’ Garden Village History
  22. 22. Highlands’ Garden Village Planning Process
  23. 23. Highlands’ Garden Village Planning Process
  24. 24. Highlands’ Garden Village Planning Process
  25. 25. Highlands’ Garden Village Planning Process
  26. 26. Highlands’ Garden Village Planning Process
  27. 27. Highlands’ Garden Village Planning Process
  28. 28. Highlands’ Garden Village Planning Process
  29. 29. Highlands’ Garden Village Planning Process
  30. 30. Highlands’ Garden Village Planning Process
  31. 31. Highlands’ Garden Village Planning Process
  32. 32. Highlands’ Garden Village Perry-Rose LLC & Rose Companies Management LLC Housing Co-Housing Town Homes Single Family Multi Family
  33. 33. Highlands’ Garden Village Single Family Housing
  34. 34. Highlands’ Garden Village Single Family Housing
  35. 35. Highlands’ Garden Village Planning Process
  36. 36. Highlands’ Garden Village Single Family Housing
  37. 37. Highlands’ Garden Village Townhomes
  38. 38. Highlands’ Garden Village Live-Work Housing
  39. 39. Highlands’ Garden Village Live-Work Housing
  40. 40. Highlands’ Garden Village Co-Housing
  41. 41. Highlands’ Garden Village Co-Housing
  42. 42. Highlands’ Garden Village Multi-Family Housing
  43. 43. Highlands’ Garden Village Multi-Family Housing
  44. 44. Highlands’ Garden Village Senior Housing
  45. 45. Highlands’ Garden Village Senior Housing
  46. 46. Highlands’ Garden Village Senior Housing
  47. 47. Highlands’ Garden Village Commercial
  48. 48. Highlands’ Garden Village Commercial
  49. 49. Highlands’ Garden Village Commercial
  50. 50. Highlands’ Garden Village Planning Process
  51. 51. Highlands’ Garden Village Commercial
  52. 52. Highlands’ Garden Village Commercial
  53. 53. Highlands’ Garden Village Commercial
  54. 54. Highlands’ Garden Village Commercial
  55. 55. Highlands’ Garden Village Commercial
  56. 56. Highlands’ Garden Village Commercial
  57. 57. Highlands’ Garden Village Commercial
  58. 58. Highlands’ Garden Village Commercial
  59. 59. Highlands’ Garden Village Public Realm Careful Attention to the Public Realm: • Utilization of the historic and natural features of the site guided the planning and design • Building narrower streets than had been previously permitted in Denver • Inclusion of diagonal street parking • Streets that end in vistas • Attention to the interaction of the civic space and the sense of place.
  60. 60. Highlands’ Garden Village Public Realm
  61. 61. Highlands’ Garden Village Public Realm
  62. 62. Highlands’ Garden Village Public Realm
  63. 63. Highlands’ Garden Village Public Realm
  64. 64. Highlands’ Garden Village Public Realm
  65. 65. Highlands’ Garden Village Public Realm
  66. 66. Highlands’ Garden Village Public Realm
  67. 67. Highlands’ Garden Village Public Realm Shared Uses of Theatre Plaza
  68. 68. Highlands’ Garden Village Public Realm
  69. 69. Highlands’ Garden Village Public Realm
  70. 70. Highlands’ Garden Village Public Realm
  71. 71. Highlands’ Garden Village Public Realm
  72. 72. Highlands’ Garden Village Public Realm
  73. 73. Highlands’ Garden Village Public Realm
  74. 74. Highlands’ Garden Village Public Realm
  75. 75. Highlands’ Garden Village Public Realm
  76. 76. Highlands’ Garden Village Public Realm
  77. 77. Highlands’ Garden Village Public Realm
  78. 78. Highlands’ Garden Village Public Realm
  79. 79. Highlands’ Garden Village Public Realm
  80. 80. Highlands’ Garden Village Public Realm
  81. 81. Highlands’ Garden Village Green Features HGV Has Been a Pioneer in Green Building: • 30 Tons of Concrete from the Original Park were Recycled into the HGV Road Base • Sunflower Market Building is a Participant in the LEED Core and Shell Pilot Program and is LEED Gold Certified • Single Family Homes Were Built to Exceed EnergyStar and Colorado Built Green Requirements • Multi Family Buildings Were Built Using Recycled Materials, Low VOC Finishes and High Efficiency Mechanical Units and Windows.
  82. 82. Highlands’ Garden Village Green Features Additional Environmentally Sensitive Features: • All Public Spaces Powered by Windsource or PV • Xeriscaped Tree Lawns • Native Buffalo Grass in Theatre Plaza • The Preservation of Existing Trees in Laying Out the Development • Reuse of Existing Buildings • High Density Allowing an Increased Population to Live Closer to Downtown. • Locating Neighborhood Retail within Walking Distance of High Density Living
  83. 83. Highlands’ Garden Village Green Features Transportation Use 250 Household Use 200 125 150 Million BTU per Year 87 35 per Household 100 26 50 101 101 71 71 0 Suburban Avg Suburban Urban Avg Urban Green (226 Mbtu) Green (136 Mbtu) (97 Mbtu) (158 Mbtu) Household Type © Jonathan Rose & Companies, LLC
  84. 84. Highlands’ Garden Village Green Features
  85. 85. Highlands’ Garden Village Green Features
  86. 86. Highlands’ Garden Village Green Features
  87. 87. Highlands’ Garden Village Green Features Water Efficient Buffalo Grass Uses 1/6th the Water of Blue Grass
  88. 88. Highlands’ Garden Village Green Features 600000 500000 400000 Gallons per Year 300000 200000 100000 0 Blue Grass Buffalo Grass
  89. 89. Highlands’ Garden Village Green Features $45,000 $40,000 $35,000 $30,000 $25,000 Cost of installing Buffalo Grass (20,000 SF) $20,000 Water Savings ($1083/year) $15,000 $10,000 $5,000 $0 Replacement New (39 yr payback) (7 yr payback)
  90. 90. Highlands’ Garden Village Green Features Experiments in Xeriscaped Tree Lawns
  91. 91. Highlands’ Garden Village Green Features
  92. 92. Highlands’ Garden Village Green Features
  93. 93. Highlands’ Garden Village Green Features
  94. 94. Highlands’ Garden Village Green Features
  95. 95. Highlands’ Garden Village Green Features
  96. 96. Highlands’ Garden Village Green Features
  97. 97. Highlands’ Garden Village Green Features
  98. 98. Highlands’ Garden Village Green Features
  99. 99. Highlands’ Garden Village Green Features
  100. 100. Highlands’ Garden Village Green Features HGV Sunflower Market Building is LEED GOLD Certified
  101. 101. Highlands’ Garden Village Green Features
  102. 102. Highlands’ Garden Village Financing Success With Public/Private Partnerships: • Developers worked closely with DURA to structure TIF financing for HGV infrastructures. • A Citizen Design Review Board reviewed and gave input into all building designs. • Developers provided support to a not-for-profit to renovate the historic theatre. • The Master Plan was informed by a public survey requesting senior housing, mixed uses, historic preservation, and more. • In Partnership with the Denver Botanic Gardens the original garden entry was recreated. • The grounds are maintained in partnership with a group of resident volunteers.
  103. 103. Highlands’ Garden Village Financing Risk Mitigation Strategies: • Phasing • Sharing Risk and Return with Home Builders • Flexible PUD
  104. 104. Highlands’ Garden Village Financing
  105. 105. Highlands’ Garden Village Financing
  106. 106. Highlands’ Garden Village Financing
  107. 107. Highlands’ Garden Village Financing Highlands Garden Village Project Cost $101.8 million Project Size 27.39 acres Site Acquisition, Infrastructure, Demolition, Planning and Open Space $15.5 million Single Family, Town Home $25.8 million Cohousing $ 8.3 million Live/work Lofts $ 7.8 million Senior $ 7.0 million Multifamily $10.0 million Commercial $18.5 million School $ 5.8 million Plaza and Entrance Park $ 1.0 million Theater $ 2.1 million Total Housing Units 306 Single Family 52 Carriage Homes 20 Town Homes/Condominiums 38 Senior 63 Multifamily 74 Co-housing 33 Live/work Lofts 26 Commercial Area 75,000 sq. ft. School 43,000 sq. ft Civic Uses: Historic Elitch Theater and Carousel Building 20,000 sq. ft. Open Space 140,000 sq. ft
  108. 108. Highlands’ Garden Village Financing Acquisition & Development Financing Loans, TIF & Equity SOURCES Amount % Acquisition and Development (A&D) Loan Phase I $ 4,600,000 Phase II $ 3,420,000 Phase III $ 555,000 Total A&D Loan $ 8,575,000 48.86% Tax Increment Financing Annual Payments $ 590,644 Tax increment Bond Issue $ 4,400,000 28.43% Developer Equity $ 3,933,958 22.41% Misc Income $ 51,774 0.29% Total SOURCES $ 17,551,376 100.00%
  109. 109. Highlands’ Garden Village Financing Land Sales, TIF SOURCES Amount % Single Family Lots $ 2,484,875 13.08% Townhouse Lots $ 756,450 3.98% Profit Sharing on SF & TH $ 3,428,663 18.05% Sale of Tennyson Site $ 900,000 4.74% Sale of Co-housing Site $ 752,500 3.96% Profit Share Cohousing $ 265,076 1.40% Sale Senior Site $ 687,000 3.62% Sale Multi-family Site $ 1,093,881 5.76% Sale Plaza Loft Sites $ 695,000 3.66% Sale of Commercial Site $ 1,726,498 9.09% Sale N 38th Office $ 225,000 1.18% Sale of Tap Credits $ 177,191 0.93% TIF $ 5,750,000 30.27% Misc Income $ 51,774 0.27% TOTAL Sources $ 18,993,908 100.00% USES Amount % Acquisition (Land) Cost $ 2,415,859 12.72% Demolition and Environmental Remediation $ 1,241,628 6.54% Infrastructure $ 3,648,532 19.21% Parks & Open Space $ 1,681,140 8.85% Theatre $ 2,074,262 10.92% Carousel $ 323,839 1.70% Permits & Fees $ 169,720 0.89% Professional Fees $ 1,840,576 9.69% Operating Expenses $ 734,390 3.87% Bank Loan Fee $ 180,003 0.95% Interest $ 252,844 1.33% Marketing $ 199,495 1.05% TIF Bond Costs $ 553,662 2.91% Development Fee $ 2,235,426 11.77% TOTAL Uses $ 17,551,376 Profit $ 1,422,532 7.59% TOTAL $ 18,993,908 100.00%
  110. 110. Highlands’ Garden Village Financing Single Family and Townhome Sales REVENUES Amount % Per Unit Sales $ 25,849,791.00 EXPENSES Hard Cost $ 10,791,241.00 41.75% $ 119,902.68 Soft Costs $ - Legal/ Admin $ 94,779.00 0.37% $ 1,053.10 Permits & Fees $ 629,967.00 2.44% $ 6,999.63 Design & Engineering $ 296,173.00 1.15% $ 3,290.81 Site Development $ 59,461.00 0.23% $ 660.68 Landscape $ 286,927.00 1.11% $ 3,188.08 Land Cost $ 3,194,630.00 12.36% $ 35,495.89 Marketing $ 1,063,838.00 4.12% $ 11,820.42 Construction Supervision $ 626,223.00 2.42% $ 6,958.03 Financing $ 790,210.00 3.06% $ 8,780.11 Development Fee $ 1,777,446.00 6.88% $ 19,749.40 TOTAL USES $ 19,610,895.00 $ 217,898.83 Profit $ 6,238,896.00 24.14% $ 69,321.07 TOTAL $ 25,849,791.00 100.00% $ 287,219.90 IRR 27.00%
  111. 111. Highlands’ Garden Village Financing Low est. $450,000 High est. Low actual $400,000 High actual $350,000 $300,000 $250,000 Sales Price $200,000 $150,000 $100,000 $50,000 $0 Single Family Townhouses Co-housing Housing Type
  112. 112. Highlands’ Garden Village Financing Cottage Hill Senior Apartments Sources and Uses of Funds Total % Sources Permanent Loans $ 4,134,997.00 58.5% Home Loans $ 795,000.00 11.3% Developer Equity $ 15,769.00 0.2% Tax Credit Equity $ 1,561,132.00 22.1% Development Fee Deferral $ 381,000.00 5.4% LOC $ 174,700.00 2.5% Total Sources $ 7,062,598.00 100.0% Uses Acquisition Costs $ 687,000.00 9.7% Construction Costs $ 5,007,305.00 70.9% Financing Costs $ 442,205.00 6.3% Development Costs $ 733,388.00 10.4% Reserves $ 192,700.00 2.7% Total Uses $ 7,062,598.00 100.0% Annual Cash on Cash Return 9.4% IRR 8.2%
  113. 113. Highlands’ Garden Village Financing Trocadero Apartments Sources and Uses of Funds Total % Sources Permanent Loans $ 7,613,100.00 74.8% Home Loans $ 398,000.00 3.9% Developer Equity $ 35,392.98 0.3% Tax Credit Equity $ 1,734,256.02 17.0% Development Fee Deferral $ - 0.0% LOC 4.0% Total Sources $ 10,184,011.00 100.0% Uses Acquisition Costs $ 1,092,764.00 5.9% Construction Costs $ 7,060,553.00 69.3% Financing Costs $ 811,079.00 8.0% Development Costs $ 696,353.00 6.8% Reserves $ 523,262.00 5.1% Total Uses $ 10,184,011.00 100.0% Annual Cash on Cash Return 6.9% IRR 17.0%
  114. 114. Highlands’ Garden Village Financing HGV Commercial Sources and Uses of Funds Total % PSf Sources Equity $ 6,500,000 35% Permanent Loan $ 12,000,000 65% Total Sources $ 18,500,000 100% Uses Land Costs $ 1,772,700 10% 5.02 Hard Costs $ 10,629,000 57% 145.60 Tenant Improvements $ 1,982,000 11% Architecture & Engineering $ 862,300 5% Legal & Accounting $ 224,000 1% Carrying Charges & Financing Fees $ 1,500,000 8% Development Fee $ 1,530,000 8% Total Uses $ 18,500,000 100% Annual Cash on Cash Return 6.23% IRR 11%
  115. 115. Highlands’ Garden Village Financing
  116. 116. Highlands’ Garden Village Financing
  117. 117. Highlands’ Garden Village Conclusion
  118. 118. Highlands’ Garden Village Conclusion
  119. 119. Highlands’ Garden Village Conclusion
  120. 120. CNU-Highlands Garden Village Ron Tilton, President FirstBank of Denver ph. (303)595-2403 June 12, 2009
  121. 121. “New Rules” • Commercial Real Estate (CRE) Guidelines: 300% of Capital limitations are being enforced by regulators • CMBS Loan Maturities peaking in 2013 & 2014 and the impact on closure of this market • Future Inflationary Concerns will impact long term rates and available credit capacity • The credit culture & “over exuberance” during the last 10 years and the resulting losses, have pushed underwriting criteria back in time.
  122. 122. What‟s In & What‟s Out • LTC & LTV…real cash equity is „in‟; hybrid equity is „out‟ (developer fee‟s, market appreciation, lower cap rates, etc.) • Guarantors are „in‟; non-recourse and limited recourse are „out‟ • Real presales are „in‟; spec or soft presales are „out‟ (real buyers vs. the fog-a- mirror buyer with little money down & pre-qualified for a subprime loan) • Rate floors are „in‟; LIBOR + 75 bp‟s & Prime minus pricing with no floor is „out‟ • Experienced/veteran development teams are „in‟; inexperienced developers and contractors are „out‟ • Horizontal & phased development is „in‟; large vertical, single stroke development is „out‟ • 1.3 DSCR‟s are „in‟; projected lease up on increasing rent schedules is „out‟ • Well located development sites near jobs & transportation is „in‟; drive-til-you- can-afford-it is „out‟ • Reasonable cap & vacancy rates are „in‟; sub-6 cap rates & 5% vacancy rates are „out‟

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