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Virginia Beach Investment Rev 1


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Virginia Beach Investment Rev 1

  1. 1. Virginia Beach Investment Presented by Real Tour ® Realty The following information is considered proprietary and should not be distributed to any individual or party without expressed approval. RealTour® is a registered trademark of The Young Professional Services, LLC.
  2. 2. INTRODUCTION <ul><li>About Real Tour ® Realty </li></ul><ul><li>Virginia Beach Info </li></ul><ul><li>Oceanfront Planning Areas & Projects </li></ul><ul><ul><li>Rudee Loop </li></ul></ul><ul><ul><li>19th St Corridor </li></ul></ul><ul><ul><li>The Dome Project </li></ul></ul><ul><ul><li>Additional Projects (Ocean Center) </li></ul></ul><ul><li>Previous Projects </li></ul><ul><ul><li>Convention Center </li></ul></ul><ul><ul><li>Town Center </li></ul></ul><ul><li>Previous Proposals </li></ul><ul><ul><li>Sunrise Development </li></ul></ul><ul><li>Parcels Available </li></ul><ul><li>Real Tour ® Realty Services </li></ul><ul><li>Due Diligence </li></ul><ul><li>Attachments </li></ul><ul><ul><li>Dome Project Request for Letter of Interest (RLI) </li></ul></ul>
  3. 3. About Real Tour ® Realty <ul><li>At RealTour Realty It is our goal to connect good people to high quality projects. </li></ul><ul><li>We will achieve this goal by developing a team of local experts that understand the complexity of large projects. </li></ul><ul><li>We put our clients interests ahead of our own. </li></ul><ul><li>We listen to our clients and understand their needs and goals. </li></ul><ul><li>We believe in teamwork and collaboration. We come to better answers in teams than as individuals. So we do not compete against each other. Instead, we share a structured problem–solving approach, where all opinions and options are considered, researched, and analyzed carefully before recommendations are made. </li></ul>
  4. 4. Virginia Beach Info <ul><li>Virginia Beach is a vibrant, growing city that has been named “The Best Place to Live in America” by USA Weekend. In addition, tourism is a major contributor to Virginia Beach’s economy, with three million visitors spending about $821 million annually – and not just in the summertime. In fact, 60% of Virginia Beach’s tourism business occurs in the shoulder season, making it a true year-round destination. In addition, tourism creates close to 15,000 jobs in Virginia Beach each year. In 2005, Virginia Beach unveiled a $200 million, 500,000 square-foot convention center designed by Skidmore, Owens & Merrill, making the city an even more popular destination for conventions and meetings. </li></ul>
  5. 5. Virginia Beach Planning Areas <ul><li>Oceanfront </li></ul><ul><ul><li>Rudee Loop </li></ul></ul><ul><ul><ul><li>No RLI </li></ul></ul></ul><ul><ul><li>19th St Corridor </li></ul></ul><ul><ul><ul><li>Long Term </li></ul></ul></ul><ul><ul><li>The Dome Project </li></ul></ul><ul><ul><ul><li>In Progress </li></ul></ul></ul><ul><ul><li>Additional Projects </li></ul></ul>
  6. 6. Oceanfront Planning Areas Ocean Center Project Rudee Loop Project
  7. 7. Rudee Loop Arial View
  8. 8. Rudee Loop Information <ul><li>Rudee Loop, approx 10 acres of prime property on the Virginia Beach oceanfront, will be available soon for development for public and private use. This is one of the most remarkable properties on the East Coast. And the city will be looking for a remarkable developer to share their vision of a high-density, mixed-use private development that could include a four-star hotel, luxury condominiums, upscale dining, specialty retail, public parking, and lots of public open space, walkways, and bike paths. </li></ul>
  9. 9. 19 th Street Corridor <ul><li>The Old Beach District covers an area from Birdneck Road to the oceanfront, from 45th Street to Rudee Inlet, with the core area being the land along 19th Street, which connects the new Virginia Beach Convention Center to the oceanfront. To that end, the city has funded $14 million for improvement to the 19th Street Corridor. </li></ul><ul><li>The project will include higher-density housing such as condominiums, apartments, and town homes in an area currently dominated by single-family homes. The Old Beach District will also feature a completed pedestrian link, three new parking garages, and stores anchoring the corners of many blocks. The highlight of the District will be an entertainment, restaurant, and shopping complex on the eastern end of 19th Street. </li></ul>
  10. 10. 19 th Street Corridor - Map
  11. 11. The Dome Project <ul><li>The Dome Site is nine acres of prime development land located between 18th and 20th Streets, fronting on Pacific Avenue in the heart of the resort area. Originally, this was the site of the Old Virginia Beach Civic Center, which was commonly referred to as “The Dome.” </li></ul><ul><li>The Virginia Beach Development Authority issued a Request for Interest (RLI) to solicit a qualified developer to construct a mixed-use upscale entertainment center, and has approved an 8 month development contract with LARC Inc. based out of Dallas Texas to develop a conceptual plan of the Dome Site. </li></ul>
  12. 12. The Dome Project - Map
  13. 13. Additional Projects <ul><li>Ocean Center (Approx 50 Acres adjacent to the Convention Center) </li></ul><ul><ul><li>Privately owned by two (2) owners. </li></ul></ul><ul><ul><li>No public funding approved (except the $14Mil for 19 th St corridor Project) </li></ul></ul><ul><ul><li>Added to the Resort Area Master Plan </li></ul></ul><ul><ul><li>Owners Seeking a $500Million to $1Bil investment </li></ul></ul>
  14. 14. Previous Projects <ul><li>Convention Center (Skidmore, Owings & Merrill, LLP) </li></ul><ul><li>Town Center </li></ul>
  15. 15. Convention Center – Project Facts <ul><li>Completion Year: 2007 Site Area: 37.80 acres Project Area: 516,522 ft2 Building Height: 147 ft Number of Stories: 4 </li></ul><ul><li>Project Awards </li></ul><ul><li>2005 • Virginia Beach Planning Commission • Design Award 2006 • Business Week/Architectural Record • Citation for Excellence 2006 • Hampton Roads Association for Commercial Real Estate • Best Institutional Public Building: First Honor Award 2007 • AIA - Chicago Chapter • Distinguished Building Award 2007 • American Public Works Association • Public Works Project of the Year 2007 • Convention South Magazine • Reader's Choice Award: Winner 2007 • Facilities & Destinations Magazine • Prime Site Award 2007 • Real Estate & Construction Review • Plaque of Honor 2007 • Trade Show Executive • Innovation Award: Floor Grid 2007 • Virginia Department of Environmental Equality • Virginia Green Certification 2008 • American Institute of Steel Construction • IDEAS2 - Innovative Design in Engineering and Architecture with Structural Steel: Greater than $75 million Category, National Award Winner </li></ul>
  16. 16. Town Center <ul><ul><ul><ul><ul><li>Town Center is the heart of a mixed-use “main street” style development located at the core of Virginia Beach’s Central Business District, and is the home of its cultural, business and retail activities. Spanning over 17 city blocks, Town Center provides a mix of upscale retail, luxury residential, Class A offices, a business-class hotel, and an array of restaurants. </li></ul></ul></ul></ul></ul><ul><li>Phase III of Town Center has recently been completed. This phase features a new 38-story deluxe Westin Hotel and the Westin Virginia Beach Town Center Residences, along with the Sandler Center for Performing Arts. The Westin tower is Virginia’s tallest structure. Phase III also includes additional free public parking, commercial space, and a conference center. </li></ul><ul><li>Currently under construction is a 100,000 square foot, 6 story building with ground floor retail and 5 floors of Class A office space. </li></ul>
  17. 17. Town Center Project Phases <ul><li>Phase I </li></ul><ul><li>Included the Armada Hoffler Tower, a Hilton Garden Inn, a office, parking garages, and surrounding office and retail. Phase I added 968,000 SF, and consisted of a $75 million private investment and a $25 million public investment. </li></ul><ul><li>Phase II </li></ul><ul><li>Included the , a public plaza, parking garages, a Dick's Sporting Goods (originally a Galyan's), and surrounding office and retail. Phase II added 1,248,300 SF with a $90 million private investment and a $26 million public investment. </li></ul><ul><li>Phase III </li></ul><ul><li>Included The Westin Virginia Beach Town Center hotel and residences, , , a 5-story office building, office, retail, and more parking. Phase II added 996,979 SF with a $173 million private investment and a $28.8 million public investment. </li></ul><ul><li>Phase IV </li></ul><ul><li>Scheduled to begin in the fourth quarter of 2008 and will include the . Phase IV and additional phases, if any, are scheduled to include 1,630,000 additional SF of space. </li></ul>3200 Parking 4.3 million sq. ft. Lease Area 17 blocks Size $500 million Cost Technical details
  18. 18. Previous Proposals <ul><li>The plan by a South Korean company included more than 3,800 condominiums, 1,500 hotel rooms and seven towers soaring up to 40 stories high. The size of the proposal by Sun Rise Development Co. Ltd., which covered more than 64 acres at the former Dome site, Rudee Loop, the Convention Center and the Tournament Players Club of Virginia Beach, surpassed any proposal the city had seen in years. </li></ul>
  19. 19. Parcels Available <ul><li>Following are a few examples of prime properties in Virginia Beach </li></ul><ul><li>1808 Artic Ave </li></ul><ul><li>623 Virginia Beach Blvd </li></ul><ul><li>215 N Birdneck Rd </li></ul>
  20. 20. 1808 Artic Ave Not currently listed on the open market. Could be purchased between $800K - $1Mil. Prime location. Owner will consider offers. Across the street from The Dome Project
  21. 21. 623 Virginia Beach Blvd <ul><li>Strategic Location: Six blocks from Oceanfront -Three blocks from Convention Center Current use: Auto Sales and Repair (Many other possibilities) Sale Price - $1,500,000 LAND: 200 feet fronting Virginia Beach Blvd. 28,000 square feet .64 acre Zoned RT-3 Two curb cuts IMPROVEMENTS: Steel building 50' X 120' 7,250 square feet (6,000 sq. ft. footprint, loft 1,250 sq. ft.) 2 bathrooms 6 bays 14 ft. doors Body shop (approx. 25 ft. X 25 ft.) 2 hydraulic lifts (Joyce) 2 five horsepower compressors 2 zone heat & air Two 5 ton AC units Phone system NOTE: Two in ground storage tanks. </li></ul>
  22. 22. 215 N Birdneck Rd <ul><li>Commercial Lot </li></ul><ul><li>List Price </li></ul><ul><ul><li>$980,000 </li></ul></ul><ul><ul><li>($628,205.15/AC) </li></ul></ul><ul><li>1.56 AC (68,000 Sq Ft) </li></ul><ul><li>Frontage 124.47’ +/- </li></ul><ul><li>Zoning B-2 </li></ul>
  23. 23. Available Commercial Properties
  24. 24. Available Lots/Land (MLS)
  25. 25. Available Lots/Land (LOOPNET)
  26. 26. Available Lots/Land (LOOPNET)
  27. 27. Real Tour ® Realty Services <ul><li>Brokerage </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Property Management </li></ul></ul><ul><ul><li>Sales of Condos/Timeshares </li></ul></ul><ul><ul><li>Lease Agreements </li></ul></ul><ul><ul><li>Letters of Intent (LOI) </li></ul></ul><ul><ul><li>Buyer Representation </li></ul></ul><ul><ul><li>Seller Representation </li></ul></ul><ul><li>Investment Counseling </li></ul><ul><ul><li>Investment Property Research </li></ul></ul><ul><ul><li>Cost Estimates </li></ul></ul><ul><li>Translation Services </li></ul><ul><ul><li>Documents/Meetings </li></ul></ul>
  28. 28. Due Diligence <ul><li>Record Research </li></ul><ul><li>Design Input </li></ul><ul><li>Planning Department Liaison </li></ul><ul><li>Public Utility Department Liaison </li></ul><ul><li>Photography </li></ul><ul><li>Consultation </li></ul><ul><li>Document Translation </li></ul><ul><li>Additional Services as Required </li></ul>
  29. 29. Attachments <ul><li>The Dome Project Request for Letter of Interest (RLI) </li></ul><ul><ul><li>This example defines the project objectives and evaluation criteria. A similar document will be released for the Rudee Loop Project. </li></ul></ul>
  30. 30. The Dome Project RLI <ul><ul><li>The Virginia Beach Development Authority </li></ul></ul><ul><li>Request for Letter of Interest (RLI) and Qualifications </li></ul><ul><li>for the Development of the Former Dome Site </li></ul><ul><li>in the Resort Area of Virginia Beach </li></ul><ul><li>SECTION 1. OBJECTIVE : </li></ul><ul><li>The Virginia Beach Development Authority (VBDA) is issuing this Request for a Letter of Interest (RLI) for development of an 8.5 acre site in the middle of the City’s resort area. The property was formerly the site of the Virginia Beach Dome (Convention Center) and remains known as the Dome site, even though the City has cleared the site in preparation for redevelopment, which is the subject of this RLI. The VBDA seeks a knowledgeable, experienced, qualified and capable developer with a strong, cohesive internal and external development team experienced in complex multi-venue urban development projects to design, develop and construct all facets of this project. The City of Virginia Beach (City) has assembled approximately 6.47 acres of prime development property bounded by Pacific Avenue to the east and Arctic Avenue to the west between 18th and 20th Streets with an additional 2.14 acres on two adjacent parcels (total 8.5 acres) (see attachment). The City intends to develop this site as a multi-venue destination entertainment complex of the highest quality, to include primarily entertainment, but also some retail and restaurant components, and a parking structure to satisfy the parking requirements of the development and public use parking spaces. The City or its Virginia Beach Development Authority (VBDA) intends to enter into a development agreement with a selected developer in accordance with the terms described in Section 5. </li></ul><ul><li>SECTION 2. DEVELOPMENT SITE ZONING : </li></ul><ul><li>The Dome site is zoned Resort Tourist District 3 (RT-3). The RT-3 Resort Tourist District provides for a mixture of uses primarily devoted to resort and complementary resort uses that promote convention, entertainment, residential, civic, and related activities. The district allows a wide variety of uses within both single-use buildings and mixed-use developments. The zoning regulations are designed to encourage urban scale development, pedestrian interaction with the development, and uses that promote integration of and connectivity between the Atlantic/Pacific Avenues Corridor and the new Convention Center. Specific regulations for the RT-3 District are available online at (go to Appendix A. Section 1520). </li></ul>
  31. 31. The Dome Project ROI (continued) <ul><li>SECTION 3. BACKGROUND : </li></ul><ul><li>Virginia Beach is the largest city in Virginia with a population approaching 440,000. The City is a major national contender in economic development, tourism and convention/business. Located in the state’s southeast corner, on the Atlantic Ocean, the Virginia Beach Metropolitan Statistical Area is the 27th largest in the United States with a regional population of more than 1.6 million people living in nearby cities including Norfolk, Hampton, Chesapeake, and Williamsburg. Virginia Beach is now an urban center, with tourism as one of its major industries. Virginia Beach is the #1 vacation destination in the Commonwealth of Virginia, and has become a year round tourism and convention destination. More people come to this city from September through May than in the traditional summer season of June through August. In 2006 , Virginia Beach hosted more than 2.75 million out-of-town visitors . These visitors spent $857 million during their stay for accommodations, meals, entertainment and other services, generating $73.2 million in direct revenue to the City . </li></ul><ul><li>Virginia Beach recently opened the new $202.5 million convention center (designed by Skidmore, Owings & Merrill) located three and a half blocks from the Dome site. The facility has a total of more than 500,000 gross square feet. The first phase of the facility opened in July 2005 and the full building program was completed in January 2007. From July 2005 through 2012, the new convention center has booked 146 conventions and meetings totaling 476,000 room nights and an estimated economic impact of $165 million . For the fiscal year 2006/2007, the building hosted 407 events including 51 meetings and conventions. For more information regarding Virginia Beach, please visit the website: . </li></ul>
  32. 32. The Dome Project RLI (continued) <ul><li>Recent Virginia Beach Accolades: </li></ul><ul><ul><li>􀀹 America’s Promise—The alliance for youth cited Virginia Beach among the “100 Best Communities for Young People.” (2005) </li></ul></ul><ul><ul><li>􀀹 The 2005 Digital Cities Survey ranked Virginia Beach ninth in the 250,000 or greater population category for the most technologically-advanced cities in America </li></ul></ul><ul><ul><li>􀀹 Readers Digest’s 2006 Listing of “America’s 100 Best” named Virginia Beach’s Boardwalk as a “Shore” fire bet for sun-packed boardwalk strolls. </li></ul></ul><ul><ul><li>􀀹 In its 6th Annual “America’s 50 Hottest Cities” publication, Expansion Management Magazine ranked Virginia Beach as the 11th best city in the nation for companies looking to expand or relocate in 2004. </li></ul></ul><ul><ul><li>􀀹 Census Bureau’s American Community Survey found that Virginia Beach has the 4th Highest Median Household Income among the nation’s 68 largest cities in 2004. </li></ul></ul><ul><ul><li>􀀹 In 2004 the National Policy Research Council named Virginia Beach as the Most Livable Large City for Women. </li></ul></ul><ul><ul><li>􀀹 Virginia Beach was ranked 4th in the list of best city governments by the National Policy Research Council in 2004. </li></ul></ul><ul><ul><li>􀀹 Sperling’s Best Places ranked Virginia Beach as the eighth “Least Stressful City” in 2004. </li></ul></ul><ul><ul><li>􀀹 Virginia Beach’s Department of Economic Development was ranked among the top ten in the nation according to Site Selection Magazine in 2005 </li></ul></ul><ul><ul><li>􀀹 In its 2002 annual list of “America’s Ten Best Cities,” Ladies Home Journal named Virginia Beach No. 1 overall among cities with a population of 300,000 or more, and No. 7 for government. </li></ul></ul><ul><ul><li>􀀹 Also of note, the Virginia Aquarium, located approximately one mile south of this Dome site, attracted more than 650,000 visitors last year. It is undergoing major renovations, which are expected to attract even more visitors in the future. </li></ul></ul>
  33. 33. The Dome Project RLI (continued) <ul><li>SECTION 4. EVALUATION CRITERIA : </li></ul><ul><li>Each RLI response will be evaluated based on information provided by prospective developers or development teams which address the following: </li></ul><ul><ul><li>1) Developer's current financial capacity to successfully complete a project of this scope and scale, including the most recent financial statements. </li></ul></ul><ul><ul><li>2) The developer shall demonstrate that they have successfully completed a minimum of two (2) comparable projects as lead or master developer. Please list the financial structure of each project including, but not limited, to the public and private contributions. </li></ul></ul><ul><ul><li>3) Photographs of previous developments completed within the past five (5) years, which are relevant to the scope and scale of this project. </li></ul></ul><ul><ul><li>4) Three (3) financial and three (3) developmental references, including addresses, telephone numbers, and relationship to the developer. </li></ul></ul><ul><ul><li>5) List of current active development projects that involves the developer. </li></ul></ul><ul><ul><li>6) Resumes of key members of the proposed development team. </li></ul></ul><ul><ul><li>7) Disclosure of any potential conflicts of interest that could be relevant to this project in any manner. </li></ul></ul><ul><ul><li>8) The developer should describe their preliminary concept (Concept of Development) of the type of entertainment venue(s)/development that would be successful in the Virginia Beach market. This Concept of Development should include at least preliminary consideration of how this Dome site project would relate to the growing tourism and convention business along the oceanfront (Atlantic and Pacific Avenues) as well as how this new development would relate to and complement the City’s new Convention Center. Additionally, responders are encouraged to discuss their approach to transforming this site into an entertainment venue that will regularly attract a sizeable percentage of the more than 1.6 million people who live in the surrounding region. </li></ul></ul>
  34. 34. The Dome Project RLI (continued) <ul><li>SECTION 5. EXCLUSIVE OPTION : </li></ul><ul><li>Subsequent to review of the responses to the above listed evaluation criteria; the VBDA will grant a six (6) month exclusive option to the selected developer to prepare a proposal for consideration by the VBDA, focusing on such factors as the type and sustainability of the proposed entertainment venue, project design (components and architecture), compatibility with the City’s vision for a successful entertainment venue which complements the growing tourism and convention business in the resort area, and the developer’s creativity and sensitivity to the market. It is the City’s and the Authority’s goal to both minimize the City’s financial participation in the project and to attain the most distinctive, highest quality entertainment based project possible. </li></ul><ul><li>SUBMITTAL OF RESPONSES: </li></ul><ul><ul><li>1. The responses should include one original and 10 copies and shall be placed in a sealed envelope or package for submittal. </li></ul></ul><ul><ul><li>2. All responses shall be received and time-stamped in the office and location described below no later than 3:00 PM Eastern Standard Time, December 6, 2007. </li></ul></ul><ul><li>3. All responses are subject to public disclosure under the Virginia Freedom of Information Act. To the extent permissible by law, the Development Authority agrees to keep confidential any confidential proprietary information included in a response, provided that (1) the responder identifies the confidential proprietary portions of the response; (2) the responder identifies as confidential and proprietary only those portions of the submittal that actually are confidential and proprietary. Responders shall not designate their entire response as confidential and proprietary, nor shall they so designate information that is already public. </li></ul>
  35. 35. Local Expertise <ul><li>Theresa Young </li></ul><ul><ul><li>Broker/Owner of RealTour® Realty; 27 years in Real Estate; licensed in Virginia and North Carolina </li></ul></ul><ul><li>Phil Young </li></ul><ul><ul><li>Real Estate Professional; 6 years US NAVY; 15 years Government contractor. </li></ul></ul>
  36. 36. Strategic Partners <ul><li>Norton & Associates </li></ul><ul><ul><li>Investment Management, Development & Consulting </li></ul></ul><ul><li>The McKinsey Construction Corporation </li></ul><ul><ul><li>Construction Project Management and Completion </li></ul></ul>