2014 ULI/Butcher Multifamily Housing Forum--Cynthia Parker

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Cynthia Parker, President and CEO, BRIDGE Housing Corporation

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2014 ULI/Butcher Multifamily Housing Forum--Cynthia Parker

  1. 1. Bending the Cost Curve on Affordable Rental Development Cynthia A. Parker President & CEO, BRIDGE Housing
  2. 2. What We Do     2 Real estate development Property management Asset and portfolio management Resident and community services
  3. 3. BRIDGE Housing Results   85+ communities  37,000 residents  3 14,000+ homes and apartments California and the Pacific Northwest
  4. 4. Size and Scope  80 projects asset managed (8,300 homes)  62 projects property managed (5,700 homes)  Over $1 billion in pre-development or construction activity  Offices in San Francisco, San Diego, Orange County, Portland  ~415 employees 4
  5. 5. Geographic Footprint 5
  6. 6. High Costs in Competitive Markets  Provides huge pubic benefit  BUT high construction costs  Prevailing wage / project labor agreements  Large mixed-use TODs = infrastructure costs 6
  7. 7. COMM22, San Diego Project Summary   130 family apartments  70 senior apartments  Day care facilities  Market-rate live/work lofts  Commercial, retail, office  Significant infrastructure upgrades  7 4 acres $84.4MM (infrastructure, family, seni or)
  8. 8. Fell Street Apartments, San Francisco Project Summary   $17MM renewal project  Aging building systems replaced  600 new windows  Solar hot water and solar electric  8 82 family apartments Ready for 20 more years
  9. 9. Other Factors that Drive Cost  Construction type  Market conditions  Regulatory oversight and compliance  Complexity of financing  Cost of single asset, usually LIHTC financing  Resident hire provisions (Potrero, Jordan Downs)  Costs for BRIDGE projects now in construction range from $274 to $495 per s.f. 9
  10. 10. Tale of Two Developments  Pottery Court, 113 homes in Lake Elsinore • $208K per door  Natoma, 60 homes in San Francisco • $500K per door 10
  11. 11. Cost-Cutting: Development  Different financing approaches • Enterprise-level financing • Equity fund • Simplifying / reducing # of sources  Modular and off-site construction • Saves money and time • Design replication  Construction management  Procurement and bulk buying 11
  12. 12. Cost-Cutting: Operations  The Big Reach • Reduce water and energy consumption 20% by 2020 • Examples: drought-tolerant landscaping, solar hot water and electric  Streamlining operational systems • Examples: compliance management, rent collection and deposits 12
  13. 13. Bending the Cost Curve on Affordable Rental Development Cynthia A. Parker President & CEO, BRIDGE Housing

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