Dovetail presentation

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Presentation for a Development Project in an Development Class at Sauder School of Business

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  • TEAM INTRO  PASSION and CAPABILITY
  • WHY MOSTLY TWO BEDROOMS? Explain RENTAL/FAMILY/VALUE/PRICEPOINT
  • WHY MOSTLY TWO BEDROOMS? Explain RENTAL/FAMILY/VALUE/PRICEPOINT
  • Talk about how many sqft retailKEY TO TALK ABOUT MIX OF USESHOW THEY SYNERGIZEMIX OF BIG BUSINESS (stable Cash Flows) vs ETHNIC/LOCAL
  • Talk about how many sq ft retail, TALK ABOUT WHY THESE TENANTS WHY THEY ARE SEXYMOSTLY REAL BUSINESS FOR CREDIT, BUT SOME STALLS OPEN FOR LOCALS DIVERSIFY CREDIT* Address Structural Column Spacing and FloorplateDetailsTruck Dock Bays -Truck Turning Accommodations (*Capers access?)Ingress, Egress Details / Entrances to Local Streets
  • Talk about how many sqft retail
  • Talk about how many sqft retail
  • Talk about how many sqft retail
  • Talk about how many sqft retail
  • Talk about how many sq ft retail*Expected Turnover of TenantsLeasing and/or Sales StrategyUnit Sales Velocity / Absorption
  • Talk about how many sq ft retail $3.45*how is the retail space divided? (floor plan shows small divided spaces?), and no separate elevators?*Expected Turnover of TenantsLeasing and/or Sales StrategyUnit Sales Velocity / Absorption
  • *Talk about Developer Bonus Plan
  • *describe Green Roof in more detail
  • EXPLAIN EXPLAIN EXPLAIN
  • Talk about residents getting all the shit they need, office workers shopping at the retail, etc
  • Milton’s theoryMaximum affordability given:$20,000 down30 year amort3.5% interest200 month condo fees500 year in heating2000 year prop tax
  • -explain timing of contributions***-assume a holding period equal to the project timeline; sale at completion*Discuss:Current Interest Rates/$ AvailabilityCredit Strength of BorrowerCreditworthiness of Tenancy
  • *should include After-tax rates b/c listed in instructions page but was not in report*less metrics? can explain breakdown of value?*explain how derived discount rate. (ie-”IRR=cap rate + growth rate?”
  • Dovetail presentation

    1. 1. Fit Together Easily.<br />
    2. 2. Fit Together Easily<br />220 Residential Units<br />17 Retail Spaces<br />91K sqft Office Spaces<br />LEED Gold<br />
    3. 3. Timeline<br />Purpose<br />DoveTail<br />Pricing & Analysis<br />Returns<br />Overview<br />Goals<br />Pricing<br />Investments<br />Construction<br />Consumer<br />Profits<br />Residential<br />Marketing <br />Retail / Office<br />Culture<br />
    4. 4. Timeline<br />Purpose<br />DoveTail<br />Returns<br />Pricing & Analysis<br />Overview<br />Goals<br />Pricing<br />Investments<br />Construction<br />Consumer<br />Profits<br />Residential<br />Marketing <br />Retail / Office<br />Culture<br />
    5. 5. Purpose<br />People<br />Profit<br />Community<br />Environment<br />Retail Services for Students<br />Achieve LEED Gold<br />Self-Sustaining Community<br />Short-Timeline for Exit<br />Enhance Public Transportation<br />Sustainable Long Term<br />Create Sense of Place<br />High Price per Sq Ft<br />Enhance Space with Greenery<br />Live, Work, Eat, Play<br />Provide Public Space<br />Sell-Ability<br />
    6. 6. Timeline<br />Purpose<br />DoveTail<br />Pricing & Analysis<br />Returns<br />Overview<br />Goals<br />Pricing<br />Investments<br />Construction<br />Consumer<br />Profits<br />Residential<br />Marketing <br />Retail / Office<br />Culture<br />
    7. 7. DoveTail Project<br />
    8. 8. Construction<br />87,000 SqFt Site<br />December 2014<br />March 2011<br />10 Stories<br />Bus Stop<br />85% SCR<br />Bike Racks<br />Sunny Courtyard<br />Pre-Construction<br />Mar 11 – Feb 12<br />Construction<br />Mar 12 – Feb 14<br />Sales/Leasing<br />Mar 14 – Dec 14<br />University Ave<br />
    9. 9. Residential<br />
    10. 10. Residential<br />220 Units<br />170 2BDR<br />50 1BDR<br />950-1050 Sq Ft<br />650-750 Sq Ft<br />$418,000 - $462,000<br />$292,000 - $337,000<br />330 Parking Stalls<br />$80.9M Revenue<br />
    11. 11. Residential<br />2BR 1100 SqFt<br />1BR 700 SqFt<br />2BR 900 SqFt<br />2BR 1100 SqFt<br />
    12. 12. Retail & Office<br />Retail One<br />Retail Two<br />Retail Three<br />$2.2M NOI, 145 Parking Stalls <br />
    13. 13. Retail & Office<br />Retail One<br />18,000 sq.ft<br />Frontage on University Avenue<br />High vehicle and foot traffic<br />Fast-food / take-out retailers<br />Bus stop<br />
    14. 14. Retail & Office<br />Retail One<br />Retail Two<br />Retail Three<br />
    15. 15. Retail & Office<br />Retail Two<br />12,300 sq.ft<br />Courtyard with Public Space<br />Lounge Seating<br />Protection from street noise<br />Accessible from side streets<br />
    16. 16. Retail & Office<br />Retail One<br />Retail Two<br />Retail Three<br />
    17. 17. Retail & Office<br />Retail Three<br />18,000 sq.ft<br />Accessible from side streets<br />Increased amenities<br />Large tenants <br />
    18. 18. Office<br />
    19. 19. Office<br />273 Parking Stalls<br />NOI $3.45M<br />91,092 SF over 2 Floors<br />Ease of access<br />Proximity to public transit<br />On-site shower facilities for bike commuters<br />Gym for employee use Incentive membership plan<br />Green building LT cost savings<br />
    20. 20. Sustainability<br />LEED Gold<br />Sustainable Site Alternative Transportation<br /> Green Roof<br />Water Efficiency Recycled water, and Low flow appliances<br />Recycled Materials & Waste Management during Construction and Demolition.<br /> Environmental Quality  maximize daylight, views, and open space ventilation.<br />
    21. 21. Sustainability<br />Bike Racks<br />Green Roof<br />Bus Stop<br />2 minute walk or less for residents, shoppers, and employees<br />Communal access to urban agriculture and therapeutic gardening<br />Water capture, reduced Heat Island Effect<br />Ease of access for retail users and office commuters <br />
    22. 22. Culture<br />Courtyard<br />Tenant Mix to Promote Sitting<br />Public Seating<br />Collaboration with the University<br />Sunlight<br />University Art<br />Tenants: No obnoxious smells, late hours, etc.<br />
    23. 23. Synergies<br />Work<br />Live<br />Shop<br /> Retail for both commuters, workers, residents<br />Minimize Cannibalization<br />Leverage University Community and liveliness<br />Transportation hubs near retail<br />Ability to live fully in Community, low barriers <br /> to external <br />
    24. 24. Timeline<br />Purpose<br />DoveTail<br />Pricing & Analysis<br />Returns<br />Overview<br />Goals<br />Pricing<br />Investments<br />Construction<br />Consumer<br />Profits<br />Residential<br />Marketing <br />Retail / Office<br />Culture<br />
    25. 25. Pricing - Consumer<br />25-32<br />$94,000 (2013)<br />Urban, Local<br />Emerging Tech / Law<br />Median Affordable $333,000<br />Average Affordable $408,000<br />2BR $418-462K<br />1BR $292-337K<br />Median Salary $81,400<br />Average Salary $94,000<br />
    26. 26. Marketing Strategies<br />Hire External<br />Enable Public<br />Enable Realtors<br />Synergies<br />University Link<br />
    27. 27. Timeline<br />Purpose<br />DoveTail<br />Pricing & Analysis<br />Returns<br />Overview<br />Goals<br />Pricing<br />Investments<br />Construction<br />Consumer<br />Profits<br />Residential<br />Marketing <br />Retail / Office<br />Sustainability<br />
    28. 28. Deal Structure<br />Developer - $5M<br />Equity - $15.6M<br />Mezzanine- $20M<br />Cons. Loan - $125M<br />$3.99M (20.16% IRR)<br />$1.92M (12% Int)<br />$12M (33% IRR)<br />$7.6M (4.2% Int)<br />
    29. 29. Financial Performance<br />$15.8M Profit<br />Retail Value $33.8M<br />Office Value $53.8M<br />Before Tax Return on Equity=79.77%<br />Equity IRR= 20.16%<br />Residential Value $80.9M<br />After TaxReturn on Equity=57.03%<br />Equity IRR= 15.15%<br />TOTAL COSTS$151.2M<br />TOTAL VALUE$167.8M<br />
    30. 30. Conclusion<br />
    31. 31. Thank You!<br />HERBERTS | HVIDSTEN | SMYTH | WOLANSKI | BARNARD | WEISS<br />
    32. 32. Appendices<br />
    33. 33. Appendices<br />
    34. 34. Appendices<br />
    35. 35. Appendices<br />
    36. 36. Appendices<br />
    37. 37. Appendices<br />

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