This is the presentation by Architect Simon Ha, from Steinberg Architects, that accompanied a webinar discussing the following issues: Learn the design, economic, and policy issues in high-density multi-family housing design in podium (light wood frame over concrete) construction and high-rise construction. In many of our growing cities, there has been a proliferation of medium to high density housing production. The form of the new housing is typically five to seven stories with a mix of Type I concrete podium at the base and Type V or III light wood construction above. The webinar originally aired on 11/6/17

1. Multi-Family Design in Type V/III Podium vs. Type I High-Rise Construction

2. Multi-Family Design in Type V/III Podium vs. Type I High-Rise Construction
Photo Credit: Simon HaPhoto Credit: Simon Ha

3. Image Credit: Urbanize LA

4. 2007 2014
Image Credit: Harley Ellis DevereauxImage Credit: KPF

5. Photo Credit: Buzzbuzzhome.comImage Credit: Studio Daniel Libeskind
2007 2014

6. Image credit: GBD Architects
2007
(Portland, OR)

7. Image Credit: Jones Architecture, GBD ArchitectsPhoto Credit: Andre Bonacin
2007 2017

8. Learning Objectives

9. Learning Objective #1
Understand and describe the design challenges and opportunities in designing high-density housing
in podium and high-rise construction.
Learning Objective #2
Understand and describe the economics of producing high-density housing in podium and high-rise
construction.
Learning Objective #3
Discuss the potential policies that may impact housing production.
Learning Objective #4
Understand and describe the basics of multi-family real estate development.

10. Speaker: Simon Ha, AIA, LEED AP
Partner @ Steinberg, Los Angeles, CA
AIA HCD Chair, DLANC Planning and Land Use, Re:Code LA

11. Why the shift from high-rise to podium housing?

12. Why the shift? Building Code change to allow mixed-use
buildings in 2007, 2010, 2013, 2016.
CBC Section 510 - Special Provisions
510.2 Horizontal Building Separation Allowance
Buildings are separate if:
1. 3 hour horizontal assembly
2. below horizontal assembly is max. 1** story
3. below horizontal assembly is Type IA
4-7. other requirements: shafts, occupancy, sprinklers, max height etc.
City of LA: Code Modification to allow 2 stories above grade
CBC 2016 eliminated limitations on stories below horizontal separation

13. 7
6
5
4
3
2
1
Image Credit: TCA Architects

14. Image Credit: TCA Architects

15. Image Credit: Urbanize LA

16. Image Credit: Urbanize LA

17. Image Credit: Urbanize LA

18. “Not every building can be a
landmark, of course, but as
Downtown Los Angeles is in the
midst of a development boom
that will see numerous parking
lots replaced by residential
and other projects, one of the
most frequently asked questions
is, why is the crush of midrise
residential buildings so
unspectacular?”

19. Image Credit: Urbanize LA

20. Image Credit: GMP Architects

21. Image Credit: Tagawa Smith Martin

22. Image Credit: Tagawa Smith Martin

23. Development of Type III Podium vs. Type I High-Rise Construction

24. High-risePodium

25. Podium High-rise
Type III over Type I: Max Height 85’ Type I: Max Height Unlimited
168 units @ 625 sf per unit = 105,000 sf
Construction Hard Cost:
approximately $400/sf net rentable
105,000 sf x $400 = $42,000,000
$250,000 per unit
251 units @ 643 sf per unit = 161,391 sf
Construction Hard Cost: $385,800 per unit
approx. $600/sf net rentable
161,393 sf x $600 = $96,835,800
$385,800 per unit

26. Podium High-rise
Type III over Type I: Max Height 85’ Type I: Max Height Unlimited
168 units @ 625 sf per unit = 105,000 sf
Hard Cost: $250,000 per unit
Soft Costs: @ 30% = $75,000 per unit
Land Cost: $13.44m/168 = $80,000 per unit
Total Cost per unit = $405,000
251 units @ 643 sf per unit = 161,391 sf
Hard Cost: $385,800 per unit
Soft Costs: @ 30% = $115,740 per unit
Land Cost: $13.44m/251 = $53,545 per unit
Total Cost per unit = $554,285

27. Podium High-rise
Type III over Type I: Max Height 85’ Type I: Max Height Unlimited
168 units @ 625 sf per unit = 105,000 sf
Total Cost per unit = $405,000
Total Cost of building = $68,040,000
Gross income: $3.25 x 105,000sf = $341,250
$341,250 x 12 months x 95% (5% vacancy) =
$3,890,250
Net Operating Income (NOI)
@30% operating expense:
= $3,890,250 x 70% = $2,723,175
Value = NOI / Cap Rate
@4.0% Cap Rate, Value = $68,079,375
@4.5% Cap Rate, Value = $60,515,000
251 units @ 643 sf per unit = 161,391 sf
Total Cost per unit = $554,285
Total Cost of building = $139,125,000
Gross income: $4.33 x 161,391sf = $698,823
$698,823 x 12 months x 95% (5% vacancy)
= $7,966,582
Net Operating Income (NOI)
@30% operating expense:
= $7,966,582 x 70% = $5,576,607
Value = NOI / Cap Rate
@4.0% Cap Rate, Value = $139,415,175
@4.5% Cap Rate, Value = $123,924,600

28. Podium High-rise
Type III over Type I: Max Height 85’ Type I: Max Height Unlimited
168 units @ 625 sf per unit = 105,000 sf
Total Cost per unit = $405,000
Total Cost of building = $68,040,000
Rent: $3.25/sf or $2,275 per month
(700sf 1br)
251 units @ 643 sf per unit = 161,391 sf
Total Cost per unit = $554,285
Total Cost of building = $139,125,000
Rent: $4.33/sf or $3,031 per month
(700sf 1br)

29. How does land price relate to development costs?

31. 2012: $221 per square foot
2015: $585 per square foot (Increase of 264%)
2017: $893 per square foot (Increase of 404% from 2012 & Increase of 152% from 2015)

32. How much can I pay for the land?
Land Price = Estimated Value – Cost of Production – Profit
What happens when the land price doubles?
Podium High-rise
168 units @ 625 sf per unit = 105,000 sf
Hard Cost: $250,000 per unit
Soft Costs: @ 30% = $75,000 per unit
Land Cost: $26.88m/168 = $160,000 per unit
Total Cost per unit = $485,000
251 units @ 643 sf per unit = 161,391 sf
Hard Cost: $385,800 per unit
Soft Costs: @ 30% = $115,740 per unit
Land Cost: $26.88m/251 = $107,091 per unit
Total Cost per unit = $608,631

33. Podium High-rise
Type III over Type I: Max Height 85’ Type I: Max Height Unlimited
168 units @ 625 sf per unit = 105,000 sf
Total Cost per unit = $485,000
Total Cost of building = $81,480,000
Rent required: $3.89
1br @ 700 sf
Increase from $2,275 to $2,723 = 19.6%
Net Operating Income (NOI)
@30% operating expense:
= $4,656,000 x 70% = $3,259,200
Value = NOI / Cap Rate
@4.0% Cap Rate, Value = $81,480,000
251 units @ 643 sf per unit = 161,391 sf
Total Cost per unit = $608,631
Total Cost of building = $152,766,381
Rent required: $4.74
1br @ 700 sf
Increase from $3,031 to $3,318 = 9.4%
Net Operating Income (NOI)
@30% operating expense:
= $8,729,507 x 70% = $6,110,655
Value = NOI / Cap Rate
@4.0% Cap Rate, Value = $152,766,381

34. Knee-jerk Reaction Policy:
Why can’t all buildings be high-rise?

36. Image Credit: Simon Ha

37. Podium High-rise
1 bedroom: $2,275 per month
2 bedroom: $3,250 per month
1 bedroom: $3,031 per month
2 bedroom: $4,330 per month
Housing is a product. We need housing at different price points.

38. High-risePodium
Active uses above retail at sidewalk level for additional
“Eyes on the street”
High-rise with above grade parking podiums
contribute to bad urban design
Photo Credit (both pictures): Simon Ha

39. Variety of high-rise and low-rise building and mix of uses are appropriate for DTLA.
Photo Credit: Google Earth

40. Image Credit: Steinberg

41. Image Credit: Steinberg

42. Image Credit: Simon Ha
Prohibition impacts:
1. Slow down housing production in DTLA
2. Decrease investor confidence due to anti-
development measures by the city
3. Only allowing high-rise housing with high rents
would result in an exclusive neighborhood only for
the high income individuals
4. Slowed the renaissance of DTLA: urban growth is
organic and takes decades.
• Rising land costs priced out podium buildings
organically.
• DTLA currently has 11,104 units under
construction and 29,891 units proposed.

43. Why are podium buildings so ugly?
Good design can be found in all building types.
Good design does not have to expensive.

44. “Not every building can be a
landmark, of course, but as
Downtown Los Angeles is in the
midst of a development boom
that will see numerous parking
lots replaced by residential
and other projects, one of the
most frequently asked questions
is, why is the crush of midrise
residential buildings so
unspectacular?”

45. Podium
Image Credit: Steinberg

46. Podium
Image Credit: Steinberg

47. Podium
Image Credit: Steinberg

48. Podium
Photo Credit: Paul Vu

49. Podium
Image Credit: Skid Row Housing Trust

50. Q&A