Peter porraro, Multifamily Development Today

1. ULI Spring 2012
TOD Development
West Hempstead, Long Island

2. West 130 – TOD Case Study
• Market Analysis - Market Area; Demand Factors; Supply
Factors
• Site Selection
• Land Use and Zoning
• Product Design and Site Plan
• Financing and Investment
• Construction

3. West 130
MARKETING ANALYSIS

4. Long Island Regional Map
• Starts just 18 miles east of Manhattan
• Two Counties – Nassau (287 square miles) & Suffolk
(911 square miles)
• Extensive public transportation network (LIRR)
• 1,180 miles of shore-line

5. Rental Housing - Metrics
Long Island Demographics
Population: 2.8 million
Total Employment: 1.2 million
Unemployment: 7.2%
Average HH Income: $175,000
MF Rental Completions
2006 1,016
2007 -
2008 -
2009 226 84% of existing rental housing stock was
built prior to 1979 (REIS)
2010 -
2011 210
Source: Long Island Housing Index 2007; REIS Report 2011

6. West 130
SITE SELECTION

7. Site Acquisition
• 1960’s Hotel
• “Hourly Hotel”
• Source of crime
• Community eyesore

8. West 130 Location Map

9. Site Aerial

10. Rail and Bus Network
•Station literally outside
front door
• 50 minutes to Penn
Station

11. West 130
LAND USE AND ZONING

12. Benefits to Community
• Permanent Closure and Elimination of the Courtesy Hotel and source
of crime/blight
• New, Distinctive Gateway to West Hempstead
• Creation of Sense of Place: with Attractive Building, Enhanced
Streetscape, and Sidewalk Improvements
• New Choice of Upscale Apartment Living
• Catalyst for Further Redevelopment and Community Improvements
• Revitalization of West Hempstead LIRR train station
• Generate a positive trend in neighborhood real estate values
• Set example of a Public / Private Collaboration

13. Timeline
Entitlement Timeline
March 2006 Purchase Contract
November 2006 Submit Rezoning Application
November 2008 SEQR Approval (State
Environmental Quality Review)
December 2008 Adoption of CA-S Zone &
Rezoning Approval
June 2009 Site Plan Approval
July 2009 IDA Inducement (PILOT)
October 2010 Building Permit Approval
February 2011 Close and Start Construction

14. Entitlement Process

15. West 130
PRODUCT DESIGN/SITE PLAN

16. Project Description
Building Program
Size: 3 Acres
Density: 50 units per Acre
Building Type: 5A Construction
4-story over 2 levels parking
Units: 150 Market Rate
Mix: 1 Bedroom: 35%
2 Bedroom: 57%
3 Bedroom: 8%
Average Unit Size 1,085 SF
Amenities: 4,000 SF Clubhouse; Fitness
Center; I-lounge; Café; Wii-
theatre; Landscaped
Courtyards and Pool

17. Floor Plan

18. Underground Parking Garage

19. West 130
FINANCING AND
INVESTMENT

20. Project Cost Summary
Units 150
Cost Item Total Per Unit Per SF
• Hard Cost: $28, 500,000 $190,000 $175
• Land/Soft Cost: $15,500,000 $103,333 $ 53
• Total Costs: $44,000,000 $293,333 $228
Average Rent/SF: $2.46
Average NSF: 1,085
Average Rent/Home: $2,670

21. Capitalization
Units 150
Dollar % of Total Per Unit
Category Amount Cost
Debt
Total Construction Debt: $28, 500,000 65% $190,000
Equity
Total Equity: $15,500,000 35% $103,333
Total Capitalization $44,000,000 100% $293,333
Un-Trended
Yield on Total Project Cost: 8.0%+
Market Cap Rates: 4.75%

22. West 130
CONSTRUCTION

23. May 2011

24. May 2011

25. May 2011

26. November 2011

27. November 2011

28. August 2011

29. February 2012

30. April 2012

31. Vision Long Island Smart Growth Award Recipient