This document provides a summary and analysis of a proposed transit-oriented development project in Hato Rey, Puerto Rico called Roosevelt Station Parcel A. It discusses the goals of transit-oriented development, provides background on transportation in Puerto Rico, analyzes the market potential and demand for the site, and makes recommendations. Key points include that the site is well-located next to the new Roosevelt light rail station, demand for housing is increasing due to demographic and transportation trends, and the development should include mixed uses, densities, and design that reduces car dependency and promotes transit, walking and biking.

1. Request For Proposal
Roosevelt Station, Parcel A
Compañía Tres Ríos
TRANSPORTATION ORIENTED
DEVELOPMENT ANALYSIS
BY ADAM GREENFADER

2. TABLE OF CONTENTS
GOAL OF THIS STUDY
ABOUT AXYON
GENERAL ASSUMPTIONS
CURRENT ECONOMIC OUTLOOK
KEY FACTS
MARKET AREA
CENSUS DATA
SITE LOCATION
HATTO REY
PUBLIC TRANSPORTATION PUERTO RICO
TREN URBANO
DEVELOPMENT & TRANSPORTATION
S.W.O.T. ANALYSIS
STRENGTHS
WEAKNESS
OPPORTUNITIES
THREATS
TARGET PROFILE
CURRENT COMPETITION
HOUSING DEMAND
FUTURE PROJECTS
PRICE POINT ANALYSIS
CONCLUSION
ADDENDUM

GENERAL RECCOMENDATIONS

SUCCESSFUL TOD EXAMPLE

INTERIOR DESIGN RECCOMENDATIONS

GUAYNABO CONDOMINIUMS

LUIS ABREU COMPARABLE SALES REPORT

FUTURE PROJECT LIST
PG 3
PG 3
PG 4
PG 5
PG 6
PG 7
PG 8
PG 10
PG 11-14
PG 15
PG 16
PG 17-20
PG 21-26
PG 27
PG 27-30
PG 30-33
PG 34-37
PG 38-48
PG 49
PG 50-51
PG 52-55
PG 56
PG 57-59
PG 60
PG 61-64
PG 65-66
PG 67
PG 68
2
Adam Greenfader
All Rights Reserved

3. TRANSIT ORIENTED DEVELOPMENT
Transit Oriented Development (TOD) is defined as development built within proximity
to, and reliant upon, transportation. A key characteristic of TOD is that it is located
within ¼ of a mile from a transit station. The goal of TODS should be to :



Place commercial, housing, jobs, parks, and civic uses within walking
distances of transit stops.
Create pedestrian-friendly street networks that directly connect destinations.
Provide a mix of housing types, densities, and costs.
According to Volinski, Hendricks, and Goodwill from the Center for Urban
Transportation Research at the University of Florida, there are several conclusions that
can be drawn about TODS:
1. The acceptance of TOD is an incremental process that can take decades.
2. TOD will have greater success when combined with other municipal tax
incentives, parking restrictions, density bonus, etc.
3. In order for TOD to be successful, it must capture the traditional suburban
amenities such as the perception of quietness, spaciousness, light, privacy, and
safety.
4. TOD must allow residents to truly rely less on automobiles and make most
routine trips on foot…thus avoiding the need for parking.
HISTORY OF TRANSPORTATION- PUERTO RICO
As of the early 1900’s, Puerto Rico enjoyed public transportation that was centered on
rail. The rail connected the entire island. For many years, this was the principal mode of
travel for both individuals and freight.
Puerto Rico, after the Second World War, began to decentralize. The train was stopped.
Much of the island’s major road construction was undertaken in the 1960’s and 70’s. By
the 1980’s, most the island’s transportation was based on the private automobile and
truck.
Today, there is no island wide rail transportation. There exists a fleet of public and
private “mini-buses” that transport individuals. Inter-island airfare is limited and very
costly.
3
Adam Greenfader
All Rights Reserved

4. SITE LOCATION
The proposed Roosevelt Parcel A site is located in the heart of Hato Rey. It is located
on Avenida Muñoz Rivera between Avenida Roosevelt and Eleanor Roosevelt. The site
is adjacent to the new Roosevelt light rail station. The 500- meter “zone of influence”
surrounding the site contains:
HATO REY TRANSPORTATION FUTURE
The future of Hato Rey looks quite favorable. This is due to the following:
1.
2.
3.
4.
5.
6.
Demographic Shifts – Puerto Rico
Traffic Blues
New Entertainment, Retail, and Commercial Developments
Government Density Zoning
Environmental Consciousness
Transportation Improvements
1. Demographic Shifts – Puerto Rico
Like the United States, the population of Puerto Rico is getting older. As the Baby
Boomers´ children leave their homes, the Boomers are finding themselves with “too
much space”.
4
Adam Greenfader
All Rights Reserved

5. Numerous studies have revealed that Baby Boomers in Puerto Rico want “no lawns to
cut”, less space to clean, and non-vehicular access to shopping and leisure.
2. Traffic Blues
In Puerto Rico, long commuting times have become the norm. There are three main
municipalities that account for the majority of vehicular circulation in/out of the city
during weekdays: Bayamón, Caguas, and Carolina.
On an island that is only 35 miles by 100, it is amazing to think that many people
regularly leave their homes at 5:15 a.m. in order to be at the office by 9:00 am….for only
a 30 mile commute.
5
Adam Greenfader
All Rights Reserved

6. 3. New Entertainment, Retail, and Commercial Developments
Unlike previous decades, Hato Rey is currently undergoing a significant amount of
development in entertainment, retail, and commercial uses. Particularly, the new
coliseum (located within ½ mile of the site) promises to bring much needed nighttime
activity to the area. This will most likely generate ancillary support services, restaurants,
bars, and evening retail.
6
Adam Greenfader
All Rights Reserved

7. Banco Popular, the largest bank in Puerto Rico, is currently undertaking a significant
amount of new entertainment, office, and retail development in Hato Rey – all within ¼
mile of the Roosevelt site. This includes 36,000 square feet of restaurant and retail space,
6 movie theatres, 73,000 square feet of commercial space, and various new parking
structures.
4. Government Density Zoning: Opportunity
The government recently enacted a special overlay zone to increase density in the
metropolitan area. This overlay zone should provide financial incentives for inner city
development. Consequently, Hato Rey should begin to see increased density, more
diverse communities and better land usage.
7
Adam Greenfader
All Rights Reserved

8. 5. Environmental Consciousness
Puerto Ricans today are becoming increasingly aware of their finite land resources and
the cost of uncontrolled development on their environment and quality of life.
Homebuyers are demanding that developments stop plowing over green areas. This
environmental awareness might make homebuyers think twice about living in a
8
Adam Greenfader
All Rights Reserved

9. community that was once agricultural land. More importantly, they will seek out
metropolitan developments that re-forest or are environment friendly.
6. Transportation Improvements
Today, Puerto Rico is introducing an “Integrated Transportation System” or ATI. This
system includes a coordinated transit effort between a new rail line, bus service, and
water taxi or “aqua expreso”. This new investment should begin to address some of the
transportation issues that face metropolitan residents.
9
Adam Greenfader
All Rights Reserved

10. TREN URBANO
It is projected that by September 2004, the Tren Urbano will begin to service the
metropolitan area. The Tren Urbano is a heavy rail train. A heavy rail train is
characterized by its large capacity to transport individuals. It also runs independent of
vehicular circulation.
The Tren Urbano will operate from Bayamón to Santurce. The Tren Urbano will make a
total of 13 stops. It will take approximately 25 minutes to service all the stops. The rail
frequency will be approximately every six to eight minutes.
10
Adam Greenfader
All Rights Reserved

11. The Tren Urbano has the capacity form 170 people per car. There are a total of four/six
cars per train. Daily ridership is initially projected at 30,000-40,000 passengers. The
ridership is projected to increase at a rate of 10%-15% per year. The train has capacity to
transport over 150,000 people per day.
Increased ridership will be a direct result of:




Augmented density in the locations adjacent to the rail stations.
Changes in social attitudes about public transportation.
Inter-modal transportation systems.
More accessible park and ride facilities.
Currently, there are “park and ride” facilities for approximately 4,000 vehicles. This does
not provide sufficient parking for the projected need.
Unlike road congestion, increased rail ridership will only increase the Tren Urbano’s
appeal to the masses. The cost of an individual rail ride will be subsidized by both local
and federal government. This should encourage initial ridership. A ticket for the Tren
Urbano is projected to be at around one dollar. This will include the use of other public
transportation such as busses and the “aqua expresso”.
11
Adam Greenfader
All Rights Reserved

12. According to the ex-secretary of Transportation, Carlos Pesquera, the key to the Tren
Urbano’s success will be based on inter-modal transportation - the use of multiple
transportations in a single commute. For example, if one drives to a “park and ride”,
jumps on the Tren Urbano, and then walks to work, the commute can be said to have
three inter-modal participations.
According to Mr. Pesquera, the network of private mini-vans known as “Pisa y Corres,”
municipal trolleys, and AMA buses will play a significant role in transporting individuals
to the Tren Urbano stations. “We must see the entire system as one inter-connected network, like
the circulation system in the human body. Distances will shrink. One location will nourish another to
create one cohesive community”, quotes Mr. Pesquera.
DEVELOPMENT & TRANSPORTATION:USA
Development and Mass Transportation
“While in 1910 no one dared advertise a home that wasn’t within an easy walk to a train depot, by the
1920’s no one dared offer one that didn’t have a garage and easy road access,” note Michael Bernick
and Robert Cerevo in their book Transit Villages in the 21st Century.
Prior to the invention of the automobile, trolleys and real estate projects were often
bundled together. Transit itself was usually the loss leader that allowed a huge windfall
12
Adam Greenfader
All Rights Reserved

13. profits from land sales. Developers were thus encouraged to build high density on small
lots. By building density, a developer would allocate risk amongst many consumers.
For the home buyer, mortgage as we know it today, did not exist. Capital was usually
available only in very short term notes. These early mortgages often required up to 50%
down payments.
Note: Unlike, single family homes, high density projects require more construction
financing. Risk also increases because of slower cash flows.
Development and Automobile
After the 1920’s, there were three key changes to residential real estate development:
1) The automobile - The automobile facilitated increased mobility. This allowed
developers to build single family units on cheap land - outside of the city.
2) Mass construction of housing - After World War II, Levitt introduced a
revolutionary mass construction system. Homes that once took years to build
could now be delivered within weeks.
3) The secondary financial market - For the consumer, the secondary market
made money readily available. Mortgages could be obtained with 80% loan
to values and the GI Bill made qualifying for a home significantly easier.
4) Government subsidies for road infrastructure – massive highway projects
were undertaken as a result of the new deal in the 1930’s. These projects put
thousands of people back to work and developed what today is the national
highway system.
Suburban Development
The suburban development of the last 50 years has created a growing concern on: traffic
congestion, long commutes, air pollution, oil prices, farmland depletion, division of
neighborhoods, loss of open space, and the deterioration of social networks.
Statistics from the Home Builders Association Transportation Committee reveal that
every new home creates 10 new vehicle trips daily. Attempts to alleviate the problem of
long travel commutes by constructing more highways almost always has led to more
sprawl, and eventually, more congestion.
Statistics confirm what every commuter knows intuitively - more cars than ever are on
the road. Americans spent 4.5 million hours stuck in commuter traffic, a 325% increase
since 1982. Rush hour has grown to six hours a day, twice as long as 1982.
Uncontrolled Sprawl
13
Adam Greenfader
All Rights Reserved

14. If sprawl is uncontrolled, an estimated $927 billion of new roads will be needed to
accommodate growth in the United States over the next twenty-five years. In a scenario
where growth is concentrated in existing metropolitan areas, this cost can be reduced by
$110 billion (Transportation Research Board. 2000. Cost of Sprawl).
Suburban Development: Puerto Rico
In the last two decades, Puerto Rico has seen the rise (and perhaps fall) of the suburban
communities. A prime example is the Sabanera project in Cidra developed in the early 1990’s
by Frederico Stubbe.
Many construction lenders at the time did not think Cidra was a viable market for 200 plus
homes ranging from $180,000-$285,000. They felt that Cidra was too far from the
metropolitan area and that consumers would not make the “sacrifice” and drive. In
addition, lenders thought it was not financially feasible to have such large up-front costs in
recreational and landscaping facilities.
The Sabanera formula was essentially based on the now over-used movie quote from Field
of Dreams, “If you build it they will come.” Stubbe built some of the most amazing recreational
and green facilities ever seen in Puerto Rico…and he built it before optioning a single home!
To the chagrin of the financial institutions that passed on the deal, Sabanera was an amazing
success. People stampeded from the city in herds to live in this “wonderful green
environment.” In fact, it was such a great concept, that Stubbe went on to develop two
other communities with the Sabanera brand. Many other developers were quick to follow
Stubble’s formula.
Today, however, suburban development continues, but with much less sales success. Many
of the initial buyers in Sabanera, for example, sold their homes after several months of
struggling with traffic jams. It appears that suburban commuting has become extremely
burdensome - especially from the Caguas/Cidra market. This is particularly true for middle
+ income individuals who have children in private schools in the metropolitan area.
Innovation trends
Some developers have introduced innovative ways to combat this commuting dilemma. For
example, Sabanera in Dorado has built a high quality private school for its residents. The
success of this venture will not be seen for many years.
Re-Birth Urban Center
“We are overwhelming the roadway network, which means we have to find ways to make movement more
efficient. We have to see how people can live together and be happy about it. That means building
communities,” quotes Ken Kruckenmyere from the Massachusetts Institute of Technology,
Center for Transportation Studies.
14
Adam Greenfader
All Rights Reserved

15. Cities once stigmatized as crime-ridden repositories of the poor, are now being seen as
vital, resource rich places. This is in part because urban density creates opportunity for a
more diverse mix of amenities than is available in one-dimensional suburban locations.
According to Census figures for 2000, research by the Brookings Center on Urban and
Metropolitan Policy and the Fannie Mae Foundation, there is currently a dramatic rebirth of urban centers. This rebirth is the result of three major factors:
I. Demographics - Rise in immigration, aging baby boomers, and increase in
non-family households.
II. Aging of suburban developments.
III. New interest in rail travel and avoidance of vehicular transit.
New Parking Paradigm
For many years, parking has been seen as part and parcel of any successful development.
In fact, more parking would equate with more success. Today the paradigm might be
shifting.
According to Donald Shoup, a professor of Urban Planning at the University of
California in Los Angeles, minimum parking requirements produce a local benefit – they
ensure that every land use can accommodate all the cars drawn to the site. However, this
local benefit comes at a high price to the whole city. The price is paid in the form of
traffic, congestion, and a less dense auto-oriented city.
There is often tremendous pressure to provide ample parking a project’s residents. Yet
parking complicates the political, financial, and design aspects of the TOD project. More
importantly, parking can conflict with the goals of creating a pedestrian-friendly, mixeduse environment.
Note: The aim today is to “un-bundle” parking. This will allow homeowners to rent or
purchase parking separately from the housing itself. Another parking option, is to use
shared space in parking garages for commuters and office workers during the day, and
for community residents at night.
RECCOMENDATIONS
Design

Advanced engineering techniques can provide on-site store of energy from
renewable sources such as wind and solar power. Efficient HVAC systems can filter
outdoor air and provide healthier indoor environments.
15
Adam Greenfader
All Rights Reserved

16. 
Other green features can include innovative plumbing systems that recycle building
wastewater (gray and black) water reducing flow to sewers. Innovative designs
provide sod roofs that become public spaces. This reduces storm water run off, and
flow to storm water drainage.

T1 lines wired into each apartment. There is great demand for bandwidth on
demand. More and more home products will require fast connections. Some
innovative examples include internet refrigerators, office connected appliances,
internet surveillance systems, etc..

A separate entrance and lobby should be reserved for resident’s privacy. Amenities
should include an outdoor pool, a rooftop deck, a health club, a party room,
underground parking, and a business center.
Transportation

Employer-sponsored transportation services such as subsidized transit fares,
guaranteed ride home programs, company vehicles for personal use, and
membership in a car-sharing program can greatly increase transit use.

Car sharing has arrived in the United States with several car-sharing organizationsCity Share in San Francisco, Flexcarin in Seattle, and ZipCar in Boston. On average,
cars sit idle 22 hours a day. Car-sharing can be developed as an amenity that can
increase the value of a residential property. “Depending on the expected level of vehicle
ownership of the target market, housing units can be provided with access to car sharing in place of a
second parking space”, quotes Gabriel Metcalf, Deputy Director of the San Francisco
and Urban Research Association.

St. Paul Minnesota has installed bicycle lockers at 30 transit and “park and ride”
locations. The lockers can be rented for a total of 40 per semester.

Under Cambridge’s regulation, developers must draw up a “Transportation Demand
Management Plan” (TDM). The purpose of the TDM is to achieve a 10% cut in the
16
Adam Greenfader
All Rights Reserved

17. need for parking. Some measures include subsidized transit passes, parking charges,
reductions in parking supply.
Finance

Tax Increment Financing - During the life of the TIF, any increase in property taxes
above the base year in which the TIF was created is distributed into a TIF fund to
help pay for public improvements in the TIF. This TIF has been a boom for
Illinois cities looking to do urban renewal.

Some national mortgage lenders are offering “transportation-efficient loans” for
properties located within walking distances of transit stations. The reasoning is that
the money a homeowner saves by taking public transportation (rather than driving a
car) can be added to monthly mortgage payments – thus, higher loan amounts are
possible.

The Location Efficient Mortgage (LEM), developed by the Center for
Neighborhood Technology, the Natural Resources Defense Council, the Surface
Transportation Policy Project, and Fannie Mae, was a pilot project in three cities.
Fannie Mae has also derived its own product, the Smart Commute Mortgage,
which offers a smaller credit based solely on transit proximity.
17
Adam Greenfader
All Rights Reserved

18. Below you will note how a location efficiency mortgage reduces the income necessary to
qualify for a home of $286,000.
Standard Mortgage
Home Mortgage Down
Price
90%
Pmt.
$286,000 $257,400 $28,600
Income to Qualify
Closing
5%
$12,870
$5,635 Monthly
$67,629
Yearly
Location Efficiency Mortgage
Home Mortgage Down
Price
90%
Pmt.
$286,000 $257,400 $28,600
Income to Qualify
7.0% interest
30 years
Total
Mo.
Insurance Total
Investment Payment
Taxes
Monthly
$41,470
$1,729
$150
$1,879
Closing
5%
$12,870
7.0% interest
30 years
Total
Mo.
Insurance Total
Investment Payment
Taxes
Monthly
$41,470
$1,729
$150
$1,879
$4,696 Monthly
$56,357
Yearly
Cost of Automobile: Consumer
According to the Urban Land Institute Transportation Committee, the average U.S.
household spent $6,600 on transportation ($550 a month), the second highest
expenditure next to housing. Allocating these costs to individual trips, the drive to work
costs $7.70, non-work trip costs $2.60, and shopping trips cost $2.00.
NOTE: How individuals perceive these costs is less clear. For example, 75% of the
expense of operating a car is fixed costs such as depreciation, insurance, licensing, and
taxes. Most drivers thus only consider the marginal costs of commuting such as parking,
gasoline, and parking tickets.
18
Adam Greenfader
All Rights Reserved

19. ADDENDUM B
Examples of Successful TOD
The recently completed Mockingbird Station, located along the Dallas Area Rapid
Transit (DART) rail line, has become one of Texas’s most successful mixed-use urban
villages built adjacent to a rail station.
A sign of just how far the interest in mass transit systems has evolved is that it reached
Dallas, where the automobile is deeply interwoven into the image of Texas rugged
individualism – “Marlboro men do not share a seat on a light rail vehicle,” or at least
they did not until 1996.
The 20 acre mixed-use project comprises of 220,000 square feet of retail space anchored
by Virgin Megastore, the state’s first urban outfitters, Gap, and Starbucks. In addition,
there are 250,000 square feet of office space, 211 loft style apartments, and a 500 unit
luxury apartment building. The project, like our proposed site, is within walking distance
of the Southern Methodist University. The Mockingbird Station has led to an important
shift: communities once reluctant to have DART rail stations are now showing
significant interest.
For more information see: http://www.mockingbirdstation.com/
19
Adam Greenfader
All Rights Reserved