79th & biscayne final edited

79th & Biscayne

Urban Infill Team Presentation

Molly Parnes, Xuqiao Wang,

Felipe Azenha, Jacob Aaron

Francisco Rodriguez, Khaled Alawadhi

May 4, 2012

Zoning • Miami 21- T6-8 (O) Can build up to 8 stories

• The proposed project is larger than 9 acres, and qualifies as a Special Area Plan.

• Special Area Plan: Allow parcels greater than nine (9) Abutting acres in size to be master planned

• Transit Oriented Zone: parking reduction with mixed-use by 30%

Vision

• Create a Mixed-Use destination and not an eye sore

• Establish a central focus for the Upper East Side

Commercial corridor

• Fill the demand for a better office, retail, residential

• Host local farmers markets, food trucks and events

• Non-traditional tenant mix based on area demands

• Anchor the site with a strong office tenant such as

an IVAX

Development ProgramDevelopment Snapshot SF Units Total SF

Multifamily Units 910

1 Bedroom 650 500 325,000

2 Bedroom 1,100 350 385,000

3 Bedroom 1,300 60 78,000

Town House Units 1,500 20 30,000

Leasing Office 1 1500 1,500

Mailbox Room 3 500 1,500

Fitness Center 1 2500 2,500

Business Center 1 2500 2,500

Pool Area (rooftop) 1 5000 5,000

Lobbies 3 500 1,500

Hallways 120,375

Total Multifamily 952,875

Trader Joe's 15,000

Retail (Including Trader Joe's) 183,995

Office 491,100

Parking Phase 1 Block 1, 2, 4 350 638 223,300

Parking Phase 2 Block 3 350 430 150,500

Parking Phase 3 Block 6,7 350 551 192,850

Hardscaping (streets, sidewalks 115,000

Landscapping 59,000

Community Market 100 5,000

Site Demolition 248,000 248,000

Total Development with landscaping 2,194,620

Gross SF (parking not incl) 1,642,970

Multifamily 43%

Retail 9%

Office 22%

Parking 26%

Square Feet Distribution

•Residential- 930 Units•Retail- 183,995 sqft•Office- 491,100 sqft

Development Proposal

• Trader Joe’s Grocery Store

• Rental apartments and townhomes

• Large scale office tenants to anchor development

• Convenient retail for development

• Restaurants

• Marketplace setup for locals to sell produce/goods

• Outdoor recreational area by river

Market AnalysisDEMOGRAPHICS• Population of the 5-minute drive radius:

• Population: 20,801

• Households: 7,403

• Average age: 39

Demographics of Historic Neighborhoods on East of Biscayne:

• Average Household Income: $76,567

• Average home value: $500,000

• 55% rental / 45% owner occupied

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0 to 4 5 to 9 10 to 14

15 to 17

18 to 20

21 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 to 74

75 to 84

85 and over

2010 Estimated Population by Age

Market Analysis

Residential ComparablesThe Bank and Nirvana

• Current average rents for both of these developments are exactly the same at $1.74 sq ft.

Market Analysis

OFFICE

• Mostly Class C with some Class B and one or two Class A buildings.

• The rents range from $16-$25 per square foot.

• Most of the office is located to the south of the site which is closer to Midtown, Downtown Miami and Brickell.

• The average rental for offices is $19.10 per SF direct gross rent and the vacancy is 25%.

• The absorption is negative at this moment.

Market Analysis

RETAIL

• Currently- a discount retail center, serves mostly the locals from the Westside of Biscayne boulevard

• NO competition for our project

• People drive past the site to other retail destinations

• Trader Joes- the Retail anchor for the retail section of the development

Building Programs

Financial Assumptions

Retail 3.5%

Multifamily 4%

Office 3%

Growth Rates

Retail 15

Office 30

Tenant Improvements

Multifamily 3%

Retail 5%

Office 5%

Stablized Vacancy

Expenses

Residential 35%

1 Bedroom $1,100 % of GI



Townhouse 3/2 $2,300 % of GI

Retail $23 6.00

Trader Joe's $20 6.00

Office $24 7.00

Parking/Space $230 25.00

Rental Rates

Loan Assumptions

Development Cost $28,088,458

LTC 55%

Amount Loaned $15,448,652

Equity $12,639,806

Interest (LIBOR) 0.47%

Spread 3.50%

Total 3.97%

Construction draws $14,386,879

Total Interest $1,930,497

Loan $15,448,652.12

Equity $0

Annual debt service $1,122,328

PV $15,448,652

FV 0

N (years) 30

LTV 55%

I/R (annual) 6%

PMT $1,122,328

Permanent Loan - Retail

Construction Loan - Retail


LTC 65%


Equity $37,712,741


Spread 3.50%

Total 3.97%



Loan $70,037,947.02

Equity $0


PV $70,037,947

FV 0

N (years) 30

LTV 75%

I/R (annual) 6%

PMT $4,952,820

Permanent Loan - Multifamily

Construction Loan - Multifamily


LTC 55%


Equity $35,638,354


Spread 3.50%

Total 3.97%



Loan $43,557,988.63

Equity $0


PV $43,557,989

FV 0

N (years) 30

LTV 60%

I/R (annual) 6.50%

PMT $3,335,559

Permanent Loan - Office

Construction Loan-Office

Investment Summary & Sensitivity Analysis

Multifamily 22.11%

Retail 23.09%

Office 16.14%

Parking 12.16%

Total 18.88%

IRR

Investor 21.51%

Developer 33.24%

Investor 22.34%

Developer 38.12%

Investor 15.10%

Developer 32.80%

Investor 11.88%

Developer 16.80%

Retail

Multifamily IRR

Retail IRR

Office IRR

Permanent Loan Rate Downside Current Upside

Retail 6.50% 6.00% 5.50%

IRR -0.13% 23.09% +0.13%

Multifamily 6.25% 5.75% 5.25%

IRR -0.21% 22.11% +0.21%

Office 7.00% 6.50% 6.00%

IRR -0.15% 16.14% +0.15%

Parking 6.50% 6.00% 5.50%

IRR -0.28% 12.16% +0.27%

Effect on IRR

Retail 7.50% 7.00% 6.50%

IRR -1.06% 23.09% +1.14%

Multifamily 6.50% 6.00% 5.50%

IRR -1.39% 22.11% +1.50%

Office 9.00% 8.00% 7.00%

IRR -1.99% 16.14% +2.24%

Parking 7.00% 6.50% 6.00%

IRR -1.36% 12.16% +1.41%

Exit Cap Rate

Development Costs

Multifamily $73,620,000

Retail $17,111,535

Office $56,476,500

Parking

Multifamily $12,841,127

Retail $4,101,047

Office $3,457,226

Site Demolition $744,000

Landscapping $590,000

Hardscapping $1,380,000

Site Purchase Price $20,655,508

Hard Development Costs

Total Costs $247,067,974

Total Costs w/o land $226,412,466

Total Development Costs

Parking $36

Multifamily $90

Townhomes $85

Retail $93

Hardscaping $12

Landscaping $10

Soft Costs 20%

Office $115

Demolition $3

Construction Costs

Development Phasing

1

2

3 3

Development Timeline

• The entire project will take 4 years to complete from preconstruction to the end of the 3rd phase

• Preconstruction will take 1 year, 2 months, and 11 days

• First Phase will take 7 months

• Second Phase will take 9 months and 10 days

• Third Phase will take 9 months and 20 days with a year lag for extra financing to accumulate

Community Benefits

• A distinctive development that will create strong sense of place that the Upper Eastside needs

• An Employment center that will be a centralized HUB near major access points

• A marketplace for locals to sell goods

• A 55th Street Station taken to the next level

Summary

The sum equals the whole: • A place to reside (LIVE)•A place of employment (work)•A place of Enjoyment (Play)•A place to shop/Eat ($$$)Equals a successful Mixed-Usecommunity

79th & biscayne final edited

Real Estate

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