FOUNDRY UNITED METHODIST CHURCH CAFE FEASIBILITY STUDY FOR ... the Foundry United Methodist Church...

COFFEE CAFE FEASIBILITY STUDYFOR

FOUNDRY UNITED METHODIST CHURCH

1500 16TH STREET NW | MARCH 2017

PREPARED FOR FOUNDRY UNITED METHODIST CHURCH

2 | Coffee Cafe Feasibility Study

EXECUTIVE SUMMARY

The site at the Foundry United Methodist Church faces competition from both national and local re-tailers. The coffee cafes located around the Dupont metro station pose the largest amount of com-petition, as 65% of all coffee consumed is during the morning hours and a large percent of the sur-rounding population relies on public transportation to commute to the work. The other competitive cluster of coffee cafes lies at the intersection of 14th Street and P Street. While these competitors are not located around a metro stop, they are clustered with other retailers. As coffee cafe (to include baked goods) purchases can occur throughout the day and are oftentimes and impromtu purchases by occur during visits to other retail types.

While the site at the Foundry United Methodist Church is directly effected by the nearby compeition, it is also mildly effected by the influx of coffee cafes establishing in the Washington DC market. Cof-fee cafe retailers are desireable tenants for developers and landlords seeking tenants as they do not require a large footprint, a complex venting system, and are not considered a ‘hard’ use on the build-ing. In 2016 alone, approximatley 15,000 square feet of coffee cafe retail space was added to the mar-ket. Finally, several national and local coffee cafe retailers are slated for expansion in the DC market in the coming years.

COMPETITION

The population in the trade area is single, well-educated, and work highly-paid and professional jobs. The residents primarily either walk to work or commute via public transportation, however, the aver-age commute time is over 15 minutes, which indicates that the residents do not work in the primary trade areas. Only a small fraction of residents drive to work. The employees that work in the trade area primarily work in the Religious, Grant Making, Civic, Professional, and Similar Organizations sec-tor, which mirrors the historic development nature of 16th Street.

DEMOGRAPHICS

The site is unique in the fact that it will generate demand from two sources, on-site demand and external demand. On-site demand is generated from programs and events scheduled at the church, which will draw consumers from outside of the primary and secondary trade areas. External demand is generated from the residents and employees located within the primary and secondary trade areas. The amount of external demand generated for a coffee cafe retailer is 1,532 square feet, while the on-site demand is 366 square feet for a total of 1,898 square feet.

DEMAND

GROWTH

There is not a significant amount of residential and office development or redevelopment within the primary and secondary trade areas to impact the external demand. Unlike external demand, on-site demand is driven by consumers from outside of the trade area boundaries and therefore has room for growth. The schedule for weekly programs and events held at the Foundry United Methodist Church can expand and therefore generate more traffic to the site. For every new attendee to a event hosted during the morning period, .42 square feet of demand is generated. Every new attendee to a midday event generates .25 square feet and .34 squre feet is generated for every new attendee to an eve-ning event.


Dupont Circle, Logan Circle, and 16th Street were all aspects of Pierre L’Enfant’s original plan for DC. As some of the oldest neighborhoods in the District, the Dupont Circle and Logan Circle neighborhoods contain a mix of building stock, from small one-story office buildings to three and four-story historic row houses. While established preservation districts have attempted to protect the historic elements of the some portions of these neighborhoods, many architectural styles coexist. As retail development typically does, it has developed in clusters. In this neighborhood, retail has clustered around Dupont Circle and along 14th Street.

Dupont Circle and Logan Circle residents are accustomed to using public transportation or walking to get from place to place, as 33% of residents commute to work by public transportation and 37% walk to work. The historic nature of the buildings, localized side streets, wide sidewalks, and mature trees make the neighborhood an enjoyable and safe environment for pedestrians. The median age of the residents is just slightly over the national average at 38 years of age and over 70% of the population is unmarried. The residents are also well-educated and high income earners.

Over half of the residents in the neighborhood are up and about in the morning times, either to walk to work or to walk to public transportation hubs. The nearest Metrorail station is located at Dupont Circle. Residents who live east of Dupont Circle around Logan Circle will walk west along P Street and Q Street to reach the Metro station. There is a lack of coffee cafes existing along these highly trafficked pedestrian thoroughfares

Furthermore, the Foundry United Methodist Church has a robust and diverse offering of programs and services that bring several hundred individuals a week from all over DC to the neighborhood. Programs and services are active seven days a week and attract individuals from both within and outside the Methodist faith, which presents a favorable opportunity for the Foundry United Methodist Church.

INTRODUCTION

Site Location

Streetsense | 4

Competition Assessment

The primary competition for the potential coffee cafe at the site located within the Foundry United Methodist Church was reviewed throughout the Dupont Circle and Logan Circle market. This assessment also provids insights into the coffee cafe market on a local scale, which illustrates the aggressive number of new locations that opened 2016 alone. These insights informed the market review, the trade area boundaries for the site, and the capture rates.

METHODOLOGY

Trade Areas

A Primary Trade Area (PTA) and Secondary Trade Area (STA) were determined for the site. The trade areas define the populations from which the potential coffee cafe would gather the majority of its sales. Trade areas are impacted by competition, walk times, sociological and geographical boundaries, shopping patterns by customer type, and other factors. The PTA includes the most frequent customers, while the STA customers are significantly less frequent but still contribute a meaningful amount of sales that effects total demand.

Coffee Cafe Expenditures Using data from U.S. Census Bureau, ESRI, and the National Coffee Association (NCA)., as appropriate, expenditures in the coffee cafe from both trade areas were generated by calculating visitor frrequency and average visitor expenditure per visit. While coffee is consumed during all times of the day, consumption is disproporionately consumed during the morning hours. To accurately account for this discrepancy, coffee cafe expenditures were calculated for the AM period (5am-12am), midday period (12pm - 5pm), and PM period (5pm - 12pm).

Capture Rates

Capture rates are set by evaluating the amount, accessibility, and quality of existing and proposed retail development on the study area’s ability to draw customer expenditures within the context of the larger market. Total estimated, captured expenditures are divided by expectations for sales per square foot for a coffee cafe. The result of this calculation yields an estimated total amount of demand for a coffee cafe at the Foundry United Methodist Church.

Go or No-Go?

The square feet of demand for the potential site and the projected sales per square foot will indicate whether the site is an appropriate location for a coffee cafe.

Streetsense | 5

The site is located in the northwest corner of the signalized intersection at 16th Street and P Street. As Washington, DC developed as the nation’s capital city, many foreign countries opened their embassies on 16th Street due to the proximity to the White House. Historic churches and religious centers were close to follow and the street was nicknamed “Church Row” after the embassies located elsewhere in the city and churches became more prominent in 16th Street’s identity. Listed on the National Register of Historic Places as the Sixteenth Street Historic District, the buildings on the 16th Street corridor have been preserved to the time of its primary development in the last quarter of the nineteenth century.

As a prominent north-south thoroughfare in the northwest quadrant, 16th Street is also a vital transportation route in the District with 18,900 AADT (annual average daily trips). The corridor serves all modes of transportation and is one of the busiest Metrobus routes in the district, serving an average of over 200,000 passengers each weekday. The Metrobuses on 16th Street are the primary node of transportation for the surrounding neighborhoods, as the buses move over 50 percent of the people in the morning peak hour. Positioned catty corner from the site, a Metrobus stop on the 16th Street route is located on the southeast corner of the 16th Street and P Street intersection.

While 16th Street functions as a main thoroughfare for vehicular traffic, P Street runs east-west and serves as a pedestrian walkway that channels commuters to and from the residential neighborhoods to the Dupont Circle Metro station. Much narrower than 16th Street, P Street supports local, neighborhood traffic with about half as many trips at 9,700 AADT.

Not only is the site located between two major traffic circles, the site is positioned between two Metrorail clusters. Since the Metrorail installation in the 1970s, retailers, residential complexes and offices have assembled around the stations and further refined and distinguish the District’s neighborhood identities. The site is within a half mile walking distance from the Dupont Circle Metro station. Each weekday on average, the station services approximately 18,650 riders on, ranking 8th of 91 metro station. The site is flanked on the east by the U Street and Shaw/Howard metro stations, both up-and-coming neighborhoods.

The site is located adjacent to Stead Park, which lies on P Street directly west of the site. Stead Park and Recreation Center is composed of a playground, basketball courts, a multi-use playing field, picnic areas, and indoor recreation facilities, and is the only facility of its kind within a half mile radius.

EXISTING CONDITIONS

SITE

Oak Hil lCemetery

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KEYFoundry Row Church

Dupont Circle

Logan CircleP Street

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5 min walktime to metro

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MARKET CONTEXT

DIRECT COMPETITION

Generally, primary competition lies where retailers cluster together. There are retail clusters to the east and west of the site. To the east on P Street, a cluster containing Starbucks, Commissary DC, and Dolcezza exists primarily to serve the pedestrian traffic on 14th Street. Located west of the site, Dupont Circle has served as a trendy retail hub for several decades when gentrification accelerated in 1980s and 1990s. A handful of Starbucks locations are positioned along Connecticut Avenue while a few other national retailers, Firehook Bakery and Panera Bread, are clustered around the two Dupont Circle Metro entrances. Quality, location, positioning, and menu offerings are all considered during the competition analysis.

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Un je ne sais Quoi

Foundry Church

COMPETITION MAP

Washington

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Approximately 15,000 square feet of coffee cafe retail space opened in Washington DC in 2016 alone. From new-to- market coffee retailers like Joe and the Juice to expanding retailers like Compass Coffee and Starbucks Coffee, it is expected that 2017 will follow the same trends. As overall coffee consumption prepared outside of the home is up 4% from last yea. National coffee retailers and established DC brands recognize these trends and strategically expand their operations.

LOCAL COMPETITION

KEY

Foundry Church

Coffee Cafe

COFFEE CAFE OPENINGS IN 2016

Filter Coffee

Streetsense | 7

TRADE AREAS

The trade areas were influenced by the competition, resident and employee travel patterns, and demographic information in conjunction with consumer habits and trends of coffee consumption. The residential Primary Trade area was drawn taking into account the residential population’s dependence on public transportation. With the Metrorail stop at Dupont Circle, the site has the potential to capture morning commuters traveling west from Logan Circle neighborhoods. The existing coffee cafes located north of Dupont Circle are stronger competitors and therefore, have a larger impact on the primary trade area.

The residential Secondary Trade Area remains impacted by the Dupont Circle retail clusters, but extends further north east into the dense residential neighborhoods. While the STA crosses the dominant retail corridor of 14th Street, coffee café options are nearly nonexistent north of P Street, as 14th Street is primarily known for its offerings of furniture and apparel stores, as well as full service food and beverage restaurants.

The Primary Trade Area (PTA) for the daytime employees extends north and south on 16th Street, as there is a lack of coffee cafés in these directions. Similar to the residential trade areas, the retail clusters on P Street and at Dupont Circle will impact the trade area boundaries to the east and west.

Office

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Primary Trade Area (PTA)

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Secondary Trade Area (STA)

Primary Trade Area (PTA)

TRADE AREAS

Residential

Foundry Church

Foundry Church


DEMOGRAPHICS

Residential Primary Trade Area Secondary Trade Area

No. of Households 2,184 4,263

No. of Non-family Households 83.3% (1,819) 83.7% (3,572)

Median Household Income $109,181 $99,382

Median Age 38 38

Educational Attainment 88% 84%

Work From Home 83 176

DEMOGRAPHICS

Office Primary Trade Area

No. of Employees 2,895

Employees - Religious, Grant Making, Civ-ic, Professional, & Similar 25.3% (732 employees)

The demographics of the population in the trade areas will impact the amount of retail supportable at the Foundry Church. An analysis of the population’s demographics will shed light on their everyday lives- from travel and commuting patterns to spending habits.

• Single & Professional: Within the residential Primary Trade Area, the population is primarily unmarried and well-educated. Over 88% of the population has their Bachelor’s Degree or higher and 83% of households are classified as non-family households. Over 71% of population is classified as singles that have never married with married couples accounting for only 20% of the total population in the PTA. The population in the PTA are primarily White (80%) and Asian (8.5%) earing a Median Household Income of $109,181 per year. The median age is 38 years old, slightly above the national average.

• Transit Oriented: As city dwellers, more than half (55%) of the residents within the Primary Trade Area do not own a vehicle and depend on alternative modes of transportation to commute to work. Almost 33% of the workforce in the residential Primary Trade Area travel to work via public transportation, such as Metrorail or MetroBus. Walking to work (37%) is the transportation method most used by residents in the primary trade area, while only 16% drive to work.

• White Collared Office Dwellers: In both the Primary and Secondary Trade Areas, the prominent workforce occupations are Business/Financial Operations (15-16%), Legal (13-14%), and Management (19-20%). Overall, 92% of all occupations held by the residents in the trade areas analyzed are classified as White Collar occupations. While a large portion of the residents in the trade area walk to work, it appears most residents are traveling outside of the primary office trade area for work. Almost 85% of the residents travel 15 minutes or more to work each day.

• Service Centered Workforce: Of the 2,895 employees in the office primary trade area, over 25% are employed in the Religious, Grant Making, Civic, Professional, and Similar Organizations.

Streetsense | 9

DEMAND

EXTERNAL DEMAND

1,203 1,352 1,532Square Feet

External demand is defined as the amount of retail space supported by the residents and employees in the defined trade areas. External demand does not account for the demand generated on-site by individuals traveling to the site for a specific reason (i.e. choir practice, church services, etc.). The site can support up to 1,532 square feet of coffee cafe space.

Coffee is consumed throughout the day; however, 63% of all coffee is consumed during the morning hours with breakfast, as the first meal after rising, or before lunch is consumed. Just over 22% of all coffee is consumed midday, which is defined as consumed with lunch, afternoon, or any time before dinner. The remaining 14% of coffee consumed is done so in the evening with dinner or post dinner. Since coffee consumption is so highly tied to the time of day, these rates of consumption were factored into the demand calculations. Furthermore, any future coffee cafe operator will need to be open for business to capture the demand projections for the respective time period.

ON-SITE DEMAND

280 282 366Square Feet

Internal demand is defined as the amount of retail space supported by the individuals who are traveling to the site for a non-retail reason, but make a planned or unplanned retail purchase. Internal demand includes members of the congregation that travel to the site for Sunday services, choir practices, or various church sponsored programs. Internal demand extends outside of the congregation to include individuals that attend weekly Alcoholics Anonymous (AA) and similar meetings hosted by outside organizations. A capture rate was applied to expected attendance figures to calculate the internal demand.

TOTAL DEMAND

$442,0931,633 1,898 Square Feet

Total demand is the amount of retail space supported by both internal and external demand. The total demand generated at the site is 1,897 square feet.

Expenditures $358,488 $402,778 $456,543

KEY

Midday Demand (12pm-5pm)

AM Demand (6am-12pm)

PM Demand (5pm-10pm) Expenditures

$83,604 $84,133

Expenditures 1,483

$486,912 $565,897

$109,353

Streetsense | 10

DEMAND

Demand Summary AM Demand Midday Demand PM Demand

External 1,203 SF 149 SF 181 SF

On- Site 280 SF 2 SF 85 SF

Sub Total 1,483 SF 151 SF 266 SF

Total 1,898 SF

DEMAND SUMMARY

On-site demand is driven by individuals traveling from outside of the trade areas to the site for a scheduled program or event hosted within the Foundry United Methodist Church. Therefore, as the program and event offerings grow and diversify or existing programs grow in attendance, on-site demand will naturally grow. For every new attendee to a event hosted during the morning period, .42 square feet of demand is generated. Every new attendee to a midday event generates .25 square feet and .34 squre feet is generated for every new attendee to an evening event. These figures were calculated based on a weekly attendence average with an applied capture rate. In order to accurately calculate new demand with these figures, the attendee must attend every week meaning these figures cannot be used to calculate demand generated by a once-a-year event, such as an annual fundraiser or holiday party. Finally, the attendee must not already be on-site for an existing event. For example, during our initial demand calculation, we removed the Sunday morning attendance count for programs because it is likely that these individuals attended a worship service either before or after the scheduled program.

ON-SITE GROWTH


CONCLUSION

In our study of the Foundry United Methodist Church, we found two key sources of demand that would support a coffee cafe at the study site. On-site demand is generated by individuals who are traveling to the site for a non-retail reason, but make a planned or unplanned retail purchase. These non-retail purposes include worship services, choir practices, AA meetings, etc. External demand is defined as the amount of retail space supported by the residents and employees in the defined trade areas. In total, the site can support 1,8 square feet of retail, with 343 square feet generated by on-site demand and 1,532 square feet generated by external demand.

The amount of external demand that is generated is largely dependent on the surrounding compe-tition, travel patterns, shopping patterns, and the demographics of the surrounding residents and employees. In this study, external demand was largely driven by the high level of population density surrounding the site. Multi-story apartment buildings as well as townhouses and row houses line the blocks in the immediate areas surrounding the site, which allows several hundreds of people to live and work within a five minute walk to the site. The location of the nearest accessible Metro station at Dupont Circle and the locations of the bus stops on 16th Street were also a key driver in determining the amount of demand that is captured at the study site, as over 33% of the surrounding population uses public transportation to get to work every day. Finally, the competition assessment found a gap in coffee cafe offerings between Dupont Circle and the 14th Street corridor, which further influences the amount of coffee café expenditures captured at the site.

Internal demand was calculated using the raw attendance data provided by the church’s administra-tive office. As the data provided was not an exhaustive list, the attendance records that were ana-lyzed in this study have been provided in the Technical Appendix. The demand figures generated by on-site demand are directly dependent on program, event, and worship attendance rates. Therefore, as attendance to the Foundry United Methodist Church’s programs, events, and worship services ex-pands or contracts, on-site demand will adjust accordingly. This is an important consideration as the generated demand is directly derived from the potential retail sales generated by a coffee café.

SALES POTENTIAL

CONCLUSION

AM Sales Projection Midday Sales Projection PM Sales Projection

External $358,488 $44,290 $53,764

On- Site $83,604 $529 $25,220

Sub Total $442,092 $44,819 $78,984

Total $565,897

The total estimated gross sales potential for the site is $565,897 per year. A majority of the projected sales are generated during the morning hours when coffee and breakfast items are most likely to be consumed. It is imperative that the third party coffee operator is open during each of the time peri-ods listed below in order to achieve the projected sales for each respective time.

Streetsense | 12

TECHNICAL APPENDIX

PRIMARY TRADE AREA - AM DEMAND TABLE - 2016

EXPENDITURES

POPULATION 3,146

YEARLY VISITS BASED OFF FREQUENCY 180,431

AVERAGE TICKET PRICE $4.85 $875,090.69

TIME OF DAY 65% $568,808.95

CAPTURE RATE 40% $227,523.58

SUPPORTABLE SQUARE FEET OF COFFEE CAFE RETAIL 764

PRIMARY TRADE AREA - MIDDAY DEMAND TABLE - 2016

EXPENDITURES

POPULATION 2,895



TIME OF DAY 22% $177,159.97

CAPTURE RATE 25% $44,289.99


PRIMARY TRADE AREA - PM DEMAND TABLE - 2016

EXPENDITURES

POPULATION 3,146



TIME OF DAY 14% $85,190.16




SECONDARY TRADE AREA - AM DEMAND TABLE - 2016

EXPENDITURES

POPULATION 4,829


AVERAGE TICKET PRICE $4.85 $1,343,233.61

TIME OF DAY 65% $873,101.85

CAPTURE RATE 15% $130,965.28


SECONDARY TRADE AREA - PM DEMAND TABLE - 2016

EXPENDITURES

POPULATION 4,829


AVERAGE TICKET PRICE $4.85 $1,343,233.61

TIME OF DAY 14% $188,052.71



TECHNICAL APPENDIX

Streetsense | 14

TECHNICAL APPENDIX

ON-SITE DEMAND - ALL EVENTS OUTSIDE OF SUNDAY SERVICES

DATE EVENT ATTENDEES TIME OF DAY

03/01/201703/01/201703/01/201703/01/201703/01/201703/01/201703/02/201703/02/201703/02/201703/02/201703/02/201703/03/201703/03/201703/03/201703/04/201703/04/201703/04/201703/06/201703/06/201703/07/201703/07/201703/07/2017

Family Matters: one-on-one sessionsFamily Matters: one-on-one sessionsClothing MinistryA Disciple's PathFoundry Choir PracticeAA meetingChris Mathews in LibraryStory Time at Foundry!Depression Bipolar Support Alliance GroupESL ClassesSmart Recovery Support GroupID MinistryFamily Matters: one-on-one sessionsFamily Matters: one-on-one sessionsID MinistryServant Leader Strategic Planning Team Foundry's Sacred Resistance Community ForumFamily Matters one-on-one sessionsHospitality Team MeetingFamily Matters one-on-oneESL ClassesSmart Recovery Family & Friends Meeting

4432045601025154010604460101041044010

AMAMMDPMPMPMAMAMPMPMPMAMAMAMAMAMAMMDPMAMPMPM

The list above was provided by the Foundry United Methodist Church, however, may not be an exaustive list of weekly progams and events held at the church. Should the Church’s administration gather attendance records for events held on a weekly basis that are not included in the list above, the following metrics should be used to determine demand.

• .42 square feet of added demand for every attendee to a new AM program or event

• .25 square feet of added demand for every attendee to a new midday program or event

• .34 square feet of added demand for every attendee to a new PM program or event

For these metrics to provide an accurate demand calculation for expanded or new programs and events, the program or event must occur on a weekly basis and the attendee in consideration must attend the event on a weekly basis. Additionally, the attendee in consideration must not already be on-site for another event (such as a worship service or other meeting) in order to avoid double counting.


TECHNICAL APPENDIX

ON-SITE DEMAND - SUNDAY SERVICES - 2016 ATTENDANCE

EXPENDITURES

TOTAL ATTENDANCE 27,483

ON-SITE ATTENDANCE (MINUS ONLINE) 24,368

WEEKLY AVERAGE SUNDAY SERVICE ATTENDANCE 468

YEARLY VISITS 24,336



SUPPORTABLE SQUARE FEET OF COFFEE CAFE RETAIL 198.04

EXPENDITURES

TOTAL ATTENDANCE 195

ON-SITE ATTENDANCE 195






ON-SITE DEMAND - AM PROGAMS - MARCH 2017

Streetsense | 16

TECHNICAL APPENDIX

ON-SITE DEMAND - MIDDAY PROGRAMS- MARCH 2017

EXPENDITURES

TOTAL ATTENDANCE 7



YEARLY VISITS 364


CAPTURE RATE 30% $529.62


EXPENDITURES

TOTAL ATTENDANCE 250







ON-SITE DEMAND - PM PROGRAMS - 2016 MARCH 2017


ARCHITECTURAL ASSESSMENT FOR




Streetsense | 18

ARCHITECTURAL ASSESSMENT

• Excellent natural light (especially for a basement space)

• High ceiling

• Minimal competition in neighborhood

• Existing kitchen area

• Still a basement space

• Difficult entrance

• Difficult signage

• Little potential for large kitchen or extensive food prep

• Challenge to create a separate identity for retail space

PROS CONS

The following is our architectural assessment of the lower level space in the southeast corner of the Foundry Church. The space was assessed to determine the feasibility of utilizing the space as a 1,400 square feet coffee cafe. A site visit was conducted to observe the physical space and the barriers that would impede on the success of a coffee cafe operator. After identifying these retail specific obsta-cles, the recommended remedial action items were identified and assigned a level of importance, impact, and cost in regards to the overall improvement and usability for a retail space.

INTRODUCTION

The Foundry Church’s location in the 16th Street Historic District presents some challenges for poten-tial retail signage, but our team believes these are not insurmountable. The best location for signage for a new retail tenant is a projecting sign from the southeast corner of the building, above the exist-ing stair down within the area that is currently blocked by a tree. A diagonally projecting sign is ap-propriate to a corner location and could attract attention from passersby on both 16th and P Streets. However, it is possible – if not likely – that a commercial sign will not be approved for the building due to the predominant institutional use: Commercial signage is also unsuited to historic institution-al buildings, which express their function primarily through architectural imagery and symbolism. (Chapter 10-C2503.4) While we recommend further study of the possibility, we also suggest as an al-ternative a small, free-standing monument within the proposed landscape area at the top of the stair down to the space. A sign oriented perpendicularly to the face of the building will directly address vehicular and pedestrian along P Street and offers the best opportunity for visibility from 16th Street.

No matter who is the tenant for the proposed retail space, special care and attention should be given to the design of the proposed signage. Materials should be compatible with both the existing build-ing and the context of the neighborhood, and the tenant should be encouraged, if not required, to enhance and improve upon their typical signage: Standardized corporate branding, typically devel-oped without regard to local character and context, is often not appropriate for historic buildings

DESIGN FEASIBILITY ASSESSMENT



Despite some challenges, our team believes the lower level space in the southeast corner of the Foundry Church can be attractive to a unique and eclectic food and beverage retail tenant of 1,500 square feet. We recommend the church define the space for lease as the room extending to the west from the door at the bottom of the ramp, which is approximately 30’-0” wide and 50’-0” deep. There is a small prep kitchen at the northwest corner of the space that can be reused for a back-of-house area for the retail with some surface improvements. A door to the corridor near that kitchen provides direct access to a small parking lot and trash area outside which should be used to serve the space. This door may also serve as a second means of egress should one be required by code. Our team en-visions an interior partition at the east end of the space that separates it from public areas within the church and creates an entry lobby at the exterior door. The finished floor of the retail space is ap-proximately 5’-0” below grade, but large south-facing window allow a great deal of natural light into the space. Both stairs and a ramp exist on the exterior, but some site work would improve both the access and visibility, and therefore the ability to lease the retail space. There is an existing storage area to the east of what would be the new interior lobby that can be re-purposed for flexible meet-ing rooms and/or classrooms. Existing restrooms on the lower level are convenient to the proposed retail space, and may alleviate the need to provide restrooms within the space itself. Retail signage is a concern, as the untraditional nature of the space would require lower signs than are typical and the historic nature of the building will present more restrictions on sign locations.

SUMMARY

and districts and may need to be substantially modified to be compatible with a specific building or district. (Chapter 10-C2503.8) Signs are encouraged to be sculptural and graphic, and less reliant on text for their message. External illumination is recommended. Modest opportunities for additional signage, such as a small wall sign on or adjacent to the door or window graphics are recommended, if possible. In all cases, signage for the potential retailer should be complementary to the architectural character of both the existing building and neighborhood. High artistic quality in the design of the sign package will be advantageous from the standpoint of both the approval process (Signs are an opportunity for stylistic imagination and graphic excellence. High artistic quality is strongly encour-aged (Chapter 10-C2503.8)) and as a point of market distinction for the potential tenant.

PREP KITCHEN

CAFE

CORRIDOR

RESTROOMS

CLASSROOMS

CAFE ENTRANCE STOREFRONT SYSTEM

FLEXIBLE CLASSROOMS

UPDATED RESTROOMS

CAFE SEATING

SERVICE COUNTER

CAFE AT FOUNDRY METHODIST CHURCH

SERVICE COUNTER

STORAGE

WASHINGTON D.C.




ACTION Remove tree at southeast corner and connect stair to sidewalk

IMPORTANCE Essential

DESCRIPTIONThe existing tree is blocking the stair, prohibiting its daily use. Need a clear and direct pedestrian path from the corner to the retail entrance.

IMPACT High

COST Low

ACTION Create new stair near proposed retail entrance.

IMPORTANCE Recommended

DESCRIPTION

Expand existing stair at east end of the ramp to provide a better and more direct connection to the sidewalk. Opportunity to improve sightlines to entrance. Ex-isting stair is very narrow and will be uncomfortable when two people using it in opposite directions

IMPACT High

COST High

ACTION Exterior Door

IMPORTANCE Desired

DESCRIPTION

While we recommend against replacing the existing door because of its unique character, there may be an opportunity to enhance the retail presence through window graphics or, especially, lighting. These types of improvements should be permitted and encouraged.

IMPACT Medium

COST Low (Potentially a Tenant Improvement cost)

EXTERIOR IMPROVEMENTS

Streetsense | 22

ACTION Widen existing ramp down to space


DESCRIPTION

Relocate existing retaining wall by eighteen inches to two feet to provide a wider path to space. Creates a more open comfortable space for those who don’t use stair (who are approaching the site from the west). Creates better visibility to the retail entrance and better sight lines out from within the retail space. May be an opportunity to upgrade the existing railing, but this is not necessary.

IMPACT High

COST High

ACTION Enhance landscaping between ramp and the sidewalk


DESCRIPTION

Improve curb appeal for retail space with more attractive and/or eye-catching landscaping than currently exists. Remove vinyl banners on railing. May be an opportunity for the addition of some furniture – either tables or benches – but this area may be too disconnected from retail for a café zone.

IMPACT Medium

COST Low

ACTION Provide/permit distinctive signage for potential retailer


DESCRIPTION

Identity and brand will be critical for any potential tenant. Permit maximum signage allowed by code – both sign ordinance and historic building regula-tions [research to be done]. At a minimum, tenant should expect a wall sign near or above the door. An additional projecting sign from the southeast cor-ner is recommended if regulations permit.

IMPACT High

COST Varies (potentially a tenant improvement cost, but church should take on any zoning variances required to secure right for signage.)




ACTION Exterior Windows

IMPORTANCE Desired

DESCRIPTION

While we recommend against replacing the existing windows because of their unique character, there may be an opportunity to enhance the retail presence through window graphics or lighting. These types of improvements should be per-mitted and encouraged

IMPACT Medium

COST Low (Potentially a Tenant Improvement cost)

ACTION Create Interior Lobby


DESCRIPTION

Create a clear distinction on the interior for proposed retail space. An interior “storefront” will allow for the expression of the potential tenant brand that is not achievable on the exterior. The separation of uses for proposed spaces (retail and semi-private classroom or meeting space) that allows them to function more seam-lessly. Additionally, a clear separation of lobby and retail area will allow for right-siz-ing of retail space for estimated demand. Small potential for increased traffic by space within the building by maintaining an existing entrance for core building functions.

IMPACT High

COST High

PUBLIC SPACE IMPROVEMENTS

ACTION “Storefront” improvements

IMPORTANCE Desired

DESCRIPTION

The proposed new partition separating the retail space from the public lobby may be customized to incorporate key elements of the retailer’s identity and brand. These improvements might include additional materials that are used in the design of the space or “signage” elements. This work, if applicable, should be done con-currently with the construction of the interior space, and would likely be a tenant improvement cost.

IMPACT Medium

COST Varies (Potentially a Tenant Improvement cost)

Streetsense | 24

ACTION Upgrade existing restrooms

IMPORTANCE Essential/Recommended

DESCRIPTION

Enhancing the level of finish and upgrading quality (but not necessarily quan-tity) of fixtures within the restrooms is a key component of the public area improvements. If restrooms are not provided within the retail space, these improvements are essential; if they are provided they are recommended. In either case, it is likely these restrooms will get more use than they do currently.

IMPACT High

COST High

ACTION Upgrade public corridor


DESCRIPTION

Enhancing the upgrading the level of finish in now-public areas will help the space feel less like a basement to new visitors and retail patrons. New doors are recommended to secure areas that should remain private. There may be security reasons for restricting access from the public corridor.

IMPACT High

COST High

ACTION Create flexible classroom/gathering space

IMPORTANCE Desired

DESCRIPTION

The existing storage rooms along the eastern wall are an opportunity to create a non-retail use that may benefit the proposed retail space. This area is rec-ommended for gathering space because it can be separated from the retail area by the corridor, and because the windows on this side of the building are not suitable for retail. Moveable partitions should be considered so that this space remains flexible for groups of various size. Also provides an opportunity for mission-related church functions to be visible to but not imposed on retail patrons.

IMPACT Medium

COST High




ACTION Upgrade prep kitchen


DESCRIPTION

Because the full-service kitchen is remote and will be shared with church functions, we do not recommend its use for any potential retail tenants. Instead, the existing prep area should be refinished and its fixtures upgraded. We do not anticipate any potential user will require venting or significant equipment but it has been used for some time as a supplementary storage area and has experienced more than a normal amount of wear and tear. Cabinets and counter-tops should be replaced, preferably with stainless steel fixtures that are easier to keep clean. This work may be completed as part of the tenant fit-out.

IMPACT High

COST Medium (Potentially a Tenant Improvement cost)

ACTION Relocate heating units under windows


DESCRIPTION

Heating units currently exist under the windows along the south wall. These units affect the flexibility of the potential seating and/or layout of the space. Consider relocating them to the ceiling if feasible.

IMPACT Medium

COST High (Potentially a Tenant Improvement cost)

ACTION Upgrade interior finishes

IMPORTANCE Desired

DESCRIPTION

To make the retail space attractive to the widest range of potential tenants, consid-er creating a “white box” condition that is nearly move-in ready. While attracting a tenant that will design a custom interior, it may be desirable to lease the space more quickly. Improvements such as replacing the tile floor, the drop ceiling, paint-ing all walls, and building out a back-of-house storage space near the prep kitch-en will likely help with the marketability of the space. Sue to the cost of adding restrooms within the retail space we do not recommend their addition with this improvement, but it will be critical in this scenario to upgrade the church restrooms to share with the potential retailers.

IMPACT Medium

COST High

Streetsense | 26

MEP ASSESSMENT

Please see the MEP Assessment in the Technical Appendix section.


FINANCIAL ANALYSISFOR





FINANCIAL ANALYSIS

FINANCIAL ANALYSIS In determining the financial feasibility of this project, the financial division, in conjunction with the church’s key stakeholders, should first identify the specific business objectives of the church to in-clude the church’s risk profile, return of investment, and return on investment. An entity’s risk profile is the entity’s financial tolerance should an event occur that would affect the achievement of the entity’s objectives, positively or negatively. Return of investment is defined as the moment in time when the entity’s financial investment is returned, oftentimes known as the “break even” point. Return on investment, commonly known as ROI, can more abstract, but is crucial to define internally before undertaking risk. Return on investment is a gauge to measure the amount of return on an investment relative to the investment cost which determines an investment’s efficiency. While professional real estate investors, whose primary function is to make the most financially efficient investments, will use a formula to calculate the ROI, this measurement may not be the most accurate measurement to determine the return on investment for the Foundry Methodist Church, whose primary objective is to provide a coffee and snack location for church visitors and a functional space for church activities.

LEASING TOOLS & CONSIDERATIONS

Rent Abatement

Rent abatement, more commonly known as free rent, is a business tool that can be used to increase the attractiveness of the deal from the potential retailer’s perspective. Rent abatement can take many forms in a commercial lease, from providing one month of free rent at the beginning of each calendar year of the lease term to providing free rent for a period of time at the beginning of the lease term. Rent abatement is commonly used to shift the initial risk from the tenant to the landlord. Landlords will provide rent abatement to tenants for a period of time at the beginning of the lease in order to allow the tenant to get their feet under themselves, build a customer base, and generate income be-fore having to allocate profits, debt, or equity to paying rent. By eliminating a rent payment from the tenant’s budget for a set period of time, the amount of debt and equity a retailer might need to open is decreased and therefore lowers the risk and barrier of entry in the market for the tenant.

Tenant Improvement Allowance

Tenant improvement allowance, commonly known as TI, is a sum of money provided by the landlord for the purposes of renovating, improving, or building out the landlord’s property being leased to the tenant. The amount can be expressed as a lump sum, but is typically expressed in a per square foot amount. The amount of TI that is provided by the landlord depends on the current condition and us-ability of the space. Similar to rent abatement, TI is another business tool that can be used to increase the attractiveness of the deal for the tenant. By providing a healthy TI package, the tenant’s upfront investment into a new space and overall risk is decreased.

Kick-out Options

A kick-out option is a leasing tool that allows a tenant or landlord to sign a long term lease but with the option to terminate early for any predetermined reason that have been agreed upon. From the landlord’s perspective, it allows the landlord to take a risk on a tenant that may not have a long credit history. For a prospective tenant, a kick-out option clause can allow them to take a risk on a space that may not fit the criteria for an ideal retail space, but has potential to become a successful retail business over time. A kick-out clause will include several negotiable terms, to include the year(s) in the lease term that a kick-out option can be exercised, the reason for exercising the kick-out option,

TECHNICAL APPENDIX

Streetsense | 29

SCENARIO 1

LEASE UP TI ALLOWANCE

RENT SOFT COSTS

MISSION & VALUES

and any reimbursements that will be paid back to the landlord such as leasing commissions and tenant improvements. Risk is allocated depending on the negotiated terms. For example, should a tenant exercise their kick-out right and vacate the property before the end of the lease, the landlord should be financially prepared for this event to account for vacancy and rent loss, leasing costs, and future tenant improvement allowances.

Lease Up Period

The lease up period is the duration of time the property sits vacant without a tenant and ends on the lease commencement date. During the time, the commercial brokers market the property, engage tenants, and negotiate leases. While lease up periods are typically dictated by the current state of the real estate market, the landlord’s preference in tenanting can extend the leasing period as brokers

FINANCIAL SCENARIOS The graphics below are to merely a representation of the correlation between the leasing tools and the church’s business objectives in pursuing this venture, which include the return of investment and return on investment; however the scenarios correlate to the proformas provided. While the sce-narios described below are possible financial outcomes that prove viability of the project, there are an infinite number of outcomes that can arise as lease negotiations take shape. Again, defining the church’s business objectives for investing in this project first will better help determine the leasing tools and a critical events schedule necessary to achieve the desirable financial objectives.

RETURN OF INVESTMENT

In this scenario, Foundry’s key stakeholders have determined that tenanting a coffee operator with a similar mission and values is the highest priority. This coffee operator would host live music, book reviews, speakers, etc. that would be targeted to, but not exclusively for, the church’s congregation. Since the return on investment is in this abstract form of providing the church and surrounding community with a retailer that furthers the teachings, beliefs, and values of the church, cash flow takes a lower priority and ultimately pushes out the return of investment to a date further into the future.

As previously discussed in the leasing tools section, rental prices and tenant improvement allowanc-es are leasing tools that are used to help achieve the primary business objectives. In this scenario, the business objective is to locate a tenant with a similar mission and values. As there are only a few coffee retailers that fit the desirable criteria, the landlord will need to be extremely generous to en-courage these retailers to move on the space. One of the most common obstacles a landlord faces when leasing a space is the gaining traction from an interested tenant. For these reasons, the pro-posed rent will need to be below fair market value and the TI allowance will need to be generous. For a retailer, expanding their existing business requires a great deal of attention and bandwidth.


SCENARIO 2


RENT SOFT COSTS

MISSION & VALUES

In this scenario, Foundry’s key stakeholders have determined that the return of the investment takes the highest priority. In other words, the desired outcome of this project is to break even as soon as possible, which requires a short lease up period, an aggressive marketing and brokerage efforts, and an attractive leasing package. In this scenario, however, Foundry would need to sacrifice the desired cohesiveness between the church and coffee cafe in regards to a shared mission and value set. It is likely that the coffee operator would be a profit-driven, commercial enterprise with no underlying purpose. In this financially- driven scenario, the return on investment is expressed by the efficiency of the investment.

In order to achieve a return of investment, the project needs a cash flow as soon as possible. Cash flow is realized when the property is leased, the tenant begins paying rent, and the landlord begins to generate income. Cash flow can be both negative and positive and is typically negative at the be-ginning of the term as revenue pays back initial project costs. When the cash flow has paid back the initial project costs and offsets the operating costs, the cash flow is positive and return of investment is realized. Due to the undesirable retail site conditions explained earlier in the document, Foundry will need to provide substantial financial resources for soft costs, which include site plans, renderings, floor plans, and marketing materials. These documents will be utilized by brokers to attract retailer attention.

Since Foundry will be sacrificing the desired cohesiveness between the church and the coffee cafe, the brokers will be able to engage with national and established coffee brands. These national brands have experience, bandwidth, capability, and financial resources to expand in the market. They have the financial capabilities to pay market rent or higher, which is a critical influencer on cash flow.

RETURN OF INVESTMENT

Therefore, while both parties might agree in the goal and the outcome, a generous leasing package will give the retailer a reason to act sooner rather than later.

A number of critical events can occur during the lease up period, which will effect the amount spent upfront before a tenant is located and cash flow begins. These events include completing the rec-ommended site work provided in the architectural assessment, architectural drawings and render-ings, and site plans. The more “turn-key” a retail space is, the more marketable the site is to potential tenants. Therefore, in this scenario, Foundry should consider completing these activities as soon as possible but also be prepared to sit on a retail-ready site that does not generate any revenue during the lease up period.

Streetsense | 31

SCENARIO 3


RENT SOFT COSTS

MISSION & VALUES RETURN OF INVESTMENT

Foundry strikes a balance between scenario 1 and scenario 2 in the third scenario. The key stake-holders are willing to compromise on the desire to have a coffee cafe that directly coincides with the church’s values and mission. In return of this compromise, the rental rates can be slightly higher than scenario 1, but lower than scenario 2. The Colada Shop is an example of retailer that could work in this scenario. The Colada Shop has a mission to bring people together and facilitate conversation through coffee and food, but is not rooted in faith. In this scenario, Foundry should plan for at least a year for the lease up period. Similar to the two previous scenarios, Foundry will need to complete the recommended sitework in order to transform the space into a leaseable retail space.

CONCLUSION

Any real estate endeavor inherently assumes financial risks that are woven into the fabric of the busi-ness objectives. The purpose of this financial analysis is to outline the possible financial outcomes of pursuing three diverse approaches to the development of a coffee cafe in the lower-level portion of the Foundry United Methodist Church. Each scenario includes a narrative that describes the business objectives of the enterprise and the critical events that occur to achieve the specified business objec-tives.

An analysis of the financial models found that all three scenarios depict the business profile of a long term hold entity. The return of investment (the break even point) occurs in year 10 or later in all scenarios including the scenario where ROI is prioritized over other investment metrics. This is largely due to the high cost of site work necessary associated with transforming the non-retail space into a viable retail space. As a landlord, it is difficult to gain attention and traction with tenants in the current over saturdated market. While architectural drawings, renderings, and site plans may offer a prospective tenant a visual representation of the proposed sitework, a landlord is more likely to gain traction with a tenant if the recommended sitework is already completed, which requires a large amount of upfront capital resources.

https://www.zillow.com/homes/for_sale/Anaheim-CA/house,townhouse_type/25129881_zpid/16764_rid/2-_beds/33.852544,-117.893236,33.819963,-117.93937_rect/14_zm/


TECHINCAL APPENDIX

MEP/FP EXISTING CONDITIONS NARRATIVE

Retail Tenant at Foundry United Methodist Church 1500 16th St NW, Washington DC 20036

Prepared For:

STREETSENSE 3 Bethesda Metro, #140

Bethesda, MD 20814

Prepared By: Potomac Energy Group Inc.

2901 Telestar Court Suite 400

Falls Church, Virginia 22042

March 27th, 2017

2 | Page Foundry United Methodist Church – Tenant Fitout MEP/FP Narrative 2017-03-25

Table of Contents

I. INTRODUCTION

II. MECHANICAL A. EXISTING CONDITIONS B. NEW TENANT ESTIMATED REQUIREMENTS C. LIST OF MAJOR HVAC EQUIPMENT D. GLOSSARY OF TERMS

III. ELECTRICAL

A. EXISTING CONDITIONS B. NEW TENANT ESTIMATED REQUIREMENTS C. LIST OF MAJOR HVAC EQUIPMENT D. GLOSSARY OF TERMS

IV. PLUMBING


V. FIRE PROTECTION



I. INTRODUCTION

The purpose of this report is to provide the owner and architect with a written narrative description of the existing MEP/FP equipment, utilities and systems at the future tenant fitout to the existing Davenport Center located in the basement of the Foundry United Methodist Church. The report also includes feasibility and a summery to provide new or modified mechanical, electrical and plumbing distribution systems to support the new tenant retail layout as proposed by StreetSense.

Existing Partial Basement Plan Layout Proposed Tenant Layout

MEP/FP Summary Table

HVAC

Existing Cooling Capacity (Tons) 9 Tons Tenant Required Cooling Capacity (Tons) Up to 8 Tons Existing Heating Capacity (MBH) 185 MBH Tenant Required Heating Capacity (MBH) 69 MBH Existing Tenant Ventilation (CFM) 870 CFM Tenant Required Ventilation (CFM) Up to 1000 CFM (provided by existing AHU)

Electrical Total Spare Power Available (Volts/Ø/Amps) 400A at 208V/3Ø Tenant Required Power (Volts/Ø/Amps) Up to 400 A at 208V/3Ø

Plumbing

Existing Cold Water Size 2” Tenant Required Cold Water Size Up to 1-1/2" with new submeter Existing Hot Water Size Electric Storage Tank - 30 amps Tenant Required Hot Water Size New Electric Hot Water Heater (Size TBD) Nearby Sanitary Available for new Fixtures? Yes

Fire Protection

Existing Sprinkler System? No New Sprinkler System Required? No* (requires confirmation)


II. MECHANICAL A. EXISTING SYSTEM DESCRIPTION

The existing Davenport Center and adjacent storage room and snack bar are heated and cooled by 2-pipe fan coil units. The fan coil units are connected to the base building boilers, chiller, and pumping distribution system. The fan coil units are equipped with manual controls and are not interlocked to any central controls systems. Chilled water/cooling to the spaces are only available during the cooling season, while heating hot water is only available to the spaces during the summer time. A 100% outside air handling unit located in the basement mechanical room provides the ventilation needs for the spaces during occupied periods. The intake for the unit is located in the basement exterior wall facing the courtyard. Relief air for the spaces are served by a relief fan which discharges to the courtyard via a duct gooseneck. All equipment serving the scope of work areas were installed in 2006 and are in good condition. Fan coil units have an ASHRAE median life expectancy of 20 years; the foundry fan coil units have at least 10 years of life left before replacement would be anticipated. Similarly the Air Handling Unit has a median life expectancy of 25 years and would be anticipated for replacement or major repairs in another 15 years.

Typical Existing Fan Coil Unit Existing 100% Outside Air Unit


See below for HVAC existing equipment tables:

B. NEW TENANT ESTIMATED HVAC REQUIREMENTS:

Heating and Cooling Estimated Requirements Tenant (2,300 sqft): Total Cooling Required: Up to 8 Tons Available Cooling at existing space: 9 Tons Total Available Total Heating Required: 69 MBH Available Heating at existing space: 185 MBH Total Ventilation Required: Up to 1000 CFM Available Ventilation at existing space: Up to 1000 CFM The total heating/cooling capacity from the existing ventilation and dual temperature piping into the scope of work area provides up to 9 tons of cooling, up to 185 MBH of heating, and up to 1000 CFM of ventilation. Preliminary HVAC load calculations indicate that there is sufficient capacity in the existing systems to provide the HVAC requirements for the proposed tenant spaces Proposed HVAC Equipment Option #1: Reuse existing fan coil units, and redistribute ductwork from existing air handling unit to the proposed tenant layouts. Provide new exhaust fan for kitchen/bar and duct to existing relief fan. If metering of the proposed tenant’s chilled water and heating hot water usageis desired, (2) BTU meters will be installed on the existing dual temperature piping branches that serve the proposed tenant layout. Option #2: Replace existing floor mounted fan coil units with new above ceiling/recessed fan coil units. New ceiling fan coil units would be located above the ceiling and ducted to the existing ventilation system and existing dual temperature piping distribution system. Provide new exhaust fan for kitchen/bar and duct to existing relief fan. If metering of the proposed tenant’s chilled water and heating hot water usageis desired, (2) BTU meters will be installed on the existing dual temperature piping branches that serve the proposed tenant layout.

Existing HVAC Equipment Table

Name Serves Capacity Manufacturer Model # Quantity Age Condition

Fan Coil Unit Davenport Center 1-1/2 Tons Trane FCB06 4 2006 Good/Working

Fan Coil Unit Storage Rooms 1 Ton Trane FCB04 2 2006 Good/Working

Fan Coil Unit Snack Bar ¾ Tons Trane FCD06 1 2006 Good/Working

AHU-1 Vent. to Basement 5400 CFM Trane MCCB012UAUA 1 2006 Good/Working

EDH-1 AHU-1 35 KW Indeeco Not Verified 1 2006 Unknown


C. OUTDOOR VENTILATION AND EXHAUST AIR REQUIREMENTS

Ventilation will be provided in accordance with the International Mechanical Code 2012, Table 403.3:

Outdoor Ventilation Air Rates (for typical project spaces):

Occupancy Type

CFM per

person

CFM per

sqft

People/ 1000 square feet

Retail Sales 7.5 0.12 15 Reception Areas 5 0.06 30 Corridors 0 0.06 0 Storage Rooms 0 0.12 0 Dining Rooms 7.5 0.18 70

Exhaust Ventilation Air Rates:

Fixture Type or Space Type

Exhaust Rate CFM

(Continuous)

Water Closet 50 CFM minimum (75 CFM recommended)

D. GLOSSARY OF TERMS

ASHRAE American Society of Heating Refrigeration Air Conditioning Engineers BOD Basis of Design BTU British Thermal Unit CFM Cubic Feet per Minute EF Exhaust Fan EDH Electric Duct Heater HVAC Heating Ventilation Air Conditioning MBH Millions of BTU/hr MEP/FP Mechanical Electrical Plumbing Fire Protection OA Outside Air TON 1 Ton of Cooling = 12,000 Btu/hr UL Underwriters Laboratory WSHP Water Source Heat Pump


E. EXISTING SYSTEM DESCRIPTIONS

Power: The existing electrical service (208 Voltage/3Ø) to the building originates from vaults located in the north alleyway and terminates to a 2500 amp switchboard with CT cabinet at the main electrical room in the basement. There is a spare 400 A breaker in the existing switchboard. Power to the existing davenport center, storage room, and snack bar/kitchen are circuited to a 225 amp panel located in the adjacent corridor. The panel feeds receptacles, lights and equipment in the rooms, as well. The panel also provides power to other rooms in the basement.

Lighting: Existing interior lights consist of 1x4 flourescent light fixtures, and nd downlights. Lighting is controlled by on/off switches.

Existing Electrical Panel Typical Lighting Fixtures

Fire Alarm: The fire alarm system consists of smoke detectors, pull stations at the exits, and audiovisual devices. The devices connect to the tenant’s fire alarm control panel.

F. NEW TENANT ESTIMATED POWER REQUIREMENTS:

New Tenant Electrical Requirements Tenant (2,300 sqft): Required electricity: 208/3Ø, Up to 400 Amps Available Electricity at existing space: 208/3Ø, 400 Amps Available The existing 400 amp breaker at the switchboard in the main electrical room will provide power for the proposed tenant space. Between 200 amps to 400 amps is the anticipated power requirements for the proposed layout. A new electrical panel will be designed for the tenant and will be circuited to the tenant’s lighting, HVAC fan coil units, and new kitchen appliances and equipment. Electrical panel would be submetered off of the existing electrical service. New lighting for the space should be 120V. Lighting controls will include occupancy sensors and automatic controls where required by code. New fire alarms will be designed per code and connect back to building fire alarm control panel. NAC panel will be designed if space is needed for additional fire alarm devices.

G. GLOSSARY OF TERMS

A Amps NAC Notification Appliance Control Panel V Voltage

10 |

Foundry United Methodist Church – Tenant Fitout MEP/FP Narrative 2017-03-25

IV. Plumbing

A. EXISTING SYSTEMS DESCRIPTIONS

Domestic Cold Water: The existing 2” water service and water meter are located underground in the west parking lot of the building. The service distributes to existing plumbing fixtures and hot water heaters in the building, including fixtures at the snack bar kitchen.

Domestic Hot Water: - Hot water to the existing snack bar kitchen originates from a 30 amp electrical hot water storage tank heater located in the basement electrical room. The heater is in poor condition.

Existing Basement Hot Water Heater Existing Pantry Kitchen

Gas: The building is equipped with a 2” gas service that provides gas to the commercial kitchen kitchen. It is anticipated that the coffee tenant will use electric appliances. Sanitary – The main 5” sanitary service exits the building at the west parking lot and routes under the tenant floor. New plumbing fixtures will connect to the existing sanitary distribution system at this location. A new sewage ejector is not anticipated for the project. Plumbing Fixtures: The existing snack bar kitchen is equipped with two kitchen sinks. The sinks receive cold and hot water from the building hot/cold water distribution systems. Sanitary from the sinks routes south and connects to the main 5” sanitary line that routes under the davenport center slab.

Existing Pantry Kitchen Sink Piping


B. NEW 2ND FLOOR TENANT ESTIMATED REQUIREMENTS:

Domestic Cold Water Requirements Tenant #105 (1,650 sqft): Required: Up to 1-1/2” cold water line Available Cold Water at space: 2” Cold Water Existing Taps

Based on architectural plans that show additional renovations and plumbing fixtures added to the basement it is anticipated that a new water service will be required. Size of the water service shall be coordinated with the base building renovation requirements. Domestic Hot Water Requirements Domestic Hot Water shall be determined based on the fixture counts and types planned for the new tenant space. The tenant shall plan for new electric hot water heater storage tank.

Sanitary Requirements The new tenant fixtures will connect into the existing 5” lateral running under the tenant slab. New sewage ejector is not anticipated. Gas: It is anticipated that the coffee tenant will use electric appliances. GLOSSARY OF TERMS ADA Americans with Disability Act ASTM American Society for Testing and Materials DWV Drain Waste Vent

IBC International Building Code GPM Gallon Per Minute Lavs Lavatories PVC Polyvinyl Chloride PSI Pounds per Square Inch


V. Fire Protection

A. EXISTING SYSTEMS DESCRIPTIONS

The existing tenant space is not equipped with an automatic wet pipe sprinkler system.

B. NEW TENANT REQUIREMENTS:

Sprinkler system is not anticpated for the space due to an exit door opening directly to the outdoors (to be confirmed by streetsense and/or code consultant).

FOUNDRY CHURCH CAFÉ 1500 SF

LOCATION: NW Washington, DC

DATE: TRADE

CODE QTY UNITS $/UNIT SUBTOTALS TOTALS NOTES / REFERENCE

1.00 PERMITS / INSPECTIONS $4,200.00

1.10 ARCHITECTURAL AND ENGINEERING FEES by Owner

1.20 PRECONSTRUCTION SERVICES NIC

2.00 SITEWORK / SITE UTILITIES $44,500.00

17-Mar-17

POTOMAC CONSTRUCTION SERVICES, INC.CONSTRUCTION COSTS ESTIMATE WORKSHEET

by Owner

Owner to obtain and pay for Building Permit and all

associated fees. General Contractor will be

responsible for trade permits.

2 Engineering / Testing Services 1 ls by Owner

1

Building Permits / 3rd Party Plan Review / Permit Expediting / and

associated Permitting Fees / Certificate of Occupancy 1 ls

DESCRIPTION

All Engineering / Testing Services shall be provided by

Owner under separate contract with applicable

Design/Engineering firm(s).

Allowance for 3rd Party Inspection Agency to provide

required Trade and Building Inspections

2

Owner to engage Architect / Engineer under separate

contract. Fees for any Structural review will be paid by

Owner.

To be Owner Provided

1

Preconstruction Services including: Site Reviews and Surveying /

Constructability Review / Schedule Analysis / DD Meetings / Document

Reproduction / Travel / Conceptual Budgeting / Value Engineering

Analysis / Exploratory Demo / Other….. 1 ls

We have not included any new Utility Services or any

Utility upgrades. LL to provide all required utilities at

the site. Owner to Secure all Utility Services.NIC

Tree removal and disposal at SE Corner 1 ls $1,500.00 $1,500.00

Final Details TBD

Allowance to create a new exterior sidewalk / pathway to connect the

existing stair at the SE corner to the sidewalk. Will include modification at

SE entry stair only and associated landscape modifications at SE corner.

$3,200.00

Testing Services (as/if required) 1 ls by Owner

by Owner

ls $40,000.00 $40,000.00

NIC

No Preconstruction Services are included in the cost

estimate at this time.

1 ls

2

1

3 Builders Risk Insurance 1 ls by Owner

All architectural and engineering services are Owner Provided

1

4 Allowance for 3rd Party Inspections 1 ls $3,200.00

Requirement TBD

3

Site Utilities: We assume that all site utilities are existing and of adequate

capacity.

All Engineering / Testing Services shall be provided by

Owner under separate contract with applicable

Design/Engineering firm(s).

5 Allowance for Dumpster / Street Permit during Construction 1 ls $1,000.00 $1,000.00

1

ls1



DATE: TRADE


17-Mar-17


DESCRIPTION

2.10 DEMOLITION / DEBRIS REMOVAL $10,500.00

- Removal of existing flooring

- Selective demolition of existing partitions

- Removal of existing ceiling finish at Café area

- Selective removal of existing equipment, fixtures, and millwork

- Demolition of Restroom Finishes

- Misc. Demolition (as required)

2.20 PEST REMOVAL NIC

2.30 ABATEMENT NIC

3.00 CONCRETE $3,300.00

4.00 MASONRY $1,200.00

5.00 STRUCTURAL STEEL $1,500.00

ls $7,500.00 Final Scope TBD

Trash Hauls / Debris Removal 4

1 allow $1,200.00

$750.00

$7,500.00

allow $1,500.00 $1,500.00 Requirements TBD

Allowance for Minor Cut, Patch, & Repairs to existing masonry for MEP

penetrations (Potential Electrical runs / minor repair /other..)

2

$3,000.00 Details TBDAllowance for Landscape enhancement between the ramp and sidewalk. allow $3,000.00

ls

see Add /

Alternate

Allowance #1

Carried as an Add / Alternate Allowance. May not be

required.4

Allowance to widen the existing ramp / stair and provide new retaining

wall. 1

1

hauls

1 ls NIC

Removal or handling of hazardous materials (Asbestos, Lead Paint, Mold,

Other)

Allowance for Core drilling and concrete infill at Cores as required.

1 Provide Selective Interior Demolition to include the following: 1

by Owner as applicable.

by Owner or Landlord under separate contract as

applicable.

ls

$1,800.00

$1,200.00 Requirements TBD - PCS Estimate

1

Allowance for Misc. Angles / Bracing / Supports as required (Details /

Requirements TBD). 1 allow $1,500.00 $1,500.00

$1,800.00

1

Pest removal / extermination

ls1

1

1

Allowance for minor floor slab patchwork / leveling / grinding / flashing

to prep for new finish floor

Drawings not issued. Assume minor requirement only.

5

NIC

We were not able to access the space beneath the

proposed Café space. We assume that it is an

accessible area.

1

2 1

$3,000.00

1



DATE: TRADE


17-Mar-17


DESCRIPTION

5.10 MISCELLANEOUS METALS NIC

6.00 ROUGH CARPENTRY / JOBSITE LABOR $8,000.00

- Clean-up / Protection Labor included

- Protection / Cleaning Materials included

- Floors / Wall Finishes / Cabinetry / Food Service Equipment included

- Install new interior DFH included

- Temporary Window Blackout (Paper) included

- Misc. Carpentry included

- Final Clean included

6.10 ARCHITECTURAL MILLWORK $40,000.00

- included

- Back Service Counter (Cabinets, countertop, shelving) included

- Condiment and Trash Station Millwork included

- Built-in Bench Seating included

- Running Trim / Base included

- Other Misc. Millwork (Scope TBD) included

- Shop Drawings / Submittals / Delivery / Handling included

7.00 THERMAL AND MOISTURE PROTECTION $2,200.00

8.00 DOORS / FRAMES / HARDWARE $30,800.00

1 allow $1,000.00 $1,000.00 Scope / Requirements TBD

ls

1

1

Service Counter Millwork (Cabinets, die wall façade, top)

1 N/A - Assumed no requirement

$8,000.00

1

$1,200.00 $1,200.00

Jobsite Labor / Continuous Clean / Finish Protection Labor

ls

$8,000.00

1 ls N/A

ls

1

5,000.00$5,000.00

1

$40,000.00

allow

2 Waterproofing at exterior penetrations (Scope TBD)

2

Allowance to replace existing Entrance Door (new Entry Door

Specification = TBD) Details / Specifications TBD

Package Allowance. Specs / Details TBD

PCS Estimate

1

Allowance for Millwork package inclusive of the following: $40,000.00

1 Caulking at the intersections of dissimilar surfaces throughout

1

Provide Operable Partitions to separate classrooms (inclusive of required

structural supports) 2 ea $10,000.00 20,000.00 Specifications TBD



DATE: TRADE


17-Mar-17


DESCRIPTION

8.10 STOREFRONT / GLAZING $21,500.00

9.00 GWB ASSEMBLIES / CEILINGS $25,000.00

- Metal Framing for new partitions, bulkheads, ceilings. included

- Drywall as required included

- Acoustical Ceiling Grid and Tile (Specification TBD) included

- included

- FRP Installation included

- in-wall Blocking included

- In-wall Insulation included

- Level (4) finish at all painted walls, bulkheads, ceilings. included

9.10 FLOORING $22,500.00

3 ea.

1 Allowance for Floor Finishes (Specifications TBD) 1500 sf

by Owner as/if applicable

by Owner under separate contract as applicable

$25,000.00 $25,000.00

$950.00

ls

Provide new Door / Frame / Hardware sets at Classrooms $2,850.00

Provide security hardware at new / existing doors (as/if required) by Owner

1 ls

$2,000.00 $2,000.00 4

Allowance for new double Door / Frame / Hardware at plan North end of

Public Corridor

5

3

Allowance for new single Door / Frame / Hardware at end of Public

Corridor $950.00

1

$15.00 $22,500.00

1

$950.00

1 ls

Flooring Specifications TBD

Cut and patch throughout as required

Drawings PendingProvide GWB / Ceiling Assemblies inclusive of:

6

1 ls

1

Existing Windows to remain. Allowance for minor repairs / caulking to

existing windows 1 Allow $1,500.00 $1,500.00 Requirements TBD

2 Provide graphics at existing windows 1 ls by Ownerby Owner under separate Graphics / Signage

Contractor

3 Provide Interior Storefront at Café Entrance (in corridor) 1 allow $20,000.00 $20,000.00 Details / Specifications TBD



DATE: TRADE


17-Mar-17


DESCRIPTION

9.20 TILE / STONE $11,000.00

9.30 PAINTING / VWC $4,500.00

10.00 SPECIALTIES $6,400.00

11.00 EQUIPMENT by KEC

1

ls

Furnish and Install Food Service Equipment

$4,500.00

1

1

by KEC1

ls

We assume that the Owner will purchase and have

delivered and installed all Food Service Equipment

under separate vendor contract.

5

1

1 ls

by Owner

lsWindow Treatments / Draperies

by Owner as applicable under contract with Separate

Vendor

1 Allowance for interior Painting throughout 1,500 sf $3.00

$8,000.00 Specifications / Details TBDAllowance for new tile floor and wall finishes at ETR Restrooms

4 Allowance to provide new Restroom Accessories 2 rstrms

1

1

by Owner

Signage / Graphics

by KEC

2

Fire Extinguishers throughout (as required)

allow $8,000.00

by Owner as applicable under contract with Separate

Vendor

$1,200.00 $2,400.00

2

Allowance for new Vanity Tops at existing Restrooms (with required

supports) 2 rstrms $1,500.00 $3,000.00

3 Allowance to provide new Restroom Partitions 1 Allow $4,000.00 $4,000.00 Specifications / Details TBD



DATE: TRADE


17-Mar-17


DESCRIPTION

12.00 FURNISHINGS / FF&E by Owner

13.00 SPECIAL CONSTRUCTION $3,700.00

14.00 CONVEYING SYSTEMS NIC

15.00 PLUMBING $41,000.00

- Plumbing Permit included

- included

- Provide fittings and valves as required included

- Provide floor sinks and drains as required included

- Provide rough-in and final connection to FS Equipment included

- Provide Gas Piping included

- Final connections to Owner Supplied FS Equipment included

15.20 SPRINKLER NIC

15.30 HVAC $45,000.00

- included

- included

1

$1,200.00 $1,200.00

Scope TBD

Provide new supply, waste, and vent piping as required

2

Plumbing Scope TBD

1

1

Provide all HVAC equipment as required (Relocate or replace existing

floor mounted units)

by Owner

Allowance for finish work at space below (requirement unknown)2

Furnish & Install all Tables & Tops w/ bases, Stools, Chairs, Communal

Tables, Artwork, Sculptures, Signage, and Specialty Items

Allowance for GPR for slab penetrations (Note: We assume that X-ray is

not required)1 allow

$45,000.00

ls

1

1

ls

$2,500.00

Not Applicable

ls

1 Provide HVAC scope to include the following: (Design TBD) 1 Allow $45,000.00

1 Assumed not required

1 allow $2,500.00

1

$38,500.00

N/A

1 allow $38,500.00

Requirements = TBD. Structural Engineer

review/approval by Base Building Engineer. LL or

Tenant responsible for cost of Engineering review

(as/if applicable)

We assume that the Owner will purchase and have

delivered and installed all FF&E items (Fixtures,

Furnishings, and Equipment) under separate vendor

contract(s). - Deliveries to be coordinated with PCS.

Provide all new Ductwork and modify existing as required

1 ls $ 2,500.00

1

NIC

Allowance for new sinks and faucets at Restrooms

HVAC Design and Specifications TBD

$2,500.00

Provide Plumbing Package inclusive of the following:



DATE: TRADE


17-Mar-17


DESCRIPTION

- HVAC controls as required included

- Provide RGD's as required included

- Testing and Balancing included

- Rigging as required included

- Permits and inspections included

16.00 ELECTRIC 64,500.00$

- Electrical Permit included

- Electrical Demolition as required included

- included

- included

- Final Electrical Connections to Kitchen Equip. included

- Low Voltage Cabling - assumed by Owner by Owner Assumed by owner direct vendor(s)

- Provide conduit for low voltage cabling (as required) included

- Allowance for Light Fixtures 1 allow $25,000.00 $25,000.00

- Installation of Light Fixtures included

- Install Fire Alarm Devices included Tie-in and programing to Existing by Owner

- Contractor Provided Lighting Package 1 included

17.00 LANDLORD / JURISDICTIONAL FEES by Owner

SUBTOTAL: $391,300.00

GENERAL CONDITIONS: $63,956.95

- Site Supervision / Project Management / Admin

GROSS RECEIPTS TAX: $391.30

CONTINGENCY: By Owner

CONTRACTORS FEE: $39,130.00

TOTAL CONSTRUCTION BUDGET: $494,778.25

Provide Electrical Package inclusive of the following: 1 $39,500.00 ls

Provide Electrical Gear as required

Provide all electrical cabling, conduit, junction boxes, switches,

receptacles, & disconnects required for new addition and re-work at

existing Bar/Dining area

$ 39,500.00 1



DATE: TRADE


17-Mar-17


DESCRIPTION

CODE ALTERNATES QTY UNITS $/UNIT TOTALS

- Demo of existing retaining wall / stairs / ramps / railings included

- Excavation for new retaining wall included

- Shoring included

- included

- included

- included

- included

included

Notes:1. As this is a conceptual budget estimate provided in the final stages of design development, we suggest carrying a budget design contingency of 15%.

2. The drawings and specifications are limited at this point. In developing this conceptual estimate, we have made many broad assumptions based on

the current drawings, our review of the space, and our understanding of the design intent. As more information becomes available, we will provide

adjustments and updates as applicable.

3. We assume that all Utilities Services the Building are: Landlord provided // of adequate capacity for Tenant use // and run to the Tenant space. Tenant is responsible

for securing Utility Services accounts in a timely manner and for obtaining any required meters from Utility providers - or submeters (as/if required by Landlord).

- All Utility Service forms/letters and calculations of required data are to be filled out by the Owner and/or the Owner's Engineering team as applicable.

PROPOSED ALTERNATES

Provide new railings / gates

Provide draining modifications at bottom of ramp

Removal / Export of excavation spoils

NOTES / REFERENCE

Details / Specifications TBD

Waterproofing at retaining wall

A.1

Budget Alternate Allowance to create new stair and widen the existing

ramp. Will require the following: 1 Allow $75,000.00 $ 75,000.00

Provide new concrete retaining wall, stairs, ramp

FOUNDRY UNITED METHODIST CHURCH CAFE FEASIBILITY STUDY FOR ... the Foundry United Methodist Church...

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Transcript of FOUNDRY UNITED METHODIST CHURCH CAFE FEASIBILITY STUDY FOR ... the Foundry United Methodist Church...