TOTS Development Company

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TOTS Development Company . Joey Qi Janka Durisova Cheng Ji Doreen Liu Sherlock Zhou Zach Kayce. Ashburn Crossing Loudoun County, Virginia. Summary Statement. Joint Venture TOTS Development & St. John Properties - PowerPoint PPT Presentation

Transcript of TOTS Development Company

TOTS Top Of Talents

TOTS Development Company

Ashburn CrossingLoudoun County, VirginiaJoey QiJanka Durisova Cheng Ji Doreen Liu Sherlock Zhou Zach Kayce

Summary StatementJoint Venture TOTS Development & St. John Properties

200 units Luxury garden-style multifamily project at the corner of Loudoun County Parkway and Gloucester Parkway in Ashburn, Virginia

Expected return over 20%Location

The Metrorail (Silver Line) will be extended into Loudoun County by 2018

Gloucester Parkway will be extended past the Redskins Park to connect with Route 28

Upcoming Silver Line and Gloucester Parkway Extension

Market Study Ruled OutRetail - Fierce competition from One Loudoun

Office - High Vacancy Rate (16.9% - 19%)

Flex/Industrial - High Vacancy Rate (14%) Oversupply (400,000 SF under construction)

Market Study DemographicsAccording to the 2010 Census:

Household Income Chart:

Loudoun CountyPopulation328,533 (2012 Estimate)Median Household Income$119,134 (#1 Ranked in USA)Household Size3.37Potential RentersMarket Study - VacancyAccording to Cassidy Turley Multifamily Snapshot Fourth Qtr. 2012

Apartment rents grew at a controlled rate of 3.1% in 2012Vacancy RateDC Metropolitan3.9%Loudoun County4.2%Average Asking Rents (Loudoun)$1505Market Study - DemandExisting competitors:Ashburn MeadowsParc Dulles ApartmentAshboroughSaddle RidgeVillage at Potomac Falls

No new construction in our immediate market

Ashburn MeadowsSaddle RidgeAshboroughVillage at Potomac FallsParc Dulles Apartment

Current YearYear 5Marginal Demand259475Improvement BudgetTotal development cost $ 38,396,050

Improvement Unit MixImprovements:Total GBA:250,025 SFTotal Net Rentable:200,000 SFTotal Units:200 unitsAverage Unit Size:1,000 SFUnit Mix:

Improvement DetailsExterior: 1st Floor Concrete; 2nd & 3rd Floor Wood Brick & Wood Facade

Interior: High-end interior finishes Granite countertops, shaker inspired cabinetry, Italian porcelain tiles, chef kitchen sinks, African hickory hardwood, marble countertops in the bathrooms Keyless entry system to enter your apartment home

Common Areas: Clubhouse - a study area/computer lounge, fitness center, pool, resident lounge, Wi-Fi, party room for rent

TimelineTimelineBegin:June 2013Construction period:24 monthsLease-up period:12 months

TeamDevelopment Team

Equity Partner

Architecture

Construction

Management Company Legal Consultant

Lender Major Participants Project Manager

Lead Engineer

Sr. Financial Analyst

Lead Architect

Sr. Developer

Sr. Developer

St. Johns Contribution$ 3,250,000Return

IRR with Reversion (2022) = 20%Sensitivity Analysis

Variables:

1- Market Rent2- Vacancy3- Cap Rate RiskMarket RiskIncreases with potential oversupply of competitive properties with the Silver Line coming on boardInterest Rate RiskInterest rate increases resulting in higherCapitalization RateInflation RiskOperating expenses inflate higher than rental rates

RecommendationJV with TOTS Development 10 acres at $3,250,0008 Pref 55% Cash Flow Split 45% Reversion SplitIRR 20% in 2022

Contact InformationTOTS Development1625 Massachusetts AvenueWashington, DC 20002(703)[email protected]

Questions & Comments

Slides Reference1- Intro2- Summary Statement3- Location4- Metro + Route 28 Ext.5-8 Market Study9-11- Improvements12- Timeline13- Development Team14- Return15- Sensitivity Analysis16- Risk17- Recommendation