A Plan for Ann Arbor`s Gratzi|Kline Parking Lot

Transcription

CityVue
A Plan for Ann Arbor’s Gratzi|Kline Parking Lot
Josh Brugeman | Masters of Urban Planning | RE Certificate
Deirdre Groves | Masters of Urban Planning | RE Certificate
John Kang | Masters of Business Administration | RE Certificate
Sandip Mody | Masters of Business Administration
December 5, 2008
Professor Peter Allen
University of Michigan
Ann Arbor, Michigan 48104
RE: Development Plan for Gratzi / Kline Lot at William and Ashley Dear Professor Allen,
On behalf of Urbanology, LLC it is our pleasure to present to you CityVue, a plan for the
redevelopment of Ann Arbor, Michigan’s Gratzi / Kline parking lot. Located at the northwest
corner of William and Ashley in Ann Arbor ’s central business district, CityVue provides a unique
mixed-use building in the heart of downtown.
CityVue responds to Ann Arbor ’s unmet needs. The building will incorporate a boutique hotel
and conferencing center, Class A office space, high-end grocer with on-the-go dining and
outdoor cafe, necessity-based retail, and residential housing. By providing this mix of uses at a
cornerstone site, CityVue promises to be a 24-hour destination connecting downtown Ann Arbor
to the Old West Side, a residential neighborhood just west of downtown.
Throughout our development process, we met with various individuals who helped mold our
design into what CityVue is today. From these meetings, we learned that CityVue must focus
on walkability, sustainability, providing access to multi-modal transportation, and meeting the
needs of the community. These needs include provisions for parking, storm water management,
and the inclusion of affordable housing. The development plan for CityVue ensures economic,
social, and sustainable benefits all within a building designed to maximize Ann Arbor ’s new zoning
and density guidelines. The architecture will enhance the downtown by incorporating aesthetic
qualities reminiscent of Ann Arbor ’s history, yet also representative of the city’s future.
The following proposal tackles the strengths, weaknesses, opportunities, and risks for the Gratzi
/ Kline lot. CityVue represents Urbanology’s commitment to enhancing Ann Arbor ’s goals of
affordability, mixed-use, downtown-revitalization, and environmentally-conscious design. The
partners at Urbanology, LLC look forward to working with the various stakeholders to advance
the vision of downtown Ann Arbor.
Sincerely,
Joshua Brugeman
Brugeman | Groves | Kang | Mody
Deirdre Groves
John Kang
Sandip Mody
CityVue TABLE OF CONTENTS
ACKNOWLEDGEMENTS 4
EXECUTIVE SUMMARY Project Goal & Objectives
Key Stakeholders Development Concept Key Financials
Timeline
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BACKGROUND The City The Site 7
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MARKET ANALYSIS Economy Demographics Real Estate Market Market Segment Analysis Stakeholders 8
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SITE ANALYSIS Current Site Physical Description
Community Context Current and Adjacent Uses Storm Water & Soil Analysis
Zoning 14
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14
MULTIMODAL ANALYSIS Mass Transit
Walking Biking Parking Brugeman | Groves | Kang | Mody
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Market Concept Building Architecture Construction Process Construction Means & Methods Project Timeline 16
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PROGRAMMING Site Program Building Program 18
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ENVIRONMENTAL CONSIDERATIONS 22
Sustainability & LEED 22
FINANCIALS CityVue Financial Goals FAR Affordable Rental Housing
Hotel Total Project Costs Equity Financing Residential Sales Summary
CityVue Revenue Summary
Financial and Sensitivity Analysis Hard and Soft Costs
Conclusion 27
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IMPLEMENTATION PLAN Phase 1 Phase 2 30
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APPENDIX A: Associate Profiles for CityVue
31
31
CityVue ACKNOWLEDGEMENTS
Mr. Dan Jacobs, Owner, A3C Architecture
Ms. Susan Pollay, Director, Ann Arbor Downtown Development Authority
Mr. Ed Shaffran, Private Developer
Mr. Dax Ponce de Leon, Partner, PMA Consultants
Mr. Jeff Kahan, Planner, City of Ann Arbor Planning Department
Ms. Michelle Elder, Broker, CB Richard Ellis
Mr. Patrich Jett, Broker, Grubb & Ellis
Mr. Scott, Stefanik, Broker, Whole Foods
Detail View of CityVue
CityVue EXECUTIVE SUMMARY
CityVue is a LEED Gold certified, large scale, mixed use development on 1.25 acres in Ann Arbor,
Michigan. The current site, Gratzi / Kline parking Lot, is located at the intersection of Ashley and
William Street, in downtown Ann Arbor. The new development will allow for many uses, total
more than 800% FAR, and cater to walkable urbanism.
Project Goal & Objectives
•
•
•
•
•
•
Add a high density, mixed-use property to downtown Ann Arbor in order to develop a walkable,
livable, and transit-oriented neighborhood
Provide combination of luxurious and affordable housing within one location
Provide city visitors an alternative and lively stay option through development of a full service
boutique hotel
Offer necessity-based retail tenants that cater to Ann Arbor ’s unmet needs, including full
service grocery and pharmacy, copy center, dry-cleaning service, and bike repair / transit
station
Develop a structure that is both aesthetically pleasing and complementary to surrounding
buildings
Ensure that proposal is financially and politically feasible
Key Stakeholders
•
•
•
•
•
City of Ann Arbor
Downtown Development Authority (DDA)
Main Street Businesses and Retailers
Old West Side Neighborhood Association
Local Residents and Businesses
Development Concept
A Street View Looking South on Ashley and a View from a Residential Balcony
CityVue will be, at maximum, a 14-story mixed-use building with the following:
• CityFlats Boutique Hotel – 108,000 SF of hotel space; emulate CityFlats boutique hotel in
Holland, Michigan
• Papa Joe’s Gourmet Market – 35,000 SF of grocery space and pharmacy; satisfies desires of
gourmet food users and professional family (ground floor)
• Other Retail – 5,000 SF of ground floor retail space (includes dry cleaners, bike repair shop,
and copy center)
• Loading Dock – 1,000 SF of loading area to serve hotel, grocery, and other retail tenants
• Office – 132,000 SF of Class A office space above ground floor
CityVue •
•
•
•
CityVue Condos – 56,000 total SF of condominiums, ranging from 600-900 SF per unit
CityVue Apartments – 128,000 total SF of leased residential living space, 15% affordable
Residential amenity space – 8,500 SF reserved for shared multipurpose room
Community space – rooftop garden, ground floor green space
Key Financials
•
•
•
Total cost, budgeted at $110 million, includes:
• Land - $7.5 million
• Site Improvements - $1.4 million
• Building Construction - $88.4 million
• Soft Costs - $1.8 million
• Equity - $27.5 million
Condominium sales are expected to generate $19.2 million
Annual NOI is estimated at $7.9 million by third year of operation
Timeline
BuildingUseBreakout
Use
Residential
Retail
Office
Hotel
FlexSpace
Total
%FAR
SquareFeet
194,000
40,000
107,000
108,000
25,000
474,000
871%
Construction to begin summer of 2011 and complete summer 2013
Building Massing Diagram & Ground Level
Floor Plan
CityVue BACKGROUND The City Downtown Ann Arbor
(Photo courtesy of annarbor.com)
As Michigan’s seventh largest city (pop. 115,000), Ann Arbor is unique because of its distinct
college atmosphere. With an enrollment of 37,000 at the University of Michigan, the student
population represents 32% of the city’s total residents. The university and its world-class health
system employ nearly 30,000 people, and are a vital and stable base of jobs that directly impacts
the downtown real estate market. The primary commercial areas include Kerrytown, Main Street, State Street, and South University. These areas contain a mix of 19 th and 20 th century buildings that are two- to four-stories tall. There
is also a mix of modern, taller structures that represent the city’s commercial and residential
diversity. The Site Located at 305 S. Ashley Street, the Gratzi / Kline lot is owned by the City of Ann Arbor and
operated by the DDA. It currently holds 134 parking spaces. It was nicknamed the Gratzi / Kline
lot because it served Kline’s Department Store until the mid 1990s, and today serves the nearby
Gratzi restaurant. Today, it is a full of development potential due to its close proximity to the
Main Street business district and the adjacent Old West Side residential district. It is 1.25 acres in size and assuming a 700% FAR, the site could accommodate nearly 380,000
square feet, and almost 500,000 square feet at 900% FAR. The parking that is currently provided
will require replacement, either through underground or coordinating with a nearby facility, to
meet the needs of the proposed development. Gratzi / Kline Parkling Lot
(Photo courtesy of googleearth.com)
CityVue MARKET ANALYSIS Economy Ann Arbor, like much of the Unites States, has experienced a decline in real estate values due
to the recent mortgage and financial market collapse. Because businesses are experiencing
tougher times, employment growth has slowed. As a result, vacancy rates in Ann Arbor have
slightly risen and rental rates are more negotiable. Despite the market downturn, commercial real estate continues to be a source of strength for
the local economy. Due to high construction costs, commercial real estate pricing stayed within
reasonable ranges and new development remained low. Further, Ann Arbor ’s office market actually improved. All classes showed a slight decrease in
vacancy rates, with Class A space decreasing over 1.5% to 13.67%. Retail and residential, on
the other hand, have reflected the down market. Cautious consumer spending has potential
retailers and lenders, in general, increasingly on guard concerning new opportunities. Overall, Ann Arbor remains an attractive city for long-term investment. It is one of a few cities in
Michigan that is experiencing business growth. This city’s commercial properties will not follow
in the path of the subprime market. Although Ann Arbor has experienced a slight downturn, the
Real Estate Research Corporation (RERC) expects growth in 2009, just at a much slower rate. The real estate and financial crisis have awakened investors to market realities. But, in Ann
Arbor, prices and returns will stabilize sooner than later, and commercial real estate will become
a preferred investment alternative once again. OfficeVacancy
Submarket
Downtown
North
East
CGMA
South
West
TotalAnnArbor
#Bldgs GrossSF VacantSF
69
1,606,935
199,885
36
2,436,270
290,049
35
619,614
72,933
8
472,349
15,778
70
3,204,688
547,029
14
328,750
15,912
232
8,668,606 1,141,586
Vac.%
12.44%
11.91%
11.77%
3.34%
17.07%
4.84%
13.17%
YearͲEnd2006 %Chg
15.67%
Ͳ3.23%
17.29%
Ͳ5.39%
12.46%
Ͳ0.69%
2.16%
1.18%
14.59%
2.48%
8.12%
Ͳ3.28%
14.48%
Ͳ1.31%
Source:SwisherCommercial2007YearͲendOffice/FlexVacancyReport
2008 Mid-Year Market Report, Metropolitan Detroit Market. Signature Associates
2008 Mid-Year Market Report, Metropolitan Detroit Market. Signature Associates
CityVue Demographics 5ͲMileRadiusKeyDemographics
Population&Income
2008Population
2008AdultPopulation
2008MedianAge
%PopulationChange2000Ͳ2008
2008MedianHHInc
2008AvgHHInc
153,194
129,792
32
+3.22%
$59,342
$88,267
Source:BluestoneRealtyAdvisors
UnemploymentRates
CivilianLaborForce,2000Ͳ2006
Washtenaw
Year
County
Michigan
2000
2001
2002
2003
2004
2005
2006
2007
2.4
2.9
3.6
3.1
4.3
4.1
4.6
4.8
3.3
4.7
6.2
6.7
6.9
7.1
6.9
7.2
U.S.
4.0
4.2
5.7
5.8
5.7
5.2
4.6
4.6
Since the proposed development is in the heart of downtown Ann Arbor, a demographic analysis
focusing only on the 5-mile radius from the city proved most appropriate for our analysis. Ann Arbor is a growing city. Since 2000, Ann Arbor ’s population in the 5-mile region has grown
by 3.2%, one of only two cities in Michigan to experience positive population growth. A total of
153,000 people live within this target region, reflecting 130,000 adults. The median age is 32
years-old. According to The American City Business Journals, Ann Arbor ranked as the smartest city in the
nation, with 69.2% of its residents possessing a bachelor ’s degree and beyond. Ann Arbor, and
Washtenaw County as a whole, has one of the best-educated labor forces available. There is a great disparity of income classes, however. Within this 5-mile radius, the median
household income is $59,000 while the average household income is $88,000. This great
difference in these two measures is due to the weight of the very wealthy households and
individuals. Despite this disparity, the Washtenaw County per capita income from 1990-2005
has increased dramatically, suggesting a relatively healthy economy and improved standard of
living across the county (see Per Capita Income Chart).
The market downturn has affected Ann Arbor ’s historically low unemployment rate. From Jan.
to Sept. 2008, this figure has increased from 4.7% to 6.5%. In particular, Ann Arbor ’s Natural
Resource and Manufacturing sectors have shown a -7.8% and -18.1% decrease in employment
over the past year alone. Real Estate Market Source:BureauofLaborStatistics,AnnArborMSA,www.bls.gov/lau/home.htm
ExhibitC
WashtenawCounty–PerCapitaIncome
Year
Michigan WashtenawCo.
1990
$18,992
$23,002
1995
$23,508
$28,942
2000
$29,502
$35,598
2005
$34,108
$40,134
U.S.
$19,447
$23,076
$29,845
$33,562
Ann Arbor ’s real estate market currently reflects a buyer ’s market. Residential and office
absorption rates are down from historical trends. Despite the recent market downturn, Ann
Arbor remains resilient. The past decade has shown a tremendous influx of people and business,
indicating that Ann Arbor ’s quality of life and business resources are attractive. The city’s
entrepreneurial spirit and educated population makeup continue to drive Ann Arbor ’s growth. From the period 1995-2005, residential development doubled while commercial development
grew by 28% (Property Development Chart, see next page).
Source:http://www.senate.michigan.gov/sfa/Economics/US&MichiganPerCapitaPersonalIncome.PDF
Bluestone Realty Advisors - Ashley Mews, Retail Pad, Ann Arbor
Ann Arbor Spark.
“Ann Arbor unemployment rate lowest in state at 4.7 percent,” The Ann Arbor News. Mary McDonough U.S. Bureau of Labor Statistics. http://www.bls.gov/eag/eag.mi_annarbor_msa.htm
CityVue While office and residential absorption has slowed considerably, many factors point to a market
rebound. Ann Arbor has aggressive business attraction incentives, and combined with the local
high-income and well-educated population, new companies such as Solartech are drawn to the
city. The recent arrival of Google speaks to the strength and feasibility of Ann Arbor ’s office
market rents. Once the adverse financial and lending markets correct themselves, it will not be
long before Ann Arbor ’s real estate market bounces back.
PropertyDevelopment(1995Ͳ2005)
(representedbypropertytaxbase)
ͲResidentialmakesupthemajorityofWashtenawCounty'sTaxBase
ͲTheCountyTotalStateEqualizedvaluefor2000was$10,951,329,363
PercentChange1995Ͳ2005
Commercial
128%
Agricultural
117%
Residential
200%
Source:WashtenawCountyEqualization(www.washtenaw.org)&AnnArborSpark(www.annarborspark.org)
Market Segment Analysis
Google Recently Located an Office In Ann
Arbor, Adding to Ann Arbor’s Existing
High-Tech Industry Base
Despite sub-optimal market conditions, downtown Ann Arbor is seeing aggressive pricing
strategies for new construction, residential and retail in particular. With the entry of Google
into Ann Arbor, new benchmarks for office and retail rents are being sought. Google leases their
new office space for $32.50 / SF, up from a historical range of $20-$24 range. The surrounding
retail, particularly the McKinley Town Center hopes to achieve $40 / SF, almost double its $17$22 historical range. Unfortunately, residential condo sales have slowed, but a few developers
are currently taking advantage of the stronger rental market by serving students and young
professionals demanding luxury-living.
CityVue 10
AnnArborOfficeAbsorption
MarketSize 3QNetAbsorption
OfficeͲTotal
4,758,035 135,023
OfficeͲCBD
1,237,427 10,616
YTDNetAbsorption
314,920
(81)
Source:DetroitSubmarket–3rdquarter2008,CBRichardEllis
AnnArborCondoAbsorption(7/2008Ͳ9/2008)
Condominiums
Sales
ForSale
Under$100,000
63
90
$100KͲ$199K
77
230
$200KͲ$299K
20
99
$300KͲ$399K
9
44
$400KͲ$499K
4
14
$500KͲ$599K
0
6
$600K+
3
19
Total
176
502
Mo.Supply
5.4
11.2
18.5
18.3
13.1
0
23.7
10.7
= NormalMarke:3Ͳ6MonthsSupply
= Buyer'sMarke :6Months+Supply
Source:KathyToth&Team,RealEstateOne
RecentMarketSupplyofNewConstruction(asofFall2008)
NearCompletionͲNewlyCompleted
Sq.Ft.
Class
AshleyTerrace
212,000
Mixed
LibertyLofts
150,000
Mixed
4ElevenLofts
110,000
Mixed
ZaragonPlace
99,982
Mixed
TheCourtyards
350,000
Residential
Total
921,982
Pipeline
LowerTownDevelopment
601Forest(formerlyUniversityPlaza)
42North
2HotelsatBriarwood
KingsleyLane
FingerleLumber
Total
Sq.Ft.
774,000
300,000
150,000
200,000
85,000
650,000
2,159,000
Class
Mixed
Mixed
Residential
Hotel
Mixed
Mixed
CityVue will target $34 / SF retail rates while lowering the rate for Papa Joe’s grocery to $25 / SF.
Office tenant Solartech will sign in at $30 / SF, a rent comparable to Google’s recent agreement.
CityVue’s residential will reflect a combination of for-sale condos and rentals, and even some
Recent Downtown Retail Development
CityVue 11
hybrid condo-rentals to help smooth hotel demand. Since rentals will be unfurnished, aggressive,
but manageable rents of $28 / SF will be sought. Residential condos will be sold at the prevalent
new construction market rate of $350 / SF.
Stakeholders While developing the plan for CityVue, consideration of all stakeholder views was integral. Engaging in a thoughtful and committed community process will ensure CityVue’s success. Local Businesses Existing Site
Rather than competing with existing downtown businesses, CityVue will provide a complementary
mix of retail and commercial outlets. Local businesses will receive the CityVue concept as the
development progresses, so as to communicate the projected influx of new residents in the
downtown area and, therefore, new patrons for their existing businesses.
The City of Ann Arbor Mr. Jeff Kahan, a planner with Ann Arbor ’s Planning Department, met with Urbanology to discuss
the proposed CityVue development. His recommendations included pursuing a minimum LEED
silver certification and incorporating at least 10% affordable housing. Not only are these items
important to the city, but also will garner higher density and increased FAR for the development
based on the new A2D2 zoning guidelines. Mr. Kahan recommended providing 2-levels of
underground parking and 1- to 2-levels of structured, above-grade parking. His sentiments echoed a need for conferencing and hotel facilities within Ann Arbor ’s downtown
district. He also believed that high-end residential housing would be an asset to the city at this
location. And, although office vacancy rates are high at the city’s outer limits, Mr. Kahan felt
that downtown could support additional office space, particularly for a unique tenant. Mr. Kahan thought the grocery store concept fulfilled an unmet need for the downtown. However,
he advised discussions with grocers familiar with urban development to ensure trucking, storage,
and staging requirements are met. Overall, the discussion with Mr. Kahan reflected that the
plan for the Gratzi / Kline lot would satisfy the needs for downtown Ann Arbor. Downtown Development Authority of Ann Arbor (DDA) Surrounding Stakeholders
At a meeting with Ms. Susan Pollay, Director for Ann Arbor ’s Downtown Development Authority
(DDA), she strongly encouraged dense development of the Gratzi / Kline lot due to its proximity
to Main Street. Many of the DDA’s recommendations have been incorporated into Urbanology’s
CityVue 12
CityVue concept. These include a strong residential component that will add significant density
to downtown, supportive retail, and innovative parking/transportation solutions. Ms. Pollay
encouraged exploration of a residential option that allows hybrid use between the residential
and hotel towers. For example, she proposed that a residential tenant could place their unit into
the hotel inventory if choosing to leave town for an extended period of time.
From a retail perspective, Ms. Pollay encouraged us to explore options such as a copy center,
dry-cleaners, and convenience store; all essential services that support the local business
and residential community. Her other recommendations included the use of Zipcar and the
incorporation of Class A office space to support the upcoming “green industry.” Ms. Pollay
did not support a DDA funded parking structure beneath the Gratzi / Kline lot due to the close
proximity of other structures. However, she was supportive of building a green boutique hotel
containing conference space.
Local Residents Locals maintain different perspectives regarding development. Some residents are antidevelopment and do not want to see change in their historic downtown. Essentially, they would
like to maintain the current look and feel of the community while still experiencing economic
growth. Conversely, some residents actively promote smart growth. These residents would
rather see density occur in the urban core, possibly changing the look and feel of downtown, while
preserving green space surrounding Ann Arbor. At the same time, many residents want the best
of both worlds -- they want density and smart growth, but don’t want to change the downtown. It’s important for our proposed development to consider these conflicting viewpoints. Old West Side Neighborhood Association An important neighbor exists directly west and southwest of our site, the Old West Side
Neighborhood Association. They welcome increased services that are within walking/biking
distance of their neighborhood, but also want a development that appropriately integrates with
their community from a design perspective.
Neighbors
Special consideration has been given to ensuring that surrounding buildings have breathingroom. For example, CityVue grants the adequate space between the development and the
buildings directly north. As the height of CityVue increases, the building steps back from adjacent
buildings to provide daylight. Surrounding Residential Stakeholders
CityVue 13
SITE ANALYSIS Current Site Physical Description
The target location is the Gratzi / Kline lot located on the Southeast corner of Ashley and Williams.
The Gratzi / Kline lot measures 124 feet by 442 feet, spanning approximately 54,808 square feet
or 1.25 acres. There are currently no significant structures on the site.
Community Context The site is situated in prime downtown Ann Arbor market space; directly one block east is Main
Street, the restaurant and retail social hub of the city. Key landmark and historical retailers are
located adjacent to the site, most notably Downtown Home & Garden and Fleetwood Diner.
The Gratzi / Kline lot also positions itself in a key gateway spot between the historic Old West
Side and Downtown Ann Arbor. With strategic use of the Keyhole lot, the proposed development
would serve as a bridge between the two neighborhoods, as well as a link to commuting traffic
once use of the rail system is implemented.
Current and Adjacent Uses The Gratzi / Kline lot is currently a parking lot, providing 136-spaces. The City of Ann Arbor
currently owns the site and collects the rent.
Storm Water & Soil Analysis
Based on our conversations with Susan Pollay & Jeff Kahan, this site has good storm water
drainage due to its elevation. Additionally, the site is free of contamination and pollution.
Zoning Pedestrian Traffic Flows
Traffic Flowing From New
Transit Site to City Vue
Traffic Flowing from
Downtown to CityVue via
Liberty
The Gratzi / Kline lot sits within the “D1” zoning district of Ann Arbor ’s newly proposed A2D2
zoning changes. The new zoning is currently in the approval process and will most likely be
approved prior to CityVue’s construction start in 2011. Under the D1 zoning regulations, the
development is granted 400% FAR by right and allowed to leverage 700% FAR if premiums such
as green building/LEED certification, and public / shared parking components are implemented. 900% FAR is allowable if affordable housing (80% AMI or below) is implemented. CityVue will
pursue the 900% FAR option since the site is located in a desirable downtown location, and both
density and affordable housing is desired by multiple stakeholders. As Ann Arbor begins to
densify, it’s important for this site to achieve its highest and best use. CityVue 14
MULTIMODAL ANALYSIS The Gratzi / Kline lot is centrally located among several convenient and accessible transit options,
offering linkages within downtown, the City of Ann Arbor, and surrounding communities. Mass Transit: Bus / Trolley / Commuter Rail
Mass Transit: Bus
(Photo courtesy of automobilemag.com)
Mass Transit: Trolley
(Photo courtesy of smartgrowthogden.org)
Mass Transit: Commuter Rail
(Photo courtesy of smartgrowthogden.org)
Access to Ann Arbor ’s bus system, the AATA, is ideal. Currently, the LINK -- a free downtown
circulatory bus -- stops directly in front of the Gratzi / Kline lot on Ashley and provides bus
services to all of Ann Arbor ’s downtown destinations. In addition, the location of the AATA’s new
terminal station is one block east, located in the main floor of the William parking structure. Ann Arbor is currently in the feasibility study phase and reviewing proposals for a trolley or bus
rapid transit (BRT) system that would start downtown and extend south on State St., northeast
along Plymouth Road, and west along Huron. The Gratzi / Kline lot’s downtown location will
provide easy accessibility to all three routes.
The Keyhole site just west of the Gratzi / Kline lot will provide convenient walking access to
the proposed downtown drop off location on First Street between Liberty and Williams for the
Wally commuter rail that should be operational by 2010. The Wally Commuter Rail will provide
an alternative commuter option for residents living in neighboring cities Brighton, Howell, and
Hamburg. Walking The Gratzi / Kline lot is conveniently located within Ann Arbor ’s CBD, making most downtown
destinations reachable via a ten-minute walk or less. Retail, transit, housing, cultural, and
institutional locations are all within a short walk. Biking Walking
(Photo courtesy of treehugger.com)
Due to the site’s downtown location, bike access is amplified. Ann Arbor ’s bike-friendly routes
allow easy access to the site and also allow access to other destinations from the site. The
proposed CItyVue development encourages bike use via on site bike parking, storage, shower
and changing rooms, and repair facilities. Parking Several convenient parking options are currently available within walking distance of CityVue. Biking
(Photo courtesy of flickr.com)
CityVue 15
CONCEPT & DESIGN Market Concept CityVue will leverage a mixed-use, pedestrian friendly concept to provide a gateway into
downtown Ann Arbor. By situating the building close to multiple transit modes and increasing
the density of the neighborhood, CityVue will excite the street. Additionally, the project will
enliven Ann Arbor as yet another building strives for LEED certification and incorporates unique
green features such as a green roof and solar panels. CityVue will be a 24-hour destination. The building will include a boutique hotel with conferencing
facilities, restaurants, and a fitness center, residential, necessity-based retail, and a market
with fresh, prepared food. Located just across Ashley from the keyhole site, CityVue not only
provides an applicable mix of uses today, but is also prepared for the future of mass transit and
high density in Ann Arbor. Building Architecture CityVue will encompass architectural styles common to Ann Arbor, but with a contemporary
edge. Building architectural components will include brick, glass, and steel. The building design
will appear as multiple structures, each with unique characteristics. The building will have
multiple facades along the street wall and, upon reaching 4-stories, will step back to fit in with
Ann Arbor ’s existing building density. One structure will makeup the 1.25 acre (55,000 square
feet) site. Reaching a 870% FAR, retail will comprise approximately 108,000 square feet for a
boutique hotel, 194,000 square feet for residential, 40,000 square feet for retail, 107,000 square
feet for office, and 25,000 for flex-space. The building will top out at 14-stories high. This
increase in density and leveraging of Ann Arbor ’s new zoning code is one of the most significant
features at CityVue. Additionally, this increase in density will also provide a significant tax base
for the City of Ann Arbor. Construction Process Design Concepts Incorporate
Architectural Details Such as Steel,
Glass,and Brick
The construction process for CityVue will be led by a local construction manager (CM) based
on suitability for the project construction. A CM, rather than general contractor, will be hired
because the CM will act as an agent and representative for Urbanology. The CM will manage
the entire construction process, reviewing subcontractor and supplier bids in conjunction
with Urbanology, coming to decision as team. A CM adds a level of flexibility to the project by
providing valuable insights regarding the constructability of the architecture and engineering as
well. CityVue 16
The construction contract will be Guaranteed Maximum Price (GMP), with a set price that
the project should not exceed. This GMP contract will provide the CM with a fee based on a
percentage of total construction cost. Value engineering will also be provided by the CM in an
effort to save costs where applicable without distorting the character of the project. The CM’s
fee will also include the cost for a LEED consultant if necessary. Construction Means & Methods The construction means and methods will include elements of sustainability, green building, and
energy efficiency throughout, as noted in the Sustainability and LEED section of this document. Construction for the entire building will include complete build-out, with the exception of the 3retail spaces (Iris Cleaners, FedEx Kinkos, and Pedal Motion), which will be completed as “whitebox.” White-box construction provides for finishing of the space through drywall, the retailers
will complete the interior build-out independently, managing their own construction. Project Timeline Based on a preliminary construction schedule, Urbanology expects the project to take
approximately 36-months. This schedule includes 24-months for construction with a ground
breaking in the summer of 2011 and building completion in the summer of 2013. Additional
time prior to breaking ground will include 12-months for design charettes, architecture, site plan
review, and engineering. This pre-construction process is especially important when building a
mixed-use, green project. Bringing all team members together prior to finalizing design elements
and building programming will facilitate the construction process - an essential element to the
project’s success. Multiple Heights and Steps in the Building
Facade Create Interest and Add Character
CityVue 17
PROGRAMMING Site Program
CityVue must leverage surrounding assets, add excitement to the Ashley corridor, and build on
“sense-of-place” features. The site layout will capture the pedestrian atmosphere currently
experienced at Ashley and Liberty, pulling it south along Ashley to CityVue’s site. The intent of
the development programming along Ashley is to create a vibrant and exciting pedestrian friendly
corridor. Pedestrian traffic coming from the Wally commuter rail up through the keyhole site will
help drive much of this foot traffic. Once commuters reach the site, they will either move south
and then east toward Main Street and the Blake Transit Center, or move north and then east
toward Main Street’s business district. CityVue’s site also provides convenient access to Ann
Arbor ’s recreational park system, including the nearby greenway. The combination of shopping,
restaurants, services, and recreational opportunities makes it an ideal Ann Arbor destination. Building Program Retail Papa Joe’s Downtown Many Ann Arbor residents have been yearning for a downtown grocery option. Papa Joe’s, a
successful grocer based in Birmingham, Michigan will open an urban location in 35,000 SF of
CityVue’s ground floor. A variety of upscale options will compliment an array of prepared food,
providing downtown residents, commuters, and workers a delicious and affordable dining option. Approximately 40% of the floor space will be dedicated to prepared foods, with the remainder
to groceries. Those visiting Papa Joe’s Downtown for on-the-go dining options can enjoy indoor
and outdoor dining at the quaint café incorporated on-site. Dedicated underground parking will
be provided for those wishing to drive. The addition of Papa Joe’s Downtown will help meet a
much wanted and unmet demand in downtown Ann Arbor. Its success will further be fueled by
Ann Arbor ’s continued focus on increasing residential density.
Papa Joe’s Downtown Market Incorporates
an On-Site Cafe and Gourmet Market
Papa Joe’s Downtown will also house an on-site pharmacy. The pharmacy will follow the CVS
model that is popular in urban centers on a smaller scale. Again, this retail outlet will provide
for an unmet need in downtown Ann Arbor.
FedEx Kinkos Copy Center The Main Street business area currently does not contain a copy center to support local
businesses, therefore the addition of an “urban-style” FedEx Kinkos will provide a much wanted
downtown service. The efficient size (2,000 SF) of Kinko’s new urban model allows CityVue to
incorporate a much needed basic service into Ann Arbor ’s Main Street business community. In
(Photo courtesy of Kerrytown Market)
CityVue 18
addition, it will provide necessary services for CityVue’s Class A office space. Iris Cleaners A successful Ann Arbor dry-cleaning operation will expand to join CityVue, providing residential
customers with a convenient and environmentally conscious dry-cleaning option. No dry-cleaner
currently exists in the Main Street downtown area, which presents an unmet market opportunity. Iris will provide commuters using the proposed Wally commuter rail line with convenient drycleaning access when commuting to and from work. Pedal Transit (Bike Transit Station and Repair) Once the north/south Wally commuter rail is running, many commuters will enjoy the convenience
of an adjacent bike transit and repair center. This will allow complete multi-modal transit access
where commuters can easily transfer from a commuter train to their stored bike. In addition,
commuters will be able to take advantage of the city’s newly implemented bike sharing program
located in front of the store, similar to programs found in Europe. Before or after work, they can
easily have their bike serviced as well. Office Solartech World Headquarters Leveraging the wave of new green technology, Urbanology will locate Solartech’s world
headquarters on the 2nd and 3rd floors of CityVue. Solartech chose Ann Arbor due to the
City’s emerging green energy and the availability of large, class-A floor plates in a downtown,
transit adjacent location. Their office will occupy 100,000 sq. ft and boasts the latest in green
technology. The office space has been configured for future adaptive reuse if needed. Hotel and Conference Center CityFlats Ann Arbor ’s downtown hotel and conference space is currently under-served. CityFlats plans to
expand their successful Holland, Michigan model to Ann Arbor, providing 12-unique hotel rooms
that are complemented by a sophisticated conferencing and banquet space. CityFlats Hotel can be described as perhaps, “the most inviting and unique destination in West
Michigan...” CityFlats, a boutique, LEED Silver hotel focuses on second tier cities, making Ann
Arbor the perfect destination for its next installment. “Developed by Charter House Innovations’
design team, [CityFlats] provides a refreshing respite from humdrum chain hotels [embodying]
the local charm and unique flavor of the downtown… experience.” CityVue Provides “Pedal Transit” Bike
Shop and Transit Center, Iris Cleaners,
Solartech Office nd CityFlats Hotel
CityFlats marketing materials
CityVue 19
CityFlats will emulate the Holland location to include three on-site dining establishments: • “CityVū Bistro is a distinctive rooftop dining experience featuring fresh and unique flatbread
creations. The restaurant’s contemporary yet casual atmosphere, full bar, and unique menu
make CityVū the ideal spot for breakfast, lunch or dinner. • CitySēn Lounge is a gathering place for friends and colleagues with a lively, winecentric
ambience. Guests can sample one of the 24 wines on tap or select from our menu of over
eighty wines. A full bar is also available. • CityBrü Coffee is a flavorful fuel stop that serves locally roasted, organic coffee and other
energizing fare. The fuel stop is open 24 hours day.” Additionally, CityFlats will incorporate a conference facility and 24-hour fitness center, CityYu
Fitness. The conference facility will meet an unmet demand in downtown Ann Arbor. The facility
will include three ballroom / conference centers, two small meeting rooms, and a theater room
with a stadium seating auditorium.
CityVue Residential CityVue will provide an unmet need in Ann Arbor ’s market: upscale apartment living. CityVue
will include studio, one-, two-, and three-bedroom living spaces that are open and spacious,
maximize light, provide expansive city views, and incorporate sophisticated materials sensitive
to our environment. A total of 66-for-sale and 120-for-rent units will provide the ideal home for
young professionals currently seeking to locate in Ann Arbor, but who are currently restricted by
a lack of adequate, contemporary housing. CityFlats Boutique Hotel Caters to
Visitors Seeking a Green Vacation Rich in
Amenities Such as Luxurious Rooms, Onsite Dining, and Conferencing Facilities
(Photos courtesy of cityflats.com)
Uniquely, CityVue will employ a hybrid management approach between the CityFlats Hotel and
CityVue residential. Residents wishing to live in CityVue on a part-time basis (for example, a
professor teaching only one semester and / or corporate-style housing) can choose to place their
residence into the CityFlats Hotel inventory. Likewise, all residents will have ala carte access to
CityFlat’s amenities for an additional fee including: • Fully furnished apartments
• Housekeeping
• Conference space
• Transportation services
• Concierge services
• Courier services
• Errand services
• Dining reservations and event planning
• Roof-top community center
• Fitness center
CityVue 20
Additionally, an affordable housing component will be incorporated into the development. 20% of CityVue's housing units will be available for residents in Ann Arbor earning 50% AMI. These units will allow Low Income Housing Tax Credits to serve as equity, but they will also help
establish economic diversity and a range of age groups within the development.
Further, both the market and below market rental units will be developed to LEED specifications
(see section on sustainability) and will provide the Ann Arbor community with a green, hip rental
opportunity.
Parking & ZipCar Underground Parking Facilities
(Photo courtesy of gramercyparkduluth.com)
Two levels of underground parking will be incorporated into the development. 130-spaces will
be devoted to Papa Joe’s, while 66-spaces will be available for rental for owned residences and
54-spaces for rental residences. Within the garage space, ample covered bicycle parking will be
provided according to LEED criteria. In addition, Zipcar will also occupy 10-spaces, providing residential and office customers, along
with residents from the nearby community, with yet another smart transportation option in
Ann Arbor. Many CityVue residents may choose to rely on Zipcar rather than renting a parking
space.
ZipCar Will Be Integral at CityVue
(Photo courtesy of zipcar.com)
10-Spaces Will be Reserved for ZipCar
(Photo courtesy of zipcar.com)
CityVue 21
ENVIRONMENTAL CONSIDERATIONS Sustainability & LEED CityVue will not only be architecturally significant, but also environmentally and structurally
sound. The mechanical systems, structure, and finishes behind its facade will utilize the most
advanced technology and green resources. By incorporating a multiditude of green building
practices, CityVue will achieve LEED Gold certification. Aside from prime location, CityVue will incorporate a variety of unique green elements that make
the building applicable for LEED certification. Following LEED’s New Construction Version 2.2
rating system, this checklist outlines a few of the most significant credits that the development
team of CityVue will strive for: • Site Selection • Development Density & Community Connectivity • Alternative Transportation Options • Heat Island Effect • Water Use Reduction • Water Efficient Landscaping • Optimized Energy Performance • Occupant Recycling • Construction Recycling • Building Materials The following sections review each of these credits in greater detail. Site Selection The mixed-use and green designation of CityVue is a perfect complement to downtown Ann
Arbor. The location is particularly important in green design. CityVue is walkable, provides for
alternative transportation, has plentiful resources nearby, and is built to a high density. Development Density & Community Connectivity Sun
thethe
Sun’s
RaysRays
to Keep
Sun Shades
ShadesReflect
Reflect
Sun’s
to
Residences
Cool; Solar
Panels
Wind
Keep
Residences
Cool;
Solarand
Panels
Turbines
Provide Alternative
Energy
and
Wind Turbines
Provide AlternaSources
tive Energy Sources
CityVue is within a ½ mile of a residential zone with a density of at least 10-units per acre, within
a ½ mile of at least ten basic services (according to the criteria prescribed by LEED NC V2.2), and
in walking range to these basic services. These services include multiple restaurants, libraries,
beauticians, shopping areas, financial institutions, and schools. CityVue 22
Alternative Transportation Options CityVue is located within ¼ mile of one or more stops for at least two public or campus bus routes
usable by building occupants. In addition to being located near multiple public transportation
routes, CityVue will incorporate a bicycle rack / storage system for building users along with a
shower and changing facilities for non-residential building occupants. Heat Island Effect The development team at CityVue took great strides in effort to reduce the project’s heat island
effect. Most significantly, a green roof and vegetated walls will be installed, which also benefits
storm water management. The green roof and walls aid in reflection, rather than absorption,
of the sun rays, thereby reducing the energy demands of the building. In addition to reduced
heat island effect and energy demands, the inclusion of a green roof provides many additional
benefits such as a natural habitat for birds, a usable space for building occupants, a storm water
collection and management system, and a reduction in runoff. Water Use Reduction Construction Waste Recycling
(Photo courtesy of anr.state.vt.us)
The development team will work in conjunction with Kohler to brand the plumbing fixtures on
the project. Kohler is well known for providing some of the most water-efficient and innovative
technologies in the marketplace. Some of these fixtures include low-flow toilets, motionsensor faucets, low-flow shower heads, dual-flush toilets, and waterless urinals. Ultimately, the
combining of these water-saving technologies will save extreme quantities of water at CityVue. Water Efficient Landscaping Based on the site’s urban context, minimal landscaping is necessary at CityVue. A landscaping
plan will reflect that only a few street trees will be planted. These trees only require watering
upon installation for establishment purposes. Therefore, the site does not include an irrigation
system saving 100% of the projected water demands outlined by the initial landscaping plan. Optimized Energy Performance Solar Panels
In effort to reduce the energy demands at CityVue, the project will incorporate Energy Star
appliances and mechanical equipment, a green roof (as detailed above), and best practices for
building materials. These materials will include high R-value insulation, brick, and concrete. Further, double-pane, low-e windows will be used. Additionally, green power will be purchased through DTE Energy’s (the local power company)
(Photo courtesy of ecogeek.com)
CityVue 23
Green Currents program. Green Currents assures its purchasers that 100% + of all funds are
invested into developing green power and utilizing renewable resources. Perhaps most importantly, CityVue will incorporate unique energy saving features such as solar
panels provided by Uni-Solar, a Michigan-based company. Uni-Solar provides a unique “peeland-stick” solar panel that promises to reduce grid-based energy consumption significantly. Not
only will this tactic save energy, it will also support a local, green manufacturer. Occupant Recycling CityVue will require all employees, office maintenance teams, residents, and visitors to recycle
paper, glass, plastic, metal, and cardboard. The community recycling guidelines will require the
separation of paper from glass, plastics, and metals, along with the separation and break down
of corrugated cardboard for pick up. Construction Recycling The intent at CityVue is to be environmentally responsible by diverting construction and
demolition debris from landfills and incinerators, redirecting recyclable recovered resources
back into the manufacturing process, and redirecting reusable materials to the appropriate site
when possible. On-site dumpsters will be allocated for metal, brick and block, trash, and drywall. By providing
on-site staff to manage the content of the dumpsters (via photography and personal viewing),
the general contractor will ensure that each dumpster is contaminant free. Upon approval of
each dumpster load, the sanitation company will perform a final review prior to delivering the
recyclable content to a recycling center. Building Materials A Green Roof Not Only Acts as a Thermal
Barrier to Keep CityVue Cool or Warm,
Depending on the Time of Year, But
Also Becomes an Amenity for Building
Occupants
Green building materials used at CityVue include steel framing, locally sourced drywall,
rapidly-renewable bamboo floors and veneers, woods finished with low-VOC paints and stains,
formaldehyde-free composite materials, tiles high in recycled content, and FSC (Forestry
Stewardship Council) certified sustainable wood products. By focusing on products that are
locally sourced and manufactured, high in recycled content, recyclable, rapidly renewable, low
in VOC content, and sustainably managed, CityVue will reduce its environmental impact. CityVue 24
LEED for New Construction - Project Checklist
Project:
Location:
Y ?
11 0
Y
1
1
1
1
1
1
Bamboo Flooring
(Photo courtesy of streisands.com)
1
1
1
1
1
4
1
1
1
1
10
Y
Y
Y
1
1
1
1
1
1
1
Green Roof
(Photo courtesy of djc.com)
1
1
William Place
Northwest corner of Ashley and William, Ann Arbor, Michigan
N
Description
3 Sustainable Sites
Prereq 1
Construction Activity Pollution Prevention
Credit 1
Site Selection
Credit 2
Development Density & Community Connectivity
1 Credit 3
Brownfield Redevelopment
Credit 4.1 Alternative Transportation, Public Transportation Access
Credit 4.2 Alternative Transportation, Bicycle Storage & Changing Rooms
Credit 4.3 Alternative Transportation, Low-Emitting & Fuel-Efficient Vehicles
Credit 4.4 Alternative Transportation, Parking Capacity
1 Credit 5.1 Site Development, Protect of Restore Habitat
1 Credit 5.2 Site Development, Maximize Open Space
Credit 6.1 Stormwater Design, Quantity Control
Credit 6.2 Stormwater Design, Quality Control
Credit 7.1 Heat Island Effect, Non-Roof
Credit 7.2 Heat Island Effect, Roof
Credit 8
Light Pollution Reduction
0 0 Water Efficiency
Credit 1.1 Water Efficient Landscaping, Reduce by 50%
Credit 1.2 Water Efficient Landscaping, No Potable Use or No Irrigation
Credit 2
Innovative Wastewater Technologies
Credit 3.1 Water Use Reduction, 20% Reduction
Credit 3.2 Water Use Reduction, 30% Reduction
3 4 Energy & Atmosphere
Prereq 1
Fundamental Commissioning of the Building Energy Systems
Prereq 2
Minimum Energy Performance
Prereq 3
Fundamental Refrigerant Management
Credit 1
Optimize Energy Performance
10.5% New Buildings or 3.5% Existing Building Renovations
14% New Buildings or 7% Existing Building Renovations
1
1
1
Credit 2
On-Site Renewable Energy
2.5% Renewable Energy
1
14 Pts.
Req'd.
1
1
1
1
1
1
1
1
1
1
1
1
1
1
5 Pts.
1
1
1
1
1
17 Pts.
Req'd.
Req'd.
req'd.
1 to 10
1
2
3
4
5
6
7
8
9
10
1 to 3
1
2
3
CityVue 25
Y
?
1
1
1
8
Y
0
1
1
1
1
1
1
10
Y
Y
1
1
1
1
1
1
1
1
1
1
CityVue Incorporates a Unique Storm
Water Management and Retention System
to Utilize Storm Water and Prevent Runoff
5
1
1
1
1
1
48
1
5
1
1
1
1
1
Being “Green” Means Providing
Alternative Transportation Options, Like
this Bus Stop at CityVue
N
1
1
5
0
1
1
1
1
1
0
0
8
12
Description
Credit 3
Enhanced Commissioning
Credit 4
Enhanced Refrigerant Management
Credit 5
Measurement & Verification
Credit 6
Green Power
Materials & Resources
Prereq 1
Storage & Collection of Recyclables
Credit 1.1 Building Reuse, Maintain 75% of Existing Walls, Floors & Roof
Credit 1.2 Building Reuse, Maintain 100% of Existing Walls, Floors & Roof
Credit 1.3 Building Reuse, Maintain 50% of Interior Non-Structural Elements
Credit 2.1 Construction Waste Management, Divert 50% from Disposal
Credit 2.2 Construction Waste Management, Divert 75% from Disposal
Credit 3.1 Materials Reuse, 5%
Credit 3.2 Materials Reuse,10%
Credit 4.1 Recycled Content, 10% (post-consumer + ½ pre-consumer)
Credit 4.2 Recycled Content, 20% (post-consumer + ½ pre-consumer)
Credit 5.1 Regional Materials, 10% Extracted, Processed & Manufactured Regionally
Credit 5.2 Regional Materials, 20% Extracted, Processed & Manufactured Regionally
Credit 6
Rapidly Renewable Materials
Credit 7
Certified Wood
Indoor Environmental Quality
Prereq 1
Minimum IAQ Performance
Prereq 2
Environmental Tobacco Smoke (ETS) Control
Credit 1
Outdoor Air Delivery Monitoring
Credit 2
Increased Ventilation
Credit 3.1 Construction IAQ Management Plan, During Construction
Credit 3.2 Construction IAQ Management Plan, Before Occupancy
Credit 4.1 Low-Emitting Materials, Adhesives & Sealants
Credit 4.2 Low-Emitting Materials, Paints & Coatings
Credit 4.3 Low-Emitting Materials, Carpet Systems
Credit 4.4 Low-Emitting Materials, Composite Wood & Agrifiber Products
Credit 5
Indoor Chemical & Pollutant Source Control
Credit 6.1 Controllability of Systems, Lighting
Credit 6.2 Controllability of Systems, Thermal Comfort
Credit 7.1 Thermal Comfort, Design
Credit 7.2 Thermal Comfort, Verification
Credit 8.1 Daylight & Views, Daylight 75% of Spaces
Credit 8.2 Daylight & Views, Views for 90% of Spaces
Innovation & Design Process
Credit 1.1 Innovation in Design: Education & Outreach
Credit 1.4 Innovation in Design: Local Solar Power
Credit 1.4 Innovation in Design: Green Cleaning
Credit 1.4 Innovation in Design: Green Lease
Credit 2
LEED® Accredited Professional
Project Totals (pre-certification estimates)
Certified: 26-32 points, Silver: 33-38 points, Gold: 39-51 points, Platinum: 52-69 points
1
1
1
1
13 Pts.
Req'd.
1
1
1
1
1
1
1
1
1
1
1
1
1
15 Pts.
Req'd.
Req'd.
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
5 Pts.
1
1
1
1
1
69 Pts.
CityVue 26
FINANCIALS Hotel
Financial Goals
In order to provide a conservative estimate when opening a new hotel,
we held the first year vacancy rate to 40%. In years 2 and beyond, the
vacancy rate is reduced to 28%. This is in line with average market rates.
In order to make CityVue’s boutique hotel, CityFlats, more attractive, we
have added 25,000 SF of flex conference room space. This will provide
a marketing advantage by attracting out of town recruiters and other
businesses that would like to conduct off-campus interviews, workshops,
and other educational sessions.
The following information discusses financial goals, sources of debt and
equity, and central financial components to the project.
•
•
•
•
Generate positive cash flows to return to investors
Provide affordable housing, per A2D2 900% FAR
premium
Serve as a case study to attract and retain high quality
tenants without sacrificing profits
Achieve maximum FAR allowed by A2D2 zoning
framework; currenlty achieves 860% FAR
Urbanology realizes that the best projects are financed, designed, and
managed by local institutions since they have an intimate understanding
of community dynamics. Hence, Urbanology will select local investors,
contractors and architects. This is one instrumental step in reducing the
financial risk involved with building a massive mixed-use development.
Affordable Rental Housing
In order to build up to 860% FAR, CityVue will lease 15%, or 18 of its
120 residential housing units, as affordable for 60% AMI. In order to
maximize FAR to more than 700%, we have made these units affordable
to families earning 60% AMI. The maximum rent of affordable housing
is listed below:
MaximumAffordableHousingRents
Rents
Studio 1BR 2BR
3BR
High
$669 $750 $913 $1,149
Low
$669 $750 $913 $1,071
4BR
$1,182
$1,182
Source:WashtenawCountyWebsite,www.ewashtenaw.org
CityVue’s affordable apartments are priced at $750 per month for 700
SF and $913 per month for 900 SF. The standard apartments are priced
between $1,300 and $2,100, with slight variances for floor elevation
and square footage.
Total Project Costs
FinancingSourcesandUses
SourceofCapital
CapitalAmt
Equity
$27,496,000
ConstructionLoan
$82,489,000
TotalCapital
$109,985,000
CapitalUses
Land
Improvements
Construction
SoftCosts
Sales/Financing
TotalUses
CapitalSpending
$7,449,000
$1,441,000
$88,380,000
$1,749,000
$10,967,000
$109,986,000
CityVue will be built in one phase , taking approximately two years to
complete. The construction loan of $85 million will be at an annual rate
of 7.25% and amortized over 25 years.
Equity Financing
The project was designed to incorporate private equity and debt
financing. Total cost is nearly $121 million. Assuming a 70% LTV, CityVue
will provide $36 million of total equity from the following sources:
EquityFinancing
SourceofEquity
EnergyTaxCredits
CondoSales
DeveloperFees
LeaseCommission
Cash
Total
%ofEquity CapitalAmount
3.5%
$3,850,000
$19,177,000
3.0%
$3,300,000
$ 750,000
$ 419,000
$27,496,000
CityVue 27
Residential Sales Summary
Financial and Sensitivity Analysis
CityVue will pre-sell 66-condominiums and the same number of
underground parking spaces. Providing condos in addition to leased
residential has two intended outcomes: to attract more permanent
tenants (i.e. empty nesters and working professionals), and to provide a
key source of equity financing.
CityVue financials are contingent on several factors, including the
following:
• Land acquisition price
• Interest rates
• Market rate for residential units (rentals and condos)
• Hotel occupancy rate
• Retail rental rates
Residential Condo Revenues
Price /
Floor
SF
SF
Unit Price
Price /
Parking Spot
# of
Units
Gross Sales ($)
Total Sq
Ft
Sixth
600
700
900
$
$
$
375
344
306
$
$
$
225,000
240,800
275,400
$
$
$
35,000
35,000
35,000
Subtotal
5
3
3
11
$
$
$
$
1,300,000
827,400
931,200
3,058,600
3,000
2,100
2,700
7,800
Seventh
600
700
900
$
$
$
390
360
321
$
$
$
230,000
245,800
280,400
$
$
$
35,000
35,000
35,000
Subtotal
5
3
3
11
$
$
$
$
1,325,000
842,400
946,200
3,113,600
3,000
2,100
2,700
7,800
Eighth
600
700
900
$
$
$
405
375
336
$
$
$
235,000
250,800
285,400
$
$
$
35,000
35,000
35,000
Subtotal
5
3
3
11
$
$
$
$
1,350,000
857,400
961,200
3,168,600
3,000
2,100
2,700
7,800
Ninth
600
700
900
$
$
$
420
400
351
$
$
$
240,000
255,800
290,400
$
$
$
35,000
35,000
35,000
Subtotal
5
3
3
11
$
$
$
$
1,375,000
872,400
976,200
3,223,600
3,000
2,100
2,700
7,800
Tenth
600
700
900
$
$
$
435
415
366
$
$
$
245,000
260,800
295,400
$
$
$
35,000
35,000
35,000
Subtotal
5
3
3
11
$
$
$
$
1,400,000
887,400
991,200
3,278,600
3,000
2,100
2,700
7,800
600
700
900
$
$
$
450
430
381
$
$
$
250,000
265,800
300,400
$
$
$
35,000
35,000
35,000
Subtotal
5
3
3
11
$
$
$
$
1,425,000
902,400
1,006,200
3,333,600
3,000
2,100
2,700
7,800
TOTAL
66
$
19,176,600
Eleventh
46,800
SensitivityAnalysis
(after3years)
NPV
IRR
Pessimistic
Target
Optimistic
Ͳ$524,000 $9,596,000 $22,477,000
9.3%
21.8%
34.7%
A sensitivity analysis was performed related to CityVue’s total cost.
Revenue figures, however, were dictated by average vacancy and rental
rates.
Hard and Soft Costs
Construction costs were derived from a combination of past projects, in
class presentations, and the RS Means Square Foot Guide. Costs have
been adjusted higher in order to account for LEED Grade materials,
local market economics, and higher labor costs (see charts on following
page).
CityVue Revenue Summary
RevenueGeneratingSpace
ForSaleResidential
ForLeaseResidential
Grocery
BikeTransitandRepair
CopyCenter
DryCleaners
Hotel(includesguestrooms&conferencecenter)
OfficeSpace
NonRevenueSpace(amenityspace,loadingdock)
TOTALS
AvgSF/Unit #ofUnits TotalSF
848
66
56,000
736
174
128,000
35,000
1
35,000
2,000
1
2,000
2,000
1
2,000
1,000
1
1,000
133,000
1
108,000
107,000
1
132,000
10,000
474,000
Rev
Generating
SF
46,800
107,000
35,000
2,000
2,000
1,000
100,500
126,650
Avg
Revenue/
SF
$410
$ 33
$ 30
$ 35
$ 35
$ 35
$234
$ 30
420,950
CityVue 28
SMARTNAPKINͲCityVueDevelopment
LANDCOSTASSUMPTIONS
Pessimistic
LandCost
$7,821,450
$54,450
LandAreainsf
LandAreainAcres
1.25
CONSTRUCTION(HARD)COSTASSUMPTIONS
Demolition
$220,000
Clearing
$44,000
Utilities
$302,500
Landscaping
$220,000
TotalSitework
$786,500
Paving(%oflotcover)
$11,979
Buildingcost/sfͲunits
$171
TotalcostͲunits
$80,817,000
Undergroundparkingsf(cars)
85,800
$110
Buildingcost/sfͲundergroundparking
$9,438,000
TotalcostͲundergroundparking
Commonarea(%oftotal)
52,140
$165
Buildingcost/sfͲcommonarea
TotalcostͲcommonarea
$8,603,100
TotalBuildingCosts
$98,858,100
SOFTCOSTASSUMPTIONS
$8,250
Survey
SoilInvestigation
$55,000
SiteEngineering
$55,000
Architectural(%ofConst)
$1,166,616
Environmental
$27,500
Legal
$165,000
Insurance
$55,000
Proptaxes/year(milrate)
$61,454
Permits/fees
$330,000
TotalSoftCosts
$1,923,820
TOTALCOSTS
$108,603,000
Revenues/Income
Realistic
$7,449,000
$54,450
1.25
Optimistic
$7,076,550
$54,450
1.25
$200,000
$40,000
$275,000
$200,000
$715,000
$10,890
$155
$73,470,000
78,000
$100
$7,800,000
47,400
$150
$7,110,000
$88,380,000
$180,000
$36,000
$247,500
$180,000
$643,500
$9,801
$140
$66,123,000
70,200
$90
$6,318,000
42,660
$135
$5,759,100
$78,200,100
$7,500
$50,000
$50,000
$1,060,560
$25,000
$150,000
$50,000
$55,868
$300,000
$1,748,928
$97,578,000
$6,750
$45,000
$45,000
$954,504
$22,500
$135,000
$45,000
$50,281
$270,000
$1,574,035
$86,851,000
OperatingRevenues
RetailandOffice
Residential
Hotel
TotalIncome(netofvacancies)
OperatingExpenses
RetailandOffice
Residential
Hotel
TotalOp.Exp.
NetOperatingIncome
InterestonLoan
Dep.Exp.ͲBuilding(Yrs)
Dep.Exp.ͲImprovements(Yrs)
NetIncomeBeforeTaxes
IncomeTaxRate
NetIncomeAfterTaxes
CashFlowFromOperations
NetIncomeAfterTaxes
Dep.Exp.
TotalCFFromOps.
InterestonLoan
TotalCashAvailableforLoanServicing
DebtService
RemainingAfterTaxCFFromOps
PlusPrincipalReduction
TotalReturn
DebtServicingRatio
Actual
Monthly
$396,667
$211,000
$513,167
$1,120,833
$67,508
$109,667
$369,495
$546,669
$574,164
$481,000
$189,000
$3,000
Ͳ$98,836
Ͳ$34,593
Ͳ$64,000
Projected
Year1
Year2
Year3
$4,760,000 $4,903,000 $5,050,000
$2,532,000 $2,609,000 $2,687,000
$6,158,000 $8,246,000 $8,493,000
$13,450,000 $15,758,000 $16,230,000
$810,093
$1,316,000
$4,433,940
$6,560,033
$6,889,967
$5,748,000
$2,268,000
$36,000
Ͳ$1,162,033
Ͳ$406,712
Ͳ$755,000
$834,315
$1,356,000
$5,937,046
$8,127,361
$7,630,639
$5,687,000
$2,268,000
$36,000
Ͳ$360,361
Ͳ$126,126
Ͳ$234,000
$859,261
$1,398,000
$6,115,157
$8,372,418
$7,857,582
$5,622,000
$2,268,000
$36,000
Ͳ$68,418
Ͳ$23,946
Ͳ$44,000
Ͳ$64,000
Ͳ$755,000
Ͳ$234,000
Ͳ$44,000
$192,000
$2,304,000 $2,304,000 $2,304,000
$128,000
$1,549,000 $2,070,000 $2,260,000
$481,000
$5,748,000 $5,687,000 $5,622,000
$609,000
$7,297,000 $7,757,000 $7,882,000
$549,000
$6,588,000 $6,588,000 $6,588,000
$60,000
$709,000 $1,169,000 $1,294,000
$70,000
$838,000
$899,000
$964,000
$130,000
$1,547,000 $2,068,000 $2,258,000
110.9%
110.8%
117.7%
119.6%
Year0
Year1
Year2
Year3
NetCFsFromInvestmentͲ1YrExit
Ͳ$27,496,459 $10,923,848
NetCFsFromInvestmentͲ3YrExit
Ͳ$27,496,459
$709,000
$1,169,000 $47,226,938
NPVͲafter3Years
$9,596,000
IRRͲafter3Years
21.8%
Conclusion
By leveraging local partners, CityVue will provide generous returns with positive NPV and IRR values after just three years. It will become a
premier living, shopping, and working destination. Urbanology LLC is confident that the financial returns are appropriate with the given level of
development risk.
CityVue 29
IMPLEMENTATION PLAN Phase 1 • Work with existing community partners including the DDA and Old Westside Neighborhood
Association • Develop an appropriate design for CityVue that meets the needs of the community Phase 2 • Establish a new community partner, a homeowner and business association for the building • The new association will: • Manage CityVue including future building and infrastructure improvements • Ensure sustainability guidelines are met, engage in continuing affordable housing
practices • Work with existing community partners • More specifically, in terms of sustainability, the association will: • Guarantee compliance with green cleaning and green landscaping / green roof • Follow through with education and outreach initiatives as identified by LEED, including
building tours and green marketing materials Detail Views of CityVue
CityVue 30
APPENDIX A: URBANOLOGY PROFILES & RESUMES Associate Profiles for CityVue
Joshua Brugeman, Architectural & Program Director Deirdre Groves, Sustainability & Graphic Design Director John Kang, Market Research & Site Analysis Director Sandip Mody, Financial & Conceptual Director Brugeman | Groves | Kang | Mody
CityVue 31
JOSHUA BRUGEMAN |1537 McIntyre Ann Arbor, MI 48105 • 248.705.8879 • [email protected]
Education
The University of Michigan
Taubman College of Architecture + Urban Planning, Ann Arbor, MI
Master of Urban Planning, 2009 Candidate | Real Estate Development, 2009 Candidate
• President of the Michigan Real Estate Club
• Team leader for 2008 Urban Land Institute/Hines Design Competition
• Coursework includes RE Finance, RE and Land Use Law, Green Development, RE Development, LowIncome Housing, RE Strategy, Fiscal Planning + Management, Economic Development
College of Literature, Science and Arts, Ann Arbor, MI
Bachelor of General Studies, April 2002
• Concentrations in Marketing, Communications, and English
• Honors: Mortar Board National Honor Society
Experience
S.B. Friedman & Company – Real Estate Development + Consulting
Summer Associate • Summer 2008 • Chicago, IL
• Researched redevelopment opportunities of an abandoned college campus resulting in profitable
solutions for the client including live/work lofts and continuing care facilities
• Conducted extensive waterfront redevelopment research that highlighted realistic development
timeframes and available institutional and public incentives for East Chicago
• Performed market analysis and deal reviews for both private and public sectors
• Carried out TIF eligibility fieldwork in Chicago’s historic Pullman neighborhood
Residential Home Renovation
Developer • 2004 – 2006 • Ann Arbor and Royal Oak, MI
• Identified, purchased, renovated and sold a neglected single-family home and a foreclosed condo
which provided real-world real estate development experience
• Renovated property (one with partner) leading to value increases ranging from 10-25%
• Performed financial feasibility, market analysis, and construction leading to successful completion
Perich Advertising & Design
Senior Account Executive • January 2006 – September 2007 • Ann Arbor, MI
• Responsible for GMC and Chevy medium-duty truck accounts
• Supervised client budget, campaign strategy development, and execution of projects, leading to
positive client relations and account growth
• Led cross-functional teams (creative, client, legal, vendors, media) to successfully execute projects
• Initiated and sold extensive interactive/online project to client that fostered organic agency growth
CityVue 32
DEIRDRE GROVES | 312 N. Wixom Rd., Wixom, MI 48393 • 248.730.4213 • [email protected]
Education
Taubman College of Architecture + Urban Planning, Ann Arbor, MI
Master of Urban Planning, 2009 Candidate | Real Estate Development, 2009 Candidate
• Concentration in Land Use & Environmental Planning, Special Focus on Sustainability
• Member, University of Michigan Real Estate Club, Urban Land Institute, American Planning
Association
• Final Four Competitor & Team Leader, Hines/Urban Land Institute Urban Design Competition 2008
Michigan State University
School of Planning, Design and Construction, East Lansing, MI
Bachelors of Science, Construction Management, December 2005
• Dean’s List and Honor Roll, 12 time scholarship winner
• Study Abroad Participant, Construction Management in Italy
• Elected Secretary and Vice President of Student Builder ’s and Contractors Association
• Member, Sigma Lambda Chi Construction Honor ’s Society
Experience
Mosher, Dolan, Cataldo & Kelly, Inc.
Green Specialist + Special Projects Coordinator • 2006-present • Birmingham, MI
• Performed market research of environmentally and energy efficient systems for application in new
development
• Proposed integration of the systems to designers, management, developers, and owners for
incorporation into new mixed-use $9.25 million development and future projects
• Led green process including development of project tracking database, managing team, and ensuring
LEED compliance and certification
• Prepared financial documents and contracts, developed schedules identifying rough-end specifications,
and integrated design specifications with clients and designers for multi-million dollar custom single
family residences in order to procure new clientele, and provide fiscal documentation and value
engineering strategies for current clientele
• Coordinated photographers, writers, and designers to develop custom website and create marketing
materials
• Directed collaborative efforts of 75-entrepreneurs including project management and client relations
DTN Management Company
Leasing Agent • 2003 - 2005 • East Lansing, MI
• Assembled and authorized lease signings, showed apartments, prepared marketing documents, and
opened and closed a leasing office that handled multiple communities ranging in density, population
and economic structure
• Engaged in resident relations in order to encourage retention of current and new residents
• Trained new-hires to understand office systems, client relations, and leasing strategies
CityVue 33
JOHN KANG | 1360 Astor Avenue #1813, Ann Arbor, MI 48104 • 646.369.6043 • [email protected]
Education
Stephen M. Ross School of Business, Ann Arbor, MI
Master of Business Administration, 2010 Candidate | Real Estate Development, 2010 Candidate
• VP Chicago Forums, Real Estate Club
Massachusetts Institute of Technology
Cambridge, MA
Bachelors of Science in Economics, May 1999
• Concentration East Asian Studies
Experience
Nexops, Inc.
Project Manager • January 2007 - March 2008 • New York, NY
• Responsible for business fulfillment of technical development. Primary liaison between various clients
and overseas developers.
• In charge of training and mentoring new project managers.
1st 2nd Mortgage Company
Residential Mortgage Consultant / Wholesale Account Executive / Team Leader • August 2005 - March
2008 • Cresskill, NJ
• Operated a retail mortgage branch, recruited a team of nine junior loan officers, and trained on
developing strategic partnerships and loan fulfillment
• Closed over $15 million in loan volume
• Organized and implemented client retention efforts for the company’s 7,000+ servicing portfolio using
telephone and mail marketing
• Solicited and signed up five mortgage brokerage companies as wholesale correspondents
• Created the company’s website and responsible for lead generation, site maintenance, and business
fulfillment
Commercial Lending Liason
• Responsible for compliance of all commercial loan submissions through the company
FactSet Research Systems
Vision Consultant • February 2001 - July 2005 • New York, NY
Product developer and consultant for the Vision Database technology
• A.E. for three clients: a commercial bank, a multi-billion dollar hedge fund, and the asset management
group of a blue chip company
Leadership and Project Management
• Spear-headed the creation of a publishing product, expediting report delivery by a factor of 20 and
improving portfolio analytic data presentation. 2004 Annual profit of ~$600,000.
• Created the group’s first front-end Excel and web-based reporting tools (“Portfolio Portal”)
• Co-developed the first internal system performance-tracking protocols
CityVue 34
SANDIP MODY | 1108 Prospect St • Ann Arbor, MI 48104 • 414.248.4391 • [email protected]
Education
Stephen M. Ross School of Business, Ann Arbor, MI
Master of Business Administration, 2009 Candidate
• Emphases: Marketing and Strategy
• Vice President of Clubs and Organizations, Student Government Association
• Elected section leader: Global Citizenship Committee
• Active Member of Marketing, Retail, and Consulting clubs
• Finalist, Miller Lite Case Competition
University of Wisconsin
School of Business, Madison, WI
Bachelor of Business Administration, December 2002
• Double major in Finance and Information Systems
• Elected VP of AIESEC, world’s largest student exchange organization
Experience
Deloitte Consulting, LLP
Senior Consultant • Summer 2008 • Cleveland, OH
• Created new organizational design for Fortune 50 Financial Services client suffering from staff shortage
and skill-set mismatch; recommendations led to improved workplace productivity and employee
morale with minimal cost impact
• Built new internal training programs and external client presentations for Deloitte’s Financial Services
Practice, enabling senior leaderhsip to improve future sales efforts
Aravind Eye Hospital
Student Consultant • M.A.P. 2008 • Madurai, India
• Prepared strategic plan for expansion into new geographies, through partnerships with regional
organizations
Lands’ End, Inc.
Marketing Analyst - Customer Acquisition Group • 2005 - 2007 • Dodgeville, WI
• Led merchandising, inventory, and gift-card teams to help launch Lands’ End Baby business through
gift card promotion within Kids Holiday catalog, enabling development of the “New Parents” segment
and creating an ongoing seasonal program that contributed $1 million in incremental sales
• Persuaded management to circulate Lands’ End for School catalogs to all Kids merchandise buyers,
helping double Uniform customer file within two years
• Spearheaded efforts to institute page appeal reporting that illustrated how merchandise placement by
catalog page impacted sales; results convinced creative team to visually reposition category drivers
CityVue 35

A Plan for Ann Arbor`s Gratzi|Kline Parking Lot

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