Rexville Towne Center

Market, Impact and Financial Study
for a Shopping Center in Bayamón
SHOPPING CENTER PROFILE
APPENDIX I:
INVENTORY OF SHOPPING CENTERS IN THE MARKET AREA
Name
Rexville Towne Center
Municipality
Bayamón
ETI ID
45
Size (sq. ft.)
450,000
Category Size
Mall Or Strip
Regional
BB, lineal, freestanding
Road
Location Observations
PR-167 / PR-199
Commercial strip in Ave. Comerío
Address
Anchor Tenants
PR-167 and Ave. Las Cumbres
Amigo, Kmart, OfficeMax, Home Depot
Freestanding
Government Offices
5+
0
Year Construction
Remodeling Year
2002
Urban or Rural
Observations
Urban
Existence of igneous rock
Administrator
RD Management Corporation
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 49
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
Rexville Plaza
Municipality
Bayamón
ETI ID
50
Size (sq. ft.)
155,400
Category Size
Mall Or Strip
Community
Lineal
Road
Location Observations
PR-167 / PR-199
Commercial strip in Ave. Comerío
Address
Anchor Tenants
0
Capri, Pueblo Supermarket
Freestanding
Government Offices
2
0
Year Construction
Remodeling Year
1975
1990
Urban or Rural
Observations
Suburb
Administrator
Developers Diversified Realty Corp (DDR)
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 50
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
Plaza Río Hondo
Municipality
ETI ID
Bayamón
Size (sq. ft.)
Category Size
500,920
Regional
Mall Or Strip
Road
Mall, lineal, freestanding
PR-167 / PR-22
Location Observations
Address
Commercial strip in Ave. Comerío
Anchor Tenants
Freestanding
Marshalls, Kmart, CompUsa (2006)
5+
Government Offices
Year Construction
0
1982
Remodeling Year
Urban or Rural
1990
Urban
Observations
Administrator
Developers Diversified Realty Corp (DDR)
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
34
Page 51
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
FINAL REPORT
Name
Sam's Rexville
Municipality
Bayamón
ETI ID
42
Size (sq. ft.)
100,000
Category Size
Mall Or Strip
Community
BB, freestanding
Road
Location Observations
PR-830 / PR-167
Residential zone
Address
Anchor Tenants
Wal-Mart Sam”s, Walgreens
Freestanding
Government Offices
2
0
Year Construction
Remodeling Year
2001
Urban or Rural
Observations
Suburb
Close to Interamerican University at Bayamón
Administrator
Estudios Técnicos, Inc.
JUNE 5, 2006
Page 52
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
Plaza del Sol
Municipality
ETI ID
Bayamón
Size (sq. ft.)
Category Size
650,000
Regional
Mall Or Strip
Road
Mall, freestanding
PR- 29 / PR-167
Location Observations
Address
Commercial strip in Ave. Comerio
725 West Main Ave.
Anchor Tenants
Freestanding
Wal-Mart, Home Depot, Bed Bath and Beyond
4
Government Offices
Year Construction
0
1998
Remodeling Year
Urban or Rural
2003
Suburb
Observations
Administrator
Existence of karstic rock
Developers Diversified Realty Corp (DDR)
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
33
Page 53
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
Santa Rosa Mall
Municipality
ETI ID
Bayamón
Size (sq. ft.)
Category Size
474,370
Regional
Mall Or Strip
Road
Mall
PR-2/ PR-855 /Ave. Santa Rosa
Location Observations
Address
Commercial strip in PR-2
Santa Rosa Ward
Anchor Tenants
Freestanding
Sears, Grande Supermarket
2
Government Offices
Year Construction
0
1966
Remodeling Year
Urban or Rural
1990
Suburb
Observations
Administrator
Close to a Tren Urbano station
Commercial Centers Management (CCM)
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
46
Page 54
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
El Cantón Mall
Municipality
Bayamón
ETI ID
44
Size (sq. ft.)
275,294
Category Size
Mall Or Strip
Super Community
Mall
Road
Location Observations
PR-167 / PR-890
Bayamón’s Traditional Urban Center
Address
Anchor Tenants
Degetau Street
Capri, Santander Bank, RentACenter
Freestanding
Government Offices
0
3
Year Construction
Remodeling Year
1980
2000
Urban or Rural
Observations
Urban
Urban center rehabilitation
Administrator
El Cantón Mall Inc.
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 55
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
Drive In Plaza
Municipality
ETI ID
Bayamón
Size (sq. ft.)
Category Size
180,000
Community
Mall Or Strip
Road
Lineal, freestanding
PR-2 / PR-864
Location Observations
Address
Commercial strip in PR-2
PR-2 and PR-864
Anchor Tenants
Freestanding
Pueblo Supermarket, FirstBank
4
Government Offices
Year Construction
0
1990
Remodeling Year
Urban or Rural
0
Suburb
Observations
Administrator
In the 80s it was the old drive-in theater
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
48
Page 56
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
FINAL REPORT
Name
Plaza Aquarium Mall
Municipality
Toa Alta
ETI ID
275
Size (sq. ft.)
164,628
Category Size
Community
Mall Or Strip
Mall
Road
PR-165 / PR-159
Location Observations
Residential area
Address
PR-165, Km. 4.7
Anchor Tenants
Amigo Supermarket, El Amal, National Lumber
Freestanding
3
Government Offices
0
Year Construction
2000
Remodeling Year
Urban or Rural
Rural
Observations
Administrator
Estudios Técnicos, Inc.
JUNE 5, 2006
Downtown Development Corporation
Page 57
SHOPPING CENTER PROFILE
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Name
La Fuente Shopping Center
Municipality
ETI ID
Toa Alta
Size (sq. ft.)
Category Size
30,000
Neighborhod
Mall Or Strip
Road
Lineal, minimall
Location Observations
Address
La Fuente residential community
Anchor Tenant
Freestanding
Mi Familia Supermarket
0
Government Offices
Year Construction
0
2000
Remodeling Year
Urban or Rural
Suburb, PUD
279
Observations
Administrator
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 58
Market, Impact and Financial Study
for a Shopping Center in Bayamón
APPENDIX 2:
FINAL REPORT
FINANCIAL ANALISYS OF THE PROPOSED DEVELOPMENT
After the market study a financial analysis was made to evaluate the feasibility of
the proposed shopping center. Three scenarios are presented. Each one assumes
minor changes on sales and commercial lease assumptions. Estudios Tecnicos, Inc.
carried out a survey in the primary area to determine rental rates.
In Scenario 1, net operating income will increase 15.1% annually from opening year
to 2015. The average return on investment during that period will be 3.5%.
Scenario 1
Main Assumptions Underlying the Projections
Development Asumptions
GLA / Total Construction Space
Total Construction Space (sq. ft.)
Construction Cost per sq. ft.
Total Construction Cost
Land Cost ($200,000 per cuerda)
Pre Openning Expenses
100%
232,000
$150
$34,800,000
$6,000,000
$300,000
Financing Assumptions
Total Investment
Equity by Owners
Amount to Finance
Loan Maturity (years)
Interest Rate
Annual Debt Service
$40,800,000
$6,300,000
$34,500,000
30
7.5%
$2,921,158
Commercial Lease Asumptions
Average Retail Rent ($ sq.ft.)
Overage (% Retail Rent)
Growth in Basic Retail Rent (% annual)
Expenses Recovery ($ sq. ft.)
Common expenses ($ sq. ft.)
Administrative Expenses ($ sq. ft.)
Growth in Retail Expenses
$23.00
6%
3%
$5.00
$5.00
$0.58
3%
Other Assumptions
Years to Depreciate Construction
Marginal Tax Rate
First Year of Operations
40
39%
2009
Sales Assumptions
Sales per Sq. Ft. of Retail Space
Overage (%)
Growth of Sales per sq. ft.
Estudios Técnicos, Inc.
JUNE 5, 2006
$152
6%
5%
Page 59
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 60
Market, Impact and Financial Study
for a Shopping Center in Bayamón
FINAL REPORT
In Scenario 2, net operating income will increase 14.3% annually from opening year
to 2015. The average return on investment during that period will be 3.4%.
Scenario 2
Main Assumptions Underlying the Projections
Development Asumptions
GLA / Total Construction Space
Total Construction Space (sq. ft.)
Construction Cost per sq. ft.
Total Construction Cost
Land Cost ($250,000 per cuerda)
Pre Openning Expenses
100%
232,000
$160
$37,120,000
$7,500,000
$300,000
Financing Assumptions
Total Investment
Equity by Owners
Amount to Finance
Loan Maturity (years)
Interest Rate
Annual Debt Service
$44,620,000
$7,800,000
$36,820,000
30
7.5%
$3,117,595
Commercial Lease Asumptions
Average Retail Rent ($ sq. ft.)
Overage (% Retail Rent)
Growth in Basic Retail Rent (% annual)
Expenses Recovery ($ sq. ft.)
Common expenses ($ sq. ft.)
Administrative Expenses ($ sq. ft.)
Growth in Retail Expenses
$25.00
6%
3%
$5.00
$5.00
$0.58
3%
Other Assumptions
Years to Depreciate Construction
Marginal Tax Rate
First Year of Operations
40
39%
2009
Sales Assumptions
Sales per Sq. Ft. of Retail Space
Overage (%)
Growth of Sales per sq. ft.
Estudios Técnicos, Inc.
JUNE 5, 2006
$156
6%
5%
Page 61
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 62
Market, Impact and Financial Study
for a Shopping Center in Bayamón
FINAL REPORT
In Scenario 3, the land cost would be financed. The net operating income will
increase 16.5% annually from opening year to 2015. The average return on
investment during that period will be 3.7%.
Scenario 3
Main Assumptions Underlying the Projections
Development Asumptions
GLA / Total Construction Space
Total Construction Space (sq. ft.)
Construction Cost per sq. ft.
Total Construction Cost
Land Cost ($200,000 per cuerda)
Pre Openning Expenses
100%
232,000
$150
$34,800,000
$6,000,000
$300,000
Financing Assumptions
Total Investment
Equity by Owners
Amount to Finance
Loan Maturity (years)
Interest Rate
Annual Debt Service
$40,800,000
$300,000
$40,500,000
30
7.5%
$3,429,185
Commercial Lease Asumptions
Average Retail Rent ($ sq. ft.)
Overage (% Retail Rent)
Growth in Basic Retail Rent (% annual)
Expenses Recovery ($ sq. ft.)
Common expenses ($ sq. ft.)
Administrative Expenses ($ sq. ft.)
Growth in Retail Expenses
$25.00
6%
3%
$5.00
$5.00
$0.58
3%
Other Assumptions
Years to Depreciate Construction
Marginal Tax Rate
First Year of Operations
40
39%
2009
Sales Assumptions
Sales per Sq. Ft. of Retail Space
Overage (%)
Growth of Sales per sq. ft.
Estudios Técnicos, Inc.
JUNE 5, 2006
$152
6%
5%
Page 63
Market, Impact and Financial Study
for a Shopping Center in Bayamón
Estudios Técnicos, Inc.
JUNE 5, 2006
FINAL REPORT
Page 64