City of Ferndale - 143 E 9 Mile Road

Transcription

Mixed-Use Development Analysis & Report
View Standing on 9 Mile Behind Como
(Looking Northeast Towards the New Development)
143 E 9 MILE ROAD
Ferndale, MI
January, 2015
ACKNOWLEDGMENTS
THE CITY OF FERNDALE:
City Council:
Dave Coulter [Mayor]; Dan Martin [Pro Tem];
Mike Lennon, Greg Pawlica, Melanie Piana [Council Members]
DDA:
Michael Hennes [Chairperson]; Dean Bach [Vice Chairperson]; Brian Kramer [Treasurer];
John McQuiggin [Secretary]; Mindy Cupples, Chris Johnston, Ed Lane,
Jay McMillan [Directors]; Dave Coulter [Mayor]; Dan Martin [Designated Alternate]
Derek Delacourt [Community & Economic Development Coordinator]
Cristina Sheppard-Decius [Executive Director]
MICHIGAN ECONOMIC DEVELOPMENT CORPORATION [MEDC]:
Jennifer Rigterink [Redevelopment Ready Communities]
Joe Meyers [Redevelopment Ready Communities]
NORTH STAR PARTNERS:
Noah Dorfman [Real Estate Management & Partner]
DOCUMENT PREPARED BY:
Peter Allen [Peter Allen & Associates]
Clarke Lewis [MArch 15’][Pivot Real Estate Services LLC]
Dang Duong [JD & MBA 15’][Pivot Real Estate Services LLC]
TABLE OF CONTENTS
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
DEVELOPMENT RISKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
RESEARCH & MARKET ANALYSIS��3
FERNDALE AMENITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
WALKSCORE & TRANSPORTATION�� 5
PARCEL ASSEMBLY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PROPOSED DEVELOPMENT & DESIGN��7
PRECEDENTS : 230 HASLEY STREET �� 8
PRECEDENTS : CENTURY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PRECEDENTS : GORDON SQUARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
MIXED-USE DEVELOPMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
GREEN ALLEY DESIGN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
POCKET PARK DESIGN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
POCKET PARK RENDERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SITE PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SITE PLAN DIAGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
FINANCIAL ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
CONSTRUCTION COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
PROFORMA : PHASE 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
PROFORMA : PHASE 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
PROFORMA : COMBINED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
LOT DIMENSIONS & REQUIRED INCOME �� 22
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
ABOUT OUR TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
This development is designed to enhance the market ambiance of your authentic local
foodie retailers with more sidewalk excitement. (Below: Valentine Distilling Co.)
EXECUTIVE SUMMARY
Summary
The Michigan Economic Development Corporation has commissioned Peter Allen & Associates to envision and design retail, office
and residential developments throughout Michigan’s most attractive downtowns. These proposals need to be feasible and incorporate ideas that would attract developers and investors, both debt
and equity, to make these proposed developments a reality within
the next few years. They must create retail destinations and attractive housing for the Millennial Generation.
Lot
1
2
3
4
5
6
Gross
Acquisition
Cost
140 Vester
$430,794
150 Vester
$328,750
160 Vester
$328,750
180 Vester (subsurface & air rights only)
$328,750
165 E 9 Mile
$657,500
Ferndale Parking
$999,627
Total $3,073,811
Address
R
WA
OD
WO
VE
DA
Key Risks
Valentine
Distilling Co.
Parking
VESTER ST
PHASE 1
To Underground Parking
PHASE 2
Como’s
E 9 MILE RD
W 9 MILE RD
VE
DA
R
WA
OD
WO
Ferndale City
Public Library
SITE PLAN
A six-parcel land assembly at the intersection of Woodward and
E 9 Mile in Ferndale offers a game changing, mixed-use downtown development opportunity to create exciting sidewalk retail,
creative office space, and inviting rental apartments for the Millennial Generation. This $25 million, two-phase development could
expand place-based retail east of Woodward along E 9 Mile Rd,
add complementary retail vibe to the south side of Vester St, and
offer a destination for young people to live in Ferndale and enjoy
its unique ambiance.
This complex land assembly involves six different property owners
and totals approximately 61,500 sf. The proposed site is bounded
by E 9 Mile Rd to the south, Vester St to the north, Bermuda St to
the east, and the alley behind the restaurant Como’s to the west.
This 1.4 acre plus site includes the former church site at 165 E
9 Mile, the city parking lot on E 9 Mile, the Ferndale City Glass
building, the White Heather Club, the building at 160 Vester, and
Ferndale Collision’s west surface parking lot (the Ferndale Collision
building is not included, but the air rights over its west surface
parking lot are included in the proposed development).
The new development could support two phases of retail, office,
and rental apartments over underground public parking for up to
155 spaces. Phase 1 would be approximately $14 million in value,
while Phase 2 would be about $11 million.
Economic Cycle: Formulate a plan to implement and absorb this
phased development in the next 2-4 years.
Market Condition: How will Ferndale position itself to attract the
best young minds in the face of growing competition from a resurgent Detroit Downtown? Emphasizing Ferndale’s vibrant ambiance, affordable cost structure, and central location in Metro Detroit is key to maintaining Ferndale’s competitive edge.
Architecture: Create retail frontage adjacent to pocket parks at
each building to draw attention and visitors from Woodward; attract unique local artisan and brewery-related retailers on the
ground floor along E 9 Mile and Vester; install incubator offices on
the second floor; build rental apartments (650 sf 1 BR & 850 sf 2
BR, 2 Bath) on the third and fourth floors.
Stakeholders and Political Issues: The City should commit to building 40 plus public street parking spaces around the site for the
proposed new retailers and offices, while the developer will undertake to build public parking on one underground level ($35,000 per
space); the six property owners should commit to an agreement to
sell their land at $50/sf based on proforma estimates.
Regional Transit Options Timetable: The dependence on the car
and the need for on-site parking will decrease with the establishment of the five county regional bus system and a light rail connection along Woodward; however, the timetable for these future
endeavors remain uncertain.
Legal: Ferndale Collision gets long term parking in return for selling
lot. City should offer an OPRA tax abatement to the developer in
return for the developer building public underground parking.
As the financial analysis suggests, the current market rents for residential, office and retail support the construction costs. If 15% of
the total development cost is allocated for land acquisition, this development supports a land value of approximately $50 per square
foot. The estimated land value for each of the six parcels are listed
as follows and in the Financial Analysis on page 22.
Page 1
MEDC | Redevelopment Ready Communities
DEVELOPMENT RISKS
Page 2
RESEARCH & MARKET ANALYSIS
PAGE 3
FERNDALE AMENITIES
O
WO
AMENITIES MAP
Bar/Pub
D
AR
DW
Restuarant
E
AV
Coffee
Pharmacy
Shopping
VESTER ST
1/4 MILE
W 9 MILE RD
Page 4
1/8 MILE
E 9 MILE RD
WALKSCORE & TRANSPORTATION
Getting Around Ferndale
WALKSCORE
VERY WALKABLE - MOST ERRANDS
ACCOMPLISHED BY FOOT
89
BICYCLING
+ EXISTING & PROPOSED BIKE LANES
+ DOWNTOWN FERNDALE BIKE SHOP
BUSES
+ SMART TRANSIT BUSES
+ PROPOSED BUS RAPID TRANSIT ON
WOODWARD
Page 5
PARCEL ASSEMBLY
(1) 140 VESTER ST
(2) 150 VESTER ST
(3) 160 VESTER ST
R
WA
OD
WO
VE
DA
VESTER ST
1
2 3
4
5
6
E 9 MILE RD
W 9 MILE RD
VE
DA
R
WA
OD
WO
Former Church Pictured,
Now Demolished
(4) 180 VESTER ST
Page 6
(5) 143-157 E 9 MILE RD (PARKING)
(6) 165 E 9 MILE RD
PROPOSED DEVELOPMENT & DESIGN
PAGE 7
PRECEDENTS : 230 HASLEY STREET
Newark, NJ, USA
2013
[Richard Meier & Associates]
USES:
Mixed Use
Retail
Education
Residential
Teachers Village, developed by Newark-based RBH Group, is intended to restore a sense
of place by activating the streetscape along Halsey and William Streets, attracting residents, students, shoppers and visitors to this dynamic new community and to the existing cultural, entertainment and educational infrastructure of local institutions. 230 Halsey
Street within the Teachers Village neighborhood is the piece of the puzzle that completes
the picture of a healthy, vital downtown, creating a 24/7 environment and destination for
diverse populations to linger and enjoy what downtown Newark can offer. Teachers Village
is one of the first developments in America to pursue the LEED Neighborhood Development designation by the US Green Building Council, indicating that the project meets the
highest levels of sustainable design and that the neighborhood integrates the principles of
smart growth, urbanism and green building strategies.
[source: archdaily.com]
Page 8
PRECEDENTS : CENTURY
Vancouver, BC
2011
[Raymond Letkeman Architects Inc]
USES:
Mixed Use
Residential
Retail
Century features nearly 37,000 sq. ft. of retail space. This commercial component is home
to No Frills Market, Shoppers Drug Mart, and Starbucks Coffee which provides the neighborhood with the ease of one stop shopping for your everyday needs. Customer parking
is located just off East 30th Avenue while pedestrians will have street-front access from
Fraser Street.
[source:sasaki.com]
Page 9
PRECEDENTS : GORDON SQUARE
Cleveland, OH
2010
[The Coral Company]
USES:
Mixed Use
Residential
Retail
Arts & Culture
The Gordon Square Arts District is the economic cornerstone of Cleveland’s West Side
where a powerful combination of housing, new businesses, the arts and neighborhood
beautification are sparking the development of new jobs for residents.
This District is helping to infuse more than $500 million in economic development in the
surrounding community. The driving force for the arts district is a triad of established and
successful arts and non-profit organizations that provide unique entertainment, attracting
audiences from throughout the region, a collaboration that can serve as a national model
for funding the arts.
[source:http://www.thecoralcompany.com/properties/gordon-square/]
Page 10
MIXED-USE DEVELOPMENTS
in Walkable Neighborhoods
DOUGHBOY SQUARE
Location : Pittsburgh, PA
Developer : Central Real Estate Holdings
Key Attributes:
Balconies
Material Use & Context
AVENUE ONE CONDOS
Location : Columbus, OH
Developer : Santer Communities
Key Attributes:
Parking Onsite
Balconies
318 WEST LIBERTY (PROPOSED) DINKYTOWN
Location : Ann Arbor, MI
Developer: Peter Allen & Associates
Location : Minneapolis, MN
Developer : Opus Development, LLC
Key Attributes:
Stick Built Construction
Parking Underground
Mixed use with office and residential
over retail
Key Attributes:
Second Floor Distinguished (Office)
Set Back Residential
Page 11
THE FOUNDRY
Location : Ames, IA
Developer : Opus Development, LLC
Key Attributes:
Exciting the Sidewalk
Parking Underground
LANIER HEIGHTS
Location : Washington, DC
Architect : Perseus Realty
Key Attributes:
Street Scape
Outdoor Seating
GREEN ALLEY DESIGN
Creating a Pedestrian Walkthrough
GATHERING PLACE + WALKTHROUGH
REGULATED DELIVERY TIMES
CENTRALIZED TRASH PICK-UP
LANDSCAPED SERVICE AREAS
PARKING + VENDORS
The alley between E 9 Mile Road and Vester Street creates a great connection opportunity
with the emerging business of Valentine Distilling Company and M-Brew. Taking advantage of the established business while greening the alley will create a desirable place for
pedestrians to walk from the busy intersection of 9 Mile and Woodward to this emerging
beverage/food district. Adding supplemental retail along the alley and Vester Street in the
new proposed development will only strengthen the connection, including the connection
to the majority of the retail in Downtown Ferndale on W 9 Mile Road.
Page 12
POCKET PARK DESIGN
Along Green Alley
BEFORE: E 9 MILE SIDE
PUBLIC ART (ANN ARBOR)
BEFORE: VESTER SIDE
LIGHTING
LANDSCAPING
OUTDOOR SEATING
PUBLIC ENGAGEMENT
The alley between E 9 Mile Road and Vester Street also presents the opportunity to design
pocket parks. Constructing a park on either end of the alley, one fronting 9 Mile while facing Woodward and one fronting Vester, creates a moment to draw people into the new
development and through the alley. Public art, lighting, landscaping, outdoor seating, and
public engagement help to create a desirable pocket park.
Page 13
POCKET PARK RENDERING
View from E 9 Mile & Woodward
Page 14
SITE PLAN
Valentine
Distilling Co.
Parking
VESTER ST
PHASE 1
PHASE 2
Como’s
E 9 MILE RD
VE
DA
R
WA
OD
WO
Page 15
Ferndale City
Public Library
SITE PLAN
SITE PLAN DIAGRAM
DIAGONAL STREET PARKING
RETAIL (BEVERAGE/FOOD)
CLASS A OFFICES (SECOND FLOOR)
E
AV
RD
WA
OD
WO
Valentine
Distilling Co.
Parking
VESTER ST
PHASE 1
PHASE 2
Como’s
E 9 MILE RD
W 9 MILE RD
R
WA
OD
WO
VE
DA
GREEN ALLEY/OUTDOOR SPACE
Page 16
Ferndale City
Public Library
SITE PLAN
RETAIL (TEXTILES, MAKER SPACE)
RENTAL APARTMENTS
FINANCIAL ANALYSIS
PAGE 17
CONSTRUCTION COSTS
Ferndale: Construction Cost Estimate with RS Means Guide
Property Location:
143 E 9 Mile Rd, 140-180 Vester Ave
Approximate Site Size (SF):
61,476
1.41 Acres
Michigan Cost Modifier:
101
Development Data
GSF
Phase 1: Apartments (3 Stories)
Phase 1: Retail (Ground Level)
Phase 1: Class A Office Space (Second Story)
Phase 2 Apartments (4 Stories)
Phase 2: Retail (Ground Level)
Pocket Parks (Phases 1 and 2)
Parking: Underground
Street Parking (City Expense)
43,200
9,500
15,000
44,200
8,000
10,000
27,900
0
Total Development Area (living space only)
Floor Area Ratio
119,900
1.95
Base Hard Cost of New Vertical Construction
(based on Means Cost Guide)
Phase 1: Retail (Ground Level) (include $20 TI)
Phase 1: Class A Office Space (Second Story)
Phase 2: Retail (Ground Level) ((include $20 TI)
Green Space
$35,000
Street Parking (City Expense) $0
Base
Cost / SF
$110.00
$130.00
$165.00
$110.00
$130.00
$10.00
$116.67
$17.00
Base Construction Cost Estimate
Base Cost
$4,799,520
$1,247,350
$2,499,750
$4,910,620
$1,050,400
$101,000
$3,287,550
$0
# of Units
Avg NSF/Unit
Development Description
46
798
47
799
3 stories stick built construction over office and retail
Retail at grade (local artisan, brewery-related, etc..)
2nd floor class A office
4 stories stick built construction over retail
Retail at grade (local artisan, etc..)
93
0
300
300
Upgrade %
Applied
Total
Base Cost
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
$17,896,190
$4,799,520
$1,247,350
$2,499,750
$4,910,620
$1,050,400
$101,000
$3,287,550
$0
$17,896,190
Final Cost of Construction Estimate
Total Base Cost of Construction Estimate
Site Work and Demolishment of 3 Existing Buildings
Subtotal - Hard Construction Costs
Total
$17,896,190
$100,000
$17,996,190
per SF
$149.26
$0.83
$150.09
Construction Project Management Fees (5% of Total Construction Costs)
Initial Site Survey
Third party reports
Finance Fee (1.5% mortgage)
Architectural / Engineering Fees (6% of Total Construction Costs)
Permit Fees est.
Plan Review Fees est
Development, Legal Fees, Other Soft Costs
Subtotal - Soft Construction Costs
$899,810
$5,000
$30,000
$223,613
$1,079,771
$179,012
$10,000
$715,848
$3,143,053
$7.50
$0.04
$0.25
$1.86
$9.01
$1.49
$0.08
$5.97
$26.21
$21,139,243
$1,056,962
$22,196,205
$176.31
$8.82
$185.12
$3,000,000
$25,196,205
$25.02
$210.14
Total Project Hard and Soft Construction Costs
Contingency
Total Project Hard and Soft Construction Costs w/ Contingency
Land and Acquisition (Phases 1&2)
Total Cost
Page 18
5.00%
1 level of underground parking
Ferndale wil pay for street parking
Cost / SF
Dev. Type
$111.10
$131.30
$166.65
$111.10
$131.30
$10.10
$117.83
NA
Cost / SF
Total
$40.03
$10.40
$20.85
$40.96
$8.76
$0.84
$27.42
$0.00
$149.26
PROFORMA : PHASE 1
For-Rent : 46 Apartments, Retail, Office
Ferndale: For-Rent Proforma, Phase 1 - Vester Frontage (46 Apts, Retail, Office)
Cost and Revenue Assumptions
Base Cost/GSF
Land and Acquisition
Residential Hard Cost
Retail Hard Cost
Office Hard Cost
Green Space (Pocket Parks)
Soft Costs and 5% Contingencies
Total
$1,500,000
$4,799,520
$1,247,350
$2,499,750
$100,000
$57,028
$1,610,000
$2,371,485
$14,185,133
Revenue: Residential
Revenue: Retail
Revenue: Office
$50.00
$110.00
$130.00
$165.00
$10.00
$35k/space
$209.53
Financing Assumptions
Debt
Equity
Total
Interest Rate
Amort Period
Payment
75.00%
25.00%
100.00%
Annual
5.000%
25
$746,324
$1,145,664
$193,800
$306,000
Key Ratios
Surface Area of all lots along Vester
$10,638,850 and parts of Ferndale Parking (SF)
$3,546,283
$14,185,133 Total Building GSF
Total Building NSF
Monthly
0.417% Residential (GSF)
300 Residential (NSF)
$62,194 Retail (GSF)
Retail (NSF)
Office (GSF)
Office (NSF)
Avg Monthly Resid Rent/NSF
Avg Monthly Retail Rent/NSF (NNN)
Avg Monthly Office Rent/NSF
Cost/GSF
Operating Revenues
Revenue: Retail
Revenue: Office
Vacancy Rate: Residential
Vacancy Rate: Retail
Vacancy Rate: Office
Gross Rental Revenue
Plus Underground Parking Rev. ($100/Mo. per space)
Plus Oper Exp Reim for Retail (9500 SF * $4.59)
Gross Income
Operating Expenses
3.00%
2.00%
-5.0%
-10.0%
-10.0%
$100
3.00%
2.00%
$/ GSF per Yr
$16.92
$2.86
$4.52
($1.69)
($0.29)
($0.45)
$21.87
$0.82
$0.64
$23.33
Monthly
$95,472
$16,150
$25,500
($9,547)
($1,615)
($2,550)
$123,410
$4,600
$3,634
$123,410
Year 1
$1,145,664
$193,800
$306,000
($114,566)
($19,380)
($30,600)
$1,480,918
$55,200
$43,605
$1,579,723
$2.60
$2.00
$2.00
$6.45
Projected
Year 2
$1,180,034
$199,614
$315,180
($118,003)
($19,961)
($31,518)
$1,525,345
$56,856
$44,477
$1,626,678
Year 3
$1,215,435
$205,602
$324,635
($121,543)
($20,560)
($32,464)
$1,571,105
$58,562
$45,367
$1,675,034
$4.59
% of Gross Inc
4.0%
6.0%
2.0%
1.7%
5.0%
5.0%
4.0%
27.7%
$0.93
$1.40
$0.47
$0.39
$1.17
$1.17
$0.93
$6.45
$5,266
$7,899
$2,633
$2,173
$6,582
$6,582
$5,266
$34,124
$63,189
$94,783
$31,594
$26,077
$78,986
$78,986
$63,189
$436,805
$64,453
$96,679
$32,226
$26,077
$80,566
$80,566
$64,453
$445,019
$65,742
$98,613
$32,871
$26,077
$82,177
$82,177
$65,742
$453,398
Net Operating Income
Note: NOI/ft
Return on Cost (NOI/Total Cost)
Less Debt Service
72.3%
$16.88
$89,286
$1.55
$11.02
$62,194
$1,142,918
$19.86
8.06%
$746,324
$1,181,659
$20.53
8.33%
$746,324
$1,221,635
$21.23
8.61%
$746,324
$5.86
$27,092
$396,594
$435,335
$475,312
11.18%
$219,363
$526,961
($325,260)
$290,697
($101,744)
$294,850
12.28%
$230,229
$516,095
($325,260)
$340,304
($119,106)
$316,229
13.40%
$241,632
$504,692
($325,260)
$391,684
($137,089)
$338,222
Before Tax Cash Flow
39.0
35.0%
$3.24
$7.78
($4.80)
$4.29
($1.50)
$4.36
Note: After Tax ROI
Capitalized value at:
Remaining Principal on Mortgage
43,200
36,720
9,500
8,075
15,000
12,750
3.00%
2.00%
Repairs and Maintenance
Property Management Fees
Admin
Property Taxes*** (w/OPRA)
Insurance
Utilities
Other Op Ex
Total Op. Exp.
Note: Before Tax ROI
Plus Principal Reduction
Note: Interest on Loan
Less Dep. Exp. - Building (Yrs)
Taxable income
Taxes
After Tax Cash Flow
67,700
57,545
$209.53
Annual Expenses/GSF
Rental Increase Projections
Operating Expense Projections
30,341
$18,280
($27,105)
$24,225
($8,479)
$24,571
8.31%
7.50%
$225.09
$15,238,902
$10,419,487
8.92%
$15,755,450
$10,189,258
9.54%
$16,288,473
$9,947,626
***2013 Ferndale City total millage rate: 54.5778 for homestead, 72.5778 for non-homestead. (http://www.michigan.gov/documents/taxes/2013_Total_Rates_450527_7.pdf)
Page 19
PROFORMA : PHASE 2
For-Rent : 47 Apartments, Retail
Ferndale: For-Rent Proforma, Phase 2 - E 9 Mile Frontage (47 Apts, Retail)
Retail Hard Cost
Site Work
Base Cost/GSF
$1,500,000
$4,910,620
$1,050,400
$0
$43,972
$1,645,000
$1,828,530
$10,978,522
Total
Revenue: Retail
$50.00
$110.00
$130.00
$10.00
$35k/space
$210.32
Debt
Equity
Total
Interest Rate
Amort Period
Payment
75.00%
25.00%
100.00%
Annual
5.000%
25
$577,614
$1,059,474
$163,200
Key Ratios
Surface Area of E 9 Mile and
$8,233,892 most of Ferndale Parking (SF)
$2,744,631
Total Building NSF
Monthly
Retail (NSF)
Avg Monthly Retail Rent/NSF
Cost/GSF
Operating Revenues
Revenue: Retail
Plus Oper Exp Reim for Retail ( 8000 SF * $5.35)
Gross Income
Operating Expenses
3.00%
2.00%
$/ GSF per Yr
$20.30
$3.13
-5.0%
($2.03)
-10.0%
($0.31)
$21.08
$100
$1.08
$0.82
$22.98
3.00%
2.00%
Monthly
$88,290
$13,600
($8,829)
($1,360)
$91,701
$4,700
$3,567
$91,701
Year 1
$1,059,474
$163,200
($105,947)
($16,320)
$1,100,407
$56,400
$42,800
$1,199,607
$2.35
$2.00
$6.04
Projected
Year 2
$1,091,258
$168,096
($109,126)
($16,810)
$1,133,419
$58,092
$43,656
$1,235,167
Year 3
$1,123,996
$173,139
($112,400)
($17,314)
$1,167,421
$59,835
$44,529
$1,271,785
$5.35
% of Gross Inc
4.0%
6.0%
2.0%
0.9%
5.0%
5.0%
4.0%
26.3%
$0.92
$1.38
$0.46
$0.21
$1.15
$1.05
$0.86
$6.04
$3,999
$5,998
$1,999
$934
$4,998
$4,585
$3,668
$24,083
$47,984
$71,976
$23,992
$11,205
$59,980
$55,020
$44,897
$315,055
$48,944
$73,416
$24,472
$11,205
$61,180
$56,121
$45,795
$321,132
$49,923
$74,884
$24,961
$11,205
$62,404
$57,243
$46,710
$327,330
Note: NOI/ft
Less Debt Service
73.7%
$16.95
$67,617
$1.52
$11.07
$48,135
$884,552
$19.94
8.06%
$577,614
$914,035
$20.60
8.33%
$577,614
$944,455
$21.29
8.60%
$577,614
$5.88
$19,483
$306,938
$336,421
$366,841
11.18%
$169,775
$407,839
($344,674)
$132,039
($46,214)
$260,724
12.26%
$178,184
$399,430
($344,674)
$169,932
($59,476)
$276,945
13.37%
$187,010
$390,604
($344,674)
$209,178
($73,212)
$293,629
9.50%
10.09%
10.70%
27.5
35.0%
$3.25
$7.81
($6.60)
$2.53
($0.89)
$4.99
Note: After Tax ROI
44,200
37,570
8,000
6,800
3.00%
2.00%
Admin
Insurance
Utilities
Other Op Ex
Total Op. Exp.
Taxable income
Taxes
After Tax Cash Flow
52,200
44,370
$210.32
Annual Expenses/GSF
31,135
7.50%
$225.94
$14,148
($28,723)
$11,003
($3,851)
$21,727
$11,794,026
$8,064,116
$12,187,135
$7,885,932
$12,592,734
$7,698,922
Page 20
PROFORMA : COMBINED
For-Rent Phase 1 & 2
Ferndale: For-Rent Proforma, Phases 1&2 (93 Apts, Retail, Office)
Retail Hard Cost
Office Hard Cost
Total
Revenue: Retail
Revenue: Office
$3,000,000
$9,710,140
$2,297,750
$2,499,750
$100,000
$101,000
$3,255,000
$4,200,015
$25,163,655
Base Cost/GSF
$50.00 Debt
$110.00 Equity
$130.00 Total
$165.00
$10.00
$35k/space
$209.87
Interest Rate
Amort Period
Payment
75.00%
25.00%
100.00%
Annual
5.000%
25
$1,323,938
$2,184,126
$357,000
$306,000
Key Ratios
$18,872,742 Surface Area of all Lots (SF)
$6,290,914
Total Building NSF
Monthly
Retail (NSF)
Office (GSF)
Office (NSF)
Avg Monthly Retail Rent/NSF
Avg Monthly Office Rent/NSF
Cost/GSF
Operating Revenues
Revenue: Retail
Revenue: Office
Vacancy Rate: Office
Plus Oper Exp Reim for Retail ( 17500 SF * $4.94)
Gross Income
Operating Expenses
3.00%
2.00%
-5.0%
-10.0%
-10.0%
$100
3.00%
2.00%
$/ GSF per Yr
$18.22
$2.98
$2.55
($1.82)
($0.30)
($0.26)
$21.37
$0.93
$0.72
$23.02
Monthly
$182,011
$29,750
$25,500
($18,201)
($2,975)
($2,550)
$213,534
$9,300
$7,204
$213,534
Year 1
$2,184,126
$357,000
$306,000
($218,413)
($35,700)
($30,600)
$2,562,413
$111,600
$86,450
$2,760,463
$2.45
$2.00
$2.00
$6.17
Projected
Year 2
$2,249,650
$367,710
$315,180
($224,965)
($36,771)
($31,518)
$2,639,286
$114,948
$88,179
$2,842,413
Year 3
$2,317,139
$378,741
$324,635
($231,714)
($37,874)
($32,464)
$2,718,464
$118,396
$89,943
$2,926,803
$4.94
% of Gross Inc
4.0%
6.0%
2.0%
1.4%
5.0%
5.0%
4.0%
26.8%
$0.92
$1.38
$0.46
$0.31
$1.15
$1.07
$0.87
$6.17
$9,202
$13,802
$4,601
$3,107
$11,502
$10,677
$8,541
$57,183
$110,419
$165,628
$55,209
$37,282
$138,023
$128,121
$104,546
$739,228
$112,627
$168,940
$56,313
$37,282
$140,784
$130,683
$106,637
$753,266
$114,879
$172,319
$57,440
$37,282
$143,599
$133,297
$108,770
$767,586
Note: NOI/ft
Less Debt Service
73.2%
$16.86
$156,352
$1.53
$11.04
$110,328
$2,021,236
$19.83
8.03%
$1,323,938
$2,089,146
$20.50
8.30%
$1,323,938
$2,159,217
$21.19
8.58%
$1,323,938
$5.82
$46,024
$697,298
$765,208
$835,279
11.08%
$389,138
$934,800
($568,299)
$518,137
($181,348)
$515,950
12.16%
$408,413
$915,525
($568,299)
$605,322
($211,863)
$553,345
13.28%
$428,642
$895,296
($568,299)
$695,623
($243,468)
$591,811
8.20%
8.80%
9.41%
39.0
35.0%
$3.25
$7.80
($4.74)
$4.32
($1.51)
$4.30
Note: After Tax ROI
87,400
74,290
17,500
14,875
15,000
12,750
3.00%
2.00%
Admin
Insurance
Utilities
Other Op Ex
Total Op. Exp.
Taxable income
Taxes
After Tax Cash Flow
119,900
101,915
$209.87
Annual Expenses/GSF
61,476
7.50%
$224.77
$32,428
($47,358)
$43,178
($15,112)
$42,996
$26,949,811
$18,483,603
$27,855,284
$18,075,190
$28,789,563
$17,646,548
Page 21
LOT DIMENSIONS & REQUIRED INCOME
Ferndale: Lot Dimensions, Property Tax, and Acquisition Cost
Lot
Address
Length (FT)
1
2
3
4
5
140 Vester
150 Vester
160 Vester
180 Vester (parking only)
165 E 9 Mile
6
Ferndale Parking
Total
Width (FT)
131.5
131.5
131.5
131.5
131.5
83.6
48.0
65.5
50.0
50.0
50.0
100.0
158.9
140.0
8,616
6,575
6,575
6,575
13,150
2014
Property Tax
$4,381
$11,503
$5,380
$4,812
$11,205
19,985
61,476
Area (SF)
$50
$50
$50
$50
$50
Gross
Acquisition Cost
$430,794
$328,750
$328,750
$328,750
$657,500
$0
$50
$999,267
$37,282
$50
$3,073,811
Value/SF
Ferndale: Incomes of Potential Residential Rental Tenants
For Rent
Unit Type
NSF
Rent/Month
Rent/NSF per
Month
1 bdrm, 1 ba
2 bdrm, 2 ba
650
850
$1,593
$2,083
$2.45
$2.45
Page 22
Annual Income
Required (Rents at
30% of Income)
$63,700
$83,300
APPENDIX
PAGE 23
ABOUT OUR TEAM
E
CO
MM
R
in
e
l
g
ITY
N
U
Urban Planning
M
A
R
KE
T
e
c
DESIGN
PETER ALLEN &
ASSOCIATES
CONSULTING
E
Architecture
o
c
n
na
a
l
d
ui
B
st
at
e
i
C
ty
Policy
OUR EXPERTISE:
Fi
m
no
Law
ic
s
OUR PROCESS:
1
2
3
4
Site
Visit
Initial
Concepts
Final
Report
RFP
Process
Briefing +
Exploration
Engagement +
Feedback
Complete
Analysis
Developer
Showcase
Peter Allen & Associates (PAA) works on behalf of the Michigan Economic Development
Corporation (MEDC) to analyze and recommend development sites in communities that
are candidates in MEDC’s Redevelopment Ready Community Program (RRC). The PAA
Team is comprised of a select group of graduate students and alumni of the University of
Michigan who are trained in a variety of fields and have a diverse set of professional experiences. This dynamic team provides a multidisciplinary approach to development and
employs a holistic review of the development potential.
The PAA holistic analysis approach employs a variety of market data and design techniques, and engages neighborhood participation to formulate the best recommendations
for the community. PAA seeks to create a vision that the local community embraces and
that can be realized through further collaboration between neighbors, developers, and
local governments.
Page 24

City of Ferndale - 143 E 9 Mile Road

Transcription

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