University Crossing ! A San Francisco graduate student housing development by:
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University Crossing Â
University Crossing Housing • 94 Rental Furnished Units • 6,000 SF of Retail • Total Cost $36,350,031 • G. Levered IRR: 32.5% • Equity Multiple: 2.08x • LP- 70%- $8,159,148 • Breaking Ground Summer of 2014!
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The Tenderloin…….the time is now!
an emerging neighborhood with history
Rebuilt after the Great Fire
Off the bustling street of Market
Blocks from the capitol and parks 4Y HOUSING
Dozens of entertainment venues University Crossing
San Francisco Real Estate Values
The Tenderloin is a low barrier to entry market 4Y HOUSING
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Surrounding Institutions • Our primary target school is UC Hastings due to its close proximity to the site • Our goal is to target surrounding institutions that are not providing enough housing for their students • Aside from UC Hastings the neighboring universities are comprised of art, medical, and culinary undergraduate and graduate programs
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Surrounding Institutions U.O.P Dentistry School
Enrolled: 140 Housed: 20 FIDM
Academy of Art
Enrolled: 18,000 Housed: 3,600
Enrolled: 875 Housed: 0
Hastings Law School
Enrolled: 1,250 Housed: 300
California Enrolled: 1400 Institute of Housed: 0 Integral Studies CCA California Culinary Academy
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Enrolled: 1,000 Housed: 125
Enrolled: 997 Housed: 0
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Student Housing Market
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Student Housing – Salient Features
Why Invest? • Generation Y will be filling
college classrooms for years to come
• Higher education tends to be less
affected by economic trends
• The median rent increase higher than the rent component of the Consumer Price Index • Nationally the ratio of university-owned beds to enrollment is about 30 percent What Matters? Location, Location, Location!!........ confusing • The best properties are within walking distance of a campus • Avoid areas where rental properties are already abundant
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Why University Crossing will work? • 500 Unit Student Housing (Annual Enrollment – 1100, Student Housing Annual Vacancy – 80) • Fully Furnished Apartments • Fully/Partially Serviced Apartments – Cleaning, Internet, Phone, TV • Common Lounge, Printing Facilities & Study Area with amenities such as 24-7 Café • Pet Friendly • 24 Hours Security
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New Amenities for a New Generation • A generation that is driven by high value goods • A generation that rely heavily on smart phones • Integrating Near Field Communications (NFC) Technology • Smart Click • Laundry View
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Marketing: Timeline
Social Media Falll-Winter Break 2014 Teasers through Facebook LinkedIn
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On Campus Spring 2015 Visiting Campuses
Leasing Office Summer 2015 Certificate of Occupancy Office Opens for Leasing
Occupied Fall 2015
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Market Comparable
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UC Current Housing Enrollment (as of Fall 2012) 1,159 McAllister Tower Apartments Built in 1930 252 Units (80% Efficiency/Studio) Housing some 300 UC Hastings students 80 to 90 apartments available each academic year Amenities: A fitness center featuring Tower’s mezzanine level Sky Room Pets are not allowed All units are unfurnished Type Price Range Approx. Sq. Ft. Efficiency $950 - $1,100 250 Studio $1,105 - $1,430 350 One Bedroom $1,425 - $1,775 500 Two Bedroom $2,450 850 Two bedroom Penthouse $3,055- $3,465 1140
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Max Tenants One Two Two Two Two
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Market Competitor for Student Housing
38 Latitude provides less, University Crossing will fill that void in the market Price 1 218 Ellis Street $1400 per room / $700 per person Shared bathrooms, large common kitchen 2 Gateway Inn $900 for shared ba / $1250 for private ba No kitchen 3 The Embassy $1400-$1600 for single room / $1500-$1800 for shared room No kitchen, microwave and mini fridge 4 Dakota Hotel $1600-$1700 for single room / $1700-$1800 for shared room Large common kitchen 5 The Post $1400 per room / $700 per person 6 Halyco $2400 per month In-room kitchenette, private bathrooms 7 Oasis Inn $1600 per month No kitchen, private bathrooms
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Apartment ! Comparable Carillon Tower 1 bed room - 2890 2 bed room - 3400
University Crossing will offer the newest and largest apartments in the market!!! 1 bed room - 1850 2 bed room - 2300
Ellis Street Apartments Apartments
The Hamilton Building
Studio - 1200 1 bed room - 1600 2 bed room - 2200
Oasis Apartments Studio - 1100 1 bed room - 2200
Hampton Court Apartment 1 bed room - 1560 2 bed room - 1950
Average Rent
We propose 1 bedroom 20% lower, 2 bedroom 10% lower than market rent
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1 bed room
$1880
2 bed room
$2500
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Pipeline in SF We believe in the current pipeline of four towers, Nema is our only compeBtor
Our Site
Nema/1401 Market Street 754 Units Completion Date: Jan 2014
Potrero launch Apartments 196 Units Completion Date: Oct 2012
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One Ricon Hill II 425 1st Street 299 Units Completion Date: Aug 2014
Madrone 420 Mission Bay Blvd N 329 Units Completion Date: Dec 2012
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Architecture + Planning
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Turk Street Entrance
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Roof-top and Courtyard
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SITE CONDITION
Site
Transit Map 4Y HOUSING
Birds Eye View
Top View University Crossing Â
Panorama View of Our Prime Corner Lot LARKIN 18,302 ADT
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Zoning Analysis
TURK ST
LARKIN
LARKIN
ST
ST
Lot Analysis and areas ADDRESS
AREA
DIMENSIONS ZONING
FAR
MAX FBA DENSITY MAX UNITS PARKING REQ
PARKING
APROX AREA HEIGHT LIMIT "@350s f/s pace"
500 Turk Street
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18,905 sf
146 x 129.48
RC-‐4
4.8
90,744 sf
1/200sf
94
1/4 units
24 spaces
8,225 sf
130 ft
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Program Distribution Schematic Progam distribution and Areas per floor
Mechanical Rentable Area per Cummulat Circulation area Floor Height Lot Coverage floor Height Ammenities p/floor
Floor 146 ft
24%
76%
20% 39% 39% 39% 39%
5,200 sf 7,400 sf 7,400 sf 7,400 sf 7,400 sf
5,200 sf 1,800 sf 1,800 sf 1,800 sf 1,800 sf
0 sf 5,600 sf 5,600 sf 5,600 sf 5,600 sf
12 ft 11.5 ft 11.5 ft 11.5 ft 11.5 ft
130 ft 118 ft 106 ft 95 ft 83 ft
39%
7,400 sf
1,800 sf
5,600 sf
11.5 ft
72 ft
5
39%
7,400 sf
1,800 sf
5,600 sf
11.5 ft
60 ft
4
39%
7,400 sf
1,800 sf
5,600 sf
11.5 ft
49 ft
3
39%
7,400 sf
1,800 sf
5,600 sf
11.5 ft
37 ft
2
39%
7,400 sf
2,150 sf
5,250 sf
11.5 ft
26 ft
100%
18,905 sf
4,599 0 sf sf
14,306 sf
14 ft
14 ft
M
Ammenities
10 9 8 7 6
1
RENTALS
Access
Retail
Turk Street Elevation
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9 10 11
11 units 11 units
Residential Rental Area 94
RESIDENTIAL
Floor 2-‐11
TOTAL RENTABLE AREA TYPE OF UNIT Studio 1 Bedroom 2 Bedroom TOTAL COUNT
50,050 sf AREA p/unit (sf) 350 sf 630-‐650 930-‐950
7 7
2 2
2 2
54 57%
22 23%
18 20%
RETAIL # UNITS 54 22 18 94
RENTABLE AREA OF GROUND FLOOR
6,000 sf
UNIT DISTRIBUTION Floor 1 2 3 4 5 6 7 8 9 10 11
Total Units
Studio
1 Bedroom 2 Bedroom
9 units 10 units 10 units 10 units 11 units 11 units 11 units 11 units 11 units
4 5 5 5 7 7 7 7 7
3 3 3 3 2 2 2 2 2
2 2 2 2 2 2 2 2 2
94
54 57%
22 23%
18 20%
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RETAIL
RENTABLE AREA OF GROUND FLOOR
6,000 sf
Larkin Street
Ground Level
Turk
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l
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Level 1-2
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Level 3-5
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Level 6-10
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Level 11
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Amenities
• Gym/ Fitness Facilities • T.V Rooms 4Y HOUSING
• BBQ Green Space and Roof-top
• Common Lounge
• Recycling/garbage chute University Crossing
Financial Strategy
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Capital Structure & Exit Strategy Equity • GP-30%- $3,496,778 • LP- 70%- $8,159,148
Debt • Senior Lender- Preferable terms sue to buyout 70% LTV/ 82% LTC$25,445,022
Exit Strategy • • • •
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3 Years of development and approximately 1 Year Hold REIT buyout after a stabilization period Agreed upon cap rate In place financing premium
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FINANCIAL ANALYSIS: SOURCES & USES Sources 31% Equity: 69% Debt:
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$ 11,604,748 $ 25,445,022 $37,049,770
Uses 18% Acquisition: 60% Hard Costs: 20% Soft Costs: 2% Financing:
$6,591,900 $22,346,444 $7,411687 $699,738 $37,049,770
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FINANCIAL ANALYSIS: TIMELINE
AcquisiBon
Development
Year 2012 2013
Years 1-2 2014-2015
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StabilizaBon Year 3 2016
Exit Year 4 2017
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FINANCIAL ANALYSIS: ASSUMPTIONS AcquisiBon
Development
StabilizaBon
Exit
Acquisition Purchase Price: $6,591,900 Going in Price PSF: $350 Going in Price per buildable SF: $73
Acquisition Loan Loan Amount: $4,614,440 Interest Rate: 2.75% Term: 10 years Amortization: 30 Years
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FINANCIAL ANALYSIS: ASSUMPTIONS AcquisiBon
Acquisition Purchase Price: $6,591,900 Going in Price PSF: $350 Going in price per buildable SF: $73
Acquisition Loan Loan Amount: $4,614,440 Interest Rate: 2.75% Term: 10 years Amortization: 30 Years
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Development
StabilizaBon
Exit
Development Costs Hard Costs: Soft Costs: Interest:
$22,346,444 ($247 PSF) $7,411,687 ($82 PSF) $ 2,707,192
Construction Loan Loan Amount: $20,830,692 Interest Rate: 2.75% Term: 3 years Amortization: 30 years
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FINANCIAL ANALYSIS: ASSUMPTIONS AcquisiBon
Acquisition
Acquisition Loan Loan Amount: $4,614,440 Interest Rate: 4.25% Term: 10 years Amortization: 30 Years
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Development
Development Costs
StabilizaBon
Exit
Stabilization
Hard Costs: $22,346,444 ($247 PSF) Soft Costs: $7,411,687 ($82 PSF) Interest: $ 2,707,192
EGR: $2,662,844 ($30 PSF) OPEX: $798,853 ($9 PSF) NOI: $1,863,991 DS: $1,353,596 Cash Flow: $510,394
Construction Loan Loan Amount: $20,830,692 Interest Rate: 2.8% Term: 3 years Amortization: Interest Only
Permanent Loan Loan Balance: $ $26,683,017 DSCR: 1.4
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FINANCIAL ANALYSIS: ASSUMPTIONS AcquisiBon
Acquisition
Acquisition Loan Loan Amount: $4,614,440 Interest Rate: 4.25% Term: 10 years Amortization: 30 Years
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Development
Development Costs
StabilizaBon
Exit
Stabilization
Exit
Hard Costs: $22,346,444 ($247 PSF) Soft Costs: $7,411,687 ($82 PSF) Interest: $ 2,707,192
EGR: $2,662,844 ($30 PSF) OPEX: $798,853 ($9 PSF) NOI: $1,863,991 DS: $1,353,596 Cash Flow: $510,394
Construction Loan Loan Amount: $20,830,692 Interest Rate: 2.75% Term: 3 years Amortization: 30 Years
Permanent Loan Loan Premium Loan Balance: $ $26,683,017 DSCR: 1.4
Exit NOI: $1,993,884 Exit Cap: 4.5% Sale Price: $44,308,541 ($6,015,660 Financing Premium)
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FINANCIAL ANALYSIS: RETURNS Total Equity GP Equity: LP Equity Requested:
$11,604,748 $3,481,424 $8,123,324
Project Returns Unlevered IRR: Gross Levered IRR: Gross Levered Equity Multiple
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10 % 32.5% 2.08 x
University Crossing Â
University Crossing ! A San Francisco graduate student housing development by:
happy birthday Vicki !!!
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University Crossing Â