East boston waterfront final presentation small

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THE WATERFRONT BRIAN VARGO + THEODORE WILCOX CONRAD



Why is development not feasible? 1. Chapter 91: Ground Floor Requirements 2. The Market 520 sf

$1995 $3.84 psf

50% 1 Bedroom 680 sf

$2195 $3.23 psf

15% Studio

35% 2 Bedroom 1070 sf $3145 $2.97 psf



Clippership Wharf


Maverick Square

T

Lewis Mall


Maverick Square

Lewis Mall Clippership Wharf


Retail Space


More Value

Retail Space


$8.4m



MAVERICK










Maverick Square Underground Parking 62 Parking Spots $2.0 Hourly Rate




Maverick Square: Construction Cost

Total cost

Gross sqft

Cost

Landscape/Hardscape

$2,450,000

70,000

$30/sqft

Below ground parking

$2,700,000

20,000 (60 spots)

$45,000/spot

Total Cost:

$5,150,000



Targeted Properties: 16,387 sf A: 3,665 sf gross B: 7,251 sf gross C

C: 5,471 sf gross

A

B


Proposed Buildings: 109,686 sf A: 38,480 sf gross B: 38,624 sf gross

C

C: 32,582 sf gross

A

B


Floor 1: Retail A: 10,186 sf B: 10,257 sf C: 7,313 sf Rent: $35 PSF NNN C

A

B


Floor 2: Commercial A: 10,186 sf B: 10,257 sf C: 7,313 sf Rent: $25 PSF NNN C

A

B


Floor 3-5: Residential (90) Studio Apartments, 375 sf $1500 rent A: 11,250 sf B: 11,250 sf C: 11,250 sf

C

A

B




Legend Source: CDFI Fund and TRF 2010 Census Tract B: Severely Distressed - Primary C: Eligible D: Not Eligible A: Insufficient Data


Maverick Square: Financial Assumptions

Maverick A

Maverick B

Maverick C

$831,000

$943,000

$773,000

$11,094,796

$11,248,079

$9,574,849

Cost per Unit

$152,236

$153,764

$155,115

New Market Tax Credit

$2,551,803

$2,587,058

$2,202,215

$776,635

$787,365

$670,239

Aquisition Costs Total Cost

Equity Required


Maverick Square: Returns

Maverick A

Maverick B

Maverick C

No Subsidy With NMTC

No Subsidy With NMTC

No Subsidy With NMTC

ROTA

4.4%

5.7%

4.3%

5.6%

4.3%

5.6%

Unlevered IRR

2.7%

7.4%

2.4%

7.1%

2.3%

7.1%

Levered IRR

-0.1%

21.9%

-1.0%

20.6%

-1.3%

20.3%


LEWIS





Lewis Mall + Maverick Square Landscape Construction Costs

Total Cost

Gross sqft

Cost

Maverick: Landscape

$2,450,000

70,000

$30/sqft

Maverick: Parking

$2,700,000

20,000 (60 spots)

$45,000/spot

Lewis: Landscape

$1,000,000

40,000

$25/sqft

Lewis: Kiosks

$800,000

4-8 kiosk structures $1-200,000/kiosk

Total Hard Cost

$6,950,000

Total Construction Cost

$8,340,000


Lewis Mall + Maverick Square Landscape Operating Expenses

Income

Expenses ($100,000)

Parking Operations

($100,000)

Security

Parking Income

$399,602

($40,000)

Kiosk Maintenance

Kiosk Rent

$80,000

($20,000)

Replacement Reserve

Total:

$479,602

($260,000)


CLIPPERSHIP




Underground Parking 218,423 gross sf 500 Parking Spaces $250 monthly rent


Floors 1 - 8 488989 gross sf 1.6 FAR 500 Apartments 850 sf average unit size


Unit Breakdown 520 sf

$1995 $3.84 psf

50% 1 Bedroom 680 sf

$2195 $3.23 psf

15% Studio

35% 2 Bedroom 1070 sf $3145 $2.97 psf



Financial Assumptions Clippership Wharf

Aquisition Costs Total Cost Cost per Unit

$10,000,000 $187,581,008 $375,162

Equity Required

$56,274,303

Abatement Term

30 years (w/ escalation)

Yr 1 Abatement Savings Tax Rate Yr 1 with Abatement

$1,412,300 0.33%


Tax Abatement Strategy Clippership Wharf

Tax payment with no development Full tax on development Tax with abatement on development

Residential Property Tax Abatement amount Abatement term Year one tax rate with abatement

Year one

Over 30 year term

$ 22,014

$ 660,442

$ 1,880,677

$ 56,420,324

$ 470,169

$ 34,619,898

1.314% 75% of full tax 30 years (escalating) 0.33%

61%

of full taxes will be paid over the 30 year term


Returns Clippership Wharf

No Subsidy

With Property Tax Abatement

ROTA first stabilized year

5.1%

5.9%

Unlevered IRR

5.6%

8.3%

Levered IRR

8.3%

15.1%


Regulatory Compliance


Variance: Ground Floor Use Chapter 91 Requirement:

- Public / Maritime Use on Ground Floor

Amount: 18,000 nsf (base case)


Ground Floor Use Chapter 91 Requirement:

- Public / Maritime Use on Ground Floor

Variance: 18,000 nsf Offset: Maverick / Lewis

- $8.3m investment in Public Domain

- 4,000 nsf in Lewis Mall

- 16,400 nsf reconstructed in Maverick

- 38,800 nsf new building in Maverick

Amount: 59,500 nsf


Height Restrictions: Zoning Requirement:

- All height is 35’ or 3 stories.

Chapter 91 Requirement:

- 55’ within 100’ of waterline

- Then 1’ height for every 2’ back

Variance: 67,000 gsf


Height Restrictions: Zoning Requirement:

- All height is 35’ or 3 stories.

Chapter 91 Requirement:

- 55’ within 100’ of waterline

- Then 1’ height for every 2’ back

Variance: 67,000 gsf Offset: Unbuilt Floor Area The same amount of floor area within the height requirements would create a monolithic block and limit access to the waterfront.

Offset: 84,000 gsf


Waterfront Set Back Chapter 91 Requirement:

- Ends of piers: 100’

- Sides of peirs: Lessor of 50’ or 15%

Variance: 26,000 gsf


Variance: Waterfront Set Back Chapter 91 Requirement:

- Ends of piers: 100’

- Sides of peirs: Lessor of 50’ or 15%

Amount: 26,000 gsf Offset: Extra Open Space - Extra open space along waterfront - Maximum lot coverage:

50%

- Actual lot coverage:

28%

Amount: 66,000 sf over minimum


Watersheet Activation Chapter 91 Requirement:

- Facility that generates water

dependent activity

Provided:

- Kayak launch, fishing pier, wave organ.

Variance: None







$218,321,682

$55,921,188 $31,917,724 $2,234,241

Maverick

Clippership


Total Cost

Equity

Unlevered IRR

Levered IRR

$31,917,724

$2,234,241

7.2%

21.0%

Clippership

$186,403,958

$55,921,188

8.3%

15.3%

Total Development

$218,321,682

$58,155,428

8.2%

15.4%

Maverick


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