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