Proposal for the Redevelopment of West Atlantic Avenue Properties
In response to: Request for Proposals CRA Project No. CRA2013-06 REISSUED
Submitted by: Equity Enterprises USA August 13, 2013
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
TABLE OF CONTENTS
TAB 1
Executive Summary and Redevelopment Area Map
TAB 2
Site Usage
TAB 3
Conceptual Site Plan and Elevations
TAB 4
Basic Floor Plans
TAB 5
Proposed Offering Price
TAB 6
CRA Incentive Programs
TAB 7
Inclusion of Additional Properties
TAB 8
Time Schedule
TAB 9
Cost Analysis
TAB 10
Preliminary Operating Pro Forma
TAB 11
Financing Plan
TAB 12
About Equity Enterprises USA
TAB 13
Legal organizational structure
Principals, partners, officers
Relevant experience
Professional references
Availability of current financial statement
Legal or administrative actions
Appendix A: Delray Beach Rental Market Opinion Letter Acknowledgement of Addendum No. 1 Requested Forms:
Acknowledgement Letter Authorization for Release of Information
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
DATE:
August 13, 2013
TO:
Delray Beach Community Redevelopment Agency 20 North Swinton Avenue Delray Beach, Florida 33444
FROM:
Equity Enterprises USA Inc., a subsidiary of Equity Properties 5100 PGA Blvd., Suite 301 Palm Beach Gardens, FL 33418
RE:
CRA Project No.: CRA2013-06 Request for Proposals, West Atlantic Avenue Properties (REISSUED)
EXECUTIVE SUMMARY With the economy on the rebound, a brand-name hotel coming soon, and a welcoming Gateway Feature in place, the time is right for redeveloping Delray Beach’s West Atlantic Avenue corridor. Residents of the city’s western neighborhoods are asking for shops and retail services within walking distance. Businesses are looking for Class A office space near I-95. Local teachers, firefighters, and other middle-income wage earners are clamoring for workforce housing, while Delray Beach newcomers seek housing options in an expanded downtown area. The attached plan proposed by Equity Enterprises USA serves all of these groups, and more. It employs local people, develops vacant land, and unified east and west in a visually compelling way. We believe it will be a catalyst for future redevelopment and investment in the West Atlantic community. CAPABLE TEAM Before we outline our plan, allow us to introduce ourselves. We are a subsidiary of Equity Properties, a Dublin, Ireland-based company with a 40-year history of successful property development and redevelopment in Ireland, the UK, and Germany. Equity Enterprises USA Inc. now is actively involved in South Florida. Our firm has the proven capability to deliver this project. We are particularly adept at creating high quality projects in emerging redevelopment areas. Two relevant project examples from our portfolio include the Smithfield Market—the largest private mixed-use development ever undertaken in Dublin City, at the heart of Dublin’s HARP (Historic Area Rejuvenation Project) initiative—and the residential project known as Forbes Quay, providing 1, 2, and 3-bedroom apartments in Grand Canal Square. We invite you to further explore our project experience in Tab 12 of this proposal. We are joined in this endeavor by an award-winning local architecture firm and a highly regarded local General Contractor. Currie Sowards Aguila Architects, founded in Delray Beach 44 years ago by Bob Currie, FAIA, designed this project with a deep understanding of the city’s history, urban development needs, and design preferences. Our builder, Randolph & Dewdney Construction, is an African American-owned, Delray Beach-based organization with more than 65 years of collective
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
experience in the construction industry. Our team will employ local people throughout the project, from architects and engineers to construction supervisors and laborers. PROJECT OVERVIEW Our single-phased project consists of three mixed-use buildings fronting on West Atlantic Avenue and two clusters of townhouse-style apartments behind them. In all, we are proposing more than 43,000 square feet of retail space, more than 34,000 square feet of Class A office space, and two distinctly different types of rental housing. The buildings facing West Atlantic Avenue are 21st century modern. All three sites offer ground-floor retail space to service the neighborhood as well as visitors and tourists staying in the Fairfield Inn. All three have arcades that shade the sidewalk, promote pedestrian friendliness, and support al fresco dining. With balconies overlooking West Atlantic Avenue, these buildings provide “eyes on the street” for increased safety and security.
The westernmost building has two floors of Class “A” office space above the ground-floor retail and a large public parking lot in the rear. The other two buildings feature rental apartments on the upper levels. The building in the center has a rooftop pool to be shared by all apartment dwellers. It also provides covered public parking in a garage beneath the building. Townhome-style apartments designed with a Key West character occupy the parcels behind our mixed use buildings. These buildings have ground floor ADAaccessible units (1, 2 and 3-bedroom floor plans) with 2story units above. Each apartment has its own entry and dedicated parking in a gated lot adjacent to the buildings. Tenants enter these apartments from side streets (SW 6th Avenue, SW 7th Avenue, and SW 8th Avenue). We intend to set aside at least 20 percent of the apartments—both the modern and the Key West- style units— for below-market-rate workforce housing. This represents 75 percent more workforce housing than this development would be required to provide per the City of Delray Beach’s Land Development Regulations (LDR). Furthermore, we intend to act as property managers for the apartment buildings, committing our firm to a longterm presence in the West Atlantic neighborhood.
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
PARKING We have calculated, per LDR requirements, that our development needs 444 parking spaces to accommodate the various uses (retail, office, residential). Our plan, which includes adjacent on-street parking, provides a total of 458 spaces—14 more public spaces than are required by the LDR. Using the LDR’s “fee in-lieu of” parking space calculation for the West Atlantic Neighborhood ($4,000 per space), those 14 spaces amount to a contribution of $56,000 to the City. Of the 458 total parking spaces, 324 are for public and employee use, and 134 are dedicated residential spaces in gated lots. Our plan provides enough parking to allow for one-quarter of all retail square footage to be restaurant use. JOB CREATION/RETENTION Based on employment projection formulas used by PMG Associates to measure the economic impact of recent CRA development proposals, our development will bring an estimated 260 Full Time Equivalent (FTE) jobs to the West Atlantic corridor. Our 34,074 square feet of office space will support an estimated 136 FTE jobs (1 employee per each 250 square feet) while our 43,638 square feet of retail space will support an estimated 124 FTE jobs (1 employee per 350 square feet). Acknowledging that retail and food service businesses tend to employ more part-time than full-time workers, the total number of jobs created is likely to exceed 260. Regarding job retention, we are offering an opportunity to relocate displaced businesses from the property at 700 West Atlantic Avenue. Finally, we are not asking for any incentives, loans or special financing. We are proposing simply to purchase these underutilized sites over a 5-year period and redevelop them to benefit the community. The mixed-use buildings will provide retail to serve not only the surrounding neighborhood, but the entire city and its visitors as well. Three of the four proposed buildings will provide workforce housing opportunities for the community and create local jobs—both during the construction phase and through the placement of future retail businesses. We are eager to hear your response to this proposal, and to meet with the CRA Board to further discuss our mutual goals and your vision for this emerging section of the community. Sincerely,
John Flynn Managing Director, Equity Enterprises USA Inc. Office: 561-909-1601 / Cell: 561-389-1428 / Flynn.John4@gmail.com
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
REDEVELOPMENT AREA MAP
700 W. ATLANTIC
LOTS 1-8
AVENUE
LOTS 9-14 17 SW 8TH AVENUE
REDEVELOPMENT SITE AREA:
Inclusion of all offered parcels:
Lots 1-8 Lots 9-14 Lots 15-24 700 W. Atlantic Avenue
Alley between lots 1 and 8 (in yellow)
17 SW 8th Avenue (PCN # 124346170200500140) Offer placed on property, currently in negotiations (shown in yellow)
LOTS 15-24
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
SITE USAGE
BUILDING A
BUILDING C BUILDING B
PARKING GARAGE
TOWNHOUSE A AND B
LOT ONE: 17,660 Sq Ft ground floor retail 34,074 Sq Ft 2nd and 3rd floor office space 149 space parking garage
LOT TWO: 10,505 Sq Ft ground floor retail (32) 2nd and 3rd floor apartments (14) ADA ground floor units (18) 2 story townhouse style units
TOWNHOUSE C AND D
LOT THREE: 15,473 Sq Ft ground floor retail (33) 2nd, 3rd and 4th floor apartments (14) ADA ground floor units (18) 2 story townhouse style units
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL SITE PLAN
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL RENDERING BUILDING A - 800 BLOCK
BUILDING FEATURES:
17,660 Sq Ft ground floor retail, 1/4 allotted for restaurant use Minimum 10 foot wide pedestrian friendly arcade to promote neighborhood serving businesses
17,200 Sq Ft 2nd story large floor plate Class “A” office space
16,800 Sq Ft 3rd story large floor plate Class “A” office space convertible to executive suites based on demand
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL RENDERING BUILDING B - 700 BLOCK
BUILDING FEATURES:
(8) 1 bedroom apartments
(24) 2 bedroom apartments
2nd story secure community pool and amenity area
49 space covered parking open to the public
10,505 Sq Ft ground floor retail, with opportunities to relocated existing businesses Public plaza creates an attractive entrance to the apartments above and provides an opportunity for outside dinning
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL RENDERING BUILDING C - 600 BLOCK
BUILDING FEATURES:
15,473 Sq Ft ground floor retail for neighborhood serving businesses Florida Contemporary style building designed to meet the City’s vision for West Atlantic Neighborhood
Balconies overlooking West Atlantic Avenue highlights the benefits of urban living
(9) 1 bedroom apartments
(18) 2 bedroom apartments
(6) 3 bedroom apartments
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL RENDERING TOWNHOUSE STYLE APARTMENTS
BUILDING FEATURES:
(20) 1 bedroom, (4) 2 bedroom, and (4) 3 bedroom ground floor ADA compliant apartments with individual entries off parking area (36) 2 story, 2 bedroom 2-1/2 bath townhouse style units on 2nd and 3rd floor
Shared porch entries facing 6th, 7th and 8th avenues to provide “eyes” on the street security
134 secure parking spaces dedicated to residents in gated lots
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL ELEVATIONS
BUILDING A ELEVATION (WEST ATLANTIC AVENUE)
BUILDING B ELEVATION (WEST ATLANTIC AVENUE) STREETSCAPE FEATURES:
Wide covered pedestrian arcades serving ground level retail creating unity (similar to East Atlantic Avenue) Shaded exterior courtyard suitable for outdoor dining
23 on-street parking spaces on West Atlantic Avenue
Balconies overlooking West Atlantic Avenue, enlivening the gateway to Delray Beach
21st century Florida modern design aesthetic
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CONCEPTUAL ELEVATIONS
BUILDING C ELEVATION (WEST ATLANTIC AVENUE)
TOWNHOUSE SIDE ELEVATION
TOWNHOUSE STREET ELEVATION
BUILDING C:
TOWNHOUSE STYLE APARTMENTS:
Shaded sidewalks serving ground floor retail provide a comfortable shopping experience
New on-street parking spaces lining SW 6th Avenue, SW 7th Avenue, and SW 8th Avenue.
Porches overlooking SW 6th, 7th and 8th Avenues provide neighborhood connectivity and “eyes on the street” security.
Florida traditional design (Key West character) to transition into existing neighborhood
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING A – FIRST FLOOR PLAN
BUILDING AMENITIES:
10-foot-wide minimum arcaded entries on West Atlantic Avenue
15 foot first floor height
Prime location across the street from future Fairfield Inn
Direct access to 149-space public access Parking structure
Ground floor office lobby entrance from garage
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING A – SECOND FLOOR PLAN
BUILDING AMENITIES:
Large floor plate open Class “A” office space
Direct access to 2nd level of parking garage
North facing floor to ceiling windows to bring in natural light
Location next to future hotel convenient for business travelers
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING A – THIRD FLOOR PLAN
BUILDING AMENITIES:
Large floor plate open Class “A” office space
Convertible to executive suite office plan as dictated by demand
Balconies to provide modern office amenities
Low-e impact resistant windows and white roof to reduce heat gain and energy use
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING B – FIRST FLOOR PLAN
BUILDING AMENITIES:
15-foot first floor height
49-space covered parking
Ground floor lobby access to apartments above through courtyard entry or from parking area
10-foot-wide minimum arcaded entries on West Atlantic Avenue Public plaza/courtyard entry with additional retail frontage and outdoor dining opportunities
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING B – SECOND/THIRD FLOOR PLAN
BUILDING AMENITIES:
Upgraded kitchens with granite counters in all units
Tile and wood laminate floors throughout
Private balconies on all units
Secure, 2nd-story open air community amenity area with swimming pool, restrooms and community room
Low-e impact resistant windows and white roof to reduce heat gain and energy use
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING C – FIRST FLOOR PLAN
BUILDING AMENITIES:
Loading zones at rear of building
10-foot-wide minimum arcaded entries on West Atlantic Avenue
Floor-to-ceiling glass storefront for visually enticing retail displays
15-foot first floor height
Parking at rear of building
Secure, resident-only ground floor lobby for apartments
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
BUILDING C – SECOND/THIRD/FOURTH FLOOR PLAN
BUILDING AMENITIES:
Community room on each level
Upgraded kitchens with granite counters in all units
Low-e impact resistant windows and white roof to reduce heat gain and energy use
Tile and wood laminate floors throughout
Private balconies on all units
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
TOWNHOUSE STYLE APARTMENTS—GROUND FLOOR PLAN
BUILDING AMENITIES:
Private covered entries with direct access from secure parking lot
Upgraded kitchens with breakfast bar and granite counters
Tile and wood laminate floors throughout
Private covered patios on all units
1, 2 and 3 bedroom ADA/ Fair Housing compliant units
Low-e impact resistant windows and white roof to reduce heat gain and energy use
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
TOWNHOUSE STYLE APARTMENTS—SECOND FLOOR PLAN
BUILDING AMENITIES:
Private balconies on every unit
2 bedroom, 2 1/2 bath units
Walk-up units with shared 2nd-story porch overlooking SW 6th, 7th, and 8th Avenues.
Upgraded kitchens with breakfast bar and granite counter
Tile and wood laminate floors throughout
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
TOWNHOUSE STYLE APARTMENTS—THIRD FLOOR PLAN
BUILDING AMENITIES:
2 bedroom, 2 bath second story
Washer and dryer hook up in every unit
Low-e impact windows and white roof to reduce heat gain and energy use
Florida traditional design (Key West style) with Bahama shutters
Concrete block construction, impact resistant windows and standing seam metal roof for added hurricane hardening
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
PROPOSED OFFERING PRICE Equity Enterprises USA Inc. proposes to buy the property for $1 million cash. The payments would be made in six increments according to this schedule: $47,600 upon completion of construction $95,200 after the 1st year of operations $142,800 after the 2nd year of operations $190,500 after the 3rd year of operations $238,200 after the 4th year of operations $285,700 after the 5th year of operations TOTAL
$1,000,000
We will compensate for the difference between our offer and the appraised market value by providing a host of benefits to the City and local community. These benefits include:
Jobs for local workers. Based on employment projection formulas used by PMG Associates to measure the economic impact of recent CRA proposals, we estimate that our development will create 260 Full Time Equivalent jobs: 136 office worker jobs and 124 retail jobs. Local spending by these workers will create an economic ripple effect for Delray Beach. According to a 2012 report entitled “Office Worker Retail Spending in a Digital Age,” office workers spend about $102 per week in the vicinity of their office building. Using that figure as a guide, we can estimate that 136 office workers would spend $721,344 per year in stores, restaurants and bars in Delray Beach. The same report found that clerical and administrative workers spend about $57 per week in close proximity to their workplace. Assuming that retail employees earn similar wages as clerical and administrative workers, we can estimate that our 124 retail workers would spend approximately $367,536 per year in the vicinity of their workplaces. Our project also would employ hundreds of construction workers for the duration of construction (18 months). Our General Contractor, Delray Beach-based Randolph & Dewdney Construction Inc., is a company that is committed to the community, “understanding that helping the disadvantaged, whether through hiring or community involvement, would pave the way for the company to reach its goal as an icon in the industry.”
Needed workforce housing for Delray Beach firefighters, police officers, teachers, and other middle-income citizens. We intend to set aside at least 20 percent of the apartments (in both the modern and the Key West-style buildings) for workforce housing. This represents 75 percent more workforce housing than this development would be required to provide per the City’s LDRs.
Retail services to meet the day-to-day needs of West Atlantic neighborhood residents. These retail services could include a food market, dry cleaner, restaurant, etc., and would be within walking distance of many homes.
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
324 free public parking spaces. That’s 14 more public parking spaces than are required by the LDR, with a value to the City of $56,000 (calculated using the LDR’s “fee in-lieu of” parking space calculation for the West Atlantic Neighborhood of $4,000 per space).
Increased tax revenue for the City of Delray Beach through the development of underutilized and vacant land.
A boost in safety and a feeling of security for visitors to the West Atlantic corridor by attracting more pedestrian traffic and “eyes on the street.”
Attractive buildings fronting Atlantic Avenue to help “fill the gaps” and enliven West Atlantic Avenue. Visitors arriving from Interstate 95 will notice a new energy in Delray Beach.
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
CRA INCENTIVE PROGRAMS
No CRA incentives are requested at this time.
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
INCLUSION OF ADDITIONAL PROPERTIES We have placed an offer on the property at 17 SW 8th Avenue (PCN # 124346170200500140). We are currently in negotiations with the seller. If our efforts to buy this parcel are not productive, the alternative design shown below will be substituted for that area.
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
TIME SCHEDULE
Purchase and planning period:
From selection through March 2015
The purchase and planning phase includes Design of the development; Planning and Zoning and SPRAB review and approval of Conditional Use and Site Plan applications; and Building Department Review and issuance of Building Permit.
Construction period (single phase): April 2015 through October 2016 18 months to substantial completion 30 additional calendar days to final completion The construction period includes a single phased construction including all site work, parking, landscaping, building construction and on-street parking.
Leasing period:
To 1st quarter 2017
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
PROJECT COST
COSTS
General condi ons
Ancillary & Offsite builder's costs:
Building budget as per quota on a ached: Commercial fit out allowance @ $25 per sq. : Total hard costs: SoŌ costs Building permits Impact fees Architectural fees Engineering fees FPL transformers / service FPL line reloca on Sewers/H2O/fireline taps/fees/meters ATT/Comcast Soil borings/tes ng Concrete tes ng hazardous waste Unsuitable soil Signage Builders risk insurance
Ne cost of house & demoli on: TOTAL COSTS ex land/interest & O/H:
$350,000
Overheads, Legal & Accoun ng fees
$27,878,796
$1,942,800
$500,000
TOTAL COSTS EXCLUDING LAND
Interest Construc on Period Le ng period
$30,671,596
$4,181,819
$150,000
$35,003,415
$1,312,628 $875,085 $2,187,713
$1,750,171
$38,941,300
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
TEN YEAR OPERATING PRO FORMA
Delray West Atlantic Site ‐ 10 Year stabilized operating rental pro forma Amortization Model
STABILIZED OPERATING PRO FORMA INCOME Residential Retail Office
2017
2018
2019
2020
2021
2022
2023
2024
2025
2,081,400 1,090,950 613,332
2,143,842 1,123,679 631,732
2,208,157 1,157,389 650,684
2,274,402 1,192,111 670,204
2,342,634 1,227,874 690,311
2,412,913 1,264,710 711,020
2,485,300 1,302,651 732,350
2,559,859 1,341,731 754,321
2,636,655 1,381,983 776,951
2,715,755 1,423,442 800,259
GROSS POTENTIAL RENT
3,785,682
3,899,252
4,016,230
4,136,717
4,260,818
4,388,643
4,520,302
4,655,911
4,795,589
4,939,456
Less: Vacancy & Collection Losses
(1,320,011)
(570,011)
(120,011)
(123,611)
(127,320)
(131,139)
(135,074)
(139,126)
(143,300)
(147,599)
Less: Operating Expenses
(389,193)
(400,869)
(412,895)
(425,282)
(438,040)
(451,181)
(464,717)
(478,658)
(493,018)
(507,809)
Less: Management, Taxes, Reserves
(509,550)
(524,837)
(540,582)
(556,799)
(573,503)
(590,708)
(608,429)
(626,682)
(645,483)
(664,847)
NET OPERATING INCOME AMORTIZATION
1,566,928
2,403,536
2,942,742
3,031,025
3,121,956
3,215,614
3,312,083
3,411,445
3,513,788
3,619,202
$38,941,300
(1,557,652)
(1,466,477)
(1,466,477)
(1,466,477)
(1,466,477)
(1,466,477)
(1,466,477)
(1,466,477)
(1,466,477)
(1,466,477)
9,276
937,059
1,476,265
1,564,548
1,655,478
1,749,137
1,845,606
1,944,968
2,047,311
2,152,725
Less Interest at 4% on capital cost of : Capital Surplus before tax
Cumulative Surplus before tax
2026
9,276
946,335
2,422,600
3,987,148
5,642,627
7,391,764
9,237,369
11,182,337
13,229,649
15,382,374
Vacancy loss of $1.2 million on rental income in 2016 before stabilization
Vacancy loss of $450,000 on rental income in 2017 before stabilization
Rental growth of 3% per annum Operating & other expenses increase at 3% per annum
NB: Model Assumes:
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
FINANCING PLAN
To fund the project, we intend to obtain a mortgage loan from Wells Fargo Bank, which has expressed interest in future lending opportunities with our company (see letter, next page).
We are confident in our ability to obtain financing, as attested to by Gunster, Yoakley & Stewart, P.A. (see letter to follow).
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
ABOUT EQUITY ENTERPRISES USA Equity Enterprises USA is a member of the Equity Properties Group, a property development and investment company operating out of Ireland and the United Kingdom that has made significant investments in leisure, retail, residential, hotel, offices, healthcare, and warehousing development. Equity Properties is owned by the Flynn family, respected and recognized commercial property developers, owners and managers in the Ireland, UK and German markets, with a history of over 40 years in the business. Equity Enterprises USA is headquartered in Palm Beach Gardens, Florida. It began operations at the end of 2012 in order to offer the following in the United States:
Property refurbishment Property redevelopment Property development and investment
Description of Services Equity Enterprises USA seeks a range of property development and investment opportunities in the South Florida market, with intent to expand into new development as the market for real estate and property development continues to improve. The Company seeks to specialize in property development within the IT sector of the economy, continuing the work done by Equity Properties. Recently the Equity Properties Group has completed construction of a 100,000-square-foot cloud computing facility for Amazon, a new 75,000-square-foot headquarters for the Bank of Ireland, and a new European call center for Sky News, an affiliate of Fox News. The company’s clients include:
Adobe Microsoft Hewlett Packard Verizon Amazon CIT The Hartford Medtronics Prudential Moody’s AM Best Bank of Ireland
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
Air France Bank of New York Mellon University College, Dublin Allied Irish Bank Vanquis Bank Hilton Hotel Group Clarion Hotel Group The Government of Ireland Sky Broadcasting Doosan Group, South Korea
The Flynn family and Equity Properties have an excellent construction, leasing and management track record, and have played an active role in all aspects of the management and development process, including design, legal, marketing, construction, cost control and banking. The Flynns have had long standing working histories with a number of leading institutions and funds including the Irish Pension Fund Property Unit Trust, Canada Life, Investment Bank of Ireland, Irish Life, University College Dublin and Allied Irish Investment Managers. The family trades under the banner of Equity Properties and a list of their current projects can be viewed at www.equityproperties.ie.
Property Investment & Management The family has a particular expertise in the commercial sector and has been responsible for the leasing over a million square feet of space since the beginning of 2009. Deals completed this year include leasings to Paddy Power (150,000 sq.ft.), Inflight, Spencer Stuart and Des Kelly Interiors. Terms have been agreed to on a further 100,000 square feet and, at present, these are with lawyers to progress to contract stage.
Equity Properties Structure The Board
Administration
IT
Finance
Project Management
Estate Management
Design
SPVs
SPVs
SPVs
SPVs
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
EQUITY PROPERTIES AND AFFILIATES OPERATIONAL STRUCTURE The Company operates on a highly efficient basis through the utilization of a combination of full time employees, dedicated contract specialists, and task/job specific contractors with whom the company has maintained relationships for decades. During times of project development, the number of personnel engaged typically increases significantly to meet project term needs, but during non-peak periods, the personnel noted on the pages to follow support the operation. Key members of the management team are as follows: John Flynn, Sr. John Flynn Sr. qualified as a quantity surveyor in 1964. His career in property included positions as Development Manager with a prominent Irish homebuilding company and Chief Surveyor with a large UK Property & Construction PLC. He subsequently became CEO of their overseas division. He returned to Ireland in 1972 and formed the family company. John is effectively Chairman of the Flynn family business. In the early 1990s, he took a 4-year sabbatical from the company to found and lead the Writs Response Group where, following substantial losses at Lloyd’s of London, he recruited and subsequently represented 3,500 investors in a successful legal action that achieved a negotiated settlement of £3.2 billion on behalf of all market participants. It was the largest “class action” distribution ever achieved under European law. John advises on project development and asset maximization and plays a vital role in terms of the strategic decision making process. James Flynn James Flynn qualified from University College Dublin with a Bachelor of Commerce degree in 1988. Since then he has been involved in the family property business. James is CEO of the family business and is fully engaged in every aspect of the day to day operations of managing the Flynn portfolio. He has a personal relationship with most of the tenants since he was heavily involved in most of the lease negotiations. James has a complete understanding of every aspect of property development from site acquisition through planning and on to construction and marketing. John Flynn Jr John Flynn Jr. has been involved in the property business for twenty years. He has experience in all aspects of the business from site acquisition through to design and disposal. John spearheads Equity’s property development and asset management in the UK and Europe and is presently engaged in discussions with overseas banks and funds regarding various recapitalization and disposal options for the group’s European property portfolio. Since January 2013, he has been pursuing options relating to new investment and development opportunities in the U.S. Elaine Flynn Elaine Flynn has an Honors LLB degree (Law) from the University of London. She graduated in 1996 and has counseled Equity Properties in-house on legal issues since. Elaine follows up and advises on all legal contracts and leases on a day-to-day basis. She instructs the various corporate lawyers and organizes the group’s strategic review meetings. She is responsible for liaising with managing agents,
PROPOSAL FOR WEST ATLANTIC PROPERTIES — CRA2013-06 REISSUED
dealing with the legal aspects of ongoing rent review issues and rent collection disputes and settling or litigating all legal conflict issues that arise. Peter Wilson Peter holds Honors Degrees in Economics and Sociology from UCC together with an Honors Diploma in Property Economics from DIT and an Honors Bachelor of Science Degree in Surveying from Trinity College Dublin. Peter joined Equity Properties in 2004 having previously worked in the commercial property sector for a major European realtor. Peter has extensive experience in asset and development management across all sectors of commercial and residential property. He has successfully completed numerous developments from inception and continues to be a key employee in maximizing the investment value of assets within the group network and on behalf of the associated partners. Joseph Wright MSCS MRICS Joseph Wright is a qualified Chartered Surveyor being a full member of the Society of Chartered Surveyors Ireland and The Royal Institute of Chartered Surveyors. Joseph joined Equity Properties in 2009 having previously dealt in the Hotel & Licensed, Professional Services and Agency sectors at CBRE. Joseph has vast experience in the commercial property market including sales, leasings, acquisitions, valuations and rent reviews. He plays a key role in continuing to manage existing occupiers and developments, increasing income and adding value within the portfolio.
Equity Properties Board James Flynn (Managing Director)
John Flynn Snr. (Chairman)
John Flynn Jnr (European Director)
Peter Wilson (Director of China Opportunities & Head of Office Division)
Joe Wright (Marketing Director & Head of Industrial Division)
Elaine Flynn (Legal Director)
Philip Dinkel (Director of UK Operations)
AFFILIATED
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TEAM MEMBERS
DESIGN Dermot Hogan (Consultant Quantity Surveyor): Dermot.J.Hogan F.R.I.C.S ,S.C.S.I, Dip Proj. Mang. is a Chartered Quantity Surveyor, a Fellow of the Royal Institute of Chartered Surveyors, a Fellow of the Society of Chartered Surveyors Ireland, and also holds a Diploma in Project Management from Trinity College Dublin. He has more than 30 years of experience on a wide range of construction projects ranging up to €150 million. He is a partner/director in the firm of Joseph. C. Hogan & Sons and was lead partner in charge of many high profile projects in Ireland for us.
Currie Sowards Aguila Architects (Consultant Architect) Currie Sowards Aguila Architects provides architecture, planning, interior design, and sustainable design services from the company’s home office in Delray Beach, Florida.
Their award-winning work can be seen throughout the South Florida landscape—in multi-family housing, retail centers, public buildings, private clubs, hotels, bridges, parks, theaters, fire stations, houses of worship, and historic restoration projects. Over the years, their projects also have included U.S. Embassy commissions in China, Cyprus, Jordan, and Spain and hotel commissions in both the U.S. and the Middle East. In business for more than 40 years, the company is dedicated to exceptional customer service, committed to elevating design standards, and focused on providing the community with special places to live, work, and play. They have won more than 60 design awards. In 2000, Currie Sowards Aguila Architects was honored with the statewide Firm of the Year Award from the Florida Association of the American Institute of Architects.
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EQUITY PROPERTIES RELEVANT PROJECTS
Of ice Developments Belfield Office Park, Dublin 4
Belfield Office park is a 350,000 sq. office development constructed in 1995. Occupiers include Ericsson, Vodafone, OPW, Paddy Power, UCD and Skillso .
Sir John Rogerson’s Quay, Dublin 2
This is a 160,000 sq. . office building with views directly over the river Liffey. Located in Dublin’s new CBD, the building is fully let as their corporate headquarters building. Pres gious fourth genera on 240,000 sq. office building. Part of this development will house Bank of Irelands new headquarters. Nego a ons are underway for a further 50,000 sq. . The Apex Business Centre is a 65,000 sq. office development in Sandyford, Co. Dublin providing suites in sizes ranging from 1,000 to 4,000 sq. . It was the first me that this type of office accommoda on had been provided in the Irish marketplace. Riverside II is a commercial development of 85,000 sq. . It is a new genera on of office building, using an environmentally friendly cooling and hea ng system. It is fully let to Beauchamps Solicitors and Bank Mellon New York.
Burlington Plaza, Dublin 4
Apex Business Centre, Sandyford, Co. Dublin
Riverside II, Dublin 2
Chiswick High Road, London Blackrock Business Park,
21,000 sq. of third genera on offices in one of London’s most pres gious suburbs let to Harvey Nichols. Blackrock Business Park is a 100,000 sq. office park in the heart of Blackrock in South County Dublin. Development commenced on a phased basis since the mid 90’s. Occupiers include CIT, MasterCard, Skill Pages, Fin CAD, Euler Hermes and IPSOS.
Arthur Street
Whitaker Court is a 50,000 sq. . 3rd genera on office block in Dublin’s south docks. This office development provides 107,000 sq. in a core City of London loca on. It has been completed and is now fully let. Tenants include The Pruden al and Moody’s.
Windsor Place, Dublin 2
50,000 sq. . own-door office development off Pembroke Street, Dublin 2.
Sandyford Office Park
26 own door office units ranging in size from 1,000 sq. . to 4,000 sq. .
Sandyford Business Centre Na onal Children’s Hospital Site, 87/88 Harcourt St, D.2
B1 office development, first of its type in the country. Joint venture with Investment Bank of Ireland. 50,000 sq. . office redevelopment of the Na onal Children’s Hospital on Harcourt Street, Dublin 2.
Arena House, Sandyford
Office development, 50,000 sq. . (in two blocks)
Whitaker Court, Dublin 2
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Retail Developments Ashbourne Retail Park
A retail warehouse park of 192,000 sq. ., in Ashbourne, Co. Meath, currently accommoda ng Show me cinemas, Buylo (a discount food retailer), Des Kelly Interiors, Argos, etc.
Belgard Retail Park
A 123,000 sq. . retail park, considered to be one of the top five retail parks in the country. Tenants include, B&Q, Halfords, Mothercare, Homestore and More, CarpetRight and Burger King.
Smithfield Market, Dublin 7
The redevelopment of Smithfield Market was the largest private mixed-use development ever undertaken in Dublin City totaling one million sq. . It included a 100 bed hotel, 120,000 sq. . offices, 70,000 sq. . retail, a 4 acre mul story underground car park and 561 apartments.
Lighthouse Cinema
The Light House Cinema is a four-screen, 600-seat art house cinema.
Equity Properties has helped secure inward investment to Ireland by constructing and leasing facilities to companies such as Microsoft, Verizon, Adobe, and Amazon. The company was the first to initiate the concept of ‘B1’ suburban office parks in Ireland; and was also the first to introduce retail warehousing to commuter areas near Dublin.
Industrial Developments AF1, IDA Business Park, Swords
Acquired from the IDA, this 11 acre site was purchased without any restric ve covenants regarding use. Currently let to Amazon to house its cloud computer servers for its European and the Middle Eastern opera ons.
Port Tunnel Business Park
Port Tunnel Business Park comprises 22 duplex incubator offices and 45 enterprise units (first me buyer industrial units).
Dublin 17 Damastown Industrial
Warehousing development.
Healthcare Developments The Blackrock Clinic Blackrock, Co. Dublin Hermitage Clinic Liffey Valley, Co. Dublin.
The Flynns purchased a shareholding in the Blackrock Clinic from BUPA. The Blackrock Clinic is Ireland’s leading private hospital. Since the share purchase, the hospital has The Hermitage Clinic is the first ‘state of the art’ hospital in West Dublin and caters for up to 25,000 procedures annually.
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Industrial Developments AF1, IDA Business Park, Swords Dublin 17 Port Tunnel Business Park Dublin 17 Damastown Industrial Park
Acquired from the IDA, this 11 acre site was purchased without any restric ve covenants regarding use. Currently let to Amazon to house its cloud computer servers for its European and the Middle Eastern opera ons. Port Tunnel Business Park comprises 22 duplex incubator offices and 45 enterprise units (first me buyer industrial units). Warehousing development.
Healthcare Developments The Blackrock Clinic Blackrock, Co. Dublin
The Flynns purchased a shareholding in the Blackrock Clinic from BUPA. The Blackrock Clinic is Ireland’s leading private hospital. Since the share purchase, the hospital has ini ated a €100 million expansion program which is nearing comple on.
Hermitage Clinic
The Hermitage Clinic is the first ‘state of the art’ hospital in West Dublin and caters for up to 25,000 procedures annually.
Liffey Valley, Co. Dublin.
Jones Lang LaSalle Limited Registered Office 10/11 Molesworth Street Dublin 2 Ireland tel: +353 1 673 1600 fax: +353 1 679 5147 DDE Box No. 56 e-mail: info.ie@eu.jll.com www.joneslanglasalle.ie Registered in Ireland: 285474 Directors: J P Moran S A Murray M M Fleming N R Healy D P Lennon P J Daly D T Costello L M McGrane F M O’Buachalla M G Miland M C Reilly A G McCracken Associate Directors: J Johnston C Moore M Mulholland G Ross M Synnott
Our ref:
DTC/cd
deirdre.costello@eu.jll.com
20 June, 2013
To Whom It May Concern Equity Properties We have worked with Equity Properties for many years on some of the most prestigious and successful property ventures in the greater Dublin Metropolitan Area. Office and Industrial developments such as Burlington Plaza, Swords Business Campus, Port Tunnel Business Park and the Amazon Data Centre have a combined total area of approximately 885,000 sq.ft. During our working relationship we have found Equity Properties to be innovative, honest and professional and have no hesitation in recommending them as one of the leading commercial property developers in Ireland. If you have any queries, please do not hesitate to contact me at the above number. Yours sincerely
Deirdre Costello
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CURRENT FINANCIAL STATEMENT A current financial statement for our firm is available for inspection at our office in Palm Beach Gardens, or can be obtained through our CPA. Equity Enterprises USA Inc. 5100 PGA Boulevard, Suite 301 Palm Beach Gardens, FL 33418 Phone: (561) 909-1601
Our CPA: Steven O’Halloran Broc Accounting Services Unit 11 Burnell Court Northern Cross, Malahide Rd. Dublin 17, Ireland Phone: +011 353 1 646 1632 Email: steven@broc.ie
LEGAL OR ADMINISTRATIVE ACTIONS, PAST OR PENDING There have been NO legal or administrative actions, past or pending, that might impact our capacity to complete the project. Our firm has NOT been involved in any bankruptcies, foreclosures or other legal actions, past or pending, during the past 10 years.
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ACKNOWLEDGEMENT OF ADDENDUM NO. 1
This is to acknowledge that we have seen and read Addendum No. 1 to Request for Proposals, West Atlantic Avenue Properties, CRA Project No. CRA2013-06 issued June 28, 2013.