Yasamin Enshaeian Jonah Guttman Yilin Li Guande Wu Yue Yan
1
EXECUTIVE SUMMARY
Vue at The Banks is a two phase mixed use project that will complement the final phases of The Banks riverfront development. The first phase of the planned unit development (PUD) will bring an abundance of high end mixed use facilities to the Downtown Cincinnati market. The development will consist of 335 Class-A residential multifamily units ranging in size from studios to two bedrooms, as well as over ninety thousand square feet of commercial and retail space. The site will create a destination that locals and tourists alike will enjoy that creates a sense of community and promotes active lifestyles within a downtown entertainment district. Eventually, once developed, this site will be considered a staple of the Downtown Cincinnati riverfront district, as well as a main focal point of the Cincinnati skyline. Located in the southwest corner of Downtown Cincinnati across from Paul Brown stadium, the site will be purchased from Hilltop Basic Resources, Inc. who are preparing to relocate their operations and facilities to another location along the Ohio River. The site is currently used by the company for its central aggregate distribution center. Hilltop specializes in the manufacturing and distribution of aggregates and concrete. The site is currently the prime terminal for the Cincinnati metro area in regards to distribution and manufacturing of ready mixed concrete. Hilltop Basic Resources Inc. would like to sell this property, to allow for further development of the Riverfront district that will allow commercial mixed use site appropriate to its new connection to downtown. The main parcels that are planned to be developed within the PUD are positioned between West Merhing Way and the Ohio River. To the west of the site is the Brent Spence Bridge, and to the east of the site is currently a surface parking lot owned by Hamilton County. There is currently a great deal of development activity located in the riverfront districts in downtown Cincinnati. Current trends are changing, and demographics indicate both the Baby Boomers and the Millennials generations are shifting away from the sprawling patterns of suburban development in favor of urban, mixed use lifestyles. Combined, these two demographic groups represent 47% of the total US population. This is further reflected in the 2013 ULI housing study which indicates 62% of Americans planning to move in the next five years would prefer to settle in mixed-use communities. The goal of Vue at The Banks is to create a mixed-use development that will meet the market demands in regards to retail, office, hospitality and market-rate housing.
2
We believe that our proposed development will be the best use for the identified parcels, and will create an environment that is consistent with current and future developments within the downtown area. Our design and proposed development will create a thriving neighbourhood district that is diverse, walkable, as well as well-designed and engaging. Phase one of Vue at The Banks will create a variety of jobs in the service industry, as well as high end housing that offers a variety of competitive advantages aside from being located in a mixed use district. Phase two of the development will generate an abundance of jobs with over half of a million square feet of retail and commercial space, as well as office towers that will house a local Fortune 500 company. Vue at The Banks recognizes the importance and visibility of this site, as the final piece in the rebirth of Cincinnati’s Downtown Riverfront. The design establishes a bold vision for the next-generations Gateway into the Queen City.
MARKET RESEARCH
Current Trends in Cincinnati CBD
Projections from the U.S. Census Bureau show steady population growth trends within the Cincinnati CBD at a rate of 86% from 2016-2021.
Population Until recently, the Cincinnati CBD has experienced a steady decrease in residential retention. Similar to many other cities in the Midwest market, the Cincinnati metropolitan area has experienced a trend of residents moving towards more suburban living areas outside of the city boundaries over the past decade. A reason behind this suburban migration and decrease in housing within the city market can be contributed to households wanting to relocate to more suburban areas where residents would be able to have more opportunities to find newer housing with more square footage at lower prices with larger lots, and families becoming drawn to the allure of higher rated suburban school districts.
Housing Demand & Demographic Analysis Factors that can have an influence on the housing demand can be broken down into four main categories. • 3) Demographic Trends: Are people currently relocat• 1) Desirability: Is the city considered to be a place ing to the city districts, if so which groups? Are millennial that people want to live? Are there local amenities (people between the ages of 25-34 years old) migrating and attractions that are able to support the deto the city? Are there individuals who have sources of mands and desires of inhabitants? large disposable incomes that want to live in the city, such as empty nesters? What are the age distributions, • 2) Economic Stability: If people are going to be incomes, and household compositions of the current relocating to the city, will they be able to find and residents in the market? secure good-paying jobs? Are there corporations and businesses that are located or interested in re- • 4) Type of Housing and Affordability: Are residents locating operations to the city? able to secure housing? Does the city offer housing options that are competitive on a local or even regional scale? Which residents are able to afford various types of housing within the city?
Total Housing Units Owner Renter Vacant
2010 Census Number Percent 11,256 100.0% 1,738 15.4% 6,253 55.6% 3,265 29.0%
Source: U.S. Census Bureau, Census 2010 Summary File 1.
2016 Number Percent 11,876 100.0% 1,649 13.9% 7,102 59.8% 3,125 26.3%
2021 Number Percent 12,342 100.0% 1,713 13.9% 7,544 61.1% 3,085 25.0%
Above is demographic data pertaining to the downtown Cincinnati housing market collected from the U.S. Census Bureau. The data consists of total housing units, as well as housing units types by occupancy within the Cincinnati Central Business District (CBD). The data shows the anticipated trend from 2010-2021.
2010 Total Population 2016 Total Population 2021 Total Population 2016‐2021 Annual Rate
16,397 17,717 18,495 0.86%
Recently, the Cincinnati CBD has been seeing a consistent rise in population growth. This means that the city need to assist in creating more opportunities for more real estate investments as demand continues to increase. Households have also been showing growth within the last five years as an annual rate of 1.13%. This increase in population and household growth has led to higher rate of growth in family size. A factor that should mean more demand for housing options. The annual rate of growth in family sizes is 0.71%. The demographics at Vue at The Banks will range vastly, however we anticipate to see a high volume of millennials and young professionals ranging in age from 25-34. Millennials and young professionals are the largest population demographic in the downtown Cincinnati market. The millennials and young professionals are more inclined to opt into renting due to tighter lending from banks, and the fact that many millennials are blighted with high amounts of student debt. Another factor that makes renting a good choice for millennials and young professionals is that they are more likely to have opportunities to go through a lifestyle change. The demographics at Vue at The Banks will range vastly, however we anticipate to see` a high volume of millennials and young professionals ranging in age from 25-34. Millenials and young professionals are the largest population demographic in the downtown Cincinnati market. The millennials and young professionals are more inclined to opt into renting due to tighter lending from banks, and the fact that many millennials are blighted with high amounts of student debt. Another factor that makes renting a good choice for millennials and young professionals is that they are more likely to have opportunities to go through a lifestyle change that would require them to relocate, which can be seen as a reason for renting in the Kingsley & Associates chart above. increase in
population and household growth has led to higher rate of growth in family size. A factor that should mean more demand for housing options. The annual rate of growth in family sizes is 0.71%. The median household values in income and per capita income increased from $39,047 and 36,492 respectively, to $42,265 and $39,721 respectively in 2021According to a 2016 report published by Kingsley & Associates on reasons for renting shows approximately 27% of individuals are choosing to rent because the option “suits their lifestyles.” Roughly 30% of individuals opt into renting because people may need to move “and renting offers more flexibility.” Around 9% of individuals
3
SITE ANALYSIS Environment
SWOT Analysis
Land Development Code
1
• Vehicular entry point to the city from Highways • • • • • The project site for Vue at the Banks is covered entirely by the FEMA 100 year flood plain. By being in the flood zone AE, all finished floors would have to be built above the Base Flood Elevation (BFE). In the project site, FEMA has identified the BFE being 497’, which is about 17’ above the lowest point of the site. Moreover, three bridges are crossing the project site. Among these bridges, the CSX railway bridge is required to have train horns whenever a train passes, which results in severe noise pollution to the entire project site.
Connectivity
The project site is currently zoned as industrial Mixed in the newly updated land development code of Cincinnati, which suites its current land use as a concrete plant. However, such land use code limits the sites possibility for being the future front door of the City of Cincinnati to the south and a contributing part of the Cincinnati skyline.
•
• •
Assets
• • • • • •
4
The project site has direct connection with the well-established Banks neighbourhood and Cincinnati Downtown. It also has river-crossing connection with the Main Street Business District in the City of Covington and the Licking River Historic District. Via the nicely design Ohio River Trail, users could also commute from the project site the Newport on the Leeve for entertainment and leisure purposes.
Being at a premium location in front of the Ohio River, the site has great views of the City of Covington skyline and the entertainment development: Newport on the Leeve. It also has direct passenger connection with the three sports venue in the east of the Banks neighbourhood. Users of the site can also reach the west side of Cincinnati downtown via Central Ave within 10 - 15 minutes of walking.
(I-71, I-75) Great location for a view to the river and riverfront activities Close to one of the main venue of the city: Paul Brown Stadium Contains a great collection of bridge structure Free of pre-existing building structure. The connection point between the downtown neighbourhood and city-west neighbourhoods. Has high visibility; therefore, it has high advertisement value for business tenants.
3
2
Strength • • • • •
Opportunity to adopt a piece of signature architecture for the Cincinnati gateway Opportunity to extend the current riverfront recreation Opportunity to introduce creative interaction with water Opportunity to connect the riverfront neighbourhood to city west Opportunity to density the current riverfront neighbourhood Opportunity to create a pedestrian connection to City of Covington, KY Opportunity to introduce active lifestyle to urban residents Removal of Brent Spence Bridge might free up a lot of developable land near the project site
Entire site located within the 100-year FEMA flood plain Noise pollution from highway and rail-line Brownfield cleanup required No direct vehicular entrance from the highway The end of current riverfront activity.
4
Opportunity •
• • • •
Weakness
Threat
Potential flooding threat, which requires streets and building structure with finished-floor to be built about Base Flood Elevation (BFE: 497’) Noise above 90 dBA from train horns might impact public health Industrial pollution to soil condition, which might cause pre-construction site clean fee Removal of the Brent Spence Bridge might cause the site to lose its premium gateway visibility The CSX bridge and C.W Bailey bridge easement disturbs parcel A right at the middle.
ZONING ANALYSIS
PUBLIC INVESTMENT: INFRASTRUCTURE
Cincinnati Land Development Code
Floodable Garage & Roadways
OVERVIEW Currently, City of Cincinnati is regulating the project site as Industrial Mixed district. Generally speaking, building forms in the IX district has larger foot print and lower building heights than the urban core to allow industrial uses to happen. However, the premium location of Vue at the Banks and its great accessibility to Cincinnati downtown suggests the project site should be included in the downtown area and have consistent building forms to achieve the project site’s highest and best use. As such, the team is proposing to change the IX zoning / landuse coding to T6 Urban Core and be included in the Banks PUD. Referring to the land development code, variation of FAR and building heights are applied to various district of Cincinnati’s urban core. After carefully considering the surrounding context, the team believes that: • FAR: 5 • Minimum Building Height: 530’ ASL should be applied to the project site.
OVERVIEW As it is mentioned in the site analysis, the entire site of Vue at the Banks are located within the 100 year flood plain. In order to develop the project site, public investment to raise the street Mehring way above the BFE is required similar to the roadway engineering of Current the Banks to enable future development. At the mean time, all the lots in the Vue at the Banks project site is going to be converted to 3D lots, which have two floors of floodable garage structure below street level to allow buildings structures to be above the BFE level. At the mean time, Central Ave is also going to be raised at its ends close to the project site to allow vehicular traffic to enter the parking garage.
https://s-media-cache-ak0.pinimg.com/736x/62/df/82/62df82fd865936cde9c8b2ebb2642a54.jpg
Downtown Land Development Code
5
PUBLIC INVESTMENT: INFRASTRUCTURE
Sound Barriers OVERVIEW As it is mentioned in the site analysis, noise pollution is a severe concern to the projects site. Affected by the train horning noise, the project site falls into the yellow zone of noise greater or equal to 80 dBA. Noise at such level is damaging to human health. In order to offer a liveable environment for users at Vue at the Banks, sound barrier structures along the CSX railway bridge is required to eliminate train horning and by-passing noises. With any major noise barriers, the entire site would be covered by damaging noise pollutions. After in-depth researching about noise blocking solutions, the team is proposing two alternatives.
1
6
BRENT SPACE BRIDGE
FIRST ALTERNATIVE The first alternative is to construct noise barriers above the bridges to block off noise, which affects indoor and outdoor life qualities. Due to the height of the bridge, the noise barrier would have to be raised to about 65’ above street level and supported by vertical posts. Noise absorption panels will be hung on the side of the bridge. Such posts could also perform as supporting structure for green wall on the other site and provide lighting for the outdoor room, which contributes to the outdoor space quality of Vue at the Banks.
BRENT SPACE BRIDGE
2
CLAY WADE BAILEY BRIDGE
CLAY WADE BAILEY BRIDGE
SECOND ALTERNATIVE The first alternative is to construct noise barriers above the bridges to block off noise, which affects indoor and outdoor life qualities. Due to the height of the bridge, the noise barrier would have to be raised to about 65’ above street level and supported by vertical posts. Noise absorption panels will be hung on the side of the bridge. Such posts could also perform as supporting structure for green wall on the other site and provide lighting for the outdoor room, which contributes to the outdoor space quality of Vue at the Banks.
Due to the property ownership of the CSX railway bridge and the Clay Wade Bailey Bridge, the major sound barrier structure might have to be located outside of the easement area (10’ from the center line of the bridge). As a result, the structure might have to be constructed higher to be efficient. Ideally, the noise barrier structure would locate as closed as possible to the noise source, which is the primarily the CSX railway bridge. If negotiation could be made, noise absorption panels could be located on the side of the Clay Wade Bailey Bridge.
ARCHITECTURE CONCEPT
Programming OVERVIEW Located at the gateway of Cincinnati the site is a perfect opportunity to locate and bring a high-end development to carry forward and further develop the downtown and river-front. The challenges that the site has brought with itself, not only has strengthen the architecture concept and language, but it has also highlighted the amazing bridge and stadium infrastructure of Cincinnati.
SOCIAL ATMOSPHERE The development team was very enthusiastic about the opportunities of creating a focal point for the general public to come in downtown Cincinnati. The architecture and the landscape resonances the aim for creating an uninterrupted flow between all parcels of the site. The team has utilized the parcel C to continue with the park language on the adjacent site to promote a better quality of life. In the team’s proposal parcel C has been dedicated to a ramping green roof allow access for the general public to elevate twenty feet to on top of the garage and to continue with the outdoor activities provided on parcel A and B. Parcel C was dedicated to this purpose since the parcel if was to be built, would disrupt the view to the Paul Brown stadium and cut the connection between the parks. Following to the top of the garage for more public activities, the team has included the bottom levels of the residential towers together with two buildings for commercial and retail spaces to support the daily lives of the residences of the site and The Banks. This has enabled the team to orchestrate a coherent language between the Parcels C and A and ensuing to keep the street busy. In order for the site to become a longer lasting experience for the visitors, the team has decided to utilize and renovate the steep hill in front of the river for various activities using various ways of transportation system. Not only the renovated water front is bike and pedestrian friendly with opportunities for outside vendors to come, but water taxi allows for people to travel between The Vue Development and the Newport riverfront. This will enhance the traveling experience for those on the run, and those who want to experience a new ways of transportation. This contusion of the remaking of the river front allows for an amazing discovery and amusement; since the laws and regulations indicate that there shall not be and built and permanent structure within 10’ of the bridge, the team has decided to allocate the space under the bridge for people to enjoy various activities. This allows for the general public to experience the great American engineering and infrastructure on a 7 day walking along the river.
FLOOR PLAN CONCEPTS The composition and layout of the floor plans in both the residential and office towers are in such that supports the idea behind the high-end development on the site. The team has proposed a mix of studio, one bedroom and two-bedroom floor plans to meet all the needs for high-end residential housing in the area. Furthermore, the proposal for having many small luxury units to the public is to support the dream of young professionals to afford a luxury space with a fairly affordable rent in the downtown area. Additionally, the open floor plans in the office towers support the idea of inviting highly influential single tenants into the door steps of Cincinnati.
1
2
2
8
1
1
NOISE REDUCTION The architecture responds to the C.W. Bailey Bridge and 42 highways in a way to propose the occupiable programs like residential, office and hotel to be as far away from the noise source.
2
RAISING THE PLAIN With studying the site and location, the development team concluded that the site needs to be raised up at least 2 stories in order for the development to come out of the 100 year flood plain. This constrain of the site forced the team to raise the whole site by two stories of parking garage, and therefore to raise the Mehring Way for a better pedestrian access and keeping the street edge alive.
3
VIEW ORIENTATION Residential buildings have been rotated 30, perpendicular to the Mehring Way street, to ensure the best view for the residence towards the river and also the stadium.
4
VERTICALITY The development team felt very strong about the way in which the buildings are competing in height. Learning from The Banks development project and the issue for raising the height, the team pushed for the contribution of the site’s projects to the Cincinnati skyline. All building heights are in respect with the current zoning regulations and unlike the location of The Banks does not obstruct the view of the downtown towards the river.
9
DEVELOPMENT PROGRAMMING
Proposed Use Apartment Unit Types Studio 1 Bedroom, 1 Bath 2 Bedroom, 2 Bath Total Phase I Phase II Phase II
10
325,139 SF SF 266,760 48,906 SF
Parking Area
Units 100 191 44 335 Number of Vehicles 2007 1647
$/SF SF/Unit $2.85 420 $2.71 1,000 $2.56 1,400 $2.78 879
$/Month $1,197 $2,710 $3,584 $2,445
Phase I
Floor to Floor Height Residential :11’-00” Residential Commercial: 15’-00” Commercial: 12’-00”
Phase II
Office: 10’-00 Cultural Center: 12’-00” Hotel: 10’-00”
Phase II
Office: 10’-00”
302
Vue at The Banks will create an environment that will contain state of the art facilities and infrastructure that will be conducive for its tenants for many years to come. The apartment community will contain 335 A-Class units with features such as climate controlled intercom buildings, 9 foot ceilings with crown molding, woodgrain flooring and lush frieze carpet, modern polished chrome lighting and hardware throughout, chef ready kitchens with quartz countertops, 42” genuine wood cabinets with soft close mechanisms. Stainless steel appliances, mosaic tile backsplash, LED under-cabinet lighting. The amenities will include a lavishly appointed club room, full circuit athletic center with club quality Life Fitness cardio equipment, free weights, and a yoga/pilaties studio. We anticipate pre-leasing efforts to steadily fill units as they are being delivered from construction. We will depend on a lot of online marketing and organic word of mouth marketing. Joining the local chamber of commerce will help spread the word to local businesses, and we will utilize preferred employer programs for reduced application fees and security deposits. Our commercial space will be perfect for retailers and commercial tenants whose brand is focused around active lifestyles. A major tenant of Vue at The Banks will be a boutique grocery store that will bring fresh produce to the downtown Cincinnati market, a service that is desperately needed in the area. We will partner with Blatteis & Schnur. A company that provides advisory and tenant representation services to retailers, restaurants and entertainment companies nationwide. They are partners with some of the most prestigious brands in the retail and commercial industry such as The Cheesecake Factory, Bloomingdales, Victoria’s Secret, Crunch Fitness, California Pizza Kitchen, and more. We feel that Blattis & Schnur will be able to find suitable tenants that will enhance the experience and atmosphere of Vue at The Banks. Phase II of Vue at The Banks will be able to host more commercial and retail tenants, as well as several hundreds of thousands of square feet of office space. We anticipate that one if not more Fortune 500 companies (such as Macys) that is headquartered in Cincinnati will be inclined to relocate their corporate office to one of our office towers. There will be opportunities for other businesses to lease suites and floors of the two towers. There is a parcel that is designated to be developed into a boutique hotel, as well as a cultural center that will give visitors an insight into the rich history of the city of Cincinnati.
RIVERFRONT REHABILITATION The overarching theme of the landscape design is to activate the riverfront and connect the east part of the Banks neighbourhood to Vue at the Banks via water front passage ways. Different from the current approach, Vue at the Banks has a “stepping” approach, which means to have paths at different levels to allow circulation in the east-west direction at all times, even during flooding events. Moreover, the “stepping” approach creates interesting topography which allows users to circulate along the river with different means of transportation. For instance: biking, running, and walking.
11
LANDSCAPE DESIGN FEATURES
4 5
6 9
2
10 1
7 8 3
12
1
2
Ramp
3
Water Dock
http://www.greenaconsultants.com/wp-content/uploads/2016/05/
http://static.wixstatic.com/media/5b14d8_c045a9e2cb434c2194e-
http://www.kibisi.com/cms/files/projects/-big-designs-a-winter-bath-
marina-barrage.jpgv
5c67f7edbe50f.jpg_srz_941_1595_85_22_0.50_1.20_0.00_jpg_srz
in-copenhagen-/vinterbad-bryggen.jpg
In order to allow green flow for the passengers to walk from the existing riverfront park onto the raised project site of Vue at the Banks, a green roof ramp is designed on the east side of the project to provide a smooth pedestrian circulation during level change.
5
Residential Plaza
Bike Parking
A slightly raised intensive green roof area is designed as the leisure space for the residents in Vue at the Banks. The level up defines a semi-private space for the residents and a dog park is included as well.
6
Vendoring
7
Open Lawn
https://www.building.ca/wp-content/uploads/2015/11/View-East-at-
http://media.cutimes.com/cutimes/article/2015/04/23/west-river-
posts/amsterdam-bike-parking-6.jpg
Fort-York-Blvd_Winter.jpg
front-park.jpg
Vendor spaces constructed by containers are proposed underneath the bridge to active the underutilized space. It also allows vendor for events and festivals.
Streetcar Stop
Converting the existing loading dock of the Hilltop Concrete plant, the team is proposing a water pool onto the Ohio river with a wood walkway. Its purpose intimacy between the pedestrian and the water to allow for more leisure activity and interaction with the nature.
http://www.reliance-foundry.com/site/reliance-foundry/images/blog/
In order to accommodate urban bike users and bike renters, a public bike parking area is proposed underneath the Clay Wade Bailey Bridge, which is along the proposed bike trail. Such area will have bike parking racks and renting stations.
4
A open great lawn is preserved as leisure / event spaces for daily leisure / special occasions. An amphitheatre is also part of the lawn as well.
The project site is currently not well-supported by public transportation. It only has one bus route connection:85. In the future, the team is proposing to bring the streetcar to the site and stop at the intersection of Smith Street and Merhing Way, which is the central location of the site.
13
8
10
Ramp
Stormwater Management
Learning from the success of the Baltimore Harbor, water taxi could performed as a very attractive tourist attraction for the river front area. It could be both a way of transportation and a tourist attraction. As such, the team is proposing a water taxi system along the Ohio River, connecting the Ohio side and the Kentucky side of the river, making multiple stops at popular destination, such as Newport on the Leeve and public recreation sites. The team also proposed the watery taxi stops on existing bike trails to better support the biking life style. The team believes once developed, the water taxi could be a great asset for the both sides of the river in terms of connection and revenue sharing and make biking more feasible in the tri-state area.
9
Combo - Green roof The team is proposing a “combo-green roof” mixing intensive and extensive planting materials and depth to mimic actual landscape, which would have happened on the ground floor to • Reduce storm water runoff • Improve water quality • Visual continuity with the ground floor landscaping • Avoid applying intensive planting material for the whole roof area to reduce construction cost • Helps to absorb noise pollution from the bridges on site.
A storm water management system is proposed on the project site to collect runoff water from the roof tops into a “rain” stream along the buildings. Such features are also part of the landscape design family and make the outdoor room more interesting and appealing. A water feature is also proposed to act as a retention basin when it is raining heavily. During normal days, it is a interactive water feature with minimal depth. During rainy days, when water level rise up, it could become a pond which collects storm water runoff.
14 http://www.rlwroofing.co.uk/Images/green_
FINANCIAL ANALYSIS
Development Schedule
Construction Cost Development Costs Phase I
Project TIF Assumptions
Development Schedule Phase I Site Control Design & Predevelopment Secure Financing Final Design & Permit Submissions Construction Completion of Phase I Lease‐Up Period
Stabilized Value @ 6.5 CAP Tax Assumption at Value Current Taxes Tax Increment Available for Payments
December 2016 February 2017 $2,500,000 $20,571,281 $3,500,000 $164,891,930
Annual Payment Payment Coverage Amount Available for Bond Payments
Phase I Analysis Income Units 100 191 44 335 $
$/SF $2.85 $2.71 $2.56 2.78
Units $/SF/YR 1 $27.10 1 $24.87 1 $28.24 1 $29.50 1 $28.40 1 $24.74 1 $27.47 1 $25.89 1 $26.37 1 $26.21 1 $25.45 294,600 $ 27.01 90,205 384,805
Commercial Tenants Restaurant Restaurant Restaurant Grocery Fine Dining Restaurant Department Store Fine Dining Restaurant Department Store Restaurant Restaurant Retail Total Multifamily NSF Total Commercial NSF Total Rentable NSF
SF/Unit 420 1,000 1,400 879
Expenses Residential Property Management Real Estate Taxes General & Administrative Maintenance & Repair Grounds Paint & Clean Insurance Utilities Replacement Reserve Total Residential Expenses Commercial Operating Expenses Commercial Reserve Total Commercial Expenses
Column2
Column3
Mortgage Project TIF Roadway Decongestion Grant Equity EPA Grant Total Sources
Column4
of Effective Gross Revenue of estimated total project value per unit per unit per unit per unit per unit per unit per unit
$7.50 per sq.ft. $0.50 per sq.ft.
$660,899 $4,500,000 $50,250 $43,550 $40,200 $50,250 $83,750 $83,750 $83,750 $5,596,399 $676,538 $45,103 $721,640
2,891,381 1.25 2,313,105 30 3.50%
Gross TIF Amount:
$
42,542,727
Bond Costs, reserves, etc.
$
10,635,682
Net TIF Proceeds
$
31,907,045
25%
$106,413,603 $31,907,045 $2,500,000 $20,571,281 $3,500,000 $164,891,930
65% 19% 2% 12% 2% 100%
$ 4,052,567 $ 145,755,248 $ 15,084,115 $ 164,891,930
2% 88% 9% 100%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
Number of Units Square Footage (excluding garage) Development Costs Land Environmental Remediation Site Work Residential Commercial Core & Shell Commercial Tennant Improvement Allowance Garage Construction Contingency (Construction) Total Hard Costs
Net Sq..
346 426,586
346 384,805
$5.50 $4.0
Per Gross Sq. Per Gross Sq.
$ $ $
2,346,223 1,706,344 4,052,567
$11.5 $200 $200 $50 $15,500 3%
Per Gross Sq. Per Gross Sq. Per Gross Sq. Per Gross Sq. Per Bay
$ $ $ $ $ $ $
4,500,000 80,370,000 21,021,200 4,510,250 31,108,500 4,245,298.49 145,755,248
3.00% $890,500 $100,000 $337 $252,000 $120,000
of hard cost Estimate Estimate Per Total Units Estimate Estimate
$ $ $ $ $ $
6% 3%
of initial lease term
$ $
4,372,657 890,500 100,000 116,602 252,000 120,000 1,145,323 6,916,884 $730,805 439,343 15,084,115
$
164,891,930
Soft Costs: Architecture & Engineering Legal & Other Fees (Permits) Appraisal, Market Study, Title Marketing Taxes during Construction Insurance during Construction Construction Loan cost Construction Loan Intrest Reserve Commission Contingency (Soft Cost) Total Soft Costs Total Development Cost Estimate of Construction Interest Construction Loan Construction Interest Construction Period (months)
$106,413,603 5.00% 24
Less: Development Cost Subsidies Total Project Costs after Subsidies
(37,907,045) $
126,984,885
•
•
3.00% 4.00% 5% 7%
4.00% 3.00% $150.00 $130.00 $120.00 $150.00 $250.00 $250.00 $250.00
70%
Uses Land Acquisition Construction Costs Soft Costs Total Uses
•
Expenses Column1 Inflation Management Fee Vacancy-Residential Vacancy- Commercial
$
Gross Sq..
Sources & Uses Sources
$/Month $1,197 $2,710 $3,584 $2,445
SF/Unit Annual Rent 4,580 124,118 2,690 66,900 3,760 106,182 18,500 545,750 9,500 269,800 13,500 333,990 8,225 225,941 11,750 304,208 4,550 119,984 5,890 154,377 7,260 184,767 8,200 $2,436,016
$
Amortization Period Bond Rate
Apartment Unit Types Studio 1 Bedroom, 1 Bath 2 Bedroom, 2 Bath Total
141,884,804 4,256,544 126,000 4,130,544 2,891,381
•
Mortgage: Secured by PNC Bank in the amount of $106,413,603 fully amortizing at a 5% interest rate for 30 years. Project TIF: TIF funds generated total the amount of $31,907,045. These incremental tax revenues generated will go towards paying the bonds that were issued for this projects development. Roadway Decongestion Grant: This grant awarded by the county totals $2,500,000 will pay for roadway infrastructure development that will help ease traffic congestion, streetscapes, a parking garage, and public spaces. The incremental tax revenue in addition to revenue generated from the parking garage will be applied towards paying the bonds issued for the development. EPA Green Roof Grant: The Ohio Environmental Protection Agency, Metropolitan Sewer District of Greater Cincinnati (MSD), and the Cincinnati Office of Environment and Sustainability have created the Green Roof Loan Program. This program has made $5,000,000 available for below-market-rate loans to install green roofs within the MSD service area on residential, commercial, and/or industrial buildings. Vue at The Banks will utilize a $3,500,000 grant that will allow for additional land and .
15
Debt Calculation
Phase I: Proforma
Max Debt Calculation Phase I Pro Forma Net Operating Income (NOI) and Value Pro Forma NOI Capitalization Rate Value of Income Property Only (NOI / Cap Rate) Loan Terms Interest Rate Amortization (years)
Revenue Gross Potential Commercial Revenue Gross Potential Residential Revenue Less: Vacancy (Commercial) Less: Vacancy (MF) Less: Bad Debt Effective Gross Revenue
5.00% 30
Debt Based on Loan to Value (LTV) Maximum LTV Percentage Maximum Loan Based on LTV for Income Property
75.00% $106,413,603
Using Debt Service Coverage Ratio (DSCR) Monthly NOI Minumum DSCR Maximum Monthly Payment Maximum Loan Based on DSCR for Income Property
768,543 1.25 $614,834 $114,532,300
Maximum Loan (Lesser of LTV or DSCR Result) Maximum Loan for Income Property Total Initial Project Debt
$106,413,603 $106,413,603
LTC
Annual Revenue/Cost
Factor
$9,222,512 6.50% $141,884,804
Expenses Residential Property Management Real Estate Taxes General & Administrative Maintenance & Repair Grounds Paint & Clean Insurance Utilities Replacement Reserve Total Residential Expenses
65%
Commercial Operating Expenses Commercial Reserve Total Commercial Expenses
Development Team Project Manager
$4,879,748 $11,642,736 ($341,582) ($582,137) ($58,214) $15,540,552
7.00% 5.00% 0.50%
4.00% 3.00% $150.00 $130.00 $120.00 $150.00 $250.00 $250.00 $250.00
of Effective Gross Revenue of estimated total project value per unit per unit per unit per unit per unit per unit per unit
$660,899 $4,500,000 $50,250 $43,550 $40,200 $50,250 $83,750 $83,750 $83,750 $5,596,399
$7.50 per sq.ft. $0.50 per sq.ft.
$676,538 $45,103 $721,640
Total Operating Expenses
$6,318,039
Vue at the Banks
Net Operating Income
Developer
$
9,222,512
Carter Development Group
Architect/Site Planning GBBN Architects
•
•
16
•
Civil Engineer Bayer Becker
Lender & Equuity Partner PNC Bank
Attorney Frost Brown Todd
General Contractor Turner Construction Company
Residential Leasing Towne Properties
Retail Leasing Blatteis & Schnur
The Project Manager: assembling the development team of experts who will design, build, finance and manage the project; identifying and obtaining control of a suitable site for the housing; working with the development team, particularly the architect, to design the physical space; obtaining appropriate financing for the development from private lenders and public agencies; obtaining all design review and planning approvals from local agencies; maintaining compliance with all funders during the predevelopment and construction process; implementing and monitoring the construction process with the construction team; selecting and hiring property management services; and monitoring the property management agent as it implements initial lease-up to tenants. You Developer: created this PDF an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) The thefrom organization designated as the lead agency on the development of the project. Managing the development team and driving the development process, from the acquisition of the site through to the leasing up of the completed units. In many cases, the Developer will continue to own the project after it is completed and operational. The Architect & Project Engineer: to determine the feasibility of specific sites, create preliminary and final draw-
•
•
• •
ings of the project, develop construction specifications, assist with preliminary cost estimates, work with the Developer to secure local site and design approvals, and monitor construction. The Attorney: An Attorney must be available to provide legal services associated with the real estate, project financing, and organizational issues, acquisition of the site, prepare related documents, review all contracts associated with the project or development team, assure compliance with all requirements of funders and other stakeholders, protect the lead organization from any errors or omissions, keep the agency out of any legal trouble, any closings on property or financing. The General Contractor: responsible for the actual construction or rehabilitation of the housing, processing the necessary insurance coverage and building permits, contracting with subcontractors, managing the construction, and ensuring wages and labor standards are met for all construction workers. The General Contractor should have experience in the type of development planned and understand funder requirements and procedures. The Lead Service Provider: responsible for development of the annual service plan and may be the grantee of supportive service funds for the project. The Property Manager (Residential & Retail): The Property Manager is responsible for the day-to-day management of the property, including maintenance, tenant screening, leasing, rent collection, fiscal management, funder compliance reporting, and other responsibilities.