Concept
Vision
Execution
Concept
Vision
Execution
Concept Site History
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept Site History
“In the early 1950’s salaried employees, entering the main aisle of the factory before 8:00 a.m., were greeted by a chorus of rivet guns operated by the first factory shift which started at 7:30 a.m.”
Source: vought.org Harvard Graduate School of Design | Field Study | Fall 2014
1950 ~30,000 workers on site Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept Site History
1950 ~30,000 workers on site Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept Site History
Today 0 workers on site Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept Site History
How do we redevelop the Chance Vought Plant in a way that respects its heritage and responds to the needs of 21st-century Dallas?
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept
People Want... Pedestrian-scaled streets
Bishop Arts District
Walkable density
Uptown Harvard Graduate School of Design | Field Study | Fall 2014
Adaptive reuse
Reggieville
Programmed open spaces
Klyde Warren Park, Dallas Arts District Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept
Creating an Urban Ecosystem Mixed-Use
Flexibility
Pockets of Density
Local Flavor
Community Harvard Graduate School of Design | Field Study | Fall 2014
Economy
Diversity of Work Spaces
Adaptive Reuse
INDUSTRY
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept
Vision
Execution
Vision Access
Interstate 30
Southeast 14th Street
Jefferson Boulevard
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Access
Bagdad Road
Interstate 30
Southeast 14th Street
Jefferson Boulevard
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Masterplan: Overview Manufacturing Warehouse
Flex / R&D Office Retail School Exhibition Parking
Mixed Use (Retail and Residential) Residential
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Masterplan: Overview
Industrial 3,080,000 sf (45%)
Flex / R&D 336,000 sf (5%)
Office 582,000 sf (9%)
Exhibition 200,000 sf (3%)
Apartments 390 units (6%)
Single-Family Homes 923 units (24%)
Retail 200,000 sf (3%)
School 380,000 sf (6%)
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Entrance
Challenge • Create an iconic entrance
Options • Existing entrance • Jefferson Boulevard at NE corner • SE 14th Street at Western edge
Solution • Repurpose existing entrance • Draw visitors through active industrial zone • Use glass to put activity on display • Use murals to respect heritage of the site
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Precedent: Pier 70 in San Francisco
Pier 70 industrial buildings Active industrial Active industrial
Pier 70 entrance Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Entrance
Murals in Deep Ellum, Dallas
Steel and glass industrial facade Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Industrial Zone
Industrial Zone • Retain industrial heritage • Buildings 1 & 6: monetize valuable assets • Distribution: exploit access to highway
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Commercial Zone Commercial Zone • Cluster jobs along east-west spine • Use gradient from north to south
R&D / Flex: Target Industries • Light industrial “makers of things” • High-tech engineering firms • Innovation economy businesses
Office: Target Industries • Some back-office space • Office-users looking for relative affordability in a mixed-use environment
Retail • Ancillary retail on SE 14th Street
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Frederick O. Detweiler Park Design Strategy • Repurpose industrial infrastructure and water filtration system as public space element • Lighting system • Playground and daycare center • Integration with neighboring office and retail uses
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Frederick O. Detweiler Park
Building 230
Building 214
Building 214 Harvard Graduate School of Design | Field Study | Fall 2014
Building 240
Building 241
Building 276 Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Precedents: Landschaftspark, Parco Dora & Park am Gleisdreieck
Landschaftspark, Germany
Parco Dora, Italy Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision School
Program • Technical education focused on heavy industry with aerospace component • Career areas: Construction, engineering, repair and maintenance, industrial management
Potential Partners • For-profit technical school / community college • School District • Private Business • Consortium
Benefits • Connect area businesses to pool of skilled labor • Expand opportunities for hands-on collaborative learning • Leverage public and private funds for workforce development
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Precedent: Lowry Air Force Base, Denver
Community College of Aurora
Community College of Aurora at Lowry Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Precedent: Deeside Enterprise Zone, Wales
Industry-specific curricula
Partnerships with industrial tenants Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Crusader Square
Crusader Square • Adaptive Reuse of Building 198 • Create central plaza bounded by school, Building 198 and retail core • Dedicated space for Vought Aircraft Heritage Foundation and Vought Retiree Club • Exhibition hall and conference center • Invest in large-scale projection system and public art • Cluster pavillions to activate central square
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Precedent: New World Center in Miami
New World Center facade
New World Center landscape plan Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Crusader Square
Movie theater
Daycare center Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
MXD: Corsair Street Typologies • Mixed-use apartment buildings with ground floor retail • Corsair Street extends from Crusader Square to waterfront esplanade
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
MXD: Apartments & Retail
Retail at grade
Apartments above Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Precedent: West Village, Dallas TX
Active streetscape
24/7 atmosphere Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
MXD: Waterfront Esplanade
Active waterfront
Active waterfront Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Open Space Network
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Open Space Network
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Residential Zone
Typologies • Four different typologies • Respond to site conditions • Tap into different market segments
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Detached Homes -- Midrange
Precedent
Axonometric Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Rowhomes
Precedent
Axonometric Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision Heritage Homes
Precedent
Axonometric Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Detached Homes -- High End
Precedent
Axonometric Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem USE
EXAMPLE
ACTIVATION
JOB DRIVER
LAND VALUE
Manufacturing
Texas Instruments
Low
High
Low
Distribution
Shoebacca.com
Low
Medium
Low
Flex / R&D
Trilliant Systems
Low
High
Medium
Small Office
Architect
Medium
High
High
Anchor Office
Blackberry
Medium
High
High
School
DeVry University (Irving)
High
High
Low
Exhibition
Frontiers of Flight Museum
High
Low
Low
Neighborhood Retail
Dougherty's Pharmacy
High
Low
Medium
CafĂŠ / Restaurant
Hunkie's Hamburgers
High
Medium
Medium
Community
Daycare Center
High
Medium
Low
Residential - For Rent
Apartments
High
Low
High
Residential - For Sale
Single-Family Homes
Medium
Low
High
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem USE
EXAMPLE
ACTIVATION
JOB DRIVER
LAND VALUE
Manufacturing
Texas Instruments
Low
High
Low
Distribution
Shoebacca.com
Low
Medium
Low
Flex / R&D
Trilliant Systems
Low
High
Medium
Small Office
Architect
Medium
High
High
Anchor Office
Blackberry
Medium
High
High
School
DeVry University (Irving)
High
High
Low
Exhibition
Frontiers of Flight Museum
High
Low
Low
Neighborhood Retail
Dougherty's Pharmacy
High
Low
Medium
CafĂŠ / Restaurant
Hunkie's Hamburgers
High
Medium
Medium
Community
Daycare Center
High
Medium
Low
Residential - For Rent
Apartments
High
Low
High
Residential - For Sale
Single-Family Homes
Medium
Low
High
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem USE
EXAMPLE
ACTIVATION
JOB DRIVER
LAND VALUE
Manufacturing
Texas Instruments
Low
High
Low
Distribution
Shoebacca.com
Low
Medium
Low
Flex / R&D
Trilliant Systems
Low
High
Medium
Small Office
Architect
Medium
High
High
Anchor Office
Blackberry
Medium
High
High
School
DeVry University (Irving)
High
High
Low
Exhibition
Frontiers of Flight Museum
High
Low
Low
Neighborhood Retail
Dougherty's Pharmacy
High
Low
Medium
CafĂŠ / Restaurant
Hunkie's Hamburgers
High
Medium
Medium
Community
Daycare Center
High
Medium
Low
Residential - For Rent
Apartments
High
Low
High
Residential - For Sale
Single-Family Homes
Medium
Low
High
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem USE
EXAMPLE
ACTIVATION
JOB DRIVER
LAND VALUE
Manufacturing
Texas Instruments
Low
High
Low
Distribution
Shoebacca.com
Low
Medium
Low
Flex / R&D
Trilliant Systems
Low
High
Medium
Small Office
Architect
Medium
High
High
Anchor Office
Blackberry
Medium
High
High
School
DeVry University (Irving)
High
High
Low
Exhibition
Frontiers of Flight Museum
High
Low
Low
Neighborhood Retail
Dougherty's Pharmacy
High
Low
Medium
CafĂŠ / Restaurant
Hunkie's Hamburgers
High
Medium
Medium
Community
Daycare Center
High
Medium
Low
Residential - For Rent
Apartments
High
Low
High
Residential - For Sale
Single-Family Homes
Medium
Low
High
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Attracts & Subsidizes
Residential
Retail
Activates Accomodates Open Space
Accomodates Industrial
Office
School Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Residential
Attracts Retail
Uses & Subsidizes
Accomodates
Open Space
Industrial Industrial
Office Office School School
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Residential
Uses
Retail
Uses Open Space
Industrial
Transacts With
Uses Office
School Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Residential Retail
Uses Activates Open Space Uses Industrial
Provides Workforce
Office School
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Vision
Creating an Urban Ecosystem
Residential Retail
Uses
Uses Uses
Open Space Transact With
Industrial Supports & Benefits From Harvard Graduate School of Design | Field Study | Fall 2014
Office School Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Concept
Vision
Execution
Execution Phasing Strategy
Phase I • Establish the industrial base
Phase II • Create the community
Phase III • Harvest residential value
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase I: Establish the industrial base Goals • Rehab and release office and industrial space • Sell distribution sites • Build and sell school
Risks • Leasing • Construction • Capital markets
Considerations • Significant investment in infrastructure upgrades • Attractive leasing package (TI & commissions)
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase I: Establish the industrial base
Year 0
Year 1
PHASE I Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
PHASE II Year 8 Year 9
PHASE III Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
PHASE IA Acquisition Construction Lease-up Stabilized Disposition PHASE IB Construction Land Sales PHASE II Construction Land Sales PHASE III Construction Land Sales
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase IA: Establish the industrial base Area Use Manufacturing Office Data Center University* Total
Gross (SF) 2,300,000 250,000 16,000 380,000 2,946,000
* Sold as 'fee development'
Operating -- Office & Manufacturing Manufacturing Market Rent (NNN) (yr 1) Annual Growth Stabilized Vacancy TI Allowance Leasing Commissions (% Annual Rent) Office Market Rent (NNN) (yr 1) Annual Growth Stabilized Vacancy TI Allowance Leasing Commissions (% Annual Rent) Operating Expenses OpEx (% of Net Rent) Exit -- Office & Manufacturing NOI Cap Rate Sales Proceeds Sales Costs
Rentable (SF) 2,185,000 225,000 16,000 247,000 2,673,000
$3.75/rsf 1.0% 10.0% $5.00/rsf 30% $10.00/rsf 1.0% 10.0% $25.00/rsf 30% 15% 8,231,558 7.50% 109,754,102 4.00%
Financing Bridge Loan Harvard School of Design | Field Study | Fall 2014 Loan toGraduate Cost 53.0%
Uses Purchase Price (Allocated) Closing Costs Total Acquisition Cost Remediation Costs Demolition Roads Utility Grid Upgrades Landscaping / Open Space University Hard Costs Soft Costs (% Hard) Contingency (% Hard) Tenant Improvements Leasing Commissions Unlevered Development Cost Bridge Loan Interest Levered Development Cost
12,000 LF 10 Acres 10.0% 5.0%
Sources Equity Debt Levered Development Cost Results Eq Required IRR Multiple Total Profit
8.00%
Unlevered (107,255,066) 15.89% 1.52 55,700,239
226,941 226,941 6,000,000 500,000 2,400,000 20,000,000 7,500,000 40,400,000 7,030,000 3,515,000 16,550,000 3,133,125 107,255,066 12,838,986 120,094,052
$ / LF
$ / Acre 200 750,000 -
% / Total 42,094,759 35% 77,999,293 65% 120,094,052 100% Levered (42,094,759) 27.18% 2.02 42,861,253
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase IB: Establish the industrial base Area Use Distribution Total
Gross (SF) 780,000 780,000
Rentable (SF) 741,000 741,000
Operating -- Land Disposition Untrended Residual Land Value Distribution Sales Assumptions Lot Price Growth Rate Sales Expenses Management & Administrative
$3,115,867 1% 10%
Uses Purchase Price (Allocated) Closing Costs Total Acquisition Cost Remediation Costs Demolition Roads Utility Grid Upgrades Landscaping / Open Space Retained Building Hard Costs Soft Costs (% Hard) Contingency (% Hard) Tenant Improvements Leasing Commissions Unlevered Development Cost Land Loan Interest Levered Development Cost
2,500 LF Acres 10.0% 5.0%
4,718 4,718 500,000 500,000 1,000,000 150,000 75,000 2,229,718 119,459 2,349,177
Sources Equity Debt Levered Development Cost Results Eq Required IRR Multiple Total Profit
Harvard Graduate School of Design | Field Study | Fall 2014
824,996 1,524,181 2,349,177
Unlevered (2,229,718) 18.72% 1.29 645,232
$ / LF
200 -
$ / Acre -
% / Total 35% 65% 100%
Levered (824,996) 27.96% 1.64 525,773
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase II: Create the community Goals • Rehab Building 198 as exhibition hall / museum • Adaptively reuse water filtration plant as park • Build roads, public space components and install utility grid upgrades • Sell land for following uses: R&D / Flex Office MXD Retail
Risks • Construction • Sales
Considerations • Significant increase in tax base as a result of development: TIF District Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase II: Create the community
Year 0
Year 1
PHASE I Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
PHASE II Year 8 Year 9
PHASE III Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
PHASE IA Acquisition Construction Lease-up Stabilized Disposition PHASE IB Construction Land Sales PHASE II Construction Land Sales PHASE III Construction Land Sales
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase II: Create the community MUNICIPAL MANAGEMENT DISTRICT
TAX FLOWS
Dissolution of TIF district
ENTERPRISE ZONE: Induce job creation and support private investment in economically distressed areas
$12 million
$10 million
$8 million
Tax increment to TIF fund Tax increment retained by jurisdictions
$6 million
- City applies to Texas EDB for designation based on eligibility criteria - Individual projects then qualify for incentives and benefits
Base tax revenue retained
$4 million
REINVESTMENT ZONE: $2 million
Basic building block on which several economic development programs are structured
PHASE 1
PHASE 2
PHASE 3
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
$176,672
- Authorizes loal government to issue debt - Allows for special treatment of property under tax law
TIF DISTRICT Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase II: Create the community Area Use R&D / Flex* Office* Retail -- SE 14th* Retail -- Standalone MXD -- Residential* MXD -- Retail* Building 198 Adaptive Reuse** Total * Sold as land ** Rehabbed but not sold
Gross (SF) 336,000 332,000 21,000 95,000 390,000 85,000 200,000 1,459,000
Rentable (SF) 302,400 282,200 18,900 85,500 351,000 76,500 183,000 1,299,500
Operating -- Land Disposition Untrended Residual Land Value R&D / Flex* Office* Retail -- SE 14th Street Retail -- Standalone MXD -- Retail and Residential Sales Assumptions Lot Price Growth Rate Sales Expenses Management & Administrative* * Paid out of operating cash flow
$13,800,000 $24,300,000 $900,000 $4,300,000 $18,600,000 1% 10%
Uses Purchase Price (Allocated) Closing Costs Total Acquisition Cost Remediation Costs Demolition Roads Utility Grid Upgrades Landscaping / Open Space Building 198 Hard Costs Soft Costs (% Hard) Contingency (% Hard) Tenant Improvements Leasing Commissions Unlevered Development Cost Land Loan Interest Levered Development Cost
20 Acres 10.0% 5.0%
Sources Equity Debt Tax Increment Financing Levered Development Cost Results Eq Required IRR Multiple Total Profit
Harvard Graduate School of Design | Field Study | Fall 2014
10,000 LF
82,589 82,589 500,000 500,000 2,000,000 6,000,000 15,000,000 10,000,000 3,300,000 1,650,000 39,032,589 3,541,965 42,574,554
8.00%
Unlevered (39,032,589) 10.47% 1.56 21,938,551
12,788,387 20,986,167 8,800,000 42,574,554
$ / LF 200 -
$ / Acre 750,000 -
% / Total 30% 49% 21% 100%
Levered (12,788,385) 23.64% 3.13 27,196,585
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase III: Harvest residential value Goals • Complete open space netowrk • Build roads, public space components and install utility grid upgrades • Sell land for following residential typologies Detached Homes -- Midrange Rowhomes Heritage Homes Detached Homes -- High End
Risks • Construction • Sales
Considerations • Must achieve satisfactory remediation • Active mixed-use environment increases marketability for residential parcels Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase III: Harvest residential value
Year 0
Year 1
PHASE I Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
PHASE II Year 8 Year 9
PHASE III Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
PHASE IA Acquisition Construction Lease-up Stabilized Disposition PHASE IB Construction Land Sales PHASE II Construction Land Sales PHASE III Construction Land Sales
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
Phase III: Harvest residential value Area Typology Heritage Homes Detached Homes - Midrange Detached Homes - High End Rowhomes Total
GFA (SF) 270,000 432,000 384,000 570,000 1,656,000
Units Acres Units / Acre 135 9 15 216 18 12 192 16 12 380 19 20 923 62 15
Operating -- Land Disposition Forecasted Sales Prices Heritage Homes Detached Homes - Midrange Detached Homes - High End Rowhomes Untrended Residual Land Value Heritage Homes Detached Homes - Midrange Detached Homes - High End Rowhomes Sales Assumptions Lot Price Growth Rate Sales Expenses Management & Administrative* * Paid out of operating cash flow
$ / Dwelling $265,000 $180,000 $285,000 $185,000 $ / Acre $845,160 $490,752 $749,203 $778,816 1% 10%
Uses Purchase Price (Allocated) Closing Costs Total Acquisition Cost Remediation Costs Demolition Roads 17,000 LF Utility Grid Upgrades Open Space 10 Acres Developed Bldg Hard Costs Soft Costs (% Hard) 10.0% Contingency (% Hard) 5.0% Tenant Improvements Leasing Commissions Unlevered Development Cost Land Loan Interest Levered Development Cost Sources Equity Debt Levered Development Cost Results Eq Required IRR Multiple Total Profit
Harvard Graduate School of Design | Field Study | Fall 2014
8%
Unlevered (20,422,500) 23.54% 2.25 25,427,589
$ Total 3,043,304 3,043,304 100,000 2,550,000 5,000,000 7,500,000 1,515,000 757,500 20,465,804 2,115,483 22,581,286
$ / LF 150 -
$ Total 7,964,775 14,616,511 22,581,286
% Total 35% 65% 100%
$ / Acre 750,000 -
Levered (7,964,775) 31.99% 3.93 23,312,106
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution Summary
Return Metrics Equity Required
Phase 1A
Phase 1B
42,094,759
Phase 2
824,996
Phase 3
12,788,387
Total
7,964,775
63,672,917
Unlevered
15.89%
18.72%
10.47%
23.54%
15.01%
Levered + Subsidy
27.18%
27.96%
23.64%
31.99%
26.05%
Equity Multiple
2.02
Harvard Graduate School of Design | Field Study | Fall 2014
1.64
3.13
3.93
2.23
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang
Execution
TAX FLOWS
Dissolution of TIF district
Summary
$12 million
$10 million
$8 million
5
Tax increment to TIF fund Tax increment retained by jurisdictions
$6 million
$10M+
$4 million
$2 million
PHASE 2
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
$176,672
PHASE 1
3
0
Base tax revenue retained
PHASE 3
Rehabbed Historic Buildings
Increased Tax Revenues
Unique Public Spaces
Environmental Liability
40+
$190M
10,000+
1,000+
Acres of Open Space
Infrastructure Investment
Permanent Jobs
Temp. Construction Jobs
Harvard Graduate School of Design | Field Study | Fall 2014
Andy Cantu | Matt Ciccotti | Feng Shen | Xueshi Wang