Calhoun Place Fort Worth, TX
Calhoun Place
Real Estate Development Proposal 1401 Calhoun Street Fort Worth TX, 76102
Master of City and Regional Planning CIRP 5305 Dr. Andrew Whittemore Fall 2012
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Calhoun Place Development Team Ashley Shook
B.A. in Landscape Architecture, Texas Tech University 2009 During her attendance at the University of Texas at Arlington’s City and Regional Planning Masters Program, Ashley has held a position as site planner and designer with t Associates, a small private planning and consulting firm based in Dallas, Texas. Her duties include land use and zoning compatibility for existing and proposed development projects for expedited permitting and zoning cases. She also prepares exhibits for property owners in legal dispute with the State over takings cases by eminent domain. Most importantly, she assesses the future development potential of sites around DFW and prepares conceptual plans based on marketability.
Donato Perez
Bachelor of Business Administration, Texas Christian University 2011. A current student in the City and Regional Planning Program at the University of Texas at Arlington, Donato became interested in real state development as a result of the various finance and real state classes that he took as an undergraduate. Additionally, he is interested in the development of lowincome housing and economic development in the inner-city.
Ken Schmidt
Master of Public Administration, University of North Texas, 2012 B.S. in Environmental Engineering, Michigan Technological University, 2005 Prior to enrolling in the University of Texas at Arlington’s Master of City and Regional Planning program, Ken served for over five years an Infantry Officer in the United States Army. Ken is a graduate of the Infantry Officer Basic Course, Basic Airborne Course, and the US Army Ranger School. Ken served as a Rifle Platoon Leader for over 26 months and is a veteran of Operation Iraqi Freedom. After Ken left the Army as a Captain, he earned a Master of Public Administration from the University of Texas and began his employment as a Senior Planner for the Town of Fairview. In his duties with Fairview, Ken serves as the staff liaison to the Planning and Zoning Commission and is responsible for development review and long-term planning.
Shane Pace
B.A. in Graphic Communications, University of Texas at Arlington 2012 Shane received his Bachelor of Arts in Visual Communications form UT Arlington in 2012 where he has worked as a Graphic Designer for the Vice President of Student Affairs. After completing his first semester in the Master of City and Regional Planning at UT Arlington he will begin working for the North Central Texas Council of Governments as a Bicycle/Pedestrian Land Use Intern within the Sustainable Development Department. He looks forward to developing his knowledge of planning and hopes to work in Urban Redevelopment after graduation.
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Calhoun Place Table of Contents development team............................................................................................................................................. 3 executive summary........................................................................................................................................... 4 proposal overview........................................................................................................................................... 5 location............................................................................................................................................................ 6 site conditions................................................................................................................................................... 7 utilities/Traffic data........................................................................................................................................ 8 land use and zoning entitlements................................................................................................................... 9 development standards.................................................................................................................................. 10 demographics.................................................................................................................................................. 11 office market analysis..................................................................................................................................... 13 comparable office space.................................................................................................................................. 15 retail market analysis..................................................................................................................................... 17 targeted Retail tennants................................................................................................................................ 19 proposed development.................................................................................................................................... 20 site plans......................................................................................................................................................... 20 building renderings........................................................................................................................................ 21 financial data................................................................................................................................................... 25
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Calhoun Place Executive summary Executive Summary
Calhoun Place is a five-story mixed-use retail and office development located in Fort Worth’s downtown district. The development has a gross floor area of 162,000 sq. ft. in and it provides for 137,200 sq. ft. of leasable office and retail space. Each level will provide for a gross floor area of 32,400 sq. ft. and 27,540 sq. ft. of leasable space. Tenants and visitors to the developments will have access to a four level, attached underground parking garage that provides for 269 angled parking spaces. Additionally, the development will maintain additional parking capacity in adjacent parking facilities. The ground floor of Calhoun Place will be reserved for retail uses and the remaining four floors will be used to provide Class B office space to an underdeveloped sector of the downtown district. The retail level of Calhoun Place will eventually be home to a Potbelly Sandwich, Dunn Brothers, Chipotle Mexican Grill, and Gold’s Gym Express franchises. Real Estate Development’s vision for Calhoun Place is to create: A quality mixed-use retail and office development in Downtown Fort Worth that enhances the urban landscape with pedestrian scale amenities, street trees and sidewalk cafes while providing healthy and in-demand working environments. Calhoun Place accomplishes this vision by providing pedestrian oriented urban streetscapes with wide walkway corridors that provide opportunities for outdoor dining, urban landscaping, and a diverse array of hardscape amenities. The architectural components of Calhoun Place will provide for a unique building that will greatly enhance the built environment of this region of the downtown district. Calhoun Place will be an excellent addition to this region of the downtown district as it will complement the adjacent land uses. For students of the Texas Wesleyan Law School and the UTA Fort Worth Center, the retail uses will provide them with opportunities to dine and exercise outside of their respective schools. For commuters that access public transit through the adjacent Intermodal Transportation Center, Calhoun Place will provide them with opportunity to dine and socialize as they carry out their daily commute. Finally, Calhoun Place will contribute to the continued growth of the local economy by bringing additional jobs to the downtown district. The uses being proposed will allow for the continued expansion of commercial development and it will make residential development more feasible in this region of the downtown district.
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Calhoun Place Overview Mission:
The mission of RED Development is to unveil the potential of underdeveloped urban areas by recognizing present and future opportunities.
Vision:
Calhoun Place is a quality mixed-use retail and office development in Downtown Fort Worth that enhances the urban landscape with pedestrian scale amenities, street trees and sidewalk cafes while providing healthy and in-demand working environments.
Development Snap Shot:
• First Floor Retail – 32,400 SF total • 4 Stories of Class B Office Space – 129,600 SF total • Secure Underground Parking • Wide sidewalks with Bicycle Parking • Sidewalk Cafes and Walk-Up Service • Great Access!
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Calhoun Place Location The location of our proposed development is at 1401 Calhoun St., in the southeastern quadrant of dynamic Downtown Fort Worth, Texas. Strategically situated, our site has quick access to Fort Worth’s major highways (I-30, I-35, and 287) and is a couple of blocks away from Fort Worth’s Intermodal Transit Center (a major public transit center in Tarrant County). Our site is immediately surrounded by Calhoun St. to the wests, Jones St. to the east, E. 14th St. to the south, and E. 13th St. to the north. Both Calhoun and Jones St. are one-way streets, moving toward the south and the north, respectively. Traffic signs around our site are limited to two stop signs, one in the corner of E. 13th and Jones St. and another one in the intersection of E. 14th and Calhoun St. Currently, the site’s only existing entry and exit gate is located in the southern end of the parking lot, along E. 14th St. We believe that current traffic circulation patterns and its total occupation of a city block definitely benefit our proposed development’s accessibility and increase its connectivity with Downtown Fort Worth’s major arterials and surrounding highways.
Location Map
Location Map
Adjacent Freeway Access
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Calhoun Place Site Conditions Site Topography
Current Conditions: With a total size of 40,000 sq. feet, the site has a total buildable area of about 32,400 sq. feet. Topographically, our site is fairly flat, lacking any perceivable abrupt changes in its relief. Additionally –as was personally confirmed by Fort Worth’s City officials–, the site is not located in a flood plain and we will not be expected to conduct any environmental mitigation procedures as we proceed with the construction of our development.
We at RED have determined that our site location is ideal for our proposed mixed-use development. Although the site has no built structure within it, it is currently occupied by a parking lot that provides service to Texas Wesleyan University Law School. Surrounded by a decaying metal fence and having a clear need for landscaping (which is currently nonexistent on the site), the sterile parking lot is very uninviting. Additionally, the sidewalks that surround it are old and very run-down, with many holes and dangerous bumps. As a consequence, the site’s current state does not promote walkability for pedestrians, a problem that our proposed development will definitely resolve with renewed sidewalks and ornamental landscaping additions.
Site Size
40,000 Total sq ft 32,400 Buildable
Present Conditions: Current Condition
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Current Condition
Calhoun Place
Utilities:
As confirmed by our group during our Pre-Development Conference in Fort Worth’s City Hall, water, sewer, and storm sewer services are conveniently available for the site. Although the sewer line currently runs through the middle of the site, Fort Worth’s existing TIF program will aid us with its removal and we are not expected to lose any of our financial resources for this purpose. Therefore, our site is well-served by existing infrastructure and we expect no major issues to interfere with our development’s construction.
Utilities
Existing 8” sewer line
Existing 8”water main
Water Will utilize an existing 8” water main adjacent to the site Sanitary Sewer Working with public works dept. to relocate the 8” line Storm Sewer Will utilize existing storm sewer facilities
Traffic Counts:
Calhoun and 12th Street 2,713 Vehicles/Day
Commerce and 15th Street 4,063 Vehicles/Day
Adjacent Uses:
Texas Wesleyan University Law School Daytime Population 3,333 students 165 full-time faculty members
Immediately surrounded by the Tarrant County Bar Association to the north, UT Arlington’s Fort Worth Campus to the East, and Texas Wesleyan University Law School to its southwest, our site’s traffic-generating neighbors provide us with an additional reason to trust in that our site is the ideal location for our proposed development, a mixed-used facility that will definitely better the walkability of this area and aid in the overall process of beautification in the quadrant of Downtown Fort Worth in which it will be located.
UTA – Fort Worth Center 10 graduate level programs offered Fort Worth Convention Center Major convention space for the city
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Calhoun Place Land Use Land Uses:
In the Future Land Use Plan component of the City of Fort Worth’s Comprehensive Plan, the site for which Calhoun Place is being proposed is designated as “Mixed-use Growth Center”. The City of Fort Worth defines Mixed-use Growth Centers as “Retail, services, offices, entertainment, mixed -uses, and multi-family residential; Community Growth Centers are less intensive, and Regional Growth Centers are more intensive”. For the Calhoun Place development, RED is proposing the following land uses: • Retail »» Restaurant, Café, Cafeteria »» Health or Recreation Club »» Retail Sales, General • Office – Class B These land uses conform to the city’s definition of Mixed-use Growth Centers, and thus, fully conforms to the Future Land Use Plan. With the existing land uses on the property (private parking) not conforming to the Future Land Use Plan, this proposed development should be welcomed by the city and the adjacent property owners.
Zoning:
The existing zoning for the propose Calhoun Place development site, is the Central Business (H) District. The purpose of this district is “to provide a specific central business district zone for the more intense use of all commercial uses permitted in previous commercial districts; providing less restrictive height and area regulations; and such uses accessory thereto”. The Central Business (H) District provides for very limited land use and area requirements. Generally, all but the most intense commercial and industrial land uses are permitted by right in this zone. There are no building height or parking requirements, and very limited building setback requirements that will not impact the proposed Calhoun Place development. Calhoun Place fully conforms to the Central Business (H) District, as the uses being proposed are permitted by right in this zone, and the very limited area requirements will not impact any portion of the proposed development.
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Calhoun Place
Development Standards:
The proposed development site for Calhoun Place is located within the Downtown Urban Design District (DUDD) overlay district. As a result any proposed development for this site is subjected to the DUDD standards and guidelines. The City of Fort Worth established the DUDD in order to: 1. Promote pedestrian oriented urban form; 2. Maximize connectivity and access; 3. Require excellence in the design of the public realm; 4. Support existing downtown businesses; 5. Encourage adaptive reuse and support the preservation of historically significant buildings; 6. Encourage creativity, architectural diversity, and exceptional design with the Downtown District. The DUDD standards and guidelines provide requirement and recommendations to the prospective developers for the following design components: • Walkway Corridors • Building Edge Design • Street Grid and Parking • Signage Each proposed development within the DUDD is required to be reviewed by the Downtown Design Review Board prior to securing building permits. RED intends to submit a development plan that fully conforms to DUDD standards, however, Calhoun Place will not provide for all recommendations included in the DUDD guidelines. For a more detailed view of how Calhoun Place conforms to the aforementioned design components, please reference the development plan that can be found below.
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Calhoun Place Demographics Age Distribution:
As can be expected, the Downtown District of Fort Worth possess demographic characteristics that are similar to other major commercial and entertainment districts. In a district that is dominated by commercial business, entertainment, and universities, it is fair to expect that the population will be on the younger end of the aging spectrum.
Source: DFWI
As can be seen in the chart at the right, 50% of Downtown Fort Worth residents are 34 or younger and only 29% are 50 or older.
Income Distribution
Source: DFWI
In a district that only provides enough housing to support 5,700 permanent residents, it is safe to assume that demand for housing is high, considering the large workforce that the downtown economy supports. With demand for housing high, and supply low, housing costs can be expected to increase. As a result, the household income distribution within the downtown district will be skewed towards the higher end of the income spectrum. As can be seen in the chart to the right, over 50% of Downtown Fort Worth households have a household income that is greater than $100,000 and 15% of are greater than $200,000.
Educational Attainment:
Source: DFWI
High household incomes within a specific area are typically be positively correlated with a high degree of educational attainment, and Downtown Fort Worth follows this trend. As can be seen in the chart below, nearly half the residents of Downtown Fort Worth have a Bachelor’s Degree and over a third of all downtown residents have a Master’s and/or a Professional Degree.
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Calhoun Place
Population Growth:
Texas is predicted to have the largest population growth in the US in 2011, with the DFW metropolitan area predicted to be the fastest growing metropolitan area in the nation. Specifically, Fort Worth is predicted to grow by 39.1 percent. This high rate of growth will drive the need for additional employment opportunities in Fort Worth again supporting the need for the proposed development.
The Daily “Surge”
Each day, Fort Worth’s daytime population represents a daily population surge of 14% of the city’s residential population (DFWI). This indicates that the city’s population increases from 746,290 to 850,770 (DFWI). While this represents the daytime population surge for the entire city, it can be expected that much of this population surge occurs within the downtown district. This population surge within the downtown district is caused largely by the large workforce that is present in downtown district. Additional factors that may be attributed to this daytime surge include:
• • • •
Higher education (Texas Wesleyan, UTA, and Tarrant County College) Tourism (multiple conference and event centers) Entertainment (restaurants, bars, Sundance Square) Public Transit (Intermodal Transit Center, Trinity Railway Express)
Demographics Summary:
Downtown Fort Worth is primarily populated with young, high-earning, highly educated individuals who seek to live, work, and play within a major commercial business and entertainment district. Each day, the downtown population swells significantly due to a large influx of commuters and visitors that go to downtown to work, socialize, and learn. The uses being proposed for Calhoun Place will provide current residents, commuters, employers, and visitors with convenient retail amenities in an area of downtown where retail development is sparse. The office space that is being proposed will create new jobs and provide for further expansion of the rapidly growing downtown economy.
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Calhoun Place Office Market Occupancy Rates:
High occupancy rates are another indicator that the office market is strong in Fort Worth. With office rates hovering around 90%, Downtown Fort Worth again proves to have a strong demand for quality office space. As of 2011 Downtown Fort Worth‘s overall office occupancy rates were was at 89.5%. This above average rating provides the supporting evidence needed for investment in office space in this area.
National and Regional Comparisons:
It is also important to measure the office market in Downtown Fort Worth by comparing it to national averages as well as to its closest comparable city, Dallas. This allows us to see the broader scale in which the local market is positioned and again provides the supporting evidence needed to promote investment in Calhoun Place. In comparison to Downtown Dallas, in 2001 Downtown Fort Worth was 15.8% higher in overall office occupancy rates and 1.8% higher than the national average.
Class B Rental Rates:
Finally, we look at the rental rates in Downtown Fort Worth to provide financial incentives for investment in Calhoun Place. Downtown Forth Worth currently has 37 Class B office buildings with the Class B average rental rate as of the Third Quarter of 2012 at $19.42 per square foot. In comparison to the surrounding metro area office corridors illustrated in the chart to the right Downtown Fort Worth ranks third in Class B rental rates only a few dollars lower per square foot than the highest ranked area. Notably, Fort Worth has close to three dollars higher average Class B rental rates than Downtown Dallas.
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Calhoun Place Office Market Targeted Office tenants: Potential Class B Office Tenants • Attorneys/Law Firms • Accounting Firms • Oil and Gas Companies • Tech Companies • Medical and Dental • Education • Flex Space
Office Market Summary:
The market for office space in Downtown Fort Worth is exceptionally strong. With 18 Fortune 500 companies headquartered in the Dallas-Fort Worth metropolitan area Fort Worth is positioned as a center for future growth. These top performing companies support many ancillary businesses in the advanced services sector thus creating the demand for viable office space within close proximity. In 2011 Dallas-Fort Worth was the second highest ranked metropolitan area in number of private sector jobs created with 62,500 created. In comparison with the national average of 87.7%. In 2011 Downtown Fort Worth had 37,503 Private Sector employees with an annual payroll of $2,625,288,000 and an average payroll per employee of $70,002. This above average payroll shows the strong business presence in Downtown Fort Worth.
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Calhoun Place Office Market Office Comparisons:
In order to establish the validity of our marketing claims we searched for similar sized Class B office space within the Downtown area in close proximity to our proposed development. This research provided us with the insight that the nearby buildings are very old and do not offer the much desired amenities which Calhoun Place will offer. These buildings also bring in rental rates on the low end of the spectrum. In comparison some of the newer Class B buildings just blocks away offer the look and feel that the office market desires. The updated facades and the updated buildings provide the amenities as well at generating rental rates in excess of the Downtown average. This leads us to the conclusion that with the new development offering the look and feel that the area desires will allow us to generate the rental rates needed to produce the desired profits.
Office Comparisons Winfield Place-‐ A. 206 E. 8th Street Water Gardens Place -‐ B. 100 E. 15th Street Caceria Building -‐ C. 500 Commerce Street The Virtuoso Building -‐ D. 505 Main Street
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Leasable Area
% Leased
33064 sq ft.
84%
90979 sq ft.
Rental Rate
Year Built
Stories
$14.50
1919
4
85%
$14.50
1924
6
87613 sq ft.
86%
$26.50
1924
7
59313 sq ft.
96%
$21.00
1996
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Calhoun Place Office Market
Water Gardens Place Winfield Place
Carceria Building
The Virtuoso Building
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Calhoun Place Retail Market Consumer Base:
Consumers are the key to a successful retail market. On average there is an inflow of 52,648 employees into Downtown Fort Worth on a daily basis. This provides a large customer base to support the retail operations proposed in this project.
Retail occupancy rates:
The chart to the left demonstrates the competitiveness of the retail market in Downtown Fort Worth by illustrating that retail occupancy rates are at 92.7 percent, only 4 percent lower than the national average and 1.5 percent higher than the DFW metropolitan region as a whole. The ability to be competitive in both the regional and national retail markets, shows that there is true demand in the proposed location.
Retail Rental rates:
Again, we look at Downtown Fort Worth in relation to surrounding retail areas in an effort to gauge the strength of the retail market. In doing so we see that Downtown Fort Worth has an average retail rental rate of $20.37 per square foot. This places our proposed development in a prime location for a successful retail environment.
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Calhoun Place Retail Market Overall Retail Sales:
Another supporting statistic for the retail sector is that overall retail sales in 2011 were up to an all time high of $79.2 million. This number is based on both consumer goods retail and food services. Record numbers provide solid information in support of investment in the retail market in Downtown Fort Worth which is exactly what Calhoun Place is intended to capture.
Restaurants:
Restaurants are a vital portion of the retail sector, and Fort Worth has a strong demand for restaurants. These needs range from daily lunchtime eating establishments to support the business sector as well as the need for leisure and social establishments to support the existing demographic makeup of the area. In 2011 full service restaurants in Downtown Fort Worth generated $46.6 million dollars. Downtown Fort Worth has a healthy mixture of restaurants and retail all providing for the needs of the strong consumer base located here.
Restaurant Visits:
In an effort to support our argument that the restaurant segment of the retail sector is strong we also looked at the average monthly visits to downtown restaurants by downtown residents in 2011. These numbers showed that there were a total of 20.2 visits per month by these residents and an average of $69.20 per visit.
Retail Summary:
Similar to the office market, the retail market in Downtown Fort Worth is very strong as well. With the demographic information provided as well as the market information it becomes obvious that there would be a high demand for retail services. The above average incomes, high levels of education, youthful population , and high levels of office occupancy within Downtown Fort Worth all come together to create a substantial base for a strong retail market. This market will provide the needed demand to satisfy the retail segment of Calhoun Place.
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Calhoun Place Retail Market Targeted Retail Tenants:
Calhoun Place will target the tenants listed below in an effort to provide the necessary amenities to support both the office tenants within the building as well as the surrounding existing facilities such as the nearby colleges and convention center. Below we have provided a list of targeted office tenants and their preferred location, building size, demographics, and the projected rents generated at Calhoun Place.
Potbelly Sandwich Works:
Prefers city/urban areas, colleges Preferred building area between 600 - 1,800 sf (min. 20’ frontage) Acceptable rent between $2,500 - $8,000/mo. Calhoun Place Rent: $3,838.50/mo. for 1,800 sf
Chipotle Mexican Grill:
Urban with strong daytime population Preferred generators: office, retail, university Preferred building area between 1,000 – 2,800 sf (min. 25’ frontage) Calhoun Place Rent: Between $3823.50 – 5,947.67/mo. (1,800 sf – 2,800 sf)
Dunn Bros Coffee:
Preferred building area between 1,600 – 2,000 sf (min. 20’ frontage) Must be on the “AM-drive side” of the street Avg. household income of $60,000+ High daytime density/pedestrian traffic and outdoor seating Calhoun Place Rent: $3,412 - $4,248.33/mo
Gold’s Gym Express:
Preferred building area between 10,000 – 20,000 sf (Express Gym) Calhoun Place Rent: $21,242 – $42,483/mo.
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Calhoun Place Proposed Development Overview:
Calhoun Place is a five-story mixed-use retail and office building with a four-story underground parking garage. Its prime location between Jones St. and Calhoun St., and 13th and 14th Street is one block from the Fort Worth Convention Center, one block from the Intermodal Transit Station and sits adjacent to two University remote campuses. This quality development has great visibility and serves to promote connectivity and increased social interaction among the existing commuter population. With 32,400 sf of first floor retail and enhanced public space, a lively atmosphere will flourish and promote future investment.
Ownership Structure:
The proposed ownership structure is fee simple; absolute ownership to the limitations of police power and eminent domain. The following proforma proves the feasibility of this development, the next great addition to the near south side of Downtown Fort Worth.
Parking:
With no specific required parking ratio, this development proposes adequate parking for office and retail tenants and their customers. In addition to the 25 total on-street parallel parking options along all four streets, there is a four-story underground parking garage with 269 spaces available. There are 36 assigned spaces in the adjacent parking garage also available. Furthermore, in exchange for rentable office space, Texas Wesleyan Law School offers 75 spaces for day-time use.
Site Plan:
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Calhoun Place Proposed Development Building:
The building is a modest five stories that blends well with surrounding structures. Its stone and brick walls complement the area by continuing the theme of classic yet simple architecture. The streetscape promotes opportunity for sidewalk cafes and walk-up service bars for people on the go. Attractive street trees and lamps line the street with pedestrian amenities such as benches, movable seating, shade umbrellas, and convenient trash and recycling receptacles.
Calhoun Place
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Calhoun Place Proposed Development Jones Street
14th Street
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Calhoun Place Proposed Development 13th Street
Calhoun Street
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Calhoun Place
Trees:
The street trees along 13th and 14th are Lacebark Elms for their attractive bark that enhance the urban landscape even in winter when it looses its leaves. In the colder seasons, these trees allow the sun to naturally warm outdoor cafes on the north and south side of the building so people can enjoy year round outdoor dining. Jones Street and Calhoun Street are lined with evergreen Live Oaks to shade the building from the early morning sun on the east side and the setting sun in the west. This will help to reduce electricity consumption and subsequent energy bills. Both trees do surprisingly well in urban environments and can tolerate the drought conditions of North Texas.
Façade Materials:
Red Brick
Precast Stone Veneer
Amenities and Bicycle Parking:
Calhoun Place promotes and encourages Fort Worth’s strong bike culture by providing sidewalk bicycle parking with chic aluminum rings as well as protected on-street bicycle parking. The rings are located between street trees and acorn lamps so pedestrian traffic is not impeded upon. Along streets with heavy pedestrian traffic and sidewalk cafes, on-street parking is available in what would otherwise be a parking space for a single car. This space can hold up to 12 bicycles, or 12 customers, rather than a car with a maximum of 4 potential customers.
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Calhoun Place Financial Data
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Calhoun Place
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Calhoun Place
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Calhoun Place
Proforma Summary:
As can be seen in the above proforma, Calhoun Place is a financially viable development that achieves a 28.50% IRR. With the land being purchased at market value from the existing owners, and the construction costs being forecasted based off typical costs found within the Dallas-Fort Worth region, total development costs for Calhoun Place are projected to be $22,704,512. Utilizing the projected lease values and vacancy rates that were found through the market analysis, it was determined that the initial Net Operating Income for Calhoun Place is projected to be $1,966,484.72. With a loan-to-value ratio of 85%, the development will require a $19,298,835.20 loan, which will require an annual debt service payment of $1,593,050.85. With this debt service payment, the initial Before Tax Cash Flow for Calhoun Place will be $335,671. At the end of year 5, the Calhoun Place will be valued at $26,085,616.50 and will have $15,739,231.94 of principle and interest remaining on the loan. Following the sale of the property and the payoff of all debts associated with the property, there will be a return of $10,881,920.02 for Calhoun Place. After deducting the equity provided to finance the project, the return to Calhoun Place investors will be valued at $7,476,243.22.
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