We DID it!-Setting the stage for East Harlem's success

SETTING THE STAGE FOR EAST HARLEM’S SUCCESS

TRANSIT-ORIENTED DEVELOPMENT Prof. Kate Ascher Srujana Bhoopanam | Eri Furusawa | Patrick Li | Charles Romanow

FALL 2017

VISION

A destination reinvigorated, capitalizing on East Harlem’s cultural assets, and activating underutilized space.

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EXISTING CONDITIONS

View from the platform of the southeast corner

Parking spaces under the viaduct looking south

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Transit Connections

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JOBS UNEMPLOYMENT RATE

HOMELESSNESS

EMPTY STREETS

EAST HARLEM

12% MANHATTAN

8% NYC

11% 5

PRECEDENTS - Retail under the viaduct

Akihabara, Tokyo

http://www.aran.or.jp/works/4196.html http://www.buaiso.net/intercity/travel/8105/

54,000 square feet 6

THE ARTS - EAST HARLEM’S CULTURAL ASSET

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Special 125th Street District This project builds on the Special 125th Street District zoning that promotes arts uses: the site will contain a performing arts center that capitalizes on its prime location within the city and will become a destination.

Special 125th Street District Blackpebble sites

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PROPOSED PHYSICAL INTERVENTION STEPPED TERRACES Provide views of the central plaza

GREEN STRATEGIES Make the project more sustainable

CENTRAL Plaza Connect both sides of the site

MIXED USE Complement the performing arts center with other uses

ICONIC MASSING Development that will become the icon of East Harlem

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PROGRAMMING USE

AREA (SF)

PERCENT

ARTS

228,000

30%

RESIDENTIAL

167,000

22%

OFFICE

152,000

20%

HOTEL

91,000

12%

RETAIL

61,000

8%

COMMUNITY

61,000

8%

TOTAL

760,000

100%

RESIDENTIAL MARKET (75%) AFFORDABLE (25%)

AREA (SF)

UNITS

CONDO

125,000

125

100%

42,000

42

20% 10

VIEWS 1

3

1. Activating central corridor

2 2

1 3

2. Accentuating plaza in front of the performing arts center..

3. The connection from both the sides of site to the central corridor provide a semi - open space below it.

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SITE PLAN - MTA CONNECTIONS & OPEN SPACE

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MNR

WeDIDit!

SAS

to Second Avenue Subway

Connection with existing basement level of Metro North

Direct connection to Offices & Commercial and Hotel

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DEVELOPMENT BUDGET & FINANCING USES Acquisition Price (of 3 lots) Hard Cost ($300 per buildable SF) Sound Proofing Premium (2% of Hard Cost)

SOURCES $9,800,000 $228,123,000 $4,562,000

Soft Cost (30% of Hard Cost)

$68,437,000

Contingency (10% or Hard Cost)

$22,812,000

MTA Improvements ($90 * 120,000sf)

$10,800,000

Developer Fee (4% of Hard Cost) Total

Permanent Loan (70% LTC)

$241,237,000

Equity

$103,388,000

Total

$344,625,000

$9,125,000 $344,625,000 14

FINANCING STRUCTURE

Based on: ・Transit connectivity ・Homelessness

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SUMMARY OF BENEFITS MTA benefits from: ● Easements ● Increased ridership ● Subway improvements ● Ownership of central plaza above the viaduct ○ Maintained by Blackpebble In exchange for: ● Approval of discretionary development ● Construction over viaduct ● MNR & SAS connections

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Developer financed streetscape improvements

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Revenue from DID to support community services ○ ○ ○

● ●

Revenue from development Increased number of visitors from subway construction and improvements

●

Retail, education, art, employment Improved transit and streetscape Homeless Services

Increased affordable housing

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Thank you!

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APPENDIX: ARTS FACILITIES DUE DILLIGENCE Performing Arts Centers in NYC Number of Seats

Address

Lot Area (SF)

Lot Area per Seat

Apollo Theater

1,506 253 w 125

17,454

11.59

Beacon Theater

2,894 2124 bway

9,116

3.15

Playstation Theater

2,100 1515 bway

65,765

31.32

575 6 delancey

3,033

5.27

27,618

9.85

400 431 w 16th

6,884

17.21

1,025 17 irving pl

7,323

7.14

246,874

11.88

Bowery Ballroom Carnegie Hall Highline Ballroom Irving Plaza MSG

2,804 881 7th

20,789 4 penn plaza

Roseland Ballroom

3,200 239 w 52

29,125

9.10

Town Hall

1,495 123 w 43

12,563

8.40

Webster Hall

1,500 125 e 11

9,000

6.00

499 127 e 23

5,613

11.25

Gramercy Theater

Average

11.01

Median

9.85 18

APPENDIX: SITE FINANCIALS BACK OF ENVELOPE FEASIBILITY

A positive spread suggests that the project is feasible, but more in-depth analysis would be required to obtain reliable return approximations.

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APPENDIX - FINANCING STRUCTURE (Nov 30 version)

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APPENDIX - SITE FINANCIALS (Nov 30 version) PROGRAM MIX

FEASIBILITY

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APPENDIX - FINANCIAL ANALYSIS (Nov 30 version)

Income to SAS from !building’s MTA share

Income to SAS from !building DID tax revenue

Income to SAS from remaining DID tax revenue 22