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Ch 11Residential Land Uses

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Outline

I. Types of Residential DevelopmentII. The Real Estate Development ProcessIII. Millford Hills Case StudyIV. US Assets Group

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I. Types of Residential Development single-family detached houses single-family attached houses

row houses/townhouses plexes patio or zero-lot-line houses

multifamily residences (rentals, condos or coop) garden apartments (2-3 floors) mid-rise apartments (4-8 floors) high-rise apartments (> 8 floors)

manufactured homes second homes (timeshare concept)

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II. The Real Estate Development Process

I. concept development II. feasibility analysis

- legal analysis (zoning compliance) - market analysis:

delineation of the market areaanalysis of demand & supply factors:

employment

disposable income

population

household characteristics

absorption rate competing projects

other

- financial analysis III. development of land & building or improvements IV. marketing/selling

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III. Millford Hills Case Study

Real Estate Today Feature p. 236Milford Hills Project involves the purchase of a piece of land and a house for $ and the sale of lots at $30,000 each.- What are some important observations from the financial analysis? 1. Is this a good analysis? Why?2. When do cash inflows start?3. What is the largest cumulative negative CF and when does it occur?4. What are 2 characteristics of the real estate development industry?

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V. US Assets Group Developers vs. Builders US Assets Group – Background Information Projects:

- Hunters Green (Tampa)- Vizcaya (LBK)- En Provence (LBK)- Beau Ciel (Sarasota)- Orchid Beach Club (Lido Key)- Founders Club (Sarasota)

Important Factors for Success- Market knowledge and experience is very important- Stay in your geographic area of expertise

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Ch 12 Commercial and Industrial Land Uses

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Outline

I. Shopping Centers II. Office BuildingsIII. Industrial FacilitiesIV. Lodging FacilitiesV. Special-Use Properties

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I. Shopping Centers

Shopping Centers grew after the advent of which invention?

Types of Shopping Centers: → neighborhood shopping center

(30,000-100,000 SF leasable area, on 4-6 acres)

→ community shopping center (discount or junior department store: 100,000-300,000 SF leasable area, on 10-30 acres)

→ regional shopping center (1-3 full-line department stores:300,000-750,000 SF, on over 30 acres)

→ super-regional shopping center (4 or more full-line department stores: 750,000-1,000,000 SF)

→ other types of shopping centers- factory outlet centers- specialty shopping centers

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Shopping Center Development

Important factors in the feasibility analysis: trade areas (primary and secondary) market size competitive survey site location tenant selection

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II. Office Buildings

Office buildings are categorized by:→ quality and amenities (class A, B, C, D)

→ location central business districts (CBD) secondary office nodes office parks

→ single vs. multi-tenant buildings

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III. Industrial Facilities Types of businesses:

- manufacturing - warehousing- distribution - garage space - research & development

Important Issue: PollutionCERCLA (Comprehensive Environmental Response Compensation & Liabilities Act of 1980)Includes:

National list of polluted properties Innocent landowner act

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IV. Lodging Facilities

Types of Lodging Facilities:→ commercial/convention hotels→ highway or airport hotels and motels→ resort hotels → extended stay hotels Risk level of hotels Ownership of Marriott and Ritz Carlton

hotels

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V. Special-Use Properties Examples:→ hospitals→ nursing homes→ schools→ marinas→ power plants→ sports complexes

Key variables for a market analysis of a baseball stadium