Peter porraro, Multifamily Development Today
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Transcript of Peter porraro, Multifamily Development Today
ULI Spring 2012
West Hempstead, Long Island TOD Development
West 130 – TOD Case Study
• Market Analysis - Market Area; Demand Factors; Supply Factors
• Site Selection• Land Use and Zoning• Product Design and Site Plan• Financing and Investment• Construction
MARKETING ANALYSISWest 130
Long Island Regional Map
• Starts just 18 miles east of Manhattan• Two Counties – Nassau (287 square miles) & Suffolk
(911 square miles) • Extensive public transportation network (LIRR) • 1,180 miles of shore-line
Rental Housing - Metrics
Long Island Demographics
Population: 2.8 million
Total Employment: 1.2 million
Unemployment: 7.2%
Average HH Income: $175,000
MF Rental Completions
2006 1,016
2007 -
2008 -
2009 226
2010 -
2011 210Source: Long Island Housing Index 2007; REIS Report 2011
84% of existing rental housing stock was built prior to 1979 (REIS)
SITE SELECTIONWest 130
• 1960’s Hotel• “Hourly Hotel”• Source of crime• Community eyesore
Site Acquisition
West 130 Location Map
Site Aerial
•Station literally outside front door• 50 minutes to Penn Station
Rail and Bus Network
LAND USE AND ZONING West 130
Benefits to Community
• Permanent Closure and Elimination of the Courtesy Hotel and source of crime/blight
• New, Distinctive Gateway to West Hempstead• Creation of Sense of Place: with Attractive Building, Enhanced
Streetscape, and Sidewalk Improvements• New Choice of Upscale Apartment Living• Catalyst for Further Redevelopment and Community Improvements• Revitalization of West Hempstead LIRR train station• Generate a positive trend in neighborhood real estate values• Set example of a Public / Private Collaboration
Entitlement Timeline
March 2006 Purchase Contract
November 2006 Submit Rezoning Application
November 2008 SEQR Approval (State Environmental Quality Review)
December 2008 Adoption of CA-S Zone &Rezoning Approval
June 2009 Site Plan Approval
July 2009 IDA Inducement (PILOT)
October 2010 Building Permit Approval
February 2011 Close and Start Construction
Timeline
Entitlement Process
PRODUCT DESIGN/SITE PLANWest 130
Project DescriptionBuilding Program
Size: 3 Acres
Density: 50 units per Acre
Building Type: 5A Construction4-story over 2 levels parking
Units: 150 Market Rate
Mix: 1 Bedroom: 35%2 Bedroom: 57%3 Bedroom: 8%
Average Unit Size 1,085 SF
Amenities: 4,000 SF Clubhouse; Fitness Center; I-lounge; Café; Wii-theatre; Landscaped Courtyards and Pool
Floor Plan
Underground Parking Garage
FINANCING AND INVESTMENT
West 130
Cost Item Total Per Unit Per SF
• Hard Cost: $28, 500,000 $190,000 $175
• Land/Soft Cost: $15,500,000 $103,333 $ 53
• Total Costs: $44,000,000 $293,333 $228
Average Rent/SF: $2.46
Average NSF: 1,085
Average Rent/Home: $2,670
Units 150
Project Cost Summary
Dollar % of Total Per UnitCategory Amount Cost
DebtTotal Construction Debt: $28, 500,000 65% $190,000
EquityTotal Equity: $15,500,000 35% $103,333
Total Capitalization $44,000,000 100% $293,333
Un-Trended
Yield on Total Project Cost: 8.0%+
Market Cap Rates: 4.75%
Units 150
Capitalization
CONSTRUCTIONWest 130
May 2011
May 2011
May 2011
November 2011
November 2011
August 2011
February 2012
April 2012
Vision Long Island Smart Growth Award Recipient