Development ProposalTeam 1

Page 2PPPPPPPPPPPaaaaaggggeee 2222222

Table of Contents

3 Executive Summary4 Site Overview5 Culture and Neighborhood6 Design Concept9 The Bridge9 The Plaza10 Development Team10 Development Timeline11 Financial Report

Page 3

The Link on Burnet is a proposal that seeks to bring new use, both physical and social, to Burnet Avenue between Rockdale and Forest Avenues in the Avondale neighborhood. In a neighborhood of 12,500 people, 90% of the neighborhood is black. The median household income is $18,120. However, the proximity of this neighborhood to large employers such as hospitals and universities is significant. This proposal will cater to the working class of Uptown, offering low-income housing. While rent will be subsidized, amenities will be large.

The Link on Burnet is ideal for those with stable low-paying jobs. The commercial space will be best suited for the expansion of a large institution in the area. As Cincinnati Children’s Hospital expands they may be looking for more office space. Being just across the street from their operations, The Link on Burnet would be a prefered location. There will also be a retail component of the project.

The retail would serve the community, and would cater to the needs of those in the surrounding blocks. Convenience stores, coffee shops, a casual restaurant, and a potential gym are the types of tenants which would fill the retail space. The plaza

will also offer a spot for the existing breakfast trailer to continue to serve its patrons, as well as offer plenty of seating in the surrounding area. The highlight of this project is a bridge across Burnet Avenue.

Symbolizing a united uptown Cincinnati community, the bridge component will offer semi-private recreation space as well as an event venue for private and community events. This will generate interest from Avondale and the surrounding neighborhoods. Accessibility to the project will be increased by its position on several Cincinnati Metro routes as well as a parking garage and surface lot which makes getting in and out effortless. This proposal will highlight each of these elements in more detail.

The Link on Burnet isn’t just a new set of apartments and office space, it’s the future of Avondale. The goal of the project is to bring excitement and hype to an area that has seen struggle. This project will be a cat-alyst for interest in Avondale, as much of the uptown Cincinnati neighborhoods will see Avondale as their peer in an increasingly competitive marketplace. This project will bring new life and stability to Burnet Avenue.

Executive Summary

Avondale

Cincinnati Children’s

CincinnatiZoo

Uptown Cincinnati

Burnet Avenue

Page 4

The site is located on Burnet Avenue between Rockdale and Forest Avenues. It is composed of three parcels, Parcels A, B, and C. Parcels A and C are currently owned by Uptown Consortium. The surrounding area is home to Cincinnati Children’s Hospital, Cincinnati Zoo, UC’s Medical Campus, and the EPA. According to OKI, the area receives approximately 7,000 visitors passing by each day, aided by the 46 and 51 bus routes. The Walk Score of the area is 65. Crime rates have been steadily in the area, although the perception of crime may be worse than the actual crime rate. This project will seek to break that perception, while still making conscious efforts to keep its residents and tenants safe.

Currently these locations are open lots. Parcel B has a small convience store as well has a slab for a trailers which serves breakfast. Located next to the development on the eastern side is a cell phone tower. This tower, and it’s easement, are located in Parcel D, which we do not propose to develop.

Site Overview

Current Conditions

Site LocationBurnet Avenue between Forest and Rockdale

CirculationMajor and minor arterials

Page 5

Burnet Avenue has been the historic main street for Avondale; however, years of disinvestment leave much to be desired. The importance of a main street in a neighborhood is vital for a community to interact with each other and for local businesses to be successful. By developing on Burnet Avenue, we can bring more people to this street and make it bustling once again.

As the neighborhood is 90% African-American, our development will seek to lease to African-American owned businesses. The retail component should feel welcoming to all races. Detailing in the project, such as in the public plaza, will feature African touches. A main goal for The Link is to bring people together and make them feel a part of the community. Having a place for everyone to come together is a part of that.

The Cincinnati Zoo is just two blocks away from our development. While the zoo has been a leader in sustainability and environmentalism, our project aims to incorporate green space. Most significantly the greek roof on top of the bridge will make our project more sustainable. We believe this is something the community desires.

Green SpaceNearest and largest being Cincinnati Zoo

Cincinnati MetroLocated along Route 46 and Route 51. Express routes also pass through the area creating the 7,000 visitors this place sees every day.

Land UsesInstitutional (yellow) and Commercial (blue)

Culture and Neighborhood

Page 6

The structure system designed for this construction is steel frame system. The major materials has been selected to this project would be Limestone panel and painted aluminum sun shading. These two major materials create a specific linear horizontal sense of view, which could make the big mass of building look much smaller and less bored. Also, a majority of terraces have been designed as public space for the users to get into nature.

The total building area is 203,750 sq. feet. The reason we didn’t take the chance to use every square footage is that we want to improve the quality living and working in this building. The way to approach it is by creating more interactive space. Like the Plaza and the Bridge. Although we still designed a 4 Floor building in the total height of 47’. The ground floor would be 14’for the reason of retail use. The rest would be 11’per floor. The number of the vehicles would be 225. It is at the corner of Rockdale Ave and Burnet Ave, which is easy to access and won’t cause traffic jam to the main streets. The garage would be connected to the office and residential on the second floor by bridge for safety issue. We have 60,000 sq. feet of residential. They are two one bedroom and two bedrooms.

Design Concept

Page 6

Page 7Page 7

FOREST AVENUE

ROCKDALE AVENUE

ROCKDALE AVENUE

FOREST AVENUE

BURNET

AVEN

UE

GROUND PARKING

RESIDENTIAL

RESIDENTIAL

OFFICE4F

3F

4F

N

4FGARAGE

GROSS SF NET SFFloor 1 Retail 15,000 15,000

39% Floor Residential 15,000 15,000 25% Floor 1 Office 14,375 12,500

7% Total Floor 1 44,375 42,500 29% Floor 1 Parking 19,688 19,688

Floor 2 Resi. 15,000 15,000 Floor 2 Office 14,375 12,500 Floor 2 Parking 19,688 19,688 Floor 3 Resi. 15,000 15,000 Floor 3 Parking 19,688 19,688 Floor 3 Office 14,375 12,500 Floor 4 Resi. 15,000 15,000 Floor 4 Parking 19,688 19,688 Floor 4 Office 14,375 12,500

- Total 211,250 203,750

Total Retail 15,000 15,000 Total Residential 60,000 60,000 Total Parking 78,750 78,750 Total Office 57,500 50,000

Page 8

Page 9

Bridges connect people with each other. Not only will this bridge be a safe way for residents to walk from their cars to their apartments, it will bring new outdoor space to their lifestyles. The bridge is socially inspired by a new wave of inclusivity in the Avondale neighborhood. Avondale is becoming one of the most diverse zip codes in uptown Cincinnati. Architecturally,The Bridge was inspired by the High Line in New York City. While on a smaller scale, there will be beauty in the details as well as the views that the bridge will offer. It will make our project unique and exciting.

We also envision The Bridge to double as an event venue for Avondale Residents. It would be a great spot for family reunions or birthday parties. This venue will also bring added income to the project, which will help cover the costs of management for The Link itself.

The Plaza at The Link will be a public space that will also double as breakfast spot by the existing breakfast trailer. As this spot is already famous for its eatery, we believe it should stay in the community. Improving the spot will help the local business

The Bridge is also a green roof, meaning it help collects rainwater that comes its way. The rainwater that is collected is used to irrigate the grass that is on The Bridge so it doesn’t need to enter the stormwater system. This is good for the environment. It also makes the project more educational, as some residents and visitors mights not be familiar with green roofs.

Additionally, details on the bridge will be symbolic of the different cultures that Avondale has seen throughout it’s history. Each of the landscape pots will tell a story of different people who inhabited the neighborhood. Knowing that there have been some celebrities to come from Avondale, as well as a large Jewish culture and now large African American culture, these should be celebrated by the community.

and draw more attention from those who may live in other uptown communities, such as the CUF neighborhood. By making this a local destination, The Link will be doing its job in bringing people together.

The Bridge

The Plaza

Page 10

ULI Design Competition Students Responcible for design concept and objectivesUptown Consortium Land Owner Equity in development, feasibility studyMKSK Architect Preparing blueprints, cost estimatesAl Neyer, Inc. Developer Oversee aditional land aquisition, constructionUrban Fast Forward Real Estate Lease space to retail tenantsTowne Properties Real Estate Lease apartment space, office spaceCity of Cincinnati Subsidy Partnership for TIFF, low-income housing

Development Team

Development Schedule2015 2016 2017 2018

Urban Land Institute Case Compeition

Land aquisition

Establishing TIFF, Begin premarketing

Finalize ste Planning, design, zoning

Construction

Leasing

The development team will work collaborative with the community to finalize the design, land ownership, construction, leasing, and financials of The Link. The development would open as early as 2018 with a strict timeline. The partnership with the City of Cincinnati will be crucial for this development to occur. For this reason, the timeline may have to be pushed back until that is establised. Partnering architecture, developer, and real estate firms would construct and lease out the space.

Page 11

Project Finances

PROJECT BUDGET ASSUMPTIONSAcquisition Costs Office Build Out 35.00$

Acquisition/Closing 1,100,000 Retail Build Out 35.00$ Carrying Costs - Parking NSF 78,750

Total Acquisition Costs 1,100,000$ Office NSF 50,500 Retail NSF - first floor 15,000

Hard Costs Residential NSF 60,000 Hard Costs 12,550,000 Floors Office 4 Office 5,050,000 Floors Commercial - Retail 1 Residential 6,000,000 Office Rent/SF 17.00$ Retail 1,500,000 Commercial Rent/SF 15.00$ Parking 3,825,000 Streetscape 650,000 COST SUMMARYOffice T/I 1,767,500 Retail T/I 525,000 Acquisition 1,100,000

Total Hard Costs 19,317,500$ Hard Costs 19,317,500Soft Costs 2,858,484

Soft Costs Total Costs 23,275,984$ Architecture/Engineering/Survey 400,000 Title fees 92,067 1ST MORTGAGEClosing costs 20,000 DCR 0.96 Environmental 20,000 Interest 5.00%Interest during construction 691,323 Amortization 25Loan Origination Fees - Term 10Insurance 60,000 PMT 922,223$ Legal Fees 200,000 Loan Amount 13,826,450$ Allocation Fee 240,000 Marketing/FF&E 75,000 Debt Service Reserve - Office 350,000 NMTC EQUITYOperating Reserve 100,000 Total Leverage Amount -$ Real Estate Tax 30,000 Assuming Price/Credit - Inspections 40,000 NMTC's -$ Project Contingency 290,094 Allocation Fee 2% -$ Developer Fee 250,000 Compliance Fee 1% -

Total Soft Costs 2,858,484$ Total NMTC Equity -$

Total Development Costs 23,275,984$ SOURCESTotal Leverage Amount 23,275,984$

Sources Conventional Loan 13,826,450$ Construction loan 13,826,450 LIHTC Equity 2,565,000$ LIHTC Equity 2,565,000 TIF Equity 5,000,000$ TIF Equity 5,000,000 NMTC Equity 1,884,533$ NMTC Equity 1,884,533 Gap Financing Needed or Cushion 0$

Total Sources 23,275,983$

GAP = -$

Page 12

The Link - Operations

Year 1 Year 2 Year 3 Year 4Revenue

Office Rent 858,500 867,085 875,756 884,513 Retail 225,000 225,000 227,250 229,523 Residential 189,000 378,000 513,000 513,000

Parking 405,000 405,000 405,000 405,000 Less: Vacancy

Tenant Reimbursements 222,732 248,967 268,342 269,806 Less: Vacancy - - - - Total Revenue 1,900,232$ 2,124,052$ 2,289,347$ 2,301,842$

ExpensesEGI * 35% 22,500 23,063 23,639 24,230

Total Expenses 1,012,419$ 1,131,667$ 1,219,734$ 1,226,391$

NOI before Debt Service 887,813$ 992,385$ 1,069,613$ 1,075,451$

Debt ServiceOffice Loan 922,223 922,223 922,223 922,223

Interest 615,924 601,853 587,135 571,741 Principal 306,299 320,370 335,088 350,482

Total Debt Service 922,223$ 922,223$ 922,223$ 922,223$

1st Mortgage DSCR 0.96 1.08 1.16 1.17 Total DSCR 0.96 1.08 1.16 1.17

Net Income after Debt Service (34,409)$ 70,162$ 147,390$ 153,228$

Capital Reserve Cont. 30,000 30,000 30,000 30,000Capital Reserve (cumulative) 30,000 60,000 90,000 120,000

Loan BalanceConventional Loan 13,520,152 13,199,782 12,864,694 12,514,212

Total Loan Balance 13,520,152$ 13,199,782$ 12,864,694$ 12,514,212$

OFFICE Construction LoanOffice SF 50,500 Loan Amount 13,826,450$ Office Rent/SF 17.00$ Interest 5.00%Annual Rent Increase 1% Term 10

Amortization 25Retail SF PMT 922,223$ Retail SF 15,000 DSCR (at start) 0.96 Commercial Rent/SF 15.00$ Annual Rent Increase 1% Mini-Perm

Loan Amount -$ Residential Interest 3.00%Residential SF 60,000 Term 10Gross Sales -$ Amortization 30Base Rent 9.00$ PMT -$ % Rent Rate 0%Sale Growth 0%

Page 13

Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

893,359 902,292 911,315 920,428 929,632 938,929 231,818 234,136 236,477 238,842 241,230 243,643 513,000 513,000 513,000 513,000 513,000 513,000 405,000 405,000 405,000 405,000 405,000 405,000

271,285 272,779 274,288 275,812 277,351 278,906 - - - - - -

2,314,462$ 2,327,207$ 2,340,080$ 2,353,082$ 2,366,214$ 2,379,478$

24,836 25,457 26,093 26,745 27,414 28,099 1,233,115$ 1,239,905$ 1,246,764$ 1,253,691$ 1,260,688$ 1,267,754$

1,081,347$ 1,087,302$ 1,093,316$ 1,099,391$ 1,105,526$ 1,111,723$

922,223 922,223 922,223 922,223 922,223 922,223 555,640 538,799 521,185 502,761 483,491 463,336 366,583 383,423 401,038 419,461 438,731 458,887 922,223$ 922,223$ 922,223$ 922,223$ 922,223$ 922,223$

1.17 1.18 1.19 1.19 1.20 1.21 1.17 1.18 1.19 1.19 1.20 1.21

159,124$ 165,079$ 171,093$ 177,168$ 183,304$ 189,500$

30,000 30,000 30,000 30,000 30,000 30,000150,000 180,000 210,000 240,000 270,000 300,000

12,147,629 11,764,206 11,363,168 10,943,707 10,504,975 10,046,088 12,147,629$ 11,764,206$ 11,363,168$ 10,943,707$ 10,504,975$ 10,046,088$

VACANY/EXPENSESExpenses Annual Incr. 2.50%Office Vacancy 0.00%1st yr Residential Vacancy 65.00%2nd yr Residential Vacancy 30.00%Fully Apsorbed Vacancy 5%

PARKINGParking SF 78,750 Parking Spaces 225 Annual Rent 150.00$