Water Tower Forum Problems)• Excessive&vacancy&• Ulta&dark&• Poor&merchandising&• Parking&Solu,ons)• Redevelopment&of&Border’s&Box&• Modify&Ulta’s&rent&structure&• Promote&crossGshopping&• Parking&garage&
Strategic Goals
Primary&Goals&
Increase&value& Maximize&revenue&
Effec1ve&merchandising&&
Promote&crossGshopping&
Demographics
80%&White&Collar&
$87K&Average&Income&
63%&Educated&
71%& $84K& 49%&
67%& $78K& 44%&
1mi&&
3mi&&
5mi&
Legend&
Current&Tenants&
size& &=&%&of&Total&SF&&
Health&Ra1o=&Annual&Rent/&Annual&Sales&&
21.3%&5%&
Legend&
Projected&Tenants&
size& &=&%&of&Total&SF&&
Health&Ra1o=&Annual&Rent/&Annual&Sales&&
21.3%&5%&
Pier 1 Development
Redevelopment&costs:&$32,960&
• $20,000:&electrical/u1li1es&• $12,960:&2x&108&LnFt&wall&($60/LnFt)&
Tenant Development Vacant&Space:&DG111&&• Redevelopment&costs:&$22,400&
• $20,000:&electrical/u1li1es&
• $2,400:&40&LnFt&wall&($60/LnFt)&
Tenant Development Vacant&Space:&AG107&&&AG109&• Redevelopment&costs:&$26,480&
• $20,000:&electrical/u1li1es&
• $6,480:&108&LnFt&wall&($60/LnFt)&
Development: Lots 2 & 3 Restaurants&
• Lot&2:&$173.20/SF&to&develop&
• Lot&3:&$161.32/SF&to&develop&&
• 9%&to&10%&return&• Two)$150,000)Ground)
Leases)
Development: Lot 1 Parking&Garage&
Funded&by&Midtown&University&
$100,000&Ground&Lease&
4&Levels:&2&University,&2&Water&Tower&
223&Parking&Spots&added&
Total Costs
$8,331,448&• Tenant&Allowances:&$40/SqFt&(Microsob&$100/SqFt)&
• 6%&Leasing&commissions&• Average&rental&rates:&
• Previous&tenant&average:&$28.21/SqFt&
• New&tenant&average:&$32.70/SqFt&
• 16%&increase&
Municipal Parking
• 4.5&for&Retail&• 9.5&for&Restaurants&• Current&parking&ra1o&2.6:1,000&SqFt&
Standard&Parking&
• 223&parking&spots&added&to¢er&• Projected&parking&ra1o&4.1:1,000&SqFt&
Stabilized&Parking&
Management Ulta Beauty Problems)• Decreased&traffic&• No&crossGshopping&&Strategy)• Restructure&lease&
Capital Markets
Current&ValueG&$20,464,035&• Value&PSF:&$130.90&
Stabilized&ValueG$59,859,649&• Value&PSF:&$343.75&
Valua1on&
Capital Markets Financing
LTV:&55%&&($32,922,807)&
Interest&Rate:&4%&for&5&years&10&year&term&
Amor1za1on:&30&years&
The New Water Tower Forum
• Redeveloped&Border’s&Box&• Successful&reGmerchandised¢er&
• Tenants&with&healthy&sales&• An&open,&opera1ng&Ulta&genera1ng&foot&traffic&
• A&vibrant¢er&with&a&successful&future&