RE seatmtft

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Information about RE seatmtft

Published on April 22, 2008

Author: Gourangi


Slide2:  Location Alaska Way Seneca Spring Slide3:  15 Stories 285 Condos 19,125 SF of retail 376 Parking Stalls 46 on site –330 in garage 1.3 Stalls per Unit View Easement Overview 285 Condominiums Building Envelope:  Building Envelope 5:1 FAR : 180,000 SF (Office/Hotel) Residential & Retail Non-Chargeable to FAR 160’ Height Limit View Corridors on Seneca & Spring 40’ Setback at 60’ Height Maximum Envelope Setback Depth on View Corridors Aerial View:  Aerial View Massing:  Massing Street Activation:  Street Activation Design Strategy-Tower:  Design Strategy-Tower Ground Floor Parking-46 Spaces Retail-19,000 SF Dual Lobbies Garage access Waterfront access Café Restaurant Health Club Spa Slide9:  Floors 2 – 5 ~ 104 Units Floors 6-14 ~ 171 Units Floor 15 ~10 Penthouses Design Strategy Slide10:  Design Strategy CITY ELLIOTT BAY Slide11:  Design Strategy CITY ELLIOTT BAY Slide12:  Design Strategy Sustainability Strategy:  Sustainability Strategy LEED GOLD RATING LEED Cost: 1.8 % of Total Construction Costs $5,000 per unit cost $15,000 premium pricing Faster Absorption by 2-3 Months Lower Utility Expenses Projected $130,000 annual savings $450 per unit Market Attraction 1st Residential Gold Rating Garden Roof Terraces Rainwater Cistern Sustainability Strategy:  Sustainability Strategy High Efficiency Boilers/Chillers Low Skin-To-Floor Area Ratio Integrated PV Sun Shades High Performance Glazing Heat Recovery System Garden Roof Terraces Sustainability Strategy:  Sustainability Strategy Interior Low Toxic Paints/Finishes Bamboo/Wool Carpet Flooring Thermal Comfort Elliott Bay Garage:  Elliott Bay Garage Elliott Bay Garage:  Remove Tennis Court Add 70 Spaces Add Keycard Entry Gate Eliminate Parking Attendant Glass Elevator Lighting & Security Elliott Bay Garage Market Strategy:  Market Strategy Echo Boomer & Creative Class Workforce – 25 to 40 Target Dual Markets Spread Risk Speed Absorption Set Lower Price Points than Competitors Target Middle Market Segment underserved by Competition Capitalize on Waterfront & Downtown Location Median Price $477,000 Market Strategy – Income:  Market Strategy – Income Market Strategy – Age Groups:  Market Strategy – Age Groups Market Strategy – Unit Prices:  Market Strategy – Unit Prices Price 20% of Units Under $325,000 Price 40% of Units Under $400,000 Price 55% of Units Under $500,000 Market Strategy – Unit Size:  Market Strategy – Unit Size 25% Units < 650SF 61% Units <1,000SF Competition:  Competition 2nd & Pike Target High Incomes Madison Tower Average -$800 PSF Pine & 2nd $550,000 to $5 M Four Seasons Average - $2,000 PSF 1521 Average -$800 PSF Market Strategy – Pricing:  Market Strategy – Pricing Price Each Unit By Location, Views, Size, Elevation, Terraces Economic Strategy:  Economic Strategy East Lot has no Redevelopment Value due to View Easement Add 104 Condo Units Sales Value: $44 M Lease 330 Spaces in Garage and sell 46 On-Site for $40,000 each Sell Capitalized Garage Income Stream with Bond-Like Returns Economic Strategy:  Economic Strategy Verify Each Hard & Soft Cost Assumption With Professionals Use All $20 Million Equity Set Construction Loan at 85% LTC and 72% LTV Eliminate Expensive Mezzanine Debt Economic Strategy:  Economic Strategy Apply Cash Flow Model to Determine Land Financing Costs 19% Required Margin on Cost West Lot: 12.1 M East Lot: 7.9 M Total Residual Land Value $20 M Residual Land Value: Total Costs Less Land: $117,444,774 Total Income: $164,166,768 Gross Profit: $ 46,721,994 Required Developer Return: $ 26,721,994 Residual Land Value: $ 20 Million Economic Strategy:  Balance Returns With Risks Economic Strategy Mitigate Offsite Parking Risk With Hotel-Style Concierge Entry Mitigate Market Risk With Dual Market Strategy Mitigate Construction Risk With Negotiated Arch. & GC, GMP Contracts Mitigate Financial Risk With Garage Income During Construction Absorption Strategy:  Absorption Strategy Plan 36 Month Development & Absorption Period Speed Absorption With Lower Price Points Than Competitors Create $1.25 Million Brand Marketing Budget & Open Sales Office Before Construction Use Onsite Sales Agents to Lower Co-op Commission Costs Project Timeline Evaluation Criteria:  Evaluation Criteria Site & Market Driven Logic Joint Garage & Site Development Improves Feasibility Design Transforms View/Zoning Restrictions Into Assets Design Increases Density From 5:1 FAR To 345 Units/Acre Seattle’s First LEED Gold Residential High-rise Dual Market Strategy Targets Underserved Market Segments Evaluation Criteria:  Evaluation Criteria Innovative Parking Strategy Doubles Garage Value Each Risk Mitigated By Each Development Strategy Profitable Returns: 19% Un-leveraged Cost Margin 35% Equity IRR Public Benefits, $1.3 Million Annual Tax Revenues, and Adds Mid-Market Housing Slide32:  Anil - market analysis Brad - financial modeling Brian - zoning/schematics Erik - market analysis Loriel - graphic support Nic - construction Nicole - sustainability Will - faculty advisor The Portland Group, LLC

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