Presents...
Luke Mooney, Claudia Garcia, Abby Sheehy, Brandon Williams, Carly Perrmann
Inspiration
2810 Stratford Avenue Apartments In a similar market Capitalizing on Rapid UC Student growth Using Similar Development Techniques
Cost Analysis of 2810 Stratford Land Costs: $1 million ● ●
Bought in 2017 Two parcels with homes on them
Construction Costs: $5 million ●
25 Units and clubhouse
Soft Costs: ~1.5 million
Total Costs:
$7.5 million
Assumptions From Trusted Research Methods
Land Acquisition Cost Hamilton County auditor’s website
Operation Expenses Analyzed comparables in our market through Yardi.
Projected Revenue Researched comparables through Yardi and CoStar. Met with developers and industry professionals.
Design ArcGIS was used for site analysis and SketchUp was used to design our product.
Market Research
MARKET DEMAND - 3 mile radius
University of Cincinnati
1
● ●
Record enrollment Demand for student housing
Medical Students
2
● ●
3
● ●
~1 mile to UC Med 1/4 mile to Christ
Hub for Young Professionals
More affordable option Central to hospitals & businesses
Demographics - 3 mile radius Population…………………………………………129,499 5 year projection……………………………..133,801 Density (sq. mile)..................................4,733
Median Household Income……………..$37,000 Number of Single People………………...64,770 …………………50%
Number of people in household structures with: ● 2-49 units……………………..29,521 .……………………..50.9% ● 50+ Units……………………….9,508 ……………………….16.4% Number of Car Transportation……...45,000 ………65.6%
Location Benefits ● Walking Score: 93 (Walker’s Paradise) ○ Inwood Park..…………………….5 Mins ○ Kroger..……………………………...5 Mins ○ Calhoun & Short Vine.........10 Mins ○ UC Uptown Campus............12 Mins ○ UC Med Campus...................18 Mins
Location Benefits ● Major Highway Access ○ I-71 ○ I-75 ○ Columbia Parkway ○ I-74
Land Specs
Address
Zoning
The 24 at Auburn is situated in a growing area.
We expect to spend 6 Months in City of Cincinnati Zoning.
Four Parcels located at 2427-2439 Auburn Ave
Currently Zoned: OG Rezoning Efforts: PD
● ● ●
Expected Acquisition Cost: $1.8M 1.14 Acres -> 49,000 SF 2 Street access (E McMillan St & Auburn Ave)
●
We are expecting to gain approval given previous projects in the same zone have been given same approval
Site Analysis
Site Grade and Elevation ● ●
●
We are in higher elevation in the city Should provide viewshed of Mount Auburn, CUF, and Corryville area We will be using the site grade to our advantage
Infrastructure On-Site ● ● ●
Easy sanitary sewer tie-ins Urban stormwater runoff Multiple manholes and hydrants
Transportation ● ●
7 Bus Stops 3 Main Bus Routes
Site Profiles
~10ft
~12ft
~29ft
~21ft
The Property
Facility ●
50 Units ○
● ● ● ● ●
5 Floor Plans, 1BR, 2BR (2), 3BR, 4BR
91 Parking Spots Club House Area Included Wifi Outdoor Courtyard Fitness Center
In-Unit ● ● ● ● ● ●
Balconies Washer & Dryer Granite Countertops Full Kitchen Full Bathrooms Living Area TV
Unit Mix Analysis
QUEEN’S RETREAT
OSCAR’S O’VARSITY DOWN THE THE CLUB O’VARSITY DRIVE BEARCAT
One Bedroom
Two Bedroom
Two Bedroom
Three Bedroom
Four Bedroom
One Bathroom
One Bathroom
Two Bathrooms
Two Bathrooms
Four Bathrooms
625 Sq. Feet
925 Sq. Feet
1,033 Sq. Feet
1,277 Sq. Feet
1,431 Sq. Feet
Unit/Cost Breakdown Comparables ● ● ●
Averaged unit sizes and rent Considered the % of units and occupancy Occupancy is 98% or higher in the last 5 years
The 24 at Auburn Unit Breakdown ● What will be our use for land? ○ Multifamily commercial use ○ Apartment style living ○ Mid-rise: 50 units ○ Parking under building ○ Amenities: turfed courtyard, clubhouse and gym area
Financial Analysis
Funding The 24 at Auburn ● TIF ○ Qualifying for TIF ■ 20% of population is below the poverty line ■ TIF district ■ Bringing more affordable housing to an area that the community will benefit from ● Private Equity Funding
Cost Analysis Land Costs: $1.8 million ● ●
Bought in 2015 for $980,000 Buying at appreciated value
Construction Costs: $11 million ●
Overestimated due to increased prices of current material
Soft Costs: ~2.7 million
Total Costs:
$15.55 million
Rent Roll & Operating Income
● ● ●
5% vacancy $250/unit Cap X Impound Additional Income: ○ Parking spots ○ Application fees
Total Cost & NOI After Interest ● ●
2% NOI growth Escrow accounts deducted Terminal Value
Depreciation, ROE, & IRR
●
9.4% discount rate
Timeline
Construction & Lease-Up Period 1 Year Lease-Up Market through construction
1 Year Construction August ‘22-August ‘23 Move in ready at completion 6 Months in City Zoning
Thank you! Any questions?