RED_SU21_03

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27 West Street Greenpoint Larry Xu Jx2421 Columbia MSRED 21 1


Table of Contents

• Executive Summary

3

• Architectural Synopsis

4

• Zoning and Strategies

14

• Market Analysis, Data & Development Goal

23

• Financial Analysis and Capital Structure

28

• Project Delivery Schedule

38

• Marketing Plan & Exit Strategy

39

• Project Risks and Mitigation

41

• Appendix

43

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Executive Summary The “Podium Tower at Greenpoint” Project • A mixed-use residential and commercial project is proposed at 27 West Street Greenpoint in Brooklyn, New York. The site is currently a vacant land and I propose to build two buildings with a “tower in a podium” design and a bridge connecting them. Given the fact that the site is by the East River and that the surrounding buildings in Brooklyn are not very high, the proposed buildings shall provide a perfect view of the East River, Manhattan, and Brooklyn. • The proposed buildings will be towers of 30 floors and 40 floors each. The proposed height would be 60 feet for the podium, and 300 feet and 400 feet for each tower. The gross floor area would be 1,399,200 square feet, 45,600 square feet of which would be for commercial use, while the rest of the area would be for residential use. • The building by the East River will be for residential use only while the building by West Street will have commercial use on the first floor and residential use on the rest of the floors. • Ideally, people in the neighborhood would find this place their new favorite shopping place as they can always spend some time and take a walk at the open space of this site by the East River after shopping and enjoy the great view of the East River and Manhattan.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Google Maps

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Architectural Synopsis Location

27 West Street Greenpoint is surrounded by various building types. To the north, there are other mixed-use residential and commercial buildings that are similar to what I propose for this project. To the west is the East River. To the east are buildings for industrial and manufacturing uses. To the north is the Bushwick Inlet Park.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Google Maps

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Architectural Synopsis Site Plan

I propose a mixed-use residential and commercial project for the site. There will be two podium towers in total with a corridor connecting them in the middle. The building will take 1,399,200 square feet in total.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Zola NYC

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Architectural Synopsis Lot Area & Room types The site takes 300,280 sf of lot area in total, which allows a maximum building sf of 1,411,316 sf. Three types of rooms will be provided: studio, one-bedroomone-bathroom unit, and twobedroom-two-bathroom unit The studio is 600 square feet each, the one-bedroom-one-bathroom unit is 800 square feet each, and the two-bedroom-two-bathroom unit is 1,200 square feet each. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

Lot

Area

Type of room

SF

1

213,100

Studio

600

10

45,642

1 Bedroom - 1 Bathroom

800

20

21,575

2 Bedroom - 2 Bathroom

1,200

30

19,963

Building SF

Commercial

45,600

Total

300,280

1,411,316

*Source: Zola NYC

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Architectural Synopsis Square Footage Distribution Podium Tower

Floor

SF

Studio

1 Bedroom - 1 Bathroom

2 Bedroom - 2 Bathroom

Commercial

Other

A

1~2

52,800

7,200

9,600

15,600

-

20,400

A

3~6

52,800

14,400

14,400

16,800

-

7,200

A

7~29

13,200

3,000

2,400

6,000

-

1,800

A

30

19,800

-

-

-

-

19,800

B

1

52,800

-

-

-

45,600

7,200

B

2

52,800

7,200

9,600

15,600

-

20,400

B

3~6

52,800

14,400

14,400

16,800

-

7,200

B

7~39

13,200

3,000

2,400

6,000

-

1,800

B

40

6,600

-

-

-

-

6,600

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 7


Architectural Synopsis Square Footage Distribution - Podium Tower A Square Footage Plan 1F – 2F: 12 studios, 12 one-bedroom-one-bathroom units, and 12 two-bedroom-two-bathroom units. Core, common space, and elevation take 7,200 square feet. The reception place and leasing office on the first floor take 13,200 square feet. The laundry room and gym on the second floor take 13,200 square feet as well. The floor total square feet are 52,800. 3F – 6F: 24 studios, 18 one-bedroom-one-bathroom units, and 14 two-bedroom-two-bathroom units. Core, common space, and elevation take 7,200 square feet. The floor total square feet are 52,800. 7F – 29F: 5 studios, 3 one-bedroom-one-bathroom units, and 5 two-bedroom-two-bathroom units. Core, common space, and elevation take 1,800 square feet. The floor total square feet are 13,200. 30F: The open space on the building top takes 4,800 square feet. Core, common space, and elevation take 1,800 square feet. The floor total square feet are 6,600. The connecting corridor takes 13,200 square feet. In total, 595 residential units will be provided. In particular, there would be 235 studios, 165 one-bedroom-one-bathroom units, and 195 two-bedroom-two-bathroom units. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 8


Architectural Synopsis Square Footage Distribution - Podium Tower B Square Footage Plan 1F: The retail space takes 45,600 square feet. Core, common space, and elevation take 7,200 square feet. The floor total square feet are 52,800. 2F: 12 studios, 12 one-bedroom-one-bathroom units, and 12 two-bedroom-two-bathroom units. Core, common space, and elevation take 7,200 square feet. The laundry room and gym on the second floor take 13,200 square feet. The floor total square feet are 52,800. 3F – 6F: 24 studios, 18 one-bedroom-one-bathroom units, and 14 two-bedroom-two-bathroom units. Core, common space, and elevation take 7,200 square feet. The floor total square feet are 52,800. 7F – 39F: 5 studios, 3 one-bedroom-one-bathroom units, and 5 two-bedroom-two-bathroom units. Core, common space, and elevation take 1,800 square feet. The floor total square feet are 13,200. 40F: The open space on the building top take 4,800 square feet. Core, common space, and elevation take 1,800 square feet. The floor total square feet are 6,600. In total, 689 residential units will be provided. In particular, there would be 273 studios, 183 one-bedroom-one-bathroom units, and 233 two-bedroom-two-bathroom units. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 9


Architectural Synopsis Square Footage Distribution – Parking & Summary Parking: Parking will be provided at the underground level of both podium towers. In accordance with the zoning requirement for the income-restricted housing units, parking lots equal to 25% of the building’s dwelling units will be provided. The parking area would be 52,800 square feet for each building and 105,600 square feet in total.

Summing up, there would be 1,284 residential units for the two podium towers, 257 of which would be affordable units that located in the podium part.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 10


Architectural Synopsis Floor Plan – Podium Tower A Ground Floor

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 11


Architectural Synopsis Floor Plan – Podium Tower B Ground Floor

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 12


Architectural Synopsis Floor Plan – Podium Tower A & B Upper Floors

The goal of the floor plan of the project is to maximize the view on both the East River and Brooklyn. Accordingly, the core and common areas are designed in the middle of the buildings. In this way, tenant satisfaction could be maximized, and a higher potential rent level could be achieved.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 13


Zoning and Strategies Zoning analysis - Use

27 West Street Greenpoint consists of zoning lot 1, lot 10, lot 20, and lot 30 in block 2570 at Brooklyn. The site is within zoning districts R6, R8, and C2-4. It could be used for residential, commercial, or mixed purposes.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Zola NYC

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Zoning and Strategies Zoning analysis - Regulation

Zoning District

Use

Max FAR

R6

Residential

2.75

27.5

115 ft

25%

R8

Residential

6.5

5.9

215 ft

12%

Blended R6/R8

Residential

4.7

-

150/ 300/ 400 ft

-

C2-4

Commercial

2.0

-

-

1 per 150 SF

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

Min Open Space Ratio

Building Height

Required off street parking

Since West Street is 60 feet wide, which is less than 75 feet, it would be defined as a narrow street, which determines the maximum floor area ratio and the building height requirement. I also intend to provide 20% of affordable housing units to be included in the Inclusionary Housing Program and take advantage of the additional bonus in maximum floor area ratio, building height, and parking requirement.

*Source: U.S. Census Bureau

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Zoning and Strategies Strategy - Precedents 363 Bond Street is a building built in 2017. This project proposed a mixeduse commercial and residential building in Brooklyn. It has 254,214 square feet of gross floor area and 270 units in total, 54 of which are affordable units (20%). One takeaway from this building is that it utilizes affordable housing incentives to maximize its available area. This project proves that providing affordable units is an essential tool to get more available areas. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Streeteasy.com

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Zoning and Strategies Strategy - Precedents 475 Clermont Avenue is a building built in 2019. This project is a mixeduse commercial and residential building. It has 363 units in total. It provides amenities including a laundry room, a package room, fulltime doormen, a gym, and a media room. This project shows that newly proposed projects need to provide better amenities to ask for a higher rent.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: U.S. Streeteasy.com

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Zoning and Strategies Staking Diagram

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 18


Zoning and Strategies Staking Diagram - Podium Tower A Massing Configuration Podium Tower A is for residential use only, it has community facilities on the first and second floors, affordable housing units on the first to sixth floors, a common area on each floor, and open space on the top floor. 1F: The first floor would be the entry. There will be a reception place and a leasing office near the entry. The first floor has both affordable residential units and luxury residential units. There will be 36 residential units on the second floor. Common areas will be provided in-between the podium and the tower part of the building. 2F: Part of the second floor would be used for community facilities, including a laundry room and a gym. The rest of the second floor is for both affordable residential units and luxury residential units. There will be 36 residential units on the second floor. 3F – 6F: The podium part has six floors in total. The third to sixth floors have both affordable residential units and luxury residential units. There will be 56 residential units on each of these floors.

7F – 29F: The seventh to twenty-ninth floors have luxury residential units only. There will be 13 residential units on each of these floors. 30 F: The tower part has thirty floors in total. The top floor will be a recreation space for residents, including an outdoor swimming pool, tables, and chairs. There will be a glass corridor connecting the top floor of podium tower A and the thirtieth floor of podium tower B. The corridor would provide extra recreation space for residents, including a sauna zoom, a billiard zoom, and several zooms for private events. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 19


Zoning and Strategies Staking Diagram - Podium Tower B Massing Configuration Podium Tower B is a mixed-use residential and commercial building. It has retail stores on the first floor, community amenities on the second floor, affordable housing units on the second to sixth floors, a common area on each residential floor, and open space on the top floor. 1F: The first floor would be the entry. This floor would be for commercial use only, in particular, B&H will have a photo and video equipment store on this floor. 2F: Part of the second floor would be used for community facilities, including a laundry room and a gym. The rest of the second floor is for both affordable residential units and luxury residential units. There will be 36 residential units on the second floor. Common areas will be provided in-between the podium and the tower part of the building, this applies to each floor of the building besides the first floor. 3F – 6F: The podium part has six floors in total. The third to sixth floors have both affordable residential units and luxury residential units. There will be 56 residential units on each of these floors. 7F – 39F: The seventh to twenty-ninth floors have luxury residential units only. There will be 13 residential units on each of these floors. 40 F: The tower part has forty floors in total. The top floor will be a recreation space for residents, including an outdoor bar, tables, and chairs. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 20


Zoning and Strategies Height & SF Use Since podium tower A is nearer to the river, it is designed to be shorter than podium tower B to yield some view to the tower part of podium tower B. The height of each floor would be 10 feet. The podium part of podium tower A would be 60 feet and the tower part of podium tower A would be 300 feet. Since podium tower B is nearer to West Street, it is designed to be higher than podium tower A to have a better view of the East River. The height of each floor would be 10 feet. The podium part of podium tower B would be 60 feet and the tower part of podium tower B would be 400 feet.

Podium Tower

Floor

SF

Total SF

Note

A

1~6

52,800

316,800

A

7~29

13,200

303,600

A

30

19,800

19,800

Including the corridor

B

1

52,800

52,800

Commercial Use

B

2~6

52,800

264,000

B

7~39

13,200

435,600

B

40

6,600

6,600

Total

1,399,200

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 21


Zoning and Strategies “As of right” Development - Continues Floor Area:

The total lot area is 278,880 square feet, given the maximum floor area ratio of 4.7 from the zoning requirement, the total building square foot available would be 1,411,316. In the proposal, the total floor area would be 1,399,200 square feet, 45,600 square feet of which would be for commercial use, while the rest of the area would be for residential use.

Open Space:

Height: While 150 ft is allowed for the podium, only 60 ft is used. The maximum allowed height for the towers of 300 ft and 400 ft are used.

The zoning regulation requires that the minimum open space ratio to be 27.5%. The lot area is 300,280 square feet in total, while the two buildings take 105,600 square feet. Therefore, 194,680 square feet of the lot area would be left to be open space, making an open space ratio of 64.8%. In specific, there are two areas of open space. One is the backyard behind podium tower A, and another is the field between two podium towers.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 22


Market Analysis and Input Data Market Analysis - Demographics The number of people in this neighborhood has been growing constantly, from 4,903 in 2017 to 5,724 in 2019, while the median age is about the same. This is a good sign as the increasing population indicates increasing demand for residential housing units. By the time the construction is completed, the population should have grown to an even larger amount, reducing the risk of oversupplying. Among these people, number of males and females are roughly the same, while most of them are white people. Therefore, the primary target tenant of this project shall be white males and females. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

Male

48.80%

Female

51.20%

White

79.80%

Black

5.90%

Asian

6.40%

Other

4.30%

2017

2018

2019

Population

3,348

3,394

3,538

Median Age

32.8

33.5

33.8

Sex

Race

*Source: U.S. Census Bureau

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Market Analysis and Input Data Market Analysis - Transportation The site is easily available through bus service or subway service. If the residents prefer to drive a car or take a taxi, Williamsburg Bridge is only 1.3 miles away, making it easy to drive to Manhattan. B32 bus station: 0.1 miles away on Franklyn Street. B24 bus station: 0.2 miles away on West Street.

Greenpoint Avenue Subway Station: 0.5 miles away on Greenpoint Avenue. Williamsburg Bridge: 1.3 miles away. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Google Maps

24


Market Analysis and Input Data Development Purpose in the Market Financial Goal:

Meeting the retailing needs:

By developing the site into a Although there are many retailing and residential building, promote employment residential units in the area, there is no photo and and earn a decent return. video equipment nearby. In Meeting the residential need: fact, the nearest store is in Manhattan. Therefore, As the current population is having B&H opening a constantly growing, providing new photo and video store extra residential units would be would not only bring value helpful to deal with the high to them but also meet the residential demand in the retailing needs in the region. neighborhood. Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: B & H

25


Market Analysis and Input Data Development Purpose in the Market - Continued Providing affordable units:

Providing affordable residential units can not only help the local low-income people to find a place to reside but also provide a maximized floor area ratio incentive. Utilizing the waterfront view: As the site is located within the Waterfront Inclusionary Program Area, building a mixed-use residential and commercial building would provide an opportunity to have a better view of the East River.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: Google Maps

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Market Analysis and Input Data Input Data Input data comes from comparable data from the region Rent:

Most Expensive

Least Expensive

Assumed – Normal

Assumed - Affordable

Studio Unit:

$3,001

$1,521

$2,000

$1,200

1-Bed Unit:

$4,022

$1,701

$2,667

$1,600

2-Bed Unit

$6,381

$2,039

$4,000

$2,400

Vacancy:

Average of Comparables: 4.36%

Assumed: 5%

Expenses:

Comparables: 20% - 30%

Assumed: ~25%

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint

*Source: M.N.S Market Report

27


Financial Analysis and Capital Structure Acquisition & Construction Cost

Land Price is assumed to be $450 per sf. Construction Cost is assumed to be $250 per sf. Construction Budget specifics are listed in the chart. Total Cost of Development would be thus $600 per sf.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 28


Financial Analysis and Capital Structure Financial feasibility of the development proposal

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 29


Financial Analysis and Capital Structure Capital Structure - Debt

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 30


Financial Analysis and Capital Structure Capital Structure – Debt & Equity

Required equity is $156,988,500. Total Construction Loan is $342,968,488. Total Permeant Loan is $344,315,644, which is equal to the maximum loan amount.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 31


Financial Analysis and Capital Structure Sources and Uses of Funds

Source:

Use:

Equity - $156,988,500.

Land - $135,126,000.

Construction Loan - $342,968,488. (Drawn each month as above, more specifics available in the excel file)

Construction - $349,800,000. Interest - $15,030,988

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 32


Financial Analysis and Capital Structure Exit Strategies

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 33


Financial Analysis and Capital Structure Return Analysis - BTCF

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 34


Financial Analysis and Capital Structure Return Analysis - ATCF

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 35


Financial Analysis and Capital Structure Sensitivity Analysis

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 36


Financial Analysis and Capital Structure Summary & Ask

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 37


Project Delivery Schedule Project schedule

Acquisition of Land: 4 – 6 weeks Design: 12 – 18 weeks Permitting: 6 – 8 weeks Construction: 18 weeks

Total: 40 – 50 weeks Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 38


Marketing Plan & Exit Strategy Marketing Plan

Plan A:

Plan B:

Put funds in public relations, social media, advertising, web, and market research to lease up the building.

If the marketing strategy fail to do its work at the early stage, exit at year 3 instead of year 12.

Ideally, occupancy would reach 95% for all uses as assumed.

Put funds in public relations, advertising, and market research only to attract potential buyers.

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 39


Marketing Plan & Exit Strategy Marketing Budget

Capstone I 27 West Street Greenpoint Deal Book I Podium Tower at Greenpoint 40


Project Risks and Mitigation Risk 1 • Time Risk:

• Mitigation:

Though the population is constantly growing (increased from 4,903 in 2017 to 5,724 in 2019), there is no guaranty that by the time my project is built and ready to lease, there would still be enough demand for residential in the area. Therefore, if the construction and other processes take longer than expected, the project could suffer potential vacancy lost.

Keep a close eye on the project delivery schedule and make sure everything is finished within the arranged time.

Pre-Development Analysis Initial Deliverable I Gas Station, 228 West 145 Street 41


Project Risks and Mitigation Risk 2 • Operating Risk:

• Mitigation:

The current ongoing pandemic brings uncertainty on future operations. Even if the project could manage to get the desired occupancy, due to the COVID-19 affects, free rent months and lower rents may be offered to the tenant while there could be potential delay on rent collection schedule.

Monitor each month’s operation performance during the lease-up period, if bad indications are showing up, switch to exit plan b and sell the property right after the lease-up period.

Pre-Development Analysis Initial Deliverable I Gas Station, 228 West 145 Street 42


Appendix Joint Venture/Waterfall Capital Call: GP Share: 5% LP Share: 95% Capital Return: GP Share: 5% LP Share: 95% Return Hurdle 1: 10% Preferred

Return Hurdle 2: 15% GP: 20% LP: 80% Rest of the Return: GP : 50% LP : 50%

Pre-Development Analysis Initial Deliverable I Gas Station, 228 West 145 Street

GP IRR: 23.78% LP IRR: 14.51% Total IRR: 15.25% For details, please see the excel file.

*Source: M.N.S Market Report

43


Appendix Market Analysis support materials - 1

Pre-Development Analysis Initial Deliverable I Gas Station, 228 West 145 Street

*Source: M.N.S Market Report

44


Appendix Market Analysis support materials – 2

Pre-Development Analysis Initial Deliverable I Gas Station, 228 West 145 Street

*Source: M.N.S Market Report

45


Appendix Market Analysis support materials – 3

Pre-Development Analysis Initial Deliverable I Gas Station, 228 West 145 Street

*Source: M.N.S Market Report

46


Thankyou Larry Xu UNI: jx2421 Aug 4th, 2021

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