The Gardens on Fifth Development Proposal

g

The

ardens on Fifth

Take root in the Uptown coomunity of Pittsburgh, Pennsylvania

TABLE OF CONTENTS 1. Development Synopsis 2. Development Team 3. Market Study 4. Development Details 5. Budget

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DEVELOPMENT SYNOPSIS Keith B. Key Enterprises, LLC (‘KBK’) will be the Developer for The Gardens on Fifth, which involves the new construction of a 40 unit mid-rise transit oriented mixed income housing development. The Gardens on Fifth will be located 1821 - 1827 Fifth Avenue, Pittsburgh, PA 15219 in the Bluff (‘Uptown’) Neighborhood along the proposed improvement of the bus line connecting Downtown Pittsburgh to Oakland and the greater East End. KBK plans to finance this housing utilizing low income housing tax credits (‘LIHTC’) and will seek project based vouchers from the Housing Authority of the City of Pittsburgh to make it more affordable for tenants and eliminate the need for a rental subsidy escrow.

The Gardens on Fifth will be a four-story building containing approximately 35,974 square feet (‘sf’). It will provide 20 one-bedroom units (ranging in size from 750 sf to 800 sf) and 20 two-bedroom (ranging in size from 850 sf to 900 sf). Ninety percent of the project will be affordable with sixty-five percent of those units at or below 50% AMI. The other ten percent of the units will be market rate rentals. Other building spaces will include a community room, on-site management office, social services office, multi-purpose room, and a common area laundry room on each floor. Parking will not be provided because this development encourages the use of public transportation and there is a plethora or parking lots within the buildings proximity. A variance will be sought after due to its location on a bus rapid transit route, which will insure affordable and reliable transportation for the residents.

PROJECT DETAILS

The Gardens on Fifth will set precedence for green building standards for residential development in the City of Pittsburgh. The project will meet all green building threshold criteria as determined by PHFA and will be constructed to the LEED for Homes Rating Standard – Multi-family Mid-rise, without seeking LEED certification.

The development will be made of pre-fabricated modules. According to Innovative Building Systems, modular construction has many benefits. Modular construction is environmentally friendly. Because they pieces are made in a factory – controlled environment, there is less raw material waste, site disturbance, and allows for “tighter” construction. With less site disturbance, traffic in minimized from workers, equipment, and suppliers. Waste is eliminated because the entire unit is fabricated in a controlled setting. Materials can be recycled, inventory can be closely controlled, and building materials are protected from the various natural elements. Modular construction significantly reduces the construction schedule. While the site work and preparation are in process the modules are simultaneously being built in the factory. The controlled construction process mitigates the risk of weather delays and the quality in which the pieces are built. Modular buildings meet and exceed the same building codes as conventional construction. Modular construction is smart construction. It creates a safer work environment, reduces the risk of accidents and liability for workers. Once, assembled that are virtually indistinguishable from the conventionally built new construction.

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GREEN BUILDING FEATURES

THE GARDENS ON FIFTH PROPOSAL

The project will feature a variety of supportive services provided by the KBK Foundation and other local groups that will address the needs of its targeted population. These services will be coordinated by the KBK Foundation and will include: economic and workforce development.

SUPPORTIVE SERVICES

Located within the Uptown community are Duquesne University, Mercy Hospital, and the Consol Energy Center. The Uptown community is surrounded by four different neighborhoods: Central Business District (‘Downtown’), Crawford-Roberts (‘The Hill’), Oakland, and the Southside Flats. Many amenities are available in these neighborhoods. Downtown Pittsburgh is the employment center of the Southwestern Pennsylvania region. A brand new grocery store, Shop N’ Save, is a 10 minute walk to The Hill as well as a LEED Certified YMCA and Carnegie Library location. Carnegie Mellon University, Carlow University, and the University of Pittsburgh are located in Oakland. And over a mile of retail, restaurants, eateries, and bars are located within the Southside neighborhood.

NEARBY SERVICES AND AMENITIES

Within the past five years two residential developments have been completed (5th Ave School Lofts and Mackay Lofts) and one is underway in the Uptown neighborhood. The 5th Ave School Lofts are market rate apartments and Mackay Lofts are affordable, accessible, and workforce housing. The Uptown Lofts on Fifth Avenue is the housing development underway and it will be workforce and supportive housing. In the adjacent neighborhood, The Hill District (more specifically the Lower Hill), there is a significant development slated. The Pittsburgh professional hockey team, the Penguins, is in an agreement to develop 28 acres of the Lower Hill with the owners of the property, the Sports and Exhibition Authority of Pittsburgh and Allegheny County (SEA) and the Urban and Redevelopment Authority (URA).

The development will includes residential units, retail, and a significant redesign to the street grid. The redevelopment of the Lower Hill will significantly alter the community. The proposed plans include high end market rate units and amenities that will widely cater towards entertainment (because of its proximity to the Consol Energy Center). It is projected that a one bedroom apartment will be offered at $900/month, and roughly 20% of the units will be affordable (the percentage of average median income not specified). This development will provide much needed housing options that are affordable for current residents as well as providing market rate options for those who work and study at Duquesne University, Mercy Hospital, and the Consol Energy Center. This is an excellent opportunity to make a transformative change in the heart of this blighted, but important neighborhood.

COMMUNITY SUPPORT AND IMPACT ON THE COMMUNITY

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DEVELOPMENT TEAM GENERAL PARTNER / DEVELOPER

Keith B. Key Enterprises (KBK) is a multi-dimensional corporation uniquely positioned to develop real estate in urban America through strategic alliances. We employ creative financing, community participation, and public/private partnerships to produce high quality housing, office, and mixed use projects. We have a presence in Columbus, OH, Pittsburgh, PA, New Orleans, LA, and Washington, DC. Our mission is ultimately to change the lives of those in the communities we serve.

KBK Enterprises has extensive experience in multi-family housing and commercial properties. We have built a solid reputation for profitable real estate projects involving multiple partnerships among corporations, government agencies, faith based entities, and community groups. We are committed to quality workmanship, maintaining a multi-discipline approach and have demonstrated the ability to profitably develop within the urban market. This has allowed us to leverage development resources for the benefit of historically neglected communities and their residents. KBK Enterprises’ Partnership model serves to create a sense of “shared ownership” that ensures all projects are handeled correctly from concept to completion.

KBK has a rick and succesful history in the urban revitalization arena. As one of the most succesful African American - owned developers in the country, we have a unique perspective and advantage in that Keith Key, grew up in Pittsburgh in a public housing community. We have a great appreciation for maintaining a sense of community while vastly improving the quality of life for public housing residents. It is not only our mission to assist in the redevelopment process, but our credo, to do what we can to uplift, make a difference, restore human dignity where necessary, and “Change Lives”.

Currenlty KBK Enterpriese has been involved in over one billion dollars in development. KBK Enterprises currently has projects in Columbus, OH, Pittsburgh, PA, Washington, DC, and New Orleans, LA. The KBK Foundation is a non-profit organization that was founded with the mission of empowering communities and changing lives.

The KBK Foundation is a 501c (3) non-profit, community supportive services partner of KBK Enterprises. The Foundation provides programs and services to all residential sites either owned or managed by KBK Enterprises.

The KBK Foundation’s primary focuses are: community development, economic development, social services, education, and training initiatives.

The programs provided by The KBK Foundation empower residents by assisting them to take significant strides toward self-sufficiency. The passionate objective of The KBK Foundation is demonstrated through our core purpose of “Bridging Today’s Realities With Tomorrow’s Possibilities.”

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THE GARDENS ON FIFTH PROPOSAL

ISA is a design and research office based in Philadelphia, USA. The office is a cross-platform environment for architectural design, experiments, special initiatives, and teaching which inform one another to produce innovative solutions.

ARCHITECT

In 2013 alone the firm has one the following awards: 2013 AIA New Jersey Merit Award: Camden Affordable Housing 2013 AIA Philadelphia Honor Award: Flexhouse 2013 Residential Architect Magazine Merit Award: The Modules 2013 Residential Architect Magazine Grand Award: 100K Houses This firm is the designer of The Modules; the design precedent for The Gardens on Fifth.

The Modules at TempleTown is the first green building in the Temple University area. The Modules was built using modular construction and consists of 72 apartments, 4 stories, parking garage, and green roof with roof deck.

The Modules roof deck has great views of the Philadelphia skyline. The green roof and roof deck significantly reduce storm water runoff while providing a great space for residents to lounge.

Common area lounges on each floor are a relaxing space for residents. They feature comfy couches and photo murals of The Modules building process.

• • • • • • • • • • • • • •

Green Roof Meadow Porous Paving in Parking Area Energy Efficient Building Envelope w/ extensive Air Sealing Measures Fresh Air Ventilation Systems Energy Efficient Water Source Heat Pump System Energy Efficient Appliances Low Flow Plumbing Fixtures Centralized Recycling Collection (Chute on each floor) Modular Construction Process Recycled Over 95% of Construction Waste No Tropical Wood Species Low VOC Paint Bicycle Garage with Bicycle Maintenance Equipment Walkable Location with Excellent Transit Access

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DEVELOPMENT TEAM GENERAL CONTRACTOR

Key Construction and Mistick Construction partnered together to form Alliance Construction Group to serve as General Contractor for various construction projects throughout the country. Together they have had even greater success in their working relationship on several developments throughout the Western Pennsylvania area. Mistick has been in construction since 1951 and progressed into general contracting in the early 1980’s. They provide a full range of professional construction services to commercial, institutional and multifamily residential customers. They are called on time and time again to meet the needs of each individual and unique construction project.

They have built or renovated over 20,000 housing units in Western Pennsylvania and have noteworthy associations and memberships with numerous entities. Key Construction has developed and constructed more than 900 affordable housing units with an additional 800 units under development.

MANAGEMENT

Key Property Management Services (KPMS) is a national property management company with over 10 years of site and facility management experience. KPMS team has experience with managing LIHTC, market rate, mixed use, commercial and Section 8 affordable housing. KPMS specializeS in the reporting requirements mandated by the respective providers of subsidy, tax credit equity and government agencies such as HUD.

MODULAR FABRICATOR

Innovative Building Systems (IBS) is a leading manufacturer and distributor of residential homes and buildings under its Excel Homes and Innovative brands. The Company is a market leader in the building of high-quality modular buildings to the same code requirements as conventional construction and is the largest custom modular manufacturer on the East Coast.

These buildings are built in state-of-the-art facilities in Liverpool, PA and Avis, PA, delivered to a customer site, and set on a permanent foundation.

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THE GARDENS ON FIFTH PROPOSAL

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MARKET STUDY The primary market area (PMA) for the subject property are the four adjacent neighborhoods: Downtown (Central Business District), The Hill(Crawford-Roberts), Oakland, and the Southside Flats. The subject project is located in Uptown (Bluff) neighborhood.

PUBLIC TRANSPORATION

The Uptown neighborhood presently is served by seven Port Authority bus lines. The Route 28X travels along Forbes and Fifth Ave through Uptown from Oakland to the Airport. The Route 52 L travels from Duquesne Park and Ride to Downtown through Uptown along the Boulevard of the Allies.

The Route 53 L travels from West Mifflin, Waterfront, and then Downtown through Uptown along the Boulevard of the Allies. The Route 65 travels from Squirrel Hill to Downtown along Boulevard of the Allies. The Route 67 travels from Monroeville through Uptown along Fifth Avenue and loops around Downtown to travel along Boulevard of the Allies back to Monroeville. The Route 69 travels from Trafford through uptown along Fifth Avenue and loops around Downtown to come back up Forbes Avenue.

Pittsburgh has over thirty years of experience with Bus Rapid Transit (BRT) with its three bus-only exclusive roads called busways (South Busway, Martin Luther King Jr. Busway, and West Busway). In 2009 the Port Authority of Allegheny County completed a comprehensive study, Transit Development Plan, in which they determined the need to provide a more effective, efficient, and improved service between Downtown Pittsburgh, Oakland, and neighborhoods east of Oakland with another line in their existing BRT system (Pittsburgh BRT Forum October 2009).

Currently, the three busways serve outlying neighborhoods and essentially circumvent the core of Downtown and the East End Corridor. The proposed route will run through the center of Downtown either along Fifth Ave or Forbes Ave, through the Uptown, into the Oakland, and throughout the various East End neighborhoods. Roughly 25% of the Port Authority ridership is found along this corridor. This new line will improve reliability of public transportation, reduce travel times, and spur community enhancement.

CAPTURE RATE AND MARKET SUPPORT

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The total number of units proposed (40) divided by the number of age and income qualified households (2,500) equals a capture rate of 1.6%. This is considered a low capture rate and demonstrates that there is sufficient According to the HousingAuthority of the City of Pittsburgh, there are approximately 5,025 HUD Housing Choice Voucher holders within the area. Also, according to the Housing authority there are over 1,000 people currently on the waiting list for additional Vouchers. This reflects the continuing need for affordable housing.

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There are many employment opportunities available to the north along Centre Avenue, and south of the site, along 5th Avenue and Forbes Avenue.

EMPLOYMENT OPPORTUNITIES

Rite Aid and CVS Pharmacy are located within 1.2 miles west of the site and are considered beneficial to residential communities. The Southside Works Shopping Center and Shops at Station Square are located approximately 1.6 miles of the subject site and offer many businesses. Additionally, several notable community services are located north of the site along Centre Avenue, including a U.S. Post Office, the Pittsburgh Police Station, Abe’s Market, Carnegie Library and PNC Bank. Family Dollar Store and Shop N’ Save are approximately 0.7 miles north of the subject site. These stores will have a positive impact on marketability because they provide items at a discount.

RETAIL AND SHOPPING

Many financial institutions are within the proximity of the site, including National City and Citizens Banks. Public safety services, including the Pittsburgh Police and Fire Departments, are located within 1.0 mile of the subject site. The Hill House Center is also located within 1.0 mile north of the site. This facility is considered beneficial as it provides daytime childcare as well as multiple activities for area youths. The UPMC Mercy Hospital and Allegheny County Hospital are located approximately 1.0 mile west of the site and are considered beneficial to marketability for a residential community. The site is in the Pittsburgh School District, and schools in the attendance area of the site include Miller Elementary School, Milliones Middle School and Schenley High School.

SERVICES, EDUCATION, AND MEDICAL INSTITUTIONS

Area Code 15219 2010 Census Demographic Information Income + Benefits

Number of Households

> $10,000

1,700

$10,000 - $24,999

1,646

$25,000 - $49,999

1,277

$50,000 - $100,000

684

$100,000 - $199,999

220

< $200,000

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Total Number of Households

5,561

Source: 2010 Census American Fact Finder

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MARKET STUDY

AREA AMENITIES 1. Duquesne University 2. Consol Energy Center 3. Mercy Hospital 4. Fifth Ave School Lofts 5. Mackay Lofts 6. Washington Plaza 7. Crawford Square Apartments 8. Shop Nâ&#x20AC;&#x2122; Save

Comparable Developments to The Gardens on Fifth Unit Type

Price

Square Feet (SF)

1 Bedroom 1 Bath

$1,100 - $1,500

860 - 1080 SF

2 Bedroom 2 Bath

$1,400 - $2,000

1030 - 1250 SF

1 Bedroom 1 Bath

$1,175

780 SF

2 Bedroom 1 Bath

$1,465

950 SF

1 Bedroom 1 Bath

$594

650 - 750 SF

2 Bedroom 1 Bath

$708 - $710

780 - 1,000 SF

1 Bedroom 1 Bath

$646 - $930

675 - 703 SF

2 Bedroom 1 Bath

$774 - $1050

862 SF

MARKET RATE Fifth Ave School Lofts Washington Plaza AFFORDABLE Mackay Lofts Crawford Square

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THE GARDENS ON FIFTH PROPOSAL

In March of 2009 Uptown Community Partners in collaboration with the Hill Economic Development Corporation, Oakland Planning and Development Corporation, City Planning, Urban Redevelopment Authority, and Rothschild Doyno Collaborative produced the Uptown Community Vision Plan. The plan outlined various desires of the community: housing, resident retention and attraction, and overall revitalizational and improvement to the quality of life. With the desire to harness â&#x20AC;&#x153;knowledge, care, and sportâ&#x20AC;? from Duquesne University, Mercy Hospital, and the Consol Energy Center, the community commented that they wanted more housing the draw people to both live, work, and study in Uptown. In regards to the residential market, the community wants high density housing that serves the residents (they highlighted transit riders) and that 60% of the new housing should be rental units.

UPTOWN COMMUNITY VISION PLAN

The The Gardens on Fifth will serve current Uptown residents and the institutional population (Duquesne University students, Mercy Hospital staff, and Consol Energy Center staff). With roughly 50% of the current households living below the average income of $30,000, this development will enhance the community by creating affordable quality housing that is easily accessible to an affordable and reliable means of transportation. The targeted audience will be the residents that ear 60% or less of the area median income (AMI) as seen in figure ___ as well as students and practitioners from the major institutions in the neighborhood.

The Gardens on Fifth fits into the Community Vision Plan by providing 40 newly constructed affordable and environmentally friendly rental residential units on the prominent thorough fare, Fifth Avenue, on a highly visible vacant property. In addition, the development encourages environmental principles such as the use of public transportation, walking, and bicycling. And the building itself will be built of sustainable materials and there will be a green roof.

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DEVELOPMENT DETAILS

The Gardens on Fifth will be a new construction, four story, mid-rise apartment building located on Fifth Ave between Dinwiddie Street and Wyandotte Street. There are two possible locations for the development. I have highlighted their locations in yellow. Both properties are currently owned by Sal and Irene Williams. Both sites are zoned as both RM-M and LNC. The zoning of these properties cuts directly through the middle of the properties. I have proposed to develop on the LNC zoned side of the properties along Fifth Avenue.

VARIANCES

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Two variances will be need for this project. One variance will be related to parking. The request will be for the project to be exempt of the parking requirement. The proposal includes bicycle parking, however, it does not include parking for its tenant. There is plenty of on-street parking as well as parking lots through out the community. The proposal encourages the use of public transportation and will assist the residents in obtaining parking passes in the adjacent lots if necessary. The second variance will be for the building height. Under the code a building can not exceed 45 feet (3 stories) however, the proposal is 45 feet with four stories. The fourth story, the roof top garden, reaches 45 feet at the top of the elevator shaft. The variance will request an exemption for the roof top garden.

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PROPOSE UNIT COMPOSITION

The Gardens of Fifth Bed/Bath

% AMI

1/1

# of Units

Avg Sq Ft

Tenant Rent

Utility Allowance

Total Tenant Expense

Rental Assistance

Total Housing Expense

20%

2

750

$86

$160

$246

$387

$633

50%

8

750

$455

$160

$615

$15

$633

60%

6

750

$570

$160

$633

N/A

$633

100%

2

800

N/A

N/A

N/A

N/A

$750

20%

2

850

$118

$177

$295

$494

$789

50%

16

850

$561

$177

$738

$51

$789

60%

4

850

$709

$177

$789

N/A

$789

100%

2

900

N/A

N/A

N/A

N/A

$1,000

2/1

Total Units

40

PROPOSE UNIT SUMMARY The Gardens on Fifth 1BR Market

1 BR Affordable

1 BR Accesible

2 BR Market

2 BR Affordable

2 BR Accesible

Project Total

First Floor

1

3

1

0

5

0

10

Second Floor

0

4

0

1

4

1

10

Third Floor

1

4

0

0

5

0

10

Fourth Floor

0

4

0

1

5

0

10

Total

18 One Bedrooms

22 Two Bedroom

40

GROSS BUILDING AREA INFORMATION The Gardens on Fifth Gross Building Area

THE GARDENS ON FIFTH PROPOSAL

First Floor

Second Floor

Third Floor

Fourth Floor

Project Total

9,819 SF

8,785 SF

8,585 SF

8,785 SF

35,974 SF

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DEVELOPMENT DETAILS EXISTING CONDITIONS

DESIGN CONCEPT* * The following concept is a massing study for the modular construction concept of the development. The uses of the interior spaces and the size of the rooms were determined by the PHFA requirements for developments that use LIHTC.

Building Axon

Front Elevation

Bike Parking

Front Lobby

Laundry Room

Community Room

First Floor

DESIGN CONCEPT

Second Floor

Third Floor

Roof Top Garden

Roof Top Garden

Fourth Floor