eastern market corporation industry sponsored project

11Residential Feasibility Study

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Project DescriptionTh e enclosed report outlines the proposed residential development plans for Detroit Wholesale Produce located in the Eastern Market District, Detroit, MI. Lawrence Technological University completed this project in close collaboration with Eastern Market Corporation (EMC), the non-profi t organization that manages the market and serves as the economic development organization for the Eastern Market District. Th is project aligns with one of EMC’s missions to develop a section of the district into mixed-use neighborhoods. Th e Eastern Market District is building momentum as not only a major food hub in southeast Michigan, but also a hub where art mixes with industry, and food entrepreneurship is thriving. Th e district’s limited residential living opportunities are in high demand as many millennials desire to live in one of Detroit’s cornerstone communities. With many amenities in the area and a unique cultural atmosphere not found many places around the country, the Eastern Market District is poised to explode with development over the next decade. EMC recognizes this trend and is actively working with property owners in the district to carefully blend mixed-use structures without displacing the job-producing food business that anchor Eastern Market.

Detroit Wholesale Produce is well-positioned to join the trend of adding residential living space to the district. Currently, only the fi rst fl oor of the building is occupied with the second fl oor being used as storage. Th e enclosed report is a full feasibility study of redeveloping the second story and beyond into residential living spaces. Included is a site context analysis, architectural and engineering design documents, fi nancial analysis, and market analysis. Th e goal of this study is to provide the building owner with a direction for future development that will benefi t him, the district, and future residents.

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overviewProject

project team:

BrandonOlsenProject DesignerGraduate Student Masters of Fine Arts in Graphic DesignRhode Island School of DesignBachelors of Science in ArchitectureLawrence Technological University

Menabebawy, ph.dStructural AdvisorAssistant ProfessorDepartment of Civil and Architectural Engineering Lawrence Technological University

MeaghanmarkiewiczProject Manager Graduate Student Masters of Architecture Lawrence Technological University

myleshambyProject Advisor Food Access CoordinatorEastern Market Corporation

MikepacieroProject EngineerGraduate Student Masters of Architectural Engineering Lawrence Technological University

joongsubkim, ph.dFaculty AdvisorProfessor Director of the Masters of Urban Design Program + Director of Th e Detroit Studio Lawrence Technological University

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project partners:

lawrence tech

Detroit wholesale produce

Eastern market corporation

Center for Design + technology

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A Mixed-Use FutureDetroit Wholesale Produce, located at 2614 Riopelle, Detroit, MI 48207, is a food wholesaler in Detroit’s Eastern Market district. Th e business services restaurants with large orders in early mornings, and individual patrons throughout the rest of the day. Th e existing retail space is located in the left corner of the building on the fi rst fl oor. Most of the rest of the building is used for storage. Th e business owners, Greg and Tom, are looking to rehabilitate the second fl oor into residential space, as well as expand their produce business throughout the fi rst fl oor. Th e building is located in a prime location, directly across from Eastern Market’s newly renovated Shed 3, giving it a high level of visibility during the market. Th e owner, Greg, has worked

extensively with the project team on his ideas for redevelopment, even showing the team some of his own drawings. He already completed some renovation of the existing retail space to further enhance the shopping experience and provide living space. Th e goal of this study is to provide him with a direction for future development that will benefi t him, the district, and future residents.

Th e mission of the Eastern Market Corporation (EMC) is to mobilize leadership and resources to achieve the vision of stakeholders for the Eastern Market District. It’s goal is also to become the undisputed center for fresh and nutritious food in southeast Michigan. EMC

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Detroit Wholesale Produce

eastern Market Corporation

Lawrence Tech university

the attraction and legacy of the Eastern Market and build a dynamic, diverse, and unique urban district by strengthening the identity of the Eastern Market as a food-related district. Th is is being achieved by enhancing the operations of the existing public market and by developing business opportunities for specialty food retailers, food wholesale operations, restaurants, food distributors, and food processors. Located in a prime location to access in the city, Eastern Market Corporation’s next step includes developing sections of the District into a mixed-use neighborhood that improves the business atmosphere and enlivens streets and public spaces by carefully blending in a variety of residential forms. Th e ultimate goal is to ensure these new uses support, respect, and integrate into the existing food industries and food related uses of the district.

Lawrence Technological University is one of Michigan’s premier private universities, and is recognized as a leader in sustainability education, research and practice. Each of the four Colleges refl ect the encompassing focus of the University. A multi-disciplinary team of Lawrence Technological University students and faculty from these colleges worked within the project scope outlined in this proposal. A collective report, consisting of the components discussed in the project proposal and at past meetings have been produced for EMC to convey EMC’s goal of revitalizing the market to include multi-use facilities. Detroit Wholesale Produce has been identifi ed by EMC as prime candidates to develop existing space into mixed-use developments. Th e feasibility study includes architectural concepts, projected costs, and marketability potential. Th e completion of this report provides a basis for EMC’s future master plan development in correlation with it’s economic development.

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analysisAtmosphere

Art, Industry, and the Market Th e atmosphere of a district can be diffi cult to describe. If you were to ask someone to talk about atmosphere they might start by listing off adjectives relating to the physical area around them, but they also may gesture with their hands to convey movement and energy, some might recall a story that recounts interaction, or they might even mimic familiar sounds and noises of the area. People have to rely on more than words to describe how the neighborhood’s atmosphere aff ects their feelings. Atmosphere is the feel

Understanding atmosphere:Th e Historic Eastern Market DistrictTh e Eastern Market Historic District is located approximately one mile northeast of downtown Detroit. Originally located Downtown in Cadillac Square, it was moved and was renamed in 1891; market sheds were built to accommodate the growing farmer’s market. Today, the Eastern Market Historic District was added to the National Registry of Historic Places in 1978 and more than 45,000 people visit the market on Saturdays year round.

Th roughout the mid-twentieth century, an increase of food processors and wholesalers moved into the area, making EM an important food hub to the region. Th e 4.3 acre market district is centered around a six-block public market space where the sheds are located. Th e surrounding area is home to over eighty food oriented businesses including restaurants, food processors, wholesalers and retail.

Today Eastern Market is the largest open-air fl owerbed market in the United States and the largest historic public market district in the United States. More than 150 food and specialty businesses are still located within the market district selling all types of goods including produce, meat, spices, jams, fl owers, poultry, etc.

of the area. Th e sights, sounds, smells, people, movement, activity, and energy all make up the feel of an area. Understanding atmosphere is vital in understanding what makes an area unique from neighboring communities, and is important in fostering benefi cial growth within the area.

Th e Eastern Market District has a very unique atmosphere. Street art covers walls of buildings on every block, while forklift s and semi trucks zoom in and out of loading docks within the tightly packed space. Th ese back roads are full of unloading and processing of many diff erent kinds of foods. A couple blocks away, Russell Street provides the main pedestrian artery through the sheds where visitors have access to the many vendors during the weekly markets. Th is diversity of activity between customers, industry, and retail is classic Detroit. For decades, the atmosphere and resources of the district has attracted people from all corners of Metro Detroit. Now, as Detroit redevelops, Eastern Market is prime for an additional typology, residential housing. All of these qualities are attracting a resident that has a craving for industrial and historical buildings, a love for art, music, culture, and food. Th ey know that they won’t fi nd a sleek, contemporary, newly constructed place to live here as they may fi nd in Downtown or Midtown; and that excites them. A day in Eastern Market is never the same and in the near future the residential real estate of the district won’t be either.

-Bob, an Eastern Market Resident

“I love the hustle and bustle of the district.”

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Russell St.

Russell St.

Rivard St.

Riopelle St.

Riopelle St.

Riopelle St. Orleans St.

Adelaide St.

Adelaide St.

Adelaide St.

Division St.

Division St.Alfred St.

Alfred St.

Wilkins St.

Division St.

Winder St.

Winder St.

Fisher Services Dr.

Site

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1 Th e Historic Eastern Farmer’s Market Mural - Originally painted in 1972 and recently restored, the Eastern Farmers Market painting is the largest mural in the district, taking up about 6,500 square feet of space on the exterior wall.

2 Th e Weird - Th e German/Austrian artist collective has left their mark on the Market District. Th eir odd, character driven murals are easily recognizable and adorn the sides of multiple buildings in Eastern Market.

3 OmniCorpDetroit - Th e mural on the outside of the building is a good representation of what takes place on the inside. OmniCorpDetroit is a collection of makers, designers, artist, and others that come together to learn, share, and create together.

4 Th e Cow at Eastern Market Cold Storage - One of the largest pieces of art in the district is painted on one of the tallest buildings. A cow made up of various vegetables looks down on the markets below.

5 Red Bull House of Art- Th is is an artist incubator that functions as a gallery and curator to house local artists’ work. A creative space that breaks down barriers between artists and fi nancial burdens, the Red Bull House of Art is a one of a kind artists institution that provides the tools and space for visiting artists to unleash their creativity.

6 Th e Shark Mural at Kap’s WholesaleLos Angeles based contemporary artist, Shark Toof, adds to Eastern Market’s eclectic nature by painting a shark into Detroit’s urban context. Th is mural embraces the sense of wonder that occupies Eastern Market and keeps visitors on their toes as they look around the next corner.

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Featured ARTFeatured industryFeatured Residential

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1 FD Loft s - A converted Fire StationSize of Units: 600 sq. ft . - 1500 sq. ft .Monthly Rents: $1050 - $1500Price per Square Foot: $1.00 to $1.75

2 E&B Brewery Loft s - Tallest residential building in Eastern MarketNumber of Units: 50 Loft sSize of Units: 745 sq. ft . - 3300 sq. ft .Monthly Rents: $750 - $3850Price per Square Foot: $1.01 - $1.17

3 Rocky Apartments- Th e First legal loft s in DetroitNumber of Units: 12Size of Units: 1200 sq. ft .Monthly Rents: $750, $800, $900Price per Square Foot: $0.63 - $0.75

4 1345 Division- Number of Units: 12Size of Units: 1000 sq. ft .Monthly Rents: $625Price per Square Foot: $0.63

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43 ResidentialIndustry

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2Grobbel’s Corned Beef

Kaps Wholesale Foods & Detroit Wholesale Produce Wolverine Packing Co.

Eastern Cold Storage & International Border Meat Inspection

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Bert’s

Supino, Mootown, Russell Street Deli, & Zeff ’s

Eastern Market Corp. Shed Farmer’s Restaurant

109 Capital PoultryGermack

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analysissite/building

existing condition:

1. Detroit wholesale produce existing condition

Th e current structure is a green, masonry building built in 1955. It’s total gross square footage is 10,370 square feet with 105 feet of store frontage on Riopelle Street facing Eastern Market Shed 3. Detroit Wholesale Produce operates out of the fi rst fl oor on the left corner. It is a small retail space that was built out by the building owner when it was acquired several years ago. Th e right side of the fi rst fl oor is cold storage, as well as the space behind the retail. Th ere is a small cashier counter and offi ce also located on the fi rst fl oor. Upstairs is a wide open space with blocked up window openings to be utilized as a more eff ective storage space in the future. Th e second story is the space that will be redesigned into residential units. Th ere is also the potential to add third story residential units. Th is building is in a prime location for residential development on the edge of the Eastern Market sheds. In addition, having a produce market on the fi rst fl oor will be an amenity to residents.

Several updates to the second fl oor space are necessary to make the building habitable. A complete build out of the second story space will be needed including partition walls, fi re rated stairs, new HVAC, plumbing, lighting, electrical, insulation, exterior fi nishes and windows. In addition, the aging brick facade needs repair in several places. Th e existing main entry to the building will be reconfi gured to allow for customers and residents to enter the building at separate locations. Th e heavy industrial traffi c in front of and around the corner from the building will be addressed and redesigned to create a more pedestrian friendly street scape. Lastly, updates to the existing retail space will be proposed per the owners request as they look to expand the retail space to the entire fi rst fl oor. In addition, the owners would like to consider the option of adding a third story with residential on the second and third fl oors.

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PEDESTRAIN PATH FROM

EASTERN MARKET SHEDSDS

STERERNN MMAARARKET HEDEDS

PEDESTRAIN PATH FROM

EASTERN MARKET SHEDS

EASTERN MARKET SHEDS

EASTERN MARKET SHEDSSIDEW

ALK

SIDEWALK

SIDEWALK

ALKWAL

SIDEW

TRUCKTRAFFIC

ROIT DETROLESALE WHODUCEPROD

SURFACEEEUPARKINGGI G SURF CE FAC

PARK NGKIN

ALLEYA

EASTERN COLD STORAGEBUILDING

MEATINSPECTIONBUILDING

DUMPSTERFIRE HYDRANT

HIIGH ILOWOW OW

CCCTRA CAFFICA CCICCTT

CK TRUCINGPARKI

1 Detroit Wholesale ProduceAddress: 2614 Riopelle, Detroit, MI. Produce wholesaler looking to expand.

2 Neighboring BuildingsTo the south is Eastern Cold Storage, that houses many regional food inspections that requires a lot of truck traffi c and busy loading docks. To the north is the bright red building of Kaps Wholesale which is a similar business to Detroit Wholesale produce.

3 Truck Traffi cTh ere is heavy truck traffi c around the building. Eastern Cold Storage to the south has two buildings and a total of fi ve loading docks. Th e trucks get very close to the Detroit Wholesale Produce building when backing into the loading docks making the area a hazard for pedestrians.

4 ParkingParking is available right in front of the building, across the street in one of the shed’s parking lot, or 1 block northeast in the parking garage. Th ere is always plenty of parking on non-market days. Residents would most likely park in the garage.

4 Eastern Market ShedsEastern Market Shed 2 and Shed 3 are both visible from Detroit Wholesale Produce and the other sheds are not much farther off . Th is close proximity to the sheds will be an attractive feature to future residents.

5 AlleyTh ere is a gated alley between Kaps Wholesale and Detroit Wholesale Produce. Functional and aesthetic improvements to the alley are suggest-ed as part of the project to make the area more attractive for residents.

6 Storefront/Pedestrian AccessTh e current main customer entrance is also the main forklift and loading and unloading zone. Th is makes a less than desirable access point for pedestrians and this confl ict will need to be rec-onciled in the design.

7 Rooft op Vantage Point of MarketWhile just a normal, black membrane rooft op now, Detroit Wholesale Produce has a rooft op overlooking Eastern Market that is ideal for a rooft op space for residents and events.

2 site analysis

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Key Aspects of Layout:• Th e left half is the retail business.• Th e right half is extra cold storage. • Th e trapezoidal space is where heavy Forklift

and pallet-jack traffi c currently fl ow.• Th e back Space is also owned by Detroit

Wholesale Produce and is used for more cold storage for produce.

• Th e main entry includes the three overhead rolling doors that open to the street, making for an open, outdoor retail space during nice weather.

Design Challenges• Designing a resident main entrance that is

pedestrian friendly, can accommodate a main stair and elevator, but also integrates with the existing infrastructure.

• Diverting the current forklift traffi c to provide a safer and more accessible circulation path for residents and customers.

• Eliminating the dusty air fl ow created from the constant open doors and forklift traffi c.

• Th e owner wants to expand the retail component of the business by adding storefront windows to replace overhead doors.

Existing first floor plan

Storage4,760 sq ft

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33 Existing second floor

UP UP

Retail

Cash

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Cold storage

Officeforklift traffic

Toilet

Toilet

mech.

1393 sq ft

87 sq

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2406 sq ft

150 sq ft

388 sq ft

Shaft Shaft

50 sq ftftft

69 sq ft

97 sq ft

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Key Aspects of Layout:• Window openings have been blocked off with

concrete masonry units (CMU).• A rolling overhead door is located in the

northwest corner.• Four diff erent, industrial style structural

materials are present; wood (roof joists), Steel (roof beams & columns), Brick (walls), and concrete (fl oor).

• 14’-3” ceiling height at south end of building and 10’-3” at the low end.

• Two stairways allow access to the second fl oor.

Design Challenges• Integrating four to seven apartments of varying

sizes into the space.• Designing eff ective circulation based on

existing conditions to maximize effi ciency of rent-able space.

• Creating designs that highlight the diverse structural material to maintain the industrial feel while integrating effi cient insulation, heating, and cooling systems.

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5 Structural Analysis

Concrete fl oor (Figure 1 through Figure 5)• Th e concrete in the fl oor appears to be structurally

sound. Rebound hammer test at multiple locations through the fl oor shows an average concrete strength of 6,330 psi.

• Th ere are multiple cracks in the fl oor. Some of these cracks are structural cracks developed due to negative moment action in the fl oor system. However, the cracks seem stable and not propagating.

• To evaluate crack propagation, certain lengths of cracks were cleaned with a pneumatic air gun and fi lled with non-shrink concrete epoxy polymer. Pictures were taken at the time of fi lling the cracks and three weeks aft er. Th ere were no signs of any crack propagation or separation in the fi lled cracks.

• Overall, the fl oor is in good structural condition. Th ere are no spots of concrete damage that need to be addressed or rehabilitated.

Steel columns (Figure 6 through Figure 8)• Signs of mild rust were noticed at the fl oor and roof

connections and through the length of the columns. Nevertheless, the rust appears to be only superfi cial and has not been propagated through the thickness of the steel.

• If additional fl oor is to be added, the columns need be analyzed by a structural engineer to ensure the safety of the building and their ability to resist the additional dead and live loads from the new fl oor. Column strengthening may be necessary if the current cross section of the columns is proven insuffi cient.

Brick walls (Figure 9 through Figure 13)• Several cracks, water damage, and spalling of the brick

walls were noticed especially near the roof. Before any structural upgrade or story addition, the walls need to be rehabilitated properly. Diagonal cracks in the walls appear next to the beams supporting the roof. Th is indicates diff erential settlement in the walls due to the weight of the roof. Th e cracks appear to be stable in the meantime. However, future upgrade in the building such as addition of a new fl oor system may lead to crack propagation and/or additional cracking in the walls. If the walls are used to support an additional fl oor system, the load shall be distributed evenly over the length of the walls.

Roof system (Figure 14 through Figure 17)• Water damage appears at multiple locations in the roof.

Old lumber has been replaced with newer lumber at a few locations. However, signs of water damage appear also on new lumber. Rigorous measurements need to be taken to treat the roof system and water proof it. Th e steel beams supporting the roof need to be checked for structural adequacy if an additional fl oor is to be added.

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Filling the cracks with non-shrink epoxy matrix

A crack fi lled with epoxy matrix

3-week old fi lled crack shows no signs of separation

Signs of rust at the base of the steel columns

No crack separation aft er three weeks

Concrete cracks in the fl oor

Top column connection shows mild signs of rust

Another top column connection with signs of rust

Diagonal cracks in the wall under the beam supporting the roof

Propagation of the wall crack relative to the beam

Diagonal crack in the wall and signs of water leak at the top of the wall

Wall locations that may need further assessment and rehabilitation

Wall with questionable structural capacity and apparent water leak

Signs of water damage in the roof

Signs of water damage in the roof

Water damage in old lumber

Widespread water damage in the roof

Areas of water damage

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designresidential/retail

Design:

1 building overview

At the request of the building owners, this section includes two design options: (1) A 2 story rehabilitation that converts the second fl oor to residential living spaces and (2) a 3 story option that requires new construction of a 3rd fl oor for additional apartments in addition to a 2nd story rehabilitation.

Th e design team suggests that a diff erent fl oor plan is used on each fl oor to allow for a variety of unit options for residents. In addition, a proposed fi rst fl oor plan design is presented based on discussions with the owner and the need for a resident entrance.

Aside from the new fl oor plans presented on the following pages, two exterior renderings are presented above to provide a visual aid for what

the building could look like from the street. A new cement fi ber board material facade is proposed on the residential levels. Th is material choice was an aesthetic and functional decision which is further explained in this section. Although a new facade was added to the upper stories, the original facade was preserved on the fi rst fl oor to maintain the urban rustic appearance of the original and surrounding buildings in the district. In addition, three new openings were added on the right side of the building symmetrical to the original three on the fi rst fl oor. Th ese openings are no longer overhead doors and brick, but storefront windows that allow visibility into the retail spaces. Lastly, updated signage is located just above the main retail space on the left side of the building. It is located lower on the building to better imply the location of the main entrance to the retail space on the fi rst fl oor.

1 Th ree-Story Option

2 Two-Story Option

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RETAIL

PERMEABLESURFACEALLEY

RETAIL

RESIDENTAL EXIT

RESIDENTAL ENTRANCE

OUTDOOR PRODUCE

PLANTERS

BENCHES

PEDESTRAIN SIDEWALK

EXISTING FIRE HYDRANT

STOREFRONT WINDOWS

RETAIL PARKING

RETAIL ENTRANCE

FORKLIFT TRAFFIC

FORKLIFTTRAFFIC

1 Detroit Wholesale ProduceAddress: 2614 Riopelle, Detroit, MI. Retail space was expanded and residential was added to upper fl oors.

2 Retail EntranceTh e main retail entrance will be through one sliding glass door, replacing the existing overhead doors. Th is will aid retail circulation and security for the store as well as keep the retail space cleaner by keeping out dirt.

3 Forklift Traffi cForklift traffi c was diverted from the front of the building by moving the main loading location to Adelaide street. Th e only exception is using the forklift to set up displays and produce on the sidewalk outside the building during market days.

4 Retail ParkingNew diagonal parking is proposed in front of the building to allow for customers to easily park and shop in the produce market. Th is will also deter trucks from resting in front of the building and disturbing residents.

5 Residential EntranceTh e resident entrance and lobby is at the front left corner of the building as shown in the site plan. Located here will be main circulation to the apartments, mailboxes, and bike storage.

6 Permeable Surface AlleyTh e alley is re-done to be a green, permeable surface alley to aid in the district’s water management plan. Water from the roof will be collected and responsibly diverted into the alley.

7 Improved Storefront/Pedestrian AccessTh e sidewalk outside of Detroit Wholesale Produce was improved through new pavement and the addition of benches, planters, and outdoor produce displays. Elimination of forklift traffi c was key to this design element.

8 Rooft opTh e rooft op is now a space open to the residents for leisure purposes. Th e space proposed includes a rooft op deck surrounded by vegetation from the green roof that will help with heating and cooling loads and storm water management.

2 site plan

UP

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Resident Entrance• Placed at front left corner of the building aft er several

design iterations and discussions with owner.• Th is location is most accessible, visible, safe and furthest

from major truck traffi c. • Integrates into owner’s plans to expand retail area, by

consuming just enough fl oor space in the existing retail for an elevator and main stairway but keeping the the retail square footage to a maximum on the fi rst fl oor of the building.

Additional Updates• Addition of a residential, fi re rated, emergency stair• Slight adjustment to the offi ce space due to the removal

of one stair and a new entrance to the public bathroom• Removal of cashier stand and new customer entry into

the cold storage space from the dry goods section• Addition of storefront windows in place of the existing

front rolling doors with symmetrical to the storefront windows installed on the opposite side of the building.

• Elimination of forklift traffi c from the main building entry and moved to the loading dock space off of Adeliade Street to the south. Detroit Wholesale Produce will then bring all their product to the shelves from the back of the building instead of the front.

3 first floor Redesign

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retail2219 sq ft

retail1003 sq ftresident lobby

390 sq ft

forklift traffic388 sq ft

office207 sq ft

private bath-69 sq ft

mech97 sq ft public

bathroom50 sq ft55 ssq q tt00 qq tt5050 sqsq ftfttttttttt

bike storage

retail entranceresident entrance

mailboxes

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3 Second floor living space

Studio

StudioStudioStudio

One bedroom One bedroom One bedroom520 sq ft

457 sq ft491 sq ft448 sq ft

586 sq ft 591 sq ft 606 sq ft

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w / d Studio one bedroom

two bedroom two bedroom

one bedroom one bedroom520 sq ft 586 sq ft

810 sq ft 792 sq ft

591 sq ft 605 sq ft

4 third floor living space

Apartment Overview• (7) Total Units• (4) 450-520 SF Studio Units• (3) 600 SF One Bedroom, One Bath Units• Units on front utilize previous window openings overlooking the market.• Units in back require new window openings to be cut in existing facade overlooking industrial Eastern Market.

Circulation Plan Details• Stair on east side of building completely removed• U-shaped stairs maximized the square footage of the units. • Th e existing northeast stair will remain to save on the cost of a new stair. Th e owner requested keeping the existing stairway in lieu of a u-shaped stair in the middle of the future cold storage shopping area. Th e proposed confi guration saves money, provides an emergency exit and also creates a unique southeast corner studio with a proposed loft ed space over the exit stairs.

Apartment Overview• (6) Total Units• (1) 520 SF Studio Unit• (3) 600 SF One Bedroom, One Bath Units• (2) 800 SF Two Bedroom, Two Bath Units• Floor plan nearly identical to 2nd fl oor except for two bedrooms units on backside instead of studios for variety.

3rd Floor Construction Logistics• Unlike the second fl oor, all windows, walls, fl oors, stairs, and roof will be new construction. • Adds considerable more cost since the current roof will need to be removed, the beams leveled, new fl oor installed, and new exterior walls and roof on top of the existing masonry walls. All new construction would be wood framed. • Construction calculations and return on investment analysis are found in the following pages.

Projected Rental Rates• Studio Apartments: $1.42/SF• One bedrooms for $1.32/SF• Two bedrooms for $1.22/SF

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5 Exploded view

3 roof redesign

existing roof experience

roof experience inspiration

BAD

Rooft op gathering and living spaces are extremely common in major urban cities such as New York and Chicago. Th ese spaces enhance the living experience of residents, provide spectacular views of the city, and make buildings more functional. Detroit Wholesale Produce has the opportunity create this atmosphere in the Eastern Market District of Detroit. Currently, the roof is one large open space sloped towards the alley. Regardless if the two story or three story development option is selected, the rooft op space can be transformed into a vibrant, usable space for the residents, building owner and public during large gatherings. Th e proposed plan above consists of the installation of an outdoor patio surrounded by green roof vegetation. Th e vegetation will keep the roof cooler for patrons utilizing the roof space. Th e vegetation will also aid with storm water runoff from the building. Th ere are many impermeable spaces in Eastern Market and the district is under pressure to better manage their storm water runoff . Detroit Wholesale produce can be a pilot project for solving this issue in the district. Th e concept is of course expandable per the building owner’s desire. If used on the 2 story development plan, the patio will likely need to be elevated off the roof to create a fl at surface for people to stand and sit. However, if the three story development plan is used, the new roof that is put on will be a fl at roof and raising the patio will not be necessary.

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Greenroof vegetation

Rooft op view of eastern Market

Enclosure planters

Resident patio space

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1 Exposed Brick - It is common to fi nd exposed brick in many rehabilitated, industrial, Detroit buildings.and Th e brick in Detroit Wholesale Produce would need some touch up to make this happen but the exterior walls of the units are prime for utilizing this natural interior fi nish.

2 Wood Finish - Reclaimed wood is a hot commodity for interior furnishings. Especially in Detroit where many materials are harvested from houses that have been taken down. Butcher-block counter tops made from reclaimed wood are a trending material found in many restaurants, bars, and residences. In addition, cabinets, furniture, wall fi nishes, and fl oors can all be created from wood, particularly reclaimed wood. Th ese interior fi nishes are highly recommended for use in Detroit Wholesale Produce.

3 Polished Concrete- Like exposed brick, Concrete also speaks to the industrial building atmosphere. Detroit Wholesale Produce already has concrete fl oors in the second story. Using the existing concrete as a fl oor fi nish would be an economical and sustainable option.

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interior material inspiration

Exterior material inspiration

4 Cement Fiber Board- A new exterior fi nish is needed due to the decision to add insulation to the exterior of the building on the upper fl oors. Th erefore, a modern material is needed to maintain an exterior appearance that integrates with the surrounding buildings, but also diff erentiates Detroit Wholesale Produce as an updated building in the district. Cement fi ber board is a very viable solution because it is easy to adhere to any surface, and forms a pattern much like brick only at a larger scale.

5 Exposed Exterior BrickAs with the exposed interior brick, it is important to maintain some of the building’s original appearance. Th e fi rst fl oor is a great location to keep the original brick, although it will likely be painted a diff erent color. to better match the cement fi ber board color selection.

1 South Elevation

2 West Elevation 3 East Elevation

Cement fi ber board cladding

Exterior Cladding Attachment Diagram

1x4 wood furring attached through rigid insulation to 2x4 wood furring.

Fluid-applied water control layer and air control layer

Rigid Insulation

Masonry Wall

2x4 wood furring mechanically attached to masonry.

Wall System and Exterior FinishesInsulation is necessary for the comfort level and effi ciency of the apartment. It is common for insulation to be found in the wall cavity. However, the design calls for insulation to be added to the exterior of the building, with the cement fi ber board exterior fi nish added on top of that. A detail of this strategy is shown in the fi gure on the right. Details about this strategy are below:• Exposed brick was desired on the interior of the

apartments, adding insulation to the interior would have eliminated this option.

• Updates to the building exterior fi nish were wanted in the design, fi ber cement board over insulation fulfi lled this design component

• It is generally best to insulate existing masonry buildings on the exterior. Condensation problems can occur between the brick and an interior insulated wall since the exterior brick will change temperature quicker than inside.

• Th e extra wall thickness on the upper fl oors creates a natural, protective overhang for the sidewalk below.

8 Exterior Improvements

3534

6 Heating, Ventialation, And Cooling (Hvac) design Options

Solar Th ermal Example 6Th e benefi t to using hot water for space heating (options 2-4) is that it can easily be adapted to operate on renewable solar hot wa-ter in the future. A diff erent type of hot water tank would be paired with solar thermal panels or evacuated tubes mounted on the roof of Detroit Wholesale Produce as inspired by the pictured above.

CW In

CW In

Valve

Valve

Gas Line

Gas Burner Gas Burner

HydronicFurnace

Gas Line

Gas Line

Wat

er fr

om

Furn

ace

HW

to

Furn

ace

HW

to

Floo

r

HW to Fixtures

Water from Floor

HW to Fixtures

CW in

CW in

Gas Burner or Solar Hot Water Heat

Exchanger In Future

Gas Burner or Solar Hot Water Heat Exchanger

In Future

40° F - 50° F Cold Storage

CW to Storage Tank Warm Water from Floor

Radiant Heating and Cooling Coils in Floor

Coo

l Wat

er fr

om F

loor

Heat Exchanger

Heat Dissipated to Cold Storage

Gas Burner or Solar Hot Water Heat

Exchanger In Future

Furnace

Gas Line

Gas Line

EA

EA RA

EA

EA RA

RA

RA

OA

OA SA

OA

OA SA

ERV

ERV

SA

SA

HW To Fixtures

HW To Fixtures

Condensing Unit on Roof



Mini-Split AC Unit

Cool Air Out

Hot Air In

Cooling Coil

Cooling CoilHot Water

Coil

Exhaust Air Exchanges Heat with Outside Air



HWTank

HWTank

CWTank

HWTank

HWTank

1 Basic Option • Heating: Utilizes a typical residential gas fi red

forced air furnace.• Ventilation: Provided through an outdoor air

intake that enters the furnace. • Air Conditioning: Utilizes a typical direct

expansion (DX) cooling coil w/ condensing unit on roof

• Hot Water: Utilizes a typical residential gas fi red hot water tank routed to water fi xtures.

• Notes: Th is option will have low up front cost and high operating cost and is least environmentally friendly.

2 Intermediate Option• Heating: Utilizes a forced air hydronic furnace.

Instead of gas combustion, it provides heat by passing air over coils of hot water provided by the hot water tank.

• Ventilation: Provided through an outdoor air intake that enters the furnace but fi rst passes through an energy recovery ventilator (ERV) that tempers the outdoor air prior to entering the furnace, thus saving energy.

• Air Conditioning: Same as basic option• Hot Water: Same as basic option, however hot

water is routed to the furnace as well as water fi xtures.

• Notes: Th is option will have mid-range upfront cost and lower operating cost than the basic option, it also is more environmentally friendly since it uses half the combustion of the basic option and pre-treats the ventilation air through the ERV.

3 Intermediate Option• Heating: Utilizes a radiant heat system in the

concrete fl oor. Hot water provided by the hot water tank fl ows through the slab and heats the space. A more effi cient transfer of heat occurs between the water and slab than water/gas and air in the furnace option.

• Ventilation: Same as option 2, however outdoor air no longer passes through a furnace. Only required air for ventilation purposes is needed which is less air than the furnace option, thus saving energy because it takes more energy to heat air than water.

• Air Conditioning: Instead of an integrated DX cooling system, a high effi ciency mini DX split system or heat pump system can be mounted on the wall thus saving space by eliminating space needed for a furnace.

• Hot Water: Same as basic and intermediate option, however hot water is routed to the radiant fl oor as well as well as water fi xtures.

• Notes: Slightly higher operating costs, and lower operating costs than option 2, also will save more energy since air is not the main cooling medium and mini split system AC units are highly effi cient.

4 Advanced Option• Heating: Same as option 3• Ventilation: Same as option 3• Air Conditioning: Th is cooling option utilizes a radiant

cooling system in conjunction with the radiant heating system. To use this system, a cooling plant is needed. Rather than install an expensive, small chilled water system, this system proposes to use the cold air in the large cold storage spaces of Detroit Wholesale Produce below many of the apartments to chill water. Water would be pumped through the apartment fl oor and then into a heat exchanger located in the cold storage spaces, chilling the water. Th is chilled water would then be stored in a cold storage tank in the apartment.

• Hot Water: Same as option 3• Notes: Highest upfront cost but lowest operating cost. Most

sustainable as it requires least amount of combustion.

3736

RevenueCosts +

SUMMARY:

1 cost + revenue Conclusions

Recommendation to building owner:• Our recommendation is to renovate the existing second

fl oor and build out a third story with new construction for residential units.

• Th e 3 story option is recommended for long term investment• Average quality wood frame construction• Mid-range fi nishes and kitchen • A variety of unit types and square footage sizes• First fl oor existing exterior facade remains and is repaired• Second and third story exterior facade is new construction • First fl oor retail space upgraded to enhance the shopping

experience and market appeal for residents and shoppers

Explanation for recommendations:Taking into account hard building costs, soft costs, fi nancial incentives and rent assumptions, it is estimated the building owner will make back the initial investment on the building renovations over a ten year period. Th is does not take into account residential vacancy, operating costs or interest on fi nance options. For a more detailed explanation of this see the operating revenues and programs sections for the two story and three story options.

Average unit SF: 529 SFTotal Annual Rent Revenue: $60,888P/NSF/mo: $1.37

7 unit option rent Assumption

Average unit SF: 650 SFTotal Annual Rent Revenue: $60,456P/NSF/mo: $1.29

6 unit option rent Assumption

Total SF: 10,370 SFCost per SF (hard costs): $138.48Total Cost: $2,510,957Total Cost aft er incentives: $1,236,174Annual Rent Profi t: $121,344Year 1 R.O.I: 17.39%

3 story development finances Total SF: 5,185 SFCost per SF (hard costs): $127.05Total Cost: $1,105,060Total Cost aft er incentives: $668,036Annual Rent Profi t: $60,888Year 1 R.O.I: 9.51%

2 story development finances

Key RatiosFloor GSF 5,185

Floors 2Building GSF 10,370

Residential NSF 3,700Retail NSF 3,309

Building NSF 7,009

Residential Efficiency 71.36%Retail Efficiency 63.82%

Building Efficiency 67.59%

Op. Expense Inflation 3%

Key RatiosFloor GSF 5,185

Floors 3Building GSF 15,555

Residential NSF 7,600Retail NSF 3,309

Building NSF 10,909

Residential Efficiency 146.58%Retail Efficiency 63.82%

Building Efficiency 70.13%

Op. Expense Inflation 3%

Financing AssumptionsTotal Cost 1,105,060$CRP Grant (191,012)

EMC Façade Grant (10,000)20% Historic Tax Credit (236,012)Total After Incentives 668,036$

Debt 83.46% $557,530Equity 16.54% $110,506Total 100.00% $668,036

Annual MonthlyInterest Rate 5.00% 0.42%Amort Period 30 360Debt Service $35,915 $2,993

Financing AssumptionsTotal Cost 2,051,957$CRP Grant (380,391)

EMC Façade Grant (10,000)20% Historic Tax Credit (425,391)Total After Incentives 1,236,174$

Debt 90.00% $1,112,557Equity 10.00% $123,617Total 100.00% $1,236,174

Annual MonthlyInterest Rate 5.00% 0.42%Amort Period 30 360Debt Service $71,669 $5,972

3938

two-Story option:1

2

Two-Story Construction Cost summary

Operating revenues & programs

Square Foot Cost Estimate ReportDetroit Wholesale Produce Apartment Renovation

2614 Riopelle St , Detroit , Michigan , 48207

Building Type:Apartment, 2 Story with Brick Veneer/Wood Frame/Cement Board Exterior

Loca on: DETROIT, MIStory Count: 1 Resident Levels, 1 Retail LevelStory Height (L.F.): 14Floor Area (S.F.): 5,185Labor Type: STDBasement Included: No Cost Per Square Foot: $127.05 Building Cost: $658,754.25

Es mate Name:

** Es mate includes renova on to exis ng 2nd oor space for apartment units

*Costs are derived from a building model with basic components.*Scope di erences and market cond ns can cause costs to vary signi cantly.

ProjectedYear 1 Year 2 Year 3 Year 4 Year 5

Potential Gross Income: Residential 3.0% $16.46 $1.37 $5,074 $60,888 $62,715 $64,596 $66,534 $68,530Potential Gross Income: Retail 3.0% $12.00 $3,309 $39,708 $40,899 $42,126 $43,390 $44,692

Potential Gross Income (PGI) $9.70 $8,383 $100,596 $103,614 $106,722 $109,924 $113,222Stabilized Residential Vacancy 7.00% $1.15 $355 $4,262 $4,390 $4,522 $4,657 $4,797Stabilized Retail Vacancy 7.00% $0.84 $232 $2,780 $2,863 $2,949 $3,037 $3,128

Total Vacancy $587 $7,042 $7,253 $7,471 $7,695 $7,926Effective Gross Income (EGI) $18.71 $7,796 $93,554 $96,361 $99,252 $102,229 $105,296

Operating Expenses % of PGIMarketing and Advertising 1.00% $0.10 $84 $1,006 $1,067 $1,099 $1,132 $1,166Security 2.00% $0.19 $168 $2,012 $2,134 $2,198 $2,264 $2,332Utilities (water, trash, common) 3.00% $0.29 $251 $3,018 $3,202 $3,298 $3,397 $3,499Maintenance and Repairs 6.00% $0.58 $503 $6,036 $6,403 $6,595 $6,793 $6,997Yard/Exterior Maintenance 1.00% $0.10 $84 $1,006 $1,067 $1,099 $1,132 $1,166Miscellaneous 1.00% $0.10 $84 $1,006 $1,067 $1,099 $1,132 $1,166Management fee 5.00% $0.49 $419 $5,030 $5,336 $5,496 $5,661 $5,831Insurance 6.00% $0.58 $503 $6,036 $6,403 $6,595 $6,793 $6,997Property Taxes 77.4 mills $0.67 $582 $6,984 $7,194 $7,410 $7,632 $7,861

Total Operating Expenses 31.94% $3.10 $2,677.79 $32,133 $33,875 $34,891 $35,938 $37,016Total Operating Expenses/Unit $4,590.50 $4,839.23 $4,984.41 $5,133.94 ########

Net Operating Income (NOI) $5.92 $5,118 $61,421 $62,486 $64,361 $66,292 $68,280Replacement Reserves 14.91% $1.45 $1,250 $15,000 $15,450 $15,914 $16,391 $16,883

Return on Cost (NOI/Total Cost after Incentives) 9.19% 9.35% 9.63% 9.92% 10.22%Less Debt Service $3.46 $2,993 $35,915 $35,915 $35,915 $35,915 $35,915Debt Service Coverage Ratio 1.71 1.74 1.79 1.85 1.90

Before Tax Cash Flow (BTCF) $1.01 $875 $10,505 $11,121 $12,532 $13,986 $15,483BTCF Return on Equity (BTCF/Equity) 9.51% 10.06% 11.34% 12.66% 14.01%

Capitalized value at: 10.00% $59.23 $614,208 $624,863 $643,609 $662,917 $682,805Remaining Mortgage: $521,615 $485,699 $449,784 $413,869 $377,953

Operating Revenues MonthlyRate$/GSFper Yr

$/NSFper Mo

2 story program & rent assumptions33

rent assumptions

Uses of Capital Total % Total $Land/Building/Parking Lot 0% $Hard Cost 74% 815,327$Soft Cost 26% 289,733$Total 100.00% 1,105,060$

Sources of CapitalEquity 10% 110,506$First Mortgage 50% 557,530$CRP 17% 191,012$Historic Tax Credits 21% 236,012$Eastern Market Façade Grant 1% 10,000$Total 100% 1,105,060$

Budget P/GSF P/Unit

Land/Buildings/Parking Lot $ $ $Total Acquisition Costs $ $ $

Renovation Construction 658,754$ 63.53$ 94,108$Building Permits 8,234$ 0.79$ 1,176$Security 10,000$ 0.96$ 1,429$Contingency (10%) 65,875$ 11.28$ 9,411$Builders Risk Insurance 6,588$ 0.64$ 941$Construction Manager Fee (10% of Const) 65,875$ 6.35$ 9,411$

Total Hard Costs 815,327$ 83.55$ 116,475$

Architectural & Engingeering Services 44,078$ 4.25$ 6,297$Survey 6,500$ 0.63$ 929$Utilities 5,000$ 0.48$ 714$Environmental Assessments 15,000$ 1.45$ 2,143$Legal Land Use/Lease/Acquisition 15,000$ 1.45$ 2,143$Property Taxes During Construction 6,984$ 0.67$ 998$Soft Cost Contingency 10,000$ 0.96$ 1,429$Financing Fees (2% of loan) 22,170$ 2.14$ 3,167$Historic Tax Credit Transaction Costs 15,000$ 1.45$ 2,143$Developer's Fee (8% of Total Cost) 150,000$ 14.46$ 21,429$

Total Soft Costs 289,733$ 27.94$ 41,390.38$#REF!

1,105,060$ 106.56$ 92,088$Total Costs

Soft Costs

Hard Costs (Construction)

Acquisition

Item

second floor units

4 Acquisition & Development Costs

# of Monthly AnnualUnits Size (NSF) Rent/Unit (Y1) Rent (Y1) P/NSF/mo

Studio 1 450 639$ 7,668$ 1.42$Studio 1 500 710$ 8,520$ 1.42$Studio 1 450 639$ 7,668$ 1.42$Studio 1 500 710$ 8,520$ 1.42$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$Average 1 529 725$ 8,698$ 1.37$Totals 7 3700 5,074$ 60,888$ 1.37$

Unit Type

Residential (2nd Floor)

Studio 1 450 639$ 7,668$ 1.42$Studio 1 500 710$ 8,520$ 1.42$Studio 1 450 639$ 7,668$ 1.42$Studio 1 500 710$ 8,520$ 1.42$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$

w / d

450 sf

450 sf

500 sf 500 sf

600 sf 600 sf 600 sf

4140

5 construction Costs

19% 24.01 124,491.85B1020 Roof Repair/Construction 1.7 8,814.50

1.7 8,814.50B2010 Exterior Walls 14.43 74,819.55

14.43 74,819.55B2020 Exterior Windows 6.01 31,161.85

6.01 31,161.85B2030 Exterior Doors 0.36 1,866.60

0.36 1,866.60B3010 Roof Coverings 1.51 7,829.35

1.34 6,947.900.17 881.45

28% 35.23 182,667.55C1010 Partitions 10.36 53,716.60

6.81 35,309.853.55 18,406.75

C1020 Interior Doors 7.35 38,109.751.23 6,377.556.12 31,732.20

C1030 Fittings 3.38 17,525.303.38 17,525.30

C2010 Stair Construction 0.76 3,940.600.76 3,940.60

C3010 Wall Finishes 2.87 14,880.951.18 6,118.300.98 5,081.300.71 3,681.35

C3020 Floor Finishes 5.74 29,761.901.36 7,051.601.55 8,036.750.36 1,866.600.43 2,229.550.37 1,918.450.43 2,229.551.23 6,377.55

C3030 Ceiling Finishes 4.77 24,732.454.77 24,732.45

Windows, aluminum, sliding, standard glass, 5' x 3'

B Shell

Wood roof, truss, 4/12 slope, 24" O.C., 30' to 43' span

Brick veneer wall repair, insula on & cement board

% of Total Cost Per S.F. Cost

Vinyl wall covering, fabric back, medium weight

Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'-6" x 7'-

Asphalt roo ng, strip shingles, inorganic, Class C, 4" slope, 235-240 lbs/SQFlashing, aluminum, no backing sides, .019"

C Interiors

Wood par on, 5/8" re rated gypsum board face, 1/4"sound deadening 1/2" re rated gypsum board, taped & nished, painted on metal furring

Door, single leaf, wood frame, 3'-0" x 7'-0" x 1-3/8", birch, solid coreDoor, single leaf, wood frame, 3'-0" x 7'-0" x 1-3/8", birch, hollow core

Cabinets, residen , wall, two doors x 48" wide

Stairs, wood, prefab box type, oak treads, wood rails 3'-6" wide, 14 risers

Pain ng, interior on plaster and drywall, walls & ceilings, roller work,

Ceramic e, thin set, 4-1/4" x 4-1/4"

Carpet e, nylon, fusion bonded, 18" x 18" or 24" x 24", 24 ozCarpet e, nylon, fusion bonded, 18" x 18" or 24" x 24", 35 ozCarpet, padding, add to above, 2.7 densityCarpet, padding, add to above, 13.0 densityVinyl, composi on e, minimumVinyl, composi on e, maximumTile, ceramic natural clay

Gypsum board ceilings, 1/2" re rated gypsum board, painted and

50% 63.43 328,884.55D1010 Elevators and Lifts 4.69 24,317.65

4.69 24,317.65D2010 Plumbing Fixtures 15.14 78,500.90

2.23 11,562.550.38 1,970.300.64 3,318.40

3.4 17,629.008.49 44,020.65

D2020 Domestic Water Distribution 4.92 25,510.204.92 25,510.20

D2040 Rain Water Drainage 0.53 2,748.050.31 1,607.350.21 1,088.85

D3010 Energy Supply 9.3 48,220.509.3 48,220.50

D3030 Cooling Generating Systems 9.92 51,435.209.92 51,435.20

D4010 Sprinklers 3.76 19,495.601.7 8,814.50

2.06 10,681.10D5010 Electrical Service/Distribution 4.87 25,250.95

1.01 5,236.852.5 12,962.50

1.37 7,103.45D5020 Lighting and Branch Wiring 7.9 40,961.50

3.17 16,436.450.65 3,370.250.57 2,955.450.47 2,436.950.36 1,866.602.68 13,895.80

D5030 Communications and Security 2.2 11,407.000.97 5,029.450.61 3,162.850.62 3,214.70

D5090 Other Electrical Systems 0.2 1,037.000.2 1,037.00

3% 4.38 22,710.30E1090 Appliances 4.38 22,710.30

7 Refrigerators @800 ea 1.08 5,599.807 Stoves @600 ea. 0.81 4,199.857 Dishwashers @550 ea. 0.73 3,785.057 Washer/Dryer Stacked @1,300 ea 1.76 9,125.60

100% $127.05 $658,754.25 $127.05 $658,754.25

Kitchen sink w/trim, countertop, PE on CI, 24" x 21", single bowl

D Services

Hydraulic passenger elevator, 3500 lb., 3 oors, 10' story height, 125 FPM

Internet wiring, 2 data/voice outlets per 1000 S.F.

Overhead service installa on, includes breakers, metering, 20' conduit &

Laundry sink w/trim, PE on CI, black iron frame, 24" x 20", single comptService sink w/trim, PE on CI, corner oor, 28" x 28", w/rim guardBathroom, lavatory & water closet, 2 wall plumbing, stand aloneBathroom, three xture, 2 wall plumbing, lavatory, water closet &

Gas red water heater, residen , 100< F rise, 30 gal tank, 32 GPH

Roof drain, DWV PVC, 4" diam, diam, 10' highRoof drain, DWV PVC, 4" diam, for each addi onal foot add

Apartment building hea ng system, n tube radia on, forced hot water,

Packaged chiller, air cooled, with fan coil unit, medical centers, 20,000 SF,

Wet pipe sprinkler systems, steel, light hazard, 1 oor, 5000 SFWet pipe sprinkler systems, steel, light hazard, each addi onal oor, 5000

Central air condi oning power, 3 wa sMotor installa on, three phase, 200 V, 15 HP motor sizeIncandescent xtures recess mounted, type A, 1 wa per SF, 8 FC, 6

Communica on and alarm systems, re detec on, addressable, 25 Fire alarm command center, addressable without voice, excl. wire &

Feeder installa on 600 V, including RGS conduit and XHHW wire, 600 ASwitchgear installa on, incl switchboard, panels & circuit breaker,

Receptacles incl plate, box, conduit, wire, 10 per 1000 SF, 1.2 wa s per SFWall switches, 2.5 per 1000 SFMiscellaneous power, 2 wa s

E Equipment & Furnishings

SubTotalTotal Building Cost**** Indicates Assemblies or Components have been customized.

Generator sets, w/ba ery, charger, mu er and transfer switch,

4342

Three-Story option:1

2

Three-Story Construction Cost summary

Operating revenues & programs

Square Foot Cost Estimate ReportDetroit Wholesale Produce Apartment Renovation & Addition

2614 Riopelle St , Detroit , Michigan , 48207

Building Type:Apartment, 3 Story with Brick Veneer/Wood Frame/Cement Board Exterior

Loca n: DETROIT, MIStory Count: 2 Resident Levels, 1 Retail LevelStory Height (L.F.): 14Floor Area (S.F.): 10,370Labor Type: STDBasement Included: No Cost Per Square Foot: $138.48 Building Cost: $1,436,037.60

Es mate Name:

** Es mate includes renova n to exis ng 2nd space for apartment units, and addi n of a 3rd story for apartment units.

*Costs are derived from a building model with basic components.*Scope di rences and market condi ons can cause costs to vary sign cantly.

ProjectedYear 1 Year 2 Year 3 Year 4 Year 5

Potential Gross Income: Residential 3.0% $24.27 $2.02 $10,112 $121,344 $124,984 $128,734 $132,596 $136,574Potential Gross Income: Retail 3.0% $12.00 $4,000 $48,000 $49,440 $50,923 $52,451 $54,024

Potential Gross Income (PGI) $10.89 $14,112 $169,344 $174,424 $179,657 $185,047 $190,598Stabilized Residential Vacancy 7.00% $1.12 $708 $8,494 $8,749 $9,011 $9,282 $9,560Stabilized Retail Vacancy 7.00% $1.02 $280 $3,360 $3,461 $3,565 $3,672 $3,782

Total Vacancy $988 $11,854 $12,210 $12,576 $12,953 $13,342Effective Gross Income (EGI) $31.50 $13,124 $157,490 $162,215 $167,081 $172,093 $177,256

Operating Expenses % of PGIMarketing and Advertising 1.00% $0.11 $141 $1,693 $1,797 $1,850 $1,906 $1,963Security 2.00% $0.22 $282 $3,387 $3,593 $3,701 $3,812 $3,926Utilities (water, trash, common) 3.00% $0.33 $423 $5,080 $5,390 $5,551 $5,718 $5,889Maintenance and Repairs 6.00% $0.65 $847 $10,161 $10,779 $11,103 $11,436 $11,779Yard/Exterior Maintenance 1.00% $0.11 $141 $1,693 $1,797 $1,850 $1,906 $1,963Miscellaneous 1.00% $0.11 $141 $1,693 $1,797 $1,850 $1,906 $1,963Management fee 5.00% $0.54 $706 $8,467 $8,983 $9,252 $9,530 $9,816Insurance 6.00% $0.65 $847 $10,161 $10,779 $11,103 $11,436 $11,779Property Taxes 77.4 mills $0.45 $582 $6,984 $7,194 $7,410 $7,632 $7,861

Total Operating Expenses 29.12% $3.17 $4,110.04 $49,320 $52,108 $53,672 $55,282 $56,940Total Operating Expenses/Unit $3,288 $3,474 $3,578 $3,685 $3,796

Net Operating Income (NOI) $6.95 $9,014 $108,169 $110,106 $113,410 $116,812 $120,316Replacement Reserves 8.86% $0.96 $1,250 $15,000 $15,450 $15,914 $16,391 $16,883

Return on Cost (NOI/Total Cost after Incentives) 8.75% 8.91% 9.17% 9.45% 9.73%Less Debt Service $4.61 $5,972 $71,669 $71,669 $71,669 $71,669 $71,669Debt Service Coverage Ratio 1.51 1.54 1.58 1.63 1.68

Before Tax Cash Flow (BTCF) $1.38 $1,792 $21,500 $22,987 $25,827 $28,752 $31,764BTCF Return on Equity (BTCF/Equity) 17.39% 18.60% 20.89% 23.26% 25.70%

Capitalized value at: 10.00% $69.54 $1,081,694 $1,101,063 $1,134,095 $1,168,118 $1,203,162Remaining Mortgage: $1,040,887 $969,218 $897,549 $825,879 $754,210

Operating Revenues MonthlyRate$/GSFper Yr

$/GSFper Mo

3 story program & rent assumptions33

third floor units

Uses of Capital Total % Total $Land/Building/Parking Lot 0.00% $Hard Cost 83.52% 1,713,722$Soft Cost 16.48% 338,235$Total 100.00% 2,051,957$

Sources of CapitalOwners Equity 6% 123,617$First Mortgage 54% 1,112,557$CRP 19% 380,391$Historic Tax Credits 21% 425,391$Eastern Market Façade Grant 0% 10,000$Total 100% 2,051,957$

Budget P/GSF P/Unit

Land/Buildings/Parking Lot $ $ $Total Acquisition Costs $ $ $

Renovation Construction 1,393,638$ 89.59$ 107,203$Building Permits 17,420$ 1.12$ 1,340$Security 10,000$ 0.64$ 769$Contingency (10%) 139,364$ 11.28$ 10,720$Builders Risk Insurance 13,936$ 0.90$ 1,072$Construction Manager Fee (10% of Const) 139,364$ 8.96$ 10,720$Total Hard Costs 1,713,722$ 112.49$ 131,825$

Architectural & Engingeering Services 92,580$ 5.95$ 7,122$Survey 6,500$ 0.42$ 500$Utilities 5,000$ 0.32$ 385$Environmental Assessments 15,000$ 0.96$ 1,154$Legal Land Use/Lease/Acquisition 15,000$ 0.96$ 1,154$Property Taxes During Construction 6,984$ 0.45$ 537$Soft Cost Contingency 10,000$ 0.64$ 769$Financing Fees (2% of loan) 22,170$ 1.43$ 1,705$Historic Tax Credit Transaction Costs 15,000$ 0.96$ 1,154$Developer's Fee (8% of Total Cost) 150,000$ 9.64$ 11,538$

Total Soft Costs 338,235$ 21.74$ 26,018.07$#REF!2,051,957$ 131.92$ 170,996$Total Costs

Soft Costs

Hard Costs (Construction)

Acquisition

Item

w / d

Rent assumptions

# of Monthly AnnualUnits Size (NSF) Rent/Unit (Y1) Rent (Y1) P/NSF/mo

Studio 1 450 639$ 7,668$ 1.42$Studio 1 500 710$ 8,520$ 1.42$Studio 1 450 639$ 7,668$ 1.42$Studio 1 500 710$ 8,520$ 1.42$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$2 BD 2 BA 1 800 976$ 11,712$ 1.22$2 BD 2 BA 1 800 976$ 11,712$ 1.22$Studio 1 500 710$ 8,520$ 1.42$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$Averages 1 585 778$ 9,334$ 1.33$Totals 13 7600 10,112$ 121,344$ 1.33$

Unit Type

Residential (2nd & 3rd Floor)

Studio 1 500 710$ 8,520$ 1.42$$ ,$ $1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$1 BD 1 BA 1 600 792$ 9,504$ 1.32$

2 BD 2 BA 1 800 976$ 11,712$ 1.22$2 BD 2 BA 1 800 976$ 11,712$ 1.22$

450 sf

800 sf 800 sf

600 sf 600 sf 600 sf

4 Acquisition & Development Costs

4544

5 construction Costs

25.79% 35.72 370,384.11B1010 Floor Construction 6.53 67,755.46

2.47 25,653.312.63 27,227.991.43 14,874.16

B1020 Roof Construction 3.41 35,328.103.41 35,328.10

B2010 Exterior Walls 17.9 185,605.1317.9 185,605.13

B2020 Exterior Windows 6.01 62,280.856.01 62,280.85

B2030 Exterior Doors 0.36 3,730.290.36 3,730.29

B3010 Roof Coverings 1.51 15,684.281.34 13,934.800.17 1,749.48

25.45% 35.24 365,480.13C1010 Partitions 10.36 107,479.83

6.81 70,633.993.55 36,845.84

C1020 Interior Doors 7.35 76,220.821.23 12,786.836.12 63,433.99

C1030 Fittings 3.38 35,101.823.38 35,101.82

C2010 Stair Construction 0.76 7,887.990.76 7,887.99

C3010 Wall Finishes 2.87 29,796.331.18 12,284.160.98 10,131.900.71 7,380.27

C3020 Floor Finishes 5.74 59,485.301.36 14,145.471.55 16,084.930.36 3,682.860.43 4,477.720.37 3,876.490.43 4,480.591.23 12,737.24

C3030 Ceiling Finishes 4.77 49,508.044.77 49,508.04

Ceramic e, thin set, 4-1/4" x 4-1/4"

Carpet e, nylon, fusion bonded, 18" x 18" or 24" x 24", 24 ozCarpet e, nylon, fusion bonded, 18" x 18" or 24" x 24", 35 ozCarpet, padding, add to above, 2.7 densityCarpet, padding, add to above, 13.0 densityVinyl, composi n e, minimumVinyl, composi n e, maximumTile, ceramic natural clay

Gypsum board ceilings, 1/2" e rated gypsum board, painted and

Vinyl wall covering, fabric back, medium weight

Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'-6" x 7'-

Asphalt roo ng, strip shingles, inorganic, Class C, 4" slope, 235-240 lbs/SQFlashing, aluminum, no backing sides, .019"

C Interiors

Wood par n, 5/8" e rated gypsum board face, 1/4"sound deadening 1/2" e rated gypsum board, taped & nished, painted on metal furring

Door, single leaf, wood frame, 3'-0" x 7'-0" x 1-3/8", birch, solid coreDoor, single leaf, wood frame, 3'-0" x 7'-0" x 1-3/8", birch, hollow core

Cabinets, residen al, wall, two doors x 48" wide

Stairs, wood, prefab box type, oak treads, wood rails 3'-6" wide, 14 risers

Pain ng, interior on plaster and drywall, walls & ceilings, roller work,

Windows, aluminum, sliding, standard glass, 5' x 3'

B Shell

Steel column, W8, 150 KIPS, 10' unsupported height, 35 PLFFloor, wood joist, 2 x 12 @12" O.C., 1/2" CDX sub rFireproo ng, gypsum board, e rated, 3 layer, 1.5" thick, 8" steel column,

Wood roof, truss, 4/12 slope, 24" O.C., 30' to 43' span

Brick veneer wall repair, 2x6 studs @ 16", insula n & cement board

% of Total Cost Per S.F. Cost

50% 63.43 328,884.55D1010 Elevators and Lifts 4.69 24,317.65

4.69 24,317.65D2010 Plumbing Fixtures 15.14 78,500.90

2.23 11,562.550.38 1,970.300.64 3,318.40

3.4 17,629.008.49 44,020.65

D2020 Domestic Water Distribution 4.92 25,510.204.92 25,510.20

D2040 Rain Water Drainage 0.53 2,748.050.31 1,607.350.21 1,088.85

D3010 Energy Supply 9.3 48,220.509.3 48,220.50

D3030 Cooling Generating Systems 9.92 51,435.209.92 51,435.20

D4010 Sprinklers 3.76 19,495.601.7 8,814.50

2.06 10,681.10D5010 Electrical Service/Distribution 4.87 25,250.95

1.01 5,236.852.5 12,962.50

1.37 7,103.45D5020 Lighting and Branch Wiring 7.9 40,961.50

3.17 16,436.450.65 3,370.250.57 2,955.450.47 2,436.950.36 1,866.602.68 13,895.80

D5030 Communications and Security 2.2 11,407.000.97 5,029.450.61 3,162.850.62 3,214.70

D5090 Other Electrical Systems 0.2 1,037.000.2 1,037.00

3% 4.38 22,710.30E1090 Appliances 4.38 22,710.30

7 Refrigerators @800 ea 1.08 5,599.807 Stoves @600 ea. 0.81 4,199.857 Dishwashers @550 ea. 0.73 3,785.057 Washer/Dryer Stacked @1,300 ea 1.76 9,125.60

100% $127.05 $658,754.25 $127.05 $658,754.25

Kitchen sink w/trim, countertop, PE on CI, 24" x 21", single bowl

D Services

Hydraulic passenger elevator, 3500 lb., 3 oors, 10' story height, 125 FPM

Internet wiring, 2 data/voice outlets per 1000 S.F.

Overhead service installa on, includes breakers, metering, 20' conduit &

Laundry sink w/trim, PE on CI, black iron frame, 24" x 20", single comptService sink w/trim, PE on CI, corner oor, 28" x 28", w/rim guardBathroom, lavatory & water closet, 2 wall plumbing, stand aloneBathroom, three xture, 2 wall plumbing, lavatory, water closet &

Gas red water heater, residen , 100< F rise, 30 gal tank, 32 GPH

Roof drain, DWV PVC, 4" diam, diam, 10' highRoof drain, DWV PVC, 4" diam, for each addi onal foot add

Apartment building hea ng system, n tube radia on, forced hot water,

Packaged chiller, air cooled, with fan coil unit, medical centers, 20,000 SF,

Wet pipe sprinkler systems, steel, light hazard, 1 oor, 5000 SFWet pipe sprinkler systems, steel, light hazard, each addi onal oor, 5000

Central air condi oning power, 3 wa sMotor installa on, three phase, 200 V, 15 HP motor sizeIncandescent xtures recess mounted, type A, 1 wa per SF, 8 FC, 6

Communica on and alarm systems, re detec on, addressable, 25 Fire alarm command center, addressable without voice, excl. wire &

Feeder installa on 600 V, including RGS conduit and XHHW wire, 600 ASwitchgear installa on, incl switchboard, panels & circuit breaker,

Receptacles incl plate, box, conduit, wire, 10 per 1000 SF, 1.2 wa s per SFWall switches, 2.5 per 1000 SFMiscellaneous power, 2 wa s

E Equipment & Furnishings

SubTotalTotal Building Cost**** Indicates Assemblies or Components have been customized.

Generator sets, w/ba ery, charger, mu er and transfer switch,

46

sources:1. “Recover Green Roofs.” Recover Green Roofs. N.p., 2015. Web. 07 Aug. 2015. <http://recover-greenroofs.com/?projects=watermark-residenc-es-greenroof>.

2. “Eastern Market.” Eastern Market. N.p., 2015. Web. 07 Aug. 2015. <http://www.easternmarket.com/>.

3. “Detroit Historical Society | Where the past Is Present.” Detroit Historical Society | Where the past Is Present. N.p., 2015. Web. 07 Aug. 2015. <http://detroithistorical.org/>.

4. “Building Science Corporation.” Building Sci-ence Corporation. N.p., 2015. Web. 07 Aug. 2015. <http://buildingscience.com/>.

5. ”Google Maps.” Google Maps. N.p., 2015. Web. 09 Aug. 2015. <http://www.google.com/maps>.

6. “Collectors & Evacuated Tubes.” Solar Collec-tors and Evacuated Tubes Mississauga. N.p., 2015. Web. 09 Aug. 2015. <http://www.solkraft .ca/mis-sissauga-collectors-evacuated-tubes.php>.