financial considerations; determining developer’s roi in downtown palmetto bay 223 k 185 k 189 k...
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Financial Considerations; Determining Developer’s ROI in Downtown Palmetto
Bay
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Land Costs• Land Market Value - $ 2,120,000 (based on
values shown by Zillow)• Potential Market Price Increase - $636,000
(based on 30%)• Est. Land Cost - $2,756,000• Land Cost Per Unit - $13,500• Minimum No. of Units – 205
(2,756,000/13,500)
Construction Costs• 2/2 Condo Builder’s Cost (875 SF) - $83,125
($95/SF)• Open/ Common Spaces Premium - $17,000
(20%)• Parking garage - $35,000 (2 spaces/
$17,500 ea.)• Land Cost Per Unit - $13,500• Soft Costs - $16,000 (overhead)• Impact/ Permitting Fees - $4,000• Commissions - $5,600 (3%)• Total Developer Cost - $174,225 Per Unit
Target Selling Price $210,000 Per Unit
(18.5% ROI)
DRTFStudy AreaBoundariesNorth:• SW 158th Street
East: • 97th Ave to SW 174 St• 93rd Ave to SW 168th St• 91st Ct to SW 158th St
West• US 1 southbound Ln
South• Eureka Drive
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PROJECT PHASES
Phase 1
Phase 2
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Other Factors of Importance
• Residents– Services close to home– Green areas buffering
single-family homes– Urban Parks– Public Plazas– Pedestrian-friendly design– Attractive roads and
public right-of-ways– Protect residential
neighborhoods
• Businesses– Zoning regulations that
allow for a viable ROI– Business Patronage– Combination of
businesses & residences– Attractive Area– Attractive roads and
public right-of-ways
Is it having choices for shopping close to home?
What Does Quality of Life Mean to You?
Is it green areas and open spaces?
What Does Quality of Life Mean to You?
Is it pedestrian-friendly neighborhoods?
What Does Quality of Life Mean to You?
Is it public plazas?
What Does Quality of Life Mean to You?
Is it having dining options in your own community?
What Does Quality of Life Mean to You?
Is it the attention to details in the public areas?
What Does Quality of Life Mean to You?
Is it the attractive streets and public right-of-ways?
What Does Quality of Life Mean to You?
Let’s Talk About the “D” Word• Density is typically associated with ugliness, crowding, and congestion• If planned and designed properly, higher density can be attractive, bring
people together, and save land, energy and dollars• Most people have difficulty estimating density from visual cues. • We tend to overestimate the density of poorly-planned developments
and underestimate the density of well-designed, attractive projects.
Same general density, but
which one do you prefer?
Components of a Well-Designed Urban Project
• Frequency of Entries• Building Articulation• Setbacks & Recessed
Buildings• Streetscape Design
In retail areas, a high frequency of entries supports and generates
pedestrian activity.
Building articulation is the varying building design elements that create interest. Building setbacks are the distance that buildings must be set-back from the property line.
Which do you prefer?Downtown Palmetto Bay 2013
Downtown Palmetto Bay 2013
Mizner Park, FL
Which do you prefer?
Abacoa, FL
Downtown Palmetto Bay- 2013
Downtown Palmetto Bay- 2013
Santana Row, CA
Case Study- Mizner ParkImpact on Tax-Assessed Values in Downtown Boca Raton
• 1991 - CRA purchases the 28.7-acre Boca Raton Mall site for $58 million; issues a long-term lease for mixed-use development on 12 acres and reserves the remainder for parks, plazas and civic uses.
• Mall lifespan was 14 years; Mizner Park has been there for 23 years and it’s still successful
• Project stimulated development for the entire downtown area; turned an area of 73 units with lower-than-market rate rent values to 689 units with the highest rental rates in all of South Florida.
• This translated into a 14-fold increase in assessed property values in the area from 1990 to 2002
• Consensus for Phase 1:– Franjo Road as Main Street– Mixed-use District– Entertainment District– Office/ Residential District– Civic District– Parking Garages– Varying Heights
DRTF Planning Workshop
DRTF Recommendations
• Main Street & Downtown Districts– Franjo Road as
Main Street– Mixed-use District– Entertainment
District– Office/ Residential
District– Medical District– Civic District
Main Street
Mixed-Use
Mixed-Use
Residential- Multifamily
Medical District
Office/ Residential
Civic/Park
Mixe
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