peter porraro, multifamily development today
DESCRIPTION
Peter porraro, Multifamily Development TodayTRANSCRIPT
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ULI Spring 2012
West Hempstead, Long Island TOD Development
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West 130 – TOD Case Study
• Market Analysis - Market Area; Demand Factors; Supply Factors
• Site Selection• Land Use and Zoning• Product Design and Site Plan• Financing and Investment• Construction
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MARKETING ANALYSISWest 130
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Long Island Regional Map
• Starts just 18 miles east of Manhattan• Two Counties – Nassau (287 square miles) & Suffolk
(911 square miles) • Extensive public transportation network (LIRR) • 1,180 miles of shore-line
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Rental Housing - Metrics
Long Island Demographics
Population: 2.8 million
Total Employment: 1.2 million
Unemployment: 7.2%
Average HH Income: $175,000
MF Rental Completions
2006 1,016
2007 -
2008 -
2009 226
2010 -
2011 210Source: Long Island Housing Index 2007; REIS Report 2011
84% of existing rental housing stock was built prior to 1979 (REIS)
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SITE SELECTIONWest 130
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• 1960’s Hotel• “Hourly Hotel”• Source of crime• Community eyesore
Site Acquisition
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West 130 Location Map
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Site Aerial
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•Station literally outside front door• 50 minutes to Penn Station
Rail and Bus Network
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LAND USE AND ZONING West 130
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Benefits to Community
• Permanent Closure and Elimination of the Courtesy Hotel and source of crime/blight
• New, Distinctive Gateway to West Hempstead• Creation of Sense of Place: with Attractive Building, Enhanced
Streetscape, and Sidewalk Improvements• New Choice of Upscale Apartment Living• Catalyst for Further Redevelopment and Community Improvements• Revitalization of West Hempstead LIRR train station• Generate a positive trend in neighborhood real estate values• Set example of a Public / Private Collaboration
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Entitlement Timeline
March 2006 Purchase Contract
November 2006 Submit Rezoning Application
November 2008 SEQR Approval (State Environmental Quality Review)
December 2008 Adoption of CA-S Zone &Rezoning Approval
June 2009 Site Plan Approval
July 2009 IDA Inducement (PILOT)
October 2010 Building Permit Approval
February 2011 Close and Start Construction
Timeline
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Entitlement Process
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PRODUCT DESIGN/SITE PLANWest 130
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Project DescriptionBuilding Program
Size: 3 Acres
Density: 50 units per Acre
Building Type: 5A Construction4-story over 2 levels parking
Units: 150 Market Rate
Mix: 1 Bedroom: 35%2 Bedroom: 57%3 Bedroom: 8%
Average Unit Size 1,085 SF
Amenities: 4,000 SF Clubhouse; Fitness Center; I-lounge; Café; Wii-theatre; Landscaped Courtyards and Pool
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Floor Plan
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Underground Parking Garage
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FINANCING AND INVESTMENT
West 130
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Cost Item Total Per Unit Per SF
• Hard Cost: $28, 500,000 $190,000 $175
• Land/Soft Cost: $15,500,000 $103,333 $ 53
• Total Costs: $44,000,000 $293,333 $228
Average Rent/SF: $2.46
Average NSF: 1,085
Average Rent/Home: $2,670
Units 150
Project Cost Summary
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Dollar % of Total Per UnitCategory Amount Cost
DebtTotal Construction Debt: $28, 500,000 65% $190,000
EquityTotal Equity: $15,500,000 35% $103,333
Total Capitalization $44,000,000 100% $293,333
Un-Trended
Yield on Total Project Cost: 8.0%+
Market Cap Rates: 4.75%
Units 150
Capitalization
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CONSTRUCTIONWest 130
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May 2011
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May 2011
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May 2011
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November 2011
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November 2011
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August 2011
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February 2012
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April 2012
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Vision Long Island Smart Growth Award Recipient