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HUB625
          where life happens




Image courtesy of: Laura Doran
VISION
Vision




Image courtesy of: Laura Doran
SITE CONTEXT
Primary Market Area
Location   Secondary Market Area




                               N
Primary Market Area
Location   Secondary Market Area




                               N
Primary Market Area
Location   Secondary Market Area




                               N
Primary Market Area
Location   Secondary Market Area




                               N
Primary Market Area
Location   Secondary Market Area




                               N
Primary Market Area
Location   Secondary Market Area




                               N
Primary Market Area
Location   Secondary Market Area




                               N
Location


              HS/C-2-C




           C-2-A




                         N
Historical Conditions




1920’s   1930’s   1968   2003   2016
Demographic Trends

                 SUMMARY            2010    2011     2016

    Population                      9,505   10,166   11,568

    Households                      4,328   4,642    5,384

    Families                        1,751   1,875    2,118

    Average Household Size          2.14     2.14     2.11

    Owner Occupied Housing Units    2,234   2,331    2,624

    Renter Occupied Housing Units   2,094   2,310    2,761

    Median Age                      33.9     33.8     33.7
Demographic Trends

                 SUMMARY            2010    2011     2016

    Population                      9,505   10,166   11,568

    Households                      4,328   4,642    5,384
        Younger people in smaller families
    Families                  1,751 1,875 2,118
               filling more households,
    Average Household Size     2.14  2.14  2.11
       looking to buy, but primarily to rent.
    Owner Occupied Housing Units    2,234   2,331    2,624

    Renter Occupied Housing Units   2,094   2,310    2,761

    Median Age                      33.9     33.8     33.7
Psychdemographics

                 LIBERAL 33.6
                            YEARS OLD OLDER THAN 65
 37.7 YEARS OLD 70% BLACKSINGLE PARENTS 12% HISPANIC

TECH-SAVY 80% BLACK LIVING ALONE MARRIED COUPLES LIVING ALONE
 MARRIED COUPLES 35.5 YEARS OLD NATURAL/ORGANIC FOODS
  FOOTBALL $60,191 AMI $43,548 AMI LIVING ALONE
                                                PUBLIC TRANSPORTATION
          LOW FIXED INCOME FAST FOOD                              WHITE
                                POLITCALLY ACTIVE   $34,356 AMI
  20% UNEMPLOYMENT NO CAR          YOGA PASSES 18.6% UNEMPLOYMENT
        32.5 YEARS OLD
                RENTERS PUBLIC TRANSPORTATION $61,498 AMI
 SINGLES      SINGLES
         IN-STORE SHOPPING SINGLE PARENT FAMILIES
  WHITECOLLAR ROOMATES RENTERS NO CAR SOCIAL SECURITY INCOME
Psychdemographics

            LIBERAL

TECH-SAVY                                  LIVING ALONE
                        35.5 YEARS OLD NATURAL/ORGANIC FOODS



                                 YOGA PASSES
                RENTERS
 SINGLES

                      ROOMATES
Psychdemographics
Residential Market
    Row houses, older low-rise

  Population increase, family size
             decrease

  Home prices rose 11.2% in April

   1,648 units to deliver by 2015

     360 H Street, 610 H Street

Walkable urban area that contains all
     neighborhood amenities

                 MEDIAN RENT
        Studio            $ 1,520
        One Bedroom       $ 1,550
        Two Bedroom       $ 2,400
        Three Bedroom     $ 2,710
Office Market
    11 million SF existing in Capitol
     Hill/NoMa, 681,000 planned

        Steady employment levels

                  H St Arts District                            316 F ST NE


          Neighborhood Services

              12% overall vacancy

           Gap: Smaller Class B
                                                    Average
Class Buildings    Inventory   Vacancy   Pipeline
                                                     Rent
 A       41        9,093,623    7.8%     681,085    $ 61.13
 B       22        2,094,677    3.0%                $ 47.75
 C       16         474,238    30.0%                $ 42.86
                                                              Constitution Square
Total    79       11,662,538   12.0%     681,085    $ 53.63
Retail Gap
 $16,000,000

 $14,000,000

 $12,000,000

 $10,000,000

  $8,000,000

  $6,000,000

  $4,000,000

  $2,000,000

         $0

 -$2,000,000
HUB625
The Building
Program

                                         Multifamily         Retail        Office

                                     Total Res Units                        146
                                     Multifamily Units- Average Size              716
                                     Multifamily Units NSF                    104,592

                                     Retails (NSF)                            36382.5

                                     Office NSF                              78,698.90

                                     Gross SF                                244,238.5
                                     Number of Buildings/Rentable Floors          1/7
                                     Parking Spaces                               153




                                 N

Image courtesy of: Laura Doran
Program

                                         Multifamily         Retail        Office

                                     Total Res Units                        146
                                     Multifamily Units- Average Size              716
                                     Multifamily Units NSF                    104,592

                                     Retails (NSF)                            36382.5

                                     Office NSF                              78,698.90

                                     Gross SF                                244,238.5
                                     Number of Buildings/Rentable Floors          1/7
                                     Parking Spaces                               153




                                 N

Image courtesy of: Laura Doran
Program

                                         Multifamily         Retail        Office

                                     Total Res Units                        146
                                     Multifamily Units- Average Size              716
                                     Multifamily Units NSF                    104,592

                                     Retails (NSF)                            36382.5

                                     Office NSF                              78,698.90

                                     Gross SF                                244,238.5
                                     Number of Buildings/Rentable Floors          1/7
                                     Parking Spaces                               153




                                 N

Image courtesy of: Laura Doran
Program

                                         Multifamily         Retail        Office

                                     Total Res Units                        146
                                     Multifamily Units- Average Size              716
                                     Multifamily Units NSF                    104,592

                                     Retails (NSF)                            36382.5

                                     Office NSF                              78,698.90

                                     Gross SF                                244,238.5
                                     Number of Buildings/Rentable Floors          1/7
                                     Parking Spaces                               153




                                 N

Image courtesy of: Laura Doran
Program

                                         Multifamily         Retail        Office

                                     Total Res Units                        146
                                     Multifamily Units- Average Size              716
                                     Multifamily Units NSF                    104,592

                                     Retails (NSF)                            36382.5

                                     Office NSF                              78,698.90

                                     Gross SF                                244,238.5
                                     Number of Buildings/Rentable Floors          1/7
                                     Parking Spaces                               153




                                 N

Image courtesy of: Laura Doran
Program

                                         Multifamily         Retail        Office

                                     Total Res Units                        146
                                     Multifamily Units- Average Size              716
                                     Multifamily Units NSF                    104,592

                                     Retails (NSF)                            36382.5

                                     Office NSF                              78,698.90

                                     Gross SF                                244,238.5
                                     Number of Buildings/Rentable Floors          1/7
                                     Parking Spaces                               153




                                 N

Image courtesy of: Laura Doran
Target Market
Program

 A gym. Not another personal training
center or a boutique gym. Just a place
  to workout. We need to have more
businesses that cater to neighborhood
 needs rather than another restaurant
     that is filled with people from
elsewhere in the city. There are plenty
of places to eat and get drunk already.
          Tom Aloisia, Near NorthEast Resident
Architecture
 Design and Sustainability




Image courtesy of: Laura Doran
Architecture
 Design and Sustainability
                                                Brick traditions of Washington, DC
                                               Light and modern European design
                                              Overlapping volumes highlight uses
                                 Street level access to first floor multifamily units


                                      Local and sustainable building techniques
                                  From predevelopment to operation and beyond


                                                  Mix of local and national tenants
                                        Community Amenities: Gardens, ZipCars
                                           Gallery space available for community
                                                          events and organizations
                                                Multifamily units face the existing
                                      residential with Green Space in between to
                                                      sponsor casual interactions




Image courtesy of: Laura Doran
Architecture
 Design and Sustainability
                                                Brick traditions of Washington, DC
                                               Light and modern European design
                                              Overlapping volumes highlight uses
                                 Street level access to first floor multifamily units


                                      Local and sustainable building techniques
                                  From predevelopment to operation and beyond


                                                  Mix of local and national tenants
                                        Community Amenities: Gardens, ZipCars
                                           Gallery space available for community
                                                          events and organizations
                                                Multifamily units face the existing
                                      residential with Green Space in between to
                                                      sponsor casual interactions




Image courtesy of: Laura Doran
FINANCE AND RETURNS
Uses Summary
                       Development Cost Summary
     Project Cost                         Total             per GSF
     Land Cost                            $     5,286,024   $             72.00
     Hard Costs                           $ 34,912,925      $            142.95
     Soft Costs                           $     9,756,953   $             39.95
     Fees and Administration              $     3,117,990   $             12.77
     Net Development Costs
     Financing- Interest Expenses, Fees   $4,717,779     $19.32
     Net Interest Cost                    $    2,203,550 $                 9.02
     Total Development Costs              $59,995,222    $245.64


                                                             Land Cost

                                                             Hard Costs

                                                             Soft Costs

                                                             Fees and Administration

                                                             Financing- Interest
                                                             Expenses, Fees
                                                             Net Interest Cost
Sources Summary
     Summary of Capitalization
     Equity (35% of Total Cost)                    $       9,760,289
                at Land Closing                    $       1,850,108
                at Construction                    $       7,910,180
     Construction Loan                             $      14,690,334
                Loan to Cost Ratio                               75%
                Loan Interest (5%)                 $   (2,203,550.17)
     Permanent Loan                                       $38,996,894
                Loan to Cost Ratio/Loan to Value                 75%
                Interest Rate                                     5%
                Amortization                                 25 years




                                                        Equity
                                                        Loan
Ten Year ProForma
                                                     Predevelopment                                Construction                              Lease Up                                 Stabilization                           Sale
                                       YEAR 0            YEAR 1             YEAR 2             YEAR 3        YEAR 4                 YEAR 5          YEAR 6              YEAR 7          YEAR 8            YEAR 9            YEAR 10
                                        2012               2013              2014               2015              2016               2017             2018               2019         2020        2021                         2022
         Net Operating Income      $            -      $          -     $            -     $            -     $            -    $      679,859    $    7,332,765    $    7,552,748 $ 7,779,331 $ 8,012,711             $        6,069,799


                   Hard Costs $          -             $          -    $ (15,926,457)     $ (18,986,469)      $            -    $             -   $            -    $                - $          -   $            -   $                -
                    Soft Costs $  (623,598)           $    (623,598)   $    (7,034,563)   $      (851,595)   $     (623,598)    $     (691,584)   $    (733,277)    $    (755,275) $       (777,933) $     (801,271) $          (606,980)
            Development Fees $    (480,492)           $     (31,180)   $    (3,197,322)   $    (2,762,450)   $      (31,180)    $      (92,367)   $            -    $            -    $           - $              -   $                -
                    Land Cost $ (5,338,884)            $          -     $            -     $            -     $            -    $             -
                                                                                                                                                  $   (1,393,225)   $ (1,435,022) $ (1,478,073) $ (1,522,415)          $       (1,153,262)
      Total Development Costs $        (6,442,974)    $    (654,778)   $ (26,158,342)     $ (22,600,515)     $     (654,778)    $     (783,951)
                                                                                                                                                  $            -    $                - $          - $              -   $      133,545,177
                    Sale Price     $            -      $          -     $            -     $            -     $            -    $             -
                                                                                                                                                  $    5,939,540    $    6,117,726 $       6,301,258 $     6,490,296 $        138,461,714
 Cash Flow Before Debt Service $       (6,442,974)    $    (654,778)   $ (26,158,342)     $ (22,600,515)     $     (654,778)    $     (104,092)
                                                                                                                                                                          $             $             $
                                                                                                                                                  $   (2,776,698)                                                      $        (831,751)
                                                                                                                                                                     (2,776,698)   (2,776,698)   (2,776,698)
         Total Financing Costs $       (22,355.48)    $ (767,889.95)   $ (767,889.95)     $ (768,660.83)     $(2,776,698.48)    $   (2,776,698)   $   (2,776,698)   $ (2,776,698) $ (2,776,698) $ (2,776,698)          $        (831,751)

               Loan Proceeds $ 13,196,204             $    4,407,100   $     8,814,201    $     1,469,033           0                 0                 0                 0                 0                0                  0


  Cash Flow After Debt Service $       6,730,874      $    3,029,143   $ (18,067,320)     $ (21,853,889)     $    (3,431,476)   $   (2,880,791)   $    3,162,841    $    3,341,028 $       3,524,559 $     3,713,597       $ 137,629,963



      DSCR                                                                                                                                            2.64               2.72              2.80            2.89
Retail
         Tenant                        RPGSF         TI        Lease Term       Lease Type
                  Bank of America    $      70   $        45       10              NNN
                           FedEx     $      70   $        45       10              NNN
                        Balducci's   $      55   $        70       10              NNN
                         Big Bear    $      70   $        65        5              NNN
                       True Value    $      55   $        70       10              NNN
                             Gym     $      50   $        40       10              NNN
                           Gallery   $      20   $        15        5              NNN

         Rental Income                                                      $      1,296,073

                         PreLeasing Period                             18 months
                     Percentage PreLeased                            80%
                            Total PreLeased                       29,106 SF
                                Stabilization                        90% occupancy
           Monthly Absorption- Post Delivery                        3000 SF/mo
                      Mo. Until Stabilization                           2 months
Retail
Stabilized Year One Net Operating Income
                                              Leasing            Stabilized
                                    UPS $          72,000    $         73,440
                               Balducci's $      270,000     $       278,100
                         Bank of America $         72,000    $         74,160
                              True Value $       270,000     $       278,100
                                Big Bear $       135,000     $       139,050
                                    Gym $        416,250     $       428,738
                           Gallery Space $         90,000    $         92,700


                   Gross Potential Income $    1,325,250     $      1,364,288

                  Vacancy/Collection Loss $      (66,263)    $        (68,214)
                         Gross Revenue $       1,258,988     $      1,296,073


                    Tenant Improvements $      (1,627,500)   $                -
                     Leasing Commission $       (420,750)    $                -
                     Operating Expenses $       (251,798)    $       (259,351)

                   OPEX Reimbursement $          251,798     $       259,351

                         Total Expenses $      (2,048,250)   $                -


                   Net Operating Income $       (789,263)    $      1,296,073
Office

         Tenant                   RPGSF     TI    Lease Term       Lease Type
                   Major Tenant $      35 $    35     10              NNN
                   Minor Tenant $      40 $    35     5               NNN

         Rental Income                                         $      3,130,937

                          PreLeasing Period               18 months
                      Percentage PreLeased              60%
                            Total PreLeased          47,219 SF
                                 Stabilization          90% occupancy
            Monthly Absorption- Post Delivery           3000 SF/mo
                         Mo. Until Stabilization           9 months
Office
Stabilized Year One Net Operating Income
                                               Leasing           Stabilized

                    Gross Potential Income $    2,951,209    $        1,461,104


                   Vacancy/Collection Loss $     (295,121)   $         (313,094)

                           Gross Revenue $      2,656,088    $        2,817,844

                     Tenant Improvements $     (2,754,462)   $                -

                      Leasing Commission $       (649,266)   $                -
                      Operating Expenses $       (531,218)   $         (563,569)
                                     CAM $         (9,637)   $          (10,223)

                    OPEX Reimbursement $          531,218    $          563,569

                           Total Expenses $    (3,413,364)   $          (10,223)


                     Net Operating Income $      (757,276)   $        2,807,620
Multi-Family
                                                Average  Current
        Description              # of Units       SF    Rental Rate       Rent PSF
        Average Market Unit
        Studio                           82          585 $   1,755    $         3.00
        One Bed                          25          765 $   2,142    $         2.80
        Two Bed                          15          960 $   2,496    $         2.60

        IZ Units
        50% Affordable Units              12
        80% Affordable Units              12

        Total                           146

        Rental Income                                                 $    2,853,835
        Concessions (1 mo. Free rent)                                 $     (246,020)

                         PreLeasing Period                        2 months
                           Total PreLeased                       16 units
                                Stabilization                  90% occupancy
           Monthly Absorption- Post Delivery                     14 leases/mo.
                      Mo. Until Stabilization                     8 Months
Multifamily
Stabilized Year One Net Operating Income



                                                 Leasing

                     Gross Potential Income $     3,170,928

                     Vacancy/Collection Loss $     (317,093)
                             Gross Revenue $      2,853,835

                                Concessions $      (246,020)
                         Operating Expenses $      (570,767)
                                  Insurance $       (36,500)

                            Total Expenses $       (853,287)

                      Net Operating Income $      2,000,548
Parking
                                                          Building Cost     Stabilized Net Operating Income
                                     Total Rent Per
                 Spots Rent Per Spot      Year              Per Spot
                                                                                  Parking Income $    320,880
    Rental Parking 137 $   200       $ 328,080        $       17,000.00                    ZipCar $    (7,200)
   Surface parking 13   $    -       $         -      $               -
            ZipCar 3    $ (200)      $    (7,200)     $       17,000.00
                                                                          Gross Potential Income $    313,680
Rental Income                                         $       320,880     Vacancy/Collection Loss $   (31,368)
                                                                                 Gross Revenue $      282,312
Required Parking
            Retail 48
                                                                              Operating Expenses $    (56,462)
            Office 44
       Residential 61                                                            Total Expenses $     (56,462)

            Total 153                                                      Net Operating Income $     225,850
Ten Year ProForma
                                                     Predevelopment                                Construction                              Lease Up                                 Stabilization                           Sale
                                       YEAR 0            YEAR 1             YEAR 2             YEAR 3        YEAR 4                 YEAR 5          YEAR 6              YEAR 7          YEAR 8            YEAR 9            YEAR 10
                                        2012               2013              2014               2015              2016               2017             2018               2019         2020        2021                         2022
         Net Operating Income      $            -      $          -     $            -     $            -     $            -    $      679,859    $    7,332,765    $    7,552,748 $ 7,779,331 $ 8,012,711             $        6,069,799


                   Hard Costs $          -             $          -    $ (15,926,457)     $ (18,986,469)      $            -    $             -   $            -    $                - $          -   $            -   $                -
                    Soft Costs $  (623,598)           $    (623,598)   $    (7,034,563)   $      (851,595)   $     (623,598)    $     (691,584)   $    (733,277)    $    (755,275) $       (777,933) $     (801,271) $          (606,980)
            Development Fees $    (480,492)           $     (31,180)   $    (3,197,322)   $    (2,762,450)   $      (31,180)    $      (92,367)   $            -    $            -    $           - $              -   $                -
                    Land Cost $ (5,338,884)            $          -     $            -     $            -     $            -    $             -
                                                                                                                                                  $   (1,393,225)   $ (1,435,022) $ (1,478,073) $ (1,522,415)          $       (1,153,262)
      Total Development Costs $        (6,442,974)    $    (654,778)   $ (26,158,342)     $ (22,600,515)     $     (654,778)    $     (783,951)
                                                                                                                                                  $            -    $                - $          - $              -   $      133,545,177
                    Sale Price     $            -      $          -     $            -     $            -     $            -    $             -
                                                                                                                                                  $    5,939,540    $    6,117,726 $       6,301,258 $     6,490,296 $        138,461,714
 Cash Flow Before Debt Service $       (6,442,974)    $    (654,778)   $ (26,158,342)     $ (22,600,515)     $     (654,778)    $     (104,092)
                                                                                                                                                                          $             $             $
                                                                                                                                                  $   (2,776,698)                                                      $        (831,751)
                                                                                                                                                                     (2,776,698)   (2,776,698)   (2,776,698)
         Total Financing Costs $       (22,355.48)    $ (767,889.95)   $ (767,889.95)     $ (768,660.83)     $(2,776,698.48)    $   (2,776,698)   $   (2,776,698)   $ (2,776,698) $ (2,776,698) $ (2,776,698)          $        (831,751)

               Loan Proceeds $ 13,196,204             $    4,407,100   $     8,814,201    $     1,469,033           0                 0                 0                 0                 0                0                  0


  Cash Flow After Debt Service $       6,730,874      $    3,029,143   $ (18,067,320)     $ (21,853,889)     $    (3,431,476)   $   (2,880,791)   $    3,162,841    $    3,341,028 $       3,524,559 $     3,713,597       $ 137,629,963



      DSCR                                                                                                                                            2.64               2.72              2.80            2.89
Exit Strategy


                                 CAP RATE Analysis
       Year 9 NOI
                    Cap Rate          5.75%          6.00%         6.25%
                         NOI $     8,012,711 $   8,012,711 $   8,012,711
                       Value $   139,351,489 $ 133,545,177 $ 128,203,370
Development Returns

                             UNLEVERAGED IRR            15.3%
                                LEVERAGED IRR           17.8%
               LEVERAGED EQUITY MULTIPLIER               3.21

                      WHOLE $ PROFIT (UNLEV.)       $106,695,055
                         WHOLE $ PROFIT (LEV.)      $104,190,808



        Leveraged Equity Required $    47,181,181   Equity Multiplier

        Leveraged Equity Returned $   151,371,989         3.208
Construction and Leasing Schedule


Pre-Construction
May 2012 – Sept 2013




Due Diligence               Groundbreaking          Retail PreLeasing
Planning                         Sitework           Office PreLeasing
Zoning                    Building Construction      Res PreLeasing
Land Acquisition            Project Delivery            Retail Leasing
Schematic Design                                        Office Leasing
Design Development
                                                  Residential Leasing
Construction Documents
                                                              Branding
Permitting
                                                             Marketing
Bidding and Negotiation
                                                   Tenant Occupancy
Construction and Leasing Schedule


Pre-Construction          Construction
May 2012 – Sept 2013      Oct 2013 – June 2015




Due Diligence                  Groundbreaking          Retail PreLeasing
Planning                            Sitework           Office PreLeasing
Zoning                       Building Construction      Res PreLeasing
Land Acquisition               Project Delivery            Retail Leasing
Schematic Design                                           Office Leasing
Design Development
                                                     Residential Leasing
Construction Documents
                                                                 Branding
Permitting
                                                                Marketing
Bidding and Negotiation
                                                      Tenant Occupancy
Construction and Leasing Schedule


Pre-Construction          Construction               Leasing
May 2012 – Sept 2013      Oct 2013 – June 2015       Aug 2013– April 2016




Due Diligence                  Groundbreaking                  Retail PreLeasing
Planning                            Sitework                   Office PreLeasing
Zoning                       Building Construction              Res PreLeasing
Land Acquisition               Project Delivery                    Retail Leasing
Schematic Design                                                   Office Leasing
Design Development
                                                             Residential Leasing
Construction Documents
                                                                         Branding
Permitting
                                                                        Marketing
Bidding and Negotiation
                                                              Tenant Occupancy
Risks
Case Study
14th and U Street NW and H Street NE


 They had tough turns after
the riots of the 1960s. Now,
they are both undergoing a
 sort of renaissance. At the
end of it, they will emerge as
 the city’s two great jewels.
  Jose C. Sousa, Planning and Economic Development Office
14th & U St. NW   H St. Corridor

Case Study
14th and U Street NW and H Street NE


 They had tough turns after
the riots of the 1960s. Now,
they are both undergoing a
 sort of renaissance. At the
end of it, they will emerge as
 the city’s two great jewels.
  Jose C. Sousa, Planning and Economic Development Office
Conclusion




Image courtesy of: Laura Doran
Acknowledgements
                       Jon Eisen
                   Rob Wolcheski

                     Laura Doran

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E hedeman presentation 051112

  • 1. HUB625 where life happens Image courtesy of: Laura Doran
  • 5. Primary Market Area Location Secondary Market Area N
  • 6. Primary Market Area Location Secondary Market Area N
  • 7. Primary Market Area Location Secondary Market Area N
  • 8. Primary Market Area Location Secondary Market Area N
  • 9. Primary Market Area Location Secondary Market Area N
  • 10. Primary Market Area Location Secondary Market Area N
  • 11. Primary Market Area Location Secondary Market Area N
  • 12. Location HS/C-2-C C-2-A N
  • 13. Historical Conditions 1920’s 1930’s 1968 2003 2016
  • 14. Demographic Trends SUMMARY 2010 2011 2016 Population 9,505 10,166 11,568 Households 4,328 4,642 5,384 Families 1,751 1,875 2,118 Average Household Size 2.14 2.14 2.11 Owner Occupied Housing Units 2,234 2,331 2,624 Renter Occupied Housing Units 2,094 2,310 2,761 Median Age 33.9 33.8 33.7
  • 15. Demographic Trends SUMMARY 2010 2011 2016 Population 9,505 10,166 11,568 Households 4,328 4,642 5,384 Younger people in smaller families Families 1,751 1,875 2,118 filling more households, Average Household Size 2.14 2.14 2.11 looking to buy, but primarily to rent. Owner Occupied Housing Units 2,234 2,331 2,624 Renter Occupied Housing Units 2,094 2,310 2,761 Median Age 33.9 33.8 33.7
  • 16. Psychdemographics LIBERAL 33.6 YEARS OLD OLDER THAN 65 37.7 YEARS OLD 70% BLACKSINGLE PARENTS 12% HISPANIC TECH-SAVY 80% BLACK LIVING ALONE MARRIED COUPLES LIVING ALONE MARRIED COUPLES 35.5 YEARS OLD NATURAL/ORGANIC FOODS FOOTBALL $60,191 AMI $43,548 AMI LIVING ALONE PUBLIC TRANSPORTATION LOW FIXED INCOME FAST FOOD WHITE POLITCALLY ACTIVE $34,356 AMI 20% UNEMPLOYMENT NO CAR YOGA PASSES 18.6% UNEMPLOYMENT 32.5 YEARS OLD RENTERS PUBLIC TRANSPORTATION $61,498 AMI SINGLES SINGLES IN-STORE SHOPPING SINGLE PARENT FAMILIES WHITECOLLAR ROOMATES RENTERS NO CAR SOCIAL SECURITY INCOME
  • 17. Psychdemographics LIBERAL TECH-SAVY LIVING ALONE 35.5 YEARS OLD NATURAL/ORGANIC FOODS YOGA PASSES RENTERS SINGLES ROOMATES
  • 19. Residential Market Row houses, older low-rise Population increase, family size decrease Home prices rose 11.2% in April 1,648 units to deliver by 2015 360 H Street, 610 H Street Walkable urban area that contains all neighborhood amenities MEDIAN RENT Studio $ 1,520 One Bedroom $ 1,550 Two Bedroom $ 2,400 Three Bedroom $ 2,710
  • 20. Office Market 11 million SF existing in Capitol Hill/NoMa, 681,000 planned Steady employment levels H St Arts District 316 F ST NE Neighborhood Services 12% overall vacancy Gap: Smaller Class B Average Class Buildings Inventory Vacancy Pipeline Rent A 41 9,093,623 7.8% 681,085 $ 61.13 B 22 2,094,677 3.0% $ 47.75 C 16 474,238 30.0% $ 42.86 Constitution Square Total 79 11,662,538 12.0% 681,085 $ 53.63
  • 21. Retail Gap $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 -$2,000,000
  • 23. Program Multifamily Retail Office Total Res Units 146 Multifamily Units- Average Size 716 Multifamily Units NSF 104,592 Retails (NSF) 36382.5 Office NSF 78,698.90 Gross SF 244,238.5 Number of Buildings/Rentable Floors 1/7 Parking Spaces 153 N Image courtesy of: Laura Doran
  • 24. Program Multifamily Retail Office Total Res Units 146 Multifamily Units- Average Size 716 Multifamily Units NSF 104,592 Retails (NSF) 36382.5 Office NSF 78,698.90 Gross SF 244,238.5 Number of Buildings/Rentable Floors 1/7 Parking Spaces 153 N Image courtesy of: Laura Doran
  • 25. Program Multifamily Retail Office Total Res Units 146 Multifamily Units- Average Size 716 Multifamily Units NSF 104,592 Retails (NSF) 36382.5 Office NSF 78,698.90 Gross SF 244,238.5 Number of Buildings/Rentable Floors 1/7 Parking Spaces 153 N Image courtesy of: Laura Doran
  • 26. Program Multifamily Retail Office Total Res Units 146 Multifamily Units- Average Size 716 Multifamily Units NSF 104,592 Retails (NSF) 36382.5 Office NSF 78,698.90 Gross SF 244,238.5 Number of Buildings/Rentable Floors 1/7 Parking Spaces 153 N Image courtesy of: Laura Doran
  • 27. Program Multifamily Retail Office Total Res Units 146 Multifamily Units- Average Size 716 Multifamily Units NSF 104,592 Retails (NSF) 36382.5 Office NSF 78,698.90 Gross SF 244,238.5 Number of Buildings/Rentable Floors 1/7 Parking Spaces 153 N Image courtesy of: Laura Doran
  • 28. Program Multifamily Retail Office Total Res Units 146 Multifamily Units- Average Size 716 Multifamily Units NSF 104,592 Retails (NSF) 36382.5 Office NSF 78,698.90 Gross SF 244,238.5 Number of Buildings/Rentable Floors 1/7 Parking Spaces 153 N Image courtesy of: Laura Doran
  • 30. Program A gym. Not another personal training center or a boutique gym. Just a place to workout. We need to have more businesses that cater to neighborhood needs rather than another restaurant that is filled with people from elsewhere in the city. There are plenty of places to eat and get drunk already. Tom Aloisia, Near NorthEast Resident
  • 31. Architecture Design and Sustainability Image courtesy of: Laura Doran
  • 32. Architecture Design and Sustainability Brick traditions of Washington, DC Light and modern European design Overlapping volumes highlight uses Street level access to first floor multifamily units Local and sustainable building techniques From predevelopment to operation and beyond Mix of local and national tenants Community Amenities: Gardens, ZipCars Gallery space available for community events and organizations Multifamily units face the existing residential with Green Space in between to sponsor casual interactions Image courtesy of: Laura Doran
  • 33. Architecture Design and Sustainability Brick traditions of Washington, DC Light and modern European design Overlapping volumes highlight uses Street level access to first floor multifamily units Local and sustainable building techniques From predevelopment to operation and beyond Mix of local and national tenants Community Amenities: Gardens, ZipCars Gallery space available for community events and organizations Multifamily units face the existing residential with Green Space in between to sponsor casual interactions Image courtesy of: Laura Doran
  • 35. Uses Summary Development Cost Summary Project Cost Total per GSF Land Cost $ 5,286,024 $ 72.00 Hard Costs $ 34,912,925 $ 142.95 Soft Costs $ 9,756,953 $ 39.95 Fees and Administration $ 3,117,990 $ 12.77 Net Development Costs Financing- Interest Expenses, Fees $4,717,779 $19.32 Net Interest Cost $ 2,203,550 $ 9.02 Total Development Costs $59,995,222 $245.64 Land Cost Hard Costs Soft Costs Fees and Administration Financing- Interest Expenses, Fees Net Interest Cost
  • 36. Sources Summary Summary of Capitalization Equity (35% of Total Cost) $ 9,760,289 at Land Closing $ 1,850,108 at Construction $ 7,910,180 Construction Loan $ 14,690,334 Loan to Cost Ratio 75% Loan Interest (5%) $ (2,203,550.17) Permanent Loan $38,996,894 Loan to Cost Ratio/Loan to Value 75% Interest Rate 5% Amortization 25 years Equity Loan
  • 37. Ten Year ProForma Predevelopment Construction Lease Up Stabilization Sale YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Operating Income $ - $ - $ - $ - $ - $ 679,859 $ 7,332,765 $ 7,552,748 $ 7,779,331 $ 8,012,711 $ 6,069,799 Hard Costs $ - $ - $ (15,926,457) $ (18,986,469) $ - $ - $ - $ - $ - $ - $ - Soft Costs $ (623,598) $ (623,598) $ (7,034,563) $ (851,595) $ (623,598) $ (691,584) $ (733,277) $ (755,275) $ (777,933) $ (801,271) $ (606,980) Development Fees $ (480,492) $ (31,180) $ (3,197,322) $ (2,762,450) $ (31,180) $ (92,367) $ - $ - $ - $ - $ - Land Cost $ (5,338,884) $ - $ - $ - $ - $ - $ (1,393,225) $ (1,435,022) $ (1,478,073) $ (1,522,415) $ (1,153,262) Total Development Costs $ (6,442,974) $ (654,778) $ (26,158,342) $ (22,600,515) $ (654,778) $ (783,951) $ - $ - $ - $ - $ 133,545,177 Sale Price $ - $ - $ - $ - $ - $ - $ 5,939,540 $ 6,117,726 $ 6,301,258 $ 6,490,296 $ 138,461,714 Cash Flow Before Debt Service $ (6,442,974) $ (654,778) $ (26,158,342) $ (22,600,515) $ (654,778) $ (104,092) $ $ $ $ (2,776,698) $ (831,751) (2,776,698) (2,776,698) (2,776,698) Total Financing Costs $ (22,355.48) $ (767,889.95) $ (767,889.95) $ (768,660.83) $(2,776,698.48) $ (2,776,698) $ (2,776,698) $ (2,776,698) $ (2,776,698) $ (2,776,698) $ (831,751) Loan Proceeds $ 13,196,204 $ 4,407,100 $ 8,814,201 $ 1,469,033 0 0 0 0 0 0 0 Cash Flow After Debt Service $ 6,730,874 $ 3,029,143 $ (18,067,320) $ (21,853,889) $ (3,431,476) $ (2,880,791) $ 3,162,841 $ 3,341,028 $ 3,524,559 $ 3,713,597 $ 137,629,963 DSCR 2.64 2.72 2.80 2.89
  • 38. Retail Tenant RPGSF TI Lease Term Lease Type Bank of America $ 70 $ 45 10 NNN FedEx $ 70 $ 45 10 NNN Balducci's $ 55 $ 70 10 NNN Big Bear $ 70 $ 65 5 NNN True Value $ 55 $ 70 10 NNN Gym $ 50 $ 40 10 NNN Gallery $ 20 $ 15 5 NNN Rental Income $ 1,296,073 PreLeasing Period 18 months Percentage PreLeased 80% Total PreLeased 29,106 SF Stabilization 90% occupancy Monthly Absorption- Post Delivery 3000 SF/mo Mo. Until Stabilization 2 months
  • 39. Retail Stabilized Year One Net Operating Income Leasing Stabilized UPS $ 72,000 $ 73,440 Balducci's $ 270,000 $ 278,100 Bank of America $ 72,000 $ 74,160 True Value $ 270,000 $ 278,100 Big Bear $ 135,000 $ 139,050 Gym $ 416,250 $ 428,738 Gallery Space $ 90,000 $ 92,700 Gross Potential Income $ 1,325,250 $ 1,364,288 Vacancy/Collection Loss $ (66,263) $ (68,214) Gross Revenue $ 1,258,988 $ 1,296,073 Tenant Improvements $ (1,627,500) $ - Leasing Commission $ (420,750) $ - Operating Expenses $ (251,798) $ (259,351) OPEX Reimbursement $ 251,798 $ 259,351 Total Expenses $ (2,048,250) $ - Net Operating Income $ (789,263) $ 1,296,073
  • 40. Office Tenant RPGSF TI Lease Term Lease Type Major Tenant $ 35 $ 35 10 NNN Minor Tenant $ 40 $ 35 5 NNN Rental Income $ 3,130,937 PreLeasing Period 18 months Percentage PreLeased 60% Total PreLeased 47,219 SF Stabilization 90% occupancy Monthly Absorption- Post Delivery 3000 SF/mo Mo. Until Stabilization 9 months
  • 41. Office Stabilized Year One Net Operating Income Leasing Stabilized Gross Potential Income $ 2,951,209 $ 1,461,104 Vacancy/Collection Loss $ (295,121) $ (313,094) Gross Revenue $ 2,656,088 $ 2,817,844 Tenant Improvements $ (2,754,462) $ - Leasing Commission $ (649,266) $ - Operating Expenses $ (531,218) $ (563,569) CAM $ (9,637) $ (10,223) OPEX Reimbursement $ 531,218 $ 563,569 Total Expenses $ (3,413,364) $ (10,223) Net Operating Income $ (757,276) $ 2,807,620
  • 42. Multi-Family Average Current Description # of Units SF Rental Rate Rent PSF Average Market Unit Studio 82 585 $ 1,755 $ 3.00 One Bed 25 765 $ 2,142 $ 2.80 Two Bed 15 960 $ 2,496 $ 2.60 IZ Units 50% Affordable Units 12 80% Affordable Units 12 Total 146 Rental Income $ 2,853,835 Concessions (1 mo. Free rent) $ (246,020) PreLeasing Period 2 months Total PreLeased 16 units Stabilization 90% occupancy Monthly Absorption- Post Delivery 14 leases/mo. Mo. Until Stabilization 8 Months
  • 43. Multifamily Stabilized Year One Net Operating Income Leasing Gross Potential Income $ 3,170,928 Vacancy/Collection Loss $ (317,093) Gross Revenue $ 2,853,835 Concessions $ (246,020) Operating Expenses $ (570,767) Insurance $ (36,500) Total Expenses $ (853,287) Net Operating Income $ 2,000,548
  • 44. Parking Building Cost Stabilized Net Operating Income Total Rent Per Spots Rent Per Spot Year Per Spot Parking Income $ 320,880 Rental Parking 137 $ 200 $ 328,080 $ 17,000.00 ZipCar $ (7,200) Surface parking 13 $ - $ - $ - ZipCar 3 $ (200) $ (7,200) $ 17,000.00 Gross Potential Income $ 313,680 Rental Income $ 320,880 Vacancy/Collection Loss $ (31,368) Gross Revenue $ 282,312 Required Parking Retail 48 Operating Expenses $ (56,462) Office 44 Residential 61 Total Expenses $ (56,462) Total 153 Net Operating Income $ 225,850
  • 45. Ten Year ProForma Predevelopment Construction Lease Up Stabilization Sale YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Operating Income $ - $ - $ - $ - $ - $ 679,859 $ 7,332,765 $ 7,552,748 $ 7,779,331 $ 8,012,711 $ 6,069,799 Hard Costs $ - $ - $ (15,926,457) $ (18,986,469) $ - $ - $ - $ - $ - $ - $ - Soft Costs $ (623,598) $ (623,598) $ (7,034,563) $ (851,595) $ (623,598) $ (691,584) $ (733,277) $ (755,275) $ (777,933) $ (801,271) $ (606,980) Development Fees $ (480,492) $ (31,180) $ (3,197,322) $ (2,762,450) $ (31,180) $ (92,367) $ - $ - $ - $ - $ - Land Cost $ (5,338,884) $ - $ - $ - $ - $ - $ (1,393,225) $ (1,435,022) $ (1,478,073) $ (1,522,415) $ (1,153,262) Total Development Costs $ (6,442,974) $ (654,778) $ (26,158,342) $ (22,600,515) $ (654,778) $ (783,951) $ - $ - $ - $ - $ 133,545,177 Sale Price $ - $ - $ - $ - $ - $ - $ 5,939,540 $ 6,117,726 $ 6,301,258 $ 6,490,296 $ 138,461,714 Cash Flow Before Debt Service $ (6,442,974) $ (654,778) $ (26,158,342) $ (22,600,515) $ (654,778) $ (104,092) $ $ $ $ (2,776,698) $ (831,751) (2,776,698) (2,776,698) (2,776,698) Total Financing Costs $ (22,355.48) $ (767,889.95) $ (767,889.95) $ (768,660.83) $(2,776,698.48) $ (2,776,698) $ (2,776,698) $ (2,776,698) $ (2,776,698) $ (2,776,698) $ (831,751) Loan Proceeds $ 13,196,204 $ 4,407,100 $ 8,814,201 $ 1,469,033 0 0 0 0 0 0 0 Cash Flow After Debt Service $ 6,730,874 $ 3,029,143 $ (18,067,320) $ (21,853,889) $ (3,431,476) $ (2,880,791) $ 3,162,841 $ 3,341,028 $ 3,524,559 $ 3,713,597 $ 137,629,963 DSCR 2.64 2.72 2.80 2.89
  • 46. Exit Strategy CAP RATE Analysis Year 9 NOI Cap Rate 5.75% 6.00% 6.25% NOI $ 8,012,711 $ 8,012,711 $ 8,012,711 Value $ 139,351,489 $ 133,545,177 $ 128,203,370
  • 47. Development Returns UNLEVERAGED IRR 15.3% LEVERAGED IRR 17.8% LEVERAGED EQUITY MULTIPLIER 3.21 WHOLE $ PROFIT (UNLEV.) $106,695,055 WHOLE $ PROFIT (LEV.) $104,190,808 Leveraged Equity Required $ 47,181,181 Equity Multiplier Leveraged Equity Returned $ 151,371,989 3.208
  • 48. Construction and Leasing Schedule Pre-Construction May 2012 – Sept 2013 Due Diligence Groundbreaking Retail PreLeasing Planning Sitework Office PreLeasing Zoning Building Construction Res PreLeasing Land Acquisition Project Delivery Retail Leasing Schematic Design Office Leasing Design Development Residential Leasing Construction Documents Branding Permitting Marketing Bidding and Negotiation Tenant Occupancy
  • 49. Construction and Leasing Schedule Pre-Construction Construction May 2012 – Sept 2013 Oct 2013 – June 2015 Due Diligence Groundbreaking Retail PreLeasing Planning Sitework Office PreLeasing Zoning Building Construction Res PreLeasing Land Acquisition Project Delivery Retail Leasing Schematic Design Office Leasing Design Development Residential Leasing Construction Documents Branding Permitting Marketing Bidding and Negotiation Tenant Occupancy
  • 50. Construction and Leasing Schedule Pre-Construction Construction Leasing May 2012 – Sept 2013 Oct 2013 – June 2015 Aug 2013– April 2016 Due Diligence Groundbreaking Retail PreLeasing Planning Sitework Office PreLeasing Zoning Building Construction Res PreLeasing Land Acquisition Project Delivery Retail Leasing Schematic Design Office Leasing Design Development Residential Leasing Construction Documents Branding Permitting Marketing Bidding and Negotiation Tenant Occupancy
  • 51. Risks
  • 52. Case Study 14th and U Street NW and H Street NE They had tough turns after the riots of the 1960s. Now, they are both undergoing a sort of renaissance. At the end of it, they will emerge as the city’s two great jewels. Jose C. Sousa, Planning and Economic Development Office
  • 53. 14th & U St. NW H St. Corridor Case Study 14th and U Street NW and H Street NE They had tough turns after the riots of the 1960s. Now, they are both undergoing a sort of renaissance. At the end of it, they will emerge as the city’s two great jewels. Jose C. Sousa, Planning and Economic Development Office
  • 55. Acknowledgements Jon Eisen Rob Wolcheski Laura Doran

Notas do Editor

  1. Mixed use project in the up and coming H Street Corridor**** square feetRetail, Office, ResidentialProvides needed neighborhood goods and services** IRR** Return on InvestmentHUB 625 is a mixed use project in the up and coming H Street Ne Corridor. Retail, office and residential uses are seamlessly integrated over Arevitalizedperforming arts scene,hipster bars, and a boom of high-endresidential units are reshaping H Street,NE quickly. The neighborhood’s populationis increasing and bringing with it new businessesand new consumers.H Street, NE’s one-and-a-half mile commercialcorridor is home to over 100 retail shops and acollection of new coffee houses, restaurants anddiverse retail opportunities catering to DC’syoung professionals and long-time residents.Construction and renovation of approximately1,000 residential units, building renovationsand storefront improvements—along withstreetscape improvements currently underway—Why H Street, NEare breathing energy and excitement into thisneighborhood bordered by Capitol Hill, StantonPark and Near Northeast.The Atlas Performing Arts Center, a restoredArt Deco landmark theater, and the H StreetPlayhouse have become regional destinationsfor patrons of the performing arts. The Rock andRoll Hotel and other H Street venues beckon thelive music crowd.More than 67,000 passengers and customers passthrough nearby Union Station on Metrorail everyday. Thousands of others arrive via Amtrak andcommuter rail, which are all within steps of atransformed H Street, NE.
  2. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  3. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  4. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  5. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  6. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  7. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  8. Physical, visual, as well as emotional barriers that exist in the neighborhoods around the site define the primary trade area
  9. ZoningFarAllowed uses
  10. Trolley brought people and increased retail spending into the areaBecame a strong residential neighborhood with a prominent professional class, and large retail anchors: sears, people’s drug, giant, woolworthsAs the automobile became more prevalent, people started moving out of the area, and the riots of 1968 after MJK jr’s assassination devastated the area, and fell into disrepairBeginning in 2003, the DC govt began large scale funding efforts- great streets, h street main street, programs. Through transportation improvements, retail and development grants, large scale private investment, h street is on its way to regaining I‘ts past stature. It appears that the introduction of retailers and the trolley, which stimulated the area almost 100 years ago will once again revitalize the area. The District began redeveloping the H St Corridor nine years ago with visions of restoring the once bustling retail center to it’s former glory. The corridor was part of the inagural class of areas to undergo the “Greats Street Initiative,” a program that strives to “transform the H Street, NE Corridor into a thriving and inviting neighborhood center.” According to the city’s vistion, H Street will be full of “hip but has young families” and is “international, multilingual and diverse.” Under the H Street Great Streets and Streetcar project $65 million will be invested in new street-lights, curbs & sidewalks and trees & landscaping. In addition the H Street Main Street and DC Department of Small and Local Business Development is providing business assistance and commercial property improvement services. The nightlife of the area has been quick to develop, due to the large scale investments made by bar magnate Joe Englert. Initial investors in the H St Corridor weren’t subjected to the high standards present today, the planning, development and economics offices is looking for businesses that will fulfill the daily needs of the residents. Daily goods and service that will transition the area from a nightlife destination toa 24 hour active neighborhood.
  11. The population of the Primary trade area is expected to increase by 1,402 persons over the next five years with an overall increase in households of 726. The number of families is expected to continue to rise, increasing by 243, but the average family size is going to decrease to 2.11 after leveling off at the current size of 2.14 persons.the age distribution of the primary trade area is highest within the 25-34 age group, 28% of the 2011 population. High concentrations are also found in the 35-44, 45-54 age groups (16.6% and 12.3%, respectively). This shows a high concentration of young and settled professionals in the area, with a low number of families. A second group of citizens that cannot be ignored is the number of senior citizens that are aging in place. The number of seniors (ages 55-74) is projected to increase from 2011 to 2016 by a total of <(978-1178)+(472-633)+(267-301)= number> persons.
  12. The population of the Primary trade area is expected to increase by 1,402 persons over the next five years with an overall increase in households of 726. The number of families is expected to continue to rise, increasing by 243, but the average family size is going to decrease to 2.11 after leveling off at the current size of 2.14 persons.the age distribution of the primary trade area is highest within the 25-34 age group, 28% of the 2011 population. High concentrations are also found in the 35-44, 45-54 age groups (16.6% and 12.3%, respectively). This shows a high concentration of young and settled professionals in the area, with a low number of families. A second group of citizens that cannot be ignored is the number of senior citizens that are aging in place. The number of seniors (ages 55-74) is projected to increase from 2011 to 2016 by a total of <(978-1178)+(472-633)+(267-301)= number> persons.
  13. Urban Rows: This group makes up almost half of the primary market area demogpraic profile. This gorup is shrinking due to urban renewal programs. Median age is 33.6 years, with hoseholds consisting of marrie d couples, single parent families and gradparents as caregivers within multi-generational families. 70% of this population is black, and 12% is hispanic. Median household income is $34, 356 and is the lowest among all sectors within the H St NE Primary market area. This popualation often holds jobs in whitecollar fields such as the health care industry, and local governement jobs. Unemployment is double the US rate, at 20%. Households are primarily row houses and single family dwelligns and 60% of these are owner occupied with the mortgage paid off generations ago. Trendsetters: A young, diverse and mobile group, trendsetters are comprised of singles livivng alone or with roomates. A younger group, with a median age of 35.5, this group is diverse with a high percentage of asian and hispanic persons. Medan household income is $61,498 and most have attended college, with one quarter holding a graduate degree. Over two-thirds fo this group are renters and about twenty percent don’t own a vehicle. This politically liberal group is a great consumer base to have. They shop in stores, stay up to date with technology, and are itnerested in maintaining their health; often purchasing natural/organic foods, vitamins, and health memberships or yoga passes. Social Security Set: With the majority of these citizens living alone, the majority live on a low fixed income but have accumulated wealth in their earlier years that they subsist on. 40% of houeholders are older than 65 years, and do not drive- therefore relying completely on public transportation. Limited and finintefianncialresourses determine the spending habits of this group. They shop is discount stores, bank in person, and rely on television and newspapers to stay current on sports and the news. City Strivers: This diverse group is comprised of a young (median age of 32.5 years),diverse (80% black), and varied family types (68 percent mix of married couples, single parents, and other families). A comparitively lower median income of $43,548 is often supplemented by Supplemental Security income or public assistance income. A high unemployment rate, of 18.6% is also present. Two-thirds of this population rent apartments in older, multi-tenant buildings. About 40% of these households do not own a car and rely soley on public transportation. This group prefers lower cost retail providers and often consumer fast food. Frequent watchers of athletic events, such as football and basketball, they also play tennis and basketball. Metropolitians: This group prefers to live in older city neighborhods. Evenly divided between singles who live alone or wiht others, and married couple families- the median age is 37.7 years, and the majority of the group is white. A solid labor force participation rate, a high secondary education completion rate, and a median hosuehold income of $60.191 are furhter descriptors of this group. This group pursues an active urbane lifestlye, travel frequently, and overall, are active members of their community. They join civic clubs, volunteer for environmental causes, and often work for a political party or candidate.
  14. Urban Rows: This group makes up almost half of the primary market area demogpraic profile. This gorup is shrinking due to urban renewal programs. Median age is 33.6 years, with hoseholds consisting of marrie d couples, single parent families and gradparents as caregivers within multi-generational families. 70% of this population is black, and 12% is hispanic. Median household income is $34, 356 and is the lowest among all sectors within the H St NE Primary market area. This popualation often holds jobs in whitecollar fields such as the health care industry, and local governement jobs. Unemployment is double the US rate, at 20%. Households are primarily row houses and single family dwelligns and 60% of these are owner occupied with the mortgage paid off generations ago. Trendsetters: A young, diverse and mobile group, trendsetters are comprised of singles livivng alone or with roomates. A younger group, with a median age of 35.5, this group is diverse with a high percentage of asian and hispanic persons. Medan household income is $61,498 and most have attended college, with one quarter holding a graduate degree. Over two-thirds fo this group are renters and about twenty percent don’t own a vehicle. This politically liberal group is a great consumer base to have. They shop in stores, stay up to date with technology, and are itnerested in maintaining their health; often purchasing natural/organic foods, vitamins, and health memberships or yoga passes. Social Security Set: With the majority of these citizens living alone, the majority live on a low fixed income but have accumulated wealth in their earlier years that they subsist on. 40% of houeholders are older than 65 years, and do not drive- therefore relying completely on public transportation. Limited and finintefianncialresourses determine the spending habits of this group. They shop is discount stores, bank in person, and rely on television and newspapers to stay current on sports and the news. City Strivers: This diverse group is comprised of a young (median age of 32.5 years),diverse (80% black), and varied family types (68 percent mix of married couples, single parents, and other families). A comparitively lower median income of $43,548 is often supplemented by Supplemental Security income or public assistance income. A high unemployment rate, of 18.6% is also present. Two-thirds of this population rent apartments in older, multi-tenant buildings. About 40% of these households do not own a car and rely soley on public transportation. This group prefers lower cost retail providers and often consumer fast food. Frequent watchers of athletic events, such as football and basketball, they also play tennis and basketball. Metropolitians: This group prefers to live in older city neighborhods. Evenly divided between singles who live alone or wiht others, and married couple families- the median age is 37.7 years, and the majority of the group is white. A solid labor force participation rate, a high secondary education completion rate, and a median hosuehold income of $60.191 are furhter descriptors of this group. This group pursues an active urbane lifestlye, travel frequently, and overall, are active members of their community. They join civic clubs, volunteer for environmental causes, and often work for a political party or candidate.
  15. Urban Rows: This group makes up almost half of the primary market area demogpraic profile. This gorup is shrinking due to urban renewal programs. Median age is 33.6 years, with hoseholds consisting of marrie d couples, single parent families and gradparents as caregivers within multi-generational families. 70% of this population is black, and 12% is hispanic. Median household income is $34, 356 and is the lowest among all sectors within the H St NE Primary market area. This popualation often holds jobs in whitecollar fields such as the health care industry, and local governement jobs. Unemployment is double the US rate, at 20%. Households are primarily row houses and single family dwelligns and 60% of these are owner occupied with the mortgage paid off generations ago. Trendsetters: A young, diverse and mobile group, trendsetters are comprised of singles livivng alone or with roomates. A younger group, with a median age of 35.5, this group is diverse with a high percentage of asian and hispanic persons. Medan household income is $61,498 and most have attended college, with one quarter holding a graduate degree. Over two-thirds fo this group are renters and about twenty percent don’t own a vehicle. This politically liberal group is a great consumer base to have. They shop in stores, stay up to date with technology, and are itnerested in maintaining their health; often purchasing natural/organic foods, vitamins, and health memberships or yoga passes. Social Security Set: With the majority of these citizens living alone, the majority live on a low fixed income but have accumulated wealth in their earlier years that they subsist on. 40% of houeholders are older than 65 years, and do not drive- therefore relying completely on public transportation. Limited and finintefianncialresourses determine the spending habits of this group. They shop is discount stores, bank in person, and rely on television and newspapers to stay current on sports and the news. City Strivers: This diverse group is comprised of a young (median age of 32.5 years),diverse (80% black), and varied family types (68 percent mix of married couples, single parents, and other families). A comparitively lower median income of $43,548 is often supplemented by Supplemental Security income or public assistance income. A high unemployment rate, of 18.6% is also present. Two-thirds of this population rent apartments in older, multi-tenant buildings. About 40% of these households do not own a car and rely soley on public transportation. This group prefers lower cost retail providers and often consumer fast food. Frequent watchers of athletic events, such as football and basketball, they also play tennis and basketball. Metropolitians: This group prefers to live in older city neighborhods. Evenly divided between singles who live alone or wiht others, and married couple families- the median age is 37.7 years, and the majority of the group is white. A solid labor force participation rate, a high secondary education completion rate, and a median hosuehold income of $60.191 are furhter descriptors of this group. This group pursues an active urbane lifestlye, travel frequently, and overall, are active members of their community. They join civic clubs, volunteer for environmental causes, and often work for a political party or candidate.
  16. Centers that focus on everyday needs, such as groceries and other necessities, remain successful during economic downturns or slow growth periods. Future retail devlopment should focus on a mixed-use format involving office or residential within a waklable urban area or close to public transit. Overall, consumrs want to reduce their drivign time and rely on their immediate neighborhood for daily necessities. Existing retail, office, res statsThe reduction in supply of class a office space, along with the pipeline resupply of space means that there is a aother existing supply, so it should be differentiate itself form the market by offering a lower price. Class B offices priced competitively should do well. Vacant vs owner occ, vs renterThis presents the oppurtunity for a residential buildign directly on H Street that could appeal to incoming residents looking for a more direct connection to the action of H Street.
  17. Within the past five years, a number of modern and promising restaurants have opened in the area, Sticky Rice, H Street Country Club, TruOrleans, and have introduced a new Thursday night through Sunday crowd. However, residents and businesses within the area still lack quality dailiyamenties such as a health club, laundromat, a shipping facility, and a full-service bank. Limited type of retailer which means that the type of retail occupant that can occupy the H Street Corridor is limited. There is a significant need for retail space of a higher class that can meet the needs of a larger retailer.
  18. 30% of americans are now living alone
  19. The architecture of HUB625 will reference the longstanding brick traditions of washington dc with references to the light, airy and desireable modern style of european design. Evendent on the facade will be overlapping volutmes that highlight the multi-use premise of the development. The gym, located on the second level will have a floor-to-ceiling window that will protrude slightly from the rest of the facade, in order to maximize views and highlight this unique use. The residential units along the back of the lot will have street-level access as well as access through the parking garage.
  20. The architecture of HUB625 will reference the longstanding brick traditions of washington dc with references to the light, airy and desireable modern style of european design. Evendent on the facade will be overlapping volutmes that highlight the multi-use premise of the development. The gym, located on the second level will have a floor-to-ceiling window that will protrude slightly from the rest of the facade, in order to maximize views and highlight this unique use. The residential units along the back of the lot will have street-level access as well as access through the parking garage.
  21. The architecture of HUB625 will reference the longstanding brick traditions of washington dc with references to the light, airy and desireable modern style of european design. Evendent on the facade will be overlapping volutmes that highlight the multi-use premise of the development. The gym, located on the second level will have a floor-to-ceiling window that will protrude slightly from the rest of the facade, in order to maximize views and highlight this unique use. The residential units along the back of the lot will have street-level access as well as access through the parking garage.
  22. 360 H StreetEven with pipeline projects delivering 215 units in Jan 2013, with a conservative absorption estimate of ten units per month, all of these properties will be stabilized or occupied by September 2014, Pipeline ResidentialEvolution of H StreetTrolley schedule
  23. I am here to say that it can be done. With all of the risks present in developing in the h street corridor, there lies even biggger potential. And besides that, it already has been done. A quick comparision of the redevelopment of 14th and u street nw, and the beginnings of development at h st ne shows a plethora of sikilarities. And where there are gaps, there are substitutions.
  24. I am here to say that it can be done. With all of the risks present in developing in the h street corridor, there lies even biggger potential. And besides that, it already has been done. A quick comparision of the redevelopment of 14th and u street nw, and the beginnings of development at h st ne shows a plethora of sikilarities. And where there are gaps, there are substitutions.
  25. Their interest in the corridor marks another escalation in H Street’s progression from a run-down corridor still scarred from the 1968 riots, to an edgy strip of local bars, to a sought-after residential market, even by developers looking region-wide.