Adaptive Reuse
Transformation & Adaptive-Reuse
Inspired Redevelopment & Construction
www.venueprojects.com
Transformation & Adaptive-Reuse VENUE PROJECTS : KITCHELL-PEREZ Co Founded January 2008 Jon Kitchell & Lorenzo Perez Phoenix, Arizona -
Designers
-
Builders
-
Developers
-
Investors
Transformation & Adaptive-Reuse Project: •
Venue Projects & Community Development Partners (Joint Venture)
•
City of Mesa, AZ / Benedictine University / Raza Development Fund (CDFI)
•
1890’s Hotel & 1950’s Apartments (National Historic Register)
•
Transitional housing turned into University Student Housing
•
11, 664 SF Gross Building Area
•
9,775 SF Site Area
•
Downtown Core Zoning- T.O.D. Redevelopment (Light Rail)
•
60 Bed Capacity (Single & Double Occupancy)
•
Negotiated 37 City of Mesa Parking Spaces (Public Private Collaboration)
Transformation & Adaptive-Reuse Alhambra
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse THE VISION
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse Budget:
HARD COSTS: LAND CONSTRUCTION
$ 972,500 $1,592,930
SOFT COSTS: A&E DEVELOPER FEE FINANCING FEES, PERMITS, G&A
$ 73,291 $ 350,000 $ 249,294 (w/12 Mo Interest Reserve) $ 109,520
TOTAL PROJECT COST:
$3,347,535
Transformation & Adaptive-Reuse Capital Stack:
EQUITY: Venue CDP TOTAL: DEBT: Land- Seller Carry A&D (RDF-CDFI)
$ 228,768 $ 228,767 $ 457,535
14% LTC
$ 350,000 $2,540,000
10% LTC 76% LTC
TOTAL FINANCING:
$3,347,535
Transformation & Adaptive-Reuse Economic Returns: Single Tenant Triple Net Lease 12 yr Term w/ (2) 10 Year Options
POST TAKE OUT:
ROI:
Valuation @ 7 cap Perm Loan (75% LTV) Remaining Equity Invested DSCR Yr. 1
$4,000,000 $3,000,000 $ 354,997 1.43
Cash on Cash 5 Yr – IRR Recover 100% Cash Invested Historic Tax Credits
39% Yr 1 54% Year 4 (Pending)
Transformation & Adaptive-Reuse Holistic ROI:
A solid real estate investment that stimulates economic activity for the local economy Win-win for all stakeholders (City, University, Developers, Businesses, Residents) We resolved and improved a social problem for the City, local area businesses and residents We preserved a national historic register building, inspiring civic pride and Mesa heritage We reused an old building keeping it out of a landfill, improving it with sustainable features.
Transformation & Adaptive-Reuse Lessons Learned… Patience Creativity Outreach Compromise (Trade Offs) Collaboration (Public & Private) Flexibility Commitment
Inspired Redevelopment & Construction
www.venueprojects.com
Transformation & Adaptive-Reuse VENUE PROJECTS : KITCHELL-PEREZ Co Founded January 2008 Jon Kitchell & Lorenzo Perez Phoenix, Arizona -
Designers
-
Builders
-
Developers
-
Investors
Transformation & Adaptive-Reuse Project: •
Venue Projects & Community Development Partners (Joint Venture)
•
City of Mesa, AZ / Benedictine University / Raza Development Fund (CDFI)
•
1890’s Hotel & 1950’s Apartments (National Historic Register)
•
Transitional housing turned into University Student Housing
•
11, 664 SF Gross Building Area
•
9,775 SF Site Area
•
Downtown Core Zoning- T.O.D. Redevelopment (Light Rail)
•
60 Bed Capacity (Single & Double Occupancy)
•
Negotiated 37 City of Mesa Parking Spaces (Public Private Collaboration)
Transformation & Adaptive-Reuse Alhambra
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse THE VISION
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse
Transformation & Adaptive-Reuse Budget:
HARD COSTS: LAND CONSTRUCTION
$ 972,500 $1,592,930
SOFT COSTS: A&E DEVELOPER FEE FINANCING FEES, PERMITS, G&A
$ 73,291 $ 350,000 $ 249,294 (w/12 Mo Interest Reserve) $ 109,520
TOTAL PROJECT COST:
$3,347,535
Transformation & Adaptive-Reuse Capital Stack:
EQUITY: Venue CDP TOTAL: DEBT: Land- Seller Carry A&D (RDF-CDFI)
$ 228,768 $ 228,767 $ 457,535
14% LTC
$ 350,000 $2,540,000
10% LTC 76% LTC
TOTAL FINANCING:
$3,347,535
Transformation & Adaptive-Reuse Economic Returns: Single Tenant Triple Net Lease 12 yr Term w/ (2) 10 Year Options
POST TAKE OUT:
ROI:
Valuation @ 7 cap Perm Loan (75% LTV) Remaining Equity Invested DSCR Yr. 1
$4,000,000 $3,000,000 $ 354,997 1.43
Cash on Cash 5 Yr – IRR Recover 100% Cash Invested Historic Tax Credits
39% Yr 1 54% Year 4 (Pending)
Transformation & Adaptive-Reuse Holistic ROI:
A solid real estate investment that stimulates economic activity for the local economy Win-win for all stakeholders (City, University, Developers, Businesses, Residents) We resolved and improved a social problem for the City, local area businesses and residents We preserved a national historic register building, inspiring civic pride and Mesa heritage We reused an old building keeping it out of a landfill, improving it with sustainable features.
Transformation & Adaptive-Reuse Lessons Learned… Patience Creativity Outreach Compromise (Trade Offs) Collaboration (Public & Private) Flexibility Commitment
