Housing and Health - ULI Fall Meeting.pptx
Housing and Health: From Research to Real Deals Ed McMahon Urban Land Institute October 22, 2014
Building Healthy Places • An overarching Theme for all of ULI
Activities • Convening's • Councils and Networks • Research and Publications • Leadership & Partnerships • Website: www.uli.org/health • Twitter: #ulihealth • Email: [email protected]
Goals of the BHP Initiative • Raising Awareness – of the connections between health and the built environment
• Defining the Approach - and sharing information about the design elements, programs, strategies, and materials that improve people’s health
• Exploring the Value Proposition – by understanding the market and
nonmarket factors in building healthy places and operating in health promoting ways
• Advancing the State of Policy and Practice - Using the ULI
membership in partnership with others to leverage and advance the state of policy and practice
ULI Conferences
New ULI Publications
Colorado Advisory Service Panels • Arvada, Colorado Suburban community • Lamar, Colorado Small town • Westwood, Colorado Urban neighborhood
Factors Affecting Health • Genetics • Medical care • Personal Behavior • Living and working conditions in homes and communities
Real Estate Professionals Can Help “We now know that developers can be more effective in achieving public health than the doctors in white coats.” Dr. Richard Jackson – UCLA School of Public Health
The Built Environment Effects Health • • • • • • • • • •
Physical activity Obesity and chronic disease Pedestrian injuries Asthma and respiratory diseases Child development Crime and violence Elder health and mobility Water quality and quantity Mental health Health disparities
“We are spending many billions of dollars every year to build severe and long lasting barriers to active living” Dr. Eric France, Kaiser Permanente November 13, 2013
Barriers to Walking
Walking is often difficult, dangerous, unpleasant or impossible.
Physical Activity Physical activity, once part of our normal lives has been designed out of daily routines.
Walkability = Low Cost Health Care • “Walking is a miracle drug” • US Surgeon General has asked communities to build trails. • President’s Council on Physical Fitness – “build more trails.”
Walkability Boosts Value • Walk Score is a walkability index assigned to a particular address. • Carol Coletta, CEO’s for Cities says” each additional Walk Score point increases housing prices $600 to $3000”. • CDC says “each 10 point increase in Walk Score results in 16 minutes per day more walking”.
“Walkable real estate can command value premiums of 25% to 100%.” Reston, Virginia
Source: PUMA’s Global Trends Report, 2014
Sterling, Virginia
Building for Wellness: The Business Case 13 case studies on: • Renovation & Redevelopment • New Construction • Master Planned Communities
Key Findings • Market response exceeded developer expectations • Development costs attributable to health were a minimal percentage of overall budget • Upfront costs were worth the expense • Programming was used to increase health benefits and encourage use of amenities (Partnerships often used to provide programing) • Social interaction purposely planned for and encouraged • 7 categories of intent identified * Clean indoor air * Physical/pedestrian activity * Support for bicycling * Structured fitness activity through built amenities * Structured fitness activity through programing * Social interaction * Other (Natural light, aging in place, universal design principles, etc.)
Renovation and Redevelopment ● ●
ECO Modern Flats, Fayetteville AK Multifamily Housing
● ●
Innovation Park, Charlotte NC Business Park
● ●
1221 Broadway, San Antonio TX Multifamily Housing
● ●
Jackson Walk, Jackson TN Fitness/Wellness/Primary Care Center
● ●
The Century Building, Pittsburgh PA Mixed Use
ECO Modern Flats – Fayetteville, AR
After
Before
• Rehab of a 1960’s apartment complex (93 units) • Arkansas’s first LEED certified(Platinum) multi-family complex • Strict non-smoking policy • Clean indoor air (non-VOC paints, ductless, energy efficient, mini-split HVAC • Community Garden, roof top decks, BBQ areas, other social interaction areas
Eco Modern Flats - Results • Fully leased since completion, with a waiting list • Current rents 113% to 140% above pro-forma estimates • Rent rates of $1.42 per sq. ft. exceed market average of .99 per sq. ft. • Turnover rates 15% below market average
“Creating a built environment that promotes sustainability and good health was especially important to me because I grew up with severe asthma” Jeremy Hudson, Specialized Real Estate Group
Master Planned Communities • Grow Community, Bainbridge Island, WA
• Selandra Rise, Casey, Australia
• Rancho Sahuarita, Tucson, AZ
• Mueller, Austin, TX
Grow Community – Bainbridge Island Wellness Features
24 single family homes
108 apartments in 20 multi-family units
• Accessible site – short walk to shops, farmers market, etc. • Parking on perimeter of site • Walking & bike paths • Bicycle Storage sheds/No garages • Car sharing program • Community Gardens • Chemical Free Indoors • Energy Efficiency/Solar Energy
Project Outperforms Market Results • First 22 for sale units sold out in 6 months, despite sluggish market • Long waiting list for rental units • Achieves a rental premium ($1.75$1.95 per sq. ft. vs. $1.10 -$1.25. • Phase II Accelerated Construction • No need to list on MLS • 50% of buyers from out of state, despite no out of market advertising
New Construction • Via 6, Seattle , WA (Multi-family housing) • Interlace, Singapore (Multi-family housing) • Park 20120, Netherlands (Office building) • Via Verde, New York (Multi-family housing)
Via 6 – Seattle, WA • 654 apartments (studios, one and two bedroom units) • Ground floor public uses (restaurant, grocery store, coffee shop, barber shop and theatre area) • Bicycle Amenities (bike shop, a bike club with 150 bike lockers, showers, air pumps and repair station) • Resident Amenities (fitness center, recreation areas, in-house events coordinator, separate bike storage area)
Via 6 - Results • 90% leased in less than a year, despite small unit size and increased rental supply in Seattle market. • Rental premiums - $1,175 to $4,285 • Rents currently average $3 per sq. ft. • 70% of residents do not own a car (Parking spaces being converted to bike storage)
“The design was started with the objective of building a community rather than an apartment building” Matt Griffin, Pine Street Group, LLC
Build a Brand Communities, companies, projects and buildings can use health as a market differentiator.
Building Healthy Places • An overarching Theme for all of ULI
Activities • Convening's • Councils and Networks • Research and Publications • Leadership & Partnerships • Website: www.uli.org/health • Twitter: #ulihealth • Email: [email protected]
Goals of the BHP Initiative • Raising Awareness – of the connections between health and the built environment
• Defining the Approach - and sharing information about the design elements, programs, strategies, and materials that improve people’s health
• Exploring the Value Proposition – by understanding the market and
nonmarket factors in building healthy places and operating in health promoting ways
• Advancing the State of Policy and Practice - Using the ULI
membership in partnership with others to leverage and advance the state of policy and practice
ULI Conferences
New ULI Publications
Colorado Advisory Service Panels • Arvada, Colorado Suburban community • Lamar, Colorado Small town • Westwood, Colorado Urban neighborhood
Factors Affecting Health • Genetics • Medical care • Personal Behavior • Living and working conditions in homes and communities
Real Estate Professionals Can Help “We now know that developers can be more effective in achieving public health than the doctors in white coats.” Dr. Richard Jackson – UCLA School of Public Health
The Built Environment Effects Health • • • • • • • • • •
Physical activity Obesity and chronic disease Pedestrian injuries Asthma and respiratory diseases Child development Crime and violence Elder health and mobility Water quality and quantity Mental health Health disparities
“We are spending many billions of dollars every year to build severe and long lasting barriers to active living” Dr. Eric France, Kaiser Permanente November 13, 2013
Barriers to Walking
Walking is often difficult, dangerous, unpleasant or impossible.
Physical Activity Physical activity, once part of our normal lives has been designed out of daily routines.
Walkability = Low Cost Health Care • “Walking is a miracle drug” • US Surgeon General has asked communities to build trails. • President’s Council on Physical Fitness – “build more trails.”
Walkability Boosts Value • Walk Score is a walkability index assigned to a particular address. • Carol Coletta, CEO’s for Cities says” each additional Walk Score point increases housing prices $600 to $3000”. • CDC says “each 10 point increase in Walk Score results in 16 minutes per day more walking”.
“Walkable real estate can command value premiums of 25% to 100%.” Reston, Virginia
Source: PUMA’s Global Trends Report, 2014
Sterling, Virginia
Building for Wellness: The Business Case 13 case studies on: • Renovation & Redevelopment • New Construction • Master Planned Communities
Key Findings • Market response exceeded developer expectations • Development costs attributable to health were a minimal percentage of overall budget • Upfront costs were worth the expense • Programming was used to increase health benefits and encourage use of amenities (Partnerships often used to provide programing) • Social interaction purposely planned for and encouraged • 7 categories of intent identified * Clean indoor air * Physical/pedestrian activity * Support for bicycling * Structured fitness activity through built amenities * Structured fitness activity through programing * Social interaction * Other (Natural light, aging in place, universal design principles, etc.)
Renovation and Redevelopment ● ●
ECO Modern Flats, Fayetteville AK Multifamily Housing
● ●
Innovation Park, Charlotte NC Business Park
● ●
1221 Broadway, San Antonio TX Multifamily Housing
● ●
Jackson Walk, Jackson TN Fitness/Wellness/Primary Care Center
● ●
The Century Building, Pittsburgh PA Mixed Use
ECO Modern Flats – Fayetteville, AR
After
Before
• Rehab of a 1960’s apartment complex (93 units) • Arkansas’s first LEED certified(Platinum) multi-family complex • Strict non-smoking policy • Clean indoor air (non-VOC paints, ductless, energy efficient, mini-split HVAC • Community Garden, roof top decks, BBQ areas, other social interaction areas
Eco Modern Flats - Results • Fully leased since completion, with a waiting list • Current rents 113% to 140% above pro-forma estimates • Rent rates of $1.42 per sq. ft. exceed market average of .99 per sq. ft. • Turnover rates 15% below market average
“Creating a built environment that promotes sustainability and good health was especially important to me because I grew up with severe asthma” Jeremy Hudson, Specialized Real Estate Group
Master Planned Communities • Grow Community, Bainbridge Island, WA
• Selandra Rise, Casey, Australia
• Rancho Sahuarita, Tucson, AZ
• Mueller, Austin, TX
Grow Community – Bainbridge Island Wellness Features
24 single family homes
108 apartments in 20 multi-family units
• Accessible site – short walk to shops, farmers market, etc. • Parking on perimeter of site • Walking & bike paths • Bicycle Storage sheds/No garages • Car sharing program • Community Gardens • Chemical Free Indoors • Energy Efficiency/Solar Energy
Project Outperforms Market Results • First 22 for sale units sold out in 6 months, despite sluggish market • Long waiting list for rental units • Achieves a rental premium ($1.75$1.95 per sq. ft. vs. $1.10 -$1.25. • Phase II Accelerated Construction • No need to list on MLS • 50% of buyers from out of state, despite no out of market advertising
New Construction • Via 6, Seattle , WA (Multi-family housing) • Interlace, Singapore (Multi-family housing) • Park 20120, Netherlands (Office building) • Via Verde, New York (Multi-family housing)
Via 6 – Seattle, WA • 654 apartments (studios, one and two bedroom units) • Ground floor public uses (restaurant, grocery store, coffee shop, barber shop and theatre area) • Bicycle Amenities (bike shop, a bike club with 150 bike lockers, showers, air pumps and repair station) • Resident Amenities (fitness center, recreation areas, in-house events coordinator, separate bike storage area)
Via 6 - Results • 90% leased in less than a year, despite small unit size and increased rental supply in Seattle market. • Rental premiums - $1,175 to $4,285 • Rents currently average $3 per sq. ft. • 70% of residents do not own a car (Parking spaces being converted to bike storage)
“The design was started with the objective of building a community rather than an apartment building” Matt Griffin, Pine Street Group, LLC
Build a Brand Communities, companies, projects and buildings can use health as a market differentiator.
