Bea-Sustainable: December 2012

REAE 5316 Fall 2012

In this course we have been studying various sites to see example of Adaptive Reuse in real estate. Adaptive reuse is when older real estate is adapted and fitted for an new use instead of the traditional method of tear down the old building and start with a new. With the problem of suburban sprawl, many cities where seeing areas become abandoned and neglected when developers went to look for new spaces to develop and thus drawing out the citizens from the old neighborhoods. With todays movement toward a more sustainable society we are seeing developments coming back to the old neighborhoods and cities and a resurgence of vitality in areas that were once abandoned. Government funding is also being offered to entice developers to get creative and find ways to rebuild and restores existing sites.

This is a case study anaylsis/ proposal of a current development project: 1001-1059 Foch Street and 821-945 Foch Street.

Foch Street Development Project/Analysis

Proposition

Create a multi-use facility that promotes local business development while offering residential and retail spaces that compliment each other and encourage vitality of the area.
Assume project length of five years
Create leveraged internal rate of return of 10% or higher

Construction Details

Exterior Construction: insulated concrete/ stucco tilt-up with steel supports

Interior Flooring: stained concrete on 1st level, wood on 2nd and 3^rd level

Interior Lighting: drop fixtures with T8 fluorescent

Construction Costs

Building Square Footage: 36,660 square feet

Anticipated Cost per Square Foot: $100

Total Anticipated Construction Costs: $3,666,000

Building Features

Efficient Energy-Star appliances

Easily adjustable interior layouts

Glass block design elements, concrete flooring

Standard industrial dock doors in property rear/glass in front

Site Analysis

1001-1059 Foch Street

821-945 Foch Street

Proposed development is located in a neighborhood in Ft. Worth. It is in close proximity to downtown Fort Worth and Interstate I-35W and I-30. This area has qualifies for local and federal funding for infrastructure improvements, environmental cleanup, site preparation, and a low-interest business loan program

This location is great for development due to its proximity to the Mongomery Plaza and new apartment developments.

Regulatory Analysis

MU-1 zoning

NEZ designation

This area is currently designated as a mixed-use growth center and Urban Village. Zoning is appropriated for mixed use, multi-family, retail and office.

Area Demographics

Houses and condos: 16,884
Renter-occupied apartments: 8,101

% of renters here:50%
State:36%
Males: 15,268 (49.0%) Females: 15,886 (51.0%)

100% urban population.

Estimated median house/condo value in 2010:

76107: $197,845

Texas:$127,400

Median resident age:

This zip code:	37.1 years
Texas median age:	33.5 years

Average household size:

This zip code: 2.1 people

Texas: 2.8 people

Estimated median household income in 2010:

This zip code:	$57,185
Texas:	$49,585

INVESTMENT CHALLENGES

• Current zoning is inconsistent with prevailing market conditions that favor pedestrian-oriented urban environments and still needs to be zoned through the petition-based rezoning process in order to allow for the redevelopment as depicted in the village plans.

• Previous public investments have not resulted in the anticipated level of private investment. This mixed use retail space will attempt to engage the private sector into investing in the area.

Proposed: URBAN DESIGN ELEMENTS AND PLAN

This plan consists of two three story mixed-use buildings each consisting of specialty retail space, small business and entertainment on the ground floor and a mix of condo and loft/work space units on the second and third floors. A destination restaurant and small retail stores, salons, local vendors and a bank will occupy the retail spaces on the ground floor. Ground floor suites will have the option to be split up to smaller lease areas, with some spaces dedicated to affordable rents to encourage small business. A central plaza and attractive streetscape amenities with covered patio seating provide a pedestrian-friendly environment. The two facing buildings will create an attractive plaza area that will encourage pedestrian traffic, additionally free wi-fi and bike racks will be included. Parking will be on–street and a lot behind the building. Frame work will be in place for infill development in the future.

The ground floor buildings will consist of the following rental units each:

Two large lease spaces, approx 1875 square foot each

Four smaller spaces with further options to be subdivided, approximately 1,000 square foot ( 500 if divided)

First Floor - 2 identical buildings will mirror each other

The second and third floors of each building will consist of the following two story condo units:

Four Live/Work 1 bedroom, 1 ½ bath 2 story loft spaces (2 affordable units) approx 1020 square foot each

Two 2 bedroom, 1 bath condo , approximately 1,000 square foot condo (2nd Floor - 1 Level)

Two affordable unit studios approximately 550 square foot (2nd Floor - 1 Level)

Two 1 bedroom, 1 bath condos , approximately 850 square foot condo (3rd Floor - 1 Level)

Two full studios, approximately 850 square foot (2nd Floor - 1 Level)

The second floor of the mixed use building is accessed by three sets of stairs or the elevator located at the back of the building. Second floor Live/Work lofts have the option to add stair entrances off balcony from the center plaza for business store-front entrances. Main entrances to the residential units are reached from the breezeway running along the back of the second story of each building and provide private entry to each unit.