the neighborhoods of tustin town center: a new ... - City of Tustin

D. West Village neighborhood, Site 12 (Alternative B)
Project Description
As shown on Table C-1, Site 12 is comprised of three parcels totaling 4.06 acres. It should
be noted that the contiguous CalTrans parcel to the north (1.96 acres), which could be used
for a community center and park, has been excluded from this analysis. The scenario
assumes construction of a three-story residential building along Tustin Village Way
containing 40 rental apartment units with 18,000 SF of retail space occupying the ground
floor. This scenario assumes the inclusion of 15% very low and moderate income housing
units.
The scenario also includes a one story 22,000 SF freestanding retail building, which may
also potentially allow for a grocery story, drug store, or medium-sized tenant. Retail parking
will be accommodated in a mix of surface and at-grade encapsulated parking with a total of
at least 160 parking spaces. Residents of the apartment complex will be parked within the
at-grade encapsulated structure as well as in the below-grade parking level. Parking for the
residential component totals 90 parking spaces with an overall parking ratio of 2.25 spaces
per unit (including guest parking).
Total Development Costs
KMA anticipates that this development scenario will be of Type V construction and have an
estimated total development cost of $16.9 million or $202 per SF GBA. The detailed
development costs are presented in Table C-2, as described below:
Total direct costs are estimated at $12.1 million, or $145 per SF GBA.
Total indirect costs are estimated at $3.3 million, or 27% of direct costs.
Total financing costs are estimated at $1.5 million, or 12% of direct costs.
Net Operating Income – Retail
As shown on Table C-3, KMA has estimated the retail components of the proposed
development scenario to generate NOI totaling $710,000 annually. The following
assumptions were used in determining this figure:
GSI of $786,000, or an average lease rate of $1.64 per SF.
Overall vacancy factor of 5%.
Unreimbursed retail operating expenses at 5% of retail GSI.
A-34 THE NEIGHBORHOODS OF TUSTIN TOWN CENTER
MARKET ANALYSIS AND NEIGHBORHOOD CONCEPT PLANS
STRATEGIC GUIDE 09.21.2010