THE BILLBOARD @ THE DESIGN DISTRICT - Master in Real Estate ...
THE BILLBOARD @ THE DESIGN DISTRICT - Master in Real Estate ...
THE BILLBOARD @ THE DESIGN DISTRICT - Master in Real Estate ...
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<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
3800 NE 1 st AVE<br />
MIAMI, FL<br />
NIK MASSEY<br />
DEVIN FEHER<br />
XUQIAO WANG<br />
PARVIN FAGHIHINEJAD
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
• SITE LOCATION & ZONING<br />
• DEVELOPMENT PROPOSAL<br />
• COMPETITIVES & COMPARABLES<br />
• PROGRAM & PROFORMA<br />
• SUMMARY
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
SITE LOCATION<br />
& ZONING REGULATIONS
LOCATION PLAN<br />
3800 NE 1 st AVE, MIAMI, FL<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
SITE AREA<br />
TOTAL LAND AREA<br />
43,200SQFT<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
SITE EXISTING CONDITION<br />
NE 39 TH ST<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
ZONING & LAND USE<br />
ZONING CODE:<br />
• T-6<br />
SITE<br />
HEIGHT:<br />
• MIN 2 STORIES<br />
• MAX. 12 STORIES<br />
T1 T3 T4 T5 T6-8 T6-12<br />
T6-24 T6-36 T6-48 T6-60 T6-80 D1 D2 D3 CS CI CI-HD<br />
LOT COVERAGE RATIO<br />
• MAX. 80%<br />
ALLOWABLE F.L.R.:<br />
• 8<br />
ALLOWABLE SQFT:<br />
• 345,600 SQFT<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP<br />
T4
TARGET MARKET OF <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
RETAIL:<br />
<strong>DESIGN</strong> <strong>DISTRICT</strong> DRAW HIGH INCOME CUSTOMERS<br />
ATTRACTED TO LUXURY BRANDS, FINE FOOD, ART &<br />
ENTERTAINMENT<br />
CURRENT TENANT TYPES:<br />
• LUXURY RETAILERS ( fashion, furniture, kitchen& baths,<br />
light<strong>in</strong>g, walls & floors)<br />
• ART GALLERIES<br />
• EATERIES & BARS<br />
• OFFICES<br />
• CREATIVE SERVICES<br />
ONE OF A KIND RETAILERS, SIGNATURE RESTAURANTERS &<br />
ART GALLERIES…A DESTINATION LOCATION<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
DEVELOPMENT<br />
PROPOSAL
<strong>THE</strong> <strong>BILLBOARD</strong><br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
RENDERING<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
RENDERING<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
RENDERING<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
PROPOSED GROUND FLOOR PLAN<br />
GROUND/ RETAIL<br />
FLOOR PLAN<br />
EVENT SPACE<br />
FLOOR PLAN<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
AERIAL VIEW 2<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
AERIAL VIEW<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
<strong>DESIGN</strong> PRECEDENTS & INSPIRATIONS<br />
LEED GARAGE- SANTA MONICA<br />
1111 LINCOLN – SOUTH BEACH<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
LANDSCAPE <strong>DESIGN</strong> & <strong>BILLBOARD</strong>S<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
SUSTAINABILITY MEASURES<br />
- USE OF RECYCLED CONSTRUCTION MATERIALS<br />
BENEFITS INCLUDE:<br />
• REDUCE COST OF CONSTRUCTION<br />
• MINIMIZES CONSTRUCTION WASTE<br />
• POSSIBLE SAVINGS THROUGH TAX CREDITS<br />
- USE OF PHOTOCATALYSTS, SELF CLEANING CONCRETE<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
PROGRAM<br />
& PROFORMA
DEVELOPMENT PROGRAM<br />
RETAIL/ RESTAURANT<br />
Gross Area: 23,310 SQFT<br />
Rentable Area: 20,979 SQFT<br />
PROJECT MIX<br />
RENTABLE AREA<br />
PARKING- ANCHOR<br />
Gross Area: 222,000 SQFT<br />
Rentable Area: 199,800 SQFT<br />
EVENT SPACE<br />
Gross Area: 44,400 SQFT<br />
Rentable Area: 39,960 SQFT<br />
15%<br />
8%<br />
77%<br />
F&B<br />
PARKING<br />
EVENT SPACE<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
OPERATIONS PROGRAM<br />
PARKING<br />
• $1 PER HOUR<br />
• $20 MAX (FULL DAY)<br />
• $15 FOR EVENTS<br />
• $100 LEASE PER MONTH<br />
EVENT SPACE<br />
• $150K PER EVENT<br />
RETAIL/ RESTAURANT<br />
• $ 35.30 PER SQFT<br />
<strong>BILLBOARD</strong><br />
• MIN $50K PER MONTH<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
COMPARABLES<br />
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong>
COMPARABLE PROJECTS<br />
BALLET VALLET, SOUTH BEACH<br />
WEEKEND/ EVENT FLAT RATE<br />
• $15 PER VEHICLE<br />
MON-SUN<br />
• $1 PER HR<br />
• $20.00 MAX<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP<br />
1111 LICOLN, SOUTH BEACH<br />
• ICONIC <strong>DESIGN</strong><br />
• ATTACHED TO 110,000SQFT OF<br />
COMMERCIAL SPACE<br />
• 25,000 SQFT OF EVENT SPACE<br />
• 40,000 SQFT RETAIL
SUMMARY OF PROFORMA<br />
Stabilized NOI $1,172,974.99<br />
Land Cost $4,310,269.00<br />
Development Costs<br />
Park<strong>in</strong>g Component $10,333,440.00<br />
Retail Component $1,864,800.00<br />
Event Component $302,400.00<br />
Total Hard Costs $12,500,640.00<br />
IRR = 15%<br />
Soft Costs<br />
Park<strong>in</strong>g Component $3,203,366.40<br />
Retail Component $578,088.00<br />
Event Component $93,744.00<br />
Total Soft Costs $3,875,198.40<br />
Total Development Costs $20,686,107.40<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
SCENARIOS<br />
DACRA SCENARIO 50%<br />
SENSITIVITY<br />
MATRIX<br />
BAD<br />
SCENARIO<br />
NEUTRAL<br />
SCENARIO<br />
GOOD<br />
SCENARIO<br />
IRR 8% 15% 25%<br />
DACRA SCENARIO 100%<br />
SENSITIVITY<br />
MATRIX<br />
BAD<br />
SCENARIO<br />
NEUTRAL<br />
SCENARIO<br />
GOOD<br />
SCENARIO<br />
IRR 10% 12% 13%<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
MARKET TRENDS<br />
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong>
MICRO TRENDS- DOWNTOWN<br />
& <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
• INCREASE DEMAND FOR PARKING<br />
• AVG RENTAL RATE : $38.28/ SQFT<br />
• VACANCY RATE 9.8%<br />
TYPICAL LEASE STRUCTURE HIGH-END RETAIL: NNN<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
MICRO TRENDS- DOWNTOWN<br />
& <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
“STEADY ABSORPTION OF CONDOS IN DOWNTOWN MIAMI, GENERATING<br />
<strong>THE</strong> NEED FOR RETAIL WITHIN <strong>THE</strong> NEIGHBORHOOD AREA AND MORE<br />
DEMAND”<br />
Macrcus & Millichap National Retail Report 2011<br />
• DACRA’S $250M DEVELOPMENT PLANS<br />
• LVMH BRANDS & HERMES RELOCATING TO <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
• MIAMI 21<br />
“<strong>THE</strong> FUTURE OF <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong> IS VERY PROMISING FOR <strong>THE</strong><br />
RETAIL REAL ESTATE: RETAILER HAVE A HERD MENTALITY; LUXURY BRANDS<br />
MOVE & MIGRATE TOGE<strong>THE</strong>R.”<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
<strong>DESIGN</strong> DESTRICT RETAIL MIX<br />
RETAIL<br />
DINING<br />
FUTURE RETAIL<br />
AVAILABLE PARKING<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
S.W.O.T. ANALYSIS<br />
STRENGTHS<br />
• A TRAFFIC GENERATING - VISIBILITY<br />
• EASY ACCESS<br />
• ENTERTAINMENT CLOSE PROXIMITY<br />
• <strong>DESIGN</strong> <strong>DISTRICT</strong> FUTURE PLANS<br />
• EXISTING TARGET MARKET<br />
WEAKNESSES<br />
• LOCATION W/IN <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
• PERCEIVED VALUE OF SITE<br />
OPPORTUNITIES<br />
• A TRAFFIC GENERATING LOCATION<br />
• COMPETITORS ARE FRIENDS<br />
• ENGAGE PUBLIC ART WORK<br />
• DEMAND FOR PARKING SPACE<br />
• LACK OF EVENT SPACE<br />
THREATS<br />
• NEIGHBORS ARE COMPETITORS<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
<strong>DESIGN</strong> <strong>DISTRICT</strong> BENEFITS<br />
- DEMAND FOR PARKING SPACE<br />
DACRA HAS POINTED OUT THIS NEED IN <strong>THE</strong> FUTURE<br />
- DEMAND FOR EVENT SPACE<br />
ART BASILLE, ART GALLERY LAUNCHES, HIGH-END USERS<br />
- EASIER ACCESSIBILITY TO <strong>THE</strong> NEIGHBORHOOD<br />
CURRENTLY A SHORTFALL OF PARKING DURING MAJOR<br />
EVENTS<br />
- ICONIC BUILDING ADDING TO <strong>THE</strong> CURRENT <strong>DESIGN</strong><br />
<strong>DISTRICT</strong> ARTSY CHARACTER<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
SUMMARY<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong>, AN ICONIC PARKING<br />
GARAGE, WILL NOT JUST COMPLEMENT <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
CHARACTER BUT WILL MEET A NEED THAT IS REQUIRED BY<br />
<strong>THE</strong> NEIGHBORHOOD.<br />
PROJECT MIX<br />
• RETAIL: 8%<br />
• PARKING (701 SPACES): 77%<br />
• EVENT SPACE: 15%<br />
TOTAL SQFT: 289,710 SQFT<br />
IRR: 15%<br />
<strong>THE</strong> <strong>BILLBOARD</strong> @ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
<strong>DESIGN</strong> GROUP
<strong>THE</strong> <strong>BILLBOARD</strong><br />
@ <strong>THE</strong> <strong>DESIGN</strong> <strong>DISTRICT</strong><br />
Q & A<br />
NIK MASSEY<br />
DEVIN FEHER<br />
XUQIAO WANG<br />
PARVIN FAGHIHINEJAD
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