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The Sunset District NAIOP Real Estate Development Workshop
April 2012
Bryant Cheong Matthew Craigie
Khoa Le Jeff Sakamoto
Michael Weidmann Kent Wu
The Sunset District
• Site Assessment • Development Vision • Site Design • Final Summary • Acknowledgments • Appendix
Presentation Outline
The Surrounding Area Jobs
+/- 25000
Housing 6700 households
Neighborhood
Rock Creek / Tanasbourne
Schools Six High Schools & Two PCC campuses within 5 mile radius
Tanasbourne
Regional Center Streets of Tanasbourne
AmberGlen R.C.
Silicon Forest Oregon’s Employment Hub
-Local Employers-
15,000 =
= 7000
1000 =
= 500
Existing Conditions • Owned by Standard Insurance
Company • Size: Approximately 16 acres • Current Use: Greenfield • Significant sloped topography
•Current Zoning: - General Commercial (C1) - Industrial Park (M-P) - Planned Unit Development Overlay since 1997
Planned Unit Development Industrial Park General Commercial Multi-Family Residential
Initial Site Analysis Strengths
• Proximity to employers • Highway visibility •Coastal Mountain view corridor • High volume of visitors
Weaknesses • Sloped topography • Landlocked between exits • Zoning • Soft office market
Opportunities • Kaiser hospital • Strong rental market • Growing community
Threats • Low multifamily rental rates • Possible rezoning hurdles • Constrained vehicular access
Mixed Use
Office Senior
Housing
Restaurant
Retail
Outlet Mall
Entertainment
Medical Office
For Sale Housing
Hotel
Self Storage
Multi-Family
Aquatic Center
Mixed Use
Entertainment
Restaurant
Retail
Hotel
Multi-Family Rental
Will the use realize the value of the land?
Is the use feasible in the development horizon?
Is the use appropriate?
Senior Housing Outlet Mall
Campus/Industrial
For Sale Housing Office
Medical Office
Aquatic Center Self Storage
Casino
Decision Criteria
Development Vision
• Vibrant, mixed use, walkable district
• Marketable phases • Regional entertainment
destination • Maximizing land value • A long term precedent • Urban feel in a suburban
location
Market Analysis Surrounding the Sunset District is a community with a demographic profile of highly educated, high income
professionals, with an average household income of over $78,000 within a 5 mile radius.
13.5%
10.9%
24.6%
24.6%
15.9%
7.5%
3.0%
0-9
10-19
20-29
30-44
45-59
60-74
75+
Age
Dis
trib
utio
n R
ange
Age Groups
1.8% 2.8% 12.7%
14.3%
24.9%
16% 9.5%
9.3% 8.6%
Household Incomes
INCOME DISTRIBUTION
Development Theme ~The Sunset District~
Residential 273 Units of Multifamily Housing
Destination Retail Dave & Busters, Big Al’s, Regal Cinemas
Restaurant Oswego Grill, Thirsty Lion, Noble Rot, Starbucks
Upscale Hotel aloft, Hyatt Place
Development Overview
Multifamily Residential Features • Urban community feel • Neighborhood retail space • 1,2, & 3 bedroom units • Secure garage parking • Outdoor common areas
Number of Units 273
Rent per SF $1.45
Total Cost $46 million
Cost per Unit $167,000
Return on Costs 7.0%
IRR 14%
Assumed Land Value $17 per SF
Target Market Range
Destination Entertainment • Synergy of uses • Maximize signage/visibility • Emphasis on pedestrian
accessibility • On street & garage parking
Development Principles ~Destination Entertainment~
Big Al’s/D&B Concept: • Fee simple ownership • Build and sell development
Building Footprint 51,000 SF
Land Sale (4 acres) $17 per SF
Building Footprint 56,000 SF
Total Construction Costs $17 million
Comparable Rent $19-$21 per SF
Regal Cinema Concept: • Negotiation with existing landlord • Turn key with 20-25 year lease • Relocate and upgrade existing facility
Development Principles ~Upscale Hotel~
Hotel Concept: • EB-5 Financing • Midrise construction • Corporate meeting facilities • Upscale hotel amenities • Secure garage parking facilities • Adjacent entertainment and restaurant destinations
Building Shell Six Stories
Total Size 66,000 SF
Number of Rooms 137
Price Point $125 per night
Total Cost $127,000 per key
Land Value $10,000 per key
Development Principles ~Restaurant~
Restaurant Concept:
Rent $34-$36 per SF
Cap Rate 7.5%
Total Stabilized Value $16 million
Total Cost $14 million
NOI $1.2 million
Return on Costs 9%
Number of Pads 4
Total Size 29,000 SF
Pad Size Range 6,500-9,000 SF
Number of Pads 5
Total Size 11,000 SF
Pad Size Range 1,500-3,000 SF
Full Service Restaurant/Bar
Inline Retail/Small Restaurant
Parking
Shared Parking
Hotel 160
Theater 400
Entertainment Arcade 387
Restaurant / Retail 205
Total 1152
Multifamily 354
Parking Allotment
Commercial Uses
Streetscape • Pedestrian friendly sidewalks and
lighting • Blend the street and building realm • Provide visual connections and
hierarchy • Mitigate stormwater impacts • On street parking • Narrow ROW to slow traffic
Landscape and Outdoor Areas
• Provides “Third Place” • Pedestrian oriented • Outdoor/Green spaces for
residents • Supplements parking needs
Site Design Multifamily – Entertainment – Restaurant/Retail
Final Summary
Feasible - Innovative - Delivers Value
• Bob LeFeber - CRA Advisors • Dick Loffelmacher - CB Richard Ellis • Mike Wells - CB Richard Ellis • Robert Crane - Regal Cinemas • David Pettingill - Dave and Buster’s • Gary Vance - Holland Development • Matt Grady - Gramor Development • Dave Burnett - Oswego Grill • Bud Gabriel - Oswego Grill • Isaac Scott - Anthem Memory care • Christopher Dobbins – Hyatt • Jay Leo - The Springs at Tanasbourne • Willy Paul - Kaiser • Mike Goakey - Goakey Theater
Consulting • Colin Cooper - City of Hillsboro • Dawn Nguyen - Realty Income
Corporation • Jeffry Tallman - Cypress Capital
Management
• Roger Collins - InnVentures • Bill Jensen - Howard S. Wright • Gordon Childress - Howard S. Wright • Dick Spies - Group Mackenzie • Mark Fisher - StanCorp Mortgage
Investors, LLC
Sincere Thanks To:
Appendix 1) Overview
2) Multi-Family
3) Parking Structure
4) Theater and Hotel
5) Restaurant and Retail
Appendix