270 54 81 135

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TEAM CODE: 187707

SITE PLAN

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Office / Retail / Commercial

“Nexus Hotel”

Office Space

Retail / Commercial Space

“Innovation Row” Co-working Space

“Innovation Row” Makerspace

Transit Infrastructure

Go-Rail / Smart Track Station

Subway Station

Streetcar Stop

Bus Station

“Ion Pavilion”

Public Amenities

Private Residences

“Ion Plaza” Public Space

Rooftop Terrace / Pedestrian Street

“Don River Bikeway” / Repurposed Highway Ramp

“East Landing Park”

Public Art Gallery

Farmer’s Market / Outdoor Event Space

High-Rise Condominiums/Apartments

Med-Rise Condominiums/Apartments

transi+ionActivate Connect Energize

DESIGN NARRATIVE Toronto churns with energy and exuberant growth. The skyline bristles with towers rising higher each year. Its avenues buzz with life. Subway extensions thread through the city and plug growth centers into the urban network. Commuter and regional rail tie the urban nucleus to the cities in its orbit. Toronto is a lightning rod attracting talent from around the world. It continues to grow as a diverse, global city. The cultural contributions of its people power Toronto’s economic and technological dynamo, propelling it into the future.

Transition activates a latent space within the city. Situated between the vibrant, historic Queen Street corridor and the enormous potential of the former industrial lands along Toronto’s waterfront, Transition seeks to fill a void between these districts, extending Broadview Avenue southward with a lively, pedestrian street front and transit plaza. The base buildings of the project engage passers-by with a mix of businesses serving commuters, workers, and residents. The slim residential towers of this development increase in height across the site and, with the townhouses on Broadview Avenue, bridge the divide between the soaring office towers planned to the south and the tree-lined residential streets of South Riverdale. A flood protection berm shelters the site from floodwaters, removing 140 South Riverdale properties from the regulatory flood area. The plantings and grading of the berm reduce the noise from the Don Valley Parkway while providing recreation space and shaded paths for walking and cycling on the Lower Don Trail.

Transition connects Toronto’s past and future. The construction of the rail station and the extensions of streetcar and subway lines through the site will connect it to surrounding neighborhoods, the downtown core, and all of southern Ontario. Upon the completion of the planned transit expansions, over 100,000 commuters will pass through, under, and over Transition each day, carrying the pulse of a thriving city. The proximity to new employment centers and multiple transit modes make Transition a natural transfer point where people will arrive, circulate, remain, and depart for other destinations. This design seeks to punctuate these commutes with an electrifying place of exploration, exhibition, and change.

Toronto’s wealth of academic and entrepreneurial activity affords opportunities for catalytic partnerships. The arrival of corporate tenants in waterfront developments opens a new venue for partnerships between universities and business. Transition harnesses these potent forces, creating a place where industry leaders can collaborate with young researchers and entrepreneurs and drive innovation. New and repurposed mixed-use buildings north of Eastern Avenue help to frame Transition’s central plaza and house the primary facilities of the innovation district. Other offices, galleries, and collaboration spaces mix in with the neighborhood district west of Broadview Avenue. The Ion Pavilion closes the third side of the plaza and anchors the project site, offering a venue for public and private events and a link between the train and subway stations. The Pavilion features a commuter-oriented commercial sublevel. Transition serves as the interface between high technology and emerging talent, between Toronto’s people and its potential.

FINANCIAL NARRATIVE

Project PhasingTransition is split into three phases, each designed to stand independently yet contribute to the project’s function as an epicenter for community, transportation, and technology.

Phase I: Activate the Public RealmPhase I first activates the public realm through the creation of a complete mixed-use setting along the extension of Broadview Avenue south to the soon-to-be corporate offices at East Harbour. Three towers will be constructed, providing a balanced mix of rental and for-sale housing with office and commercial use on the lower levels. To make this possible, Parcels B, C, and D will be purchased for an estimated $C 25.7 Million. The ramp from Eastern Avenue to the Don Valley Parkway will be closed and repurposed for pedestrians. A park will be constructed along the western boundary of the site. The grading and improvements along the western boundary will also serve as defense against flooding, funded as part of the Don Mouth Naturalization and Port Lands Flood Protection Project.

Phase II: Connect the Urban FabricPhase II marks the arrival of the train station and streetcar- publicly funded projects that will provide a direct link to downtown and beyond. Phase II also provides a new pedestrian connection to East Harbour, further mending the urban grid. Three new mixed-use towers will be constructed. The site and surrounding neighborhood will be connected internally through the creation of Ion Plaza, Transition’s signature amenity for those traveling or just looking for a place to relax. The properties north of Eastern Avenue will be purchased at a cost of approximately $40.8 Million in Phase II to make way for the “Innovation Row” in Phase III.

Phase III: Energize the Community There will be a new buzz in the air when Ion Pavilion, the Nexus Hotel, and subway line are constructed in Phase III. Additionally, the new co-working and makerspace will supercharge Transition after adding several hundred students, tech start-ups, and low-rise housing options. Once Phase III is completed, 100,000 s.m. (or over 1 Million s.f.) of commercial and institutional space will be created, bringing an expected 2,000 new jobs. The transportation and tech focus of Transition will be an ideal setting for businesses such as Bombardier, Boston Dynamics, and Waymo.

FinancingThe majority of development costs will be financed with a series of constructions loans at 55% loan-to-cost that will be subsequently refinanced into permanent 10-year loans with a 25-year amortization. The remaining balance will be funded with investor and developer equity.

The phasing and financing strategy for Transition nets a 28.1% leveraged internal rate of return. Further, Transition is also eligible for the Imagine, Manufacturing, Innovation, and Technology (IMIT) Business Incentive Program through the City of Toronto, which is a grant of up to 70% of the municipal taxes attributable to the overall project for sites located in designated employment districts, in which Transition is located. Additionally, if environmental studies show that site remediation is required, Transition is eligible for the Brownfield Remediation Tax Assistance program through the City, which equates to a grant of up to 77% of the municipal taxes attributable to the overall project. Likewise, Transition may be eligible for a grant of unknown amount from the Green Municipal Fund – Brownfields Sector Funding.

transi+ionActivate Connect Energize

TEAM CODE: 187707

2018 ULI Hines Student Competition Team Summary Board

1. Summary Pro Forma Team 187707Year 0 Phase I Phase II Phase III

2018-2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Net Operating Income (C$)

Rental Housing - - 4,331,144 8,818,210 8,976,938 9,138,523 14,811,381 15,077,986 17,833,623 20,683,577 For-Sale Housing - 49,307,255 50,293,400 - 116,833,679 66,325,557 48,342,004 33,339,279 11,335,355 -

Rental Housing - - 364,728 742,586 755,953 769,560 1,241,089 1,263,429 1,481,423 1,706,855 For-Sale Housing - 6,102,726 - - 8,649,931 8,822,930 - 2,918,590 2,976,962 -

- 2,496,255 5,142,286 7,944,832 8,183,177 8,428,672 8,681,532 11,352,120 11,692,684 12,043,465 - 1,524,230 3,124,672 4,804,183 5,449,545 6,124,172 6,829,125 7,942,595 8,141,159 8,344,688 - - - - - - - 10,190,254 10,394,059 10,601,941 - - - - - - - 7,794,025 7,949,905 8,108,903 - - - - 554,974 1,149,488 1,172,478 2,088,363 2,130,130 2,172,733 - 2,325,288 4,749,938 7,270,645 7,709,957 8,153,334 8,316,400 8,482,728 8,652,383 8,825,431 - 6,345,773 17,712,768 30,279,528 31,630,544 33,763,748 42,461,541 64,191,500 68,275,366 72,487,592 - 55,409,981 50,293,400 - 125,483,610 75,148,486 48,342,004 36,257,869 14,312,317 - - 61,755,754 68,006,168 30,279,528 157,114,154 108,912,235 90,803,545 100,449,368 82,587,683 72,487,592

Development Costs (C$)Rental Housing - 62,271,884 63,517,322 - - 79,436,861 - 35,269,181 35,974,565 -

For-Sale Housing 55,832,260 - - 74,490,099 75,979,901 - 23,186,345 23,650,072 - - Rental Housing - 6,624,669 6,757,162 - - 8,484,135 - 3,827,663 3,904,216 -

For-Sale Housing 5,570,566 - - 7,702,185 7,856,228 - 2,517,709 2,568,063 - - 26,504,639 27,034,731 27,575,426 - - - 24,135,333 - - -

9,115,471 9,297,780 9,483,736 3,095,491 3,157,401 3,220,549 5,474,934 - - - - - - - - - 76,040,747 - - - - - - - - - 55,509,745 - - - - - - 3,290,393 3,356,201 - 5,237,687 - - -

16,897,382 17,235,330 17,580,037 2,106,654 2,148,787 - - - - - 25,675,000 - - - 40,762,000 - - - - - -

2,569,130 - - 699,072 - - 1,409,536 - - - 6,989,914 - - - - - - - - - 1,657,751 - - 10,448,905 - - 14,352,827 - - -

1,283,750 6,256,856 6,123,220 6,245,684 7,129,740 4,624,926 4,557,077 10,393,243 3,265,749 1,993,939 - 3,412,903 16,516,222 16,163,463 16,986,732 18,820,375 12,208,417 12,329,317 27,435,044 8,620,598 5,263,401 -

30,371,653 147,910,190 144,751,078 148,146,099 168,544,913 109,331,862 108,027,939 245,693,151 77,201,326 47,136,121 -

Annual Cash Flow (C$)- - 61,755,754 68,006,168 30,279,528 157,114,154 108,912,235 90,803,545 100,449,368 82,587,683 72,487,592

Total Asset Value (5%) 1,449,751,839 65,238,833

30,371,653 147,910,190 144,751,078 148,146,099 168,544,913 109,331,862 108,027,939 245,693,151 77,201,326 47,136,121 - 30,371,653 147,910,190 82,995,324 80,139,931 138,265,386 47,782,292 884,296 154,889,606 23,248,042 35,451,561 1,457,000,598 29,087,903 71,277,986 7,959,984 6,132,804 52,904,405 103,177,487 53,162,722 31,350,947 60,867,250 55,145,275 733,742,694

- 4,718,400 4,577,753 7,473,227 6,639,650 4,737,329 7,136,940 10,183,038 4,841,522 6,231,153 3,474,26755%

340,100,131 143,962,000 12.6% 1,449,751,839 28.1% 1,854,999,504

Phase I Phase II Phase IIITotal Buildout 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Project Buildout by Development Units

Rental Housing 1,128 - - 263 526 526 526 840 840 984 1,128 For-Sale Housing 858 - 97 194 194 412 616 702 780 858 858

Rental Housing 119 - - 28 56 56 56 89 89 104 119 For-Sale Housing 86 - 20 20 20 45 70 70 78 86 86

84 - 19 38 56 62 68 74 84 84 84 410 - - - - - - - 410 410 410 455 - - - - 130 260 260 455 455 455

1,792 - 554 1,108 1,662 1,727 1,792 1,792 1,792 1,792 1,792 Project Buildout by Area (s.m.)

Rental Housing 74,439 - - 17,314 34,628 34,628 34,628 55,404 55,404 64,922 74,439 For-Sale Housing 54,837 - 7,594 15,188 15,188 32,365 41,857 48,600 53,278 54,837 54,837

Rental Housing 8,271 - - 1,924 3,848 3,848 3,848 6,156 6,156 7,214 8,271 For-Sale Housing 7,515 - 1,688 1,688 1,688 3,908 6,129 6,129 6,822 7,515 7,515

32,500 - 8,533 17,067 25,600 25,600 25,600 25,600 32,500 32,500 32,500 16,850 - 3,750 7,500 11,250 12,450 13,650 14,850 16,850 16,850 16,850 13,000 - - - - - - - 13,000 13,000 13,000 36,500 - - - - - - - 36,500 36,500 36,500

6,860 - - - - 1,960 3,920 3,920 6,860 6,860 6,860 26,985 - 8,342 16,683 25,025 26,005 26,985 26,985 26,985 26,985 26,985

1,785 - - - - - - 1,785 1,785 1,785 1,785 279,542 279,542

Percent of TotalRental Housing (per unit) 245,097

For-Sale Housing (per unit) 295,033 4.5%Rental Housing (per unit) 248,721 40.5%

For-Sale Housing (per unit) 304,823(per s.m.) 3,238(per s.m.) 2,543 55.0%(per room) 185,465(per s.m.) 1,521 100.0%

(per space) 26,119(per space) 31,232

Ion Pavilion & Plaza

Acquisition and FeesTotal Infrastructure CostsTotal Development Costs

Street CarGo Rail/Smart Track Station

Subway Line & Stop

Infrastructure Costs (C$)

Coworking & Makerspace

RoadsUtilities

Flood Infrastructure/ParkBike/Multi-Use Path

Current Site Value (start of Year 0)Projected Site Value excluding Condominium Sales (end of Year 10)Projected Site Value Including Condominium Sales (end of Year 10)

Co-working & Makerspace

Year-by-Year Cumulative Absorption

Debt Service & Loan FeesLeveraged Net Cash Flow

(Units)

Net Cash Flow

101,505,305286,078,935 127,964,788

1,188,849,119

Co-working & Makerspace

Land AcquisitionDemolition

Contingency (5%)Indirect costs

2,530,997133,463,885140,369,389

23,872,9439,435,000

279,664

Public Private1,937,604

648,936

Structured Parking 11,884,280Underground Parking 55,968,190

Nexus Hotel 76,040,74755,509,745 Total 1,188,849,119

Office/Commercial 105,250,129 Financing Sources (total)Retail 42,845,363 Construction & Long-term Loans 653,867,015

Affordable 29,597,844 Investor Equity (90% of Equity) 481,483,89326,214,751

Market-rate 276,469,814 Equity Sources (total)253,138,677 Developer Equity (10% of Equity) 53,498,210

Underground ParkingIon Pavilion

Total

3. Unit Development and Infrastructure Costs 4. Equity and Financing SourcesDevelopment Costs (C$) Unit Cost Total Costs (C$) Amount

Market-rate

AffordableOffice/Commercial

RetailHotel

Structured Parking

Market-rate

AffordableRetail

Nexus Hotel (Rooms)Structured Parking (Spaces)

Underground Parking (Spaces)

Total Infrastructure

Total Development Costs

Net Operating Income

Total Costs of Sale (4.5%)Total Development Costs

2. Multiyear Development Program

LTC Ratio

Leveraged Net Present ValueUnleveraged IRR Before Taxes

Leveraged IRR Before Taxes

Remediation

Underground ParkingTotal Net Operating Income

Income from Sales Proceeds

Market-rate

Affordable

Market-rate

AffordableOffice/CommercialMarket-rate Retail

Nexus Hotel

Structured ParkingCo-working & Makerspace

Transition is eligible for the Imagine, Manufacturing, Innovation, and Technology (IMIT) Business Incentive Program through the City of Toronto, which is a grant of up to 70% of the municipal taxes attributable to the overall project for sites located in designated employment districts.

If environmental studies show that site remediation is required, Transition is eligible for the Brownfield Remediation Tax Assistance program through the City, which equates to a grant of up to 77% of the municipal taxes attributable to the overall project.

Transition may be eligible for a grant of unknown amount from the Green Municipal Fund – Brownfields Sector Funding is substantial remediation is required.

5. Notes

Office/Commercial

Total Income

RetailNexus Hotel

Structured ParkingUnderground Parking