luby's tract at citycentre: potential development analysis
TRANSCRIPT
LUBY’S TRACT: DEVELOPMENT ANALYSISEXECUTIVE SUMMARY
825 Town & Country Lane Houston, Harris County, Texas, 77024
1.1329 acre tract former 10,648 sf
Luby’s
TRACT
LUBY’S TRACT: DEVELOPMENT ANALYSISMARKET ANALYSIS
231,267 – 253,872 cars on Katy Freeway at Beltway 8
131,840 – 201,000 cars on Beltway 8 at Katy Freeway
10,000 – 12,000 visitors daily at CITYCENTRE during office hours
12,000 – 30,000 visitors daily at CITYCENTRE during peak weekend hours
2,700 office workers within 2 blocks (By Project Completion)
815 residences at CITYCENTRE (By Project Completion)
TRAFFIC
RETAIL CONSUMER PROFILE white, 38y/o, upper-middle income, homeowner
health, energy, and engineering services OFFICE USER PROFILE
RADIUS 1 Mi 3 Mi 5 Mi2016 projection 10,410 125,402
364,0912011 estimate 9,000 116,045336,8732010 census 8,581 114,499332,580growth 2011-2016 15.70% 8.10% 8.10%
LUBY’S TRACT: DEVELOPMENT ANALYSISMARKET ANALYSIS
officesCITYCENTRE 1CITYCENTRE 2CITYCENTRE 3CITYCENTRE 4 under construction900 Town and CountryTown & Country IIITown & Country IVTown & Country VTown & Country Building909 Town and Country proposed
residencesBROWNSTONE AT CITYCENTREDOMAIN AT CITYCENTREICON CITYCENTRE under constructionLOFTS AT CITYCENTREPEARL CITYCENTRE proposedRESIDENCES AT HOTEL SORELLA proposed
median HH income of
$208K
population of approximately 700K in a 7 mile radius
LUBY’S TRACT: DEVELOPMENT ANALYSISSTRATEGY
TAKE ADVANTAGE OF MKT CONDITIONS; SELECT HIGHEST & BEST USE
21,679 RSF / 18,577 USF
15 SPACES1,900
2,789
21,679 RSF / 18,577 USF
21,679 RSF / 18,577 USF
21,679 RSF / 18,577 USF
62 PARKING SPACES
62 PARKING SPACES
62 PARKING SPACES
62 PARKING SPACES4,53
4
9,896 RSF / 8,134 USF
9,896 RSF / 8,134 USF
9,896 RSF / 8,134 USF
Green Heights at CITYCENTRE
Mixed Use Multifamily / Retail
$2.60psf / $30.00nnn23.13% Load Factor
9,896 RSF / 8,134 USF
Green Tower at CITYCENTRE
Mixed Use Office / Retail$28.66nnn / $35.00nnn
8.34% Load Factor
9,896 RSF / 7,350 USF
9,896 RSF / 7,350 USF
GREEN HEIGHTS AT CITYCENTREPHYSICAL ANALYSIS
fresh urban green hip
local stylishfashionable warm
home calm
chief concerns
CONNECTIONEASE OF ACCESS
SPACE
CONNECTIONSPACE
distance from structuresextension of development
EASE OF ACCESS
formerly had 35 spacesadd 29more; surpass
reqs.
GREEN TOWER AT CITYCENTREPHYSICAL ANALYSIS
modernurban productive clean
convenient efficientconnected
businessoffice comfortable
chief concerns
CONNECTIONENGINEERING
CONNECTION
extension of development
ENGINEERING
required creativity to accommodate tight
parking garage constraints
LUBY’S TRACT: DEVELOPMENT ANALYSISFINANCIAL ANALYSIS – BACK OF NAPKIN
SELECTING HIGHEST & BEST USE
Green Heights at CITYCENTRE
Mixed Use Multifamily / Retail
50,000 SF$2.60/mo/mg
$106,000
$6,000,000$4,700,600$150,250
$10,750,600
9.86%
Green Tower at CITYCENTRE
Mixed Use Office / Retail
96,000 SF$28.50/yr/nnn
$2,570,000
$6,000,000$13,780,000$5,500,000$25,280,000
10.17%
sizerate
INCOME
landconstruction
ti & commissionsTOTAL COST
ROI
9% vacancy + parking
$21.20/yr/nnn
$95psf, with parkingsalary + 1 retail lease
$110psf;$34psf parking
LUBY’S TRACT: DEVELOPMENT ANALYSISFINANCIAL ANALYSIS – COSTED OUT
MATERIALS COST LESS; RENTS CONTINUE TO CLIMB
Green Heights at CITYCENTRE
Mixed Use Multifamily / Retail
$6,140,000$4,941,333$202,300$297,653$160,000$769,335
6.66%5.31%9.38%2.10
$15,352,8356.50%
Green Tower at CITYCENTRE
Mixed Use Office / Retail
$6,140,000$17,864,747$1,856,029 $849,590$160,000
$1,693,519
9.12%20.12%18.15%
2.96
$40,085,2347.50%
acquisitionconstructionmarketing
developmentoperationsfinancing
ROIROEIRR
MULTIPLE
VALUECAP
LUBY’S TRACT: DEVELOPMENT ANALYSISRISK
Total Net Development Cost $22,627,246
1st Year NOI 2,605,000
10th Year NOI $3,006,000
Annual Debt Service $1,943,371
Equity Requirement $11,850,899
Parking
Connectivity
Market Conditions Always a Variable
Exit Cap Rate Questions (conservative at 7.5%; est. 7.0% current)
LUBY’S TRACT: DEVELOPMENT ANALYSISVALUE
more office
more retail
more parking
more foot traffic
hot market
low construction costs
conservative proforma
great location
different user experience