Individual Development Project

London Bridge Development & Consulting

Goodman’s Warehouse Renovation

Prepared for: Ironline

Prepare by: Steven Moreno

Attributes

Phoenix Metro1. Growth2. Pro-Business3. Cost of Living

Downtown 1. Light Rail2. TOD Development Support

Site1. Location to DTC2. Several Devolopment Options

Site Location:841 E. Jefferson St. Phoenix, AZ


Site Location

P

P

P

P

E. Van Buren St.

7th S

t..

Cent

ral

Jefferson St.

Washington St.

N

1 2

3

33


Site Location

Parking

P

Hotel

Multi-Family

Light Rail

Commercial/Office

Museums

DEVELOPMENT CONSIDERATIONS

Development Type: Opportunity Risk

1. Office Conversion DTC Growth Cost/Neg Absorption

2. Single Tenant Grocery Store Only Downtown Grocer Lack of Density

3. Multi-Vendor Food Market Regional Draw/Easily Changed Vendor Interest


Considerations

DEVELOPMENT CONSIDERATIONS

Development Type: Opportunity Risk

1. Office Conversion DTC Growth Cost/Neg Absorption

2. Single Tenant Grocery Store Only Downtown Grocer Lack of Density

3. Multi-Vendor Food Market Regional Play/Easily Changed Vendor Interest


Considerations


Development Options

Office Conversion – Class B- Rent per SF (NNN) $15-$18- CapEx $2.5-$3 Million

- TI’s $15-$20

- NOI $700k Annually

- Exit Cap (Class B Office) 7-8% (CBRE Cap Rate Survey 2014)

Single Tenant Grocer – Class B- Rent per SF (NNN) $12-$15- CapEX $2-$2.5

Million- TI $20-

$25- NOI $570K

Annually- Exit Cap (Class B Current) 6.5-7.5%


Redevelopment Choice

Trailer Park & Eatery – Austin, TX

Quincy Market – Boston, MA

Grand Central Market – L.A, California

Pike Place Market – Seattle, WA

Reading Terminal Market – Philadelphia, PA

Santa Barbara Public Market – Santa Barbara, CA


Case Studies


Research

The Phoenix Retail Market

• Vacancy Rates decreased from 10.1% to 9.8% in Q4 2014

• Net absorption positive - 819,805 Sq Ft

N~ 18k on Jefferson

~ 50 K @ 7th St. & Jefferson


Research

841 E. Jefferson St, Phoenix, AZDrive Time: 15 Minute Radius


Research

Phoenix Bio-Medical Campus

Convention Center & Science Museum

Federally Funded Walkable Street Improvement

Pilgrim Rest Baptist Church


Site Location


Management

Insite Food – International Food & Beverage Consultants - NYC

Designer – Interior Experience Design Consultant

RM/d – Property Manager of Grand Central Market – Los Angeles

Ironline – Property Owner & Developer

Implementation Team

Parking Lot Construction

Marketing Consultant

Levine Machine – Construction/Reno

Vendor Lease Up Group

Marketing Push

Building Renovation

Vendor Leasing

April 2015Month 0

May 2015Month 1

June 2015Month 2

July 2015Month 3

Aug 2015Month 4

Sept 2015Month 5

Oct 2015Month 6

Nov 2015Month 7

Dec 2015Month 8

Jan 2016Month 9

Parking Lot Construction Tenant

Improvements

Implementation Timeline


Implementation

N

Site Layout Example

- Bathroom = 2,000 Sq Ft

- Play Area = 2,500 Sq Ft

- Seating = 5,000 Sq Ft

- Vendor Space (200-1500 Sq Ft Spaces)

- Bay Doors/Access to Outdoor Dining

- Elevator


New Site


Research


Financials


New Site

Development Costs

- Parking Improvements $125k- Road Improvements $75k- Utility Cost – Gas & Electric $175k- A/C Installation $125k- Architecture & Engineering$50k- Entitlement Cost $35k- Construction Cost $750k- Landscaping $50k

• Total Development Cost $1,380,000 ($32/Sq Ft)


Financials

Monthly Cash Flow Summary

Rent – $25 per Sq. Ft. (Gross Lease) $75,863• Pop-up Front Courtyard Vendors $2,764• Parking Revenue $3,375• Mezzanine Meeting Space $4,000Total Potential Gross - $84,755Rent @ Stabilized Occupancy of 85% (Gross)$72,750

(Operating Expenses)($26,900)(TI & Lease Commission)($5000)

Net Operating Income $40,850 per Month


Disposition


Questions

Questions

Documents

Individual Development Project