CITYFRONT TODAY
Okrent Associates, Inc. 1 1
CITYFRONT
ADDITION OF COLUMBUS BRIDGE
Okrent Associates, Inc. 2
CENTRAL STATION TODAY
Okrent Associates, Inc. 3 3
CENTRAL STATION EXTENSION OF INDIANA & ROOSEVELT
Okrent Associates, Inc. 4 4
LAKESIDE: TODAY
5 5
LAKESIDE:
EXTENSION OF LAKE SHORE DRIVE BY 2013 6 6
LAKESIDE:
THE RIPPLE EFFECT 7 7
I. II. III. IV. V.
Opportunities + Challenges Development Principles Phasing + Demand Drivers Financials Recap
8
Legacy Capital Partners LLC
OPPORTUNITIES + CHALLENGES SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
9
OPPORTUNITY:
MAGNITUDE OF LAKESIDE SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
10
OPPORTUNITY:
LAKEFRONT PROPERTY + VIEWS SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
11
CHALLENGE:
DISTANCE FROM DOWNTOWN SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
12
Metra LSD
CHALLENGE:
Bus Transit
PUBLIC TRANSPORTATION + DEMAND SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
13
Legacy Capital Partners LLC
DEVELOPMENT PRINCIPLES
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
14
Flexibility Demand Conserve Capital
Public-Private Partnership
LCP Development Plan SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
15
Legacy Capital Partners LLC
PHASING + DEMAND DRIVERS SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
16
Demand Drivers
PHASE #1 “THE EDGE” 2013 - 2022 SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
17
24 acres 1,100 jobs & 1.1 million sq ft 3.3 million annual visitors
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
18
Alternative use Replaces Nebraska Furniture
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
19
100,000 GLA Job creation Supports local demand
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
20
Presidential Library or Museum Use 10 to 25 acres 300,000 to 500,000 visitors
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
21
SITE
PRINCIPLES
24 acres Publically funded Job creation Fosters innovation
DEMAND
FINANCE
SUMMARY
22
10 acres Long-term land lease with experienced developer
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
23
Temporary Uses
170 acres 100 jobs Naming rights
100, 000 visitors to Lakeside in 3 days SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
24
Demand Drivers
PHASE #2 “THE BRIDGE” 2023 - 2032 SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
25
Corporate Headquarters 10 acres Job creation Increases tax revenue
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
26
SITE
PRINCIPLES
Retail, hotel & entertainment Iconic complex on slip 350,000 GLA Job creation
DEMAND
FINANCE
SUMMARY
27
Demand Drivers
PHASE #4
PHASE #3
“THE LAKEFRONT” 2043 - 2052
“THE PARKWAY” 2033 - 2042 SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
28
Parkway Residential 71 acres
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
29
Slip Marina Lakefront Residential
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
30
Legacy Capital Partners LLC
FINANCIALS SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
31
LCP Equity Valuation Description
Values
Solo Cup Site Sale
$30M
Solo Cup Site Area
107 acres
Sale Price Per Sq Ft
$6.44
Adjustment for Gradient Map
$7.41
Total Land Equity Value
$112M
Cash Equity Assumed
$20M
Total Equity Assumed
$132M
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
32
Land Equity Valuation Assumed 2% compounded annual growth
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
33
Capital Strategy Conserve Capital
• • • •
Minimize Risk
• Partner through Joint Ventures • Phasing/Proof of concept • Public/Private Partnerships
Move Quickly Leverage Developer Expertise SITE
PRINCIPLES
DEMAND
Use of leverage Partner with others on development deals Generate cash through land sales Public/Private Partnerships
• Projects undertaken simultaneously • Create buzz that drives demand
• Participate as money partner when we do not have expertise with a given project type
FINANCE
SUMMARY
34
Development Channel & Rationale Development Channels Land Sale Develop Money Partner Development Partner 75% 75% 75% Prime + 2.5% Prime + 2.5% Prime + 2.5% 100% 10% 50% N/A 9% 8% N/A 25% 40% Yes Yes No 100% 3% -
LTC Rate Co-Investment Preference Promote Recourse Control Development Fee
Land Sale Rationale
SITE
• Target business typically constructs and operates its own site and LOI is in place • Generate liquidity
PRINCIPLES
Develop • • •
DEMAND
Develop with a JV Money Partner
We have expertise in developing the property type Property can be leased up/sold quickly Equity commitment is manageable without a partner
FINANCE
• • •
We have expertise in developing the property type Uncertainty with regards to profitability Amount of equity required is in excess of what we can fund on our own
SUMMARY
JV with a Developer • •
We lack expertise in developing the property type We can benefit from the expertise of a partner who can make the project successful
35
Phase 1 Overview
SITE
PRINCIPLES
Phase 1 Overview Total Land
239 Acres (40% of Total) 122 Donated 44 Infrastructure 63 Land for development 10 Land Lease
Total GLA Developed (S.F. in 000s)
4 million S.F.(17% of Total) Retail 1,163 Multi 720 R&D Park 425 Sports Complex 250 Senior Living 100 Townhomes 75
Total Development Value
$297 million ($168/sf)
Operating Income During Stab.
$22 million
Total Cost
$258 million ($151/sf)
Total Profit
$52 million (1.68x)
Total Required Equity
$76 million
DEMAND
FINANCE
SUMMARY
36
Phase 1 Overview Multifamily and Retail produces greatest profitability in Phase 1 Phase 1 Summary ($ in millions) In Place Value Apartments - 2nd Round
Pro Forma Costs Income
Profitability
LCP Equity In
Profitability LCP Profit
Multiple
Development Method
$38.9
$32.1
$2.3
$9.1
$1.1
$1.8
2.72x
Develop/JV
In Line Retail
9.1
7.2
0.3
2.2
1.7
2.2
2.31x
Develop
Specialty Retail
4.1
3.4
0.3
1.0
0.8
1.0
2.31x
Develop
Big Box Land Sale
27.9
13.0
0.0
15.0
13.0
15.0
2.15x
Land Sale
Apartment/Retail Tower
89.0
85.0
9.1
13.2
1.9
2.1
2.11x
Develop/JV
Townhomes
14.9
13.6
0.0
1.3
0.3
0.3
1.84x
Develop/JV
Apartments - 1st Round
28.4
26.9
1.7
3.2
0.6
0.4
1.70x
Develop/JV
R&D/Flex Office
68.1
70.0
5.2
3.3
1.6
0.3
1.20x
Money Partner/JV
Senior Living
16.2
16.2
1.7
1.7
1.8
0.8
1.47x
Money Partner/JV
Sports Complex
N/A
N/A
1.6
1.6
0.0
1.6
N/A
Land Lease
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
37
Phase 2 Overview Phase 2 Overview
SITE
PRINCIPLES
Total Land
141 Acres (23% of Total) 52 Infrastructure/Green Space 99 Land for development
Total GLA Developed (S.F. in 000s)
5.3 million S.F.(23% of Total) Multi 2,400 Corporate HQ 800 Retail 745 Senior Living 500 Townhomes 470 Hotel 400
Total Development Value
$1,059 million ($275/sf)
Total Cost
$975 million ($253/sf)
Operating Income during stab.
$113 million
Total Profit
$232 million (2.1x)
Total Required Equity
$221 million
DEMAND
FINANCE
SUMMARY
38
Phase 2 Overview Development initiated providing conduit to the slip Phase 2 Summary ($ in millions) In Place Value Apartment/Retail Tower
Pro Forma Costs Income
Profitability
Profitability LCP Equity In LCP Profit
Multiple
Development Method
$383.5
$314.2
$75.8
$145.1
$6.6
$28.3
5.27x
Develop/JV
Specialty Retail
39.0
25.2
3.0
16.8
5.8
16.8
3.92x
Develop
Townhomes
99.2
89.0
0.0
10.1
1.1
1.7
2.50x
Develop/JV
In Line Retail
90.6
74.0
4.3
20.9
17.3
20.9
2.21x
Develop
Corporate Office
230.8
225.4
18.8
24.2
5.3
3.7
1.70x
Develop/JV
Apartments
51.0
48.0
0.0
3.0
1.1
0.4
1.37x
Develop/JV
Hotel
125.7
126.2
9.6
9.1
14.8
4.5
1.31x
Money Partner/JV
Senior Living
29.5
28.6
0.0
0.9
3.4
0.5
1.14x
Money Partner/JV
Big Box Land Sale
10.3
9.4
0.0
0.9
9.4
0.0
1.00x
Land Sale
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
39
Phase 3 Overview Phase 3 Overview
SITE
PRINCIPLES
Total Land
149 Acres (25% of Total) 36 Donated 25 Infrastructure 88 Land for development
Total GLA Developed (S.F. in 000s)
5.8 million S.F.(26% of Total) Multi 3,250 Retail 800 Medical Office 800 Townhomes 730 Senior Living 300
Total Development Value
$1.8 billion ($315/sf)
Total Cost
$1.7 billion ($292/sf)
Operating Income during stab.
$269 million
Total Profit (profit for both)
$403 million (2.1x)
Total Required Equity
$364 million
DEMAND
FINANCE
SUMMARY
40
Phase 3 Overview Multifamily and Townhomes around parkway lead development as most profitable property types Phase 3 Summary ($ in millions) In Place Value
Pro Forma Costs Income
Profitability
LCP Equity In
Profitability LCP Profit
Multiple
Development Method
Apartment
$407.6
$333.9
$48.8
$122.5
$7.5
$24.6
4.27x
Develop/JV
Townhomes
181.5
159.6
0.0
21.9
2.1
4.2
2.99x
Develop/JV
Specialty Retail
86.3
66.1
6.8
26.9
15.5
26.9
2.74x
Develop
Senior Living
97.6
75.6
10.1
32.1
8.5
13.6
2.61x
Money Partner/JV
Apartment/Retail
623.3
654.7
159.6
128.2
13.9
12.8
1.92x
Develop/JV
In Line Retail
166.0
146.9
7.8
26.9
34.4
26.9
1.78x
Develop
Medical Office
291.1
282.0
34.0
43.1
32.3
19.6
1.61x
Money Partner/JV
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
41
Phase 4 Overview Phase 4 Overview
SITE
PRINCIPLES
Total Land
72 Acres (12% of Total) 21 Infrastructure 51 Land for development
Total GLA Developed (S.F. in 000s)
7.3 million S.F.(33% of Total) Multi 4,200 Condos 2,300 Retail 435 Senior Living 400
Total Development Value
$4.3 billion (565/SF)
Total Cost
$3.7 billion ($457/SF)
Operating Income during stab.
$235 million
Total Profit
$836 million (2.0x)
Total Required Equity
$817 million
DEMAND
FINANCE
SUMMARY
42
Phase 4 Overview Upscale condos around the waterfront introduced Phase 4 Summary ($ in millions) In Place Value
Pro Forma Costs Income
Profitability
LCP Equity In
Profitability LCP Profit
Multiple
Development Method
Condos - 1st round
$5.6
$508.8
$682.8
$179.5
$10.6
$26.9
3.54x
Develop/JV
Condos - 2nd round
5.6
1,048.2
1,335.9
293.3
23.1
50.3
3.18x
Develop/JV
Specialty Retail
15.5
13.2
3.5
5.7
3.0
5.7
2.92x
Develop
Lowrise Apartment
278.9
249.6
32.9
62.2
5.5
10.0
2.81x
Develop/JV
1,194.6
1,144.6
153.8
203.8
25.2
30.9
2.22x
Develop/JV
Senior Living
161.8
131.1
11.2
41.9
15.0
17.9
2.19x
Money Partner/JV
In Line Retail
168.2
149.4
19.5
38.3
34.3
38.3
2.12x
Develop
High Rise Apartment
437.5
440.3
13.0
10.2
10.3
1.0
1.10x
Develop/JV
Apartment/Retail
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
43
Summary
Profitability over 40 years results in a 4.0x Cash on Cash Multiple and an implied IRR of 3.6% Legacy Capital Partners Equity
$600,000,000 Phase 4
Phase 3
Phase 2
Phase 1
Total Equity: $536M
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$0
2012
2016
2020
2024
2028
Land Equity
SITE
PRINCIPLES
DEMAND
FINANCE
2032
2036
2040
2044
2048
2052
Cash Equity
SUMMARY
44
Summary
Substituting aggressive assumptions results in only moderate risk adjusted returns of 7.2% Legacy Capital Partners Equity
$2,500,000,000 Phase 1
Phase 4
Phase 3
Phase 2
Total Equity: $2.1B
$2,000,000,000
$1,500,000,000
$1,000,000,000
$500,000,000
$0
SITE
2012
2016
PRINCIPLES
2020
DEMAND
2024
2028
2032
2036
Land Equity
Cash Equity
FINANCE
SUMMARY
2040
2044
2048
2052
45
Legacy Capital Partners LLC
CONCLUSION
SITE
PRINCIPLES
DEMAND
FINANCE
SUMMARY
46
Legacy Capital Partners LLC
QUESTIONS
47