CITYFRONT TODAY. Okrent Associates, Inc

CITYFRONT TODAY Okrent Associates, Inc. 1 1 CITYFRONT ADDITION OF COLUMBUS BRIDGE Okrent Associates, Inc. 2 CENTRAL STATION TODAY Okrent Asso...
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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