Director: Margaret McFarland Advisor: Kristi Adams Architect: Anthony Pins Mentor: Robert Kaufman PRESENTED BY: Shuchun Wang

Design By: Anthony Pins

Ideal Urban Living with Affordability

Outline • Vision & Mission • Site Overview • Opportunity and Activity • Design • Financial Summary • Conclusion

CHARLES VILLAGE

STATION NORTH

DOWNTOWN

INNER HARBOR HOLLINS MARKET

HARBOR EAST

FEDERAL HILL

VISION & MISSION Improve the Quality of Life, the Building and

Natural Environment

Improve Access to Economic Opportunities in the Area

• Transform vacant land • Provide work-life balance for emerging demographic • Develop general-service retail for existing needs • Preserve historical-architectural elements • Bring new energy into the streetscape • More green and open spaces • Capitalize on revitalization efforts brought by anchor institutions • Work with neighborhood policing and foot patrols • Develop resident/business street cleaning teams • Install security system to protect tenants • Use tax credit equity to minimize reliance on debt • Bring other developments

SITE OVERVIEW CHARLES VILLAGE

BioPark

STATION NORTH DOWNTOWN

HOLLINS MARKET

Hollins Market

INNER HARBOR HARBOR EAST FEDERAL HILL

B & O Museum

NEIGHBORHOOD BACKGROUND • Industrial neighborhood housing workers in Southwest Baltimore • Blighted with vacant properties and declined population

• BioPark located in the area in 2000s • Two anchor institutions in two ends of W Baltimore St. • Hollins Market within walking distance Pictures: http://www.southwestpartnershipbaltimore.org/visionplan/

SITE VIEW • 923-1001 W Baltimore St. • Land:45,993SF

• Current Use: • 6 row houses

• An Arch • A dilapidated building

17,772 SF West Site

28,221 SF East Site

Project Overview • Adjacent to BioPark BioPark

• Baltimore St. & Schroeder St.

• Proposed Use: • 2 bldgs: The A + The E •

17,335 1st floor retail • 112 rental apartments

Arch

• TDC: $26.43M •

The A (W. site): $11.01M • The E (E. Site): $15.42M

East site http://www.southwestpartnershipbaltimore.org/visionplan/

SOCIOECONOMIC CONTEXT 65+ Yrs 7%

35-65 Yrs 38%

0-18 Yrs 24%

AGE

$100K to $150K

Less than $10K

$75K to $100K

Vacant 68.70%

$150K to $200K $10K to $15K

HH INCOME $50K to $75K

18-35 Yrs 31%

• 1,675 people /780 households

• 31% young adults vs. 7% seniors

• Appealing to the young

Occupied 31.30%

$35K to $50K

$15K to $25K

HOUSING UNITS

Owners 44.20%

Renters 55.80%

$25K to $35K

• Median household income $38,371 • 60% HH Income ≤$35,000

• Not luxury housing market

• 1,135 housing units • 50% renters spend more than 35% of household income on rent • The median rent of this area is $852 • The median price of homes $170,000

• Rental market

PRIMARY ISSUES • Large number of vacant buildings • Lack of amenities to draw diverse populations • Resident & worker retail needs are not met • Poor lighting, signage & wayfinding features • Lack of regular maintenance • Perception of crime • Lack of pedestrian and bike connectivity http://www.southwestpartnershipbaltimore.org/visionplan/

ANCHOR INSTITUTIONS = ASSETS • Rental Demand & Supply

• Retail Supply & Demand

• 25,000 employees & 4% annual growth

• Lack of basic retail services

• 44% of Baltimore’s total employment in Downtown

• No similar retails in pipeline

• No new development since 2005

• Existing large customer base: Employees + Residents

• Average vacancy rate ≤ 5%

Subject sites University of Maryland

BioPark

Hollins Market

Bon Secours http://www.southwestpartnershipbaltimore.org/visionplan/

MIXED-USE MIXED-INCOME DEVELOPMENT Phase 2 The E (East site)

15,430 SF/Floor, Wood Residential

12,335 SF/Floor, Wood Residential

56 Apts/10% Affordable 7,670 SF Retail 16 Parking Spaces

56 Apts/10% Affordable 9,665 SF Retail 42 Parking Spaces 11 months to lease up

Phase 1 The A (West Site)

22,215 SF/Floor, Podium

16,535 SF, Podium

10 months to lease up

Retail + Parking + Lobby 1/16-2/17 Entitlement 3/17-3/18 Construction 3/18-5/18 Pre-leasing 5/18-12/18 Lease-up

Phase 1: The A Design By: Anthony Pins

Phase 2: The E

11/18-11/19 Construction 12/19-10/20 Lease-up

10/20-10/24 Sale

LEED CERTIFIED BUILDING

http://kirbylittle.com/273/urban-rooftop-terrace-garden-for-modernhouses/wonderfull-paint-style-coco-peat-for-terrace-gardnening/

Historic Arch

Roof Amenities

http://r4architecture.com/blog/wp-content/uploads/2010/02/solar-panels-close-up.jpg

http://www.boulderdowntown.com/_files/images/ streetscape-bayleaf-4.gif

Solar Panel Security System

http://www.gctech.us/assets/shar ed/security_camera_system_1.jpg

Wide Sidewalks + Public Spaces

Design By: Anthony Pins

FINANCIAL SUMMARY

SOURCES AND USES 3.42% Acquisition Dev. Fee 10.00% Financing 0.84% 4.78% Soft Cost 0.48% Reserves

Hard Cost

Uses Acquisition

The A $ 79,589

The E $ 774,861

Total $ 854,450

Land Improvement $ 5,000 $ 45,000 $ 50,000 Construction $ 8,132,739 $11,924,156 $ 20,056,895 Con. Fin. $ 493,047 $ 722,902 $ 1,215,949 Soft Costs $ 1,031,853 $ 230,527 $ 1,262,380 Permanent Fin. $ 54,409 $ 71,959 $ 126,369 Reserves $ 110,667 $ 110,667 $ 221,335 Development Fees $ 1,100,812 $ 1,542,230 $ 2,643,042 TDC (160.23/SF) $11,008,117 $15,422,302 $ 26,430,420

Loan

64.36%

80.49% Sources Sponsor Investors NMTC City Grants 1st Mortgage Total

Uses

$ $ $ $ $ $

The A 79,589 696,782 2,731,470 345,000 7,155,276 11,008,117

$ $ $ $ $ $

The E 774,861 1,899,491 2,478,653 414,000 9,855,298 15,422,302

Total $ 854,450 $ 2,596,273 $ 5,209,123 $ 759,000 $ 17,010,574 $ 26,430,420

2.87%

65% LTV 1.25 DSCR 6.25% Interest 20 years

Equity City Grants

19.71%

NMTC

10.45% 2.60%

Investor

Capital Stack

Sponsor

RETURNS IRR Sensitivity Analysis M

23.00%

25.00%

DEBT SERVICE COVERAGE RATIO 21.84%

$14

1.55 1.51

$12

18.52%

20.00%

17.64%

$10 $8

15.00%

1.35

1.33

$6

1.25

1.28

1.32

$4

10.00%

$2

$-

5.00%

Year 5

Year 6

Year 7

Year 8

Sale Proceed

1.39

1.36

1.43

1.47

DS from Both

DS from the A

Year 9 Year 10 Year 11 Year 12

Investor

Sponsor

2018

2019

2020

2021

2022

2023

2024

2025

2026

• Sale at 2024, year 9, 5 years after stabilization

• Property Value at Sale: $23,693,403

• Preferred Return: 9%

• Cash on Cash:15.37%

• Sponsor Promote: 30%

• Return on Equity:10.75%

• Pari-Passu Split: Sponsor/ Investor: 20%/80%

• Mixed-Income Community

• Sponsor Return :$2,590,247

• Sustainable Development

• Investor Return:$ 4,315,690

• New Jobs & Local Business

2027

2028

Design By: Anthony Pins

Conclusions • Improve the Quality of Life • Meets the retail demand for the neighborhood • Anticipates the live-work-balance of the emerging demographic

• Improve public safety of the area • Preserves the rich history of Hollins Market •

• Bring Economic Opportunities • Revitalizes the major commercial corridor • Proves economically feasible with favorable returns

• Questions?

Design By: Anthony Pins

Subject sites

Back Up slides

Ideal Urban Living with Affordability

BY-RIGHT DEVELOPMENT • Currently zoned B-2-3, Commercial Community Business District • Various storefront business • Residential rental units • FAR may not exceed 5.0

• 20 feet ≤ Building height ≤60 feet • No environmental issues

• Preserve the Arch Baltimore CityView

CASH FLOW OPERATION INCOME EGI OPEX NOI DS Cash Flow SALE PROCEEDS 9% Cap rate $3,500,000

Year 3 Phase 1 $ 763,878 $ 198,179 $ 565,698 $ 418,399 $ 147,299

Year 4 Phase 1& 2 $1,255,588 $ 324,200 $ 931,388 $ 699,634 $ 203,948

$ $ $ $ $

$2,735,153

$2,891,776

$ 3,887,953

EGI

NOI

2020 Year 5 2,493,515 629,361 1,864,154 1,492,021 320,799

Cash Flow Before Tax

DS

$ $ $ $ $

2022 Year 7 2,632,430 667,689 1,964,741 1,492,021 418,201

$ 6,171,870 OPEX

2024 Year 9 2,781,917 708,351 2,073,566 1,492,021 370,981

2027 Year 11 $ 3,024,962 $ 774,035 $ 2,250,928 $ 1,492,021 $ 390,740

$ 8,532,227

$11,665,842

$ $ $ $ $

Cash Flow After Tax

$3,000,000 $2,500,000

$2,000,000 $1,500,000 $1,000,000 $500,000 $Year 3

Year 4

Year 5

Year 7

Year 9

Year 11

Assumptions Gross SF

The A

The E

Total

I&E

Residential

Retail

Lobby

3,040 SF

2,665 SF

5,705 SF

Rent Escalation

3%

4.75% every 3 years

Parking

5,825 SF

25,025 SF

30,850 SF

Expense Escalation

3%

3%

Retail

7,670 SF

9,665 SF

17,335 SF

MGMT Fee

6%

6%

Total

16,535 SF

22,215 SF

Vacancy Rate

5%

10%

Sale

Capital Cost

Residential

Retail

Exit Cap

9%

Emerging Market

TI

Sale year

Yr. 9

Sensitivity Analysis

Reserve

Selling Cost

6%

Loan Terms

DSCR

LTV

Interest Rate

Term

Annual DS

Annual Interest

1.25

65%

6.25% (fixed)

20

$1,492,021

$1,041,450

$175/unit/yr.

0.5/SF 0.35/SF/yr.

Income & Expense

The A

The E

Income

Income Partial Yr.

Period Beginning Date Period Ending Date Income- Residential Potential Rental Income Vacancy & Credit Loss Effective Rental Income Other Income Operating Income- Residential

1st. Full Yr. Period Date Year 1 Year Beginning 0 Period Ending Date Jan-2019 May-2018 IncomeResidential Dec-2019 Dec-2018 Potential $ 693,240 Rental $ Income 1,039,860 5.35% $ Vacancy 37,088 & Credit $ Loss55,633 $Effective 656,152Rental $Income 984,227 Other Income $ 12,567 $ 18,850 $Operating 668,718 Income$ Residential 1,003,077

Income- Non-Residential Potential Rental Income Vacancy & Credit Loss Effective Rental Income Other Income Reimbursable Expenses (T & I) Operating Income- Non-Residential Gross Operating Income

Income- Non-Residential $ Potential 92,040 Rental $ Income 138,060 $ Vacancy & Credit 5.00% $ 4,602 $ Loss 6,903 $ $Effective 87,438Rental $Income 131,157 $ $ Other- Income $ $ Reimbursable Expenses (T & I) $ 7,721 $ 11,582 $ $Operating 95,159 Income$ Non-Residential 142,739 $ Operating$Income $Gross 763,878 1,145,816 $

Expense

$ $ $ $ $

Year 2 Jan-2020 Dec-2020 1,071,056 5.35% 57,301 1,013,754 19,416 1,033,170

The E Income Partial Yr. 1st. Full Yr. PeriodYear Beginning Date 0 Year 1 Period Ending Date Dec-2019 Jan-2020 IncomeResidential Dec-2019 Dec-2020 Rental Income $ Potential 96,701 $ 1,160,412 & Credit $ Loss 62,082 $ Vacancy 5,174 Rental Income $Effective 91,527 $ 1,098,330 $ Other Income 1,725 $ 20,700 Income- Residential $Operating 93,252 $ 1,119,030

138,060 5.00% 6,903 131,157 11,929 143,086 1,176,256

Income- Non-Residential Rental Income $ Potential 16,108 $ 193,300 & Credit $ Loss $ Vacancy 805 9,665 Rental Income $Effective 15,303 $ 183,635 $ Other Income $ (T14,594 & I) $ Reimbursable 1,216 Expenses $ Income- Non-Residential $Operating 16,519 $ 198,229 Operating Income $Gross 109,772 $ 1,317,259

Expense

Expense 79,940 38,126 29,590 58,026 31,378 237,061

Expense- Residential $ Administrative 6,938 $ 83,260 $ Operating 3,085 $ 37,016 $ Maintenance 2,627 $ 31,528 $ Payroll4,695 $ 56,336 Taxes & Insurance $ 2,539 $ 30,464 Expenses$Operating 19,884 $ Residential 238,604

Expense- Non-Residential $ Retail 44,742 $ 67,113 $ Non-Residential $Operating 44,742 Expenses$ 67,113 $ Total Operating Expenses $ 198,179 $ 297,269 $

69,126 69,126 306,187

Expense- Non-Residential $ Retail 7,048 $ 84,570 Expenses$Operating 7,048 $ Non-Residential 84,570 $Total Operating 26,931 Expenses $ 323,174

Net Operating Income (NOI)

Operating Income (NOI) $Net 565,698 $ 848,548

870,069

$Net Operating 82,840 Income $ (NOI) 994,085

Yearly Reserves Residential Non-Residential Total Yearly Reserves Cumulative Reserves

Yearly Reserves Residential $ $ 13,067 19,600 $ Non-Residential 4,045 $ 6,067 Total Yearly Reserves $ 17,112 $ 25,667 $Cumulative 17,112 Reserves $ 42,779

Expense- Residential Administrative Operating Maintenance Payroll Taxes & Insurance Operating Expenses- Residential

Expense- Residential $ Administrative 51,741 $ 77,612 $ Operating 24,677 $ 37,016 $ Maintenance 19,152 $ 28,728 Payroll $ 37,557 $ 56,336 & Insurance $ Taxes 20,309 $ 30,464 Residential $Operating 153,437 Expenses$ 230,156

Expense- Non-Residential Retail Operating Expenses- Non-Residential Total Operating Expenses

$ $ $ $ $ $

$

$ $ $ $

19,600 6,067 25,667 68,446

Yearly Reserves $ Residential 1,633 $ $ Non-Residential 506 $ Reserves $Total Yearly 2,139 $ Cumulative Reserves $ 2,139 $

19,600 6,067 25,667 27,806

5.35%

5.00%

Thousands

CASH FLOW 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 -500 -1000 -1500 -2000

Cash Flow

$5,707

$2,914

0

0

Year 1

Year 2

14 Year 3

$161 $43 Year 4

$253

$67

Year 5

$(854) -$697

Investor

Sponsor

$290

$77

Year 6

$330

$88

Year 7

$283

$75

Year 8

Year 9

Tax Credit Subsidy FTC price/ dollar TC

Tax Credit Benefit of Baltimore City $

Appicable Basis-HTC (estimate of TDC) Federal HTC % NMTC % Appicable Basis-NMTC (estimate of TDC)

0.85 95% 20% 39% 43%

TDC of the A Applicable Basis FHTC QEI of FHTC

$ $ $ $

11,008,117 10,457,712 2,150,108 1,827,592

TDC Applicable Basis NMTC QEI of NMTC

$ $ $ $

26,430,420 11,243,761 4,385,067 3,727,307

7.25% $ 2.00% $ $

270,230 74,546 3,382,531

Sub-allocation Fees CDE Committee Fee Net of NMTC

Property Tax Benefit/ year 1-5 Current Assessment Hard Costs Assessment Factor Incremental Assessment Property Tax Rate (BC) Property Tax Benefit New Job Tax Benefits Retail Jobs Temp Residential Job Temp Retail Jobs FT Residential Job FT Average Taxable Salary (Temp) Average Taxable Salary (FT) 75% City Residents City Payroll Tax Rate New Job Tax Benefits

$ $ $ $

$ $ $ $

1,319,366 18,424,740 80% 15,795,285 2.268% 358,237

40 30 40 20 15,000 25,000 1,912,500 3.05% 58,331

SUBSIDY & DEBT FLOW CHART BOA M&T Bank Wells Fargo Enterprise

BOA M&T Bank Wells Fargo Enterprise

Lender (Leverage)

Investor $$$

$$$

$$$

Investment Fund

NMTCs

$$$

NMTC (39%)

Fed HTC Investor

QEI

CDE Total Subsidy Equity

$5,210,123

A Loan

$$$

LLC (Land Owner+ investors)

B Loan

*GP

Fed HTCs (20%)

$$$

Developer 1% GP

99% LP

(*Runs/Manages) 25

Residential

Unit Mix The A

• Affordable units • 10% • Rent: 1b