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Financial Considerations; Determining Developer’s ROI in Downtown Palmetto Bay

Financial Considerations; Determining Developer’s ROI in Downtown Palmetto Bay. Land Costs Land Market Value - $ 2,120,000 (based on values shown by Zillow) Potential Market Price Increase - $636,000 (based on 30%) Est. Land Cost - $2,756,000 Land Cost Per Unit - $13,500

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Financial Considerations; Determining Developer’s ROI in Downtown Palmetto Bay

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  1. Financial Considerations; Determining Developer’s ROI in Downtown Palmetto Bay • Land Costs • Land Market Value - $ 2,120,000 (based on values shown by Zillow) • Potential Market Price Increase - $636,000 (based on 30%) • Est. Land Cost - $2,756,000 • Land Cost Per Unit - $13,500 • Minimum No. of Units – 205 (2,756,000/13,500) 248k 220k 227k 239k 235k 236k 255k 236k 231k 227k 218k 248k 197k 196k 216k • Construction Costs • 2/2 Condo Builder’s Cost (875 SF) - $83,125 ($95/SF) • Open/ Common Spaces Premium - $17,000 (20%) • Parking garage - $35,000 (2 spaces/ $17,500 ea.) • Land Cost Per Unit - $13,500 • Soft Costs - $16,000 (overhead) • Impact/ Permitting Fees - $4,000 • Commissions - $5,600 (3%) • Total Developer Cost - $174,225 Per Unit 168 k 185 k 223 k 189 k 280k Target Selling Price $210,000 Per Unit (18.5% ROI)

  2. DRTFStudy AreaBoundaries North: SW 158th Street East: 97th Ave to SW 174 St 93rd Ave to SW 168th St 91st Ct to SW 158th St West US 1 southbound Ln South Eureka Drive N

  3. PROJECT PHASES Phase 1 Phase 2 N

  4. Other Factors of Importance • Residents • Services close to home • Green areas buffering single-family homes • Urban Parks • Public Plazas • Pedestrian-friendly design • Attractive roads and public right-of-ways • Protect residential neighborhoods • Businesses • Zoning regulations that allow for a viable ROI • Business Patronage • Combination of businesses & residences • Attractive Area • Attractive roads and public right-of-ways

  5. What Does Quality of Life Mean to You? Is it having choices for shopping close to home?

  6. What Does Quality of Life Mean to You? Is it green areas and open spaces?

  7. What Does Quality of Life Mean to You? Is it pedestrian-friendly neighborhoods?

  8. What Does Quality of Life Mean to You? Is it public plazas?

  9. What Does Quality of Life Mean to You? Is it having dining options in your own community?

  10. What Does Quality of Life Mean to You? Is it the attention to details in the public areas?

  11. What Does Quality of Life Mean to You? Is it the attractive streets and public right-of-ways?

  12. Let’s Talk About the “D” Word • Density is typically associated with ugliness, crowding, and congestion • If planned and designed properly, higher density can be attractive, bring people together, and save land, energy and dollars • Most people have difficulty estimating density from visual cues. • We tend to overestimate the density of poorly-planned developments and underestimate the density of well-designed, attractive projects.

  13. Components of a Well-Designed Urban Project • Frequency of Entries • Building Articulation • Setbacks & Recessed Buildings • Streetscape Design In retail areas, a high frequency of entriessupports and generates pedestrian activity. Building articulation is the varying building design elements that create interest. Building setbacks are the distance that buildings must be set-back from the property line.

  14. Which do you prefer? Downtown Palmetto Bay 2013 Mizner Park, FL Downtown Palmetto Bay 2013

  15. Which do you prefer? Santana Row, CA Downtown Palmetto Bay- 2013 Abacoa, FL Downtown Palmetto Bay- 2013

  16. Case Study- Mizner ParkImpact on Tax-Assessed Values in Downtown Boca Raton • 1991 - CRA purchases the 28.7-acre Boca Raton Mall site for $58 million; issues a long-term lease for mixed-use development on 12 acres and reserves the remainder for parks, plazas and civic uses. • Mall lifespan was 14 years; Mizner Park has been there for 23 years and it’s still successful • Project stimulated development for the entire downtown area; turned an area of 73 units with lower-than-market rate rent values to 689 units with the highest rental rates in all of South Florida. • This translated into a 14-fold increase in assessed property values in the area from 1990 to 2002

  17. DRTF Planning Workshop • Consensus for Phase 1: • Franjo Road as Main Street • Mixed-use District • Entertainment District • Office/ Residential District • Civic District • Parking Garages • Varying Heights

  18. DRTF Recommendations • Main Street & Downtown Districts • Franjo Road as Main Street • Mixed-use District • Entertainment District • Office/ Residential District • Medical District • Civic District Office/ Residential Medical District Main Street MU Residential- Multifamily Mixed-Use Civic/ Park Mixed-Use Mixed-Use Residential- Multifamily Entertainment

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