PPD 499 Midterm

Daily Needs Component; 30-100,000 GLA, Supermarket, geographic location most important factor

Freestanding Building w/ parking lot and one tenant

Other than a department store, but clothing

At least one Department store; 300-800,000 GLA

3 or more department stores, 600k GLA+

No large stores, highly branded national tenants, out door, design-oriented, spend time there

Identify who your customer is and what characteristics are.  Attempts to match location, size, and compostion of center to needs of trade area

How fast you lease a space

Group of people with similar buying patterns

• 1. Demographics and pychograpics
• 2. Identify Trade Area
• 3. Compar with Competition

• 10-15000 people
• 5-10 min drive time
• 1.5 mile radius

• 40-150,000
• 8-10 min drive time
• 30 mile radius

• 1. Tenant Mix
• 2. Size
• 3. Rents
• 4. Occupancy Costs
• 5. Parking ration

• Retail: 5
• Restaurants: 10

• 1. Size and Shape
• 2. Access
• 3. Topography
• 4. Utilities
• 5. Zoning

1 acre land for 9-10,000 sq ft of retail

• 1. Zoning
• 2. General Plan
• 3. Building Codes
• 5. National Codes
• 6. Flood Zone
• 7. National Regluations
• 8. Traffic
• 9. Design Paraments
• 10. Water Quality

• 1. Land Planner
• 2. Structure Enighers, Archtiect, MPE
• 3. Traffic Enginners
• 4. Civil Enginners
• 5. Legal
• 6. Planning

• 1. Horizontal Control
• 2. Gradining
• 3. Hydrology
• 4. water Quality

• 1. Direct Costs
• 2. Contingency
• 3. INdirect Costs\
• 4. Financing
• 5. Operating

Brick and Mortor

Builidng, TI, Builiding Shel, land preparation, offsite, FFE( Fixtures, furniture, equipment payed by tenants)

Lighting, celine AC

• Design and Enginnering
• Impact Fee
• Permits
• School Fee
• Insurance
• Marketing

• Construction Loans
• Legal
• Financing Costs
• Lease-up Reserves

What developers pays while center is being leased up

• Non Recoverable Expenses
• Re-leasing costss

Debt Service Coverag eRatio

Loan to Value

Loan to Costs

Banks take lowests of Three

IRR(Yr0-->YrEnd)

No corporate income tax

limiated partners

general partner has personal liability (can place liablity on corporation)

Investors pay taxes , not the REIT corp

• 1. Info on Developer, Consultants, (bios)
• 2. Personal Balance Sheet
• 3. Demographic/market analysis
• 4. Anchors
• 5. Pro-forma
• 6. leasing Plan
• 7. Entitlments
• 8. Construction Costs
• 9. Marketing and Leasing Plan
• 10. Exit Strategy

Interest only; short period during constuction; often recourse

amortizing

Rents -Leasing commission and occ. costs

Extra charges upon tenatns such as CAM, property tax, and insurance

indication of current market conditions for avaliablity of captial and project's perceive price apprecation

Costs incurrend before constuction. Most at-risk expenidture because amde before project is approved by government and before lender/ investor fund constuction

Geographic area containing people who are likely to purchase class of goods

100-400k GLA,  neighborhood center plus funiture, building goods

Costco, Walmart

Open-ari, with public space, streetfront retail on at least two pedestrian streets

open air

• renovating over building new malls
• incorporating non retail uses
• focal point of community

People will travel to the largest shopping center most easily reached, assuming same goods offered

• 1. Placement of tenatns
• 2. building depths
• 3. tenant mix
• 4. pricing
• 5. rent schedules
• 6. tenant finshies
• 7. lease form

Property Tax and Insurace

• ltv: 60-80%
• ltc: 65-80%