• Unique rooftop access overlooking Ann Arbor and the Huron River THE VISION: Rooftop • Available for individual daily use or to rent for secluded parties Broadway Apartments • Will provide outdoor study space for those who desire it • Ten modern 2-bedroom units – Average price $1900/unit Second, Our team looks to develop the • The most-contemporary, quiet living space in the area ideal for any med student or young Third, & professional corner of Broadway and Moore in Fourth Floors • Luxurious space for roommates to share

Ann Arbor, with a • Deli/coffee shop that will open to the corner with outdoor seating First Floor • Four 2-bedroom units with direct sidewalk access 43,140-square foot mixed-use • A walkable, vibrant sidewalk for those leaving for work at 8 a.m., 8 p.m., or midnight building featuring 34 two-bedroom units, a coffee shop/deli, and a private residential gym in hopes of taking the first steps to revitalize the Lower Town area of Ann Arbor. 1019-31 Broadway Ann Arbor, MI 48105 Roberto D’Agord – M.S.E. Kyle O’Neill – M.B.A., M.A. Bryan Thompson – M.A. December 13, 2013 Architectural rendering by Manuel Martinez Background image courtesy of Google Maps THE VISION: Bring Yorktown to Ann Arbor

Dear Mr. Allen, Associates, and Stakeholders,

In the coming pages, our team will present you with a proposal for a new building, but even that is underselling what our plan is. What you saw on the cover page was not just a tease for a new edifice but the start of something new to turn Lower Town into a premier destination for all those who wish to reside in Ann Arbor.

If we were to tell you of a place that was flush with greenery, had walkable sidewalks through a hilly region that was enamored with rustic homes as diverse in design as the population it housed, one could quickly envision the Argo Park neighborhood as a quiet counterpart to Ann Arbor’s busy downtown scene. However, this description is that of the Yorktown within Arlington, Virginia. Anchored by the 114,200 Lee Harrison Shopping Center, that neighborhood has seen its property values gain over 45% since 2003 with its values continuing to rise.* Though separated from Arlington’s downtown, Yorktown has developed a sense of place along an otherwise unremarkable road in Lee Highway. One of our team members lived in this area for two years and saw the value that one corner development could have. A new apartment complex went up in that area for Fall 2013 leasing.

Enter Lower Town, Ann Arbor -- the neighborhood just south of the Argo district. Our vision is to take a small portion of the land within that area (1019-1031 Broadway) and, like a small match igniting something much larger, begin the much-needed development of an area underutilizing its direct access to the Medical School, Downtown Ann Arbor, and a healthy residential area just off the M-14, US-23 highways.

We are pleased to share this final product with you and hope you see the same potential in growth that we do.

Roberto D’Agord – M.S.E. Kyle O’Neill – M.B.A., M.A. Bryan Thompson – M.A.

*Courtesy of Zillow.com estimates. TABLE OF CONTENTS 1. Introduction - Kyle Green Features - Roberto 2. Ann Arbor - K 13. Construction Costs & 3. Lower Town -K Schedule - R 4. 1019-31 Broadway - K 14. Development Design - R 5. Power of 10 - Bryan 15. Floor Plan & Site Layout - 6. Power of 10 - B R 7. Stakeholder Analysis -K 16. Lighting & Livening the 8. Stakeholder Analysis - K Area - R 9. Target Audience - B 17. Financial Sensitivity 10. Comparable Areas - B Analysis - R 11. Addressing Threats - K 18. Pro Forma and Exit Plan - 12. LEED Certification & Team

Nestled just north of the Huron River and serving as a center point between the Argo Nature Area, the University of Michigan’s North Campus, its Medical Campus, and the popular residential/marketplace area known as Kerrytown, Lower Town remains one of Ann Arbor’s most under-utilized areas. The only main construction occurring in the region is parking structure designed to serve the Medical School.* There are only two apartment complexes in Lower Town within immediate walking distance to the Medical School. Numerous condominiums are for sale or for rent, depending on the owner. At the corner of Maiden Lane and Broadway, there is a 7-plus acre lot which is a potential source for development.** As we will go over in the following document, the property of 1019-1031 Broadway remains a great source of potential revenue as a mixed-used building to serve not only medical students but also the greater community in the 48105 zip code region.

*http://www.annarbor.com/news/wall-street-parking-structure-construction-details/ **http://www.annarbor.com/news/opinion/top-5-ann-arbor-development-sites-to-watch-for-activity-in-2013/ -Background image from Vimeo.com; aerial images from Google Maps A city defined on transformation, Ann Ann Arbor Michigan WHY ANN ARBOR Arbor seems to revolutionize itself with each changing of the season – each 2012 Population 116,121 9,883,360 dawning and setting of the sun. A community defined by its eclectic Population Change (2010 to 2012) 1.91% -0.002% diversity, it boasts events ranging from an annual Art Fair that engulfs the city with Foreign-Born 17.7% 6.0% ravenous experts and fans on all trade Persons (2007-11) skills to the contests hosted at Michigan Multi-Lingual Stadium, featuring the largest collection Homes (2007-11) 20.9% 9.0% of football aficionados anywhere in the H.S. Degree or MipsyMag.org United States during the fall. With the 96.5% 88.4% University of Michigan centrally located Higher (2007-11) in the city, Ann Arbor’s population will Bachelor’s Degree fluctuate around 40,000 people seasonally; or Higher (2007-11) 70.9% 25.3% the aura is that of a liberal, rustic college Median Household town, but all beliefs and views have found Income (2007-11) $53,377 $48,669 their place within the city’s borders. A vibrant downtown scene – as well as Median Value of $234,900 $137,300 cornerstone shops spread throughout the Housing Units city – have made this location a must-visit Total Non-Farming for any tourist in the Midwest and a viable Workforce 206,500 4,090,600 living area for a young professional, a Unemployment budding family, or an empty-nester. Rate (Sept. 2013) 5.6% 9.0% Wikipedia.com Ann Arbor provides its guests and % of Workforce in 6.4% 13.6% residents a variety of travel options. I-94 Manufacturing and US-23 intersect at the city, helping give Ann Arbor direct paths to Detroit, % of Workforce in Trade/Trans. 12.9% 18.1% Chicago, Ohio, and the northern part of the state. The city is serviced by its bus % of Workforce in system known as The Ride, and there is Education/Health 13.0% 15.7% an Amtrak Station located in the northern region of the city. Light-rail has been a % of Workforce in Bus./Prof. Services 12.9% 14.5% long-time rumor for the area to connect all districts to each other.* % of Workforce in Gov. / University 36.6% 14.9% *http://www.mlive.com/news/ann- umich.edu arbor/index.ssf/2013/10/four_possible_locations_identi.html Data from Census.gov and BLS.gov Background images courtesy of Kyle O’Neill WHY LOWER TOWN In 2008, then-Michigan Governor Jennifer Granholm was on hand for the groundbreaking ceremony for the $171 million project (see the image to the right) that was going to revolutionize one of Ann Arbor’s oldest, first-settled* neighborhoods in Lower Town.** What soon followed was the nation-wide, very-publicized housing market crash of 2008, and the project never got started after almost nine years of planning. Since then, Lower Town (namely that corner of Broadway and Maiden) has remained the “White Coat Ghetto”*** -- populated mostly by med students in apartment housing built 30-plus years ago (Medical Center Court and Island Drive Apartments).**** *http://arborwiki.org/Lower_Town **http://www.mlive.com/news/ann-arbor/index.ssf/2009/07/ann_arbor_development_broadway.html ***http://www.michigandaily.com/article/michigan-dailys-ann-arbor-housing-guide **** “Lower Town: Self-Contained Appraisal Report.” CB Richard Ellis. August 24, 2007. p 81. Courtesy of Strathmore Development Co. 48105 Demographics Total Population 33,905 Median Age 30.9 Population Between 20-24 Years Old 14.1% Population Between 25-29 Years Old 11.1% Population in Renter-Occupied Units 52.3% Rental Vacancy Rate 6.7% Data from Census.gov (2010) This is a region (see image to the left) which has been searching for an identity. Much like how Ann Arbor’s Kerrytown offers its empty-nesters, its student residents, and its businesses’ employees direct access to the downtown area and smaller shops within its borders, Lower Town is trying to define its niche quality. To help the above project regain momentum once again, it is proposed to build a new 34-unit apartment complex with a coffee shop attached to take advantage of the high demand in the area as well as a willingness to pay for premium living spaces.* This addition to the area would be the first apartment complex construction in Lower Town since 1975 and the first large residential construction of more than ten units since Nielsen Court Condominiums were built in 2001-02.** *“Lower Town: Self-Contained Appraisal Report.” CB Richard Ellis. August 24, 2007. p 65, 86. **http://www.piperpartners.com/nielsensquare.html Courtesy of ArborWiki.com Background Image Courtesy of AnnArborChronicle.com 1019-1031 BROADWAY In order to build the vision outlined in the first pages and that will be explained in detail in subsequent pages, we wish to acquire four properties of land in 1019, 1025, 1027, and 1031 Broadway. All three are zoned under C3, limiting development size to 200% FAR; parking restrictions will also impact what we can build. It is also our plan to give the current party store (white building, center image below) on 1027 to the owner of 1001-1015 Broadway and avoid demolition for that historic-looking building. This would keep one half of the block rustic and avoid any complications with the city in that demolition. Though the walk score is low, it is partially due to the fact not much has been developed in the area. It is believed that this project will take the first steps in redefining the region. This group also thinks the transit score is undervalued some given the proximity to multiple bus stops within walking distance, the roads Walk Score Transit Score Bike Score feeding into popular parts of Ann Arbor, and the Amtrak train 68 51 95 station within walking distance. Image and information courtesy of www.walkscore.com

Aside from the appeal of developing this area from an aesthetic point of view, this is an underutilized sidewalk. With no lighting nearby, it is also a dark spot after coming off a very well-lit bridge over the Huron River. This project would give medical students and any pedestrians a welcoming region to enter at any time of day.

All Photographs Courtesy of Kyle O’Neill BROADWAY APARTMENTS’ PLACES TO GO Nickels Arcade -- 1.2 miles from 1019 Broadway Nickels Arcade is a pedestrian walkway with a converted shopping district inside. The structure of the building is contemporary and 1 done in stone. The structure is completely covered with transparent glass that allows for natural sunlight to keep the walkway bright. Fixtures dangle from the high ceilings in order to provide lighting throughout the evening and night. If looking to get away from the busy scene of downtown and campus, Nickels Arcade provides the serene atmosphere you would desire.

Sculpture Plaza -- 0.7 miles This specific area gives pedestrians many different opportunities with store fronts and vendors within a stone’s 2 throw of the sidewalk “park.” The plaza features movable outdoor seating for pedestrians to sit and enjoy a meal or observe the movement of Downtown Ann Arbor. The main focus of Sculpture Plaza is the public art that is displayed for the pedestrians -- a true centerpiece to the multi-functional plaza. Image courtesy of http://devnet.aadl.org/city/Sculpture_Plaza_Park Ann Arbor Farmer’s Market -- 0.6 miles This open-aired venue, located in Kerrytown, provides residents and visitors an outdoor shopping experience and an alternative to 3 traditional grocery and retail shopping. Complete with on-site parking and direct walking access, the farmer’s market will offer consumers a potentially unique experience with each visit as vendors range from florists to artists to farmers themselves. You may even happen upon a wedding or other group function taking advantage of the Michigan sun.

Gallup Park -- 3.1 Miles This area serves as a complement to Argo Park, which is just 0.5 miles away from our apartments. Residents 4 of Ann Arbor will rent canoes and inner-tubes during the summer and will ride the Huron River from Argo down to Gallup. After about a five-hour journey basking in the warm air, residents will sit down at one of the many picnic areas at Gallup for a homemade meal before going home. Image courtesy of http://www.ewashtenaw.org/news/photo_contest/gallery_pages/30.html Michigan Theater -- 0.9 Miles A historic venue just on the edge of the University of Michigan’s central campus, the Michigan Theater is an entertainment venue 5 providing options for all ages and backgrounds. Live performances or movie screenings are the most-popular showings for this two- story building complete with a balcony for patrons. However, local companies will even rent out the theater for employee events. For more information, please visit www.michtheater.org.

Background image courtesy of AnnArborFarmersMarket.blogspot.com BROADWAY APARTMENTS’ PLACES TO GO Hands-On Museum -- 0.7 miles from 1019 Broadway Located near downtown Ann Arbor, the Hands-On Museum is a great attraction for visitors of all ages. Complete with a 6 total of 250 interactive exhibits, it offers visitors knowledge in three distinct areas: math, science and technology. Whether with kids of your own, with young relatives or friends, or just looking to recapture some youthful spirit, the Hands-On Museum is worth a number of trips during your time in Ann Arbor. Background image courtesy of TripAdvisor.com; information from http://www.aahom.org/ Casey’s Tavern -- 0.4 miles Casey’s Tavern features quick, delectable food within walking distance of Lower Town. Just on the other side of the Huron River, Casey’s gives 7 tourists and residents a hidden gem off the main path. Located on Depot Street across from the train station, there is never a bad reason to go to Casey’s, be it for dinner, socializing, or to watch a game on your own at the bar.

Gandy Dancer -- 0.4 miles Converted into a restaurant from an old railroad station, the Gandy Dancer is seen as one of the finest restaurants in all of Ann Arbor, regardless of 8 location. The diverse menu and welcoming atmosphere make this a great location, whether celebrating a great week at work or returning to Ann Arbor after a long stay away. There is even a sense of community, as every time a train passes, all the customers and servers clap to the fact the restaurant is still thriving. For whatever fun you may have downtown, the experience here will be unlike any other in Ann Arbor.

Kerrytown -- 0.4 miles A multi-purpose shopping district that is located in close proximity to the site, Kerrytown’s market and shops offer pedestrians retail and grocery 9 opportunities for all visitors and local residents -- and is within view of the famed Zingeman’s Deli. This two-story facility is a staple in a thriving neighborhood of Ann Arbor and is a great venue for citizens to visit and possess a distinct experience for all shopping. A strategically-placed common courtyard allows customers to sit and enjoy their recent purchases and take in the scenery. There is even office space that is being used by tech companies to date. South Main Street -- 1.0 miles One of the most thriving areas in Ann Arbor happens to be the primary entrance into the city itself. South Main Street is 10 always bustling with traffic from about 7 a.m. until venues close at 2 a.m. Featuring a mix of restaurants, retail, and loft living, it remains nearly impossible not to find something new to do with each visit -- if only because so many places warrant repeat trips, it becomes difficult to try new things. Background image courtesy of TripAdvisor.com; information from http://www.aahom.org/ Background image courtesy of AnnArborFarmersMarket.blogspot.com STAKEHOLDER ANALYSIS -- Pre-Development

• KOLI Enterprises, LLC -- The owner of the land plots to overwhelming desire to help get the development pushed the west of the proposed site, KOLI will need to take on along. With the downtown region and the potential the current party store building and put it on its land. If connector rail for the city still the focus of most work, any they do not, the Broadway Apartments planning will face a Lower Town improvements will likely have to be stimulated host of issues from the city regarding preserving the 1025 by the private sector. Considering this project will look to Broadway building, as it would otherwise be demolished. follow all zoning rules, the experience with City Hall should • Argo Park Residents -- Since this project will be staying be a seamless one. We will continue to work with our within the C3 zoning regulations, residents may show contact Jeffrey Kahan to ensure that we are meeting all interest but will not have much to exercise by way of coding needs and are producing something of use for the influence. If this project were a planned PUD site, residents community. could alter, if not end, plans with just a few comments. • Current Owners -- The present owners of 1019, 1025, • Neighboring Apartments -- Island Drive and Medical 1027, and 1031 Broadway do not have to sell their land and Center Court Apartments have been relatively unbothered could hang on to it. Not only does this plan have to “up- by competition for the past 30 years. Aside from a value” the surrounding area; it must show them the smattering of condos which are occasionally put up as advantage of selling now compared to hanging on to the rentals, Lower Town has remained an outdated living respective properties in hopes that development will occur experience for medical students. Introducing competition, elsewhere to increase the value. especially if successful, may redefine the area and force the Stakeholder Analysis -- Broadway Apartments incumbents to make drastic updates to their own buildings. • U-M Medical School -- While its students are the clientele Argo Park Residents this project will be designed for, the University of Michigan Neighboring Apartments Medical School has been the major developer in the region. KOLI Enterprises, LLC Controversial to some, the University’s right to acquire land Current Owners for its own use puts a project like this at some risk as if the Kellogg Eye Center or a separate department needs to U-M Medical School expand; land like the Broadway corridor or the neighboring, City of Ann Arbor unused 7-plus acres would likely be first on their list to aid 0 1 2 3 4 5 6 7 8 9 10 in expanding the reach of the ever-growing campus. Influence of Stakeholder Interest of Stakeholder • City of Ann Arbor -- Lower Town is a region that the city has had its eye on; yet there doesn’t seem to be an Background image courtesy of Panoramio.com. STAKEHOLDER ANALYSIS -- Post-Development

• KOLI Enterprises, LLC -- KOLI Enterprises, which • City of Ann Arbor -- At the end of the day, we want to owns the St. Vincent de Paul Store and the Northside Grill, increase land value, as if we do that, we will be able to sell at will be able to replace its one-story building for the latter a higher price. The unselfish side to that coin is that doing with the moved former-party store. They will have a 4- so will bring in more tax revenue for the city. Also, we want building unit that will compliment the new brick apartment to show the city that Lower Town has the same value to the building we are proposing. Our increased parking -- as well city that the downtown area does. Being able to finish this as our refurnished sidewalk -- will bring more residents to project will not only continue to make residents more happy the area via multiple modes of traffic. -- Gallup ranked us the fifth-happiest city in the nation in • Argo Park Area Residents -- As was seen in Yorktown, 2012; we believe we can get to No. 1 -- but it will show why Arlington, Virginia, adding new development can increase investors need to act now in making the unoccupied value of a property by considerable amounts; thirty-to-forty • Current Owners -- We plan to buy their respective percent can equate to hundreds of thousands of dollars. properties for $750,000. Though we are not planning to While this new apartment building may not have such an make them equity stakeholders, we are open to negotiations immediate impact, it can be a signal that development of its as when we look to acquire the land, our modest estimation type is worth investing in and may assist in restarting Lower of an unleveraged pre-tax IRR of 11.4% and our Year 5 Town’s primary project from 2008. After-Tax ROI of 11.66% would be enticing to them given • Neighboring Apartments -- At just 34 units, Broadway the stagnant nature of development in the region. Apartments will not dent the finances of Island Drive nor Stakeholder Analysis -- Broadway Apartments Medical Center Court much. However, the success of this project should indicate a higher demand to eliminate the Argo Park Residents “White Coat Ghetto.” In the long-term, both complexes Neighboring Apartments will be forced to update their respective facilities and will KOLI Enterprises, LLC help increase the value of the overall area. Current Owners • U-M Medical School -- The Medical School will have up to 68 residents/fellows who are going to work in a better U-M Medical School state of mind and who are able to have a living area they are City of Ann Arbor proud to reside in. They will be able to walk to and from 0 1 2 3 4 5 6 7 8 9 10 work and have a late-night coffee shop to call their own. We Influence of Stakeholder Interest of Stakeholder want to do our best to take care of all of those who are taking care of us. Background image courtesy of Panoramio.com. TARGET AUDIENCE Edyta Debowska; Clinical Subjects Coordinator -- U-M Health System Current resident of Island Drive Apartments since 2011 I would really like to see Lower Town with an additional apartment complex. The ones that are currently standing are very old. The closest coffee shop is in Kerrytown or on North Campus, which is still a bit of a walk. There are a lot of graduate students and young professionals living in Lower Town, so creating a atmosphere focused toward them would be delightful.

Ann Arbor Mayor John Hieftje delivered an unofficial “State of the City” to the Ann Arbor/Ypsilanti Chamber of Commerce in June 2013. In it, he addressed that Ann Arbor was succeeding financially and was primed for more growth. However, he saw an issue that he believed was worth addressing amid the success: “One of the gaps we’ve had in Ann Arbor for years and years is we have University of Michigan students who are here but then leave town, and then we have people 40 and over raising families … we need to attract young families and people who are starting their careers here in town.” Hieftje also stated that downtown development can only do so much, as just 40% of the land is available to be developed for future housing. Given that, and the mayor’s desire to remove future gridlock from the downtown area by attracting youth that prefers to walk and commute to work compared to drive, Broadway Apartments will be an ideal solution to some of Ann Arbor’s future issues. With our modern design, comfortable rooftop design, and amenities including an in-house coffee shop, a gym, and study space on the roof, we will have an area that is not only appealing to the younger demographic but allows them to succeed. With an average age of 30.1 in that region, Lower Town and its immediate surrounding areas boast an affluent population that will make excellent residents. Not including the other neighboring schools and colleges in the area, the University’s medical school has over 1,900 medical students and fellows who we would appeal to. Of the 22,000-plus U-M Health System Employees, we are confident we will find enough who will want to live at Broadway Apartments and have a simple, walkable journey to and from work and to and from their social life centered around Downtown Ann Arbor. We will be marketing to all schools and colleges, as many graduate programs -- including those in engineering, public health, nursing, art & design, kinesiology, etc. -- are all within reasonable commutes of Broadway Apartments.

Information from Freed, Ben. "Mayor says attracting young professionals key to continued economic growth." AnnArbor.com. MLive.com, 13 June 2013. Web. 1 Dec. 2013. . Data obtained from US Census and CBRE Commercial Real Estate Services. Background image courtesy of umich.edu. COMPARABLE PROPERTIES

Courtesy of McKinley.com Courtesy of IslandDriveApts.com Courtesy of CollegeRentals.com

Medical Center Court Apartments Island Drive Apartments Corner House Apartments Location: 1005 Maiden Lane, Ann Arbor, MI 48105 Location: 1099 Maiden Lane, Ann Arbor, MI 48105 Location: 205 S. State St. Ann Arbor, MI 48104 Number of Units: 201 Number of Units: 348 Number of Units: 56 Number of Stories: 3 Number of Stories: 3 Number of Stories: 7 Average Unit Size: 695 S.F. Average Unit Size: 696 S.F. Average Unit Size: 790 S.F. Average Rent: $740 ; $1.06 Per S.F. Average Rent: $875 ; $1.26 Per S.F. Average Rent: $2057 S.F. ; $2.65 Per S.F. $650 Studio Average: $720 Studio Average: $1,600 2BR $700 1BR 1 BA Average: $1,300 for 3BR Average: $2,573 3BR $800 2 BR 1 BA Units Vary: 1BR 1BA, 2BR 1 BA, 3BR 1.5BA Units vary from 2BR to 3 BR. All Units only have 1BA. Complex Amenities: Parking Garage, Central AC, Units Vary: 1 Bed 1 Bath, 2 BR and 1 BA Amenities: Complex Pool, Complex Fitness Center, Furnished Units. Amenities: Patios/Balconies, Study Lounge and Gym Laundry Facilities in Each Building Utilities include: Water, Sewer, Trash in Clubhouse, Onsite Laundry. Central Location to Campus: 2 Blocks from UofM Diag

Courtesy of avaloncommunities.com Avalon Arlington North In looking at the properties Location: 2105 North Glebe Road, Arlington, VA 2207 Number of Stories: 3 within Ann Arbor and in Average Unit Size/Rent: Yorktown (Arlington, 1BR -- $1,793/761 S.F.; $2.36 Per S.F. 2BR -- $2,938/1,341 S.F.; $2.19 Per S.F.* Virginia) -- the latter being 3BR -- $3,275/1,457 S.F.; $2.25 Per S.F. our end goal for all of *Some 2-bedroom apartments come with a den and throw off the averages some Lower Town -- we were able to determine comparable Units Vary: 1 - 5 bedrooms Amenities: Outdoor pool; game room; BBQ areas; kid rents of our own at zone; fitness center, pilates studio; business lounge $1900/mo. or $1.80/SF/mo. Information courtesy of CBRE. “LOWER TOWN: SEC of Broadway Avenue and Madison.” CBRE Commercial Real Estate Services. Aug. 24, 2007. and http://www.avaloncommunities.com/. 1019-1031 BROADWAY -- Addressing Threats With Placemaking Walking down Broadway at night is, at best, unappealing in its current state. The undeveloped lot at Maiden Lane and Broadway has a chain-link fence around it, and if not for the lighting glow from the bridge over the Huron River, the corner would be almost dark (see the image to the left). Such scenes hardly paint a picture of some place anyone wants to live. If not for the existing condominiums and apartment communities, the region would look abandoned at night, as none of the businesses in the area are open late into the evening. The existing apartment communities were built before modern developments in placemaking and do nothing to create functioning walking space.

Right now, the corner of proposed site is as close Medical students who live in the area currently have a to deserted as possible. There are nearby path to work and a path back. If they are looking for a apartment buildings and a residential area in the communal area to meet, Nielsen Square has an outdoor, area, but aside for when businesses are open from enclosed garden, but it does not offer any unique spaces. 7 a.m. - 6 p.m., that stretch of Broadway is in This project will create rooftop meeting space that will need of some kind of evening and night presence. Uses And be specific to the apartment community’s residents. It Inserting a well-lit, friendly building into the area Sociability will give the neighboring area a coffee shop open until 2 would keep individuals in their own area and not Activities having to go downtown for a lively scene. a.m. and will be a viable walking area to connect Kerrytown to Lower Town via the Broadway Bridge.

Though we have mentioned the issue of the Aside from the newly-constructed Kellogg Eye Center across low walk and transit score, there are simple the street and a number of local condominiums centered around Nielsen Square, the area around Broadway and accesses to M-14 as well as direct paths Access & Comfort Maiden Lane is very dated. Though there is something to be downtown. The nearby bus stations make it Linkages & Image said for repurposing historic buildings -- which our plan ideal for commuters, and the train station is would do for the west side of the lot and which Ann Arbor within walking distance for those looking for a has defined its downtown on -- there is too much of the direct route to Chicago -- with or without a 1019-1031 Broadway lot that needs to be revitalized from the ground up. We want our residents, primarily medical car. Light rail has long been rumored for the Data courtesy of Census.gov students, to live in a modern facility to ensure they enjoy the area, and it would help bring more residents to Train commuter information from AnnArbor.com top comforts possible while enduring one of the most- the area as well as make it more livable. Chart design courtesy of stressful educations out there. http://www.pps.org/reference/grplacefeat/ Background image courtesy of Google Maps LEED CERTIFICATION & GREEN FEATURES Green building has been credited in making a country like Haiti a safer place to live;* not that Ann Arbor has the same issues, but we too believe in its value to about any property in the area. Making Broadway Apartments LEED-certified would be an excellent way to add value to the original site which was already fully developed but with no green alternatives. This effect is multiplied by over 8,000 square feet of green roof, which provides various key benefits to both the property and the surrounding area, as listed below. Although there is a cost to this type of construction as well as obtaining the certification, the marketing benefits, rent premiums, and neighbor appeal and acceptance more than compensates for the additional cost. According to the preliminary certification checklist we have completed, shown to the right, we would be applying for LEED Gold Certification. We also have close contacts with a LEED Certified Professional which would be an integral part of the design process as well as speed up the certification.

*http://www.annarbor.com/business-review/ann-arbors-adaptive-building-solutions-to-help-launch-green-building-movement-in-haiti/ Green Roof • Reduced Greenhouse Gases • Reduced HVAC Costs • Reduced Storm-water Runoff • Storm-water Pollutant Filtration • Improved Quality of Life & Aesthetics • Extended Roof Life by 2-3 times Image courtesy of umd.edu. CONSTRUCTION COSTS & SCHEDULE

The project’s construction schedule, shown above, was produced using the critical path method. Using this, we can ensure that the activities on the critical path -- the activities on the triple line of which a delay would cause a stay in the total project completion -- are given particular attention and completed on time. The schedule shows a total duration of 68 weeks from the date of the Notice to Proceed to the date of completion. DEVELOPMENT DESIGN Architect: Manuel Martinez Dual Masters Candidate: • College of Engineering - - Civil Engineering • Taubman College School of Architecture • Proficient in Rhino, AutoCAD, Sketchup, CS5.5, Ecotec, Revit, Lightscape, Microsoft, Excel • Bilingual: English and Spanish • Over 8,000SF green roof facing the sunrise • Pantanal Partnership, University of Michigan • Over 3,000SF rooftop social area & • 37 parking spaces + 2 handicapped Student Organization garden path in the back • 1,500SF gym for residents – 2 reserved for energy-efficient cars (LEED) Ground floor deli / coffee shop • • Bicycle racks FLOOR PLAN & SITE LAYOUT 91% Floor Plan Efficiency

34 No. of 2B/2B Units

1,057 Average Unit Size (sq. ft.)

Ground Floor: 4 units, 1 coffee shop, residence lobby, gym, elevator access Development Area Distribution 6,000 Residential 4,000 Restaurants Gym 8,000 Lobby / Leasing Office Green Roof 1,015 Social Area 38,775 1,500 Parking Lot 1,850 Total Area: 61,140sqft Floors 2-4: 10 units each Total Floor Plan: 43,140 LIGHTING & LIVENING THE AREA

Though Lower Town has great potential, as it currently stands, there is not much lighting and the area is not very walkable, especially at night. This development will add much needed light, nighttime activity, pedestrian traffic, a nice ambiance with music and free wifi in the coffee shop, and an overall feeling of safety in the area. This will probably be a key meeting area for the whole neighboring community, regardless of the time of day. Though we are open and searching for the best option, at this point we have received interest from an old classmate, Lucas Kardonski, that opened a unique deli / coffee & tea specialty shop in Panama called Te Café. This concept is seemingly a perfect fit for Ann Arbor and is sure to bring something unique and quintessential to the area. Some images of the quaint locale, special events, and delicious food areshown in the pictures to the left. The idea is for this coffee shop to be open late night to serve particularly the neighboring college students and late-night medical center shifts.

Creating this walkable sidewalk during the night means that we are giving our residents something not found at nearby apartment complexes. Though this will be a quiet area, given the preferred graduate student tenant, it will be an area accessible at all hours of the day and night, allowing us to have rents which are more expensive than nearby and comparable locations. FINANCIAL SENSITIVITY ANALYSIS Below are the various calculations to produce the various sources of income, depreciation expense, and tax costs that are used in the pro forma. Also shown below are various sensitivity analyses. From these we see that the highest return on equity from before tax cash flow, as well as the highest IRR, is from a 75% Debt-to-Equity ratio. The IRR obtained from scenarios with varying key factors is also shown. This give a better understanding of how much safety net we have in our numbers. At our current estimates of about $8.73M initial capital investment, $1,900/unit/month rent ($1.80/SF/Mo.), and 6.0% cap rate at sale ($257.00/SF), there are many things that would have to go wrong to take our IRR of 19.2% down to low single digits or negative.

Total Rent Rent/SF Unit Units SF/Unit Total SF Unit Rent/Mo Per Year Per Month Per Year Per Month 2 Bed, 2 Bath 34 1,057 35,938 $1,900 $775,200 $64,600 $21.57 $1.80 Coffee Shop/Deli 1 1,850 1,850 $3,700 $44,400 $3,700 $24.00 $2.00 Rooftop rental ($250, 24 nights/yr) 24 $250 $6,000 $500 Gym rental to professional trainer (6 mo./yr) 1 1,592 1,592 $1,000 $6,000 $500 $3.77 $0.31 Parking spot rental ($100, mo./spot) 34 $100 $40,800 $3,400 Total Residential 34 35,938 $775,200 $64,600 $21.57 $1.80 Total Retail/Restaurant 1 1,850 $44,400 $3,700 $24.00 $2.00 Total Leasable space 35 37,788 $819,600 $68,300 $21.69 $1.81 Other Income $52,800 $4,400 Totals $872,400 $72,700 $23.09 $1.92 Cost and Revenue Assumptions $/ Sq Ft Financing Assumptions Key Figures Land $ 750,000 $19.85 Gross Development Area 43,140 Base Construction Costs $ 6,031,063 $159.60 Equity 25% $ 2,182,937 Net Leasable Area 37,788 Other Hard Costs $ 333,173 $8.82 Debt 75% $ 6,548,812 Avg Sq Ft/Unit 1,057.00 EXIT STRATEGY Soft Costs $ 1,237,430 $32.75 Total 100% $ 8,731,749 Avg Yearly Rent/Sq Ft $ 21.69 Upon the completion of our five-year Contingency $ 380,083 $10.06 Cost/Ft $ 231.07 Total $ 8,731,749 $231.07 Cost/Unit $ 249,478.54 plan, we will look to sell off Broadway Annual Monthly Gross Residential Revenues $ 775,200 Interest Rate 4.440% 0.370% Apartments in full for $11,073,183 with a Gross Retail Revenues $ 44,400 Amort Period 40 480 Expense/Unit $ 6,369 Gross Other Revenues $ 52,800 Payment 350,267 29,189 Expense/Foot $ 5.90 pre-tax IRR of 11.4%. While that is the most-logical path right now, we are aware Rental Increase Projections 3.00% 3.00% 3.00% 3.00% 3.00% Operating Expense Projections 2.00% 2.00% 2.00% 2.00% 2.00% of what we will be facing in the coming years. Should the Lower Town Projected Operating Revenues Monthly Year 1 Year 2 Year 3 Year 4 Year 5 development take off with the assumed Gross Scheduled Income $ 72,700 $ 872,400 $ 20.22 $ 898,572 $ 20.83 $ 925,529 $ 21.45 $ 953,295 $ 22.10 $ 981,894 $ 22.76 Vacancy Rate 6.7% 4,871 58,451 1.35 60,204 1.40 62,010 1.44 63,871 1.48 65,787 1.52 success of our property, there may be Gross Rental Income 67,829 813,949 18.87 838,368 19.43 863,519 20.02 889,424 20.62 916,107 21.24 Utility Reimbursement 2.0% 1,384 16,605 0.38 16,937 0.39 17,275 0.40 17,621 0.41 17,973 0.42 more benefit in either turning the five- Gross Income 69,213 830,554 19.25 855,304 19.83 880,794 20.42 907,045 21.03 934,080 21.65 year plan into seven, ten, or longer. There

Operating Expenses % of Gross Inc is also a chance our "exit" strategy may Repairs and Maintenance 4.0% 2,769 33,222 0.77 33,887 0.79 34,564 0.80 35,256 0.82 35,961 0.83 Property Management Fees 4.0% 2,769 33,222 0.77 33,887 0.79 34,564 0.80 35,256 0.82 35,961 0.83 become an "expansion" strategy, Advertising and Promotion 1.0% 692 8,306 0.19 8,472 0.20 8,641 0.20 8,814 0.20 8,990 0.21 complete with a historical renovation of Property Taxes 4.7% 6,533 78,400 1.82 82,320 1.91 86,436 2.00 90,758 2.10 95,296 2.21 Property Insurance 0.9% 623 7,475 0.17 7,624 0.18 7,777 0.18 7,933 0.18 8,091 0.19 the properties at Broadway 1001-1015. In Payroll 5.0% 3,461 41,528 0.96 42,358 0.98 43,205 1.00 44,070 1.02 44,951 1.04 Utilities 2.5% 1,730 20,756 0.48 21,171 0.49 21,594 0.50 22,026 0.51 22,467 0.52 that scenario, we could establish larger- Total Op. Exp. 26.8% 18,204 222,908 5.17 229,718 5.32 236,782 5.49 244,111 5.66 251,716 5.83 sized condos or lofts given the west Net Operating Income 73.2% 49,625 591,041 13.70 608,649 14.11 626,736 14.53 645,313 14.96 664,391 15.40 corner of the property Less Debt Service 29,189 350,267 8.12 350,267 8.12 350,267 8.12 350,267 8.12 350,267 8.12 We could also turn to condo sales as our Before Tax Cash Flow 20,436 240,774 5.58 258,382 5.99 276,469 6.41 295,046 6.84 314,124 7.28 2-bedroom apartments would make for Before Tax ROI 11.03% 11.84% 12.67% 13.52% 14.39% Plus Principal Reduction 5,060 60,726 1.41 63,477 1.47 66,354 1.54 69,361 1.61 72,504 1.68 great 1-bedroom/1-office Note: Interest on Loan 289,541 6.71 286,790 6.65 283,913 6.58 280,906 6.51 277,763 6.44 Less Dep. Exp. - Building (Yrs) 28.06 (18,012) (216,145) (5.01) (216,145) (5.01) (216,145) (5.01) (216,145) (5.01) (216,145) (5.01) condominiums. Given what Nielsen Taxable income 7,113 85,354 1.98 105,714 2.45 126,678 2.94 148,262 3.44 170,482 3.95 Taxes 35.0% 2,489 29,874 0.69 37,000 0.86 44,337 1.03 51,892 1.20 59,669 1.38 Square sells per square foot,* we would After Tax Cash Flow $ 17,575 $ 210,900 4.89 $ 221,382 5.13 $ 232,132 5.38 $ 243,155 5.64 $ 254,455 5.90 be able to ask for at least $220/SF given After Tax ROI 9.66% 10.14% 10.63% 11.14% 11.66% the amenities (gym and the rooftop), the Capitalized value at: 6.00% $ 9,850,683 $ 228 $ 10,144,155 $ 235 $ 10,445,606 $ 242 $ 10,755,220 $ 249 $ 11,073,183 $ 257 Remaining Mortgage $ 6,488,086 $ 150 $ 6,424,609 $ 149 $ 6,358,255 $ 147 $ 6,288,894 $ 146 $ 6,216,390 $ 144 ties to the Te Cafe, and the ability to walk the property at all hours of the day. In Tax on Property Sale Sale Price (Capped Year 6 NOI) $ 11,073,183 Returns this scenario, we would sell the condos Basis at end of year 5 4,950,336 (1,080,727) Unleveraged Pre-Tax IRR 11.4% for $7,187,600 and the rights to the Taxable Gain on Sale 6,122,847 $ 3,422,161 Leveraged Pre-Tax IRR 26.7% management fees for $1,280,000 (based Leveraged After-Tax IRR 19.2% Unrecaptured Section 1250 Gain 1,080,747 on a 6% cap and an average of $2,400/yr. Capital Gain 5,042,100 Cash Flow Summary in fees). This scenario would not Section 1250 Taxes 25.0% 270,187 Unlevered Lev Pre Tax Lev After Tax guarantee as much as the outright sale of Capital Gains Taxes 20.0% 1,008,420 Year 0 -8,731,749 -2,182,937 -2,182,937 Total Taxes upon Sale 1,278,607 Year 1 591,041 240,774 210,900 the property, and it would technically Year 2 608,649 258,382 221,382 Remaining Mortgage at end of year 5 (6,216,390) Year 3 626,736 276,469 232,132 remain an option but not one we would Year 4 645,313 295,046 243,155 actively pursue. After-Tax Gain on Sale $ 3,578,186 Year 5 11,737,574 5,170,917 3,832,641 ROBERTO A. D’AGORD

+1 (202) 679-3070 [email protected] 425 E. Washington St., Apt. 903A, Ann Arbor, MI-48104

EDUCATION University of Michigan Ann Arbor, MI Masters in Construction Engineering and Management May 2014 (Graduation)  GPA: 4.00 / 4.00  Abu Dhabi / Dubai, UAE business trip during winter break Boston College Boston, MA Bachelors in Physics & May 2011  GPA: 3.50 / 4.00  Rome, Italy summer abroad WORK EXPERIENCE Quality Services, Ltd. @ Freeport, Bahamas Project Management & Administration (FULL-TIME) Jan 2012-Jul 2013  Project Management: bidding, contracts, procurement, scheduling, QA/QC, invoicing, cost control, change orders, project meetings, client relations, some site supervision  Administration: human resources, legal cases management, accounting, marketing, business development, operations improvements, safety, I.T. Business Process Re-Engineering (INTERN) Jun-Aug 2011  Re-structured administration and project organization processes  Reduced inefficiencies through process optimization Operations Management (INTERN) Jun-Aug 2010  Assisted in the project management of projects in excess of $10 million  Developed safety performance indicators & reports

PROJECTS – During Full-Time Position Buckeye Partners, BORCO BFYF Expansion – Tank Painting ($4.5 million) Mar 2012-Aug 2013  Managed the project through bidding, contract review, planning, procurement, mobilization, variations, punch list, & completion Venture Analysis to Set Up a Rail Car Manufacturing Facility ($50 million/year) Feb-Jun 2013  Analyzed all factors: equipment/technology, labor, shop layout, efficient work flow, shipping  Researched processes, applicable fabrication codes (incl. DOT & AAR) and certification requirements  Created a budget per railcar & considered potential annual revenue and expense scenarios Buckeye Partners, Perth Amboy Terminal – East Yard Manifolds ($5 million) Dec 2012-Aug 2013  Involved since original venture analysis, bidding/ planning, quoting, & shop preparation  Assisted with the complete project management & cost control

ACTIVITIES  Member, Society of Hispanic Professional Engineers (SHPE)  Member, Steel Bridge Team, University of Michigan  Member, Club Soccer Team, at both University of Michigan & Boston College  Student Pilot (25+ flying hours)

SKILLS  Computer: Proficient in Microsoft Office, Primavera, Risa 3D, AutoCAD, SketchUp  Language: Fluent English & Spanish, conversational Italian  Citizenship: USA, Italy, & Panama  Traveled to Europe, South Africa, U.A.E., Central America, Caribbean, USA KYLE RYAN O’NEILL [email protected]/[email protected] 331 Rolling Meadows Drive 734-945-3675 Ann Arbor, MI 48103

Education University of Michigan—Ann Arbor, College of Literature, Science, & Arts Bachelor’s of Arts Degree in English; April 2005

University of Michigan—Ann Arbor, School of Kinesiology Master’s of Arts Degree in Sport Management; December 2011

University of Michigan—Ann Arbor, Ross School of Business Master’s of Business Administration; Expected Graduation: April 2015

Work Experience

University of Michigan Athletic Department October 2011-Present Admissions Liaison; Executive Assistant to Director of Academic Success Program & Assistant Provost • Act as liaison to the Office of Undergraduate Admissions and manage the recruiting information for 29 Division-I college athletics teams. • Prepare data as related to student-athlete performance and relate trends to relevant parties; compose reports when necessary for distribution to athletics leadership team. • Write reports shared with the deans of the University of Michigan and with external stakeholders of the Academic Success Program. • Manage the requests of Assistant Provost Phil Hughes.

University of Michigan Athletic Department October 2012 - Present Logistics and Facility Coordination (Team Member) -- Special Olympics • Planned facility usage and coordinated scheduling for the Special Olympics’ Polar Plunge hosted at • Provided day-of support to Polar Plunge event (expected participant in Feb. 2014)

University of Michigan Athletic Department September 2012 - Present Athletics Representative -- Emergency Operations Center • Served as liaison between athletics and emergency support staff (e.g. police, FBI, fire, ambulance, etc.) during all Michigan home football games

University of Michigan Athletic Department August 2010-September 2011 Student Assistant to the Director of Operations and Event Management • Organized data for and served as the contact point for the 750-plus event staff employees and helped run the 2011 new hires and event staff training meetings. • Ran the Wolverine Den -- the Olympic Sports’ recruiting event before football games. • Served as the customer service representative for Operations and Event Management. • Kept good working relationships with other facets of the athletic department

NBC Olympics/Universal Sports January 2008-April 2010 Web Producer/Editor • Streamed live events during the Beijing and Vancouver Olympics for NBCOlympics.com and during world championships for UniversalSports.com. • Accountable for presenting a quality product to appease our sponsors. • Required to succeed in making split-second decisions during 14-to-16-hour work days. • Trained new producers and helped supervise interns for the Beijing Olympics. • Delegated with managing most of NBCOlympics.com while with Universal Sports.

Detroit Free Press August 2007-December 2007 Assistant Online Sports Editor/Web Producer • Posted, edited, and wrote stories for freep.com/sports. • Improved headlines and formulated new ideas on how to increase web hits.

University of Michigan Athletic Department September 2000-August 2007 Facility Assistant/Student Temp • Maintained the high quality of Crisler Arena and Michigan Stadium. • Was responsible for seat numbering project at Michigan Stadium -- all refurbished bench seats in the “Big House” were numbered and measured to specifications.

Awards 30th Annual Sports Emmy Awards • Part of the winner for Outstanding New Approaches with NBCOlympics.com. Columbia Scholastic Press Association • Received Golden Crown recognition for 2004 column work with .

Skills Computer Knowledge • Worked with and became efficient in a variety of web publishing tools. • Has working knowledge of Microsoft Office, QuarkXpress, InDesign, Adobe Photoshop, and IBM SPSS Data Collection. • Owns a basic understanding of C++ coding.

Bryan K. Thompson 331 Rolling Meadow Dr. Ann Arbor, MI 48103 (856) 912-5160 [email protected]

EDUCATION

UNIVERSITY OF MICHIGAN – Ann Arbor, MI 2012 – Pres. Masters of Science in Sports Management from the School of Kinesiology Real Estate Certificate from Taubman College School of Architecture & Urban Planning

WEST VIRGINIA UNIVERSITY – Morgantown, WV 2008 - 2012 Bachelors of Science in Sports Management from College of Physical Activity & Sport Sciences Double Minor in Business Administration and Communications

HIGH SCHOOL EDUCATION SAINT JOSEPH’S PREPARATORY SCHOOL – Philadelphia, PA 2004 - 2008 Elected Student Council Secretary 2008 Student Journalist for The Nose & The Hawkeye 2008 Selected for Leadership Experience Conference at Villanova University 2007

WORK EXPERIENCE

Director of Research Analysis – Michigan Hall of Fame Sept. 2013 – Pres. Hired by the Michigan Hall of Fame committee to conduct research for a corporate facility relocation to downtown Detroit, Michigan.

Graduate Research Assistant – Ann Arbor. MI Sept. 2012 – Pres. Research Assistant for Dr. Mark S. Rosentraub The Bruce and Joan Bickner Endowed Professor of Sports Management Responsibilities Include: Assisting in Research for all Projects & Deals

University of Michigan Football – Ann Arbor, MI 2012 – June 2013 Intern for Associate Athletic Director Michael Vollmar Responsibilities: Assisted in the Day-to-Day Operations and Off – Season Recruiting

Nate Smith Basketball School LLC – Morgantown, WV May - August 2011 Intern: Public Relations, Marketing & Fundraising Responsibilities Include: Creating Social Media Presence for Basketball School; Organizing Golf Tournament Fundraiser

West Virginia University Athletic Department - Morgantown, WV May- August 2011 Intern for Associate Athletic Director Terri Howes Responsibilities Include: Creating comprehensive Database for WVU Athletic Hall of Fame; Database will enable 12-person HOF Committee to readily access and identify.

MANUEL MARTINEZ 4354 52nd St. Detroit, MI 48210 [email protected] 313.717.1282

EDUCATION UNIVERSITY OF MICHIGAN Ann Arbor, MI Dual Masters Program: College of Engineering Masters of Civil Engineering Construction Management Taubman College School of Architecture Master of Architecture  Dual Masters Cumulative GPA to Date 3.70/4.00  Alfred Taubman Scholar Bachelor of Science in Architecture, April 2012  Cumulative GPA 3.09/4.00 EXPERIENCE NATIONAL ORGANIZATION FOR MINORITY ARCHITECTURE STUDENTS (N.O.M.A.S.) Sept. 2009 - President Ann Arbor, MI Present  Cosponsored Francis D.K. Ching lecture event, attracting audience of approximately 500 students, faculty, staff, and professional architects  Implemented targeted recruitment and advertising efforts to expand brand awareness and membership, ultimately increasing membership from 2 to 15 students  Teach 30 Advanced Placement high school students about architecture field and how to design with meaning in weekly sessions, facilitating interest and skills development  Served as Public Chair to design event flyers, posters, and N.O.M.A.S. competition board

July 2010 - TNT Contracting Detroit, MI Present Project Manager apprentice/ On-site  Conducted a Schedule for projects which involved excavation, form work, and curing.  Managed the cost for several projects, in which all were under budget and on time.  Collaborated with overhead to analyze cost for material deliveries and labor work wages.  Designed the floor plans, which was signed off by a licensed architect and lowered the cost by $7,000 for a small residential project.  Diagrammed and verbally explained the process and goals of each work day (while being supervised) so that everyone understands the deliverables and priorities of that days’ work.  Manager appointed to join him in meetings with several clients for small projects to discuss scheduling and project cost.

Summers - SAL'S FINEST PAINTING Detroit, MI 2008 – 2012 Apprentice - Part time  Renovated and repurposed existing sites at a small scale, including painting, flooring, wall panels, material selections and insulation  Performed material and cost estimates based on site measurements  Rendered models to assist owners with decision making on site design and materials  Hands on labor to understand the development and installation methods.  Renovated homes throughout the state, focused on keeping project cost under budget while maintaining quality work ADDITIONAL  Proficient in Rhino, AutoCAD, Sketchup, CS5.5, Ecotec, Revit, Lightscape, Microsoft, Excel  Bilingual: English and Spanish  Pantanal Partnership, University of Michigan Student Organization  Participant and Designer, Latino Culture Show, April 2010  Member and Lead Designer, UofM Student Activities & Leadership Summer Camp, June