A Mixed-Use Development Proposal
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Brigham Young University BYU ScholarsArchive Undergraduate Honors Theses 2020-03-18 Stadium Apartments: A Mixed-Use Development Proposal Connor Lee Wen Follow this and additional works at: https://scholarsarchive.byu.edu/studentpub_uht BYU ScholarsArchive Citation Lee Wen, Connor, "Stadium Apartments: A Mixed-Use Development Proposal" (2020). Undergraduate Honors Theses. 123. https://scholarsarchive.byu.edu/studentpub_uht/123 This Honors Thesis is brought to you for free and open access by BYU ScholarsArchive. It has been accepted for inclusion in Undergraduate Honors Theses by an authorized administrator of BYU ScholarsArchive. For more information, please contact [email protected], [email protected]. Honors Thesis STADIUM APARTMENTS: A MIXED-USE DEVELOPMENT PROPOSAL by Connor Lee Wen Submitted to Brigham Young University in partial fulfillment of graduation requirements for University Honors Economics Department Brigham Young University April 2020 ii ABSTRACT STADIUM APARTMENTS: A MIXED-USE DEVELOPMENT PROPOSAL Connor Lee Wen Economics Department Bachelor of Science Stadium Apartments is a proposed class-A mixed-use development located on 4.3 acres of land at 88 W 1300 S, Salt Lake City UT. The single parcel is currently owned by Salt Lake City and is being operated as a parking lot. Salt Lake City hopes to develop the parcel in order to provide stable income to maintain the Smith’s Ballpark across the street. A detailed market and financial feasibility analysis has determined that a development consisting of 448 dwelling units (319,176 rentable square feet) and 3,750 square feet of retail space will both meet the goals of the city and provide solid returns for a developer. The development will achieve a 3 FAR from 563,061 gross buildable square feet spread over six stories of construction. A 1.26 spaces per unit effective parking ratio will complement the proximity of the Ballpark TRAX station and 1300 South’s I-15 entrance ramp, allowing residents easy access to downtown and other parts of the Salt Lake Valley. iii iv ACKNOWLEDGEMENTS I would like thank Dr. Michael Ransom, my faculty advisor; Dr. Barrett Slade, my faculty reader; Dr. John Stovall, my honors coordinator; as well as Steven Bond and James Doolin, my industry readers, for their patience, trust, advice, and assistance throughout this process. I would also like thank Danny Walz, Corinne Piazza, and Corey Rushton from Salt Lake City Corporation for allowing me to use their site as a subject property. I would like to thank Richard Bird and Steve Lowell from The Yellowstone Group for their insight into the quality of my model and providing loan quotes and construction comparables. I would also like to thank Vika Filimoeatu and the staff from the Brigham Young University Honors Program for giving me the opportunity to conduct this creative thesis despite it not being directly related to my major or minor. Finally, I would like to thank my family and all those who have supported and helped me along my journey in commercial real estate. I dedicate this project to you. v vi TABLE OF CONTENTS Title …………………………………………………………………………...….………. i Abstract …………………………………...…………………………………………….. iii Acknowledgements …………………...…………………………………………...…….. v Table of Contents …………………………………………………………………….…. vii List of Tables and Figures ……………………………………………………………...... ix I. Executive Summary …………………………………………………..………….. 1 II. Site Overview ………………………………………………………….……...…. 1 III. Location Analysis ……………………………………………………………...… 3 IV. Apartment Market Analysis …………………………………………………….. 23 V. Retail Market Analysis …………………………………………………………. 34 VI. Development Potential and Site Plan …………………………………………… 40 VII. Financial Analysis ……………………………………………………………… 47 VIII. Risks and Challenges …………………………………………………………… 56 IX. Conclusion ……………………………………………………………………… 58 Works Cited …………………………………………………………………………….. 59 Appendix A: Comparables and Unit Mix ……………………………………………….. 63 Appendix B: Financial Calculations ……………………………………………………. 67 Appendix C: Site Plan …………………………………………………………………... 91 Appendix D: Annual Cash Flow ……………………………………………………… 95 Appendix E: Summary ………………………………………………………………….. 97 vii viii LIST OF TABLES AND FIGURES Table 1: Commute Times.................................................................................................... 6 Table 2: Population By Race (CoStar).............................................................................. 22 Table 3: C9 Flats Unit Mix (CoStar) ................................................................................ 28 Table 4: The Ritz Classic Unit Mix (CoStar) ................................................................... 29 Table 5: TenFifteen Apartments Unit Mix (CoStar) ......................................................... 31 Table 6: Towers on Main Unit Mix (CoStar) ................................................................... 32 Table 7: Park Vue Unit Mix (CoStar) ............................................................................... 34 Table 8: Retail Comparables ............................................................................................. 36 Table 9: FAR Comps ........................................................................................................ 42 Table 10: Lot and Building Breakdown............................................................................ 44 Table 11: Space Breakdown ............................................................................................. 44 Table 12: Parking Breakdown .......................................................................................... 45 Table 13: Unit Mix............................................................................................................ 46 Table 14: Development Timeline ..................................................................................... 46 Table 15: Land Comparables ............................................................................................ 48 Table 16: Land Valuation ................................................................................................. 49 Table 17: Tax Calculator .................................................................................................. 49 Table 18: 2018 Development Cost Comparables ............................................................. 50 Table 19: Permit & Impact Fees ....................................................................................... 52 Table 20: IRR Waterfall.................................................................................................... 53 ix Table 21: Vacancy Sensitivity .......................................................................................... 55 Table 22: Exit Cap Sensitivity .......................................................................................... 55 Table 23: Income Growth Sensitivity ............................................................................... 56 Table 24: Expense Growth Sensitivity ............................................................................. 56 Figure 1: Site Overview (Google Maps) ............................................................................. 2 Figure 2: Site Photo (Connor Lee Wen) ............................................................................. 2 Figure 3: Distance to Ballpark Station (Google Maps) ...................................................... 6 Figure 4: Adjacent Site 1 (Google Maps) ........................................................................... 7 Figure 5: Adjacent Site 2 (Google Maps) ........................................................................... 8 Figure 6: Adjacent Site 3 (Salt Lake County Assessor) ..................................................... 8 Figure 7: Adjacent Property 4 (Google Maps) ................................................................... 9 Figure 8: Adjacent Property 5 (Google Maps) ................................................................. 10 Figure 9: Adjacent Property 6 (Google Maps) ................................................................. 10 Figure 10: Adjacent Property 7 (Google Maps) ............................................................... 11 Figure 11: Adjacent Property 8 (Google Maps) ............................................................... 12 Figure 12: Adjacent Property 9 (Google Maps) ............................................................... 12 Figure 13: Adjacent Property 9, Aerial (Google Earth) .................................................... 13 Figure 14: C9 Flats (CW Urban) ...................................................................................... 14 Figure 15: Sears Warehouse (Salt Lake County Assessor) .............................................. 15 Figure 16: Central Community Master Plan (Salt Lake City) .......................................... 16 Figure 17: States with Strongest Job Growth (Gardner Institute)..................................... 18 Figure 18: Utah Components of Population Change (Gardner Institute) ......................... 18 x Figure 19: Utah Value of New Construction (Gardner Institute) ..................................... 19 Figure 20: Demographic Radius Rings (CoStar) .............................................................. 20 Figure 21: Population & Education, 1 mile (CoStar) ....................................................... 21 Figure 22: Asking Rents (IRR) ......................................................................................... 24 Figure 23: Rent Comp