DEVELOPMENT ANALYSIS FOR A MIXED-USE TRANSIT ORIENTED DEVELOPMENT IN COLLEGE PARK, MARYLAND by Adam J. Morman Practicum Advisor: Mr. Coleman Rector A practicum thesis submitted to Johns Hopkins University in conformity with the requirements for the degree of Master of Science in Real Estate Baltimore, Maryland May, 2012 © 2012 Adam Morman All Rights Reserved Page | 1 JHU Practicum – Spring 2012 Adam J. Morman Page | 2 JHU Practicum – Spring 2012 Adam J. Morman WEST CAMPUS COMMONS A MIXED-USE DEVELOPMENT COLLEGE PARK, MD – PRINCE GEORGE’S COUNTY Presented by: Page | 3 JHU Practicum – Spring 2012 Adam J. Morman Table of Contents I. EXECUTIVE SUMMARY .......................................................................................................................................... 6 Investment Summary .................................................................................................................................................... 6 Borrowing Entity .............................................................................................................................................................. 7 Joint Venture Structure ................................................................................................................................................ 8 Market Opportunity ....................................................................................................................................................... 8 Financing Assumptions ................................................................................................................................................ 9 II. DEVELOPMENT PROGRAM ............................................................................................................................. 10 Design Considerations ................................................................................................................................................ 10 Overall Building Concept ...................................................................................................................................... 11 Proposed Retail .......................................................................................................................................................... 12 Proposed Hotel ........................................................................................................................................................... 12 Proposed Multi-Family Residential ................................................................................................................ 13 Proposed On-Site Amenities ............................................................................................................................... 14 Proposed Building Massing and Uses ................................................................................................................. 14 Comparative Development Master Plan Concept ........................................................................................ 16 III. SITE AND PROPERTY DESCRIPTION ........................................................................................................ 17 Property Overview ........................................................................................................................................................ 17 Review of Zoning and Master Plan ....................................................................................................................... 19 FAR Density Calculations ........................................................................................................................................... 21 Property Location and Vicinity .............................................................................................................................. 21 Local Attractions and Activities ............................................................................................................................. 22 Utility Analysis................................................................................................................................................................. 22 Land Use .............................................................................................................................................................................. 24 Development Regulations ......................................................................................................................................... 24 Site Access .......................................................................................................................................................................... 28 Transportation ................................................................................................................................................................ 28 Purple Line Metrorail and Station ........................................................................................................................ 30 Parking................................................................................................................................................................................. 33 Environmental Impact ................................................................................................................................................ 34 IV. MARKET ANALYSIS ............................................................................................................................................ 34 Demographics .................................................................................................................................................................. 34 Retail Outlook .................................................................................................................................................................. 35 Page | 4 JHU Practicum – Spring 2012 Adam J. Morman Hotel Outlook ................................................................................................................................................................... 37 Apartment Outlook ....................................................................................................................................................... 38 Adjacent and Nearby Projects ................................................................................................................................. 39 College Park Projects ................................................................................................................................................... 42 College Park Area Hotels ........................................................................................................................................... 42 College Park Area Apartments ............................................................................................................................... 43 College Park Area Retail ............................................................................................................................................. 44 V. CONSTRUCTION AND DEVELOPMENT COSTS ....................................................................................... 45 Construction Schedule ................................................................................................................................................ 46 VI. FINANCIAL ANALYSIS ....................................................................................................................................... 47 Revenue Projections .................................................................................................................................................... 47 Other Incomes .................................................................................................................................................................. 47 Discounted Cash Flow Analysis .............................................................................................................................. 48 VII. PROJECT MANAGEMENT PLAN .................................................................................................................... 51 Development Team ....................................................................................................................................................... 51 VIII. DEVELOPMENT CONCERNS ........................................................... Error! Bookmark not defined. IX. CONCLUSIONS AND RECOMMENDATIONS ............................................................................................ 55 X. Bibliography .............................................................................................................................................................. 56 Page | 5 JHU Practicum – Spring 2012 Adam J. Morman I. EXECUTIVE SUMMARY BlueJay Development is pleased to offer the following opportunity to acquire an ownership interest in West Campus Commons, a mixed-use project located to the southwest of and adjacent to the University of Maryland College Park. The intention is to assemble multiple parcels through the purchase from three separate land owners. Investment Summary Investment Summary Project Name: 3625 Campus Drive Location: College Park, Maryland Market / Submarket: Washington DC / College Park 17,700 SF Retail 75,000 SF Hotel (145 Keys) Development: 209,000 SF Apartments ( 200 Units) 150,000