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TOTS Development Company TOTS Development Company

TOTS Development Company - PowerPoint Presentation

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Uploaded On 2017-01-19

TOTS Development Company - PPT Presentation

Ashburn Crossing Loudoun County Virginia Joey Qi Janka Durisova Cheng Ji Doreen Liu Sherlock Zhou Zach Kayce Summary Statement Joint Venture TOTS Development amp ID: 511498

rate market study development market rate development study tots vacancy risk loudoun parkway amp 000 ashburn county silver return

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Slide1

TOTS Development Company

Ashburn

CrossingLoudoun County, Virginia

Joey QiJanka Durisova Cheng Ji Doreen Liu Sherlock Zhou Zach KayceSlide2

Summary

StatementJoint Venture

TOTS Development & St. John Properties200 units – Luxury garden-style multifamily project at the corner of Loudoun County Parkway and Gloucester Parkway in Ashburn,

VirginiaExpected return over 20%Slide3

LocationSlide4

The

Metrorail (Silver Line) will be extended into Loudoun County by 2018

Gloucester Parkway will be extended past the Redskins Park to connect with Route 28

Upcoming Silver Line

and

Gloucester P

ar

kw

a

y Extension Slide5

Market Study

– Ruled OutRetail - Fierce

competition from One LoudounOffice - High Vacancy Rate (16.9% - 19%)Flex/Industrial - High Vacancy Rate (14%)

Oversupply (400,000 SF under construction)Slide6

Market Study

DemographicsAccording to the 2010 Census:

Household Income Chart:Loudoun

County

Population

328,533 (2012 Estimate)

Median Household Income

$119,134 (#1 Ranked in USA)

Household Size

3.37

Potential RentersSlide7

Market Study

- VacancyAccording to Cassidy Turley Multifamily Snapshot – Fourth Q

tr. 2012 Apartment

rents grew at a controlled rate of 3.1% in 2012Vacancy Rate

DC Metropolitan

3.9%

Loudoun County

4.2%

Average

Asking Rents (Loudoun)

$1505Slide8

Market Study

- DemandExisting competitors:

Ashburn MeadowsParc Dulles ApartmentAshboroughSaddle Ridge

Village at Potomac FallsNo new construction in our immediate market

Ashburn Meadows

Saddle Ridge

Ashborough

Village at Potomac Falls

Parc

Dulles Apartment

Current Year

Year 5

Marginal Demand

259

475Slide9

Improvement – Budget

Total development cost $ 38,396,050Slide10

Improvement – Unit Mix

Improvements:Total GBA :

250,025 SFTotal Net Rentable: 200,000 SF

Total Units: 200 unitsAverage Unit Size: 1,000 SF

Unit Mix:

Slide11

Improvement – Details

Exterior: 1st F

loor – Concrete; 2nd & 3rd Floor – Wood

Brick & Wood FacadeInterior: High-end

interior

finishes

G

ranite

countertops, shaker inspired cabinetry, Italian porcelain

tile

s

,

chef kitchen sinks

,

A

frican

hickory

hardwood,

marble countertops in the

bathrooms

K

eyless

entry system to enter your apartment

home

Common Areas:

C

lubhouse

-

a study area/computer lounge, fitness center, pool, resident lounge

,

Wi-Fi

,

party

room

for

rentSlide12

Timeline

TimelineBegin: June 2013

Construction period: 24 monthsLease-up period: 12 monthsSlide13

Team

Development Team

Equity Partner

Architecture

Construction

Management

Company

Legal Consultant

Lender

Major

Participants

Project Manager

Lead Engineer

Sr. Financial Analyst

Lead Architect

Sr. Developer

Sr. DeveloperSlide14

St. Johns Contribution

$ 3,250,000

Return

IRR with Reversion

(2022)

= 20%Slide15

Sensitivity Analysis

Variables:

1- Market Rent2- Vacancy3- Cap Rate Slide16

Risk

Market Risk

Increases with potential oversupply of competitive properties with the Silver Line coming on boardInterest Rate Risk Interest rate increases resulting in higher Capitalization Rate

Inflation Risk Operating expenses inflate higher than rental ratesSlide17

Recommendation

JV with TOTS Development

10 acres at $3,250,0008 Pref – 55% Cash Flow Split – 45% Reversion Split

IRR 20% in 2022Slide18

Contact Information

TOTS Development1625 Massachusetts AvenueWashington, DC 20002(703)-203-1128

ashcrossing@tots.comSlide19

Questions & Comments

Slide20

Slides Reference1- Intro

2- Summary Statement3- Location4- Metro + Route 28 Ext.5-8 – Market Study9-11- Improvements12- Timeline13- Development Team14- Return15- Sensitivity Analysis16- Risk17- Recommendation