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
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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