Sassyk Real Estate Development has researched and reviewed the necessary information based on the client's provided criteria and have in good faith, provided the following:
1) Site Analysis - Based on site inspections and site research.
2) Regulatory Analysis - Based on research from different regulatory agencies.
3) Market Analysis - Based on research for local Demographics.
4) Financial Analysis - Based on projected Construction Costs of the Preliminary Design.
Based on these four main development criteria, Sassyk Real Estate Development is recommending a "GO" for the development of this project. The building site is highly visible and will accommodate a mixed-use development, which by conducting local interviews, is highly desirable. The lot chosen for this project - Lot 8 - is currently in foreclosure. The Unicorn Lake area is 85% completed, which makes this area highly desirable. The City of Denton has an "Open Mind" policy for mixed-use development. The local Rental Market has seen new Multifamily Development in the 76210 zip code area (Rent Rates average between $1.25-1.45/SF). Retail growth has been very strong in the Unicorn Lakes Development (Rent Rates average between $12.00- 20.00/SF). The Average Median Income (AMI) in the 76210 zip code area ranges between $89,000-91,000 per household. This income range supports this type of development. The Financial Analysis performed is based on the Preliminary Design and anticipates construction costs of approximately $275/SF. This is based on a Glass and Steel structure with adequate parking, paving, landscape and hardscape features. Year One return on investment - cash on cash flow (BTCF/Equity Investment) is projected to be approximately 24%. Lastly, the unseen aspect of the project from a social equity point of view: The local community is a vibrant, thriving mixed-use area that would welcome this type of development.
1) Site Analysis - Based on site inspections and site research.
2) Regulatory Analysis - Based on research from different regulatory agencies.
3) Market Analysis - Based on research for local Demographics.
4) Financial Analysis - Based on projected Construction Costs of the Preliminary Design.
Based on these four main development criteria, Sassyk Real Estate Development is recommending a "GO" for the development of this project. The building site is highly visible and will accommodate a mixed-use development, which by conducting local interviews, is highly desirable. The lot chosen for this project - Lot 8 - is currently in foreclosure. The Unicorn Lake area is 85% completed, which makes this area highly desirable. The City of Denton has an "Open Mind" policy for mixed-use development. The local Rental Market has seen new Multifamily Development in the 76210 zip code area (Rent Rates average between $1.25-1.45/SF). Retail growth has been very strong in the Unicorn Lakes Development (Rent Rates average between $12.00- 20.00/SF). The Average Median Income (AMI) in the 76210 zip code area ranges between $89,000-91,000 per household. This income range supports this type of development. The Financial Analysis performed is based on the Preliminary Design and anticipates construction costs of approximately $275/SF. This is based on a Glass and Steel structure with adequate parking, paving, landscape and hardscape features. Year One return on investment - cash on cash flow (BTCF/Equity Investment) is projected to be approximately 24%. Lastly, the unseen aspect of the project from a social equity point of view: The local community is a vibrant, thriving mixed-use area that would welcome this type of development.
You did a great job on this Richard. It is very meticulously constructed and seems very thorough. My only issue is on the actual blog format itself, in that you have to toggle between the "Newer Posts" and "Older Posts" to see the entire project. When you're logged in, and looking at your blog, click the "Design" link in the upper right hand corner of the screen. This will take you to your Dashboard, and along the left hand side of the page you will see a list of options. Click on the bottom option, "Settings", then choose "Posts and Comments" underneath it. The very first option on the page will now say "Show at Most" and will have a box for you to designate how many posts will show on your blog before you have to toggle to the next page. You can set this at a higher number (like 10 for instance) and click "Save Settings" in the upper right of the screen. It will all appear on one page from now on. But great project!
ReplyDeleteThanks for this tip Troy...greatly appreciated.
DeleteRichard
Very well put together and thought out. The division and detail of each section has an experienced touch.
ReplyDeleteIf you don't mind me asking, what do you currently do and what experience do you have with Real Estate?
What is the market in that area in relation to renting to year-round renters such as working professionals versus the seasonal-renters such as students? We are in close proximity to the Universities. I'm assuming this is why you accounted for a 15% Vacancy? I'm not sure the immediate areas vacancy rates.