03/6/08

Lecture:

1. Market research in the real estate development process
   
   1. Inception of an idea
      
   2. Refinement
      
   3. Feasibility
      
   4. Contract negotiation
      
   5. Formal commitment
      
   6. Construction
      
   7. Completion of formal opening
      
   8. Property, asset, and portfolio management
      
2. Developers downtown
   
   1. DB Harrell
      
3. Assignment due next week
   
   1. Notebook
      
      1. Site analysis
         
      2. Market analysis
         
      3. Profile immediate competition in primary market area
         
4. Back of the envelope Pro Forma
   
   1. Identify he tenant audience
      
   2. Estimate rental income per sq. ft.
      
   3. Estimate operating expenses per sq. ft
      
   4. Multiply leasable sq. ft. by project revenue
      
   5. Subtract operating expenses
      
   6. Multiply (NOI) by 10 = economic value
      
5. Actual development expense
   
   1. Land costs
      
   2. Site development costs
      
   3. Construction costs
      
6. Strategic decision making and market research
   
   1. Formulating goals
      
   2. Determining courses of action
      
   3. Consideration of talent and money available
      
7. Generating ideas
   
   1. Brainstorming and hitchhiking
      
   2. Nominal group technique
      
   3. Delphi method
      
   4. Environmental scanning
      
   5. Focus groups
      
   6. Surveys
      
8. Risk control
   
9. Competitive apartment communities in the market area
   
   1. SEE EXCEL FILE
      
10. Growth in major shopping center space, san antonio, TX Market, 1960 - 1992
    
    1. Typical shopping center anchors by type of center
       
11. Market research
    
    1. A tool for generating ideas
       
12. Market definition
    
    1. If you build it they will come
       
13. Kotler
    
    1. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with each other
       
    2. If people have a choice among products, their choice will usually be guided by their notion of value and their expectation of satisfaction
       
    3. A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. The size of the market depends on how many people share the need or want, have resources that interest others, and are willing and able to offer those resources in exchange for what they want.
       
14. Quiz - chapter - Inception of an idea
    
15. The four P's
    
    1. Product - property type
       
    2. Place - projects location
       
    3. Price - finish out, etc
       
    4. Promotion
       
16. The marketing concept: serving the potential customer
    
17. Site
    
    1. 15' back from sidewalk
       
    2. Floor by floor analysis
       
    3. Types of development
       

     
     

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03/11/08

Lecture:

1. Refinement of the idea
   
   1. Objectives of stage two
      
   2. Finding the right site
      
      1. Land can represent 10 to 30+% of total project costs
         
      2. Location is crucial
         
      3. Control of the site
         
         1. Option to buy - money is placed to secure the site, and development continues. Money is lost if development does not proceed.
            
      4. Refinement of idea
         
         1. Market research
            
         2. Site selection
            
         3. Negotiation with players
            
         4. Project specifications
            
            1. Prelim. Project design
               
            2. Determine feasibility
               
   3. Urban growth patterns
      
      1. Concentric zone theory
         
         1. E.W. Burgess
            
         2. Axial theory
            
         3. Sector theory
            
            1. Homer Hoyt
               
         4. Multiple Nuclei Model
            
            1. Chauncy Harris and Edward Ullman
               
   4. Factors in site selection (page 279)
      
      1. Zoning
         
      2. Physical features
         
      3. Utilities
         
      4. Transportation
         
      5. Parking
         
      6. Environmental impact
         
      7. Government services
         
      8. Local attitudes
         
      9. Price of the land
         
      10. Demand and supply
          
   5. Discussing the project with other players
      
      1. Contractors
         
      2. Tenants
         
      3. Property managers
         
      4. Lenders
         
      5. Investors
         
      6. Public
         
   6. Market segmentation
      
      1. Defin the market niche and reduce risk
         
      2. Housing
         
      3. Retail/commercial
         
      4. Office
         
      5. industrial
         
   7. Risk control
      
      1. Option agreements
         
   8. Impact of interest rates
      
      1. 108+ million households in the U.S.
         
      2. 68% homeowners - over 70 million
         
      3. Until recently we have been buying/selling 7 million+ homes a year
         
   9. Trends
      
      1. Increasing large share of the housing market
         
      2. More sophisticated renters that are mobile
         
      3. Trend towards larger complexes
         
         1. Maximum efficiency in management and development costs
            
         2. Amenities - swimming pools, tennis courts, recreation room, sauna baths
            
   10. Feasibility
       
   11. Location
       
   12. Site
       
       1. Adequate in size and configuration to accommodate improvements without overcrowding
          
       2. 1 -2 parking spaces
          
   13. Soundproofing
       
   14. Room arrangement
       
       1. Functional with zones of living, utility, and sleeping
          
   15. Apartment sizes
       
       1. Vary depending on local competition
          
       2. One bedroom units 550 to 600+ SF
          
       3. Two bedroom units 750 to 800+ SF
          
       4. Three bedroom units 900+ SF
          
       5. Circulation usually 10%
          
   16. Sources of income
       
       1. Primary
          
          1. Individual tenant rentals
             
       2. Secondary
          
          1. Laundromats
             
          2. Retail and service shops if part of the apartment complex
             
   17. Vacancy
       
       1. In a very favorable market 5% is usually applied to cover continuing turnover vacancy and collection losses
          
       2. 10% - 15% applies to student or seasonal type units
          
   18. Expenses
       
       1. Includes minimal replacement reserves
          
       2. Varies considerably depending on local factors - taxes
          
       3. Base figure of 20% to 25% of adjusted gross income (excluding taxes)
          
       4. Real estate taxes can range from 5% to 30% (15% average)
          
       5. Utilities
          

        
        

    
    

    
    

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03/25/08

Lecture:

1. Parking
   
   1. Isometric drawing showing floor by floor parking and limits of site
      
   2. Show intended use of site
      
2. The vistana
   
   1. 14 stories 530,000 sf
      
   2. 246 rental apartments
      
   3. 30,000 sf of retail space
      
   4. Parking garage - 4 levels
      
3. Parking ratios
   
   1. Retail 3-5 spaces/1,000 sf
      
   2. Restaurant - 10 to 20 spaces/1,000 sf
      
   3. Office - 2.8 to 6 spaces/1000 sf (typically 4)
      
   4. Residential - 1 to 3 spaces/unit
      
4. Smart code
   
   1. Shared parking
      
   2. Drastically reduce then abolish all minimum parking requirements
      
   3. Park once
      
   4. Manage on-street parking
      
   5. Provide shared garages and alternative transportation
      

       
       

5. (subdivision at frio and guadalupe)
   

    
    

    
    

    
    

    
    

    
    

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03/27/08

Lecture:

1. Chapt. 13 & 14 - read for next week (4/1/08)
   
2. Tuesday - show up with project on grid paper, floor by floor and what we intend to do.
   
3. The roles of the public sector
   
   1. Public sector as regulator
      
      1. Health, safety and welfare of the public
         
      2. Comprehensive plans
         
      3. Zoning ordinances (UDC)
         
      4. Permits for construction and occupancy
         
      5. Police power of cities
         
   2. Historic events
      
      1. New york tenement house act of 1901
         
      2. New york adopts a zoning ordinance in 1916
         
   3. Issues
      
      1. Conflicting land uses
         
      2. Public health and welfare
         
      3. Growth boundaries around urban areas
         
      4. Growth management techniques
         
      5. Constituents
         
         1. Citizens, environmentalists, business
            
         2. Quality of life advocates, NIMBYists
            
   4. Community control mechanisms
      
      1. Local and regional master plans
         
      2. Zoning ordinances
         
      3. Planning and subdivision requirements
         
      4. Site plan review requirements
         
      5. Water, sewage, and waste disposal requirements
         
      6. Historic district requirements
         
   5. Legal foundation and issues in public regulations
      
      1. Courts interpretation of health, safety, and general welfare
         
      2. Individual private property rights
         
      3. Restrictiveness of regulations
         
      4. Taking of private property
         
   6. Important land use cases
      
      1. Village of Euclid, Ohio v. Amber Realty (1926) upheld zoning
         
      2. Golden v. Planning Board of Town of Rampo - (1972) availability of adequate public facilities
         
      3. Southern Burlington County NAACP v. Mt. Laurel Township - (1975) fair share of lower cost housing
         
   7. Techniques for managing growth
      
      1. Urban growth boundary
         
      2. Urban service limit
         
      3. Designated development area
         
      4. Adequate facilities ordinance
         
      5. Extraterritorial jurisdictions
         
      6. Affordable housing allocation
         
      7. Growth limit
         
      8. Growth moratorium
         
      9. Point system
         
   8. Zoning
      
      1. A means of land use control exercised by governments to regulate the use and development of sites and buildings within designated districts…..AIA
         
      2. Control growth and development in an organized manner
         
   9. Building height restrictions
      
   10. Solar panels
       
       1. 60% power can be provided by solar panels
          
   11. Issues
       
       1. Need to recognize that the built environment is an interconnected series of systems
          
   12. Texas migration
       
       1. Between 1940 and 1960 texans living in urban areas
          
   13. Legal foundation for public regulation
       
       1. State and local governments regulation of land development
          
   14. Extra territorial jurisdiction in texas
       
       1. 1/2 mile - up to 4,999
          
       2. 1 mile - 5,000 to 24,999
          
       3. 2 miles - 25,000 to 49,000
          
       4. 3 1/2 miles - 50,000 to 99,999
          
       5. 5 miles - over 100,000 (san antonio)
          
   15. Zoning innovations (pg. 304)
       
       1. Planned unit development
          
       2. Cluster zoning
          
       3. Overlay zoning
          
       4. Floating zones
          
       5. Incentive zoning
          
       6. Flexible zoning
          
   16. PUD
       
       1. Optional procedure for project design, usually applied to fairly large sites
          
       2. Allows more flexible site design and relaxes some requirements
          
       3. Permits a variety of housing types and uses
          
       4. Implemented in phases
          
   17. Cluster zoning
       
       1. Allows groups of dwellings on small lots
          
   18. Overlay zoning
       
       1. A zoning district applied over one or more other districts that contains additional provisions for special features or conditions such as historic buildings, wetlands, steep slopes, and downtown residential use.
          
   19. Floating zones
       
       1. Zoning for future use - such as a future shopping center
          
   20. Incentive zoning
       
       1. Encourage developers to provide certain amenities or qualities in their projects in return for identified benefits
          
   21. Flexible zoning
       
       1. Performance standards for determining appropriate uses and site design requirements rather than prescribing specific uses and building standards
          
   22. Inclusionary zoning
       
       1. Requires or encourages construction of lower-income housing as a condition of a projects approval. Provisions may include bonuses
          
   23. Transfer of development rights
       
       1. Allows owners to recoup some lost value by selling development rights to developers for transfer to another location where increased densities are allowed. Often allowed to preserve buildings of historic
          
   24. Form based codes
       
       1. Codes that use matrices, diagrams and other illustrations to communicate the preferred physical character of an area.
          
       2. Form based codes regulate building forms.
          
   25. Map submittal requirements
       
       1. Title
          
       2. Name and address of legal owner
          
       3. Legal description
          
       4. Existing and proposed land uses
          
       5. Vicinity map
          
       6. Etc.
          
   26. Development approval
       
       1. Concept phase
          
       2. Pre-application phase
          
       3. Application phase
          
       4. Public decision phase
          
   27. Development approval city of walnut creek california
       
   28. State regulatory actions
       
       1. Growth management laws
          
       2. Early 1970's
          
       3. Florida, oregon
          
   29. Private controls restrictive covenants
       
       1. Restrictive covenants - mandates for design
          
       2. The palette of
          
          1. Materials
             
          2. Colors
             
          3. Design features
             
       3. Roof lines, massing features
          

        
        

    
    

    
    

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ARC 4113 - Project Development

Welcome,

I realize that keeping up with the notes and slides in this class are difficult at best, so I created this blog to use as a forum to share my notes with other classmates for Dr. Tangum's Project Development class (Tue./Thur. 9:30am). Feel free to leave any comments or suggestions and good luck in class.

-Chris