ULI Spring 2012

West Hempstead, Long Island TOD Development

West 130 – TOD Case Study

• Market Analysis - Market Area; Demand Factors; Supply Factors

• Site Selection• Land Use and Zoning• Product Design and Site Plan• Financing and Investment• Construction

MARKETING ANALYSISWest 130

Long Island Regional Map

• Starts just 18 miles east of Manhattan• Two Counties – Nassau (287 square miles) & Suffolk

(911 square miles) • Extensive public transportation network (LIRR) • 1,180 miles of shore-line

Rental Housing - Metrics

Long Island Demographics

Population: 2.8 million

Total Employment: 1.2 million

Unemployment: 7.2%

Average HH Income: $175,000

MF Rental Completions

2006 1,016

2007 -

2008 -

2009 226

2010 -

2011 210Source: Long Island Housing Index 2007; REIS Report 2011

84% of existing rental housing stock was built prior to 1979 (REIS)

SITE SELECTIONWest 130

• 1960’s Hotel• “Hourly Hotel”• Source of crime• Community eyesore

Site Acquisition

West 130 Location Map

Site Aerial

•Station literally outside front door• 50 minutes to Penn Station

Rail and Bus Network

LAND USE AND ZONING West 130

Benefits to Community

• Permanent Closure and Elimination of the Courtesy Hotel and source of crime/blight

• New, Distinctive Gateway to West Hempstead• Creation of Sense of Place: with Attractive Building, Enhanced

Streetscape, and Sidewalk Improvements• New Choice of Upscale Apartment Living• Catalyst for Further Redevelopment and Community Improvements• Revitalization of West Hempstead LIRR train station• Generate a positive trend in neighborhood real estate values• Set example of a Public / Private Collaboration

Entitlement Timeline

March 2006 Purchase Contract

November 2006 Submit Rezoning Application

November 2008 SEQR Approval (State Environmental Quality Review)

December 2008 Adoption of CA-S Zone &Rezoning Approval

June 2009 Site Plan Approval

July 2009 IDA Inducement (PILOT)

October 2010 Building Permit Approval

February 2011 Close and Start Construction

Timeline

Entitlement Process

PRODUCT DESIGN/SITE PLANWest 130

Project DescriptionBuilding Program

Size: 3 Acres

Density: 50 units per Acre

Building Type: 5A Construction4-story over 2 levels parking

Units: 150 Market Rate

Mix: 1 Bedroom: 35%2 Bedroom: 57%3 Bedroom: 8%

Average Unit Size 1,085 SF

Amenities: 4,000 SF Clubhouse; Fitness Center; I-lounge; Café; Wii-theatre; Landscaped Courtyards and Pool

Floor Plan

Underground Parking Garage

FINANCING AND INVESTMENT

West 130

Cost Item Total Per Unit Per SF

• Hard Cost: $28, 500,000 $190,000 $175

• Land/Soft Cost: $15,500,000 $103,333 $ 53

• Total Costs: $44,000,000 $293,333 $228

Average Rent/SF: $2.46

Average NSF: 1,085

Average Rent/Home: $2,670

Units 150

Project Cost Summary

Dollar % of Total Per UnitCategory Amount Cost

DebtTotal Construction Debt: $28, 500,000 65% $190,000

EquityTotal Equity: $15,500,000 35% $103,333

Total Capitalization $44,000,000 100% $293,333

Un-Trended

Yield on Total Project Cost: 8.0%+

Market Cap Rates: 4.75%

Units 150

Capitalization

CONSTRUCTIONWest 130

May 2011

May 2011

May 2011

November 2011

November 2011

August 2011

February 2012

April 2012

Vision Long Island Smart Growth Award Recipient