heef competition template 2016 final (2)

HISTORY 63rd Street & Halsted Street

SITE

INTRODUCTION

1870’sPost-Chicago Fire Growth

1960’sCity Undertakes “Urban Renewal”

1980’s Re-Opened Streets Triggers

Brief Resurgence

TodayEnglewood Junction

1850’sArea known as Junction Grove

1940’sPopulation Peak at 90,000

2000’sPopulation 40,000; City Invests Again

1970’sMall Fails - Sears & Wieboldt’s Close

SITE

INTRODUCTION

S. Morgan St.

S. Halsted St.

W. 61st St.

W. 63rd St.

S Sangamon

St.

S. Peoria St.West 64th St.

S. Green St.

W. 63rd St.

S. Peoria St.

S. Sangamon St.

W. 65th St.

S. Morgan St.

S. Halsted St.

W. 61st St.

S Sat.

S. Peoria

West 64th St.S. G

reen St.

W. 63rd St.

S. Peoria St.

S. Sangamon St.

W. 65th St.

POPULATION & RIDERSHIPNEIGHBORHOOD

KKC 9,532

ENGLEWOOD ~30,000

GREEN LINE 680RED LINE 5,868

63RD 3,032HALSTED 1,769

63RD 21,864HALSTED 41,968

DEMOGRAPHICS

0.00%

5.00%

10.00%

15.00%

20.00%

0-4 5-9 10-14

15-24

25-34

35-44

45-54

55-64

65-74

75-84

85+

Population (Age)

-0.50%0.00%0.50%1.00%1.50%2.00%2.50%3.00%

2015 - 2020 Trend Estimates

Englewood Illinois United States

44%

15%

13%

12%

8%4%4%

Household Income

<$15,000

$15,000 -$24,999

$25,000 -$34,999

$35,000 -$49,999

$50,000 -$74,999

Population: 29,664Median Age: 31.9Median Income: $18,336

NEIGHBORHOOD

HEALTH CARE & MEDICAL DEMAND

Within 1 Mile : ● 35% of the population filled

prescriptions at a drugstore/pharmacy in 2015

● 10,000 adults age 50 and older ● 6 senior housing facilities

In Illinois: ● 11% uninsured rate (-4.5% from 2013)● 475,003 Illinoisans have gained Medicaid or

CHIP coverage● $554,195,224 Medicare prescription drug

savings

NEIGHBORHOOD

RETAIL DEMANDNEIGHBORHOOD

$ 8.5M in demand for full-service restaurants within 1 mile of the site.

$0 $4 $8 $12 $16 $20

Bldg Materials, Garden Equip, Supply

Stores, Lawn, Florists

Full-Service Restaurants

Millions

Demand Supply

MAJOR EMPLOYERS

NEIGHBORHOOD

VACANCYNEIGHBORHOOD

Incentives to re-build:• Population density growth • Retail density near transit stations• Public Investments to improve the

pedestrian experience

Vacant Land Map (1 Mile Radius)

Masonic Temple, 64th & Green St

City of Chicago promotes $1 Program to sell vacant lots to residents

Community SpeaksNEIGHBORHOOD

High Demand: ● Healthy sit-down Restaurants● Physical Therapy● Building Materials● Garden equipment & supply

stores● Dry cleaning● Video Games

Construction and healthcare industries are growing

The aging population demographic draws the demand for health and personal care stores

SWOT

ANALYSIS

strengths

opportunities

weaknesses

threats

Kennedy King College

Public Transportation & Accessibility

Engaged Community Organizations

Crime

Population Decline/DensityDevelopment Site Limitations

Vacant Lots

Englewood Reputation

Traditional Financing

Culinary / Health Synergy

Increased TIF/Revenue

TOD Development

Community Support

Englewood Square

Vision

VisionGOALS FOR ENGLEWOOD:• Improve the Vitality, Reputation and Self-

image• Employ Locally-focused Strategies with Long-

term Effects

OBJECTIVES:• Make 63rd/Halsted a major focal point of

improvement efforts• Create local options for satisfying demand for

goods and services• Emphasize synergistic effects in re-

development efforts• Create job opportunities and tax revenues• Ensure that all improvement efforts are

socially and environmentally responsible

IMAGE / REPUTATION

CONSUMER $

POPULATION

INVESTOR INTEREST

JOBSENGLEWOOD’S

LOSS

IMAGE/REPUTATION

CONSUMER $

POPULATION

INVESTOR INTEREST

JOBSENGLEWOOD’S

GAIN

VISION

SITE PLAN

DEVELOPMENT SF

SITE A: 21,400 SF

SITE B: 19,000 SF

SITE C: 18,900 SF

REVENUE

ANNUAL WAGE IMPACT $2,550,000

ANNUAL SALES $20,870,000

ANNUAL SALES TAX$1,730,000

JOB CREATION

908 121

380 35

SITE

A

RETAIL CENTER21,400 SF

CVS 13,000 SFATHLETICO 4,200 SFANYTIME 4,200 SFFITNESS

PARKING: 86~ 4 : 1,000

REVENUE

ANNUAL WAGE IMPACT $740,000

ANNUAL SALES$13,340,000


JOB CREATION

380 35


CVS 13,000 SFATHLETICO 4,200 SFANYTIME 4,200 SFFITNESS

PARKING: 86~ 4 : 1,000

380 35REVENUE

ANNUAL WAGE IMPACT $740,000

ANNUAL SALES$13,340,000


JOB CREATION

380 35

SITE

A

380 35275

SITE

B

GREEN ST. STATION + COMMERCIAL

KITCHEN19,000 SF

RESTAURANT 4,500 SFHYDRO. FARM 4,500 SFKITCHEN 10,000 SF

PARKING: 62

REVENUE



ANNUAL SALES TAX$70,000

JOB CREATION

275 50

380 35275

SITE

B

JOB CREATION

275 50

REVENUE




GREEN ST. STATION + COMMERCIAL

KITCHEN19,000 SF

RESTAURANT 4,500 SFHYDRO. FARM 4,500 SFKITCHEN 10,000 SF

PARKING: 62


ACE 9,900 SFWORK N GEAR 4,500 SFGAMESTOP 1,000 SFCLEANERS 3,500 SF

PARKING: 754 : 1,000

380 35

SITE

C

JOB CREATION

253 36

REVENUE




SITE

C


ACE 9,900 SFWORK N GEAR 4,500 SFGAMESTOP 1,000 SFCLEANERS 3,500 SF

PARKING: 754 : 1,000

JOB CREATION

253 36

REVENUE




380

OPPORTUNITIES SITE

PLANS

Local Artist Rahmaan Statik &

Englewood Safety Network

Local Artist Murals

Security Collaboration

SITE

PLANS

Matthew Hoffman69th & Green St, Englewood

Yorkshire Sculpture Park

Papa Johns Park De Moines, IA

SITE BBernie Mac

Community Garden

Garden & Outdoor Dinning

Outdoor Event Space

St. Louis Metro Market

SITE

PLANS

Pop – Up Parks

Pedestrian Connection

Vacant Lot Treatment

Sustainable Features

ASSUMPTIONSFEASIBILITY

PROJECT SOURCES TOTAL $ % PROJECT USES TOTAL $ %

Construction Loan 8,229,629$ 69% Land Acquisition 5,383,122$ 45%

TIF- Contribution -$ 0% Development (Hard & Soft Costs) 5,702,738$ 48%

Historic Tax Credits (Firehouse) 123,250$ 1% Interest Expense 164,123$ 1%

($.85 to the dollar) - Leasing Commissions 506,629$ 4%

Sale of CVS Ground Lease 445,035$ 4% Tenant Contributions 185,584$ 2%

Equity 3,144,283$ 26%

0%

TOTAL SOURCES 11,942,197$ 100% TOTAL USES 11,942,197$ 100%

Project with NO Incentives Project With Incentives

Development Budget 11,942,197$ 11,818,947$

Stabilized NOI (All Phases Year 3) 722,599$ 826,724$

Return on Cost 6.05% 6.99%

Construction Loan38%

Historic Tax Credits

(Firehouse)1%Sale of CVS

Ground Lease4%

Equity57%

Sources

Unleveraged IRR 9.00%Leveraged IRR 11.21%

DEVELOPMENT COSTSFEASIBILITY

Phase I - Site A Phase 2a- Site B Phase 2b - Site C Total All Phases

Land Costs 1,919,980$ 1,767,458$ 1,695,684$ 5,383,122$

Hard Costs 906,000$ 1,950,000$ 2,090,000$ 4,946,000$

Soft Costs 15.0% 135,900$ 292,500$ 313,500$ 741,900$

Tenant Contributions 70,112$ 57,120$ 58,352$ 185,584$ -$

Leasing Commissions 100,854$ 177,739$ 228,037$ 506,629$ -$

Contigency 0.3% 2,718$ 5,850$ 6,270$ 14,838$

Total Development Costs 3,135,564$ 4,250,668$ 4,391,842$ 11,778,074$

add: Interest Expense 11,942,197$

TIMELINE & PHASING STRATEGY

FEASIBILITY

PHASE I PHASE II(a) PHASE II(b)

THE FUTUREEnglewood Junction will deliver:• Goods and Services Tied to Local Demand• Jobs• Increased Tax Revenues• Attractive, Community-sensitive Development

QUESTIONS?

heef competition template 2016 final (2)

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