the wednesday group...design and is out of touch with what today’s renters actually seek. the...
TRANSCRIPT
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I n v e s t o r P r e s e n t a t i o nC o d e N a m e : T h e N o l i t a B u i l d i n g
T h e W e d n e s d ay G r o u p
D E V E L O P M E N T C O M P A N Y
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Contents
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Introduction
The Problem
The Solution
The Opportunity
Proposed Renderings
Floor Plans
Financial Snapshots
Behind the Group
Contact
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The following is a proposal to
create a new, mixed use multi-
family development based on
the classic Italianate style at
the corners of E. New York and
Hudson St., Indianapolis, IN.
TheWednesdayGroup DevelopmentCompany
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4
ThePROBLEM
Real Estate Development is an optimization problem: how to build the most
cost effective structure while charging the highest amount in rent. Developers
today solve this equation by finding and adding:
+ Cost effective materials, such as cement board paneling
+ Modern amenities to attract Millennials
= Higher net operating income
While materials such as cement board help reduce costs, and modern amenities
attribute to the ability to charge higher rents, modern architecture has lost sight on
design and is out of touch with what today’s renters actually seek. The “Millennials”
in today’s renting environment tend to seek a deeper connection to everything
in their lives—from their possessions, to their jobs, to their places of residence.
These young professionals often find the “cookie cutter” developments to be
uninspiring, sterile, and unoriginal.
With all that we have gained in modern builds and amenities, we have equally
sacrificed in design. The lack of visible conceptual originality is where The
Wednesday Group comes in. We recognize that the current approach to
development is both profitable and practical; however, we at The Wednesday
Group want to add an element of uniqueness that inspires residents and makes
them feel at home.
Today’s developments are missing something that The Wednesday Group will bring to the table.
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TheSOLUTION
The Wednesday Group addresses the optimization problem in modern
developments in a unique, affordable, and creative way; by looking to the past
for inspiration.
This is how: it is now possible to utilize architectural blueprints for buildings
designed in the late 1800’s-early 1900’s, as these are now public domain. Anyone
can use these designs, free of charge. At the Wednesday Group, this means
modern buildings can be built with beautiful historic facades—all at a fraction
of cost.
By employing these existing blueprints, we save countless hours that would
have been spent in designing, planning, and seeking approvals within the city.
Consequently, we significantly reduce architectural costs. The historic facade
acts to enhance the cultural fabric and aesthetic beauty of Indianapolis, while
delivering a higher perception of value to the renter.
The modern luxuries today’s renter has come to expect will be found in the
interior of our buildings. Amenities such as a rooftop deck, gym, and recreation
area will not go unnoticed.
Developing the future, while remembering the past.
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TheOPPORTUNITY
This project is a replicant development of the Italianate apartment buildings that
you will find in old neighborhoods of most major cities. This style of building pays
homage to designs of the late 1800’s and early 1900’s; as such, there will be a
historic facade on the exterior of the building coupled with modern, updated
interiors. Here we are able to recover the beauty of the past in a modern and
exciting way.
The building is poised to be centrally located in downtown Indianapolis, adjacent to
the Massachusetts Avenue corridor. Our development would not only complement
existing entertainment in the area but also attract new, in-demand restaurants,
shops, bars, and other bespoke businesses.
This development proposal in its entirety is for sale at a price of $100,000, which
includes all intellectual property including the concept and designs. In addition,
the purchase price also includes The Wednesday Group’s guidance and advisory
to help facilitate concept to construction.
Be part of a development that is poised to impact both the cultural fabric of the city as
well as drive economic growth.
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External View
Level 324' - 0"
Level 436' - 0"
Level 548' - 0"
Level 660' - 0"
Level 772' - 0"
Level 884' - 0"
Level 996' - 0"
Level 10108' - 0"
Level 11120' - 0"
Level 12132' - 0"
Scale
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A-301
E. NEW YORKSTREET ELEVATION
219 E. NEW YORK STREET,INDIANAPOLIS, IN
GROUP
No. Description7 ISSUED FOR DESIGN DEVELOPMENT
80%8 ISSUED FOR REVIEW
1/8" = 1'-0"1 FRONT ELEVATION
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Highlights of the building include 6 stories above ground and a cellar. Ground Floor is commercial with 5 residential floors above.
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Hudson Street Elevation
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Level 324' - 0"
Level 436' - 0"
Level 548' - 0"
Level 660' - 0"
Level 772' - 0"
Level 884' - 0"
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A-302
HUDSON STREETELEVATION
219 E. NEW YORK STREET,INDIANAPOLIS, IN
GROUP
No. Description8 ISSUED FOR REVIEW
1/8" = 1'-0"1 SIDE ELEVATION
The building includes 2 separate commercial spaces and a private entrance/lobby for the residents. The entrance to the residential is located on Hudson Street.
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Ground Floor Retail UP
3264 SFRETAIL 1
2952 SFRETAIL 2
740 SFLOBBY
98 SF
ELEVATOR MACHINEROOM
Scale
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1/8" = 1'-0"
6/16
/201
9 5:
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A-305
1ST LEVEL AREAPLAN
1901
219 E. NEW YORK STREET,INDIANAPOLIS, IN
THE WEDNESDAYGROUP
02/04/2019Author
Checker
No. Description Date
1/8" = 1'-0"1 1ST LEVEL
The first floor will consist of two retail spaces, one with frontage to New York Street and one with frontage to Hudson street. It is possible to combine both retail spaces into one large retail space if needed. Private residentiallobby includes stairwell and elevator access.
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Ground Floor Lobby
A view inside the Lobby.
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2nd - 6th Floor Elevation
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DN
836 SFAPT. 202
836 SFAPT. 203
615 SFAPT. 204
426 SFAPT. 201
532 SFAPT. 205
619 SFAPT. 206
776 SFAPT. 207
775 SFAPT. 208
618 SFAPT. 209
426 SFAPT. 210
602
SFH
ALLW
AY 2
00
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A-306
2ND LEVEL AREAPLAN
1901
219 E. NEW YORK STREET,INDIANAPOLIS, IN
THE WEDNESDAYGROUP
02/04/2019Author
Checker
No. Description Date
1/8" = 1'-0"1 2ND LEVEL
All five residential floors will have the same layout. Each floor contains four 2-Bedroom units, five 1-Bedroom Units, and one studio for a total of 10 rooms per floor.
The long wall opposite the stairwell and elevator will house special works of art, creating an art gallery, unique to each floor.
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2 Bedroom Apartment
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A view inside the two bedroom apartment.
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Basement Cellar
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UP
1136 SF
LOUNGE/ GAMEROOM
5
271 SF
BIKE STORAGE12
986 SF
GYM13
760 SF
MECH. RM.14
Scale
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1/8" = 1'-0"
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/201
9 4:
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A-101CELLAR FLOOR PLAN
1901
THE WEDNESDAY GROUP
219 E. NEW YORK STREET, INDIANAPOLIS, IN02/04/2019M.R.-
No. Description Date4 ISSUED FOR REVIEW 01/26/20197 ISSUED FOR DESIGN
DEVELOPMENT 80%03/14/2019
8 ISSUED FOR REVIEW 03/22/20199 ISSUED FOR REVIEW 03/28/2019
Basement includes a lounge room equipped with desk space, a Large TV, and space for bike storage. Additionally, a small gym, which includes treadmills andbikes, are available to residents at no extra charge.
Note that this basement does not extend the entire length of the building and only covers the area beginning from the stairwell extend-ing to the rear of the building.
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Rooftop
DN
130'
- 9
3/8"
49' - 11 11/16"
73' -
9 1
/32"
21' - 3 1/16"
35' - 8 1/4"
2442
SF
ROO
F DE
CK10
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A-10
4R
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F PL
AN 1901
THE
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The building’s Rooftop is equipped with a large wooden deck for residents to enjoy.
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Rooftop
The view of the rooftop looking north.
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Site PlanDN
UP
3238
SF
RETA
IL1
2937
SF
RETA
IL 2
3
47' - 7 15/16"
HU
DSO
N S
TREE
T
MIAMI STREET
671
SF
LOBB
Y2
E. NEW YORK STREET
N. A
LLEY
265
E
154'
- 7
11/1
6"
49' - 11 11/16"
60' -
8 1
/4"
91' -
7"
A-302 1
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1/8
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A-10
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SITE
PLA
N
1901
219
E. N
EW Y
OR
K ST
REE
T,IN
DIA
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S, IN
THE
WED
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02/0
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No.
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01/3
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The building’s envelope extends as close to Hudson and New York Streets asallowable. The site will include 14 parking spaces for residents torent monthly.
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Top Down Map
The building has easyaccess to the Mass Ave.corridor.
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Rental RevenueSummary
Financial Snap Shots• 50 rentable residential units• 2 rentable retail units • 14 rentable parking spaces
Stage 1a - Rental Revenue Summary
Apartment Unit TypesNo. of Units Rent/Ft2
Area/Unit (ft2) Total Ft2
Rent/Month/Unit
Total Annual
Rent
Apt. 201 Sudio 5 $25.44 426 2,130 $903 $54,187Apt. 210 Jr. 1 Bedroom 5 $25.44 426 2,130 $903 $54,187Apt. 202 & 203 2 Bedroom 10 $23.04 836 8,360 $1,605 $192,614Apt. 204 & 206 & 209 1 Bedroom 15 $22.20 615 9,225 $1,138 $204,795Apt. 205 1 Bedroom 5 $22.80 532 2,660 $1,011 $60,648Apt. 207 & 208 2 Bedroom 10 $23.40 775 7,750 $1,511 $181,350
Total Apartment Rental Revenue 50 $23.18 645 32,255 $7,071 $747,782
Total Retail Rental Revenue (see below) 2 $33.58 3,108 6,216 $17,392 $208,704Other Rental Revenuea
$1,200Parkingb
$6,720Total Rental Revenue 52 $25.07 740 38,471 $24,463 $964,406
Retail TenantsNo. of Units Rent/Ft2
Area/Unit (ft2) Total Ft2
Rent/Month/Unit
Total Annual
Rent
Retail Tenant 1 1 $35.00 3,264 3,264 $9,520 $114,240Retail Tenant 2 1 $32.00 2,952 2,952 $7,872 $94,464
Total Rental Revenue 2 $33.58 3,108 6,216 $17,392 $208,704
aOther Rental Revenue includes additional revenue as a result of conducting daily business activities. Examples of Other Miscellaneous Revenue include late fees and penalties, forfeiture of deposits, and lost key fees. Specific to this case,
bParking for 14 Spaces at $40 per space per month.
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Pro Forma NOI
Stage 1b - Pro Forma NOI
FactorAnnual
Revenue/CostRevenueGross Potential Revenuea $964,406
Less: Vacancy 3.00% ($28,932)Less: Bad Debt 0.50% ($4,822)
Effective Gross Revenue $930,652
Expensesb
Property Management 12.00% of Effective Gross Revenue $111,678Controllable Costsc 1,950$ per unit $97,500Real Estate Taxes 1.36% of estimated total project cost $135,000CAM 0.75% $6,980Other Costs $500 per unit $25,000Insurance $400 per unit $20,000Utilities $500 per unit $25,000Replacement Reserve $150 per unit $7,500Total Expenses $428,658
Net Operating Income $501,994
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Maximum DebtCalculation
Stage 1c - Maximum Debt Calculation
Pro Forma Net Operating Income (NOI) and ValuePro Forma NOIa $501,994Capitalization Rate 5.21%Value of Income Property Only (NOI / Cap Rate) $9,635,192
Loan TermsInterest Rateb 5.00%Amortization (years) 30
Debt Based on Loan to Value (LTV)Maximum LTV Percentageb 75.00%Maximum Loan Based on LTV for Income Property $7,226,394
Using Debt Coverage Ratio (DCR)Monthly NOI 41,833Maximum DCR 1.20Maximum Monthly Payment (NOI/DCR/12) $34,861Maximum Loan Based on DCR for Income Property $6,493,900
Maximum Loan (Lesser of LTV or DCR Result)Maximum Loan for Income Propertyc $6,493,900Add: Loan for For-Sale Property d $0Total Initial Project Debt $6,493,900
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Development Costs
Working financial excel model deliverable upon request.
Gross fTotal
UsableApartmentsand Retail
1 Number of Units 52 52 52 2 Square Footage (Input Gross) 52,566 38,471 38,471 3 Percentage of Total Square Footage 100% 100%
4 Development Costsa
5 Land $30.00 per gross ft2 1,500,000$ 1,500,000$ 6 Land Carryb 3.65% rate 12 months 36,484 36,4847 Approval Fees $1.17 per gross ft2 61,666 61,6668 Environmental Remediation $1.46 per gross ft2 76,787 76,7879 Construction Hard Cost $127.00 per gross ft2 6,675,882 6,675,882
10 Soft Costs:11 Architecture & Engineering & Other 5.06% of hard cost 337,511 337,51112 Legal & Other Related Fees $228,910 estimate 228,910 228,91013 Appraisal & Title $10,883 estimate 10,883 10,88314 Marketing $1,225 per total units 63,700 63,70015 Taxes during Construction $50,000 estimate 50,000 50,00016 Insurance during Construction $19,800 estimate 19,800 19,80017 Total Soft Costs 710,804 710,804
18 Contingency 2.82% of hard cost 188,243 188,24319 Total Development Cost before Interest and Operating Reserve 9,249,866$ 9,249,866$
20 Estimate of Construction Interestc
21 Construction Loan $6,493,90022 Construction Interest 4.25%23 Construction Period (months) 1824 Average Draw 65.00%25 Estimated Construction Loan Interest 269,091 269,09126 Total Project Cost before Operating Reserve 9,518,957$ 9,518,957$
27 Estimate of Operating Reserved
28 Gross Potential Rent (monthly) $80,36729 Lease-Up Period (months until stabilization) 6.030 Average Occupancy during Lease-Up 65%31 Estimated Rent during Lease-Up 313,432 32 Estimated Op. Expenses during Lease-Up 214,329 33 NOI during Lease-Up 99,103 34 Construction Interest during Lease-Up 137,99535 First-Year Operating Reserve Required 38,893 38,89336 Total Project Costs 9,557,850$ 9,557,850$
37 Less: Development Cost Subsidies e (286,735) (286,735)
38 Total Project Costs after Subsidies 9,271,114$ 9,271,114$
Stage 1d - Development Costs
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The Wednesday Group Development Company has set out to deliver top-quality developments that pay homage to the past while maintaining the modern luxuries of the present.
Owner - David Yazell
David has been passionate about real estate development his whole life. He has four years of finance experience, most recently working as a credit analyst on Wall Street. He graduated Indiana University with a degree in Finance and Entrepreneurship. He is hard-working, reliable, and enjoys working face-to-face with colleagues and clients. David is inspired by the beauty of the past and looks forward to bringing these historic structures back to life. David currently resides in New York City.
Lead Designer - Marsha Robinson
Marsha Robinson is an architect that has been steadily working in the Architecture/ Construction industry since 2008. Marsha was born and raised in Mansfield, OH. She studied at Kent State University and received a master’s of architecture with a concentration in urban design, before moving to New York. She works for a mid-Manhattan firm and oversees the production of construction documents for luxury high rise buildings and interior fit-out renovations. In 2017 she was chosen to be one of Commercial Observer’s 20 A.E.C. Pros Under 35 to Watch. Marsha currently resides in New York City.
BehindTHE GROUP
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Wednesdaygroupdevelopment.com | P.O. Box 8072, New York, NY 10150 | 812-569-5260 | [email protected]
T h e W e d n e s d ay G r o u p
D E V E L O P M E N T C O M P A N Y
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