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posts by "David Leazenby"

Time factor of mixed use development

Posted on December 19, 2011 by David Leazenby

It was a simple question overheard at an event recently: How much longer does a mixed use project take to develop? Well, maybe one day if we can write a book, there will undoubtedly be a chapter devoted to the time cost of including commercial space in our buildings. We have a rule of thumb at Milhaus for project timeframes that vary depending upon the size of the project, the role of neighborhood groups and government approvals, design complexity, construction method, and even the weather. From contract signing to starting construction, it varies from 8 months to 24 months depending on many factors.

To understand development of mixed use and urban-infill properties, one must first understand that signing a contract to buy a property for development has only earned you the right to spend lots of money and risk lots of time and even more money. You've basically bought the right to promote a vision for changing something. That "something" can be a building, a city block, a vacant parcel, etc. Whatever it is, there are many other ideas for how it should be developed that are contrary to yours. Moreover, there are many other people that have some "ownership" of that something like you do. There are neighbors, customers, concerned citizens, and advocates of preservation that all have a voice in our business. It takes time to build trust and relationships with each of these stakeholders. It takes time to design and redesign a building to respond to reasonable concerns. It takes time to navigate the myriad neighborhood meetings, city entitlement processes, and bring the project team members along the way.

Mixing the uses takes time to explain why you are doing it, how it will work, and why it will be successful. It increases the complexity of approvals, design, and financing that just takes more of everything to get it done. Depending on the other factors at play, just adding commercial space to a residential building can add 25%-50% more time to your schedule to reach construction. Of course, this extra time has a cost and it needs to be measured against other goals and objectives of the project and the company. Is it worth it? Well, sometimes the value of mixing uses in the project cannot be measured in dollars and cents. We'll leave that thought for another day.

This entry was posted in Our Philosophy

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"Shark Tank" at ULI Los Angeles

Posted on October 31, 2011 by David Leazenby

I had the opportunity last week in Los Angeles to lead off the first ever "Shark Tank" session at a ULI Fall Meeting. While planning it over the last few weeks, we were not sure what to expect. Would we have enough content? Would anyone show up? Would the sharks really be interested in these deals? What will it be like to present real deals to different people with different criteria all while sharing all of our strengths and weaknesses? Well, if the immediate response is a good indicator, it was a wildly successful session in front of about 500 people. The concept (the brainchild of Lynn Carlton at Sasaki) was modeled after the popular TV show where entrepreneurs present their product or service to a group of investors. ULI is not typically a large format "deal-making" sort of meeting, but rather an educational and networking organization focused on developing leaders in the real estate industry. However, for 105 minutes in LA, four real estate investment pros poked and prodded their way through two different real estate opportunities while the presenters (and the audience) were educated on what these ladies and gentlemen are looking for in a deal today. Moderating the session was Steve Furnary, CEO of Clarion Partners. The sharks included Cia Buckley, Partner at Dune Real Estate Partners; Arthur Fefferman, President of AFC Realty Holdings; Trish Healy, Principal of Hyde Street Holdings; and Charles Burd, CIO of Bentall Kennedy. The result: I pitched a 380-unit redevelopment project in Indianapolis and asked the sharks for $15M in equity on a $42.6M project; two of them voted to do the deal. Well, actually three if you count Trish Healy's hedge. Thanks to them all and to Lynn and my co-presenter Craig Cherney of American Land Fund for helping to make a great idea come to life.

This entry was posted in Finance, News

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Carmel's Urbanism Realized

Posted on August 23, 2011 by David Leazenby

I gave a tour to a group of Plan Commission members from a Midwestern suburb recently. It was a lively morning capped by lunch on Carmel's Main Street. While highlighting projects on Old Meridian Street, in City Center, and along Main Street it hit me how much development has occurred here recently. How did this city of a relatively small size (appx.80,000pop) transform itself from typical American edge-city/suburb into an icon of small-scale urbanism in just 10 years? Today there are three distinct urban neighborhoods including the City Center/Palladium district, the Arts & Design District (its true "Downtown" in my view) and the Old Meridian District. While there is still a lot of room for more development, all three of them have come into their own in the last couple of years - and in this economic period. Call it vision. Call it leadership. Call it market demand. Whatever it is, its remarkable. See photos of buildings from our tour below. Also, here is a partial list of urban/mixed-use projects completed recently in Carmel that we visited:

1. Our own Penn Circle to start in 2011 - apartments and retail space
   
2. Providence at Old Meridian apartments, townhomes, retail and office space
   
3. Sunrise on Old Meridian - Senior Living
   
4. City Center Apartments
   
5. Residences at City Center apartments, office, and retail space
   
6. Old Town on the Monon apartments and retail space
   
7. Sophia Square apartments and retail space
   
8. Indiana Design Center office and retail space
   

Photos

Click an image to view the gallery.

This entry was posted in USA Midwest

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829 Folsom - San Francisco

Posted on August 15, 2011 by David Leazenby

After touring a couple high priced towers in San Francisco, it's nice to visit a more approachable building that has less fuss, but still focuses on details. Designed by Forma, LLC in San Francisco, this 9-story mixed-use building known as 829 Folsom is simple and very well done. While its less amenitized than others in its market, it targets a different buyer. Some people do not want to pay for a pool deck, a fitness center or a large lobby awaiting their return every evening. Also, while it's views are less stunning than something like One Rincon Hill, its 69 units compete where it really counts today. Here you find much lower prices and less condo fees, too. Like other new condo and apartment buildings today, the focus on contemporary finishes is evident. White/chrome fixtures with dark counters and warm, natural colored cabinets seems to be the norm. In fact, here you can even get the one remaining studio unit without a parking space for $399,000 - a bargain for new product in the city. There are not many places in the US where you can sell units without parking spaces. They have sold 5 out of 6 in this building. Many housing trends originate in the Bay Area. Perhaps this is one coming soon to a neighborhood near you. The building also includes 2,652sf of space available for a commercial use on the first floor. Anyway, as promised, here are some pics below from my visit with Hugh O'Donnell, salesperson and excellent tour guide. My pics are nothing compared to their Flickr site.

Photos

Click an image to view the gallery.

This entry was posted in Project Highlight, USA West

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One Rincon Hill in San Francisco

Posted on August 08, 2011 by David Leazenby

We learn a lot from studying other projects in different cities. Each place has its own unique market and culture that becomes incorporated into any given design. While in San Francisco this weekend I checked out the development progress in the Downtown and South of Market areas. With each year that goes by, this neighborhood continues its radical change from warehouses to people places. One of the more dramatic changes has happened in the Rincon Hill neighborhood (See also CurbedSF's Rincon Hill's page). What began with a city initiative to bring more housing near the Financial District and the waterfront has resulted in a new way to live in the city. It’s certainly less charming and with few slopes, but rather more modern and glistening. The glass, steel, and water combine for a new way to experience the city. Some there call it "Manhattan-like." But it’s different than that. The plan is for tall, carefully spaced, very slender, low profile buildings in order to preserve everyone's cherished views that make the city special. See more on the Rincon Hill plan here. I visited four condo projects on Saturday in South of Market, including Millennium Tower, One Rincon Hill, 829 Folsom and Blu. I found some spectacular views (and prices). See pics below of One Rincon Hill, developed by Urban West Associates in San Francisco. I'll post some pics of other buildings later this week.

Photos

Click an image to view the gallery.

This entry was posted in Project Highlight, USA West

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Sophia Square Anchors Downtown Carmel

Posted on July 27, 2011 by David Leazenby

We had the opportunity recently to tour the new Sophia Square project on Main Street in Downtown Carmel, Indiana. Standing in contrast to its suburban locale, this four-story, 240,000 square foot, mixed-use development by Keystone Construction now anchors the Arts & Design District. What began with the Carmel Redevelopment Commission purchasing the entire block situated on the Monon Trail in 2007 has now resulted in 202 apartments, 40,000 square feet of commercial space, and 400 public underground parking spaces. The building is designed in a "donut" format with a courtyard and pool in the center. Because of the public subsidy in the project, the parking garage and most of the courtyard must remain open to the public. With perhaps the most stylish interior design in this market for an amenity center, Sophia Square promises to attract those creative professionals seeking to be close to the employment and attractions of the Arts & Design District. Apartment leasing is about 1/3 complete in only a few months. In addition, its location happens to be the among the top two busiest daytime stretches of the Monon Trail on weekends. You can't get a better marketing window than that. Check out the pictures below.

Photos

Click an image to view the gallery.

This entry was posted in Project Highlight, USA Midwest

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Top of Chicago...almost

Posted on July 07, 2011 by David Leazenby

It had been two decades since I had visited the observation deck of the John Hancock Center in Chicago. With a few minutes to spare yesterday I ventured up to take in the views from the fourth tallest building in the city. I learned the structure includes the third highest residence in the world today (thank you very much Wikipedia entry). During my last visit it would have been the highest and now it follows the Trump Tower in Chicago and the Burj Khalifa in Dubai. When I visit 20 more years from now, I wonder how many more residences will top it. Check out the views from yesterday below.

Photos

Click an image to view the gallery.

This entry was posted in Project Highlight, USA Midwest

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Grocery parking ratios shrinking

Posted on June 27, 2011 by David Leazenby

More grocery stores are adapting their business for urban sites. In San Francisco a Whole Foods took on responsibility to abate any parking problems that might occur with their parking garage at their new Mission Dolores store. Read the full article here. The project by the Prado Group will also bring 82 apartments atop the store. At CityVista, according to this ULI article, "parking was reduced 40 percent versus a conventional suburban store, and the ratio is just 2.9 spaces per 1,000 square feet of store space." (You can see more about CityVista profiled here at ThinkMixedUse last fall)

This entry was posted in Design, Retail

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Be part of the transit solution

Posted on June 22, 2011 by David Leazenby

"I want more transit options in Central Indiana.

I’m aware that the demand for public transportation in Indiana is increasing; I also know that traditional transit funding sources are failing to meet today’s demand or support a more transit-ready future. Communities should have the opportunity to increase transit funding to the level their residents desire.

By signing this petition, I am saying:

1. I want Indiana communities to have the opportunity to choose to fund transit initiatives.
   

2. I want the 2012 Indiana General Assembly to authorize voter referenda that would allow communities to create dedicated and adequate funding for transit design, construction, operation and maintenance.
   

3. I want voters to have the opportunity to decide whether their communities will dedicate local revenue for transit systems."
   

All of the above is copied directly from Central Indiana Regional Transportation Authority's (CIRTA) website, whereon they have launched a petition to seek support for transit funding. As of this writing, 1,890 people have signed it in just the last week since it's launch. It's really pretty simple when you think about it. Ehren Bingaman, Executive Director of CIRTA, asked recently in a piece he wrote for the Indianapolis Star: "If your car runs out of gas, do you blame it for stopping?" Let's give transit it's place in Indianapolis. Sign the petition and get the funding question out there for our legislature to debate. Also, read more about the plans for transit in Central Indiana at IndyConnect. While you are at it, check out Ehren's recent tweets at @ebingaman from the Transit Initiatives and Communities Conference in St. Louis. Seriously, is anyone working harder for transit in Indianapolis?

This entry was posted in Transportation

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Mixed Use Trends

Posted on June 15, 2011 by David Leazenby

People ask us a lot about our social media experiences. This blog is among many elements that we employ to extend our reach into the conversations of mixed use development and place making. A recent question from a reader got me thinking. She asked “Where are there conversations going on that pertain to your business?” Essentially, she was asking me where do we spend our time online. There are many places online to stay engaged in your business, to seek new ideas and to remain competitive. Here are just a few below that help keep us plugged in to trends. We’ve also added them to a new “Links” area here on our site in the right column.

Multi-Housing News Retail Traffic ULI Magazine LinkedIn ULI Group Planetizen Streetsblog Greater Greater Washington Urban Indy

This entry was posted in Our Philosophy

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• Mixed Use Development (or not) in Midtown Houston
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• Milhaus starts its third year
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