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posts tagged "mixed use development"

Mixed Use Proforma's - Garbage in/Garbage Out

Posted on July 30, 2010 by Tadd Miller

You can make a proforma say whatever you want, no matter how fancy the format, and how big or small the file, as the majority of the real success in doing a solid proforma is what you can't see in it, but what it is populated with. Much like the old software/technology phrase "garbage in, garbage out" type of analysis. This is probably one of the biggest issues in mixed use development, as we all want our projects to work, and there is no easier place to allow our own bias to ensnare us in than in the proforma preparation stage, especially on those portions of the project that are not our specialty. When you don't have specialist in a mixed use project from the beginning, the retail developer inflates the residential land cost and underestimates the expenses, or visa versa with a residential lead. This is how a lot of guys who want to control the own deal, and try to build the product that they don't know about themselves get themselves in a jackpot. If you don't have a specialist on the other end to catch these things, then you lie to yourself, at which point your project is doomed. It is imperative that you get involved at the very front end professionals that can second guess your proforma from all angles of the development and product. Without doing this, to make assumptions on product which you don't regularly develop is a definite way to get yourself in trouble quickly.

This entry was posted in Design, Our Philosophy and tagged mixed use, mixed use development, Milhaus, virtual shopping, urban infill

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Mixed Use Success – Stick With What You Know!

Posted on July 27, 2010 by Tadd Miller

Mixed use requires residential, retail, and office components to be individually successful. Empty retail dramatically affects residential rents/absorption, just as residential failure destroys retail value within a project. To create success in this environment, mixed use developers must be realistic about their expertise and capacity. Retail developers are “business-to-business” operators, while residential developers service customers’ homes 24/7, two extremely different cultures; which if redirected, destroys customer confidence leading to project failure or value limitations. This need for focus and specialization is what is driving the multiple joint ventures that are taking place among real estate companies throughout the country.

Historically, real estate developers have made investments outside their focus area all too often, and the evidence shows a lack of return on capital. Most of the developers either cap their future capacity by continuing to struggle through, or more appropriately take a loss to exit the new venture in order to get back to their core focus. As a developer and entreprenuer, I understand the desire to control my own destiny, and fall into the “if someone else can do it, than so can I,” trap, but I have also learned the dangers of acting on those thoughts.

Unsuccessful projects are a big black eye for all mixed use projects. Find a partner or provider for the product in which you don’t excel, make sure they have been through the development of a mixed use project before, and lock them in to help them complete your next mixed use project, and that will be a big step towards making your project successful!

This entry was posted in Our Philosophy, Redevelopment and tagged mixed use, mixed use development, joint ventures, partnerships

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Mixed Use driven by Mass Media Influences

Posted on July 19, 2010 by Tadd Miller

packard-street-view-300x237Urban lifestyle depictions by the mass media significantly impact the continued urban renaissance. The first TV episodes I enjoyed were Andy Griffith and the Walton’s; then the Brady Bunch and Cosby, and then on to Seinfeld and Law and Order. I saw television personalities starting with the Walton farm, then the Huxtable townhouse, and furthermore into Seinfeld’s New York condo. Quite a lifestyle and storyline transition in prime time television programming for a 20 year span. There is no doubt in my mind that this had an impact on my lifestyle choice of a mid-rise condo near Monument Circle in downtown Indianapolis.

From this personal experience, I would argue that this storyline transition has accurately reflected the rebirth of urban America. Many people choosing their first place to live after college over the last decade help make Friends and Sex and the City two of the most popular shows. Furthermore, look at tonight’s television list on one station, and you see How I Met Your Mother, Big Bang Theory, Rules of Engagement, and CSI: Miami in the 3 hour primetime lineup, which are all very urban based storylines and backdrops.

Of course I am biased as I want to validate my downtown, condo lifestyle, but what blogger doesn’t have some bias. I can only hope mass media continues to have a focus on urban based shows that no doubt help reaffirm that urban lifestyle is definitely cool (and the sustainable option as well if you read “Green Metropolis” by David Owens)!

This entry was posted in Housing, Lifestyle, Our Philosophy and tagged Urban Infill, mixed use, mixed use development, downtown living, generation y, urban living

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Mixed Use "Secret Recipe"

Posted on July 06, 2010 by Tadd Miller

mixed-use-highland-row-300x153Now that you bought into the tag line to start reading this, I have to be honest and tell you that there really is no “secret recipe” for mixed use. However, I believe the main ingredient is perseverance. Sometimes it includes banging your head against the wall before, during and after you developed a mixed use project. Maybe I exaggerate it, but it does take tremendous flexibility, creativity, teamwork, the ability to work with and filter through many competing interests along with the ability to deal with constant change and give and take. However, the end result is so rewarding that most of us entrepreneurial development minds are addicted once we start; and we cannot even think about how life was back when we were doing subdivisions and other single-use developments.

I think if I was to try to pinpoint the recipe for successful projects, to me, they are the projects that have strong leadership that can put aside ego and personal desires for a specific project, and get inside the head of the true users of the project, both immediately and in the future. Our developments represent much more than just a building; these buyers and renters are making a social and psychological decision and choosing a lifestyle. Most of the people I get to know in our developments are not caught up in the “rat race,” but rather are very conscious of what they want to accomplish in life and where they want to spend their time. They know how they want to live their life and have less attachment to the actual “home” or “office” that they reside in. Therefore, to create a successful mixed use project, I cannot stress enough how the creator of the project needs to really take the time to strip themselves of all their bias, and listen to those people who will be using, consuming, enjoying, living, working, playing in their projects. If they just do that, the projects they develop will be successful!

This entry was posted in Our Philosophy and tagged mixed use development

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Live, Work, Play and Help the Environment

Posted on June 30, 2010 by Tadd Miller

mixed-use-land-use-drivingThe Urban Land Institute (“ULI”) released a report last week that shows the importance of Mixed Use and Urban Infill on the potential for long term sustainability within the US. Confirming what Milhaus has always found a logical conclusion from opinion based theory, ULI has now substantiated that urban infill and mixed use projects and/or communities where people can work, play, and shop closer to home, actually produce less traffic loads, thus lowering energy consumption and greenhouse gas emissions. You should check out ULI’s report, Land Use and Driving available for members on their website www.uli.org, or click on the following link.

This entry was posted in Sustainability, Transportation and tagged ULI, Urban Infill, mixed use, mixed use development

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What is mixed use development? – Part Two

Posted on May 26, 2010 by Milhaus Development

Mixed use development stands in direct contrast to the single use, suburban development patterns found in most parts of America. In fact, it is illegal to mix uses under most zoning ordinances, stemming in part from the Supreme Court case of Euclid v. Ambler in 1926. Since this landmark case, other factors have also contributed to single use development in America, including more affordable car transportation and rising incomes. Cars gave people the physical freedom to cover more ground in the same time as walking or transit. Higher incomes provided the option to move out of the city, buy a bigger home and own a car. Although much of the American landscape over the last 80 years has experienced growth in a single use development pattern, there are good examples of mixed use projects as well. We intend to feature as many as we can in future posts. We also invite others to suggest notable buildings and projects for their contribution to neighborhoods and cities.

There are two different categories of mixed use development that will be discussed on this site – horizontal and vertical. In practice both are considered to be “mixed use.” While both types may include the same uses, they function very differently. The type of mixed use discussed in Part One of this post is vertical, which includes mixing different uses within the same building, ie. office, retail and residential. The second type, which is more common in suburban environments, includes mixing uses within a project. For example, a retail shopping mall site that includes apartments and office buildings next to it. Although none of the uses are integrated into one building, the place itself can be designed so that the different uses are well integrated. Both types really provide similar benefits, but it is important to recognize the distinction, as they require different programming, design and execution by developers. Perhaps there are other nuances learned by others. Please share your thoughts here.

This entry was posted in Our Philosophy and tagged mixed use development, Milhaus, urban planning

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