transforming communities through infill design - international builders' show 2014

Transforming Communities Through Infill Design

FEBRUARY 5, 2014 | 1 – 2 PM

Presenters:

Ron Nestor // William Hezmalhalch Architects, Santa Ana & San Ramon, CA

Chris Grady // KEPHART community :: planning :: architecture, Denver, CO

Sean Ruppert // OPaL, LLC, Cabin John, MD

Session Description

Infill sites can be challenging, but they can also provide great

opportunities for builders - as many of today's buyers want to live in

close, walkable communities. Infills offer buyers the unique

opportunity to live in a new home with modern conveniences and

energy efficiency while enjoying the benefits of an established

community - with parks, restaurants, entertainment and a variety of

other attractive amenities located nearby. Learn how creative land

planning and innovative single and multifamily home designs can

maximize infill sites, while strategically targeting buyers and driving

sales.

Learning Outcomes

Discover the rewards in taking on the challenges of infill development.

Create design and site maximization solutions to spark ideas for your next community.

Evaluate valuable infill sites as they relate to the surrounding neighborhood and development.

Integrate various development types into the existing context to create a diverse, walkable and transit-convenient community.

American Institute of Architects (AIA) Continuing Professional Education

Credit(s) earned on completion of this course will be reported to AIA CES for AIA

members upon completion of the AIA/CES Session Participation Forms found in

the back of this session room and online at www.BuildersShow.com. Certificates of

Completion for both AIA members and non-AIA members are available upon

request.

This course is registered with AIA CES for continuing professional education. As

such, it does not include content that may be deemed or construed to be an

approval or endorsement by the AIA of any material of construction or any method

or manner of handling, using, distributing, or dealing in any material or product.

Questions related to specific materials, methods, and services will be addressed at

the conclusion of this presentation.

Smart Growth, Compact Development

Climate Stabilization

California AB32-SB375

Market Demand

Walkable Communities

Infill Development

Astounding Facts:

U.S. Population expected to grow to 420 million by 2050

According to Arthur C. Nelson of Virginia Tech… 89 million new or replacement homes & 190 billion square feet of new office, institutions, stores & other non-residential buildings by 2050

2/3 of all development on the ground in 2050 will be built between 2007 and then

Smart Growth

Ambassador Gardens – City VenturesPasadena, California

MoonStar Townhomes

One Design, Multiple Infill Sites

Townhome Locations

A1,365

sf2 story1 car17’

B1,460 sf3 story2 car18’

C1,552 sf3 story2 car20’

1,557 sf2 story1 car23’

D

Townhome Plan A

- 1,365 SF- 2 Bed- 2.5 Bath

Townhome Plan C

- 1,552 SF- 2 Bed- 2.5 Bath

SITE

1818 Clarkson

A

B

C

2 story1 car17’

3 story2 car18’

3 story2 car20’

2 story1 car23’

D

B

B

B CCA

D

75’

145’

7.5’

1818 Clarkson

1818 Clarkson

SITE

Vine Street Towns

A

B

C

2 story1 car17’

3 story2 car18’

3 story2 car20’

2 story1 car23’

D

AAD DC

C

C C

C

125’12

5’

7.5’

SITE

Washington Street Towns

A

B

C

2 story1 car17’

3 story2 car18’

3 story2 car20’

2 story1 car23’

D

CCC

D

D

A

75’

125’

10’

SITE

Jackson Street Towns

A

B

C

2 story1 car17’

3 story2 car18’

3 story2 car20’

2 story1 car23’

D

C

C

C

C

C

C

C

C

100’

119’

7.5’

SITE

Gaylord Street Towns

A

B

C

2 story1 car17’

3 story2 car18’

3 story2 car20’

2 story1 car23’

D

A

A

A

D

D

D

D

CC

C C C

C

CCC

18th Ave

Alle

y

Washington Jackson Vine

Clarkson Gaylord

Benefits of one design

• Reduced development costs

• Can adjust the mix to accommodate the location

• Can adjust the mix to address a flexible market

Lombard Court Fells Point, Baltimore, MD

• 36 four level, garage, townhomes

• Walking distance to Inner Harbor & Johns Hopkins

• Federal & Victorian architecture

• Hard cost = $188,000 or $89 psf

• Land cost, entitled lots = $165,000

• Total $5,940,000

• Development = $35,000 per lot

• Total $1,260,000


• Financed $16 million A&D money at prime + 1, floor of 7%

• Financed $900,000 in mezzanine equity at 12%

• 7 Sales prior to closing on the land in 2005

• 1 Sale every other month from 2006-2009

• Prices $619,000 in 2005 to $399,000 in 2009


• Equity Lender offered a discount to be paid off early

• Susquehanna Bank “We were never your partner”

• Susquehanna Bank takes discount on loan only if another banks steps in / offered ‘friendly’ foreclosure

• Harbor Bank helps in refinancing debt

• Promises made to myself July 2, 2009

Why urban infill again.....

• Infill in the right location works

• Infill in the right location is easy to finance

• Infill in the right location sells well even in a downturn

• There are more options for exit plans

Myrtle Hill at Washington Park

Myrtle Hill, Denver, COInfill and Reuse

• Business Strategy – Independent Developer with private investors

• Development Strategy – Establish phases and mix product type to broaden market

• Product – Mix of single family detached, for-sale condo lofts, and for-sale townhomes. 27 homes @ 10 du/ac

Myrtle HillInfill and Reuse

• 3 Blocks from Washington Park

– A++ property• Within walking

distance of the Gaylord District

SITE

Washington Park

Gaylord District

Myrtle Hill

Denver, CO

Alley loaded narrow lot homes more in character with the existing neighborhood

Original Plan

Myrtle Hill: Urban Infill

Original Concept• 2,800 – 3,400 SF• 18 lots• 6.6 DU/Acre

Infill Dilemma

Myrtle Hill at Washington Park - Challenges

• Neighbors threw curveball with Historic Designation of Original School structure on site

• Entitlement approval took 1 year, 28 neighborhood meetings, a third party liaison, and a lot of patience

• A great compromise• 9 SFD Alley loaded

homes• 8 brownstone units• 10 Loft units in

renovated school• 10 DU/Acre

Solution

Myrtle Hill: Urban Infill

Consensus Plan

SFD

CondosTowns

The Lofts by the Lawrence Group

Neighborhood Influence

Taking Advantage of Good Bones

Becoming a Fixture

Garage

Courtyard

Hearth Room

Kitchen

Nook

Dining

Living

Bed 2 Bed 3

Master

Solving the Interior Unit

Myrtle Hill Take-Aways & Rewards• Patience is a virtue – It is all about building and

nurturing relationships. Do well by doing good.

• Expect the unexpected and roll with it

• Leverage existing amenities to bring value to your design. Reuse, Reuse, Reuse

• Mix it up! You can hit broader audience and it gives you a competitive edge

• Community sold well and was ultimately embraced by the neighborhood

Naylor Court Stables

Washington, DC

• 3 Four level townhomes

• Designed to resemble an urban stable from 1800’s

• Detached carriage homes

• Just steps to the nucleus of DC night life

• 3 Blocks from Metro

• Hard costs = $119 psf

• Development = $97,000 per

• Land = $330,000 per

Naylor Court StablesWashington, DC

• Joint Venture with land owner who owned the land free and clear

• Zero equity from my firm

• Land owner took $400,000 out of project loan

• Entitlements took place over 6 months

• Neighborhood and Historic support for project

• 1 Pre-Sale at $1,375,000

• Took the others off the market until complete

• Re-listed upon completion at $1,675,000

Naylor Court Stables

Washington, DC

• Loan modification approved easily

• Construction paid of with 2 settlements

• 3rd home all profit

• Financing well located, infill projects

• Banks contact me to finance our projects

• Underwriting = proving your theory to a bank

• Sales process easier

• Margins are enough to protect against next slow down

Image

Triada – Related Companies of CaliforniaSanta Ana, California

Ron Nestor, AIAWilliam Hezmalhalch Architects, Inc.

[email protected]

2850 Redhill Ave., Ste. 200Santa Ana, CA 92705949.250.0607

Speaker Contacts:

Chris GradyKEPHART

[email protected]

2555 Walnut StreetDenver, CO 80205303.832.4474

Sean RuppertOPaL, LLC

[email protected]

6428 79th St., Ste. 100Cabin John, MD 20818301.320.3979

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