REAL 5070S Real Estate Development Fall 2022 Group Project Assignment #1 For the

first group project assignment you are to identify a community need, issue or problem
and come up with a development plan to address your chosen need, issue or problem.
By 5 pm on Thursday October 6th you are to submit a written summary of your proposal.
Your written summary should include:

1. Clear identification of the community need, issue, or problem that you have chosen.
You should also provide evidence that this is a community need, issue, or problem.

Downtown Athens is in need of more public parking to accommodate students going to

class during the week. To assess the need, I went straight to the source and interviewed students
on campus. Of the people I talked to, all reported feeling some degree of discontent with the
parking options available on or near campus. Third year Emery Allen lamented her issues with
applying for parking, claiming she signed up to receive a permit “as soon as the portal opened”
and yet did not receive one of her specified preferred lots. As most UGA parking is permit-only
Monday-Friday, being unable to secure a permit for nearby one’s classes typically leads students
to search for other parking options. For some, this means the stress of risking a ticket. Brianne
Kunisch, marketing major in the Terry College of Business, says she has “received three $50
tickets already this semester for unpermitted parking in Hull”, the parking deck next to Terry.
Despite the cost, Brianne says she will continue to park there because it is her “best option” as a
student living off campus. Since the vast majority of students live off campus after their
freshman year, many face the same conundrum. Kate Faraone, who’s house is “about a mile and
a half from campus”, has resorted to walking to class every day through an area she deems
“unsafe” because “parking is such a hassle”. With students risking a ticket and their safety to
park on or near campus, there is clearly a need to be addressed.

2. Clear explanation of the use that you are developing and how it addresses the
community need, issue, or problem that you have identified.

To combat the need for off campus student parking, we have created a plan for a parking
structure to be built on 197 E Broad St. To comply with zoning requirements, we have included a
bottom floor of retail that, combined with the parking levels, constitutes commercial use. This
structure would serve the inflow of traffic specifically to North Campus, the Terry College of
Business, and central campus including the Zell B. Miller Learning Center, Tate Student Center,
and Sanford Stadium. An addition of 156 parking spaces in the area directly next to campus
would help combat the lack of available student parking on campus. Since it would not be a part
of UGA parking, students would avoid the dissatisfaction of on-campus permit zone assignments
and requirements, while being able to pay to park based on an hourly rate.
3. Clear identification of the site that you have chosen.

- Map and parcel ID: 171A4 F001

- Address: 197 E Broad Street

4. A complete site and location analysis of your chosen site and an explanation of why
you believe your chosen site has the proper characteristics to support that use that you
are planning on developing. Your site analysis should include:

a. An analysis of the site’s physical characteristics

Our Site has more of an L-shape to it, and is located directly on the corner of S. Lumpkin
Street and East Broad, also bordering S. Hull Street and Wray Street. Total acreage is 4.34 via
QPublic. Road Frontage on East Broad is 415 feet, 240.6 feet on S. Lumpkin St.,665.1 feet on S.
Hull St., and 174 feet on Wray Street. Just recently the long standing hotel was demolished, so
updated maps and surveys have not been posted/recorded, but since there was a previous
structure we would assume water runoff and other related factors would be sufficient. There is
not much vegetation now on the site since the demolition, and drainage should be no issue since
storm runoff will drain into Tanyard Creek per the Athens Clarke County Watershed
Management site. We have noticed however on QPublic the address is wrong. It states that the
address is 197 W Broad St. but it is in fact 197 E. Broad Street.

b. An analysis of the site’s legal characteristics

- Zoning Code is C-D (commercial downtown)
- Taxed in the downtown district
- Found a limited warranty deed at DB 4474 PG 366
- Georgia Power Company Easement at DB 334 PG 469
- Storm Sewer Easement recorded at DB 1871 PG 269
- Maximum Setback: 10 feet
- Minimum Wall%: 50%
- Transparency. A minimum percentage of any wall facing a public street shall be
transparent glass and shall be provided as follows: 50%
- All properties in the "C-D" zone shall have a minimum floor area (FAR) ratio of
0.40. Expansions of existing development for which at least 50 percent of the
original structure is retained are exempt from the minimum FAR. Plazas and
pedestrian areas, conforming to the standards of section 9-25-8-F.2, shall count as
floor area for the purpose of meeting the minimum FAR. Reductions of the lot
area calculation shall be allowed for flood plain, bodies of open water, wetlands,
riparian buffers, slopes greater than 25 percent, buffers required by section 9-15-
3, and public utility easements, if these areas remain vegetative or landscaped.

c. An analysis of the site’s economic characteristics

 - The location quality of this site is top notch, being located in the heart of downtown and
the edge of UGA’s north campus.
- There are multiple areas an entrance and exit can be put, ideally there being one on S.
Lumpkin and one on Hull Street so that customers can exit the property with a stop light,
so no one has to worry about crossing the oncoming traffic.
- While the market prices are sky high, we believe that this use will provide long term
profits from parking fees, and retail tenants below.
i. An analysis of the site location quality which includes an analysis of the
site’s accessibility, a linkage analysis of the site for the use that you have chosen,
an analysis of the site’s ingress, egress, and circulation, and an analysis of the
site’s exposure.
Linkage Analysis:
What types of people and goods will be coming to the site from other locations
and leaving the site for other locations?
1. The first group of people that will be coming to our site on a daily basis is commuter
students from UGA and those shopping retail. On weekends in the fall, there will be a
large influx of traffic for UGA football games, which would be highly profitable for us.
The perk of our location and use is that people will be leaving to go to other locations on
foot. The luxury of being downtown is that we are very close to all major restaurants,
bars, and shopping for those coming to seek that. For students needing a parking space,
they will also leave on foot by heading to the nearby bus stops, or going straight to
north/central campus located just minutes from our site.
What specific locations will they be coming from and going to?
2. When considering those commuter students and others in the Athens area, maps showed
that most would be coming from subdivisions like Abbey West, Polo Club, Riverbend,
Athens Ridge, and more. When evaluating Athens residents, there will be many coming
from surrounding places like Waktinsville, Bogart, Winterville, and others.

What routes will they be using to travel to and from the site?
3. With Broad being arguably the main street of Athens, many will be using Atlanta Hwy
and Epps Bridge to come in from Oconee County, and students coming in Epps and other
various Athens areas will use the loop, Barnett Shoals, and other popular streets to arrive
at our site.
Question #4: How high/low are the travel costs associated with the routes that
will be used?
4. With distance not being much of an issue because it is so central, the only true distress
cost you will have here is time. Depending on what time of day our customers will arrive
will depend on the cost of their time. Downtown can become very crowded and “tight”,
especially during rush hour. However I will say it again, once you are there, you are
there. In regard to monetary costs, we will be charging an hourly rate through a third
party app that we will partner with.
 - Inward orientation
- Great exposure in the downtown area
- Will have sufficient ingress, possibly congested circulation depending on time of day,
same with egress.

5. A site map that complies with all of the zoning regulations and design standards for
your chosen use Note: Your site map should include the size (in square feet) of all
structures on the site, the location of all of the required parking spaces, the location of
all of the required green space, and all of the areas that are necessary for automotive and
truck access to your site. There is no penalty/reward for the artistic merit of your map. I
simply need to be able to determine whether you comply with the zoning regulations.

6. A rough estimate of your total project cost All you really need is a reputable estimate
of $/SF for a project of the type that you are proposing. Most contractors should be able
to provide you with a rough estimate that is sufficient for this project. Additionally, there
are many online cost estimators that should be able to provide you with an estimate of
how much it will cost to build what you are proposing.

Looking at a nearby site for sale, we assume land acquisition will cost about $3,500,000 for the
4.43 acres.

For the first floor or retail space, we will assume $238/ per square foot based on the Southern
U.S. average. While samples for this average include big cities like Atlanta, we chose to stay at
$238/sq. foot to account for the costs of having multiple stories of parking on top of the retail
space. This will cost about $10,360,000. (43,526 SF x $238/ SF)

The national average cost for a precast parking garage is $55 - $80 per square foot. With Athens
being on the smaller side, we decided that our parking garage would cost $62 per square foot.
This will cost about $8,095,000. ($62/SF x 43,526 SF x 3 stories)

Total Project Costs = $21,955,000

7. A rough estimate of the construction schedule.

Following the timeline of The Mark Phase II, we are underwriting an 18-month construction
schedule. This accounts for the fact that we are doing double the amount of retail space that The
Mark did, yet we are constructing a precast parking garage over the retail space as opposed to
time-consuming multifamily space.

8. (Charlie) A detailed description of how you would propose financing the construction and
operating phases of the development. This section should include:

a. Construction Loan Terms (How much of project costs will be covered?

What will the interest rate likely be? What will the draw schedule look like?)

Construction lender lends 65% of the total project cost ($14,270,750) in the form of 12
equal monthly draws beginning at closing at the beginning of month 7 of construction. Until
month 7, we will use equity to cover construction costs. We assume a fixed interest rate of 6.75%
(current prime rate 6.25% + 0.50%). We assume an origination fee of $107,031 (0.75%).

CONSTRUCTION LOAN SCHEDULE MONTHS 7-19

 b. Permanent Financing Terms (How large of a loan? What will the interest rate
be? What will the loan term and amortization terms be?)

Our permanent loan balance will be $14,270,750. We propose a 6% fixed interest

rate for a 5-year balloon mortgage with principal and interest payments. Monthly
payments are based on a 20-year amortization schedule. We will make a balloon payment
of $12,115,809 at the end of year 5. We assume an origination loan fee of 0.75%
($107,030)

(INTENTIONALLY LEFT BLANK, ANSWER ON NEXT PAGE)

PERMANENT LOAN SCHEDULE

c. How much equity will be necessary to complete the project?

35% of total project cost: $4,994,763

Interest Carry (Construction Loan): $6,261,292
Permanent Loan Payments (Interest and Principal): $6,134,405
Construction Loan Fee: $107,031
Permanent Loan Fee: $107,031
Total Equity Required: $17,604,522
Interest Rate Estimates and Financing Information came from Ryan Warren, President and CEO
of Commercial Banking Company.

Zoning Codes and Ordinances were also looked at on:

http://www.athensclarkecounty.elaws.us/code/coor_title9_arti_ch9-10_sec9-10-6