1933 Elm , DownTown Dallas, Texas

hart oldschool
1933 Elm , DownTown Dallas, Texas Yesterday – 1889

This blog was created in response to The City of Dallas’  eco concerns in the lack of well situated public parking, attractive and well lit pedestrian walk ways with public open spaces. In addition the market for retail activity in the district is untested after years of decline, residential units should continue to developed to create a critical massive need for retail.

Approximate Location
Approximate Location
Majestic Theater Downtown Dallas Texas
Majestic Theater Downtown Dallas Texas
1933 Elm Downtown Dallas Texas, Today -2003 Began Restoration of Exterior Fascia
1933 Elm Downtown Dallas Texas, Today -2003 Began Restoration of Exterior Fascia

About this building:

  • 52,750 square feet
  • 2 separate builds joined together in 1940
  • 3 Floors with 1 floor occupied
  • 1st floor level – still not finished out
  • and a Basement- connects the 1933 Elm and 1930 Pacific Ave buildings- Not quite finished out
  • Home of the old Hart Furniture store
  • City Center TIF
  • Harwood Street Historic District/ built in 1889

Parking and Transit Access:location 2

The Revitalization Plan:

1st Floor Cafe’ and Grocer – Think Trader Joes:

cafe

grocher

The need:

  • Retail
  • Grocery
  • Late Night Studying
  • Increase in residential population
  • for after hour activity

2nd Floor – Swanky Paws

Pet Spa and Pet Minute Clinic
Pet Spa and Pet Minute Clinic

The Need:

  • The documented demand for market rate housing and retail development the Tiff district has not kept up to pace with the growing residential populations.
  • Provides minor medical care
  • Educate on the special needs in urban environmental or city centers where “concrete rules”
  • For unique pet playgrounds

3rd floor – Office Space

office space

The Need:

  • Potential Income
  • Bringing Professionals Central Business District
  • Keeping up with the tend of Architectural Reuses
  • Building on New Urban-ism

Basement – SpeakEasy

Speak easy

The Need:

  • Rental space for receptions and parties – Potential Income
  • Rental space for artistic workshops and events
  • A relaxing space to wait to for an event at the Majestic Theater

The Upgrades and Savings:

The ultimate goal is to maintain the historic facade and character of the building.  The building was built before air conditioning, so we would not be changing widows, we’ll tent them. We will add high efficiency lighting. The building has high ceilings reducing the need for heavy air conditioning; we will optimize the buildings natural ventilation. We will add high efficiency lighting, understanding the basement will take require the majority of the lighting.

  • Custom 5×5 elevator
  • Cage door keeps the historic spirit of the building
  • allows mobility challenged individuals access to the upper floors
custom elevator
Click the link below to see the diagram and specifics on the elevator upgrade
http://www.universalelevator.com/UEC.Sidewalk.Elevator.Pictures.pdf
  •  Mitigate CO2 levels by use the operative windows and upgraded HVAC Systems
  • Enhancements to the lighting systems, which will also help manage energy usage
  • Integrate the buildings existing card access system with the new BAS Automation System  which will activate lighting and HVAC in an area before arrival
  • This BAS tracks and measures electricity usage, as well as atmospheric conditions in and out side of the building, and will prompt maintenance.
  • Adding energy star rated equipment and appliances including copiers, kitchen equipment, and ext.
  • Tenting windows to increase performance by blocking heat form the ultra pilot rays of the sun
  • reduce water consumption with water efficient  pluming

>>> automatic urinal with 1/2 gallon water per flush

>>>low flow faucet with aerators

>>>coffee stations will also have low flow aerators

>>>the design will be connected to the BAS to notify maintenance of any leaks

The Financing:

Green design has rapidly emerged as virtual requirement in real estate equity financing.  We anticipate recovering some proportion of green-related costs through reduced operating expenses. Also, for Dallas city green construction codes this would be more desirable to commercial tenants.  Likewise, it will demand a markedly higher resale value. 

pricing

Hart Building DCF Analysis V 7.5 3

  • asking price 2.6M
  • Anticipated 870 thousand in renovations and upgrades
  • Loan LTV 80
  • Debt Service Coverage Ratio (DSCR) 1.50%
  • Interest 4.0%
  • Amortization 25 Years
  • Term 20 Years
  • Loan Cost 1%
  • Loan Amount 2,776,000 which is 80% of $3,470,000
  • Investor Equity by IBR corp of $694,000

Financial Structure – IBR corp will receive annual year end payments of 250k for 10 years, building sale at the end of the 10th year, at which IBR will receive their initial equity of 694000 plus 50% of the waterfall which would be 593,420.50

The remainder of after tax annual revenue will be between 92980 and 121552, which will go to the team which will also receive 50% of the waterfall at sell equaling 593420.50

This is all based on lowering the rent per square foot form 1570 per square rental, on a Class A building at 90% occupancy

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