Parking Requirements o AUD areas – minimum 1 car per residence Applicant can request more o 1 car per residence lowers cost per unit Reduces structure size, bulk and scale Reduces structure cost Allows for more residences in same structure Allows for more open space
Absorption – Rental Lease-up / Sales Rate o Rentals – lease up period (net expense) Realistic time – rents / number of residences Construction loan funds prior to mortgage o Sales – escrow closings per month What market bears --- in a limited time frame 50% multi-family pre-sales for FNMA approval Developer guarantees to repay in 18 to 24 months o Lenders validate up-front or will not finance
Financial Feasibility – Residences Per Acre o Sales – up to 36 residences / acre o Rentals – up to 63 / acre o Employer sponsored sales – up to 63 / acre o Cooperatives – up to 63 / acre o At lower density – likely luxury units Unless owner develops or invest significant equity
.99 Acre Site Existing Variable Density Proposed EmployerDifference Project C – Cota26 u/a62 u/a Actual Units265630 Sales Price$573 K$372 K($201 K) Monthly Payment$3,913$2,651($1,262) Down Payment10% Income Needed$134 K$91 K($43 K) Economic Comparison
.99 Acre SiteEmployer/Co-opApartments Project C – Cota62 u/a Actual Units56 Cost$305 K$242 K Monthly Payment$1,847 - $2,513$1,400 - $2,300 Down Payment10%N/A Income$63K - $86K$48K - $79K Economic Comparison
Financial Feasibility – Residence Mix o Rentals – considerations 60% of residences in Santa Barbara are rentals 55% of rentals are one-bedrooms Average number of bedrooms is 1.50 o Sales – considerations 10% of owned residences are one-bedroom Average number of bedrooms is 2.50 o What product do workers want and can afford?
Financial Feasibility – Property Priority o Santa Barbara is a built-out city Underutilized properties are the opportunity o The owners may not want to sell Cash flow with no debt, avoid development risk o Commercial Properties – great opportunity But are expensive (cap rate) / other uses
Financial Feasibility – Mixed Use o AUD allows retention of the commercial SF Can be rebuilt onsite or sold to others o Residential has lower parking requirements o Residential more valuable on upper floors o Commercial more valuable on ground floor o But compatibility issues – usage and size
Financial Feasibility – Horizontal Mixed Use o Redevelop a block / zone of scale o Housing, work space, retail, other commercial o Centralize parking in multi-levels for all uses o A village –La Entrada horizontal model? o Creatives stay in Santa Barbara / spend $$$ locally
Discussion – Horizontal Mixed Use o Does this help the production of housing? o Does this help economic development? o Are there other benefits? o Are there similar examples elsewhere?
Project C – Cota Rental Design Team Detty Peikert Bob Kupiec David Black Cass Ensberg Bonnie Sangster Jaime Palencia Project Statistics 0.99 Acres 56 Units 1,500 s.f. Commercial 59 Surface & Tuck-under Parking 31% Open Space/Landscaping Lessons Covered Parking makes Room for Open Space 56 Units per Acre
Project C - Rental Elevations/perspectives $371,702 per unit or $1300-$2100 rent per month
Project B1 – Milpas Rental Design Team Keith Rivera Ellen Bildsten Susanne Tejada John Moyer Project Statistics 1.54 Acres 79 Units 10,500 s.f. Commercial 79 Surface & tuck-under Res. Spaces 21 Surface & Tuck-under Comm. Spaces 20% Open Space/Landscaping Lessons 3-4 stories = 20% on grade open space 2-3 stories = 0% on grade open space 51 Units per Acre
Project B1 – Milpas Rental $366,400 per unit or $1200-$1950 rent per month