1. 1 Ch 11 Residential Land Uses

2. 2 Outline I. Types of Residential Development II. The Real Estate Development Process III. Millford Hills Case Study IV. US Assets Group

3. 3 I. Types of Residential Development  single-family detached houses  single-family attached houses row houses/townhouses plexes patio or zero-lot-line houses  multifamily residences (rentals, condos or coop) garden apartments (2-3 floors) mid-rise apartments (4-8 floors) high-rise apartments (> 8 floors)  manufactured homes  second homes (timeshare concept)

4. 4 II. The Real Estate Development Process  I. concept development  II. feasibility analysis - legal analysis (zoning compliance) - market analysis: delineation of the market area analysis of demand & supply factors:  employment  disposable income  population  household characteristics  absorption rate  competing projects  other - financial analysis  III. development of land & building or improvements  IV. marketing/selling

5. 5 III. Millford Hills Case Study  Real Estate Today Feature p. 236 Milford Hills Project involves the purchase of a piece of land and a house for $ and the sale of lots at $30,000 each. - What are some important observations from the financial analysis? 1. Is this a good analysis? Why? 2. When do cash inflows start? 3. What is the largest cumulative negative CF and when does it occur? 4. What are 2 characteristics of the real estate development industry?

6. 6 V. US Assets Group  Developers vs. Builders  US Assets Group – Background Information  Projects: - Hunters Green (Tampa) - Vizcaya (LBK) - En Provence (LBK) - Beau Ciel (Sarasota) - Orchid Beach Club (Lido Key) - Founders Club (Sarasota)  Important Factors for Success - Market knowledge and experience is very important - Stay in your geographic area of expertise

7. 7 Ch 12 Commercial and Industrial Land Uses

8. 8 Outline I.Shopping Centers II.Office Buildings III.Industrial Facilities IV.Lodging Facilities V.Special-Use Properties

9. 9 I. Shopping Centers  Shopping Centers grew after the advent of which invention?  Types of Shopping Centers: → neighborhood shopping center (30,000-100,000 SF leasable area, on 4-6 acres) → community shopping center (discount or junior department store: 100,000-300,000 SF leasable area, on 10-30 acres) → regional shopping center (1-3 full-line department stores: 300,000-750,000 SF, on over 30 acres) → super-regional shopping center (4 or more full-line department stores: 750,000-1,000,000 SF) → other types of shopping centers - factory outlet centers - specialty shopping centers

10. 10 Shopping Center Development  Important factors in the feasibility analysis: trade areas (primary and secondary) market size competitive survey site location tenant selection

11. 11 II. Office Buildings  Office buildings are categorized by: → quality and amenities (class A, B, C, D) → location central business districts (CBD) secondary office nodes office parks → single vs. multi-tenant buildings

12. 12 III. Industrial Facilities  Types of businesses: - manufacturing - warehousing - distribution - garage space - research & development  Important Issue: Pollution CERCLA (Comprehensive Environmental Response Compensation & Liabilities Act of 1980) Includes: National list of polluted properties Innocent landowner act

13. 13 IV. Lodging Facilities  Types of Lodging Facilities: → commercial/convention hotels → highway or airport hotels and motels → resort hotels → extended stay hotels  Risk level of hotels  Ownership of Marriott and Ritz Carlton hotels

14. 14 V. Special-Use Properties  Examples: → hospitals → nursing homes → schools → marinas → power plants → sports complexes  Key variables for a market analysis of a baseball stadium