Architecture, Building, and Planning
NYC History of Real Estate (Brief Overview 1 page max)
History will have it that the oldest joke among real estate brokers focuses on perspective of three words: location, location, and location. The joke has survived the trends of time mostly from the fact that most of what it entails has immense truth to the aspects that govern real estate. Defining real estate by location embodies aspects that entail to real estate in both microeconomic and macroeconomic perspectives. It is for this reasons that the city of New York rose over other cities to become one of America’s greatest metropolises, not as a product of its natural harbor, but mostly from the location of the harbor in the globe.
A typical city contrary to Washington dc that attributes its creation from the influence of politics arises from sheer impulse. Sometimes reason for the formation of a city may be to compensate technological endeavors such as London that came to the existence since it hosted the bridge that connected Thames to the Romans. Most cities came into existence because of economics. They also joined cities together such as St. Louis that connects Missouri and Mississippi. New York inception and dominance came from the advantageous location of the port characterized by natural advantages over other ports. The harbor location compared to other cities such as Boston or Charleston with closer proximity to the sea was strategic. The preindustrial era commercial activities concurrently led to the formation of the New York Harbor. However, despite the added advantage that the harbor had over other cities it still did not rank as the first in terms of the cargo arriving in the port.
American Revolution negatively affected the stature of New York from the occupation of the British in a seven-year period. The eligibility of the harbor real estate viability profoundly compromised from a fire outbreak at the time of the British occupation that ended up destroying more than a thousand houses hence affecting the population of the city. New York recovered its status quo in the years between the civil war and the opening of the canal in the year 1825. In the 36 years between the periods, the city grew immensely building an aggregate ten miles of street front every year. The exponential growth of the city allowed it handle two thirds of the countries imports and a third of the exports. This meant that half of the American international commercial endeavors interlinked through New York. This increased property value in the estate immensely from demand value created by the cities commercial endeavors. By 1920, the city had grown to be the greatest port in the world contributing to the cities real estate relevance up to this time.
What type of Team would you put together? Whom would you especially need given this scenario?
The occurrence of hurricane Sunday is an aspect that needs specific consideration especially in the construction of buildings in the harbor. To account fully for all the impairments that would derail the process of construction, immense importance should be associated to the selection of a team that will have the responsibility of overseeing to the construction of the building. Construction of a building requires that all contingencies associated to the building construction with respect to the location and the stature of the building be accountable before actual construction begins. To ensure that all aspects of the building meet the contingency and building structure specification, as the building developer my intent is to assemble a team of experts that ensures that the building structure will meet exact specifications.
Considering that, the building location has proximity to water; caution will be a subject of immense consideration building the multipurpose building. The building is a six storey mixed used construction containing floors each with a specified purpose. The building sixth floor will host college students, the fifth floor will act as the mechanics room the forth and the third floor will host residents the second floor will have the building car park, and the ground floor will host a retail grocery store. Considering the havoc left after the hurricane sandy, the building construction will need to embody all emergency and contingency requirements to protect human life.
Project manager
As the project developer, I will first employ a project manager who will act as the project overseer. The project manager will have the responsibility of running the project by ensuring that all requirements reach the construction site at the required time and the proper capacity. The project manager will also act as my confidant and advisor in essence giving me his opinion in an area that might appear contentious or that has a conflict of interest to the purpose of the building. The project manager also has the responsibility of ensuring a smooth transition of the different phases that characterize the project at the predefined time slots to ensure that both the estimated project budget and the project recourses do not become overworked.
Civil engineer
A civil engineer specializing in water and environmental projects will have the responsibility of dealing with all aspects that require reclamation of land or connecting of water in the building. The civil engineer will also have the responsibility of implementing construction concepts that advocate for the building location in essence implementing measures that will counter the probability of water damage in case another tragedy should occur. The civil engineer focuses his prowess in ensuring that the residences of the building have the best preventive and contingency facets implemented in the building. Incase another flood should occur; the civil engineer work on the building should ensure residence of the building that the best counters to flood damage already exist in the building. The civil engineer also has the responsibility of inspecting and conducting the construction of the drainage and piping of water into the building.
Electrical engineer
The electrical engineer knowledge in wiring and implementation of electricity in the building with consideration to the building location will provide the building with the best electrical connection. Electricity and water remain as two known mortal enemies around with their collision assured to cause damage. This, therefore, means that the engineer’s job description in the construction process is to ensure that the two no matter the high expectation that they will collide do not cause any damage to the building or harm residence. The electrical engineer will have the responsibility of implementing safety measures in the building to provide tenants with escape options in case any tragedy should occur.
Construction engineer
The construction engineer is the overall director of the building construction. Through the construction engineer, aspects that need implementing in the building go through him. The engineer is the chair of the construction of the building by providing the required instructions to the workforce when implementing building structures.
Public/Private Roles (i.e. Regulatory, Entitlements, Incentives, Eminent Domain, Zoning
Commercial real estate uses equity investment acquired through private or public transactions. Real estate constitutes of private and public investments that are the subsidiary organization of property generating income with the inclusion of property not actively generating income. In both cases of investment, property gains market and exposure. However, the two differ in terms of the different returns from investment and the risk involved.
Regulatory
Real estate governance requires follow-ups on requirements that subject legitimacy in terms of the of property value especially in cases where the building acts as collateral to a loan or acquires finance from a third party. For regulatory purposes, the proposed building will implement appraisals that will provide a background to the measurement gauge of the building value. The appraisal will act as collateral to the building value while in construction.
Entitlements
Entailments entail to the approval gained from the government in terms of the jurisdiction the property falls in when classified. Since the process attaining entitlements at most cases is time consuming, I will ensure to be proactive on the matter by presenting the building plans before the inception of the construction process. With entitlements that may prevent construction become infinite.
Zoning
Zoning contextualized is a legal method applied by governing bodies to provide restrains to the application of real estate with consideration to the area of application. Typically, a segregated zone only allows use of property in a specified zone. The building zoning protocol stipulates the area can host a residential building of three units per lot. The zoning unit also allows for the use of the structure for commercial purposes.
Community Outreach
Community outreach refers to the application of a method that advocates for the involvement of members of the community with the intention of broadcasting a message or implementing an action that transforms people behavior. After the events of the hurricane sandy, a community outreach program will suffice for the despair most of the people in the community suffer by providing a scapegoat where people can regain their self-esteem and composure. Construction of the building will provide the community with a reason to reclaim lost hope. The building constructed at post hurricane sandy will implement the safety measures disregarded by previous buildings and will take sentiments offered by community members into consideration when constructing the building.
Marketing Plan
Considering the buildings location, the strategies of marketing have to be appropriate since they will determine the how well the building will be popular among the individuals interested. Being a mixed-use building, it has many advantages though the location happens to be a disadvantage in terms of insuring. Marketing the building is a very vital step because it determines what type of people will establish their business premises on the building. There being a students’ residential hall on the building poses a challenge to the personnel responsible for the buildings marketing plan. To establish the most significant marketing plans for the building one has to be knowledgeable of the most reliable marketing strategies. This way the building owners will have an assurance that the building marketing will be effective thus guaranteeing insurance for the building.
The strategies that the personnel in charge of the buildings marketing have to consider include things like knowing who their customers are, how to reach out to them, as well as some of the things that motivates these customers. Once the personnel responsible for marketing have the appropriate knowledge concerning their customers then they can have an assurance of a successful marketing plan. Another efficient strategy that is valuable for the marketing plan is having knowledge of who the competitors are in this case. This gives the marketing personnel an opportunity to differentiate themselves from their competitors. The difference relies on the types of services provided by the competitors as well the modus operandi for approach and sales. In addition to the marketing strategies stated above, the marketing personnel have to ensure that they come up with the most appropriate marketing media as well as the messages.
Environmental Issues
Several environmental issues are likely to influence such a building given its location and the inhabitants. Being located near large water mass presents several issues that can result to health hazards and other harmful status on the occupants of the building. If the buildings administration fails to address such issues that result from the environment then it stands risks of greater heights to the inhabitants of the building. The environmental issues that appear in such situations are always manageable and avoidable by the buildings administration. The personnel responsible for the building have to be familiar with various environmental problems that surround the building since most tenants will require awareness. It is not wrong for the people responsible for marketing the building to be aware and letting the tenants know some of the environmental issues that they stand against.
Some of the environmental issues that are common when dealing with such phases of business include the quality of water that happens to be one of the most common concerns. In most scenarios, clients will want an assurance concerning the water by having the water tested to determine whether it is appropriate for human consumption or not. The source of the water for the building occupants has to be efficient to avoid cases of water spreading diseases. Other environmental issues that need contemplation include radon, which is a gas that appears to be present globally. Other probable environmental issues are soil contamination, toxic molds that are likely to be present in the air, in addition to ground water contagion. These are controllable issues and the buildings administration has the responsibility of taking necessary action towards dealing with the issues.
Area Site Selection
The buildings site selection is necessary in that it determines the type of clients that will be interested in the scenery from the buildings location. For this case, the building stands tall near a water body that makes the site quite wanting since not many buildings get such a beautiful and outstanding landscape. The advantages to this building that earn it more interest include the fact that it is structured next to a water body. When determining the site to set up such a similar structure one has to ensure that, he has knowledge of the customers that he or she is targeting. Failure to put this into consideration then there is a great significance that not any single insurance company will be will be willing to insure the building.
Being a mixed-use building with various individuals as well as businesses, the site selected happens to be the most appropriate though the fact that there are students on the same building poses a threat. It is difficult controlling the way students act and with that reason making it risky having them next to the water body. For the hotel and other business premises on the same building there is minimal risks since they need the scenery only not going to the water body that is presently next to the building. There being residential homes on the same building influences other factors in that there is a probability of having children around the building who will require a random monitoring sequence. This is so because children mischievous and may end up playing around the water body which is perilous.
Incorporating Green Sustainable Building Measures
The measures that relate to a green sustainable building in the present times have turned out to be of a greater aspect than in the previous times. Incorporation of the measures in such buildings happens to helpful in that there are avoidable. Majority of present homeowners prefer incorporating the green sustainable measures since they serve a significant factor. The advantage of having these measures is the fact that they are helpful in the preservation of the economy. The same measures assist in the cutting down of amount of toxic waste that the building construction may result to by the time the project is complete. As part of the construction project, there is maximization of energy and the incorporation of the measures ensures that the use of energy is less than the usual.
The Green measures are helpful in the cutting down of certain costs since its focus is on the reduction of consumption of energy as well as conservation of the resources. The energy in use during the construction project stands a chance of experiencing an amplified efficiency if there is incorporation of the measures. The insurance company has to see an implementation of the measures and this is evident only if the applications are noticeable at the end of the building construction. Considering natural calamities that are likely to occur such as hurricanes and the buildings location, it is appropriate that the constructors consider applying the measures to limit the cost relating to the buildings construction project. There are benefits for the occupants to the building if the measures are in place during the construction process. The insurance company guarantee insuring the building if the measures are in place.
Tenant structure/Mix
The impact of the Hurricane Sandy in the New York City has affected the number of tenants willing and capable to pay retail building in the entire city. Almost all the people have dreadful moments that affect the tenants in almost all the places. The number of the building available for the tenants to rent has also decreased. Since the hurricane lead to the destruction of property, a large number of rental houses were also destroyed. For this reason, the number of people willing to migrate and find safe houses has increased. However, the number of available and vacant houses has depreciated because of the increased number of the homeless citizens. The property owners have taken advantage of the situation and increased the price of the monthly rental fee needed to sustain the tenants. The unfortunate property owners lost millions of capital during the hurricane occurrence because of destruction of the buildings.
In pursue to attract the frightful tenants; one of the vital aspects to consider is the location of the rental houses. Since the building is a mixed use with various other uses, the best way to attract the tenants is offering the top most flow for residential houses. One of the leading promoters of the building to the tenants is offering the top flows to the tenants. Since the building will be a five-storage building, the top flow will be for residential tenant’s purposes. During the destruction of the hurricane, most tenants’ property was destroyed because of the occupation of the lower flows. The water destroyed most of the household properties for the tenants living in the lower floors of the building. For this reason, offering the top most flow for the tenants will attract more customers.
Building the parking structure
In most of the building, the parking structure is always situated on the ground floor because of the ease of access to the cars. Most of the rental houses always have the parking structure on the ground floor that involves all the vehicles of the tenants. Situating the parking structure on the ground floor reduces the congestion of the cars with the people. Situating the parking structure on the ground floor also makes it possible of the people to leave the compound at their own time schedule. The increasing demand in the cars in the current world has made it possible for almost all the people to own vehicles. For this reason, situating the parking structure on the ground floor makes it possible for cars to move in and out of the building with ease. However, after the occurrence of the hurricane in New York, the water destroyed a large number of cars owned by tenants. Most of the people immediately migrated from the house with the ground floor parking structure to rental houses with other floors. Since the cars are an expensive investment, the tenants preferred rental buildings that have cars parking structure on other floors apart from the ground floor.
The car parking structure would be located on the second floor, which would be constructed with waterproof walls. The essence of building and locating the car parking structure on the second floor is to ensure that the occurrence of hurricane in the future does not destroy the tenant’s property. One of the aspects that attract tenants into living in a given building is the security of the property. Securing the cars by building the car parking structure on the second floor will increase the demand of the houses vacant to the customers. Locating the car parking structure on the second floor will also reduce the theft of cars in the building. The tenants will be expected to use the rare unwinding path on the rare side of the building to drive the cars to the second floor. Each tenant will have adequate parking space for the cars hence no interference from other car owners living in the building.
Mechanicals position
Almost all the rental houses always have mechanical room situated on the lower flows that controls most of the mechanical activities in the buildings. The mechanical room is usually associated with the electrical equipment that controls the flow of power in the entire building. The mechanical room depends on the size of the building to determine the equipments in the room. However, in most situations, all the rental buildings always have a room that controls all the electric and mechanical activities in the building.
Since the building is a multi user building that encompasses various floors, there will be need of the elevators. The elevators will assist in the movement of the people from one floor to another without much energy. The use of the lift needs frequent servicing from specialized technicians. For this reason, the mechanical room is vital in controlling the speed of the elevators and solving the problems related to the elevators. For instance, the occurrence of the stagnant lifts can only be solved in the mechanical room by trained technician. The building will also consist with boilers; water pumps heat exchangers, back-up generators and water heaters. The mechanical room will also consist of most of the electrical connections in the building. This will reduce the instances of shocks related problems in the entire building.
In some situation, short circuits always occur in the building because of high voltage flow of electricity in the building. For this reason, locating the mechanical room on the third flow will reduce instances of shock in the building. Placing all the mechanicals in one room will also make it easier in identification of problems in electricity short-circuits in the buildings. The caretaker of the building will have keys to the mechanical room and open it only to specified authorized personnel. The location of the mechanical room on the third flow will also reduce the chances of the room to get into contacts with the water in case of a hurricane.
Backup Systems and Emergency Exit Systems
The mixed-use building consists of the various floors that are used for various purposes such as the car parking structure, residence hall for the college students and a retail grocery on the lower flow. Almost all this floor requires power, electricity for people to be capable of operating the normal routines of the building. Without power, electricity in the mixed-use building, it would discourage the tenants from operating in the various houses. One of the aspects that would used to attract the tenants into occupying the vacant houses is the fact that the building will have back-up source of electricity.
The availability of the back-up power system will also enable the movement of tenants into and out of the building at any given time. The availability of power will determine the freedom of movement of the people into and out of the building. The availability of the back-up power source will also assist in the continuality of business in the building especially in the retail grocery shop. All the tenants willing to commence business will automatically are attracted into the building. This is because of the availability of the twenty-four hour business attributed by the back-up source of electricity.
The back-up power source will also enable the continuity of the education program in the residence hall for college students. The hall will continue offering educational program to the students even during the black outs. The back-up source of electricity will be a generator that will be capable of producing enough energy to the entire available floor. The emergence exit doors will be located on every floor using the stairs to the ground floor. Each room will be installed with firefighting equipment such as the fire extinguisher to assist in fighting the fire.
Proposed Financing Structure
Financially analysis refers to the assessment of the business in regards to the profitability that the business is expected to achieve over a certain time interval. The financial analysis of a project also refers to the suitability and viability of the business towards both the customers and the owner of the business. In establishing the financial analysis, it is vital to include numerical details obtained from income and financial statements concerning the business. The management in charge of the project always determines the continuity of the project in regards to the results obtained from the financial analysis. The decision on whether to continue with the business or to discard the business is always obtained from the results of the financial analysis. In accordance to the information obtain from the financial analysis report; the management of the report will determine whether the project is profitable hence to make it exist or discard.
Since the capital to commence, the construction is retrieved from the moneylender then it implies that the project needs to be highly profitable. The moneylender offers ought debts to the creditors on terms and conditions that the money is to be paid back over a certain period and with profitable returns. This means that the mixed-use building needs to be capable of generating enough capital to refund the loan and still offer profit to the owner of the building. The best way to undertake the financial analysis is ensuring that the mixed-use building is capable of sustaining solvency in the sense that it is capable to provide expected amount of capital. To ensure that the income received is appropriate, the best mechanism to use is the comparison of the capital used for the construction of the building and monthly income received in the first three months.
Renditions
Rendition is the act of surrendering an item from ones ownership to another whereas in this case it might relate to the surrendering of the building from the owner to debtors or anyone with prior ownership. This can happen if the owner is debt to another person or organization. In other cases the rendition is issued during a handing over act for instance if the buildings ownership transfers from one person to another. It is a form containing details of the previous and the current owner of the building. For this case, the rendition form is evident if there building has had a debt that exceeds its value. The rendition serves various major purposes in the handing over process of the building. Some of the details that are on the rendition include the name of the building’s owner, an identification number for the building issued by a towns council, there is another section that contains the tax year, and personal details about the building owner. Other details present on the form issued for rendition include a legal description of the land as well as a section for signatures and dates.
Transmittal letter
December 18, 2012
Dear, financial lender
Subject: Information Concerning the Construction of the Mix Use Building
In relation to the yet construction of the mix use building that is expected to serve various purposes, the report written gives an overview of the credential of the building. In the report, all the floors of the building are discussed in accordance to the importance of the project.
The report also offers a detail explanation to the various reasons that led to the construction of the building. Since the occurrence of the hurricane in the New York, most tenants have feared settling in building adjacent to large water bodies.
The report offers a detailed explanation of the unique features of the building and the benefit of the building to the society. The report also offers a detailed explanation of the approaches to the construction, scope of work, work plan, contractual conditions and financial analysis.
I hope the report will be of benefit and merit your approval.
Respectfully yours,
The Developer
Financial Analysis
The buildings financial analysis dwells on the costs incurred during the construction process as well as tax. The analyst carrying out the buildings financial analysis has to consider factors such as the flow of cash in addition to the returns relating to tax. On the financial analysis there is monitoring of any current acquiescence that have a connection to financial convents. The essence of carrying out a financial analysis is for the determination of the costs incurred during the buildings construction process. It serves a valuable purpose since the analysis determines the various places that money was effective maybe in the acquisition of materials for construction as well as payments made to the work force that were part of the construction project.
The financial analysis for the mixed-use building has to cover several aspects since there are residential homes on the same building, grocery store, as well as a residential hall for students. There is need to consider other aspects such as the carrying out credit investigations alongside analyzing if the construction process involved any forms of debts. All financial statements have to be present to smoothen the financial analysis process and to connect any form of materials that are likely to establish financial circumstances in addition to the trends. There is need of having credit files that contain any form of records with efficient documentation for future reference. Maintenance of the buildings currents accounts results from a sufficient analysis carried out.
Data chart
Real estate most essential part of business is to recognize the value of property and interconnect it with location. Hence, to gain perspective on the value of property, analytical data containing statistics on the current price of property will help in determining the value of the building
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Work Cited
Miles, Mike E, and Mike E. Miles. Real Estate Development: Principles and Process. Washington, D.C: Urban Land Institute, 2007. Print.
