REDEVELOPMENT OF THE UNION PACIFIC FREIGHT TERMINAL
LOS ANGELES, CALIFORNIA
by
D. Michael Gray
Master of Business Administration
University of California at Los Angeles
1973
SUBMITTED TO THE DEPARTMENT OF URBAN STUDIES & PLANNING
IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE DEGREE
MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT AT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
SEPTEMBER 1985
D. Michael Gray 1985
The author hereby grants to M.I.T.
permission to reproduce and to distribute publicly copies
of this thesis document in whole or in part.
Signature of the author
D. MicVael Gray
Department of Urban Studies
Planning
August 9, 1985
Cert if ied by
Assistant Professor of Plannin
C i
and Re
Lynnd B.
agalyn
Estpte, Deve)cgment
Accepted by
Lawrence S. Bacow
Chairman
Interdepartmental Degree Program in Real Estate Development
MASSACHUSETTS iNSTITUTE
OF TECHNOLOGY
SEP 0 5 1985
LIBRARES
1
Redevelopment of the Union Pacific Freight Terminal,
Los Angeles, California
by
David Michael Gray
Submitted to the Department of Urban Studies & Planning in
partial fullfillment of the requirements for the Degree of Master
of Science in Real Estate Development.
ABSTRACT
This thesis is an investigation of the feasibility and
highest use for the Union Pacific Freight Terminal located in Los
Angeles, California.
The site consists of 20 acres located in an
industrial strip between the Downtown area and the eastern
Hispanic neighborhood.
The site was selected because of the
architecturally interesting brick construction, the detailing,
the potential for a joint venture development,
the potential tax
benefits, and the potential to create a Downtown focal point.
Redevelopment of the area has begun with the construction of
a
new
produce market across the street from the
site.
Development is constrained by the functionally obsolete footprint
and by a seismic ordinance which will require a $10 per square
foot investment for compliance.
Existing zoning will permit all
desired uses but the site is not located on important existing
bus lines,
a sever handicap for Hispanic residents.
The
demographics within 1 1/2 miles of the site, consist of a dense
population concentration but an extremely low median income of
$10,108.
After reviewing various potential industrial, retail and
office
uses the development program proposes a mixed use
development.
The first phase would consist of a Farmers Market
and
specialty retail services such as restaurants and
a
convenience store.
Later a warehouse store could be added based
upon the initial cash flow. In the final phase the last existing
building
is renovated into additional office space.
The
financial reward
is maximized and the risks minimized
in
the
Phase One development,
with the other phases showing marginal
returns at conservative rental rates. However the combination of
risks will make it very difficult to finance even this portion
even with the land contributed.
Because of the location, the complexity of the mixed uses,
potential
financing
problems,
and
the
poor
income
characteristics, the conclusion of this thesis is that the market
should be tested first with a Farmers Market.
The success of
this
relatively inexpensive component would
validate
the
development proposal and provide viability for a financing
request.
2
TABLE OF CONTENTS
INTRODUCTION ..............................................
.6
Site Context............
..................................
7
History of Los Angeles...................................7
Economic Profile: Los Angeles............................9
Redevelopment and the ProduceMarket....................11
Constraints............................................14
CHAPTER I: USE ANALYSIS....................................15
Site Attributes.......................................15
Physical............................................15
Environmental..............
.....
............... 18
Legal................
........................
........... 20
Highest Use..............................................22:
Industrial............... .
.
.
................. 22
Retail...............................................23
Office..............................................32
CHAPTER II : DEVELOPMENT PLAN.... ............................34
Cambined Mixed Use Development ................................
34
Deal Structure............ ..................
.............
36
Phased Development.......................................36
Risks..................................................39
Development Strategy.....................................40
SUMMARY ....................................................44
EXHIBITS...................................................46
APPENDIX A: CENSUS DATA................................. . .. 61
APPENDIX B: FINANCIAL PROJECTIONS...........................65
Sources of Information...................................66
Phase One................................................67
Combined Development ..................................... 76
Limited Development......................................85
. .......................... ...... 92
BIBLIOGRAPHY...............
3
LIST OF TABLES, EXHIBITS, AND APPENDICIES
Tables
Table 1
Population Camposition, City of Los Angeles, p.9
Table 2
1981 Urban Family Budget Comparison, p.11
Table 3
Existing Structures on the Union Pacific Site, p.15
Table 4
Site Timed Driving Study, p.18
Table 5
Demographic Study for Census Study Areas, p.19
Table 6
Los Angeles Seismic Rating Classifications, p.21
Table 7
Financial Feasibility Industrial Development, p.23
Table 8
Family ExpendIture Patterns Classified by Family
Income Before Taxes, p.24
Table 9
Projected Trade Area Product Demand, p.25
Table 10
Daytime Population and Projected Service Market, p.26
Table 11
Annual Los Angeles Visitor Spending, p.26
Table 12
Renovation and Proposed Construction Summary, p.34
Table 13
Proposed Use Surnary, p.35
Table 14
Comparative Financial Suinary, p.39
Table 15
Phase I Financial Suninary, p.43
Exhibits
Exhibit I
Site Location: Los Angeles Region, p.47
Exhibit II
Site Location: Downtown Los Angeles, p.48
Exhibit III
Aerial Photo Site Location, p.49
Exhibit IV
Zoning Regulations, p.50
4
Exhibit V
Predominate Use Map, p.51
Exhibit VI
Downtown East Map, p.52
Exhibit VII
U.S. Census Map: Study Areas, p.53
Exhibit VIII
Median Income Less Than $10,000, p.54
Exhibit IX
Easements, p.55
Exhibit X
Site Plan: Existing Structures, p.56
Exhibit XI
Proposed Site Plan, p.57
Exhibit XII
Development Cost Budget, p.58
Exhibit XIII
Operating Proforma Stabilized Year, p.59
Exhibit XIV
Project Assumptions, p.60
Appendices
Appendix A
Census Tract Data, p.61
Appendix B
Financial Projections, p.65
5
I.
INTRODUCTION
This thesis will investigate the feasibility of redeveloping
an
existing
California.
the
railroad freight terminal located in
This investigation will consist
terminal's site attributes,
Los
Angeles,
of a discussion
of
the demographics of the market,
an evaluation of possible uses as well as a proposal for the best
utilization
and
best
of the site.
The evaluation of the site's
use will include both rehabilitation of
structures
the
existing
and redevelopment of the entire site.
structures
are
in a
deteriorating
highest
existing
Currently the
status
partially
leased on short-term leases to local produce distributors.
The
site
was selected for evaluation because the
structures represent architecturally interesting brick
containing gargoyles and other decorative detailing.
available
by
represents
an opportunity for utilizing investment
the
time
the
these
developer,
its
inexpensive
automobile
urban center.
and
buildings
experienced
Angeles
buildings
The site is
for joint venture development minimizing the up
investment
At
existing
the age
were
greatest growth,
the
buildings
credit.
Los
Angeles
constructed,
tax
and with the availability
transportation
As a result,
of
became
a
lacks lacks the sense of a downtown
of
decentralized
more than any other major city
6
front
center.
Los
Combining
based
lack of an urban center with a transportation system
this
upon automobiles, has resulted in few affluent downtown residents
and
a
deserted
This site
an
represents
create a historic retail focal point in
to
opportunity
evening environment.
a
city
with relatively few historic buildings based upon its more recent
growth into a major population center.
Site Context
side
Pacific Freight Terminal is located on the
Union
The
Exhibit I places the site in the southeast corner of
Exhibit II, a more detailed street map, shows
the downtown area.
location
of the site in this downtown area.
visible looking north from the Santa Monica
10,
Olympic
of Alameda Street south of 8th Street and north of
Boulevard.
the
Interstate 5,
Angeles
freeway,
the Santa Ana Freeway,
Produce
It
60.
California
market
in an
is
U.S.
101,
Interstate
area,
freeway,
and the Pomona
located adjacent to
industrial
is
site
The
west of the intersection of the Golden State
just
Freeway,
east
Los
the
Exhibit
III,
approximately 1 1/2 miles from the financial and office center.
Street Address:
840 South Alameda
Legal Description:
Tract 2315
Distract Map 120 B 213
Los Angeles History
City
The
over
excess
the
of
activity,
of Los Angeles has grown at an
astonishing
past century growing from only 50,000 citizens
3 million.
This growth has been fueled by
pace
to
in
economic
the region's desirable climate, and the City's ability
7
was
Angeles
The City of the
to adapt its environment to its needs.
Neve,
established in 1781 by the Spanish governor Felipe De
and founded by eleven families who were promised their land after
homesteading for five years.
In 1849,
Army made
when the U.S.
In 1880, the
its first survey, the pueblo had 2,000 inhabitants.
Santa Fe Railroad completed its link with the Midwest and by 1890
the
events
two
years
Over the next
had increased to 50,000.
population
City's population.
increase
were critical to a tenfold
As
a result of this discovery,
Doheny.
Angeles
had become the oil center of the West.
the
beginning of construction in 1905 by William
the
City's
With
North.
economic
the
activity
in
the
The first was the discovery of oil in 1892 by
William
first
thirty
1890
Los
The second
was
by
Mulholland
water aqueduct from the Owens Valley
availability of
and
land
to
of
the
increased
water,
population
between 1920 and 1930 resulted in
By 1930 Los Angeles was the
growth from 576,673 to 1.2 million.
nation's fifth largest city.
In 1940 the City's first freeway was completed,
link
Pasadena.
with
The
new
mobility
and
a
the
six-mile
continued
availability of new sources of water from the Colorado River
California
Northern
combined
into
By 1950,
business and residential flavor.
interchange
foot
height
The
Los
was completed and in 1956,
disbursed
a four-level freeway
the removal of the
limitation paved the way for
Union
Angeles's
and
high-rise
Pacific Freight Terminal is accessible
150-
buildings.
to
this
large population concentration through the City's freeway system.
By 1980,
the population had reached 2.8 million and during 1983,
8
Los Angeles passed Chicago and became the nation's second largest
of
City
the
Department,
approximately
3,046,696.
the 1983 the population was estimated at
and
15,500
Planning
grow steadily at an annual rate
to
continues
the City
to
According
city.
According to the 1980 Census, the City of Los Angeles represented
of
40%
nearly
total
the
population
of
the
Los
Angeles
Metropolitan Area, which stood at 7,777,403.
Economic Prof ile
The City of Los Angeles has a diverse racial and ethnic mix.
and
Between
1970
persons
increased,
1980,
while
constant.
relatively
and
the percentage of Hispanic
the
percentage
Blacks
of
Asian
remained
which
The City's Hispanic population
is
located directly to the east of the Union Pacific Freight
mostly
Terminal
is
larger than any concentration of
people in the world except for Mexico City.
Spanish
speaking
This Hispanic market
this
is a key to any comercial development of this site because
population represents a primary retail and employment market
for
the area.
Table 1: Population Composition, City of Los Angeles
%Change
1970
1980
Hispanic
18.0%
27.5%
Black
17.3
17.0
(1.7)
White
Native American
Asian
60.7
0.3
3.7
48.3
0.6
6.6
(21.4)
100.0
78.4
100.00
Source:
The
52.8%
100.0
City Economic Development Office. An Economic Profile of
Los Angeles. Page 2.
Los Angeles-Long Beach SMSA is the nation's
9
largest
retail
market.
Taxable
billion
in 1982,
buying
while total county sales exceeded $31
alone represents one-third
area
billion
the
of
population,
retail sales of the three West Coast
and
power,
$13
The Los Angeles
State Board of Equalization,1982).
(California
marketing
retail sales in Los Angeles alone totaled
states
(Sales and Marketing Management Magazine, 1983).
of
Many
the nation's top industrial companies
principal headquarters in Los Angeles.
MCA,
Teledyne,
Lockheed,
Richfield,
Hughes
International.
Aircraft,
Of
Medical
American
and
70
the 100 largest firms in California,
Combined 1982 revenue for
largest industrial firms was more than
10
area's
Among these are Atlantic
Occidental Petroleum, Northrop,
Carnation,
are based in Los Angeles.
these
their
have
These same companies employed nearly 96,000 people
of
the
billion.
$95
(Los
Angeles
Times, 1983).
The
business
major
City of Los Angeles is unique among the nation's
centers
in
the extent to which its
buildings are dispersed throughout the region.
office
high-rise
Currently, there
space
is a total of 93.4 million square feet of high-rise office
in
will
the region,
add
over
and construction is under way on buildings
11.7
million square feet
of
additional
that
space
(Coldwell Banker, 1983).
Table
2
points out that the cost of living in Los
compares favorably with other major metropolitan areas.
Angeles
The cost
of living is 15% below New York City with only three Southeastern
cities lower than Los Angeles.
10
Rank
Table 2: 1981 Urban Family Budget Comparison
Metropolitan
1981
Metropolitan
Rank
Area
Area
Budget
1981
Budget
1
2
Dallas
Atlanta
$22,678
23,273
9
10
U.S. Average
Seattle
$25,407
25,881
3
Houston
23,601
11
Philadelphia
26,567
4
5
6
7
8
Kansas City
Los Angeles/LB
Baltimore
Detroit
Chicago
24,528
25,025
25,114
25,208
25,358
12
13
San Fran/Oak
27,082
Washington D.C. 27,352
14
New York
29,540
15
16
Boston
Honolulu
29,213
31,893
Source:
U.S. Department
April 1982
of Labor,
Bureau of Labor Statistics,
Redevelopment and the Produce Market
Angeles
The
of
The
Although it
of
Los
opportunities
for
City
the
mandate from the City
receives its
the CRA is actually a semi-autonomous agency.
government,
by
empowered
Agency of
in 1945 to promote
established
was
housing and jobs.
private
Redevelopment
Camunity
The
State
sources,
redevelopment law,
by
funded
public
It is
and
citizens.
and governed and advised by private
governing Board is appointed by the Mayor with the
approval
key
actions.
the
City Council which also must approve many
Redevelopment
Law
City Council members
(1945).
Community
California
Agency's authority is outlined by the
initiate
the
redevelopment process by asking the CRA staff to study a specific
and submit a plan for adoption.
neighborhood
The redevelopment
Plan enables the Agency to use tax increment financing, issue tax
exempt bonds,
acquire, develop and sell property, establish land
use controls, and pursue federal and state grants.
The
redevelopment
adjacent,
Pacific
Union
district
across
although
Alameda
it
Street,
11
not
is
Terminal
is
to
included
located
the
in
the
immediately
Central
City
Redevelopment District.
redevelopment
Tokyo
projects
tools
in
are located north on Alameda
Little
Therefore,
the
of the CRA such as tax increment financing
are
and to the northeast in
financing
Other
Street.
process of being cleared across the Alameda
the
in
as well as the site of the new produce market
site
Terminal
Exhibit III shows Union Pacific Freight
Heights.
Boyle
not available without a lengthy staff study and Council approval.
actions
the
dramatic
effect upon the site.
Produce Market.
Angeles
market
dated
to
prior
back
The
World War I and were
1970's
produce
the
buildings
existing
and
overcrowded
a
The Los Angeles Produce Market distributes
of the fresh fruits and vegetables in the United States
a substantial source of employment.
represents
and
City's
From the
redevelopment will be the catalyst to the upgrading
perspective,
of
In the late
to leave the City.
threatened
blighting influence.
40%
a
greatest impact to the site is the redevelopment of the
The
Los
have
to
of the CRA have and continue
However,
efficiency
the Eastside Industrial Area and will improve the
Mayor Bradley through his
and the sanitary handling of produce.
Office of Economic Development did not want this industry to move
south to the City of Bell,
from
the
and he obtained financing for a study
Economic Development Department of the
The
Conerce.
Department
major problem pointed out by the study
was
were
the
Produce
necessary increase in rents to finance new development.
distributors
of
used to paying annual rents of $3 to
$4
per
square foot versus the $7.80 which the proforma indicated.
Ultimately
which
would
own
an
agreement
the
land,
was worked out between
and
12
a
partnership
the
between
City
the
Developer,
Birtcher
Dealers
&
Brokers.
consist
of
capital
involves
almost $62.7 million
buildings
shell
for
and
relocation
acquisition,
costs.
administrative
Central
Alameda,
construction,
site
adjacent
cold
demolition,
Terminal (See Exhibit II).
from
the
Union
site
will
at
ending
Freight
Pacific
to
Phase One is the portion closest
This new
the Freight Terminal is currently nearing completion.
development
from
Produce Market Site runs east
The
street
the
across
and
documents
Eighth Street and Olympic Boulevard
between
site
for
improvement,
street
construction
architectural/engineering,
investment
million of public funds
$26
and
storage/warehousing
dock
total
The
private
improvements,
tenant
improvements,
and
of
and
office
site.
developed on a 28.9 acre
area
will
1986
in
The project when completed
Produce
of
the Association
529,600 square feet of new warehousing,
merchandising
project
and
Pacific,
have one negative effect on the Union
by closing off Eighth Street reducing western
Pacific
from
access
the downtown area.
The Mayor's economic development staff and the CRA were also
involved
in
Market.
This
Streets
Economic
and
is
just
the private development of a new
market
west
is
located between
of San Pedro Street.
Wholesale
Flower
and
Eighth
Seventh
The City
Develoment Administration grant invested
through
$1.5
an
million
owns the roof-top parking lot over the market building which
owned by the Southern California Flower Growers Inc,
profit association.
13
a
non-
Constraints On Redevelopment Of The Union Pacific Site
of
Redevelopment
by
constrained
factors.
several
Terminal
Freight
Union Pacific
The first
is
the
terminal
Business
V) the site is not in either the Central
Exhibit
a
nor
District
The
neighborhood.
residential
industrial
environment limits retail and office uses which would more
be
in
located
purpose
single
residential
District.
Business
is
Located in a thin industrial strip running North-South
location.
(See
the
or
neighborhoods
in
often
Central
the
This is especially true in an area of older
industrial
Loa
buildings.
strict
Angeles's
seismic ordinance requires expensive compliance reducing both the
financial
feasibility and design flexibility.
Because
of
the
neighborhoods' current image residents of other areas of the City
The
the area despite tremendous freeway access.
avoid
nearest
residential neighborhood is the Barrio or Hispanic section of Los
Angeles.
an
and
This
Capitalizing
opportunity.
opportunity
economic
ethnic neighborhood represents both a constraint
can
The
of the surrounding neighborhood are
poor
development
making it difficult to attract retailers.
of
the location
Finally,
the existing buildings fixed on the site limit site
flexibility
narrow
as well as traffic and pedestrian
buildings
of
fronting
the site,
on
flow.
increase walking distances between
and to and from parking.
back
market
ethnic
this
opportunities.
other
limit
demographics
on
planning
The
long
buildings,
Available vacant land is located at the
a long walking distance from
Alameda Sreet,
the
buildings
and without street visibility
Exhibit X).
14
(See
CHAPTER I:
USE ANALYSIS
SITE ATTRIBUTES
Physical Attributes
Structures:
Existing
acres upon which exist five buildings
footage
listed
Table 3.
in
approximately
site consists of
The
20
each containing the square
The positions
of
the
individual
buildings can be seen in Exhibit X.
Table 3: Existing Structures On Union Pacific Site
Structure
Floors
Square Ft./Floor
Total Square Feet
2
1
1
2
1
11,619
22,619
28,199
25,750
42,940
23,328
22,619
28,199
51,500
42,940
Head House
Freight House #1
Freight House #2
Freight House #3
Freight Shed
168,586
Total
The Freight Shed will not be included in the proposed development
because
it
the
exception
to
remaining
structures
with
The
be
historical
little
although
appear to be in sound
condition
of compliance with
the
City's
earthquake
The exterior walls
are constructed of brick and
structural steel interior frame and tar and
remainder
or
buildings,
discussed later.
ordinance
of
other
The
has been deferred,
maintenance
and
disrepair
interest.
architectural
with
in
is
of the site consists of unused
the
cotta
terra
gravel
rail
of
roofs.
lines,
old
deteriorating asphalt, and an old wood automobile unloading dock.
15
The
the site limiting site planning flexibility.
X,
on
structural constraint is the location of buildings
main
As shown on Exhibit
four of the existing buildings are approximately 50 feet wide
and from 200 to in excess of 500 feet long.
limit
severely
manufacturing
Not only does
this
it
also
but
or industrial use,
Parking must be
creates long walking distances for retail uses.
located
optimum
where space is available rather than to provide
construction
new
Additional
access.
is
to
confined
also
available rather than optimal locations.
expansion
the City's capital improvement plan to prepare for the
of
the
construction
under
Los Angeles Produce Market which is
across Alameda from the Union Pacific Terminal site.
Olympic
to
any
also be widened as part
will
Boulevard
project.
of
Alameda Street was widened in 1984 as part
Infrastructure:
During 1985
same
this
of
All utilities exist at the site and have been up-graded
meet future demand of an expanding produce
development
However
market.
must consider a storm drain,
sewer
&
viaduct
which crosses the site and which is shown on Exhibit IX.
Transportation:
The
primary source of transportation
Angeles is the automobile.
The City originally had an excellent
rapid transit system, the Pacific Electric.
and
long
1950's.
disbursed
distances
Since
that
Los
in
Inexpensive gasoline
lead to the demise of this
system
time insufficient density and
character have combined with an extremely
the
high
the
in
City's
fixed
rail construction cost and poor operating projections, to prevent
construction
of
a
new
mass transit
16
system.
Los
Angeles
is
the
currently
the
and densest city in
largest
States
United
A subway system, Metrorail, is in
without a fixed rail system.
the planning stage but has had substantial funding problems
the
federal
Station
government.
with
The.system would run west from
Union
along the Wilshire corridor and then north into the
Fernando
Valley.
The system is not planned to be located
near
the Union Pacific Freight Terminal and will not affect the
Another
proposed
system
running to Long Beach
using
site.
existing
upon
right-of-way could affect the site depending
railroad
San
the
route selected.
An extensive bus system does exist primarily servicing lower
income
residents.
infrequent
service
transportation
is
However,
residents,
#31
existing
the
wider
around the
Union
#68,
retail
travel on lst
areas.
A
and
similar
The main lines,
on Central and San Pedro.
which
travels
industrial areas.
these
streets
situation
exists
#60,
The only lines traveling
east and west on Olympic
#358,
primarily
are
on
and
through
The availability of bus service to the site is
essential for any retail development at this site.
are
Freight
Brooklyn
#53 and
the
for
Pacific
Alameda and Olympic are an express bus to Long Beach,
#66
Bus
use.
main east/west routes servicing
north and south.
traveling
located
and
attracted
resulting
major source of transportation
located
Terminal.
through
not
has
the
residents
Hispanic
long commuting distances and
The
Retail sales
also affected by the number of packages a customer can carry
on the bus.
17
A timed driving study was made to determine driving time
Access:
to and from the site.
minutes
the
As shown below,
5
driving access within
is in excess of 1 1/2 miles with the exception of toward
west.
the
of
this direction you run into the traffic
In
Central Business District and can only travel 1 1/2 miles.
Table 4: Site Timed Driving Study
Distance(miles)
Direction
Intersection Reached
North
East
South
West
Macy St./Union Station
Lorena St/Olympic Blvd.
41st St./Alameda Street
9th St./Broadway Blvd.
These
2.5
3.0
2.5
1.5
can
As
driving times do not include freeway travel.
be
seen in Exhibit I, the site is within convenient driving distance
of most of Los Angeles.
ENVIRONMENTAL
Land
Use:
In
April
1985,
new
a
zoning
ordinance
became
the
effective under the City's General Plan which was adopted by
City Council in June 1979.
heavy
industrial
The site is zoned M3-3 which permits
The height limitation is
development.
times the building area of the lot,
uses
three
far in excess of anticipated
and there are no required setbacks.
One parking space
is
required for each 500 square feet of building up to 10,000 square
feet and thereafter one space per 5,000 square feet.
Since lower
uses are cumulative in higher zones almost any sort of industrial
or conmercial use is permitted.
Residential development is
not
City
has
this classification.
However,
the
permitted
under
permitted
artists' conversion of warehouses into lofts north
18
of
the
Existing Zoning Regulations and Predominant Land Use
site.
be
Exhibit V,
in
seen
can
As
for Downtown Los Angeles is shown in Exhibits IV and V.
is
Terminal
the Union Pacific Freight
located in a thin Industrial strip running north/south.
The
Neighborhood:
radius
This
VI with a 1 1/2 mile economic radius highlighted.
Exhibit
according
because,
selected
was
to
the
on
shown
is
Angeles
area of Los
downtown
Land
Urban
Institute, the theoretical trade area for a neighborhood use such
as a convenience store is 1 1/2 miles.
Map
Census
States
is
miles
the theoretical trade area for a
and
radius
community
Demographic data from
by a supermarket.
anchored
mile
United
an
The 3 mile radius was included because
additional 3 mile radius.
3
same 1 1/2
the
with
Exhibit VII is a
center
Appendix
A,
Census Tract Data, is sumarized below in Table 5.
Table 5: Demographic Data Census Study Areas
1 1/2 Mile Radius
42,103
312,146
11,583
$10,108
3.6
93,286
$11,255
3.3
Population
Households
Median Household Income
Persons Per Household
Source:
3 mile radius
U. S. Department of Commerce, U. S. Census of Population
1980.
Exhibit
less
VIII
Both
$10,000.
than
predominantly
low
these
of
study
in
1980.
income residents as compared with the
The
study
area directly
19
around
is
contain
areas
income for Los Angeles and Orange Counties
household
$18,770
shows census tracts in which the median income
median
which
was
the
site
contains some of the poorest residents of the City.
reviewing
In
that
it is clear
two study areas,
the
the
primary trade area for a conmercial or retail development is
the
Going beyond this radius includes a completely
1 1/2 mile area.
different economic area, the Downtown Business District and Civic
or
Center,
substantially
cultural
and
ethnic
different
neighborhoods.
LEGAL
Legal
The
Status:
existing
the
of
owner
is
site
Upland
Industries Corporation, the real estate development subsidiary of
Union
Pacific Corporation.
their
return
term
increasing
on
short
distributors.
The
from the site which is currently rented
to
leases
small
wholesale
produce
available preferably on a joint venture
is
property
Upland is interested in
basis
and
according to Upland was recently appraised at $12 million.
with
ordinance
The
1934.
loss
regard to masonry buildings
or injury
classifies
ordinance
using the structure.
basis
and
and
a
strict
constructed
before
City of Los Angeles
purpose of this legislation is
life
of
The
Ordinance:
Earthquake
reduce
has
to reduce the risk of
earthquake
All buildings were classified on a cursory
starting with the highest risk
Terminal
buildings
Headhouse has a classification of
remaining buildings 3B.
Industries
people
buildings based upon the number of
are
being
The Union
inspected and cited for compliance with the ordinance.
Pacific
The
damage.
3A and
the
When cited under this ordinance, Upland
will have two choices.
20
They can make
all
mandated
changes within three years,
the masonry walls to the roof and floors,
to
other
make
currently
modifications.
mandated
starting
to
they can anchor
or within one year,
review
and then have 6
City
years
are
inspectors
buildings
classified
3A.
Table 6: Los Angeles Seismic Rating Classifications
Hospital/Municipal
Occupant load > 100
Occupant load > 20
Occupant load < 20
I
II
III
IV
Essential Buildings
High Risk Buildings
Medium Risk Buildings
Low Risk Buildings
Source:
Department Of Building & Safety. Division 88 Earthquake
Hazard Reduction in Existing Buildings. 1982 Edition.
During
1985 Upland Industries can expect that they will be cited
In addition to anchoring the walls, other
under this ordinance.
possible
modifications
installation
seismic
of
vertical
engineers
the
resistance
cost of these
between $4 and $12 per square foot.
$10
receiving
on
all
modifications
the
estimates
range
cost
the
for
ordinance
compliance of this
similar buildings in
places
and
area.
If
if the owner fails to
after
comply
the Building & Safety Department will
building vacated.
criminal
can
This department also has legal
and civil,
to
approximately
development of this site
an order from the City,
with the ordinance,
both
the
affects
dramatically
the
Obviously,
per square foot.
constraints
According
elements.
of the Union Pacific Terminal to be
modifications
and
Based upon a review of their
City
the
inspection,
preliminary
roof
could be strengthening of the
if the owner fails
to
order
options,
vacate.
The
Department also has the legal authority to require darolition but
21
The Department
has only required this action in nuisance cases.
square
of Building & Safety estimates domolition costs at $4 per
foot
or approximately $674,000 for the five existing
buildings.
cost for Upland Industries to delay
compliance
The
opportunity
but
not demolish is the loss of revenue on approximately
62,000
square feet at $2.40, or $148,000.
HIGHEST USE
Industrial
Surrrounded by warehouses and light industrial buildings and
the
of the heavy industrial area in the City of
north
just
Vernon,
heavy
Union Pacific Freight Terminal is currently zoned for
Industrial
industry.
the
would require the demolition of
buildings
architecturally interesting masonry
existing
the
use
existing buildings are functionally obsolete for
because
industrial
The existing configuarations, averaging 350 feet long but
use.
techniques
or
typical
office
square
floor
assembly
parallel
do not appeal to modern
feet wide,
50
only
Currently
plans.
feet is leased
to
produce
small
approximately
62,000
wholesalers.
According to Coldwell Banker & Company this
rent for approximately $2.40 per square
would
foot,
space
generating
annual revenues of $148,000, the amount the railroad is currently
charging on month to month leases.
An
option available to Upland Industries is to demolish the
existing buildings and construct new modern tilt-up construction.
According to Coldwell Banker the local market would be willing to
pay
floor
$3.70 per square foot for new space in the
area
ratio
of .5 would result
22
in
the
area.
Using
construction
a
of
square feet.
351,650
rental
potential
Listed below in Table 7 are the costs and
the
of
redevelopment
income from industrial
site.
Table 7: Financial Feasibility: Industrial Development
Per Square Foot
Land
$25.00
Site Costs
Construction Costs
Soft Costs
Total
Annual Mortgage Payment
(12.5%)(30 yrs)
6.21
Annual Gross Revenues
3.70
redevelopment is not financially
Industrial
a
combination of factors.
New industrial
less expensive land.
on
occurs
4.25
15.00
4.00
48.25
At this
feasible based upon
usually
development
location
inexpensive
supply,
rents resulting from obsolete construction and available
not support redevelopment on high land values in a downtown
will
This problem is increased by costs to comply with the
location.
seismic ordinance or to clear the site.
To compete with typical
have
to
offer additional amenities such as open space and landscaping
in
office
an
parks
area
ratio
and obtain higher rents,
the site would
which does not require set backs and has a
permitting
Therefore
development
exceeding
the
floor
ground
area
area.
industrial development of the site is not feasible
this time.
Retail
23
at
Market
Demand:
order to determine the demand
In
for
various
retail services the median annual income of the 1 1/2 mile
area,
$10,108,
Expenditure
patterns
has been compared with the Department of Labor's
Surveys.
for:
trade
Table
8 compares
different
expenditure
households located throughout the United
States,
families located in the Los Angeles and Long Beach SMSA,
and for
families
Total
with
demand
population
most
part,
an
for
income level equivalent to
the
study
retail goods and services from
the
area.
resident
in the study area is projected in Table 9.
the data for equivalent income groups to
For the
the
study
area was used to predict potential demand.
Table 8: Family Expenditure Patterns
Classified by Family Income Before Taxes
Expenditure
Food At Home
Food Away
Alcohol & Tobacco
Housing
Fuel & Utilities
Household Opns.
Household Furnishing
Clothing
Laundry
Transportation
Health Care
Non Prescription Drugs
Personal Care
Recreation
Reading & Education
Insurance $ pension
Source:
Percent Distribution
All Families
LA/LB
Income Group
14.0%
5.1
2.9
30.8
5.0
12.4%
6.1
3.2
33.7
3.2
18.1%
4.2
3.3
33.5
5.8
5.4
5.6
5.9
4.7
4.3
4.0
6.8
6.9
5.6
1.0
19.3
1.1
18.1
1.3
16.0
6.4
0.7
5.6
0.6
7.1
0.8
2.0
8.6
1.9
8.9
2.0
8.4
1.4
8.0
2.1
6.5
1.0
4.4
Bureau of Labor Statistics, Annual Expenditures and
Source of Income Survey 1972/1973. Sudocs#:L 2.3 1985.
Data was adjusted to 1980 Census Date.
24
Table 9: Projected Trade Area Product Demand
Study Area Median Income
$10,108
Total Income Study Area
$117,076,976
Percentage
Family Income
Dollars (000)
Market Area
Food At Home
Food Away From Home
Alcohol & Tobacco
18.0%
4.5
3.0
$21,074
5,268
3,746
Housing
Fuel & Utilities
33.6
4.0
39,338
4.683
Household Operations
Hamefurnishings
5.8
4.1
6,790
4,800
Clothing
5.7
6.673
1.3
16.0
7.5
0.8
2.1
6.5
1,522
18,732
8,781
937
2,459
7,610
Expenditure
Laundry
Transportation
Health Care
Non-Prescription Drugs
Personal Care
Recreation
Education
1.0
1,171
Insurance & Pensions
4.5
5,268
Daytime
Population:
Produce
Market
According
Revitalization
objective of the City in
new indirect jobs.
American
work
of
resident
Sumary,
a
primary
and
Minority employees (primarily Mexican-
Asian-American) comprise nearly 85 percent of
approximately
the
Wholesale
Angeles
and create 500 new direct
force in the produce industry.
represents
ratio
and
Program
Los
this redevelopment was to maintain 2,500
primary and 3,000 secondary jobs,
600
to the
Since the
Produce
50 percent of Census Tract
daytime population of this Census
census population was used to estimate the
daytime population of the 1 1/2 mile study radius.
25
Market
2064,
Tract
the
to
the
the
incremental
Table 10: Daytime Population and Projected Service Market
Produce Market Primary Jobs
3,000
Population: Census Tract 2064
Ratio: Primary Jobs/Population
1,348
2.2
42,103
92,626
50,523
Population Study Area
Projected Daytime Population
Daytime Population Increase
10%
5,052
$4.00
$20,208
Site Luncheon Frequency
Daily Luncheon Population
Average Daily Expenditure
Total Daily Revenues
Annualized Daytime Revenues
$5.25 million
Sources: City Economic Development Office, Office of the Mayor.
Los Angeles Wholesale Produce Market Revitalization
August 1983; Department of
Program Sunnary.
Cainerce. U. S. Census of Population. 1980.
According to the Visitor Profile,
Visitors:
Annual Report
for
1984 prepared for the Los Angeles Visitors & Convention Bureau by
CIC Research Inc.
visitor days to the City of Los
of San Diego,
Angeles totaled 264.7 million.
Dividing their total expenditures
of $8.0 Billion by the visitor days results in an expenditure
$30.19 per person per day.
day is $81,
visitors
however,
of
The equivalent group expenditure per
this is artifically low because 30% of the
stay with friends.
For those not staying with friends
the table below projects average per group per day expenditures.
Table 11: Annual Los Angeles Visitor Spending
Dollars/Day
Expenditure
$71
27
Lodging
Meals Out
10
Alcohol
24
17
15
41
$205
Amusements
Transportation
Shopping-Food
Shopping-Non Food
Grand Total
Source:
Percentage
35%
13
5
12
8
7
20
100%
CIC Research Inc. Visitor Profile, Annual Report, 1884.
26
The total amount of potential visitor purchasing power for a
to
restaurant and retail'center could attract visitors
festival
the
largely deserted downtown site in the evening.
use
oriented
site
oriented
A tourist
extent upon the type of development.
great
a
to
of the Union Pacific Freight Terminal depends
development
attract visitors to
the
the
proposed
The
site.
local
the
which is oriented primarily toward
plan
development
a
toward the Hispanic population to the east of
not
would
However,
does not rely on revenues from visitors.
market,
Store:
Convenience
location
franchise
Corporation
Southland
criteria,
according
to
its
located
at
the
looks for sites
entrance to a residential neighborhoods containing at least 1,000
residential homes within 3/4 of a mile from a potential site.
A
7,200
7-
the
of
pioneer
convenience store with approximately
stores throughout the nation,
corner
lot on which to build a free standing 2,500
building.
and
area
criteria.
at
With 42,000 people located within the 1 1/2 mile study
over 11,000 households, the area more than
for
contains
Food At Home (see Table 9).
numerous
small
liquor
The
the
Projected
area
stores
liquor
Across Olympic from the site for example
store selling convenience items and
delicatessen.
annual
surrounding
small independent markets and
carrying grocery items.
a
this
meets
Assuming that convenience retailers project their rent
rent, a retailer would have to capture 5.7% of
is
foot
square
5% of revenues, for a 2500 square foot store and a $24
Demand
a
also prefers
Southland
Eleven
containing
These small retailers operate in run
27
a
down
fronts providing less selection at a higher margin than
store
the
Based upon the limited competition,
new convenience store.
a
and
Home,
available
expenditures of $21 million for Food At
projected
rent only requiring a retailer to capture 5.7% of
available
market,
a
the
the site represents an attractive site for
a
The only negative is
convenience store combined with other uses.
non-residential nature of the surrounding neighborhood which
the
is more than overcome by the daytime employment population. Other
negatives
such as Southland's desire for a free
parking can be resolved with an
adjacent
and
standing
store
appropriate
site
Despite these negatives, the site represents an excellent
plan.
in
Store
convenience store such a 7-Eleven
a
for
opportunity
conjunction with other uses.
potential
They
site.
expenditures of $26.
42
also
look for weekly
power than required by the Safeway criteria.
expenditure
person
42
the
by
then
thousand
inhabitants
only $9.63 per person,
of
per week.
more
additional
a
food
purchasing
dividing
However,
results
far below
weeks
in
the
a
population from higher density would
and
weekly
$26
The 1 1/2 mile area currently contains
two Safeways and an independent market.
supermarkets,
the
person
per
food expenditure of $21 million by 52
potential
of
As above, the 1 1/2 mile study radius with
thousand inhabitants contains substantially
the
supermarket
selecting
25 to 30 thousand people within 2 miles
for
looks
sites
Safeway Stores in
Stores:
Neighborhood
per
three
Although
compensate
for the small per capita expenditure, the better locations of the
existing
supermarkets makes neighborhood stores a poor
28
use
for
the
are
Thus,
Area.
Industrial
better
are
the existing stores
these
With most of
to service the existing residents.
located
residential
in
located
while the Union Pacific Freight Terminal is in the
neighborhoods
East
stores
existing
The
site.
residents also dependent upon pedestrian or bus transportation it
successful
very difficult for a supermarket to be
be
would
at
this site.
Farmers Market:
see
In the surrounding neighborhood, it is common to
individuals selling fruits and vegetables in vacant lots
store fronts.
small
the
as
well
that
predicts
The density and total dollars available as
Hispanic
a
farmers market would
for
market
of
this
Although the local capture
rate
At Home within the 1 1/2 mile radius or 9.1%
is very high,
is
existing
much
District
is
Therefore,
Market.
closer to the Hispanic population than
farmers
Central
across
Hispanic residents are currently traveling
site to reach the Grand Central
Grand
excellent
Market the site would have to capture 75% of the
Food
site
an
represent
markets
air
With 33,000 square feet available for a
market within a 3 mile radius.
the
open
of
cultural history
development opportunity.
Farmers
or
Los
market located in Downtown
Market,
on
Broadway
currently servicing primarily
Angeles.
Hispanic
only
The
Business
Central
the
in
the
the
customers.
The location adjacent to the new produce market also makes this a
natural
represent
location
for
a
Farmers
Market.
This
an excellent opportunity for merchants in the
Market to sell directly to the retail customer.
marketing
market
of
space to produce merchants in
29
the
would
Produce
The renting and
Union
Pacific
also
would
Terminal
create
demand
other
for
in
uses
the
development such as the restaurants and office space.
farmers
California Direct
The
market.
operating
markets
have
and the San Fernando Valley.
allows
Burbank,
Although these
fruits
and
the proximity to the
Los
the advantage of selling vine ripened
directly to the consumer,
vegetables
in
one day per week have developed
Gardena,
Pasadena,
Act
Marketing
Starting in 1978 Farmers
growers to sell directly to consumers.
Markets
"certified"
also the alternative of developing a
is
There
Angeles Produce Market and potential for developing cross traffic
a
comercial market cooperating
points
to
retail
opportunities
the
for the Los Angeles Wholesale
tenants
However,
to
order
in
must be carefully selected and mixed
A
Market.
site.
market represents the best use for this
farmers
offering
and
with
a daytime lunch market as well as meeting the demands of
promote
the adjacent Hispanic population.
Restaurants:
The density of population and availability of
$5.3
for food away from home from the residential population,
million
combined with a potential annual daytime demand of $52.5 million,
will support a substantial number of restaurants.
appear to utilize numerous small
residents
and
Brooklyn
have
site.
and
stands located along
taco
avenues.
locations
Four
Central,
Local Hispanic
mexican
San
restaurants
Pedro,
1st,
regional or national fast food
in the area but only McDonalds is close
and
chains
to
the
The other chain locations are: Winchells, Pioneer Chicken,
Carl's
Samboe's,
Hamburgers.
Two
Seasons
coffee
shops, formally
are located in the study area, one of which is located
at Olympic and Alameda.
Two medium priced restaurants are
30
also
located
this
at
Salvatore's,
Hofbrau.
a
expensive
more
Sam's
quality
higher
and
the
Just to
is located nearby at Olympic and Soto.
restaurant
and
the Gala Restaurant
intersection,
north at 3rd Street is the Little Tokyo restaurant area and there
are
market.
produce
existing
adjacent
to
the
The most popular restaurant
in
the
restaurants
Chinese
also
Pedro
on San
Central.
Produce Market is Vickman's a restaurant on 8th west of
This
popular
restaurant
those
matching
a
market as
to
the
luncheon
employees
of
the
produce
available
in
the
Head House,
of
feet
square
have
would
1/2
mile
to
additional demand is the large number
potential
there
customer
is
also a large
number
of
An
area.
study
"Coffee
of
which service manufacturing companies in the
evening
Center.
and
customers
8,133
With
the development
Home within the 1
From
Away
indicator
the
as
6.8% of the available market from daytime demand and the
capture
Trucks"
market.
well
restaurants
type
as well as one or two better cafe
type
food
business of higher quality fast
appealing
Food
could
The Union Pacific Freight Terminal site
luncheon
restaurants
the
of the produce market and staying open for
luncheon market.
attract
2:00PM
until
midnight
operates from
In
area.
affluent
more
Music
who pass the site on their way to the
The tenant mix is critical to establishing a mixed
marketplace
which
will appeal to both daytime office
use
employees
as well as Hispanic residents.
Discount
are
Department Store:
Two discount type department
located northeast of the study area.
stores
Zody's is located
1st and Mott Street and the First Street Store is located at
31
at
lst
and Rowan Street.
These two stores, combined with a large Sears
store located adjacent to their warehouse at Soto and Olympic and
of
east
just
better
are
Terminal,
the Union Pacific Freight
Combining
located to service the residents of the neighborhood.
the less desirable location of the Union Pacific Freight Terminal
with
the
or discount department store is
department
use
not a good
a
that
limited disposable purchasing power indicates
for
this site.
represent a excellent site for a
The location does, however,
warehouse
since
access
are
stores
freeway
Warehouse stores primary criteria is
they
appeal to a customer willing
for their lower 12% gross margin.
exchange
Azusa
store.
travel
to
Existing
warehouse
located in Burbank 15 miles to the Northwest and
in
area.
a similar distance to the Northeast of the Downtown
This site has excellent access to the west, south, and east.
availability
in
of low cost space will be used as an inducement
The
to
attract the traf f ic created by these high volume operations.
OFFICE DEVELOPMENT
The
industrial
area surrounding the site and
the
Market is totally lacking in high quality office space.
consists
almost
exclusively
manufacturing buildings.
older
of
Produce
The area
industrial
Without required setbacks there is
landscaping or other office amenities.
and
no
There is a perceived need
for office space for the ancillary services of the Produce Market
such as insurance and product brokerage.
Through landscaping and
the restoration of the architecturally interesting building there
32
is
an opportunity to lease Class B office space.
addition
will
to
have
its location adjacent to the produce
the advantage of being part of a
mixed
making available additional services to tenants.
33
The
site,
market,
use
in
also
project
CHAPTER II: DEVELOPMENT PLAN
COMBINED MIXED USE DEVELOPMENT
The
development
redevelopment
of
plan
the Union Pacific Freight Terminal proposes
Market,
mixed use development consisting of a Farmers
retail
including
space,
and a
on a phased joint
lease basis.
ground
consist
which
wholesale warehouse store.
of
Of the 20
or
venture
office
acres,
Olympic
an adjacent parcel located along
Boulevard
the existing and proposed new construction are as follows:
Table 12: Renovation and Proposed Construction Summary
Square Feet
Head House
Specialty Retail (1st Floor)
Office (2nd Floor)
Freight House #1
Specialty Retail
Freight House #2
Farmers Market Storage/Refrigeration
Freight House #3
11,619
11,619
22,619
28,199
51,500
125,556
Office
Total Existing
New Construction
Farmers Market
Warehouse Store
Total New Construction
55,000
100,000
155,000
Grand Total
280,556
34
shed,
Proposed uses and
might be acquired later for expansion.
Existing Structures
16
subordinated
the freight
The remaining 4 acres,
a
specialty
services,
food stands and convenience
acquired
be
would
the
of
analysis
and the financial
Table 13: Proposed Use Sumary
19.6%
Farmers Market
55,000
Retail
office
Wholesale Store
34,238
63,119
100,000
12.2
22.5
35.6
Storage/Refrigeration
Total
28,199
280,556
10.1
100%
This
Combined
cost
of
million,
$23.2
stabilized year,
the
The cash flow in
$2.4 million, represents an 10.3% return on the
total project cost.
Assuming a permanent financing interest rate
the cash flow will not support 100% of the project cost.
of 13%,
the cash flow with a 1.3 debt coverage ratio and
Capitalizing
capitalization
ratio,
million
$14
support
indicates
that
of debt or approximately the cost
project,
contribution
combined with Upland Industries land
finance a joint venture development.
the
of
This investment
the developer would have to invest $3.7 million.
be
a
would
project
the
To provide sufficient cash flow for the
improvements.
would
$13.6
of
improvements
consisting of
project
total
Mixed Use Development will have a
million and a land value of $9.6 million.
12%
Percent
Square Feet
Use
to
A portion of the developers
investment would be used to reduce Uplands land carrying value to
increase
level.
acceptable
Uplands internal rate of return to minimum
Pre-tax
The
Rate of Return
Internal
with
for Upland and the developer and the deal
investments
the
above
structure
The project
discussed below are 9.75% and 9.44% respectively.
has a high ratio of the land cost to the total project cost, 29%.
This confirms the high valuation of the property relative to
its
view
the
redevelopment
increase
value.
From
an
after-tax
point
of
in the operating cash flow from tax shelter is not able
35
The tax
to overcome the tax liability when the project is sold.
benefits
reversed in later years.
than the pre-tax IRR.
on
If tax benefits from investment tax credit
the
tax
could
qualify for a 20% investment
tax
credit.
This
utilized
tax credit of $2.7 million could be sold or
improve the conservatively presented after-tax
the
law,
structures are maintained in
investment
is
As a result, the after-tax IRR is lower
historical
project
to
this
increase cash flow in the early years but
do
As
returns.
presented in the analysis, the After Tax Internal Rates of Return
are 7.3% for Upland and 4.7% for the developer.
DEAL STRUCTURE
The
financial
contributes
projections assume
Industries
Upland
Of the available cash flow,
80% is disbursed against the cumulative preferred and 20%
When sold, say in ten years, Upland would receive the
cumulative preferred return.
to
developnent fee,
a
to the
land value plus 50% of the sales proceeds in excess
current
received
8%
and a 50% interest in the cash flow
excess of its preferred return.
developer.
a
its land into a joint venture in exchange for
cumulative preferred return,
in
that
its
The developer receives in addition
Upland
has
and then a 50% interest in
the
20% of the cash flow
its cumulative return,
until
additional sales proceeds.
PHASED DEVELOPMENT
Assuming
investment
in
that
the
the
his
developer wishes to minimize
project,
the controlling
equation is the amount of land acquired upon which the
36
in
variable
cash
the
preferred
on
performed
the
relative
financial
second
returns
from
analysis
was
the
scaled down development where
a
analysis is hereafter referred to as the
This
renovation of Freight Houses #1 and #2 into retail,
and
office,
Proposed Site Plan of the entire
a
and
is
project
This development would
contained in Exhibits X and XI.
consist
approximately 6 acres of the total of 16 acres planned to
acquired in the Combined Development.
the
the
A site plan showing the locations of the existing
storage space.
of
Phase
Phase One includes the Farmers Market and
One development.
structures
developer's
This development could subsequently be
investment is minimized.
expanded.
a
Therefore,
uses.
specific
well as
applicable, as
is
return
be
Phase One would consist of
construction of the Farmers Market to be located between the
House and Freight Houses #1 and #2.
Head
permanent
display sheds.
market
feet
square
of
leasable
landscaping
Extensive
along
renovated
be
would
houses
and
space
with
the
These sheds
to
the
freight
The existing
add
will
33,000
structures.
existing
eating areas are
of
construction
included
in
this
development.
and
Eliminated from the development are the warehouse store
additional office space in Freight House #3.
and
attention
Development
In order to attract
customers to the development site,
would
lease newly constructed space to a
store retailer at less than the developers cost.
store
the
warehouse
The warehouse
would require approximately 2.5 acres with an additional 4
acres for parking.
This scaled down development would be
at servicing a local market with convenience services.
has
Combined
a
total
project
cost
of
37
$12.6
million
aimed
Phase One
consisting
of
The
in the stabilized year
flow
cash
$9.0 million and a land cost of
of
improvements
elimination of the warehouse store,
$1.6
is
a subsidized
million.
$3.6
The
million.
combined
use,
with greater density of development results in an increase in the
Capitalizing the cash
return on the total project cost to 12.3%.
flow
$9.0 million,
similar amount of debt,
the
The
improvements.
resulting
equivalent to the cost of
Upland
to
return
preferred
reduced
the
with
the smaller land acquisition combined
from
a
indicates that the development would support
above,
as
reduces
greater return on investment without the warehouse store
the developers investment to $769,000 and substantially increases
the
Internal
Pre-tax
Rates of Return to both
the
and
Upland
developer to 13.8% and 29.1% respectively.
the
However,
increases
substantially
the
reduces traffic to the site.
12%, combined
hard
risk
project
of the
it
because
The extremely small gross margin of
with a broad product mix of food as well
and soft goods,
store
warehouse
the
of
elimination
as
both
attracts price conscious customers from
a
wide area willing to travel to take advantage of prices which are
Discount Retailers and 35% below
15%
below
The
warehouse
perishable
store
its
thin
margin
does
carry
not
food products which is a natural use combined with
Farmers Market.
normally
with
Stores.
Department
limited
a
With their limited margin warehouses stores are
to
less expensive space unless the
space
is
subsidized, as proposed here.
A
of
third financial analysis was performed with the
the office space in Freight House #3,
38
addition
again eliminating
the
The
store.
warehouse
office space
additional
aimed
is
at
This additional space
businesses servicing the produce industry.
can be developed after the successful leasing of the office space
Phase
in
to
similar
is
The result of this financial analysis
One.
the results in the Combined Mixed
Use
very
Development.
Mixed
Combined
The
Internal Rates of Return are similar to the
Use
Development with increased developer investment required
the
finance
analysis
larger
land
acquisition.
The
of
results
this
Limited
shown below in Table 14 identified as the
are
to
development.
Table 14: Comparative Financial Summary of Phased Development
Land Cost
Improvements
Total Project Cost
Stabilized Cash Flow
$3,612
9,002
12,614
$9,687
13,637
23,324
$6,598
11,863
18,461
1,552
2,416
1.852
10.0%
10.4%
12.3%
Return On Investment
Limited
Combined
Phase One
(000)
Maximum Loan Amount
9,000
14,000
11,000
Upland Land Investment
Developer Investment
3,611
769
9,684
3,713
6,598
2,752
IRR: Upland
IRR: Developer
13.8%
29.1
9.8%
9.4
9.5%
10.8
Risks
In
addition
redevelopment
incur
The
of
to
financial
risk
discussed
the Union Pacific Freight Terminal
substantially greater risks than most other
greatest risk is the location.
industrial
area,
there
is
the
will
also
developments.
Because the site is
substantial
39
above,
risk
to
in
an
attracting
for retail uses.
customers
shopping
The necessity of changing
and
patterns is compounded by the existing transportation system
the
with
nature of the surrounding
ethnic
this risk is the necessity of attracting the
tenant
right
mix
in order to create the right traffic of both area
and
the
daytime employment population.
Associated
neighborhood.
residents
The development is
an
extremely complex mixed use project of both comnnercial and retail
uses which will depend upon different ethnic,
income groups.
and
occupational,
Attracting tenants to offer agricultural products
to residents in the same development with restaurants catering to
This
manufacturing and white collar employees is very difficult.
problem
made
is
more difficult by having
to
these
establish
different uses in existing building. As discussed above there are
substantial risk trade-offs between the increased traffic of
Combined
Mixed Use Development and the decreased investment risk
of the Phase One Development.
Finally, there is great financial
risk for the property owner and the lender from these risks.
will
It
be very difficult to convince a lending institution to make
financing
The
the
use,
specialized
location
will
combined
equity.
as
available even with the existing property
and
with the demographics
make financial institutions
extremely
the
cautious.
Upland Industries will show similar caution with a
As the owner,
real estate asset appraised at $12 million at risk as
collateral
for this loan.
DEVEWPMENT STRATEGY
Upland
Industries
with its corporate
40
mandate
to
develop
term
Pacific's real estate holdings maximizing their long
Union
believes that the property's real value will be realized
return,
For
redevelopment.
after
Their motivation toward a joint
venture than sell the property.
based
is
venture
upon
the low return from
verses the $12 million
$148,000,
joint
this reason they would rather
Their
value.
appraised land
use,
current
its
they
motivation toward realizing this asset's value increases if
are
are
or
longer allowed to lease the existing structures
no
required to invest in earthquake compliance or demolition.
The only financially acceptable strategy is to develop Phase
strategy
This
One.
conservative
has the highest return under
However,
rent assumptions and the smallest developer investment.
as
discussed
added
subsequently.
store
is
created
has
The
space
Development
in
Freight
analysis
will
#3
space
After the office
additional
it is likely that the
House
Limited
the
in
included
and
generate higher rentals
higher
used
internal rates of return than the $15 gross per square foot
in
the analysis.
upon
based
The projections are extremely rent
conservative rent
assumptions.
For
is
flow
to defer the subsidized use until after cash
been leased in Phase One,
office
warehouse
the
rational. for delaying
from the convenience services.
be
Other phases can
by high volume warehouse store.
generated
traffic
the
without
above the risk is increased
sensitive
the
example,
Farmers Market rent in the projections used a base monthly rental
of
$2
per usable square foot verses from $2 to $6 actual
rents
charged at the Farmers and Grand Central Markets.
A key variable affecting the development's internal rate
return
is
the
land
cost which has been
41
used
as
the
of
equity
investment.
Upland
structures
at
appraisal.
Angeles
Industries has valued the land and existing
$13.77
per square foot of
According
to
Coldwell
land
upon
Company,
in
Banker &
based
the land is worth between $10 and $13 per
Reducing
square
the land value has a dramatic effect upon the
viability.
The
investment
internal
rate
of return
increases
flow.
substantially.
analyses
of
will
concentrate on
the Combined,
this
Phase One,
project
Phase
the
One
strategy with
an IRR in excess of the estimated borrowing cost.
follows
foot.
Therefore,
represents the best risk reward ratio and the only
which
Los
projects
reduction in the land cost reduces the
but does not affect the cash
an
The discussion
proforma.
and Limited
Complete
development
options are contained in the Appendix B.
Exhibits XII thru XIV contain a detailed Development
Cost
Budget, Cash Flow Before Debt Service in the Stabilized Year, and
Project Assumptions for the Phase One Development.
in
Table
included
retail
15 is a sunmary of the Phase
below
rents
is
from
One
a sunmary of the impact
$24 to $36 per
annual
Listed below
Development.
of
Also
increasing
square
foot.
the
This
increase which is extremely likely, in a successful project based
upon comparable rents,
table
includes
increases the returns dramatically.
the returns for both
appraised land value is
a
zero
land
value
extremes,
added to the project cost,
where the land
preferred return.
42
is
where
The
Upland's
and based upon
contributed
without
a
Table 15: Phase I Financial Sunmnary
Stabilized Year
Appraised
Land Value
Value
Zero Value
Retail Rent/SF
office Rent/SF
$26.46
16.54
$26.46
16.54
Total Project Cost(000)
Cash Flow Before Debt Service
Leveraged Cash Flow
12,613
1,552
315
9,002
1,552
315
Non Leveraged IRR
Leveraged IRR
After Tax IRR
16.6%
18.7
18.1
22.5%
Joint Venture,Pre-Tax After Debt
Upland IRR
Developer IRR
13.8
13.8
29.1
29.1
25.1
25.1
62.5
62.5
Joint Venture, $36 Retail Rent
Upland IRR
Developer IRR
for
Parking
constructed
as
all
needed
50.8
52.7
940
spaces,
will
be
on the north side of
Freight
House
#1
three
phases,
running to the new warehouse store from Alameda Street.
43
SUMMARY
As
has
been
discussed
in
the
previous
chapters,
the
redevelopment
of this former freight terminal in Los Angeles
an
complex and risky development.
extremely
adequate
The
returns
not spectacular until higher rents
but
are
is
are
achieved.
Upland Industries is currently faced with the loss of revenues of
$148,000
if
their tenants must vacate or a
investment to make seismic modifications.
to
increase
asset.
their
However,
potentially
Their primary goal is
return on investment on
the
loss
larger
this
of revenues will not
low
yielding
pressure
this
financially
strong company into risking its $12 million of value
unless
development
the
business
can stand
alone.
As
a
conservative
the railroad will tend to evaluate the risk in the same
manner as a financial institution.
approached
about
Therefore,
an interim strategy that
Upland should be
would
substantially
reduce the risk.
This would consist of testing the viability of
a Farmers Market.
It is the potential high rents per square foot
from
the
this use,
combined with lower construction costs that
the most attractive development opportunity.
are
Upland would
be asked to agree to give the developer an option to gain control
of
the
success
property based upon the developer achieving a
as
investment
a
Farmers
Market prior
to
making
in the renovation of structures.
a
of
substantial
The test could be a
market in which the growers sell off their own trucks.
44
level
Currently
these
growers travel to different areas of the City on different
The
days selling from trucks modified to display their products.
railroad and the developer would be compensated with a percentage
of
the
daily
receipts.
If
successful
not
only
would
the
development strategy be validated but there would be evidence
convince
a financial institution to provide
financing.
to
Upland
also be much more inclined to place their property at risk
would
based upon an objective test.
The
lessons
from this academic exercise are
many.
First
farmers markets or similar retail amenities such as the wagons at
Faneuil
Hall can be a very profitable components or additions to
development projects.
and
In Los Angeles,
the Grand Central Market
the Farmers Market charge rents averaging $48
square foot.
development
proportion
market
to
specific
development
Risk can be reduced in direct
of
the
Mixed use projects are extremely complex
and
the increase in
research.
require
critical to successful
Secondly, market research is
and risk management.
leasable
per
market
segment.
the quantity and quality
research
and
a
strategy
for
each
Transportation can also have a tremendous
impact on employee and customer access to sites.
Finally,
the
process of creating a development strategy for a specific site is
very
different from looking for a site where you know
want to develop.
45
what
you
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967
COLD
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REE ANW ZONE
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S
TYPE
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N
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ONE SPACE
FOR
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IMPROVEMENT CLASSIFICATION
IMPROVEMENTS
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MEANSOF EFFECTING
AN ALTERNATE
AREINVOLVED)
OR DEDICATIONS
(WHENND SUBDIVISION
QUALIFIED CLASSIFICATION
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WITHRA.RERS OR RI ZONES
EXCEPT
ONLY
CHANGES
WITH ZONE
IN COMBINATION
USED
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WITHTHESURROUNING
COMPATIBLE
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Zoning Regulations
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U.S. Census Map
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Proposed Site Plan
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PROJECT: PHASE ONE: FARMERS MARKET & RETAIL
EXHIBIT I
DEVELOPMENT COST BUDGET
DOLLARS/SF
SF
DOLLARS
LAND:
LAND PURCHASE
SITE COSTS:
PREPARATION-BUILD
PREPARATION-LAND
PARKING
LANDSCAPING
TOTAL SITE COSTS
CONSTRUCTION
FARMERS MARKET
HEAD HOUSE COMMERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 COMMERCIAL
FREIGHT HOUSE 2 STORAGE
FREIGHT HOUSE 3 OFFICE
WAREHOUSE STORE
SEISMIC COMPLIANCE
TOTAL CONSTRUCTION
TOTAL IMPROVEMENTS
13.77
703,300
0
12.00
3.50
3.00
1.50
74,056
55,000
154,000
457,613
888,672
192,500
462,000
686,420
2,229,592
22.00
30.00
30.00
30.00
35.00
30.00
17.00
10.00
55,000
11,619
11,619
22,619
28,199
0
0
129,056
1,210,000
348,570
348,570
678,570
986,965
0
0
1,290,560
4,863,235
7,092,827
FEES:
ARCH/ENG
PERMITS
LEGAL
MARKETING
DEVELOP
TOTAL FEES
5%
1%
4%
354,641
70,928
100,000
100,000
283,713
909,283
CONTINGENCY
1,000,000
TOTAL PROJECT COST
9,002,109
EXHIBIT II
OPERATING PIOFORMA
FULLY LEASED: STABILIZED YEAR
DOLLARS/SF
NET RENTAL INCOME
FARMERS MARKET
HEAD HOUSE RETAIL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 RETAIL
FREIGHT HOUSE 2 STORAGE
FREIGHT HOUSE 3 OFFICE
WAREHOUSE STORE
SUB'lUI'AL
26.46
26.46
16.54
26.46
13.23
16.54
6.00
MAINTENANCE & SECURITY
TAXES & INSURANCE
TOTAL TENANT INCOME
LESS VACANCY
SF
33,000
8,133
9,295
15,833
25,379
0
0
873,180
215,207
153,719
418,949
335,765
0
0
1,996,821
82,346
82,346
317,751
226,965
544,717
5%
99,841
TOTAL INCOME
OPERATING EXPENSES
MAINTENANCE & SECURITY
TAXES & INSURANCE
PROMOTION
REPLACEMENT RESERVE
TOTAL EXPENSES
CASH FJDW BEFORE DEBT SERVICE
DOLLARS
2,441,697
0.20
129,056
129,056
129,056
497,995
355,711
11,393
24,417
889,516
1,552,181
EXHIBIT III
*********2
******************************************************************************
PROJECT ASSUMPTIONS
******************************************************************************
PROJECT SUMMARY
BUILDING AREA
FARMERS MARKET
HEAD HOUSE COMMERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1
FREIGHT HOUSE 2
FREIGHT HOUSE 3
WHOLESALE STORE
TOTAL
*********4l
GROSS
55,000
11,619
11,619
22,619
28,199
0
0
129,056
PERCENT
60%
70%
80%
70%
90%
80%
100%
NET
33,000
8,133
9,295
15,833
25,379
0
0
91,641
PARKING
AREA
SPACES
RATIO
154000
440
4.5
COST ASSUMPTIONS
CONSTRUCTION INTEREST
PERMANENT INTEREST
OFFICE LEASING UPON COMPLETION
LEASE-UP PERIOD
INFLATION RATE
CAPITALIZATAON RATE
CAPITAL GAINS TAX RATE
RENT ASSUMPTIONS
FARMERS MARKET
RETAIL
OFFICE
STORAGE
WHAREHOUSE STORE
VACANCY
105%
105%
105%
105%
100%
5%
EXPENSE ASSUMPTIONS
MAINTENANCE & SECURITY
TAXES & INSURANCE
DEPRECIATION (YRS)
105%
105%
20
0.12
0.13
0.25
12
0.05
0.10
20%
3.50
2.50
APPENDIX A
61
APPENDIX A
CENSUS DATA
1980
CENSUS TRACT
POPULATION
HOUSEHOLDS
FACTOR
AX.
POP
AM. HOUSEHOLDS
MEANINCOME
INC x AD
House
ONVENIENCE PRODUCTS
ONE & ONE HALF MILE RADIUS
2045.01
2045.02
2046
2047
2051
2062
2063
2064
2065
2073
2078
2079
2241
2245
2262
2263
2264
2265
2266
2267
2281
GRAND TOTAL
5615
4
3619
4524
7322
3015
5964
1348
216
1629
2292
2364
2420
2166
523
2243
6854
3722
1913
4745
3432
65930
1439
0
1018
1169
1858
1245
555
256
-51
815
1843
876
762
633
115
572
1822
1073
458
1319
935
0.80
1.00
0.60
0.20
0.25
0.60
1.00
1.00
1.00
0.15
0.85
0.50
0.40
0.10
1.00
1.00
0.95
1.00
1.00
0.35
0.65
18814
4,492
4
2,171
905
1,831
1,809
5,964
1,348
216
244
1,948
1,182
968
217
523
2,243
6,511
3,722
1,913
1,661
2,231
42,103
1,151
0
611
234
465
747
555
256
51
122
1,567
438
305
63
115
572
1,731
1,073
458
462
608
11,154
13,915
15,011
13,259
5,496
5,642
8,911
7,807
7,414
6,010
8,780
9,101
11,576
8,744
13,671
11,960
11,596
13,039
10,488
9,372
11,583
12,840,485
0
8,499,282
3,509,572
6,158,806
4,105,512
3,131,310
2,281,216
398,157
906,362
9,414,966
3,845,640
2,773,985
732,761
1,005,560
7,819,812
20,701,564
12,442,508
5,971,862
4,841,785
5,695,833
117,076,976
MEAN INODME
10,108
Source: 1980 Census
WMMINilTY PRODUCTS
THREE MILE RADIUS
1971
1975
1976
1977
1997
1999
2031
2032
2033
2034
2035
2036
2037
2038
2039
2,116
4,876
3,744
4,586
2,709
2,386
5,100
4,312
2,050
3,879
3,828
5,225
6,894
4,453
2,639
539
1,631
1,047
1,315
771
687
1,120
1,061
295
904
1,240
1,396
1,809
1,088
711
0.10
0.10
0.80
0.80
0.60
0.55
0.55
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
212
488
2,995
3,669
1,625
1,312
2,805
4,312
2,050
3,879
3,828
5,225
6,894
4,453
2,639
54
163
838
1,052
463
378
616
1,061
295
904
1,240
1,396
1,809
1,088
711
13,061
13,911
13,835
15,025
13,211
16,021
11,982
13,242
15,913
9,164
12,172
12,271
13,304
14,369
13,447
703,988
2,268,884
11,588,196
15,806,300
6,111,409
6,053,535
7,380,912
14,049,762
4,694,335
8,284,256
15,093,280
17,130,316
24,066,936
15,633,472
9,560,817
2041
2042
2043
2044
2045.01
2045.02
2046
2047
2048
2049
2061
2051
2062
2063
2064
2065
2071
2072
2073
2074
2075
2076
2077
2078
2079
2081
2082
2083
2084
2088
2089
2091
2092
2093
2094
2095
2096
2097
2098
2211
2217.01
2217.02
2218
2219
2227
2241
2242
2243
2244
2245
2246
2261
2262
2263
2264
2265
5,349
3,183
4,250
5,365
5,615
4
3,619
4,524
5,832
4,936
8,059
7,322
3,015
5,964
1,348
216
4,585
232
1,629
27
877
179
1,916
2,292
2,364
1,267
4,716
5,816
4,596
4,600
7,688
8,629
3,714
3,337
8,070
4,866
2,969
1,284
5,666
6,161
1,921
2,842
5,735
3,257
2,863
2,420
3,766
5,454
6,762
2,166
3,405
568
523
2,243
6,854
3,722
1,451
1,000
1,211
1,455
1,439
0
1,018
1,169
1,530
1,304
437
1,858
1,245
555
256
51
1,424
53
815
12
621
129
1,443
1,843
876
308
1,253
2,009
1,611
2,256
3,116
3,176
1,359
1,793
3,154
1,969
914
465
1,786
1,925
478
831
1,832
913
215
762
1,208
1,771
1,901
633
805
135
115
572
1,822
1,073
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.40
0.10
1.00
1.00
1.00
1.00
0.60
0.90
1.00
1.00
1.00
0.40
0.90
1.00
0.60
0.60
0.95
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
5,349
3,183
4,250
5,365
5,615
4
3,619
4,524
5,832
4,936
8,059
7,322
3,015
5,964
1,348
216
4,585
232
1,629
27
877
179
1,916
2,292
2,364
1,267
4,716
5,816
1,838
460
7,688
8,629
3,714
3,337
4,842
4,379
2,969
1,284
5,666
2,464
1,729
2,842
3,441
1,954
2,720
2,420
3,766
5,454
6,762
2,166
3,405
568
523
2,243
6,854
3,722
1,451
1,000
1,211
1,455
1,439
0
1,018
1,169
1,530
1,304
437
1,858
1,245
555
256
51
1,424
53
815
12
621
129
1,443
1,843
876
308
1,253
2,009
644
226
3,116
3,176
1,359
1,793
1,892
1,772
914
465
1,786
770
430
831
1,099
548
204
762
1,208
1,771
1,901
633
805
135
115
572
1,822
1,073
14,431
12,416
14,490
11,860
11,154
0
13,915
15,011
15,720
14,154
8,912
13,259
5,496
5,642
8,911
7,807
11,492
8,273
7,414
6,505
31,447
8,463
8,671
6,010
8,780
9,976
12,566
11,614
12,851
8,857
8,816
10,117
9,786
9,363
9,151
11,381
9,917
11,157
10,271
11,292
13,156
13,148
10,535
10,062
5,946
9,101
10,302
11,126
11,728
11,576
12,189
9,950
8,744
13,671
11,960
11,596
20,939,381
12,416,000
17,547,390
17,256,300
16,050,606
0
14,165,470
17,547,859
24,051,600
18,456,816
3,894,544
24,635,222
6,842,520
3,131,310
2,281,216
398,157
16,364,608
438,469
6,042,410
78,060
19,528,587
1,091,727
12,512,253
11,076,430
7,691,280
3,072,608
15,745,198
23,332,526
8,281,184
1,998,139
27,470,656
32,131,592
13,299,174
16,787,859
17,317,352
20,168,270
9,064,138
5,188,005
18,344,006
8,694,840
5,659,711
10,925,988
11,580,072
5,511,964
1,214,471
6,934,962
12,444,816
19,704,146
22,294,928
7,327,608
9,812,145
1,343,250
1,005,560
7,819,812
21,791,120
12,442,508
2266
2267
2281
2282
2283
2284
2285
2286
2287
2288
2289
2291
2293
2294
2311
2312
2317
2318
2319
5309
5311
5312
5313
5324
GRAND TOTAL
MEAN INOJME
1,913
4,745
3,432
4,851
4,847
5,721
2,928
2,484
5,016
3,621
2,469
2,610
3,150
4,595
2,011
6,311
6,087
4,575
4,210
6,083
6,699
8,226
9,233
340
458
1,319
935
1,598
1,509
1,733
1,042
880
1,676
1,151
668
802
1,129
1,574
769
2,189
2,164
1,441
1,462
1,513
1,734
2,075
2,267
82
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.60
1.00
0.35
0.20
1.00
0.40
1.00
0.15
0.30
0.15
0.70
1,913
4,745
3,432
4,851
4,847
5,721
2,928
2,484
5,016
3,621
2,469
2,610
3,150
2,757
2,011
2,209
1,217
4,575
1,684
6,083
1,005
2,468
1,385
238
458
1,319
935
1,598
1,509
1,733
1,042
880
1,676
1,151
668
802
1,129
944
769
766
433
1,441
585
1,513
260
623
340
57
375,536
113,139
82.8
312,146
93,286
13,039
10,488
9,372
8,739
9,680
9,800
9,809
9,225
9,909
9,431
8,469
11,430
10,737
10,330
11,146
11,362
10,142
10,277
10,055
13,989
14,457
14,187
13,802
16,872
5,971,862
13,833,672
8,762,820
13,964,922
14,607,120
16,983,400
10,220,978
8,118,000
16,607,484
10,855,081
5,657,292
9,166,860
12,122,073
9,755,652
8,571,274
8,704,996
4,389,458
14,809,157
5,880,164
21,165,357
3,760,266
8,831,408
4,693,370
968,453
1,049,974,339
11,255
APPENDIX B
65
SOURCES OF INFORMATION
Sources Of The Following Costs, Fees, And Rentals:
Interviews And Telephone Conversations Made During July 1985.
Land Cost:
Site Costs:
Construction Costs:
Upland Industries Appraisal
Macomber Construction
Macomber Construction
Pace Membership Warehouse,Inc.
Seismic Compliance:
Los Angeles Department of
Building & Safety
Los Angeles Planning Department
Jerde Partnership
JMB/Federated
JMB/Federated
Upland Industries
Permit Fees:
Architectural Fees:
Legal Fees:
Marketing:
Square Footage:
Farmers Market Rent:
Retail Rent:
Office Rent:
Storage Rents:
Wholesale Store Rent:
Grand Central Market, Los Angeles
Farmers Market, Los Angeles
JMB/Federated
Coldwell Banker & Company
Grand Central Market
Pace Membership Warehouse, Inc.
Maintenance & Security
Taxes
Insurance
JMB/Federated
Los Angeles County Assessor
JMB/Federated
66
Phase One Financial Projection
67
PHOJEXT: PHASE ONE: FARMERS MARKET & RETAIL
EXHIBIT I
DEVEU)PMENT COT BUDGET
DOLLARS/SF
SF
DOLLARS
LAND:
LAND PURCHASE
SITE 006TS:
PREPARATION-BUILD
PREPARATION-LAND
PARKING
LANDSCAPING
IUTAL SITE OSTS
OINSTRUCrION
FARMERS MARKET
HEAD HOUSE 0t44ERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 00O9MERCIAL
FREIGHT HOUSE 2 STORAGE
FREIGHT HOUSE 3 OFFICE
WAREHOUSE STIRE
SEISMIC (OMPLIANCE
IUAL O]NSTRUCTION
'UTAL IMPIUVEMENTS
13.77
703,300
0
12.00
3.50
3.00
1.50
74,056
55,000
154,000
457,613
888,672
192,500
462,000
686,420
2,229,592
22.00
30.00
30.00
30.00
35.00
30.00
17.00
10.00
55,000
11,619
11,619
22,619
28,199
0
0
129,056
1,210,000
348,570
348,570
678,570
986,965
0
0
1,290,560
4,863,235
7,092,827
FEES:
ARCH/ENG
PERMITS
LEGAL
MARKETING
DEVEWP
UrAL FEES
5%
1%
4%
354,641
70,928
100,000
100,000
283,713
909,283
(INTINGENCY
1,000,000
IUrAL PFJTECT GST
9,002,109
EXHIBIT II
OPERATING PIOFORMA
FULLY LEASED: STABILIZED YEAR
DDLLARS/SF
NET RENTAL INCOME
FARMERS MARKET
HEAD HOUSE RETAIL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 RETAIL
FREIGHT HOUSE 2 STORAGE
FREIGHT HOUSE 3 OFFICE
WAREHOUSE STORE
SUBTUrAL
26.46
26.46
16.54
26.46
13.23
16.54
6.00
MAINTENANCE & SECURITY
TAXES & INSURANCE
TUAL TENANT IN(XME
LESS VACANCY
1UrAL
SF
33,000
8,133
9,295
15,833
25,379
0
0
873,180
215,207
153,719
418,949
335,765
0
0
1,996,821
82,346
82,346
317,751
226,965
544,717
5%
99,841
INO0ME
OPERATING EXPENSES
MAINTENANCE & SECURITY
TAXES & INSURANCE
PIOMOTION
REPLACEMENT RESERVE
TUTAL EXPENSES
CASH FOWMBEFORE DEBT SERVICE
DOLLARS
2,441,697
0.20
129,056
129,056
129,056
497,995
355,711
11,393
24,417
889,516
1,552,181
0SIZ
OS*[
oz
%Sol
%Sol
%OOT
%Sol
%Sol
(sIX) No1i33viowa
HDNMIISNI It SMVL
3DNVNJ)JIVW
AmunoaI
3801s 3Sfl0Iaisi
39VHOIS
33IAA0
J.3qx~w SHMM~IA
%Sol
%OZ
01*0
S*o 0
31
SZro
11*0
%OOT
%08
%06
%OL
%08
%OL
%09
jm3m
&LVWXV.I SNIVD 1VLIdVD
31WH NO.LVZ flY.tlcW)
NOIXV13NI
NOIzxdWO
N~dA 9NISVfl 331AAO
jS;3HI3jII JM~NVW~Igd
LS3H3MI NOUZOUSNOw
SNOLIAwflssy
ZrIo
LXm
SOZ1V
o~t
lt9'T6
0
0
6LE'Sr
EE8'ST
S6Z'6
£ET'8
000 1c
JSN
9S0'6r1
0
0
66T'8Z
619'ZZ
619'T1
619'11
000'ss
Im
2HOJIS 31Vs3 I(I
E 3SIXII JJ*H3HA
z as"1O M1ia~w
T asfiXM iJ*i3w
33ImU0 asnoM crean
'1iviomww
asnoH uN3H
Jqx~wV SHI3NA
yawN VM OcIoie
IVH*ES J031"iXd
SNI
.WSS
Jar"Id
III n19InX3
EXHIBIT IV
****
********************************************************
***********************************************************************************
*
*
******
*
******h*********************
YEAR
ACTIVITY
2
1
CONSRUCr
LEASING
**
***************************************************************
************h*************************l****
3
1
*
**
**********
**
**********
SPACE ANALYSIS
********
*****
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
13
SALE
4,648
4,648
9,295
4,648
4,648
9,295
4,648
4,648
9,295
4,648
3,486
1,162
3,486
1,162
0
0
3,486
1,162
3,486
1,162
0
0
3,486
1,162
3,486
1,162
0
0
3,486
1,162
9,295
9,295
9,295
9,295
9,295
9,295
9,295
9,295
9,295
9,295
THREE YEAR LEASES
LEASE UP
4,648
NON-TUIRNING YEAR
4,648
0
4,648
9,295
TURNING YEAR
STAY .75
LEAVE .25
'IUFAL SPACE LEASED
4,648
9,295
9,295
*
*********
*
*****
**
****
**************
******************************
EXHIBIT V
* *
********
**
**
*********************************************************************************
*
*
***
**
***
*
**
*********************************
*
**************************************
***********
*
*
***
*******************
*****
********
NET OPERATING INOME
1
CONSTRUCTION
YEAR
ACTIVITY
2
LEASING
3
1
4
2
* ************m"*
*********************h******************************h********************
MARKET RENT
FARMERS MARKET
RETAIL
OFFICE
STORAGE
WAREHOUSE STORE
5
3
6
4
*****
7
5
******
8
6
9
7
10
8
11
9
12
10
13
SALE
39.09
39.09
24.43
19.55
6.00
41.05
41.05
25.66
20.52
6.00
u*******""**************"***********************
24.00
24.00
15.00
12.00
6.00
25.20
25.20
15.75
12.60
6.00
26.46
26.46
16.54
13.23
6.00
27.78
27.78
17.36
13.89
6.00
29.17
29.17
18.23
14.59
6.00
30.63
30.63
19.14
15.32
6.00
32.16
32.16
20.10
16.08
6.00
33.77
33.77
21.11
16.89
6.00
35.46
35.46
22.16
17.73
6.00
37.23
37.23
23.27
18.62
6.00
FARMERS MARKET
RETAIL
OFFICE
792,000
575,198
209,142
831,600
603,958
146,399
873,180
634,156
153,719
916,839
665,864
161,405
962,681
699,157
169,476
1,010,815
734,115
177,949
1,061,356
770,821
186,847
1,114,424
809,362
196,189
1,170,145
849,830
205,999
1,228,652
892,322
216,299
S'URAGE
304,549
319,777
335,765
352,554
370,181
388,691
408,125
428,531
449,958
472,456
0
1,880,890
0
1,901,734
0
1,996,821
0
2,096,662
0
2,201,495
0
2,311,570
0
2,427,149
0
2,548,506
0
2,675,931
0
2,809,728
288,210
205,864
494,074
302,620
216,157
518,778
317,751
226,965
544,717
333,639
238,314
571,953
350,321
250,229
600,550
367,837
262,741
630,578
386,229
275,878
662,107
405,540
289,672
695,212
425,817
304,155
729,973
447,108
319,363
766,471
469,464
335,331
804,795
492,937
352,098
845,035
94,044
95,087
99,841
104,833
110,075
115,579
121,357
127,425
133,797
140,486
147,511
154,886
2,280,919
2,325,426
2,441,697
2,563,782
2,691,971
2,826,569
2,967,898
3,116,293
3,272,107
3,435,713
451,696
322,640
11,393
474,281
338,772
11,393
497,995
355,711
11,393
522,895
373,496
11,393
549,039
392,171
11,393
576,491
411,779
11,393
605,316
432,368
11,393
635,582
453,987
11,393
667,361
476,686
11,393
700,729
500,521
11,393
785,729
824,446
865,099
907,784
952,604
999,664
1,049,078
1,100,962
1,155,440
1,212,643
22,809
23,254
24,417
25,638
26,920
28,266
29,679
31,163
32,721
34,357
1,472,381
1,477,725
1,552,181
1,630,360
1,712,448
1,798,640
1,889,141
1,984,168
2,083,946
2,188,713
15.00
GROSS REVENUE
WAREHOUSE SIDRE
SUBTUTAL
MAINTENANCE & SECURITY
TAXES & INSURANCE
IUrAL TENANT INCOME
LESS VACANCY
W1UALREVENUE
OPERATING EXPENSES
MAINTENANCE & SECURITY
TAXES & INSURANCE
PiOMrION
1UAL
EXPENSES
REPLACEMENT RESERVE
NET OPERATING INCOME
1,290,085 1,354,589
983,784
936,938
227,114
238,469
496,079
520,882
0
0
2,950,214 3,097,725
3,607,498 3,787,873
735,765
525,547
11,393
772,553
551,824
11,393
1,272,705 1,335,771
36,075
37,879
2,298,718 2,414,224
619'TT
6LB'Lt
?89'VOt'9Z
LtL'Ztl'.
9O9'6EO'Z
SOO'ES6'1
0t8'0~8'T
SSL'BSL'T
BZS'SR9'1
SZL'LLt'
181'ZSS'T
0
VSrIEZ
619'11
Llt'Ir
619'11
81E9s
TLI~tSt'T
SitI'91SY
£OT'E6W'
960'EOItl
(SSY8to'6)
601'Z00'6
0
619'11
C-L0'91
LcIS':
VZZ'tl'uZ' 8TL'86Z'r
a~s
ET
OT
Z
CIL'BOT'Z
6
IT
619'TT
IL'ZI
0
19T'l
L
6
8
01
991't86'T
9t6'180'Z
619'11
6L9'6Z
T'698'1
9
8
619'TI
9918?.
0t'9'96L'T
0
Z6'9Z
9tt'ZTL'T
s
L
09E'0E9'1
I
t£
9
s
9Lt'9It
90t'9t
~
6008ZZ
TR1E'ZLt'T
OJNISVM1
v£
MOIa
HM'
9[ZZlltzSOa3XOd S31VS
JSM O LXCcld
iWJI3L
amwlSI~1i~m3H
SNOISSIM4CD
3WWDNIDNI.LV83dO JON
tIOIILSNOD
I
AIIAIJ3V
H3
MMA 11Svo
IA 1I9IH1M
EXHIBIT VII
LEVERAGE ANALYSIS
1
CONSTRUCTION
YEAR
ACTIVITY
NON-LEVERAGED CASH FLOW
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
1,454,471
1,516,145
1,593,103
1,685,528
1,758,755
1,847,843
1,953,005
2,039,606
2,142,737
26,404,882
1,260,000
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
1,200,696
8,330,391
143,096
253,775
315,449
392,407
484,832
558,059
647,147
752,309
838,910
942,041
16,873,795
2
LEASING
(9,048,585) 1,403,096
9,000,000
MORTGAGE
cXNSTRUCTION MORTGAGE
POINTS
0.02
INTEREST
180,000
540,000
1,080,000
PERMANENT MORTGAGE
180,000
0.02
POINTS
FIXED DEBT SERVICE
'UAL DEBT SERVICE
DEBT PAYBACK
720,000
CASH FLOW AFTER DEBT SERVIC
(768,585)
EXHIBIT VIII
BEFORE TAX CASH FLOW ANALYSIS
*******************************************************************************t**** *******************************************************************************
NON LEVERAGED CASH FLOW
NET PRESENT VALUE
0.15
INTERNAL RATE OF REMJRN
LEVERAGED CASH FLOW
NET PRESENT VALUE
(9,048,585) 1,403,096
4,256,958
22.51%
1,454,471
1,516,145
1,593,103
1,685,528
1,758,755
1,847,843
1,953,005
2,039,606
2,142,737
26,404,882
143,096
253,775
315,449
392,407
484,832
558,059
647,147
752,309
838,910
942,041
16,873,795
(768,585)
0.15
INfrERNAL RATE OF RETURN
4,390,674
50.81%
EXHIBIT
IX
MORTGAGE AMORITIZATION
YEAR
ACTIVITY
1
CONSTRUCTION
LOAN BALANCE
INTERERST
AMORITIZATION
9,000,000
2
LEASING
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
8,969,304
1,170,000
30,696
8,934,618
1,166,010
34,686
8,895,422
1,161,500
39,196
8,,851,131
1,156,405
44,291
8,801,083
1,150,647
50,049
8,744,527
1,144,141
56,555
8,680,620
1,136,789
63,907
8,608,405
1,128,481
72,215
8,526,802
1,119,093
81,603
8,434,590
1,108,484
92,212
8,330,391
1,096,497
104,199
1,472,381
1,477,725
1,552,181
1,630,360
1,712,448
1,798,640
1,889,141
1,984,168
2,083,946
2,188,713
2,298,718
12
10
EXHIBIT X
AFTER-TAX ANALYSIS
NET OPERATING INCOME
LESS
DEBT SERVICE INTEREST
DEPRECIATION
FINANCING FEES
'ITYAL DEDUCTABLE
PLUS REPLACEMENT RESERVE
TAXABLE INCOME
TAX SHELTER
0.5
NET GAIN
1,170,000 1,166,010 1,161,500
450,105
450,105
450,105
36,000
36,000
36,000
1,656,105 1,652,115 1,647,606
22,809
23,254
24,417
(160,915) (151,136)
(71,008)
80,458
75,568
35,504
1,156,405 1,150,647 1,144,141 1,136,789 1,128,481 1,119,093 1,108,484
450,105
450,105
450,105
450,105
450,105
450,105
450,105
36,000
36,000
36,000
36,000
36,000
36,000
36,000
1,642,510 1,636,753 1,630,246 1,622,894 1,614,586 1,605,198 1,594,590
25,638
26,920
28,266
29,679
31,163
32,721
34,357
13,487
102,615
196,659
295,926
400,745
511,469
628,480
(6,744)
(51,307)
(98,330) (147,963) (200,372) (255,734) (314,240)
AFTER-TAX CASH FLDW(LEVERAGED)
W/O SHELTER
WITH SHELTER
NET PRESENr VALUE
W/O SHELTER
WITH SHELTER
INTERNAL RATE OF RETURN
W/O SHELTER
WITH SHELTER
*********
********
********
(768,585)
(768,585)
143,096
223,553
253,775
329,343
315,449
350,953
392,407
385,664
484,832
433,525
558,059
459,729
647,147
499,184
752,309
551,937
838,910
583,176
942,041
627,801
1,096,497
450,105
1,546,602
36,075
788,191
(394,096)
4,018,258
12,855,537
16,479,699
3,639,633
4,149,254
49.18%
52.70%
***
******************************m***mmmm**m**mmm*****n****m***m*m********m************u**********m**m
*****mm**m*
************************************************************************************
******************************************************************************
EXHIBIT XI
************************************************************************************
************************************h******************************************
JOINT VENTURE
1
CONSTRUCTION
2
LEASING
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
CASH FLOW ATER DEBT SERVICE
(768,585)
LAND VALUE
3,611,871
PREFERED RETURN
0.08
CUMULATIVE SHORTAGE
DEVELOPER MANAGEMENT FEE(.2)
CASH FLOW AFTER PREFERRED
(768,585)
143,096
253,775
315,449
392,407
484,832
558,059
647,147
752,309
838,910
942,041
16,873,795
143,096
203,020
85,930
50,755
0
252,359
122,520
63,090
(0)
313,926
97,544
78,481
(0)
387,866
446,447
(1,372) (158,870)
96,966
111,612
(0)
0
203,020
252,359
313,926
387,866
446,447
517,718
601,847
671,128
753,633
7,688,144
50,755
63,090
78,481
96,966
111,612
129,429
150,462
167,782
188,408
7,379,715
YEAR
ACTIVITY
UPLAND INDUSTRIES
CASH FLOW
IRR
(3,611,871)
517,718
(387,638)
129,429
0
601,847
671,128
753,633 (1,547,397)
(700,535)(1,082,714)(1,547,397)
288,950
150,462
167,782
188,408
239,059
(0)
0
0 17,893,183
13.82%
DEVELOPER
CASH FLOW
IRR
(768,585)
143,096
29.07%
************************************************************************************
***********************************************************h******************
AFTER TAX JOINT VENTURE
UPLAND INWUSTRIES
CASH FLOW
(3,611,871)
TAX SHELTER
TUrAL RETURN
(3,611,871)
11.16%
IRR
DEVELOPER
CASH FLOW
TAX SHELTER
UrAL RETURN
IRR
25.43%
(768,585)
0
(768,585)
0
40,229
40,229
203,020
37,784
240,804
252,359
17,752
270,111
313,926
(3,372)
310,554
387,866
(25,654)
362,212
446,447
(49,165)
397,282
517,718
(73,982)
443,736
601,847
(100,186)
501,661
671,128
(127,867)
543,261
753,633
7,688,144
(157,120) (2,206,177)
596,513
5,481,968
143,096
40,229
183,324
50,755
37,784
88,539
63,090
17,752
80,842
78,481
(3,372)
75,110
96,966
(25,654)
71,313
111,612
(49,165)
62,447
129,429
(73,982)
55,448
150,462
(100,186)
50,276
167,782
(127,867)
39,915
188,408
(157,120)
31,288
7,379,715
(2,206,177)
5,173,538
Combined Development Financial Projection
, 77
CJMBINED
PROJECT:
DEVEIDPMENT
EXHIBIT I
DOLLARS/SF
DEVELDPMENT OST BUDGET
SF
DOLLARS
LAND:
LAND PURCHASE
SITE 006TS:
PREPARATION-BUILD
PREPARATION-LAND
PARKING
LANDSCAPING
ItrAL SITE OJSTS
13.77
703,300
0
12.00
3.50
3.00
1.50
125,556
155,000
329,000
131,113
1,506,672
542,500
987,000
196,670
3,232,842
22.00
30.00
30.00
30.00
35.00
30.00
17.00
10.00
55,000
11,619
11,619
22,619
28,199
51,500
100,000
125,556
1,210,000
348,570
348,570
678,570
986,965
1,545,000
1,700,000
1,255,560
8,073,235
QMONSTRUCTION
FARMERS MARKET
HEAD HOUSE OOMKERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 OMERCIAL
FREIGHT HOUSE 2 SlDRAGE
FREIGHT HOUSE 3 OFFICE
IAREHOUSE STIORE
SEISMIC OMPLIANCE
IUrAL Q4STRUCTION
TAL
IMPROVEMNETS
11,306,077
FEES:
ARCH/ENG
PERMITS
LEGAL
MARKETING
5%
1%
IEVELOP
4%
TUAL FEES
CONTINGENCY
1UrAL
PimECT 006T
565,304
113,061
100,000
100,000
452, 243
1,330,608
1,000,000
13,636,684
EXHIBIT II
DDLLARS/SF
OPERATING P)UFORMA
FULLY LEASED: STABILIZED YEAR
NET RENTAL INCOME
FARMERS MARKET
HEAD HOUSE RETAIL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 RETAIL
FREIGHT HOUSE 2 SIORAGE
FREIGHT HOUSE 3 OFFICE
STORE
SUB'IUrAL
26.46
26.46
16.54
26.46
13.23
16.54
6.00
WAREHOUSE
MAINTENANCE & SECURITY
TAXES & INSURANCE
'IUrAL TENANT INCOME
LESS VACANCY
SF
33,000
8,133
9,295
15,833
25,379
41,200
100,000
873,180
215,207
153,719
418,949
335,765
681,345
600,000
3,278,166
82,346
82,346
317,751
226,965
544,717
5%
163,908
TOTAL INCOME
OPERATING EXPENSES
MAINrENANCE & SECURITY
TAXES & INSURANCE
PIOUION
REPLACEMENT RESERVE
'IUPAL EXPENSES
CASH FLDW BEFORE DEBT SERVICE
DOLLARS
3,658,975
0.20
180,556
180,556
180,556
696,720
497,657
11,393
36,590
1,242,361
2,416,614
**********************************************************************
********
************
EXHIBIT III
******************************************************************************
************
PIOJECr ASSIMPTIONS
******************************************************************************
PROJECT SMMARY
BUILDING AREA
FARMERS MARKET
HEAD HOUSE CL044ERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1
FREIGHT HOUSE 2
FREIGHT HOUSE 3
OILESALE STORE
************
TUAL
GR4OSS
55,000
11,619
11,619
22,619
28,199
51,500
100,000
280,556
AREA
SPACES
RATIO
329000
940
4.5
PERCENT
60%
70%
80%
70%
90%
80%
100%
NET
33,000
8,133
9,295
15,833
25,379
41,200
100,000
232,841
PARKING
CET ASSUMPTIONS
CONSTRUCTION INTEREST
PERMANENT INTEREST
OFFICE LEASING UPON COMPLETION
0.12
0.13
0.25
LEASE-UP PERIOD
12
INFLATION RATE
CAPITALIZATADN RATE
CAPITAL GAINS TAX RATE
RENT ASSUMPTIONS
FARMERS MARKET
RETAIL
OFFICE
STORAGE
WIAREHOUSE STORE
VACANCY
105%
105%
105%
105%
100%
5%
EXPENSE ASSUMPTIONS
MAINTENANCE & SECURITY
TAXES & INSURANCE
DEPRECIATION (YRS)
105%
105%
20
0.05
0.10
20%
3.50
2.50
EXHIBIT IV
************************************************************************************
********************************************************************d***************
SPACE ANALYSIS
***************
YEAR
ACTIVITY
************************************************************************************h*********************************
1
CONSRUCr
************************************a*
2
LEASING
3
1
4
2
5
3
******.**************************************
6
4
7
5
8
6
9
7
10
8
****************************************************************************
11
9
12
10
13
SALE
***********
THREE YEAR LEASES
LEASE UP
4,648
NOI-TURNING YEAR
25,248
20,600
4,648
29,895
45,848
25,248
29,895
3,486
1,162
18,936
6,312
50,495
50,495
'
45,848
25,248
29,895
45,848
25,248
29,895
45,848
15,450
5,150
3,486
1,162
18,936
6,312
15,450
5,150
3,486
1,162
18,936
6,312
15,450
5,150
3,486
1,162
50,495
50,495
50,495
50,495
50,495
50,495
50,495
50,495
TURNING YEAR
STAY .75
LEAVE .25
'IUAL SPACE LEASED
4,648
29,895
50,495
EXHIBIT V
NE'T OPERATING INCOME
YEAR
ACTIVITY
1
CONSTRUCTION
2
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
24.00
24.00
15.00
12.00
6.00
25.20
25.20
15.75
12.60
6.00
26.46
26.46
16.54
13.23
6.00
27.78
27.78
17.36
13.89
6.00
29.17
29.17
18.23
14.59
6.00
30.63
30.63
19.14
15.32
6.00
32.16
32.16
20.10
16.08
6.00
33.77
33.77
21.11
16.89
6.00
35.46
35.46
22.16
17.73
6.00
37.23
37.23
23.27
18.62
6.00
39.09
39.09
24.43
19.55
6.00
792,000
575,198
518,142
304,549
600,000
2,789,890
831,600
603,958
795,299
319,777
600,000
3,150,634
873,180
634,156
835,064
335,765
600,000
3,278,166
916,839
665,864
876,818
352,554
600,000
3,412,074
962,681
699,157
920,658
370,181
600,000
3,552,678
1,010,815
734,115
966,691
388,691
600,000
3,700,312
1,061,356
770,821
1,015,026
408,125
600,000
3,855,328
1,114,424
809,362
1,065,777
428,531
600,000
4,018,094
1,170,145
849,830
1,119,066
449,958
600,000
4,188,999
1,228,652
892,322
1,175,019
472,456
600,000
4,368,449
MAINTENANCE & SECURITY
TAXES & INSURANCE
TUAL TENANT INOME
288,210
205,864
494,074
302,620
216,157
518,778
317,751
226,965
544,717
333,639
238,314
571,953
350,321
250,229
600,550
367,837
262,741
630,578
386,229
275,878
662,107
405,540
289,672
695,212
425,817
304,155
729,973
447,108
319,363
766,471
469,464
335,331
804,795
492,937
352,098
845,035
LESS VACANCY
139,494
157,532
163,908
170,604
177,634
185,016
192,766
200,905
209,450
218,422
227,844
237,736
3,144,469
3,511,881
3,658,975
3,813,423
3,975,594
4,145,874
4,324,668
4,512,401
4,709,521
4,916,497
5,133,822 5,362,013
631,946
451,390
11,393
663,543
473,960
11,393
696,720
497,657
11,393
731,556
522,540
11,393
768,134
548,667
11,393
806,541
576,101
11,393
846,868
604,906
11,393
889,211
635,151
11,393
933,672
666,909
11,393
980,356
700,254
11,393
1,029,373 1,080,842
735,267
772,030
11,393
11,393
1,094,729
1,148,896
1,205,771
1,265,490
1,328,195
1,394,035
1,463,167
1,535,756
1,611,974
1,692,003
1,776,034 1,864,266
31,445
35,119
36,590
38,134
39,756
41,459
43,247
45,124
47,095
49,165
2,018,295
2,327,866
2,416,614
2,509,799
2,607,644
2,710,380
2,818,254
2,931,521
3,050,452
3,175,329
MARKET RENT
FARMERS MARKEr
RETAIL
OFFICE
STORAGE
WAREHOUSE STORE
GROSS REVENUE
FARMERS MARKET
RETAIL
OFFICE
STORAGE
WAREHOUSE S'IORE
SUBIJUAL
UrAL REVENUE
OPERATING EXPENSES
MAINTENANCE & SECURITY
TAXES & INSURANCE
PR0OTION
TUrAL EXPENSES
REPLACEMENT RESERVE
NET OPERATING INCOME
15.00
LEASING
13
SATE
41.05
41.05
25.66
20.52
6.00
1,290,085 1,354,589
936,938
983,784
1,233,770 1,295,459
496,079
520,882
600,000
600,000
4,556,871 4,754,715
51,338
53,620
3,306,451 3,444,128
EXHIBIT VI
CASH FLDW
1
CONSTRUCTION
YEAR
ACTIVITY
************************
2
LEASING
3
1
4
2
5
3
2,018,295
2,327,866
2,416,614
2,509,799
2,607,644
2,710,380
31,445
252,476
35,119
206,000
36,590
11,619
38,134
63,119
39,756
51,500
41,459
11,619
**************************************************
NET OPERATING INODME
***********
6
4
7
5
*****************
8
6
9
7
10
8
2,818,254
2,931,521
3,050,452
3,175,329
3,306,451
3,444,128
43,247
63,119
45,124
51,500
47,095
11,619
49,165
63,119
51,338
51,500
53,620
11,619
*********
****
************
11
9
12
10
****************************
13
SALE
************
TRNING COSTS
ODMMISSIONS
REFURBISHMENT
UIAL PROJECT C06T
SALES PRDCEEDS
CASH FLDW
46,476
13,636,684
34,441,278
(13,683,160) 1,734,375
2,086,747
2,368,405
2,408,546
2,516,388
2,657,303
2,711,888
2,834,897
2,991,738
3,063,045
37,644,890
EXHIBIT VII
LEVERAGE ANALYSIS
**************************
************************************************************************************************************************************
YEAR
ACTIVITY
1
0ONSTRUCTION
NON-LEVERAGED CASH FLOW
(13,683,160) 1,734,375
MOR'IAGE
2
LEASING
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
2,086,747
2,368,405
2,408,546
2,516,388
2,657,303
2,711,888
2,834,897
2,991,738
3,063,045
37,644,890
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
1,867,749
12,958,386
218,998
500,656
540,797
648,639
789,554
844,139
967,148
1,123,989, 1,195,296
22,818,755
12
10
14,000,000
00NSTRUCTION MORTGAGE
POINTS
INTEREST
0.02
280,000
840,000
1,680,000
PERMANENT MORTGAGE
POINTS
0.02
FIXED DEBT SERVICE
TIOTAL DEBT SERVICE
DEBT PAYBACK
CASH PLOW AFTER DEBT SERVIC
280,000
1,120,000
(803,160)
1,960,000
(225,625)
****************************************************************************************************************************
EXHIBIT VIII
**********************h**************************************************************************************************s**
BEFORE TAX CASH FLOW ANALYSIS
NONLEVERAGED CASH FLDW
(13,683,160) 1,734,375
NET PRESENT VALUE
0.15
5,549,972
INTERNAL RATE OF RETURN
21.53%
LEVERAGED CASH FLDW
NET PRESENT VALUE
0.15
INTERNAL RATE OF RETURN
(803,160)
5,757,976
48.86%
(225,625)
2,086,747
2,368,405
2,408,546
2,516,388
2,657,303
2,711,888
2,834,897
2,991,738
3,063,045
37,644,890
218,998
500,656
540,797
648,639
789,554
844,139
967,148
1,123,989
1,195,296
22,818,755
609'[[E'ZZ IZI'tTB
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***********************************************************************h************
******************************************************************************
EXHIBIT XI
*****************************************************************
*****************************************************************************************
JOINT VENTURE
***********************************************************a*****************************************************************************************************
1
CONSTRUCTION
YEAR
ACTIVITY
CASH FLOW ATER DEBT SERVICE
(803,160)
LAND VAUE
7,000,000
PREFERED RIMMRN
0.08
CIMULATIVE SHORTAGE
DEVEWPER MANAGEMENT FEE(.2)
CASH FLOW AFTER PREFERRED
(803,160)
UPLAND INDUSTRIES
CASH FLOW
IRR
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
(225,625)
218,998
500,656
540,797
648,639
789,554
844,139
967,148
1,123,989
1,195,296
22,818,755
(225,625)
175,198
384,802
43,800
0
400,525
544,277
100,131
(0)
432,637
671,640
108,159
0
518,911
712,729
129,728
0
631,643
641,086
157,911
(0)
675,311
525,775
168,828
0
773,719
312,056
193,430
(0)
899,191
956,237
(423,372)
(27,135) (423,372)
560,000
224,798
239,059
239,059
(0)
(0) 22,443,068
175,198
400,525
432,637
518,911
631,643
675,311
773,719
899,191
956,237
11,358,162
43,800
100,131
108,159
129,728
157,911
168,828
193,430
224,798
239,059
7,960,593
2
LEASING
(7,000,000)
9.75%
DEVELOPER
CASH FLOW
IRR
(3,487,601)
(225,625)
9.44%
************************************************************************************************************************
AFTER TAX JOINr VENIURE
**************************************************************************************************************************************************************
UPLAND INDUSTRIES
CASH FLOW
(7,000,000)
TAX SHELTER
TUrAL RETURN
(7,000,000)
IRR
7.33%
DEVEWPER
CASH FLOW
(3,487,601)
TAX SHELTER
0
TOTAL RETIM
(3,487,601)
4.66%
IRR
0
127,024
127,024
(225,625)
127,024
(98,602)
*************************************************************************************h
175,198
47,161
222,359
400,525
22,852
423,377
432,637
(2,812)
429,826
518,911
(29,917)
488,993
631,643
(58,558)
573,085
675,311
(88,832)
586,479
773,719
(120,849)
652,869
899,191
(154,726)
744,465
956,237 11,358,162
(190,588) (3,073,050)
765,649
8,285,112
43,800
47,161
90,960
100,131
22,852
122,983
108,159
(2,812)
105,348
129,728
(29,917)
99,810
157,911
(58,558)
99,353
168,828
(88,832)
79,996
193,430
(120,849)
72,580
224,798
(154,726)
70,072
239,059
7,960,593
(190,588) (3,073,050)
48,471
4,887,543
**************************************
Limited Development Financial Projection
87
PROJELT: WARHOUSE STORE ELIMINATED
EXHIBIT I
DOLLARS/SF
DEVELDPMENr CXET BUDGET
LAND:
LAND PURCHASE
SITE COSTS:
PREPARATION-BUILD
PREPARATION-LAND
PARKING
LANDSCAPING
TOrAL SITE COSTS
ONSTRUCTION
FARMERS MARKET
HEAD HOUSE COMERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 COMMERCIAL
FREIGHT HOUSE 2 STORAGE
FREIGHr HOUSE 3 OFFICE
WAREHOUSE STORE
SEISMIC COMPLIANCE
TOTAL CONSTRUCTION
SF
DOLLARS
13.77
703,300
0
12.00
3.50
3.00
1.50
125,556
55,000
154,000
406,113
1,506,672
192,500
462,000
609,170
2,770,342
22.00
30.00
30.00
30.00
35.00
30.00
17.00
10.00
55,000
11,619
11,619
22,619
28,199
51,500
0
180,556
1,210,000
348,570
348,570
678,570
986,965
1,545,000
0
1,805,560
6,923,235
TOTAL IMPIOVEMENTS
9,693,577
ARCH/ENG
PERMITS
LEGAL
MARKETING
DEVELDP
TOTAL FEES
484,679
96,936
100,000
100,000
387,743
1,169,358
FEES:
ONTINGENCY
TOTAL PWiJECT COST
5%
1%
4%
1,000,000
11,862,934
EXHIBIT II
OPERATING PROFORMA
FULLY LEASED: STABILIZED YEAR
DOLLARS/SF
NET RENTAL INODME
FARMERS MARKET
READ HOUSE RETAIL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1 RETAIL
FREIGHT HOUSE 2 S'IORAGE
FREIGHTi HOUSE 3 OFFICE
WAREHOUSE S'IORE
SF
DDLLARS
26.46
26.46
16.54
26.46
13.23
16.54
33,000
8,133
9,295
15,833
25,379
41,200
6.00
0
SUB'UrAL
82,346
82,346
5%
'1UrAL INCOME
REPLACEMENT RESERVE
'IOTAL EXPENSES
CASH F[W BEFORE DEBT SERVICE
317,751
226,965
544,717
133,908
3,088,975
OPERATING EXPENSES
MAINTENANCE & SECURITY
TAXES & INSURANCE
PIROMOION
0
2,678,166
MAINTENANCE & SECURITY
TAXES & INSURANCE
'IZTAL TENANT INCOME
LESS VACANCY
873,180
215,207
153,719
418,949
335,765
681,345
0.20
180,556
180,556
180,556
696,720
497,657
11,393
30,890
1,236,661
1,852,314
EXHIBIT III
******************************************************************************
************
POJECT ASSUMPTIONS
******************************h***********************************************
PROJECT SUIARY
BUILDING AREA
FARMERS MARKET
HEAD HOUSE CMERCIAL
HEAD HOUSE OFFICE
FREIGHT HOUSE 1
FREIGHT HOUSE 2
FREIGHT HOUSE 3
WHOLESALE STORE
'IOTAL
*************
GROSS
55,000
11,619
11,619
22,619
28,199
51,500
0
180,556
PERCENT
60%
70%
80%
70%
90%
80%
100%
NET
33,000
8,133
9,295
15,833
25,379
41,200
0
132,841
PARKING
AREA
SPACES
RATIO
154000
440
4.5
OST ASSLUMPTIONS
ONSTRUCTION INTEREST
PERMANENT INTEREST
OFFICE LEASING UPON COMPLETION
LEASE-UP PERIOD
INFLATION RATE
CAPITALIZATAON RATE
CAPITAL GAINS TAX RATE
RENT ASSUMPTIONS
FARMERS MARKET
RETAIL
OFFICE
STORAGE
WHAREHOUSE STIORE
VACANCY
105%
105%
105%
105%
100%
5%
EXPENSE ASSUMPTIONS
MAINTENANCE & SECURITY
TAXES & INSURANCE
DEPRECIATION (YRS)
105%
105%
20
0.12
0.13
0.25
12
0.05
0.10
20%
3.50
2.50
***
*******************h*******************************************************h****************************************************************************************
EXHIBIT IV
SPACE ANALYSIS
YEAR
1
ACTIVITY
*******************h*****************
XOJNSRUCT
2
LEASING
3
4
5
6
7
8
9
10
11
12
13
1
2
3
4
5
6
7
8
9
10
SALE
**********.**********************************
****************************************************************************************
THREE YEAR LEASES
LEASE UP
4,648
NON-TIURNING YEAR
25,248
20,600
4,648
29,895
45,848
25,248
29,895
45,848
25,248
29,895
45,848
25,248
29,895
45,848
3,486
1,162
18,936
6,312
15,450
5,150
3,486
1,162
18,936
6,312
15,450
5,150
3,486
1,162
18,936
6,312
15,450
5,150
3,486
1,162
50,495
50,495
50,495
50,495
50,495
50,495
50,495
50,495
50,495
50,495
TURNING YEAR
STAY .75
LEAVE .25
'IUrAL SPACE LEASED
4,648
29,895
50,495
BZB'6LB'Z TST'ZtL'Z
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999'OZ6
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6S*VT
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tTE'ZSB'T 99S'E9L'T S66'ESt'l
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LTL'VtS
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99T'OL9'Z
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0
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tssZSE
090,919
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tgolsgg
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00*9
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tS'9T
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t6t'601
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E
s
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M-KDNI f)NI.LVHSdO MN
3AHSMH
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3WODNI JMNSI IVUU
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3sols 3sfmasw
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A 11BIM
*******************
****
********************
**************************************************************
*
*
**
*****
**
**************************
EXHIBIT VI
******************************************************************************************************************************************************************
CASH FLDW
**************************************************************************************
3
1
2
LEASING
1
CONSTRUCTION
YEAR
ACTIVITY
4
2
**
***********
*************************************************************************
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
13
SALE
*******************************************************************************************
**********************************************************************.*************
2,253,954
2,367,221
2,486,152
2,611,029
35,759
37,547
39,424
41,395
43,465
45,638
47,920
11,619
63,119
51,500
11,619
63,119
51,500
11,619
1,763,566
1,852,314
1,945,499
2,043,344
2,146,080
25,745
29,419
30,890
32,434
34,056
252,476
206,000
11,619
63,119
51,500
1,453,995
NET OPERATING INCOME
*
************
2,742,151 2,879,828
TURNING 0STS
COMMISSIONS
REFURBISHMENRT
TUAL PROJECT OST
SALES PIOCEEDS
11,862,934
28,798,278
(11,909,410) 1,175,775
CASH FLOW
***********
46,476
******
* ************
1,528,147
*************************
1,809,805
*****
1,849,946
1,957,788
*
***********
*************
2,098,703
2,153,288
2,276,297
2,433,138
**************************************************************
2,504,445
31,443,290
********
EXHIBIT VII
LEVERAGE ANALYSIS
2
LEASING
YEAR
ACTIVITY
1
CONSTRUCTION
NON-LEVERAGED CASH FLOW
(11,909,410) 1,175,775
6
4
7
5
8
6
9
7
10
8
11
9
12
10
1,809,805
1,849,946 1,957,788
2,098,703
2,153,288
2,276,297
2,433,138
2,504,445
31,443,290
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517 1,467,517
1,467,517 1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
10,181,589
60,630
342,288
490,270
631,185
685,771
808,780
965,621
1,036,928
19,794,184
1,528,147
1,809,805
1,849,946 1,957,788
2,098,703
2,153,288
2,276,297
2,433,138
2,504,445
31,443,290
60,630
342,288
490,270
631,185
685,771
808,780
965,621
1,036,928
19,794,184
3
1
4
2
1,528,147
5
3
11,000,000
MORTmAGE
00NSTRUCTION MORTGAGE
POINTS
INTEREST
0.02
PERMANENT MORmAGE
0.02
POINTS
FIXED DEBT SERVICE
ITAL DEBT SERVICE
DEBT PAYBACK
220,000
660,000
1,320,000
220,000
880,000
CASH FLOW AFTER DEBT SERVIC (1,789,410)
1,540,000
(364,225)
382,429
EXHIBIT VIII
BEFORE TAX CASH FLOW ANALYSIS
(11,909,410) 1,175,775
NON LEVERAGED CASH FLOW
3,495,428
0.15
NET PRESENT VALUE
19.71%
INTERNAL RATE OF RETURN
LEVERAGED CASH FLOW
0.15
NET PRESENT VALUE
INTERNAL RATE OF RE1URN
(1,789,410)
3,658,859
29.99%
(364,225)
382,429
EXHIBIT VII
LEVERAGE ANALYSIS
YEAR
ACTIVITY
1
00NSTRUCTION
NON-LEVERAGED CASH FILW
(11,909,410) 1,175,775
MORIGAGE
2
LEASING
3
1
4
2
1,528,147
1,467,517
1,467,517
5
3
6
4
7
5
8
6
9
7
10
8
11
9
1,809,805
1,849,946 1,957,788
2,098,703
2,153,288
2,276,297
2,433,138
2,504,445
31,443,290
1,467,517
1,467,517
1,467,517 1,467,517
1,467,517 1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
1,467,517
12
10
11,000,000
00NSTRUCTION MORT'GAGE
POIN'IS
0.02
INTEREST
220,000
660,000
PERMANENfT MOR'GAGE
POINTS
0.02
FIXED DEBT SERVICE
'IUTAL DEBT SERVICE
1,320,000
220,000
880,000
1,540,000
DEBT PAYBACK
10,181,589
CASH FLOW AFTER DEBT SERVIC (1,789,410)
(364,225)
60,630
342,288
1,528,147
1,809,805
60,630
342,288
382,429
490,270
631,185
685,771
808,780
965,621
1,036,928
19,794,184
1,849,946 1,957,788
2,098,703
2,153,288
2,276,297
2,433,138
2,504,445
31,443,290
631,185
685,771
808,780
965,621
1,036,928
19,794,184
EXHIBIT VIII
BEFORE TAX CASH FLOW ANALYSIS
NON LEVERAGED CASH FLOW
(11,909,410) 1,175,775
NET PRESENT VALuE
0.15
3,495,428
INTERNAL RATE OF RETURN
19.71%
LEVERAGED CASH FLOW
NET PRESENT VALUE
0.15
INTERNAL RATE OF RETURN
(1,789,410)
3,658,859
29.99%
(364,225)
382,429
490,270
******************************************************************************************************************************************************************
EXHIBIT IX
************************************************************************h***********
******************************************************************************
MORTGAGE AMMITIZATION
****************************************************************************************************************************************************************
YEAR
ACTIVITY
**************************************
LWAN
BALANCE
INTERERST
AMORITIZATION
1
CIONSTRUCTION
2
LEASING
3
1
4
2
11
9
12
10
10,818,049 10,756,879 10,687,756 10,609,647 10,521,384 10,421,647 10,308,943
1,413,384 1,406,346 1,398,394 1,389,408 1,379,254 1,367,780 1,354,814
54,133
61,171
69,123
78,109
88,263
99,737
112,703
10,181,589
1,340,163
127,355
5
3
********************************************
11,000,000 10,962,483 10,920,088 10,872,183
1,430,000 1,425,123 1,419,612
37,517
42,394
47,906
6
4
7
5
8
6
9
7
10
8
******************************************************h**********************
************************************************************************************
**************************************************i****************************
EXHIBIT X
****************.*******************************************************************
*******************************************************************************
AFTER-TAX ANALYSIS
***********************************************************************************
NEITOPERATING INCDME
1,453,995 1,763,566 1,852,314
LESS
DEBT SERVICE INTEREST
1,430,000 1,425,123 1,419,612
DEPRECIATION
593,147
593,147
593,147
FINANCING FEES
44,000
44,000
44,000
IUrAL DEDUCrABLE
2,067,147 2,062,269 2,056,758
PLUS REPLACEMENT RESERVE
25,745
29,419
30,890
TAXABLE INOJME
(587,407) (269,285) (173,555)
TAX SHELTER
0.5
293,703
134,643
86,777
NET GAIN
AFTER-TAX CASH FIW(LEVERAGED)
W/O SHELTER
(1,789,410) (364,225)
60,630
342,288
WITH SHELTER
(1,789,410)
(70,522)
195,272
429,065
NEITPRESENT VALUE
W/O SHELTER
2,781,892
WITH SHELTER
3,687,883
IfrERNAL RATE OF RETIURN
W/O SHELTER
27.86%
WITH SHELTER
31.81%
************************************************************************************
***************************************************************************j**
1,945,499
2,043,344
2,146,080
2,253,954
2,367,221
2,486,152
2,611,029
1,413,384 1,406,346 1,398,394 1,389,408 1,379,254 1,367,780 1,354,814
593,147
593,147
593,147
593,147
593,147
593,147
593,147
44,000
44,000
44,000
44,000
44,000
44,000
44,000
2,050,530 2,043,493 2,035,541 2,026,555 2,016,401 2,004,927 1,991,961
32,434
34,056
35,759
37,547
39,424
41,395
43,465
(72,597)
33,906
146,298
264,946
390,245
522,621
662,534
36,299
(16,953)
(73,149) (132,473) (195,122) (261,310) (331,267)
382,429
418,727
490,270
473,317
631,185
558,036
685,771
553,298
808,780
613,658
*******************I***********************************************************
965,621
704,310
1,036,928
705,661
2,742,151
1,340,163
593,147
1,933,309
45,638
854,479
(427,240)
4,691,992
15,102,193
19,366,945
********
* **************************************************************************
***************************************************************************
EXHIBIT XI
JOINT VENTURE
**********************************h******************************************************************************************************************************
YEAR
ACTIVITY
1
CONSTRUCTION
2
LEASING
3
1
4
2
5
3
6
4
7
5
8
6
9
7
10
8
11
9
12
10
CASH FLOW ATER DEBT SERVICE (1,789,410)
LAND VALUE
6,000,000
PREFERED RETUIRN
0.08
CLMULATIVE SHORTAGE
DEVELOPER MANAGEMENT
FEE(.2)
CASH FLOW AFTER PREFERRED
(1,789,410)
(364,225)
60,630
342,288
382,429
490,270
631,185
685,771
808,780
965,621
1,036,928
19,794,184
(364,225)
48,504
431,496
12,126
0
273,830
637,666
68,458
0
305,943
811,723
76,486
(0)
392,216
899,507
98,054
0
504,948
874,558
126,237
0
548,617
805,941
137,154
(0)
647,024
638,917
161,756
0
772,497
346,421
193,124
(0)
829,543
(3,122)
(3,122)
480,000
207,386
239,059
(0) 19,078,247
48,504
273,830
305,943
392,216
504,948
548,617
647,024
772,497
829,543
10,016,002
(364,225)
12,126
68,458
76,486
98,054
126,237
137,154
161,756
193,124
207,386
6,778,183
0
146,852
146,852
48,504
67,321
115,825
273,830
43,389
317,219
305,943
18,149
324,092
392,216
(8,477)
383,740
504,948
(36,575)
468,374
548,617
(66,236)
482,381
647,024
(97,561)
549,463
772,497
(130,655)
641,841
829,543 10,016,002
(165,633) (2,559,616)
663,909
7,456,386
12,126
67,321
79,447
68,458
43,389
111,846
76,486
18,149
94,635
98,054
(8,477)
89,577
126,237
(36,575)
89,663
137,154
(66,236)
70,918
161,756
(97,561)
64,195
193,124
(130,655)
62,469
207,386
6,778,183
(165,633) (2,559,616)
41,752
4,218,567
UPLAND INDUSTRIES
CASH FLOW
IRR
(6,000,000)
9.45%
DEVELOPER
CASH FLOW
IRR
(2,387,443)
10.82%
AFTER TAX JOINT VENTURE
UPLAND INDUSTRIES
CASH FLOW
(6,000,000)
TAX SHELTER
UFAL RETURN
(6,000,000)
IRR
7.35%
DEVELOPER
CASH FLOW
(2,387,443)
TAX SHELTER
0
IUAL RETURN
(2,387,443)
6.60%
IRR
(364,225)
146,852
(217,374)
BIBLIOGRAPHY
Taxable Sales in
California State Board of Equalization.
California During 1982.
1982.
Sales and Marketing Management Magazine.
Power.
1983. "Survey of Buying
Los Angeles Times. 1983. California Leading Companies, 1982.
Coldwell Banker & Company.
Market in Los Angeles, 1983.
1983.
The California
Los Angeles Department of Building & Safety. 1982.
Earthquake Hazard Reduction in Existing Buildings.
Real
Estate
Division 88
Executive Department
City Economic Development Office,
Los Angeles.
of
Profile
Economic
Mayor. 1983. An
of
the
City Economic Development Office, Office fo the Mayor. August
1983. Los Angeles Wholesale Produce Market Revitalization Program
Sumriary.
98