City of Elmhurst Development Proposal A Boutique Rental Apartment Concept 975 E. 22nd Street Wheaton IL 60189 | www.nxtgendevelopment.com CONFIDENTIALITY & DISCLAIMER STATEMENT This presentation by Next Generation Development, LLC (the “Company”) is solely for use by the recipient in considering its potential interest in investing in the Company or its projects. This Presentation is not an offer to sell or solicitation of an offer to purchase securities. If interested in investing in the Company or its projects, the investor would have to meet certain qualifications. Such a transaction would be effected in a private offering, without registration under the federal securities laws (Securities Act of 1933) or applicable state law. This Presentation is confidential and shall not be used for any other purpose or copied, distributed to or discussed with others (other than designated representatives of such recipients who agree to keep this Presentation and all related non-public information confidential). Further, this Presentation does not contain all of the information that a recipient may need to determine whether to pursue or make an investment in the Company or its projects. Each recipient must conduct and rely on its own evaluation of the merits of making an investment and the risks involved in doing so. This Presentation includes statements, estimates and projections with respect to future performance. Forward looking statements are subject to risks, uncertainties, and other factors, some of which are not currently known to the Company. Actual events or results may differ materially from those expressed or implied from forward looking statements as a result of various factors. The Company assumes no obligation with respect to such matters and in particular shall not be obligated to update this Presentation or any forward looking statement to reflect events or circumstances arising after the date on which it was made. CONFIDENTIALITY & DISCLAIMER STATEMENT A CITY OF ELMHURST DEVELOPMENT PROPOSAL TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 2 COMPANY PROFILE 5 COMPANY OVERVIEW 6 PROJECT HISTORY/EXPERIENCE 7 REFERENCES 12 PROJECT DESCRIPTION & PROPOSED USES 13 FLOOR USE & AREA 16 TAX IMPACT 17 TIMELINE 18 PURCHASE PRICE 19 APPENDIX SITE AERIAL GROUND FLOOR PLAN TYPICAL FLOOR 2-5 BUILDING SECTION ELEVATION CONCEPT A ELEVATION CONCEPT B PPK COMPANY BROCHURE TABLE OF CONTENTS P1 EXECUTIVE SUMMARY Elmhurst Request for Proposal Summary: The City of Elmhurst is seeking a proposal for the purchase and redevelopment of its 2 city-owned contiguous parcels effectively known as 138 and 142 N. Addison Avenue, Elmhurst, IL (“the site”). The site is currently utilized as a municipal parking lot with surface parking. Dimensionally the site is approximately 22,500 square feet, measures 150’ x 150’ with 150’ frontage along Addison Avenue. A rear alley way services parking behind the buildings along Addison Avenue. Municipal sewer systems and water systems directly service this site. Elmhurst, IL is a city that attracts many families and businesses alike. The City is located within Dupage County, and is located minutes from major transit including Metra and interstate highways and O’Hare airport as well as being minutes to major shopping centers like Oakbrook Centre, Yorktown Mall, and many fine and casual dining emporiums. Elmhurst has continued to grow even through the economic downturn with new housing opportunities and business opportunities continuing to be developed. The residents of Elmhurst are provided with first class medical services, highly rated schools, and many unique retail shops. The new Elmhurst Memorial Hospital, Elmhurst College, as well as a walkable downtown Elmhurst City Center are just some of the major attractions to Elmhurst. New development and re-development, including infill, is occurring around the City of Elmhurst. The site is Zoned C4, Central Business District, a part of the downtown core area of the City of Elmhurst. The zoning is intended to provide for civic and retail services that are traditionally found in the central business district. Many of the restrictions noted within the RFP with regards to C4 zoning have been reviewed and maintained in our initial concepts for the site. 1. 2. 3. 4. 5. No dwelling units shall be located on the street level within the proposed plan. We are not proposing a business, service or processing facility. No drive through products will be proposed by us. Truck parking would be prohibited within our proposal for this site. Parking. Currently a 65-foot tall parking structure with 16,000 square feet of first floor retail and 690 public parking spaces is being constructed on Addison. The Addison Deck is located across the street from the site. You will find in our proposal on-site parking at grade. The Site is also located within a Tax Increment Financing District/Special Service Area. The TIF will expire in 2021 and the sale of the site will be in conformity with the TIF statute. The site is located within the Central Business District Special Service Area 6 which was established for the purpose of promoting and marketing business in the Central Business District. EXECUTIVE SUMMARY P2 EXECUTIVE SUMMARY CONTINUED Project Identification: PIN 06-02-220-010 06-02-220-026 06-02-220-009 06-02-220-013 W 2nd Street Address Municipal Parking Lot Municipal Parking Lot 146-48 N. Addison Ave 132 Addison Avenue Lot Size 50’ x 150’ 100’ x 150’ 50’ x 150’ 50’ x 150’ N. Addison Street Location Site 1 Site 2 Site 3 Alt Site 3 Site 3 N.York Street Lot 2 Alt. Site 3 Site 3 EXECUTIVE SUMMARY Robert T. Palmer Drive Lot 1 Alt. Site 3 P3 EXECUTIVE SUMMARY CONTINUED In reviewing the location of the site within the City and the City’s desire to sustain a pedestrian environment, Next Generation Development considered the highest and best use of the site to be a residential type structure. The city has concentrated its downtown vision on mixed-use developments which include office, retail and residential. The City’s new Addison Parking Deck will add another 16,000 square feet of retail to the City’s Central Business District. To create density for this site we have engaged in discussions with the owners to the North and to the South of the site to gain an additional 50’-100’ in width to the total site. In determining the potential for this redevelopment site, NGD reviewed Elmhurst’s demographics, the current availability of housing in Elmhurst, the need for additional retail opportunities and the City’s desire to sustain a pedestrian environment and the goal to support the City’s Central Business District. We have also considered Elmhurst’s noted reputation of being named the Top Ten U.S. Town for Families (Family Circle Magazine 2014) and the truly family centric atmosphere of this city. Elmhurst college, named one of America’s Best Colleges (U.S. News & World Report) is a top level private university and a draws students, parents, professors and administrators to the area. Next Generation Development is proposing that the City review our proposal for a downtown 5-story boutique apartment project. The project will consist of 52 luxury 1 and 2 bedroom apartments ranging in square footage from 680 SF - 1,100 SF. The ground floor of the building features: • • • • • • • • • Leasing office 3,372 SF for work out/media room or potential retail space Refuse room Lobby and elevator bank Mail room Bike storage Electric room Parking is supplied at the rear of the building, accessed by the current alley and supports 64 cars dependent upon ultimate 1st floor design elements. Concierge office Floors 2- 5 consist of 13 apartments per floor with 9 styles of apartments: • 7 - 1 Bedroom Units per floor, for a total of 28, 1 bedroom units • 6 – 2 Bedroom Unit per floor, for a total of 24, 2 bedroom units Proposed building height: • 10’8” first floor height • Floors 2-6 have proposed plate heights of 9’8” • Total building height is 52’8” EXECUTIVE SUMMARY P4 NEXT GENERATION DEVELOPMENT, LLC. COMPANY PROFILE Company Name Address Phone Number Website Next Generation Development, LLC 975 E. 22nd Street, Suite 200, Wheaton, IL 60189 630-384-6440 www.nxtgendevelopment.com Principals James P. Hughes, Jr. John Kulczewski Robert Fitzsimmons Sheila Fitzsimmons Year established Former entity Wiseman Hughes Inc.- 1961 Next Generation Development, LLC- 2008 Number of employees 22 Current Projects The Hamptons of Hinsdale- Hinsdale, General Contractor Metro 59 Apartments- Aurora, Owner Randall Highlands Apartments- Aurora, Owner/General Contractor Springbank- Plainfield, Owner/General Contractor Union Square- Aurora, Owner/General Contractor COMPANY PROFILE P5 NEXT GENERATION DEVELOPMENT, LLC. COMPANY OVERVIEW Next Generation Development, LLC (NGD) is a residential development company focused on multi-family and for-sale single family and townhomes. NGD and its predecessor company, Wiseman-Hughes, has been a significant and innovative presence in Chicago’s western suburbs for more than 50 years. The company was founded and lead by James Hughes Senior until his son, James “Jimmy” Hughes, Jr., assumed the reigns of the company in 1985. NGD’s senior staff, all of whom have a long tenure with the Hughes’, have a significant amount of experience in land acquisition and entitlement, land development, product development, construction, marketing, sales and finance. Since the company’s inception, the Hughes’ and their partner, John Kulczewski, have built over 1,150 multi-family residential units and more than 10,000 for-sale homes in 46 communities. This senior management team grew the company into one of the top five privately held home builders in the Chicago area operating primarily in DeKalb, DuPage, Kane, Kendall and Will counties. COMPANY OVERVIEW P6 PROJECT HISTORY FOR NEXT GENERATION DEVELOPMENT, LLC. / WISEMAN HUGHES 1992-1999 1961-1965 HICKORY HILLS Forest Hills Timber Ridge Collette Highlands Patricia Hills Hickory Hills Shopping Center 1965-1969 DARIEN Hinsbrook Development 1969-1984 WHEATON Briarcliffe Briarcliffe Knolls Briarcliffe Lakeside Townhomes Briarcliffe West Townhomes Briarcliffe Knolls Townhomes Briarcliffe Lakes Manor Homes Briarcliffe Lakeside Apartments* Wiseman Hughes Office Building 1984-1990 NAPERVILLE Waterfront Estates Terrace of Brookdale Chantecleer Lakes Apartments* NIHB Cavalcade of Homes Fields of Naperville Green Ridge Estates 1986-1989 WINFIELD Timber Ridge 1988-1997 NORTH AURORA Timber Oaks at the Fox 1989-2001 BOLINGBROOK Brookwood Estates 1990-2001 JOLIET Caton Crossing Homesteads Caton Crossing Village 1992-1997 AURORA Four Pointes 1992-1999 NAPERVILLE Baileywood Condos 1994-1998 NAPERVILLE-AURORA Chicory Place 1996-2001 AURORA Nature’s Edge Savannah Heartland Savannah Renaissance 1997-2002 NAPERVILLE Signature Club at Clearwater PLAINFIELD Champion Creek 2002-2008 PLAINFIELD NIHB Cavalcade of Homes Tuttle Estates SUGAR GROVE Windsor Pointe Windsor Pointe Townhomes Windsor West Windsor West Villas NAPERVILLE Railway Plaza* NORTH AURORA Randall Highlands Mirador OSWEGO Ashcroft Place Ashcroft Walk AURORA The Plaza on New York Legacy Fields SYCAMORE Reston Ponds YORKVILLE Windett Ridge NGD PROJECTS 2011-2015 1998-2006 ST. CHARLES Renaux Manor Single Family Renaux Manor Townhomes 1999 BOLINGBROOK Creekside 2001 OSWEGO Ashcroft HINSDALE Hamptons of Hinsdale NORTH AURORA Randall Highlands* AURORA Metro 59* Union Square PLAINFIELD Springbank of Plainfield *Apartment Projects DEKALB Devonaire Farms AURORA Stableford Townes of White Eagle PROJECT HISTORY P7 NEXT GENERATION DEVELOPMENT, LLC. PROJECT EXPERIENCE HAMPTONS OF HINSDALE | HINSDALE, IL FOR SALE CONDOMINIUM/VILLA & CLUBHOUSE PROJECT Project owned by Inland Real Estate & Grosvenor General contracting by Next Generation Development, LLC Project Location: Grant Street & Kennedy # of Units: 119 { 93 condominiums | 26 villas} Project Status: Currently under construction 4 story condominium building construction with full underground internal parking garage. PROJECT EXPERIENCE P8 NEXT GENERATION DEVELOPMENT, LLC. PROJECT EXPERIENCE RANDALL HIGHLANDS | NORTH AURORA, IL MULTI-FAMILY RENTAL TOWNHOME & CLUBHOUSE PROJECT Project owned by Next Generation Development, LLC and Marquette Properties Project Location: North of I-88 and Orchard Road/Randall Road # of Units: 146 Construction Completed: June 2014 Project Status: SOLD 2 & 3 bedroom units, 2 car garage | Clubhouse with pool and fitness room PROJECT EXPERIENCE P9 NEXT GENERATION DEVELOPMENT, LLC. PROJECT EXPERIENCE RAILWAY PLAZA | NAPERVILLE, IL RENTAL APARTMENT PROJECT Owned by Wiseman Hughes Homes (successor to Next Generation Development, LLC) Project Location: Route 59 and North Aurora Road # of Units: 417 Project Status: Completed in 2006 20.83 acres acquired by Wiseman-Hughes Enterprises; Planned, preliminarily annexed and zoned, entitled, developed and built out. CURRENT PROJECTS P10 NEXT GENERATION DEVELOPMENT, LLC. PROJECT EXPERIENCE METRO 59 | AURORA, IL APARTMENT PROJECT Project owned by Next Generation Development & Avgeris & Associates Project Location: Route 59- next to Naperville Metra Station # of Units: 460 Project Status: Construction to begin July TOD apartment project with clubhouse/swimming pool. PROJECT EXPERIENCE P11 REFERENCE #1 Robert McGinnis Building Commissioner/Director of Community Development- Hinsdale E-Mail: rmcginnis@villageofhinsdale.org Phone: (630) 789-7036 REFERENCE #2 Mike Toth Community Development Director- North Aurora E-Mail: mtoth@vil.north-aurora.il.us phone: (630) 897-1457 ext 228 REFERENCE #3 Carrie Hansen Director of Planning & Government Services, Schoppe Design Associates E-Mail: carrie@schoppedesign.net phone: (630) 551-3355 REFERENCES P12 ADDISON STREET PROJECT DESCRIPTION & PROPOSED USES Project Description: The Project will be targeting a niche of luxury apartment seekers that seek a smaller more intimate lifestyle within a boutique apartment community. With the project being within walking distance to shopping, restaurants, and transportation, NGD sees this as the perfect complement to any luxury condominium project in the immediate downtown area. The rent basis is targeted to be at the upper end of the rent spectrum in this area. We compared rents at Regency Place, which average 1,199 SF at $2.12 per unit, and AIMCO’s luxury townhome rentals at $1.80 PSF and rents nearing $3,295. The units would be finished in modern luxurious finishes, including granite, stainless, designer tile and fixtures. An on-site concierge would provide for package deliveries, maid service scheduling and more. The building would provide an on-site fitness area, and luxury lounge, concierge office, leasing manager office, and business center for residents. Interior parking will be provided for each unit. Bike storage will also be provided. The exterior of the building would be in conformance with colors and materials found within the downtown business district. The project at this juncture in its design is projected to be five-stories in height. The façade would include balconies on all 2 bedroom units. The roof over the garage could become an amenity with grill area, dog area, bar, and sundeck. PROJECT DESCRIPTION/PROPOSED USES P13 ADDISON STREET PROJECT DESCRIPTION & PROPOSED USES Project Description: The following items were considered in the design of the proposed Luxury Rental Apartment Building and all are incorporated in the proposal: Downtown Plan conformance: • • • • • • • • • Mixed Use development Appropriate Use for Site Continuation of and enhancement to the street wall on Addison Ave. Proposed storefronts on Addison Street with no setback Proposed streetscape improvements Concealed parking Upper level setbacks Pedestrian oriented design with provisions for bicycle storage Possible wider walks on Addison Design Guideline conformance: • Scale: • Bulk & Proportion: • Placement/ Orientation: • Architectural style: • Doors & Entrances: • Windows: • Rear yards/ facades: • Roofline and parapets: • Awnings: • Lighting: Breakdown of façade with colors, material and details String courses, setbacks, material changes, breakdown in to smaller vertical segments. Architectural details help change the scale Street wall alignment High quality materials, compatible design solution Recessed, clearly defined Ground floor display along Addison Design intent will be consistent Variety and hierarchy in design Planned for storefronts Elmhurst standard lighting at street, appropriate design on building PROJECT DESCRIPTION/PROPOSED USES P14 ADDISON STREET PROJECT DESCRIPTION & PROPOSED USES Project Uses: In consideration of the best and highest use for this property, NGD examined the current wants and needs within the city’s business district. We gleaned that a higher pedestrian count is of extreme importance to the city and its business owners as well as an increase in the tax roll. A multi-story residential project would accomplish both goals and would be in-line with the cities vision for this area of the central business district. As the City completes the 6 story, approximately 65’ high, Addison Parking Deck across from the site, the entire streetscape of this street is changing to a more urban and densely constructed streetscape. The Addison parking deck is purportedly providing for over 16,000 square feet of future retail, therefore we do not see the need for additional retail for this project. In our evaluation, the square footage of the City’s site doesn’t provide enough area to construct a financially viable residential project. A for-sale condominium project could also be considered, when and if, end-user financing and development financing becomes more tolerant of condominiums. Next Generation Development has spoken to each of the neighboring owners who are interested in selling their lots. We see the possibility of gaining control of either the lot to the north or the lot to the south of the site, which will add 50’ in width to the project for a more viable and feasibly end use. Additionally, NGD visited with Elmhurst College to entertain possible student housing. At this time they do not have any need for additional housing for their student population as many of the students commute to the college. PROJECT DESCRIPTION/PROPOSED USES P15 SUMMARY OF PROPOSED DEVELOPMENT BY FLOOR USE & AREA: A summary of the proposed development by floor use and area is detailed below: Floor Ground (Lobby, etc.) Ground (parking) 2 3 4 5 TOTAL Gross Enclosed Area (SF) 5,750 Parking Balconies 23,825 13,365 13,365 13,365 13,150 58,995 SUMMARY OF PROPOSED DEVELOPMENT 23,825 350 350 350 440 1,490 P16 TAX IMPACT: In our evaluation of the site and adjacent lots, we estimated the taxes for this project as shown below. TAX IMPACT P17 TIMELINE: TASK TIME Acquisition of site August 2015 Acquisition of additional parcel August 2015 Begin architectural drawings August 2015 Zoning and preliminary plat approval December 2015 Finalize development budget December 2015 Source & equity approval February 2016 Plan approval February 2016 Final plat approval March 2016 Commence apartment construction March 2016 Commence leasing October 2016 Completion of construction December 2016 Stabilized leasing June 2017 TIMELINE P18 PURCHASE PRICE: In the evaluation of the project costs, we have been able to roughly estimate acquisition and construction costs. At this time we are unable to put a value to the city's lots until such time as the proposed use is accepted that is outlined within this RFP. We have yet to acquire the adjacent parcels and estimate demolition expense and acquisition expense. Therefore, we cannot yet determine the final yield on cost and the ultimate value of the city's land. PURCHASE PRICE P19 PPK Architects Multi-Family Projects Brochure Office ● Healthcare ● Retail ● Financial ● Hospitality ● Mixed Use ● Multi– Family Architecture / Planning / Interiors ppk architects perkins pryde + kennedy architects Multi Family Residential Condominiums/ Rental Apartments ppk architects perkins pryde + kennedy architects Crescent Apartments Glen Ellyn, IL apartment building PPK Architects was retained by Next Generation Development to design a 185-unit apartment building in downtown Glen Ellyn, IL. The building includes public parking and amenities for a luxury rental market. CLIENT Next Generation Development PROJECT DATA 185-Unit Apartment Building ppk architects perkins pryde + kennedy architects Elmhurst Pointe Senior Living Development Elmhurst, Illinois The program for the building consists of 32 one and two bedroom units for independent Senior Living. The amenities include a restaurant, management office, Common room for social activities, laundry and a roof terrace. The site is a few blocks from the Chicago commuter train and suburban downtown shopping, theaters and other services. This project is part of a half block mixed use development. The side to the west of the senior housing facility is a retail bank, also designed by PPK Architects. CLIENT Inland Real Estate Development Oak Brook, IL PROJECT DATA 32 Units with Hospitality and Resident Services Retail at ground floor ppk architects perkins pryde + kennedy architects Main Street Station Roselle, IL This redevelopment called for a new focus for downtown Roselle, Illinois. This brown field site was redeveloped with the extension of Main Street and three or four new mixeduse structures. The final plan includes a five story mixed use building, a two story retail/office building and one single story commercial building. The site design called for an active streetscape that connects Park Avenue on the east and Roselle Road on the west. The retail focus is clearly on Main Street with a small amount of storefront on Park Ave. and Roselle Rd. The development is a successful T.O.D. with several new streetscape additions to enhance sustainable living such as plantings, bike racks and street furniture. CLIENT The Gammonley Group LaGrange, Illinois PROJECT DATA Retail/ Commercial 27,000 SF Residential 48 units 66,300 SF ppk architects perkins pryde + kennedy architects Hahn St. Apartments Elmhurst, IL PPK Architects worked with Lincoln Property Company to design a new 215-unit apartment building in downtown Elmhurst, as part of a RFP process. The five-story building included public parking, retail, public plaza, and upscale amenities for a luxury rental market. CLIENT Lincoln Property Company PROJECT DATA 215-Unit Apartment Building ppk architects perkins pryde + kennedy architects Lincoln Station New Lenox, IL This transit oriented development (TOD) is a luxury rental community with 312 units in 4 buildings. The concept plan has a park, playground, dog park(s) and a walking trail for residents. The unit mix will be approximately 65-70% One Bedroom units and 30-35% Two Bedroom units. The Ground Floors will have enclosed parking with approximately 46 parking spaces. The remaining space on the entry level will be a lobby and mechanical spaces. All of the community amenities will be in the Clubhouse. The Clubhouse will feature the Leasing Office, Outdoor Pool, Party Room, Movie Screening Room, Business Center and other resources for tenants. The exterior cladding will be a combination of masonry and stucco as the primary materials. Large terraces flank both ends of the top floor, at the entrance side of the building. All units have balconies; the end units will have balconies on the shorter sides of the buildings. Projecting cornices, small roof elements and horizontal banding add character and scale to the facades. CLIENT New Lenox Development, LLC PROJECT DATA ppk architects perkins pryde + kennedy architects Crescent Station Glen Ellyn, IL This mixed-use residential and retail development is part of vibrant, upscale downtown shopping district that also includes theaters, parks, and dining, and is adjacent to Metra trains that connects Glen Ellyn to downtown Chicago. Crescent Station includes 21 condominiums, with multiple facade setbacks to create outdoor spaces such as balconies and rooftop terraces. The retail portion offers 2,500 SF of divisible space. Crescent Station incorporates some historic design elements and limestone materials that are appropriate and consistent with traditional architecture of Glen Ellyn’s downtown district. This is a transit oriented development (T.O.D.) where design emphasis was placed on the streetscape and how the building fits into the suburban downtown community. CLIENT Gammonley Group Developer La Granger, IL PROJECT DATA 21 Units Retail at ground floor ppk architects perkins pryde + kennedy architects Station Crossing Downers Grove, IL PPK Architects was selected to design this mixed use retail/ residential project in downtown Downers Grove, IL. The site is across from the Metra Train Station. The project was the first mixed use development for Downers Grove in several years and has been the anchor development in the revitalization of the surrounding area. The project includes ground floor retail space facing the train station and a six story residential building entered on the north side of this full block redevelopment. The residential units at grade have separate “townhouse” style entrances. All units have exterior balconies to view the surrounding wooded residential areas and downtown Commercial District. The retail component has experienced full occupancy and features a curved storefront behind the screen wall/ arcade. CLIENT Gammonley Group Developer La Grange, IL PROJECT DATA 78,500 SF 12,000 SF Retail 48 Residential Units ppk architects perkins pryde + kennedy architects Market Street West Mixed Use Willow Springs, IL This mixed use development included retail space below a multi-level condominium building. The project included underground parking and a new in ground swimming pool and a Clubhouse. This is a two phase project that incorporates sustainable design with a green roof over the parking deck. It is a transit oriented development, directly across from a commuter train station. The architectural design compliments the Willow Springs downtown and Master Plan. The building materials and massing respective of the context which includes the Village Hall and new mixed use buildings on the adjacent site to the east. The solution is pedestrian friendly and is a sustainable development since it allows owners to have the opportunity to use public transportation and bicycles for local trips. CLIENT Market Street West LLC LaGrange, IL PROJECT DATA 51 Units Clubhouse ppk architects perkins pryde + kennedy architects Seven Bridges Condominiums Woodridge, Illinois The 12 story condominium building is part of the Seven Bridges Development between Route 53 and Seven Bridges Golf Course. The building has a gentle curve on the west façade for golf course views. The base of the building provides a two story parking garage and above provides the residences with a private pool and terrace. The building elevations relate to the surrounding materials of adjoining developments. The base is masonry to compliment the three story retail property to the east. The upper levels are a combination of glass and metal panel to reflect the green in the surrounding golf course and wooded residential neighborhoods. CLIENT The Gammonley Group La Grange, IL PROJECT DATA 140 Units 250,000 SF ppk architects perkins pryde + kennedy architects Seven Bridges Condominiums Woodridge, Illinois