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North Corktown Spruce Developers �(NCSD) Presentation

Presented by:

Mary Coats

Kimle Nailer

Angela Owens

Theodore McNeal

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    • Development Team
    • Neighborhood Context
    • Future Developments
    • Concept & Vision
    • Community Engagement
    • Proposed Site Plan
    • Building Concept Plan
    • Sources and Uses
    • Financial Summary
    • Proforma
    • Project Schedule

Table of Contents

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North Corktown Spruce Developers

Architect, Civil Engineer &

Real Estate Consultant

Property Manager/Real Estate Consultant & QA/QC

Construction Manager & General Contractor

Project Manager &

QA/QC

Mary Coats

Kimle Nailer

Angela Owens

Theodore McNeal

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Neighborhood Context

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Future Developments

Demand

870 of affordable Units needed

700-1100 of Units planned through 2027

Total Absorption Remaining. Roughly 800

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Community Engagement

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Hub of Entertainment

Just Northwest of Downtown Detroit

Customers with disposable income

Compliment Housing Development

Foster Community

Integration of market and affordable rent rates to create a sustainable and resilient community

The Spruce: Live. Work. Play.

Concept & Vision

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    • Millennials and Young Professionals interested in living close to work
    • Professionals seeking to enjoy North Corktown's rich culture
    • Environmentally conscious workers interested in multi-modal transportation
    • Long-term Detroit residents from Community

Target Customers

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Proposed Site Plan

80% AMI (5)

60% AMI (3)

50% AMI (1)

60% AMI (1)

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Programming - Residential

27 RESIDENCES

UNIT COUNT

(9) - 2 BR/ 2BA - (18) - 1 BR/ 1 BA

UNIT MIX

50% - 80% AMI

AFFORDABILITY

30 PARKING SPACES

PARKING

IN - UNIT WASHER / DRYER

GREEN SPACE

COMMON ROOF TOP

BIKE RACKS

AMENITIES

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Elevations

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Sources and Uses of Funds

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UNDERWRITING ASSUMPTIONS

Residential Rent Escalator: 2%

Expense Escalator: 3%

Residential Vacancy: 5% (Stabilized)

Residential Average Rent/ Sq. Ft: $1.92

KEY METRICS

Exit Strategy: Sale in Year 10

Beginning Cap Rate: 7%

Value at Sale: $6,535,656

Financial Summary

Exit Cap Rate: 5%

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Pro Forma Overview

$6.8M

TOTAL DEVELOPMENT COST

$277K

NET OPERATING INCOME

1.12

DEBT SERVICE COVERAGE

9%

INTERNAL RATE- OF -RETURN

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Project Schedule

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Thank You!

The North Corktown Spruce Developers

Questions & Open Discussion

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Appendix

Citations for Images

Community Engagement:

“North Corktown Detroit”- (Wikipedia)

North Corktown Associate meeting held Tuesday

April 20, 2021 6:30 p.m. Virtual only Via Zoom

“Choice Neighborhood Initiative” - Four images were retrieved from

North Corktown Cultural Plan, February 27, 2020

Living Lab North corktown Neighborhood Associate

Eastern Market- Facebook/ Eastern Market Partnership (March 2, 2018)

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Appendix

Citations for Maps

Adjacent Areas & Future Developments:

Greater Corktown - The framework January 28, 2020 Study Area Open House Boards

“Brains Detroit Business” By Kirk Pinho

“Real Estate Insider For Development with Corktown”

City of Detroit Choice Neighborhoods Initiative: Majority of Development in Historic Corktown Along Michigan Ave

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Citations for Images

Neighborhood Context:

Michelle & Chris Gerald:

Hostel

The Bagley Trumbull Market

Holy Trinity Church

Mudgies Deli

Moral of A Pheasant- Jim West/Alamo Stock, Image ID: Ewj RKT.

Ford Train Station- Jordan Grzelewski December 11, 2020, The Detroit News

Slow’s BBQ- Photo- via Valeebelly Post By Alaina, Friday October 24, 2014

Corktown Historical Society/ Neighborhood

Nancy Whiskey: Nicole Rupersybody 10.8.2019 5:00 p.m.

University Detroit Mercy Wikipedia 2016

Maybury Elementary School: Wikipedia Common The Media Repost

“The Greening of Detroit”: Ron Roelfs

Architectural Drawings: Carl Bolofer, Bold Studio

2420 Bagley Marketing package, Bunia Parker

Appendix