Development Project Concept:
This redevelopment concept analyzes the idea of converting the 22,000ft building at 715 E Empire St. to mixed office/flex space as well as a local integrated food market. The project will continue to build value in other Constitution Place properties (712, 716, and self storage) and will add value to the area. The project should be considered as a singular phase in a multi-phase development. The goal of the complete development is to raise the value of all the assets in the portfolio and create a sustainable economic environment for tenants.
Phase 1: Current Constitution Place Assets (Multi-office complex) Current
Phase 2: Self-storage complex (Build on neighborhood's needs) Cost: $2.2mm - In Progress
Phase 3: South Empire development into urban office, market concept Cost: $1mm
Phase 4: Housing/rental assets in immediate area Cost: $1-2mm (Variable Cost)
Interactive Map of Project:
Current Assets on Site:
20,000 feet lot (5,000ft included in parking lot)- (Left portion on map next to trail)
32,000 lot adjacent to current lot with a ~22,000 ft two story building ($140,000)
Solid offer, considering the shape of the building (Last purchased in 2004 for $117,500)
Structural Engineering: $140,000
Office Space areas (7,900ft): $250,000
Two story building (10,000ft): $200,000
Rental Space: $155,000 at 90% occupancy ($14,300/m max)
(2- 2,400ft second story spaces for $2,400/m)
(1,700ft stand alone flex/res. $1,900/m)
(3- 900ft office spaces $1,100/m)
(2- 500ft office spaces $750/m)
(1- 300ft office space $500/m)
(1- 2,200ft office space $2,300/m)
Market Concept: $96,000 ($30,000 in costs)
$500 per unit per month
6 units on average
10% of sales for marketing, POS, and etc.
Est. sales $600,000 /yr
Total Revenue: $251,000
Total Gross Revenue: $221,000
Property Tax: $22,500 (Not accounting for the TIF)
Mortgage (15yr, 3.9, 912.5k): $80,500
Misc. Utilities/maintenance: $15,000
Total Est. Yearly Profit: $103,000
Local Food Market Concept:
The market concept is bring locally grown fresh food to the central area of Bloomington-Normal in a food dessert. The "Constitution Place Market" will allow farmers to sell DTC and capture more margin on their produce. By bringing together multiple businesses under one roof to sell, consumers will experience an easier way to buy farm-fresh local food.
Local, Fresh, Central, Simple
The goal is to make consumers feel as comfortable as possbiel while shopping at the market. They will feel as though they are at a full time local market, except with consistant branding and easy payment processing.
What makes the concept work for consumers?
- Integrated commerce (One processing system provided to all tenants)
- Close proximity to center of town
- All under one roof (Easy to get to the butcher, veggies, fruits, baker, and dairy)
What makes the concept work for businesses?
- Under one simple brand
- Marketing is handled (Allowing for a greater reach than one business could of handled)
- Multiple businesses allows for the building to be a destination (One stop shop)
- POS system is intergrated to create the best results for consumers as well as businesses
- Central location all year round allows for a steady cash flow
Cost for a Seller:
10% of sales for POS and marketing
Benefits for a Seller:
POS System (Hardware & Software) and fees
Parking & Loading dock
Rental Office/Flex Space Concept:
The office/flex space concept is to bring stylist modern loft and traditional office spaces to the market in central Bloomington-Normal. Total office space would be about 12,900ft combined. Above the market would be a 5,000ft floor divided up into two office spaces. These spaces would have high ceilings, large windows, and an extremely modern design. The office spaces would be perfect for anything from a law office to an emerging tech company.
Central, Active, Modern
The office spaces are ideal for companies with a growing millenial workforce. The space is in a premier location for active people with the Constitution trail right next door to the building. The modern design of the office space will feel very open, with large windows with views of the trail.
Replace the 5,000ft of office space above the market with residential living
(3) 1,600ft units at $1,500/mo
Market for urban apartments could be higher than office space, but overall revenue is lower. ($3,600/yr less)
Add a rooftop resturant
Rents for $3,000/mo
Costs: $120,000 in construction
This will continue to push the urban feel of the building and continue to elevate the experience of the market and the tenants.
TIF Scenerio and Full Office Rental:
$112,500 5 Year TIF Loan
$800,000 15 Year Loan ($5,885/month at 3.9%)
4,800 in additional space (6 X 800ft @ $900)
$64,800 in Additonal Revenue
Total Adjusted Revenue: $236,400
Adjusted Profit: $128,400 (+25%) (Non TIF: +14%)