MBA280 Class Projects Flipbook Spring '25

A publication of the MBA 280 Class Projects from Spring 2025. Instructed by Professor Nancy Wallace and Edward McFarlan

1. Bayfair REACH (Parcel 5): Michael Bernard, Robert Costis, Justine Lippens, Fernando Gonzalez Demaria, Ignacio

Mejia Zubillaga

2. Cornerstone Residences (Parcel 5): Will Allen, Gauri Deshpande, Dave Franks

3. EcoCore Building (Parcel 9): Abby Dong, Finlay Douglas, Obi Uwakah, Zaheen Chowdhury

4. The Core (Parcel 3): Sirui Zhou, Emma Li, Lijun Li, Brian Zhu

5. The Junction (Parcel 2): Joe Wilson, Jeff Chen, Sara Lucia, Nancy Zazueta, Alejandro Migliore, Ines Verdun

6. The Leandro (Parcel 4): Kendenn Rose, Erik Kuhn, Kyler Glodgett, Andrew Winter, Yutong Li

7. The Friden (Parcel 3): Peter Jin, Andrea Huynh, Malcolm Yin, John Schlitter, Adarsh Madhavan

8. Nexus Bayfair (Parcel 4) : Nina Anderson, Homin Kwark, Sehej Chadha, Akhila Nanjala, Ayush Kalani

Meet the Team

Michael Bernard Robert Costis

Justine Lippens

Ignacio Mejia Zubillaga

Fernando González

Selected Site: Building 5

● Gateway site into the broader development ● Potential anchor for pedestrian corridor and linear park ● Well positioned for a layering of functions with a blend of residential, commercial, and social spaces ● REACH shows unique opportunity to become multimodal point of connection

Target Residents

User profiles

Michelle, 30 YO: ●

Software engineer working for a fast-growing startup ● Prioritizes living in a vibrant neighborhood with groceries in a 5-minute radius ● Relies on her bike and BART to move ● Likes vibe and coziness that CLT buildings add to the space

Justo, 29 YO: ●

PhD collaborating with Lawrence Berkeley Lab ● Launching own biosciences startup ● Values nice place to work outside of his own apartment where he can meet other young professionals and feel part of a community ● Committed to minimizing his carbon footprint

Simple Greening & Public Spaces

Look & Feel

Landscaping, street trees, and small green areas to enhance urban livability

Pro Forma impact

• Minimal investment, high ROI • Increases property value by ~ 8- 10% ; reduces cooling costs by ~15-30%

Value to business proposition

• Well-being Benefits : Improves mental health and fosters community • Market Appeal : Walkability and green spaces improve leasing rates (by at least 3-4%)

Offsite Prefabrication

• Reduces construction time by up to 50% , cutting construction costs by up to ~20% • Opex Impact : Prefab components often have better energy efficiency and durability

Pro Forma impact

• Lower Waste & Disruptions : Faster completion and offsite precision lowers costs and waste and enhances community relations • Thermal Performance : Prefab panels improve insulation, lowering energy costs

Value to business proposition

Modular construction reduces on-site waste & build times

Cross-laminated timber

• 15-30% more expensive than cast-in-place concrete but 2.4% lower total lifecycle cost due to lifespan and salvage values

Pro Forma impact

• Carbon Reduction : CLT reduces CO ₂ emissions by 50% compared to concrete • Social Impact : CLT projects often increase local manufacturing jobs • Tenant Attraction : Environmentally conscious renters and businesses prefer sustainable materials

Value to business proposition

Sustainable, prefabricated wood panels that reduce embodied carbon & construction timelines

Summary of Financials

Major Risks to Performance

Escalation And Slow Rent Growth Are The Greatest Threats

1. Construction cost escalation 2. Slow rent growth 3. Construction and leasing delays 4. Increasing cap rates

1. Construction cost escalation 2. Slow rent growth 3. Construction and leasing delays 4. Increasing cap rates

Conclusion

● San Leandro ripe for development but requires bold vision

● Bayfair Reach anchors an energetic neighborhood that sets a precedent for East Bay TOD

● Creative, climate-forward project that delivers unique product for target tenants

● Intelligent capital stack and creative budget shows potential for strong investor returns

Meet the Team

Gauri Deshpande MBA, Haas

Will Allen March, CED

Dave Franks MBA, Haas

Cornerstone Residence at Bayfair Center

Located on Parcel 5: Cornerstone occupies the NW corner of the site at Fairmont Drive & Hesperian Blvd., in San Leandro, CA

Delivering Value for Investors

• Explosive Demographic Tailwinds: 10K Californians turning 65 per day

• Severe Market Under-supply, Sticky Tenancy, & Diversified Revenue: Lower vacancy, longer stays, medical service income, care level upgrades.

• ToD Premium: Drives higher occupancy, rent growth, & asset appreciation.

• Attractive Exit Option: REIT, healthcare fund, and ESG buyer demand supports multiple pathways to liquidity.

• Sustainability-Driven OpEx Savings: LEED strategies lower operating costs, increase NOI.

Site Vision

Independent Living

Assisted Living

Memory Care

Revenue: • Average Rent/SF: $12.67 • Community Fee: $6,670

Revenue: • Average cost of Care: $2390/unit

Revenue: • Average cost of Care: $3487/unit • Average Rent/SF: $12.67 • Community Fee: $6,670

• Average Rent/SF: $12.67 • Community Fee: $6,670

• 55+ Adults: Residents who are independent, but downsizing and looking for a greater sense of community and hospitality. • Cornerstone provides Hospitality and community with the edge of regional connectivity within an multigenerational neighborhood.

• 65+: Residents who are active, but need varying levels of care. • Assisted living residents enjoy the same benefits as

• 65+: Residents who need constant professional care and access to health facilities. • Memory care residents have access to all the services and amenities but with so specially designed units and assigned caretakers

Independent residents, however subscribe to a la carte options as needed.

Summary of Financials

Capital Plan

Development Plan

Investment Opportunity: Bear Development Partners is seeking a Limited Partner to co- invest in the Equity Funding for two 6 story mixed-use buildings, consisting of 3 types of senior housing: Independent and Assisted Living, as well as Memory Care. Cornerstone is designed to appeal to adults 55 years and older, seeking to downsize and continue living active lives near transit, reducing vehicle dependence. Buildings will also house medical office space including PT, audiologist, lab service (Lab Corps), optometrist, as well as commercial food and other retail.

Construction Loan Payoff

Construction Loan

$79,800,000 $79,800,000

$79,800,000 $27,000,000

Perm Loan

Land

Equity

$53,200,000 $212,800,000

Construction $106,000,000

Total

Total

$212,800,000

Unit Mix

Financials

Total Units

261

Parking Spots

45

Total development Costs

Assisted Living

Memory Care

Independent Living

Residual cap rate

8.25%

Total

$133,000,000

Equity

40% 60%

Studio 51

25 33

25 33

101 131

Debt

1 BR 2 BR

65 15

Levered IRR Unlevered IRR

19.79% 14.95%

7

7

29

Total

131

65

65

261

NPV to Equity Multiple

2.3x

Pricing Unit Pricing ($/sq ft)

Proposed Equity Split

Base Rent

Studio

$14.22

Limited Partner General Partner

90% 10%

1 BR 2 BR

$9.15 $6.23

average

$11.37

Sensitivity

Parking Cost & Equity Percentage Sensitivity to Parking Cost & Equity Percentage

Parking has minimal impact on IRR, while equity percentage has a large impact.

0

50

100

150

200

40.00% 45.00% 47.00% 49.00% 51.00%

19.80% 19.80% 19.80% 19.80% 19.80% 19.00% 19.00% 19.00% 19.00% 19.10% 18.70% 18.70% 18.80% 18.80% 18.80% 18.50% 18.50% 18.50% 18.50% 18.50% 18.20% 18.20% 18.20% 18.20% 18.20%

Building Opex

Building opex/sq ft and yearly growth has minimal impact on IRR

Opex ($/sqft) & Opex Growth (YoY)

$0.08 $0.14 3.00% 19.79% 19.77% 19.75% 19.73% 19.71% 3.50% 19.79% 19.77% 19.74% 19.72% 19.70% 4.00% 19.79% 19.76% 19.74% 19.72% 19.69% 4.50% 19.78% 19.76% 19.73% 19.71% 19.68% 5.00% 19.78% 19.75% 19.73% 19.70% 19.68% $0.10 $0.11 $0.13

Sensitivity

Land & Construction

Land and Construction Costs have a sizable effect on IRR

Sensitivity to Land Cost & Construction Cost

20% $104,000,000

$105,000,000

$106,000,000

$107,000,000 $

-

$27,000,000 $29,000,000 $31,000,000 $33,000,000 $35,000,000

20% 20% 20% 19% 19%

20% 20% 19% 19% 19%

20% 20% 19% 19% 19%

20% 19% 19% 19% 19%

0% 0% 0% 0% 0% 0%

$

-

0%

0%

0%

0%

Service Fees

Service fees marginally affect IRR but not significantly due to high opex associated with services

Sensitivity to Service Fee: assisted living & memory care

$

2,000.00 2,100.00 2,200.00 2,390.00 2,490.00 2,590.00 19.70% 19.70% 19.71% 19.73% 19.73% 19.74% 19.71% 19.72% 19.73% 19.74% 19.75% 19.75% 19.72% 19.73% 19.74% 19.75% 19.76% 19.77% 19.74% 19.74% 19.75% 19.77% 19.77% 19.78% 19.76% 19.77% 19.78% 19.79% 19.80% 19.80% 19.77% 19.78% 19.79% 19.80% 19.81% 19.82% 19.79% 19.80% 19.80% 19.82% 19.82% 19.83%

$ $ $ $ $ $ $

3,000.00 3,100.00 3,200.00 3,300.00 3,487.00 3,587.00 3,687.00

Executive Summary

• Seeking LP: to co-invest (90%/10%) in $53M equity funding for mixed-use senior housing • IL, AL and MC: 261 Units Total in 2 buildings (with Medical Office & Retail) • Other Details: $106MM Construction Costs, $27MM Land, $80MM Debt • Sustainability: LEED certification goals, roof top solar, Battery Storage (redundancy) Heat pumps 19.8% Levered IRR ~$105m NPV 2.3x initial equity Analysis • Driven by strong monthly cash flows from assisted living care services plus medical office rent • Community fee (first month’s rent) provides extra cash flow during lease up period • 10 year holding period provides ample opportunity for NOI growth leading to strong sale price at exit (~447M)

Meet the Team

Zaheen Chowdhury

Abby Dong

Finlay Douglas

Obi Uwakah

EcoCore Building Value Proposition Commercial Office

The Future of Office Bayfair Site, San Leandro, CA

$60 Million $655 per sqft 129,500 sqft

88,800 sqft of office 9,250 sqft of retail

Parcel 9 • 70,000 sqft site • 1000 ft from BART

• Resting along retail corridor • 500 ft from parking garage • A part of larger commercial campus • Sandwiched between public park space and residential

Value Proposition Commercial Office

Supply -

Demand -

A premier mixed-use office space with an emphasis on sustainability and innovative design to attract Class-A office tenants. - Target: Attract companies interested in corporate social responsibility, employee wellness, and reducing their carbon footprint. - Tenants continue to prioritize locations that offer convenience and security, particularly those near public transportation and amenities.

In 2022, 34% of global occupiers had green lease clauses in place, with an additional 40% planning to incorporate them . This indicates a growing recognition of the benefits associated with green leases. - 24% of San Francisco's workforce live 50 or more miles away from their jobs. Only 19.6% of San Leandro's employed residents both live and work within the city .

150 sqft/desk (863)

3-Year Development Timeline 10-Year Hold

$15,387,111 LP Funding

Stabilized NOI: 4,347,783

Yield-on-Cost: 7.21%

22.63% IRR | 5.10 MOIC

Sustainability Modularity

When planned correctly, modularity can save between 25%-50% of construction time due to the concurrent on-site and off-site construction work as well as potential cost savings of up to 25% of a typical construction budget.

Sustainability Building Systems

Built with cross-laminated timber (CLT) and designed for net-zero readiness, this project cuts embodied carbon by up to 60% compared to steel or concrete. Leveraging C-PACE financing, we turn sustainability into a value driver—lowering operating costs, boosting tenant appeal, and future- proofing the asset in a carbon-constrained world.

Mass Timber Innovation

Healthy, Resilient, and Certified

Cross-Laminated Timber (CLT): Reduces embodied carbon by up to 60%

● Targeting LEED Gold / WELL : Sustainable and wellness-centered operations ● Low-VOC & Non-Toxic Finishes : Supports indoor air quality and occupant health ● Seismic-Resilient CLT Design : Built to withstand Bay Area risk profile

● Carbon Sequestration: Building stores CO ₂ across its lifespan ● Biophilic Design: Natural materials promote wellness and productivity

High-Performance Systems

Transit-Oriented & Climate-Aligned

● All-Electric + Solar-Ready : Fully electrified, future net-zero capable ● Passive Design Strategies : Optimized envelope reduces energy loads ● C-PACE Financed Upgrades : Long-term savings + low-cost capital

● Steps from Major Transit Lines : Reduces car dependence ● EV Charging + Bike Facilities : Supports low- carbon commuting ● Stormwater + Smart Irrigation : Water-efficient and resilient site design

Capital Stack

Qualified Opportunity Fund (QOF) Equity Optimize tax benefits - no capital gains taxes after 10-year hold. LP Equity invested into the QOF by December 31, 2026. 8.00% Preferred Return Commercial Property Assessed Clean Energy Loan (C-PACE) Leverage C-PACE loan for lower cost of capital. Construction-to-Permanent Loan 7.00% Interest Rate, 30-year term, I/O during construction Transportation Infrastructure Finance & Innovation Act (TIFIA) Financing administered by the Department of Transportation to encourage development of Transit-oriented Development (½ mile of transit) Indexed to 10-year Treasury Construction-to-Permanent Loan 49% Loan-to-Cost 4.35% Interest Rate, 35-year term, I/O during construction

Capital Stack

Levered IRR Sensitivity

TIFIA vs. Conventional

TIFIA

Conventional

Difference

Profit

$80,216,888 $70,042,642

$10,174,246

Equity Multiple

5.69

4.95

0.74

IRR

23.92% 20.88%

3.04%

LP-TIFIA LP-Conventional Difference

Equity Multiple

5.1

4.5

0.6

IRR

22.63% 19.74%

2.89

Development Spread

TIFIA

Conventional

Yield-on-Cost Exit Cap Rate

7.21% 6.94% 6.00% 6.00%

Spread

120.6

94.5

Financial Summary

Sources

Return Metrics

Unlevered Levered (Pre Tax)

$15,387,111 25%

LP Equity (QOF)

Profit

$78,412,315 $80,216,888

$1,709,679 $13,926,759 $29,315,745

3% GP Equity

Equity Multiple

2.33

5.69

23% CPACE Loan (7.00% Interest Rate) 49% TIFIA Loan (4.35% Interest Rate)

IRR

11.43%

23.92%

GP

LP

$60,339,294

Total Sources

Equity Multiple

11.02

5.10

IRR

31.86%

22.63%

Uses

$4,595,500 $6,072,805 $42,832,125 $273,000 $4,469,074 $2,096,790

Land Costs Soft Costs

Development Spread

Unlevered

Hard Costs ($315 psf)

Yield-on-Cost Exity Cap Rate

7.21% 6.00%

Loan Fees

Interest Reserves

Other

Spread

120.6

$60,339,294

Total Cost

Meet the Team

Emma Li

Lijun Shen

Sirui Zhou

Brian Zhu

The CORE: Smart Living at Bayfair

A 520-unit residential community transforming Bayfair Parcel 3. Designed for young professionals seeking affordable-premium smart living with direct BART access.

Site Overview – Bayfair Parcel 3

Location & Transit Connectivity

42-acre site adjacent to Bayfair BART station with 12,000 daily riders. • Direct access to I-880 and I-580 corridors • Served by AC Transit E14 BRT and NL rapid lines • Located in BART Fare Zone 3

Development Parameters

Our 3.2-acre parcel will transform underutilized retail space into vibrant housing. • 520 market-rate units (450-950 SF each) • 336,770 NSF residential entitlement • Transit-first approach with 0.17 parking ratio

Growth Potential

Site benefits from San Leandro Specific Plan and East Bay's tech expansion. • Pre-zoned for 3.8M SF mixed-use development • I-880 corridor seeing 5% annual job growth • Adjacent to retail, grocery, and future amenities

Market Context – San Leandro Demographics & Workforce

Age & Education Distribution

Key Population Metrics • Total population: 88,531 (2023) • Median age: 41.5 years • Median household income: $98,063 • Bachelor's degree or higher: 33.7% • Foreign-born share: 37.8% Labor force participation at 65.2% exceeds California

Workforce Characteristics

~68% of residents are in prime working age (15-64), fueling strong demand for transit-oriented rental housing.

Working-age population (18-64): 63.8% • Under 18: 17.8% • Ages 18-64: 63.8% • 65+: 18.4% High share of foreign-born residents (37.8%) underscores need for modern, amenity-rich living.

average of 62.8%, indicating robust employment base.

Under 15

15-29

30-64

65+

Data Sources: “Age distribution: ACS 2019–23 5-year estimates Neilsberg • QuickFacts San Leandro, CA Census.gov • DataUSA San Leandro profile

Design & Modular Construction Innovation

Product & Unit Mix

520 Units Breakdown & Net Rentable SF • Studios (450 SF): 224 units (43%), 100,800 NSF • 1BR (750 SF): 229 units (44%), 171,750 NSF • 2BR (950 SF): 67 units (13%), 63,650 NSF • Total NRF: 336,770 SF; GFA: 378,570SF (70% efficiency) Amenities • Shared 5,000 SF amenity house (fitness, lounge, co-working) • Rooftop gardens (2,000 SF), EV chargers (25 stalls), 86 parking total, bike storage (260 racks)

Modular Strategy

• 100% off-site prefabrication of modules (wall, MEP, finishes) • 30% faster schedule vs. stick-built • Quality control ISO 9001 process Cost & Efficiency • Hard cost: $400/SF (v12) vs. industry $450/SF • Net-to-Gross: 80% vs. 85% traditional • Schedule: 12 months on-site assembly vs. 18 months traditional

Summary of Financials

Investment Description

Capital Stack

Parcel

3

Sources

% Amount

GSF NSF

536,400 336,770

Equity

38.0% 195,507,089

CPACE

10.5% 54,165,305

Units

520 Units

Construction Loan

51.5% 265,257,567

Height

8 Floors

Total Sources

100.0% 514,929,961

Parking Spaces Parking Ratio

86

0.17

Uses

% Amount

Land

1.0% 4,949,000

Analysis Start

Month 1

Hard Costs

50.6% 260,536,500

Construction Start

Month 1

Soft Costs

8.8% 45,146,390

Construction End

Month 18

Loan Fees

0.3% 1,320,000

1st Unit Delivered

Month 18

Interest Reserve

4.9% 25,387,888

Stabilization

Month 38

Shortfall Reserve

0.4% 2,083,093

34.1% 175,507,089 100% 514,929,961

Sale Date

Month 120

Others

Total Uses

Return Metrics

Property

Unlevered Levered (Pre Tax)

Development

%

Profit

355,184,953

332,009,518

Yield-on-Cost

3.82%

EMx

2.14

2.70

Exit Cap Rate

4.50%

IRR

9.83%

16.91%

Development Spread

-68.2

Partnership

General Partner Limited Partner

IRR

20.12%

16.00%

EMx

3.28

2.55

Sensitivity Analysis & Risk Mitigation

Scenarios

Mitigations

Key Variables

• Cost +10%: IRR drops to 18% • Rent -10%: IRR drops to 20% • Cap rate +0.5%: IRR drops to 19%

• Fixed-price modular contracts • Pre-leasing to top employer groups • CPACE reduces WACC

Construction cost, rent, cap rent

Levered Return (IRR)

Levered Return (IRR)

Constructi on Loan Interest Rate (%)

Constructio n Cost ($/psf)

9.8% 5.0% 5.5% 6.0% 6.5% 7.0%

0.0%

300

325

350

375

400

4.5%

20.8% 20.5% 20.2% 20.0% 19.7%

4.5%

24.3% 22.2% 20.2% 18.4% 16.8%

4.0%

19.6% 19.4% 19.1% 18.9% 18.6%

4.0%

23.2% 21.1% 19.1% 17.3% 15.7%

3.5%

18.5% 18.3%

18.0%

17.7% 17.5%

3.5%

22.1% 19.9%

18.0%

16.2% 14.6%

3.0%

17.4% 17.1% 16.8% 16.6% 16.3%

3.0%

21.0% 18.8% 16.8% 15.1% 13.4%

2.5%

16.2% 15.9% 15.7% 15.4% 15.2%

2.5%

19.8% 17.6% 15.7% 13.9% 12.3%

Contingen cy (%)

ESG Initiative ($)

0.0% 3.0% 3.5% 4.0% 4.5% 5.0%

4,000,000 4,500,000 5,000,000 5,500,000 6,000,000

4.5%

20.5% 20.4% 20.2% 20.1% 19.9%

4.5%

20.4% 20.3% 20.2% 20.2% 20.1%

4.0%

19.4% 19.3% 19.1% 19.0% 18.8%

4.0%

19.3% 19.2% 19.1% 19.0% 19.0%

3.5%

18.3% 18.1%

18.0%

17.8% 17.7%

3.5%

18.1% 18.1%

18.0%

17.9% 17.9%

3.0%

17.1% 17.0% 16.8% 16.7% 16.5%

3.0%

17.0% 16.9% 16.8% 16.8% 16.7%

2.5%

16.0% 15.8% 15.7% 15.5% 15.4%

2.5%

15.8% 15.7% 15.7% 15.6% 15.5%

Conclusion & Next Steps

1

2

Investment Highlights

Project Recap

"The Core" at Bayfair delivers 520 smart-home apartments with modular construction.

16.9% Levered IRR with 2.70x equity multiple over 10-year hold. 3.82% Yield-on-Cost from stable cash flows.

Transit-oriented development with direct BART access and LEED Gold certification targets.

Withstands sensitivity tests across key variables.

Strategic Next Steps

3

4

Contact Information

Secure $195.5M equity and CPACE financing by June 15.

Emma Li , Sponsor & Head of Capital Markets emma.li@bayfaircore.com |

Lock construction loan at 7.0% and finalize modular partner agreement.

Sirui Zhou , Lead Project Finance

Launch tech employer marketing Q3 2025.

sirui.zhou@bayfaircore.com |

Meet the Team

Nancy Zazueta MSc ‘25 Civil Engineer

Sara Lizarazo MSc ‘25 Civil Engineer

Alejandro Migliore MSc ‘25 Civil Engineer

Ines Verdun MSc ‘25 Civil Engineer

Jeff Chen MBA ‘26 Technology

Joe Wilson MBA ‘26 Finance

The Junction

Builders Building Buildings Block 2, Team 8

The Junction

Business Value Proposition:

○ 303 units and large selection of stores in ground floor.

○ High value amenities within 20-minute walk

○ Designed for hybrid young professionals working in technology in Bay Area ○ A transit-oriented mixed-use development (TOD)

Sustainable lifestyle

Taking advantage of late stage construction: IPD

The Junction

Target Tenant Groups

The focus is Young Professionals (24-34)

➔ Flexible Commutes ➔ Flexible leases ➔ A real community ➔ Modern, sustainable homes ➔ 20-minutes lifestyles

Erica the Remote Tech PM (32)

Luis the Local Nurse and Dad (32)

Occupation : Nurse at Kaiser Permanente in Oakland Income : $95,000 Commute : 20 minutes via car or BART Why he moved here : Luis grew up in San Leandro and wanted to stay close to his parents. The Bay Fair development gave him the chance to upgrade from an older apartment to new sustainability features without leaving the community. The affordable unit options made the jump feasible, and having BART nearby offers flexibility if he switches hospitals .

Occupation : Product Manager at a fintech startup in SoMa, works hybrid Income : $160,000 Commute : 2 days/week to SF via BART (under 35 mins door-to-door) Why she moved here : Tired of paying $3,900/month for a cramped apartment in SF, she found she could rent a modern 1BR for $3,300 and gain more space, newer sustainable finishes, and a community vibe. San Leandro’s diversity and new retail scene sealed the deal.

Residential Floor Layout

Two Bedroom Unit

Total Units: 303

Unit Mix:

● Studios (Market): 76 units, 520 SF – $2,800/mo ● 1 Bed (Market): 99 units, 600 SF – $3,400/mo ● 2 Bed (Market): 69 units, 1,000 SF – $5,700/mo ● 1 Bed (Affordable): 59 units, 500 SF – $1,614/mo

High efficiency layout supports replicable prefabrication. Mix designed for walkability, affordability, and long-term occupancy.

Sustainability as a Financial Advantage

Feature

Cost

Long-Term benefit

Sustainability investments reduce operating costs, increase NOI, and enhance long-term value.

High Performance Envelope

+3-5% construction cost

↓ HVAC costs by 20-30%

These investments help meet evolving Title 24 & CALGreen standards, ensuring compliance and future value preservation OpEx reduction estimated at 5-7% savings ESG CapEx of $5M supports rent uplift and NOI growth, enhancing project valuation at Year 10 sale.

Smart HVAC & Controls

Moderate investment

↓ Energy use by ~15%

Green Rooftops & Outdoor Spaces

+2-3% cost

↑ Tenant retention & premium rent

Low-Flow Fixtures & Rainwater Harvesting

Minor plumbing cost

Reduces water bills by ~30% annually

Sources, Uses, and Investment Returns

Projected Success is not without Risks

- Source local materials and contractors to reduce transport exposure - Pre-purchase long-lead items (HVAC, transformers, appliances) - Consider modular or off-site construction to control costs and speed up delivery

Construction Costs

Phased Delivery

- - -

Premium product (diverse retail)

Incentive of 1 free month

Absorption

- Partner with local employers for relocation housing and preferred leasing agreements (healthcare, logistics, technology) - Unit mix to include smaller, more affordable units (studios, micro-units) - Leverage Public Financing (TIFIA / Tax Exempt Bonds) - CPACE for energy efficiency, water conservation and renewable energy projects - Engage with City of San Leandro and BART - Align with city’s Housing Element, TOD, and General Plan policies. - Build early to support with community - Leverage SB 35, AB 2011, or density bonuses

Financing

Political & Entitlement

Meet the Team

Kyler Blodgett

Yutong Li

Erik Kuhn

Andrew Winter

Kendenn Rose

THE LEANDRO

Our Site

Parcel 4

434,200 SF site

0.3 miles from BART

30,000 SF retail

Adjacent to large retailers

Residential Tenants

YOUNG FAMILIES

SERVICE PROVIDERS

PROFESSIONAL EMPLOYEES

• 60 - 80% AMI • $80K annually for single household • 35 - 55 years old • Commutes in all directions to work sites

• 100 - 120% Household AMI • $175K for a family of three • 0 - 2 children • Remote work or East Bay employer

• 100 - 150% AMI • $130K annually for single household • 25 - 40 years old • Commutes via Bart or Car to San Francisco or Silicon Valley

Rent Comps

1-Bedroom Avg Rent

2-Bedroom Avg Rent

3-Bedroom Avg Rent

City

The Leandro

$3,800

$4,600

$5,700

San Francisco

$2,962

$4,065

$5,607

Oakland San Jose

$2,031 $2,615 $1,883

$2,665 $3,301 $2,261

$3,406 $4,010 $3,082

San Leandro

Sustainability

LOWER VMT

REDUCED EMISSIONS

MINIMIZED WASTE

Encourage sustainable transportation options over personal cars by: • Offering bike parking • Equipping tenants with BART rider benefits

Target operational and embodied carbon emissions by: • Using recycled construction materials • Initiating LEED build standards

Integrate innovative water recycling technology by: • Building green roofing • Incorporating grey water recycling system

Financial Profile

5 Year Hold

18% Levered IRR

2.1x Exit Multiple

▪ Short-medium term investment horizon to take advantage of near

▪ Unlevered IRR of 8.3% . ▪ For investors, this presents an opportunity for above-market returns that beat the S&P.

▪ With $116m in profit over 5 years , equity holders can expect to double their investment through The Leandro.

term market appreciation throughout the San Leandro market.

Capital Stack

Equity Holders - General Partners (GP): $10,666,649 - Limited Partner (LP): $95,999,841

CPACE - Principal: $52,779,568 - Interest Rate: 6.5%

Construction Loan - Principal: $90,693,456 - Interest Rate: 7.0% - Term: 30 year fixed

Key Assumptions

Land Cost

$25 PSF

Construction Cost

$400 PSF

Construction Timeline

18 months

Rent Growth

4.5%

Vacancy

5.0%

Construction Cost ($/psf)

350

375

400

425

450

5.5% 25.7% 23.1% 20.6% 18.1% 15.8%

5.0% 24.5% 21.8% 19.3% 16.8% 14.5%

Rent Growth

4.5% 23.2% 20.6%

18.0%

15.5% 13.1%

4.0% 21.9% 19.2% 16.6% 14.1% 11.7%

3.5% 20.6% 17.9% 15.3% 12.7% 10.3%

Meet the Team

Andrea Huynh

Peter Jin

Adarsh Madhavan

Malcolm Yin

John Schlitter

The Friden Sustainable Luxury: Parcel 3

Residential Tenants

Investment Thesis: There is a lack of luxury real estate in the San Leandro that results in young high income working professionals finding homes in other cities. The 899 Alvarado. San Leandro Marina, and other Bayfair Mall TOD Plan will result in a unmet segment in San Leandro’ real estate market.

Product: Luxury residential units with access to fully amenitized (pet park, gym, pool and rooftop lounge) services and co-working space Target Demographic: High Income 20 - 40 year olds who: (a) Are part of the rising median income trend in San Leandro (b) Work in a hybrid role or in the vicinity (c) Will use BART Example: Resident doctors and Nurses who work at the Kaiser San Leandro hospital, tech managers working in biotech startups

Site Plan & Unit Mix ● Two mid-rise multifamily buildings, 6 stories each Ground floor: Lobby and co-working space ● Rooftop: Restaurant, spa, and social lounge ● Emphasis on natural light, open layouts, and smart- home features

Rooftop + Amenities (56,600 sqft)

Multi-family (283,000 sqft)

Co-Working (83,600 sqft)

Co-Working

Flexible Work Zones: Amix of open seating, semi-private booths, and meeting rooms. Premium Amenities: High-speed Wi- Fi, wireless charging stations, soundproof phone booths, printing hubs, and artisanal coffee/tea service. Smart Tech Infrastructure : Bookable rooms, occupancy indicators, and climate/lighting controls via a dedicated resident app.

Amenities

Green Building & Construction Plan

Energy and Atmosphere: - Solar Window Technologies, Inc. - Battery Storage Roofing

Water Efficiency: Source Example: Marin Health Medical Center - San Francisco

Materials and Resources: - Terra-Cotta Cladding or

Architectural Terra-Cotta (ATC) → Exterior - Ethylene-tetrafluoroethylene Copolymer (EFTE) Membrane → Ground Floor

Green Building & Construction Plan

Goal: LEED Certification

Energy and Atmosphere: - Solar Window Technologies, Inc. (UC Berkeley invention) - Installation cost: $50/sqft - Window cost: $150/sqft

Pro Forma Summary and Return Metrics

Total Development Cost

$286 million

Equity Investment

$70.0 million

Yield on Cost

5.5%

Levered IRR

16.3%

Equity Multiple

3.3x

Unlevered IRR

10.9% 20.1% 15.5%

GP IRR LP IRR

Investment Goals & Risk Profiles

● Long-term hold for 10y aiming at 3x multiple and 15% Levered IRR Within which: ● Exit cap-rate: 4.0% ● LP:GP = 85:15

Investment Goals

● Residential : matured market multifamily (Position on the risk curve: peak), regional low rental price, low profit margin ● Co-working space : pioneer asset class with substantial upside potential revenue and possibility of reproducing (Position on the risk curve: initial climbing), demographic uncertainty, attract enough users ● Social impact investment: provide and solve the shortage of concentrated shared working space for young professionals in a highly repeatable subscription-to-go business model ● Creating repeatable sustainable development model: using electric generating windows to achieve self-sustained in terms of energy sustainability, the savings in energy consumption further led to favorable cost of debt and terms, tax benefits and subsidies

Risk Profile

Other Goals

Meet the Team

Ayush Kalani

Akhila Nanjala

Homin Kwark

Nina Anderson

Sehej Chadha

Nexus Bayfair: Overview

Property Type: Mixed-Use, Transit Oriented Development Property Details: 464 Units MF + 12,000 NSF Food Hall Location: Parcel 4; Next to Bay Fair BART Buildings : Two: 227k GSF/207 GSF Total Project Cost : $305MM

Why Nexus Bayfair?

The Nexus Bayfair

Strong Market: Low Vacancy & limited new supply in San Leandro

Reposition of: Obsolete mall into mixed- use urban village

Accessibility: Via project’s proximity to BART

Innovative Building: With community focused-food hall & sustainability focus design Target Tenants: East Bay professional workers who commute & want modern housing

Investment Goals & Strategy

Scalable Branding with “ Nexus Collective” Build a strong, recognizable brand & create a playbook for expansion to other markets ● Tenant mix strategies ● Leasing terms ● Vendor agreements

Community Revitalization & Sustainability ● Improve urban livability ● Reduce vehicle dependence ● Increase affordable housing ● Local restaurant partnerships ● Green systems

Exit Strategy ●

Long-Term Hold 8-10 years to capture full appreciation and stabilization

Sell to REIT or institutional investors Potential option for cash-out refi for future investments

Sustainability Features & Benefits

Green Building Improvements

Financial Benefits

High-efficiency HVAC systems

Up to 30% reduction in utility costs

Solar panels with battery storage

Higher NOI and property value

Smart building energy management system

Premium rents from eco-conscious tenants

C-PACE financing to fund green improvements including windows, doors, building envelope, etc.

Lower weighted average cost of capital with C-PACE in capital stack

Building Plan

Two, 6-story buildings totaling 503,600 SF 464 units with 277,600 NRA 15% Affordable Units

Residential Units

12,000 SF NRA; Space for 15 local vendors Gym, Movie & Social Lounges Pet Turf Green roof, fire pit Community Gathering Spaces

Food Hall

Amenities

Rooftop

213 Parking spaces at (0.5 per unit); Bike Storage

Parking Spaces

MF Unit Mix

**AI Generated Image

Appendix: Summary

EWMBA 280 - Multifamily Summary

Investment Description

Capital Stack

Return Metrics

Parcel

4

Sources

% Amount Property

Unlevered Levered (Pre Tax)

GSF

503,600

Equity

35.4% 107,831,085

Profit

202,792,346

241,659,803

NSF

277,600 CPACE

31.3% 95,448,830

EMx

1.71

3.24

Units

464 Units Construction Loan

33.3% 101,552,115

IRR

7.17%

17.74%

Height

6 Floors

Total Sources

100.0% 304,832,031

Parking Spaces

154

Partnership

General Partner

Limited Partner

Parking Ratio

0.33

Uses Land

% Amount

IRR

24.12%

16.80%

2.9% 8,807,200

EMx

5.15

3.03

Analysis Start

Month 1 Hard Costs

64.8% 197,463,000

Construction Start

Month 1 Soft Costs

11.6% 35,475,177

Development

%

Construction End

Month 18 Loan Fees

0.5% 1,500,000

Yield-on-Cost

4.04%

1st Unit Delivered

Month 18 Interest Reserve

3.2% 9,887,166

Exit Cap Rate

4.50%

Development Spread

Stabilization

Month 26 Shortfall Reserve

1.3% 3,868,403

-46.1

Sale Date

Month 120 Others

15.7% 47,831,085 100% 304,832,031

Total Uses

Sensitivity Analysis

Risk Profile

Repositioning an underutilized mall into a Value- Add project with zoning and TOD support, likely lower risk than Opportunistic.

Construction

Post-stabilization, the project will transition to a Core-Plus asset with growth potential driven by limited inventory, site redevelopment, & operational improvements.

Stabilization

Prime BART location offering 20-30% rental premium. Pre-leasing strategy could reduce development risk. Refinancing opportunity based on leasing success and interest rates.

TOD-Driven Returns

Why We Love This Deal!

Attractive Returns: 16.8% IRR & 3.0x equity multiple for LP

Prime Location: Supply-constrained market with high demand.

Transit-Oriented Development: Adjacent to BART; attractive to commuters

Sustainability & Impact: 31% CPACE Financing & ESG-aligned design

Community Revitalization: Transforming an outdated mall into a mixed-use urban hub with 15% affordable housing

Growth Potential: Long-term appreciation, stable cash flow, & Nexus Branding

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