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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