Downtown Orting Proforma Analysis

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Downtown Orting Proforma Analysis

• Proforma A balance sheet of the cost and value
  for a real estate development that is used to
  calculate profit and profit margin

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Downtown Orting Proforma Analysis

• Purpose
• Introduction
• Assumptions
• Calculations
• Results
• Conclusions

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Purpose

• Analyze the development feasibility of downtown
  properties under current zoning
• Test the feasibility of development if some
  zoning requirements were modified
• Recommend solutions to improve development
  climate in downtown Orting

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Introduction

• We analyzed 12 lots varying in size between 2,800
  and 41,000 square feet
• We analyzed 3 different uses
• Apartments with ground floor retail
• Condos with ground floor retail
• Office with ground floor retail

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Introduction

• We analyzed four different development scenarios
• Current Zoning (3 stories/onsite parking)
• 2 Stories (offsite parking)
• 3 Stories (offsite parking)
• 4 Stories (offsite parking)

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Introduction

• We used proformas to test the feasibility of
  development under the different scenarios
• Value Rental Income Cap Rate
• Cap Rate A reasonable return on an investment
  used to calculate the value of a property
• Profit Value Total Project Cost
• Profit Margin Profit Total Project Cost
• Developers need at least 10 Profit Margin

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Assumptions

• Current Zoning Requirements (MU TC)
• Max Height 35 feet (3 Stories)
• Onsite Parking Requirements
• 2 per residential unit
• 1 per 400 square feet of office and retail
• 1 per 200 square feet of restaurant

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Assumptions

• Value Assumptions

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Assumptions

• Cost Assumptions

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Calculations

• Calculate the development potential of property
  for each development scenario

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Calculations

• Calculated the value, cost, profit, and profit
  margin of the project using the assumptions

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Results

• Most development is not feasible under current
  zoning requirements
• Retail is the most profitable use
• Office and apartments can be profitable, but
  rarely condos
• Increase building height provides some additional
  profits

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Results
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Results
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Conclusions

• Change onsite parking requirements
• There is a need to increase the building heights
  in downtown Orting

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Potential Parking Solutions

• Code Changes

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Potential Parking Solutions
Parking Management
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Potential Parking Solutions
New Parking Investments