Gen Yers and Boomers: The Future of the Apartment Industry Mark Humphreys, CEO Humphreys & Partners Architects, L.P. February 8, 2012 WHO? WHERE? WHAT? WHO? Who is the renter? 70 % home ownership to 60% - 7.4 million more renters 2 years of not renting - 500,000 to 1 million pent-up 2 years of Echo Boomers - no job, 6 million kids, 3 mil more this year 9 mil 74 million Baby Boomers downsizing to? Some in apartments Mortgages are 15 to 20% down; kids don t want to be stuck in a place Approximately 5 million apartments built in the late 60 s and early 70 s are now obsolete 1
WHERE? 2
Privately Owned Housing Starts: 5-Unit Structures or More (HOUST5F) Vintages: 2010-07-20, 2010-08-17 Source: U.S. Department of Commerce: Census Bureau 3
Privately Owned Housing Starts: 5-Unit Structures or More (HOUST5F) Vintages: 2010-07-20, 2010-08-17 Source: U.S. Department of Commerce: Census Bureau Privately Owned Housing Starts: 5-Unit Structures or More (HOUST5F) Vintages: 2010-07-20, 2010-08-17 Source: U.S. Department of Commerce: Census Bureau This represents 600,000 units per year for 8 years. You can t just ask customers what they want and then try to give that to them. By the time you get it built, they ll want something new. Stephen Jobs 4
WHAT? HOME-RISE 250 units per acre No corridor design; up to 88% efficient Efficiency Bonus: 250 units at 850 average = 212,500 x 4% = 8500 Save 4% of sq. ft. 8500 x $150 to 250 = $1.3mm to 2.12mm Operating cost efficiency is better;4% less hall=$ HOME-RISE HOME-RISE On the Boards 5-17 story residential 260 total units 232.1 units per acre 799 sq. ft. avg. San Antonio, TX HOME-RISE 5
7-STORY WOOD (below high-rise code) Houston, TX 120 units per acre wrap; 1.7 parking 800-850 sq. ft. average 70% one s; 30% two s $110/sq. ft. So. Cal., Union Market, DC $127/sq. ft. Bay Area - $147/sq. ft. Dallas, TX 120 units per acre wrap; 1.7 parking 800-850 sq. ft. average 70% one s; 30% two s $120/sq. ft. concrete So. Cal., Union Market, DC $160/sq. ft. Bay Area - $200/sq. ft. MID-RISE 5-STORY WOOD OVER RETAIL (below high-rise code) Dallas, TX 120 units per acre podium; 1.7 parking 800-850 sq. ft. average 70% one s; 30% two s $120/sq. ft.; ½ parking existing So. Cal., Union Market, DC $138/sq. ft. Bay Area - $148/sq. ft. St. Petersburg, FL Minneapolis, MN MID-RISE 4 & 5-STORY WRAP Fairfax, VA (under construction) 80-90 units per acre wrap; 1.7 parking 800-850 sq. ft. average 70% one s; 30% two s $95/sq. ft.; ½ parking existing So. Cal., Union Market, DC $110-115/sq. ft. Bay Area - $130/sq. ft. Orange County, CA MID-RISE 6
e-urban SURFACE 40 units per acre, surface parked No hallways; 87% efficient Lower operating costs Efficiency Bonus: 250 units at 850 average = 212,500 x 22% = 46,750 Save 22% of square feet 46,750 x $70 = $3,272,500 Operating cost efficiency is better - 46,750 less hall = $ No concrete garage from $3mm Easily $6mm savings St. Petersburg, FL Courtyard landscape design by Haygood & Associates e-urban e-urban SURFACE 1/2 the common area e-urban & PARTNERS STUDENT HOUSING SIGNATURE CONCEPTS Breezeway - 39 Beds Per Acre Townhome Over Flat - 36 Beds Per Acre Townhome - 29 Beds Per Acre High Rise 280 Beds Per Acre Townhome Over Flat - 44 Beds Per Acre Cottages - 35 Beds Per Acre High Density - 162 Beds Per Acre E-Urban - 80 Beds Per Acre STUDENT HOUSING 7
e-urban STUDENT HOUSING 93 beds per acre; surface parking 1300 sq. ft. average $ 82 /sq. ft. So. Cal., Union Market, DC $ 98 /sq. ft. Bay Area - $ 125 /sq. ft. STUDENT HOUSING BIG HOUSE San Antonio, TX 16 to 20 units per acre; attached parking 1000 to 1200 sq. ft. average 40% one s; 60% two s $ 70 to 74 /sq. ft. So. Cal., Union Market, DC $ 98 /sq. ft. ($98 is project shown Cresta Bella) Bay Area - $ 125 to 130 /sq. ft. San Diego, CA San Diego, CA On the Boards (Northeast) BIG HOUSE SMALL UNIT TRENDS 558 sq. ft. 555 sq. ft. 340 sq. ft. Problem with smaller units Fixed cost of $2000 appliances Fixed cost $2000 of cabinets and counters Fixed cost of $1800 ac system 900 average = $4.44 per foot 750 average = 7.73 per foot 0r $3.29 more per foot x 750 square feet = $2,467 more per unit SMALL UNITS 8
SMALL UNITS Problem with smaller units Fixed cost of $2000 appliances Fixed cost $2000 of cabinets and counters Fixed cost of $1800 ac system 900 average = $4.44 per foot 750 average = 7.73 per foot 0r $3.29 more per foot x 750 square feet = $2,467 more per unit e-urban Whirlpool FUSION 1560 St. Petersburg, FL MID-RISE 9
222 HENNEPIN Minneapolis, Minnesota MID-RISE e-urban SURFACE 3-STORY (sample small unit plans) e-urban HEBRON 121 Lewisville, Texas 7 phase master plan 1751 total units Adjacent to DCTA transit stop Phase I 3-story breezeway w/tuck under parking 234 units 30 unit per acre product 1 & 2 bedroom units 586 1,276 sq. ft. units Future phases include breezeway & e-urban product in 3 & 4-story buildings e-max 10
NOI IN THE GREEN 100% of the common area power and 30% of the residential power needs are provided through the use of roof mounted Photovoltaics. San Diego, CA PV PANELS NOI IN THE GREEN San Antonio, TX ELECTRIC CHARGING STATION Jessica Humphreys, Washington, D.C. 25 yrs. Cassandra Humphreys, Lubbock, TX - 22 yrs. Stephanie Humphreys,Savannah, GA - 19 yrs. 11
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PROJECT TYPES* Townhome; 2-3 story; 15-18 U/A e-max ; 5-story, podium; 162/UA Breezeway; 3-story; 24 U/A Wrap; 4-story; 80 U/A Big House ; 2-story; 16-18 U/A Wrap; 5-story; 95 U/A e-urban ; 3-story surface parked; 30 U/A Wrap; 7-story; 125 U/A e-urban ; 4-story surface parked; 40 U/A Podium; 4-story; 100-140 U/A e-urban ; 5-story surface parked; 50 U/A Podium; 5-story; 120-170 U/A e-urban ; 4-5 story wrap; 60-80 U/A Podium; 7-story; 140-210 U/A e-urban ; podium; 140 U/A HR/ Home-Rise ; 20-story wrap; 125-150 U/A e-max ; 4-story surface parked; 52 U/A HR/ Home-Rise ; 40-story wrap; 250-310 U/A e-max ; 5-story surface parked; 62 U/A Student e-urban ; 3-story; 80 Beds/Acre e-max ; 4-story surface parked, tuck under garage; Student e-urban ; 4-story; 90 Beds/Acre 60/UA Student e-urban ; 5-story; 100 Beds/Acre e-max ; 5-story, surface parked, tuck under garage; Student wrap; 130-150 Beds/Acre 70/UA Student podium; 220-270 Beds/Acre * Varies by project. No warranty expressed or implied. Copyrighted designs: Humphreys & Partners Architects, L.P. (pdf available upon request) DON T FOLLOW TRENDS CREATE THEM Humphreys & Partners Architects, L.P. 972-701-9636 marketing@humphreys.com 13