Adaptive Reuse Case Study Project – Foch St.

Project Description

Addresses:
Buildings 2-3: 1001-1059 Foch Street.
Building 1: 821-945 Foch Street.

For my adaptive reuse case study I am considering the proposed properties and determining what the property should be developed as.

There are three buildings located just off of  W.7th street in the cultural district / W 7th street corridor.  It is just south west of the Montgomery Plaza and there are several new multistory multifamily apartments being built directly across from the proposed site.

 
 
 
 
 
 
 
 
 
 
 

 Building 1 has approx 68,000 SF, Building 2 has 80,000 SF and building 3 has 14,300 SF.  Currently the tenants of these three buildings include a Tex/Mex restaurant, a yoga studio, art supply store and offices.

I am proposing to convert building three into a much needed grocery store for the cultural district/W 7th corridor.   I believe that due to the overall demographics of the area a Whole Foods Grocery store would be ideal.

Currently the closest grocers are a Central Market and a Super Target.  The Super Target is located fairly close to the proposed site behind the Montgomery Plaza shopping center.  Super Target is more of a general store and I believe while it does provide groceries the area has a large enough population that a dedicated grocery store would be profitable.

Central Market (location A in the picture) is located approximately 10 minutes away and is outside of walking distance for the residences in the W. 7th corridor. (Proposed site is labeled B in the below picture.)

According to Whole Foods they require the following in order to consider a site for one of their stores:

  • 200,000 people or more in a 20-minute drive time
  • 25,000-50,000 Square Feet
  • Large number of college-educated residents
  • Abundant parking available for our exclusive use
  • Stand alone preferred, would consider complementary
  • Easy access from roadways, lighted intersection
  • Excellent visibility, directly off of the street
  • Must be located in a high traffic area (foot and/or vehicle)
     

The demographics for the proposed sites area certainly fit within the stores requirement that there be 200,000 people, at least, in a 20 minute drive time area and that there be a large number of college educated residents.

The site however needs more parking for the proposed grocery store .  Therefore I am also proposing to tear down part of building 2 and replace it with parking spaces.

Buildings 1 and 3 can continue to be used for the current tenants and office space.

I believe the location is close enough to the main corridor of W. 7th that the signage at the top of the building and parking garage can mitigate the fact that the store is not directly on W. 7th.

Financial Analysis

Currently retail rents in the project ranged from $30-45/SF, NNN (NNN expenses $11/SF).  Office rents in the 100,000 SF office component of the W7th project were getting $25-26/SF even in the deepest parts of the recession without offering big incentives.

Building 2 is currently approximately 80,000 square feet.  Since Whole Foods maximum space requirements are 50,000 sf I will be tearing down 30,000 sf of the current building to help make parking available for the store.

Using precast concrete panels and steel frame construction, costs per square foot will be $55.80, this plus contractor fees and architectural fees the total construction costs per sf would be $73.

So the total construction costs would be approx $3,650,000.  Assuming that the expected rent would be $25 per sf the EGI would be 1,225,000, assuming a debt coverage ratio of 1.25 and an interest rate of 6% with a Maximum LTV of 80% the Maximum Supportable Total Project costs can be no more that 12,097,233.

Summary

I believe that to maximize the current layout of this site with minimum reinvestment and construction costs building 1 and 3 should remain as they are and building 2 should be converted into a Whole Foods Grocery store.  Tearing down part of the building in order to increase the amount of parking which is required for the store will also add to the functionality of the site overall.

Sources:
RS Means /REED Construction Data (http://www.reedconstructiondata.com/rsmeans/models/supermarket/texas/fort-worth/)
Whole Foods (http://www.wholefoodsmarket.com/company-info/real-estate)
Developer Feedback
 
 
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Adaptive Reuse – The Live Oak Music Hall and Lounge – Bill Smith

What was once the Southside Lions Club, built in 1952, is now the Live Oak Music Hall and Lounge. It is located at 1311 Lipscomb St. in the Near Southside neighborhood in Fort Worth.

We met up with Bill Smith, who is the developer and visionary behind this restoration project, for a tour.

Bill shares with us that he has had 37 years in the construction business and decided to take on this project as a labor of love.

When he acquired the property it was a pier and beam construction that had warped floors, so much so that you had to literally climb uphill when you entered.

He and his son put in their own sweat equity by restoring the property.

From leveling and re pouring the concrete floors to importing and hand carving the gorgeous wood mahogany used through out the facility to putting in an ingenious beer pump that allows for beer on the beautiful roof bar, to the live music stage inside the building, the Live Oak is a study in innovative renovation.

Bill also explained his ingenious financing of the project by selling share to anyone in the community interested in seeing this venue prosper.

The Live Oak has also made a commitment to it’s community by sponsoring programs for the community.

Through fundraising nights and volunteer based music mentoring sessions such as local musicians working with youth to give free music lessons the Live Oak intends to become part of the fabric of the community.

When Bill explains to us that he did not go to college and that he realizes that it’s not for everyone he is proud to help others like him achieve their dreams and provide this venture as an example of what is possible.

This visit was truly inspirational and I hope the Live Oak and it’s community prosper.

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Adaptive Reuse – Eddie Vanston, devolper – 209 S. Main Street

We met with Eddie Vanston at 209 S. Main St.  Eddie restored the Sawyer Grocery store into 14 loft apartments with office space on the street level.

Eddie explained how he was able to partner with Chevron in order to utilize the Federal Historic Tax Credit program available through the US Park Service for the restoration for this project. In order to qualify the building had to be at least 50 years old with an architectural or historic significance. The FHTC allows for a 20% tax credit to be taken by the projects investors.

He also explained the us of the New Market Tax Credit for Lenders.   The lender can receive 30% tax credits for the amount of the land.

 

Eddie also explained that he has close to 100% occupancy for his project.  Due in part to the reasonable rental rates in the area as compared to the 7th street development to the west of downtown.

 

Eddie then took us around the corner to view his current project.  The building was build in 1910 and was a fireproof warehouse.

Eddie is converting the downstairs space into a beer garden and the upstairs into lofts. 

One thing that we notice inside the building is how cool it is.  Eddie explains that when the building was built it was before air conditioning was so prominent and due to the fireproof construction and the natural ventilation in the building it stays cool year round.

 

As we tour the upstairs we notice that the original features of the concrete ceilings the floors and exposed brick are sealed and will be prominent features in the lofts.

Eddie also explains that even though the building was built as a fireproof warehouse he is still required to put in safety features such as a sprinkler system.

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Adaptive Reuse – Ft. Worth South – Mike Brennan

We met with Mike Brennan at the Ft. Worth South, Inc (http://www.fortworthsouth.org) office located at 1606 Mistletoe Blvd.

Mike, who is the director of Fort Worth South, Inc, was kind enough to give us an overview of Fort Worth South, Inc.  He explained that this is the entity created to administer the TIFF that was started in 1997 for the redevelopment of the near south side neighborhood in Ft. Worth.    Sponsored by a coalition of public and private stakeholders, including the City of Fort Worth, the Fort Worth Transportation Authority, and the district’s major hospitals, this non profit organization is concerned with accomplishing 5 mission goals.

1.  Increase public awareness of the Near South side
– Attract new residents and new residential development
– Support the growth of the district’s existing businesses and institutions
– Attract new businesses to the Near Southside
2.  Assist all private and public development projects that advance the district’s mixed-use, urban vision.
3. Sponsor or support special events and networking events that attract visitors to the area and strengthen community ties among Near Southside businesses and residents.
4. Provide information and resources that assist all types of Near Southside stakeholders.
5. Partner with the City and other community organizations to advance educational initiatives, public policies, and community programs that foster a revitalized and safe central city.
 

Mike explained that it is his job to develop the building regulations and to communicate with the community in order to get their input on these regulations so as to help facilitate their adherence.

Also, Mike explained that he had 7 goals in which he felt were important for most communities to implement in order to re establish a vibrant community.  These are

1. a walkable urban environment
2. residential development
3. anchors and industry
4. supporting locally owned business
5.  need for both small scale and large scale business
6. a balance for preservation and new development
7. to improve perceptions and investor confidence
 

With events like Friday on the green and open streets Fort Worth South side is helping to encourage people to come to and shop and hopefully move into the area.

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Adaptive Reuse – Downtown Ft. Worth T&P building

A breath taking step into the past for our modern world.  The Ft. Worth Texas and Pacific Railroad  building is now a transit oriented development with the upper floors of the building being turned into luxury condos.  On our site visit the gorgeous lobby was being set up for a wedding reception and the family graciously allowed us in to look around.

Designed in 1931 by Wyatt C Hedrick, the building is an excellent example of the Art Deco movement made popular in the 1920’s -30’s. According to the Texas Historic Landmark affixed to the side of the building rail traffic began to decline in the 1950’s  and the last passenger train to arrive was in 1967. Today the upper stories of the building are known as the Texas and Pacific Lofts.  These luxury loft apartments are in a prime downtown location with a covered portico to reach the trains located across the tunnels.  There is also a snack bar and tables in the covered pavilion in the trains waiting area. 

According to the Texas Pacific Lofts website the apartments are NY/Soho style lofts with original terrazzo flooring and exposed duct work. These start at $100k so are very reasonably priced.  This along with the location near the trains is a very desirable location.  A step back in time for our modern lifestyle.  Located at 221 West Lancaster Avenue, next to the historic US Post Office.    The buildings amenities include 24 hour concierge, deeded parking, business center, owners lounge, courtyards, fitness center and the Trinity railway express commuter light rail in the building.

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Adaptive Reuse – Southside Ft. Worth – Ray Boothe Architect

Today we met with Ray Boothe an architect and developer who is credited as one of the pioneers of redeveloping the near south side neighborhood in Ft. Worth.  We met with Ray outside Brewed at 815 Magnolia St. in the Ft. Worth Near Southside neighborhood.

He showed us several properties that he’s worked on in the area including the building next to Brewed that will be turned into a gourmet grocery store and deli named Ryan’s.    Both of the buildings were built in the 50’s.  Ray explained that he used the available Near South-side TIFF for the landscaping, street improvements and the entry areas of the buildings. 

 

 

Ray explains that using techniques from before air conditioning to build fits into today’s trend for low energy and cost efficient -sustainable design.  Using natural lighting, positioning of the building to maximize on sun exposure and minimize excessive heat all come into play.

Ray also shared with us that he started back in the 90’s in acquiring the properties that he has slowly been renovating.  His first project in the area was an old drugstore he renovated 12 years ago.  Across the street from the drugstore is another project that he restored in conjunction with a bank that was looking for a new place to do business.   He said before the modern use of mixed zoning took off in Ft. Worth he was trying to build with this in mind.  In the building with the bank he has 5 loft apartments upstairs and a restaurant and bank office downstairs.  Again using the TIFF for the green areas on the outside of the building.  Bringing beauty and function back to what was a building that was unused. 

Mike Brennan of FortWorthSouth.org credits Ray Boothe with being the pioneer for the work they are continuing with today.  As you can see he has certainly done a tremendous amount of work and should be applauded for his vision.

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Adaptive Reuse – Bishop Arts District

One of my class’ site visits has been to the Bishop Arts District located just south of Methodist hospital in Oak Cliff.  I grew up in a house on N. Bishop literally a block north of the arts district.    Some things have changed quite a bit from when I was a kid and I am excited to see the old buildings being given a new life.

This area was originally served by a trolley service that stopped at 7th & Bishop.  This of course allowed for quite a bit of pedestrian traffic through the area.  Boutique shops and restaurants a theater and a bowling alley were mainstays of the area.  Once the trolley system was shut down the life stream to the district died with it.  Commerce shifted to Jefferson Ave which is just a few blocks south of the district.

This led to the eventual disuse and abandonment of the district.   In the 80’s Jim Lake started to purchase the old buildings in an attempt to salvage an area that he remembered as vibrant.  This was considered a rather risky investment but not afraid of the long game Mr. Lake held fast to his dream of one day seeing the district back to it’s former glory.

To the left you’ll see a picture of the Piggly Wiggly grocery store that sat at the corner of Bishop and Davis.  As an example of adaptive reuse this has been turned into the Cafe Brazil as seen here. 

Once again the building see’s a steady flow of foot traffic from hungry shoppers visiting the district.

Across from Cafe Brazil is the old No. 15 Firehouse that I remember was still active when I was a kid. 

It has been converted into a Gloria’s Restaurant.

Through a little sentimentality and creative reuse the district is seeing a return to it’s vibrant past.

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