RESPONSE TO REQUEST FOR QUALIFICATIONS MERCER ISLAND COMMUTER PARKING & TOWN CENTER MIXED USE PROJECT

Transcription

1 RESPONSE TO REQUEST FOR QUALIFICATIONS MERCER ISLAND COMMUTER PARKING & TOWN CENTER MIXED USE PROJECT Submitted by: White/Peterman Properties, Inc Connecticut Drive, Suite A1 100 Crown Point, IN October 5, 2018

2 TABLE OF CONTENTS DEVELOPMENT TEAM... 3 White/Peterman Properties, Inc Key Team Members... 4 Development Partners... 6 Johnson Braund, Inc. Architecture Tukwila, Washington 7 KPFF Civil Engineering Seattle, Washington 7 SCA Consulting Engineers Structural Engineering Houston, Texas 7 McCullough Hill Leary, PS Legal Seattle, Washington 7 Financial Capacity... 7 Relevant Project Experience of White/Peterman Properties, Inc Oak Park Place... 9 Old Town Lofts Apartments PROJECT VISION / PRELIMINARY CONCEPT PROPOSAL Conceptual Site Plan and Floor Plans Mercer Island RFQ WPPI Response Page 2 of 29

3 DEVELOPMENT TEAM White/Peterman Properties, Inc. The developer of the Mercer Island Commuter Parking & Town Center Mixed Use Project will be White/Peterman Properties, Inc. ( WPPI ). John Peterman and the key executives of WPPI have been successfully developing and constructing apartment communities, limited service hotels and other real estate projects in the United States for over 40 years. With its commitment to integrity and quality, and by carefully analyzing market conditions, controlling costs of all pre development, development, construction and operations, the Team has developed an impressive track record throughout the years. The Team has been in the real estate development industry since 1968 when Whiteco Industries, Inc. opened the first Holiday Inn franchise in Merrillville, Indiana. Since that time, it has gone on to successfully develop over 100 hotels and more than 6,000 multifamily apartment units throughout the United States. The Team has 40+ years of real estate development and ownership experience, and on average, its senior executives have experience of 20+ years in the industry. This has allowed WPPI to develop a large network of professional relationships as well as a vast network of capital providers. The Team s entry into the apartment industry took place in 1998 via a joint venture with a Chicago real estate company with the goal of developing Class A multifamily apartment projects in select, high barrier to entry markets throughout the United States. Subsequently, Whiteco Residential, LLC was created and went on to buy out the joint venture partner and develop a portfolio of over 6,000 multifamily units located in nine states. In 2007, Whiteco Residential, LLC sold approximately 3,000 units in a transaction valued at over $400 million. The Team continues to develop, own and manage multifamily units and looks for opportunities in the ever changing real estate market in order to achieve optimal return on its investments. Notable recent competed projects include Old Town Lofts, a 149 unit podium apartment community in Redmond, Washington and 5250, a 298 unit high rise apartment community in Houston s Galleria submarket. Currently, WPPI has a 243 unit midrise apartment project under construction in Redmond, Washington called 3040 Apartments. Additionally, in the Roosevelt neighborhood of Seattle, WPPI is planning Corner 63, a 140 unit midrise apartment project. Construction is expected to begin mid Hotel development is another focus of WPPI. The Team primarily develops Hilton and Marriott hotels. Its strategy in developing hotels is to look for urban in fill locations located at or near high density office and/or convention centers. Three of WPPI s hotel projects are located at or adjacent to that particular city s convention center, including one that is physically connected to the convention center; these hotels being the Tampa Convention Center Embassy Suites, Marriott Springhill Suites at the Las Vegas Convention Center and the Denver Convention Center Hilton Embassy Suites. More recently in the Washington D.C. MSA, the Residence Inn Fairfax in Fairfax, Virginia and the Hilton Homewood Suites in Springfield, Virginia were completed. In the Seattle metro area, WPPI has developed the Seattle Marriott Bellevue, a LEED Silver, full service hotel with 384 guestrooms, located at th Avenue NE in Bellevue and AC Hotel Seattle Bellevue/Downtown, a projected LEED Silver, 234 guestroom select service luxury hotel, located at th Place NE in Bellevue. Mercer Island RFQ WPPI Response Page 3 of 29

4 Key Team Members John M. Peterman President and Chief Executive Officer John M. Peterman is President and Chief Executive Officer of White/Peterman Properties, Inc. Past positions with Whiteco include President and Chief Operating Officer of Whiteco Industries, Inc., as well as Executive Vice President and Treasurer and Vice President of Special Projects; and President of the Celebration Station division. In his various capacities with Whiteco, Mr. Peterman has guided all aspects of operations, including billboard, hotel and apartment development. Much of Whiteco s success is due to his foresight, creativity, integrity, commitment to excellence and leadership skills. Prior to 1977, when Mr. Peterman joined Whiteco, he was employed with Ralston Purina in Lafayette, Indiana, Garden Village in Winter Haven, Florida, and was the Financial Analyst for White Investment in Merrillville, Indiana. Mr. Peterman received a Bachelor of Science degree in Accounting and Finance from Purdue University and was named the outstanding student in his class for the Krannert Business School. Mr. Peterman is a member of the World Presidents Organization. J. Matthew Chambers Executive Vice President of Development mchambers@whitepeterman.com J. Matthew Chambers is Executive Vice President of Development of White/Peterman Properties, Inc. In this position, he oversees all aspects of the company s real estate transactions, including acquisition, development, financing, construction and sale. Mr. Chambers joined Whiteco in 1996 and served as Executive Vice President of Development for Whiteco Industries, Inc. and Whiteco Residential, LLC. Prior to joining Whiteco, Mr. Chambers was employed with BDO Seidman, LLC as a manager in their audit department. Mr. Chambers graduated summa cum laude from DePaul University s School of Accounting. Mr. Chambers is also an Illinois Certified Public Accountant. Timothy J. Connelly Executive Vice President of Development tconnelly@whitepeterman.com Timothy J. Connelly is Executive Vice President of Development for White/Peterman Properties, Inc. Mr. Connelly directly coordinates all apartment development projects as well as oversees the new apartment project acquisition efforts. Since joining Whiteco in early 1999, Mr. Connelly has overseen the development of 23 apartment properties totaling over 6,000 units and is currently managing a development pipeline of over 1,000 apartment units. Mr. Connelly also has experience in retail, office and condominium development. Mr. Connelly started his career with the audit practice of Ernst & Young in Chicago, specializing in real estate, financial institutions and investment companies. Prior to joining Whiteco, Mr. Connelly was a Vice President at Stoneleigh Development Company from 1997 to From 1993 through July of 1997, Mr. Connelly was a Vice President of Asset Management for Ambassador Apartments, Inc., overseeing the risk Mercer Island RFQ WPPI Response Page 4 of 29

5 management, budgeting and financial analysis functions. Mr. Connelly helped grow Ambassador from 22 apartment communities with 5,000 units to over 16,000 units in 3 years. During that period, Ambassador was recognized by the investment community as one of the top small apartment REITs. Mr. Connelly is a Certified Public Accountant with a BS in Accounting from the University of Illinois at Urbana Champaign and an MBA from the University of Chicago with a concentration in finance. He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society and has served as a Director for the National Multi Housing Council, the industry s preeminent trade organization. Robert C. Hale Vice President of Development rhale@whitepeterman.com Robert C. Hale is Vice President of Development for White/Peterman Properties, Inc. He is responsible for the design, entitlements and purchasing for hospitality projects. Prior to joining WPM and White/Peterman Properties, Inc. in March of 2004, Mr. Hale worked as President of Construction and Development for A.G. Construction & Development and Vice President of Construction at Carrico Construction Company, Inc., both located in Wichita, Kansas. Mr. Hale s 30+ years of experience includes projects in California, Colorado, Florida, Indiana, Illinois, Kansas, Maryland, Missouri, Nevada, Ohio, Oklahoma, Texas, Arkansas, Pennsylvania, Washington and Virginia. Mr. Hale is a graduate of Purdue University, West Lafayette, Indiana where he received a Bachelor of Science degree in Building Construction Technology. Jason Wiesler Senior Vice President and General Counsel jweisler@whitepeterman.com Jason S. Weisler is Senior Vice President and General Counsel of White/Peterman Properties, Inc. In this position, he is responsible for a broad range of legal affairs, including real estate (acquisition, development, financing, construction and sale) as well as litigation, employment, corporate governance, and other commercial transactions. Mr. Weisler joined Whiteco in 2003 and has served as Director of Development of Whiteco Industries, Inc. and Vice President and General Counsel of Whiteco Residential, LLC and also handles the legal affairs of WPM Construction, LLC. Prior to joining Whiteco, Mr. Weisler was in private practice in Chicago for 10 years, representing the interests of individual and business clients, concentrating in the areas of real estate and general corporate work. Mr. Weisler also worked in public accounting as a CPA prior to graduating from law school and audited several real estate companies, along with a variety of other businesses. Mr. Weisler received a Juris Doctorate degree from the John Marshall Law School and a Bachelor of Science in Accounting from the University of Illinois. Mr. Weisler is licensed to practice law in Illinois and Indiana and holds a CPA certificate. Mr. Weisler was also a Licensed Title Examiner in Illinois, prior to joining Whiteco. Mercer Island RFQ WPPI Response Page 5 of 29

6 Rachael R. Lambie Senior Development Manager Rachael R. Lambie is the Senior Development Manager for White/Peterman Properties, Inc. Ms. Lambie is responsible for the apartment development process from land acquisition, entitlement, and design through to construction completion. Ms. Lambie began her career with the Whiteco family of companies in 1984 and has been with White/Peterman Properties, Inc. since September During this time, she has had direct involvement in the development of 13 apartment properties totaling over 2,900 units in California, Connecticut, Florida, Illinois, Texas, Virginia, and Washington. Ms. Lambie attended Purdue University, Hammond, Indiana. Penn DiJulio Vice President of Construction Mr. DiJulio has worked with WPPI for four years. During this time, he has been an integral part of the construction management team that has completed the AC Hotel Seattle Bellevue/Downtown, a LEED Silver, 8 story, type I construction, 234 guestroom select service luxury hotel in downtown Bellevue, Washington, and the Seattle Marriott Bellevue, a LEED Silver, 17 story type I construction, 384 guestroom full service hotel. Currently, Mr. DiJulio is managing the construction of the 3040 Apartments in Redmond, Washington. Prior to WPPI, Mr. DiJulio worked for Wood Partners Development and The Hanover Company as a Project Manager. He has completed high rise and wood framed multifamily projects totaling more than 1,000 units. Mr. DiJulio attended the University of Washington, Seattle, Washington and Stanford Graduate School of Business, Palo Alto, California. Jeff Fus Acquisitions jfus@whitepeterman.com Mr. Fus will be the primary contact for the Mercer Island Commuter Parking & Town Center Mixed Use Project. He began working with WPPI s multifamily development team in 2014 and is responsible for site acquisitions, underwriting and entitlements. Prior to WPPI, Mr. Fus worked five years with Enterprise Community Investment, Inc. He was responsible for underwriting and asset managing Low Income Housing Tax Credit (LIHTC) projects in the Mid Atlantic and was a national Portfolio Manager in the New Markets Tax Credit (NMTC) group. Mr. Fus has a BS in Marketing from Indiana University s Kelley School of Business and a MS in Real Estate Development from Johns Hopkins University. Development Partners WPPI has excellent relationships and will utilize top tier consultants in all aspects of the development process. WPPI has a full service construction management department in house which is overseen by Robert Hale. WPPI partners with highly reputable general contractors in the Seattle area to complete its projects. The general contractor selected by WPPI will be a well respected firm in the Seattle metro area. Mercer Island RFQ WPPI Response Page 6 of 29

7 Johnson Braund, Inc. Architecture Tukwila, Washington Since 1977, Johnson Braund has designed thousands of top quality projects throughout the United States while providing architecture and interior design services, including many mid rise apartment projects around the Seattle metro area. WPPI worked with Johnson Braund in the past which includes the Seattle Marriott Bellevue and Marriott AC in Bellevue. KPFF Civil Engineering Seattle, Washington KPFF provides expertise in all aspects of site development from initial site evaluation and regulatory agency interactions, to detailed site layout and infrastructure design. They have delivered successful and viable developments in hundreds of jurisdictions ranging from small mixed use developments to master planned communities. WPPI and KPFF teamed up on Old Town Lofts in Redmond in the past. Currently, WPPI is working with KPFF on Corner 63 and the Marriott AC Yale hotel, both in Seattle. SCA Consulting Engineers Structural Engineering Houston, Texas SCA was founded in 1983 and has completed thousands of projects throughout the country. In the Seattle metro area, WPPI worked with SCA on Old Town Lofts and 3040 Apartments in Redmond and the Seattle Marriott Bellevue and Marriott AC in Bellevue. Additionally, WPPI is currently working with SCA on Corner 63 in the Roosevelt neighborhood of Seattle and another Marriott AC hotel being planned for in the City of Seattle. McCullough Hill Leary, PS Legal Seattle, Washington McCullough Hill Leary, PS is the most highly regarded real estate development law firm throughout the Seattle metro area. It is an eleven attorney law firm emphasizing land use, environmental, real estate development and general business law. WPPI has worked with Jack McCullough and McCullough Hill Leary, PS on each of its projects in the Seattle metro including 3040 Apartments and Old Town Lofts in Redmond and Corner 63 in the Roosevelt neighborhood of Seattle. Most notably, Mr. McCullough has worked on the Bill & Melinda Gates Foundation headquarters, the Amazon.com headquarters development and the Starbucks headquarters development. Financial Capacity WPPI will serve as the developer of this project as well as the guarantor. The principal owners have a net worth of more than $100,000,000. Please reference the letter on the following page from Centier Bank which demonstrates the financial capacity of WPPI and its principals. Mercer Island RFQ WPPI Response Page 7 of 29

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9 Relevant Project Experience of White/Peterman Properties, Inc. Since 2000, WPPI has completed 23 multifamily projects with approximately 6,000 units throughout the United States. Currently, WPPI has one project, 3040 Apartments (243 units) in Redmond, under construction and another, Corner 63 (140 units) in the Roosevelt neighborhood of Seattle, in planning Apartments is scheduled to be complete in early 2019, and Corner 63 is anticipated to begin construction in mid The three projects highlighted in this package includes Oak Park Place in Oak Park, Illinois, Old Town Lofts in Redmond, Washington, and 3040 Apartments in Redmond, Washington. Oak Park Place Project Name: Location: Project Size and Scope: Oak Park Place 479 N. Harlem Avenue Oak Park, Illinois Oak Park Place is a 14 story, mixed use development which includes 200 apartment units above 13,000 SF of ground floor retail and a 1,300+ stall parking garage. One reason this project is so relevant to the Mercer Island Commuter Parking & Town Center Mixed Use Project is the structure of the partnerships are almost identical. Total Project Cost: Approximately $46,000,000 Oak Park Place was part of a Public Private Partnership between the Village of Oak Park and the predecessor of WPPI, Whiteco Residential. Whiteco Residential purchased the land from the Village of Oak Park for $2.2 million and paid $400,000 into the Village s affordable housing fund. In return, the City contributed a $4.0 million subsidy. Whiteco Residential planned the building around an existing parking garage and created a vertical subdivision for ownership purposes. The Village of Oak Park owned the parking garage while Whiteco Residential owned the apartments and retail. Sources of Funds: Internal equity plus construction financing Debt: Approximately $36,800,000 Equity: Approximately $3,200,000 Public Participation: Square Footage Costs: $4,000,000 subsidy Approximately $200 PSF for the apartments Approximately $150 PSF for the retail Date of Project Conception: July 2004 Mercer Island RFQ WPPI Response Page 9 of 29

10 Construction Start Date: September 2006 Construction Completion Date: December 2008 Challenges/Obstacles: WPPI Project Manager: The design was very intricate due to the requirement of integrating existing structures into the building as well as meshing a municipal garage with a private mixed use building. Tim Connelly tconnelly@whitepeterman.com Matt Chambers mchambers@whitepeterman.com Architect: Construction Manager: Primary Public Official: Brininstool + Lynch David Brininstool 1144 W. Washington Blvd. Chicago, IL Robert C. Hale rhale@whitepeterman.com David G. Pope, Past Village of Oak Park President Mercer Island RFQ WPPI Response Page 10 of 29

11 Oak Park Place Photos Figure 1: Before, West View (June 6, 2002) Figure 2: After, West View (August 12, 2009) Mercer Island RFQ WPPI Response Page 11 of 29

12 Figure 3: After, South View Figure 4: Street View, Ground Floor Retail Mercer Island RFQ WPPI Response Page 12 of 29

13 Old Town Lofts Project Name: Location: Project Size and Scope: Old Town Lofts Cleveland Street Redmond, Washington Old Town Lofts is a 149 unit, mixed use development with approximately 10,000 SF of retail and a 182 stall, underground parking garage. WPPI also coordinated extensive sidewalk and roadway improvements with the City of Redmond. Total Project Cost: Approximately $42,000,000 Sources of Funds: Internal equity plus construction financing Debt: Approximately $32,000,000 Equity: Approximately $10,000,000 Public Participation: Square Footage Costs: Date of Project Conception: None Approximately $155 PSF for the apartments Approximately $150 PSF for the retail Approximately $42 PSF for the garage October 2008 (land purchase) Construction Start Date: October 2012 Construction Completion Date: September 2014 Challenges/Obstacles: WPPI Project Manager: WPPI had to coordinate construction very closely with municipal projects which included a complete street replacement and a municipal park. Tim Connelly tconnelly@whitepeterman.com Rachael R. Lambie rlambie@whitepeterman.com Mercer Island RFQ WPPI Response Page 13 of 29

14 Architect: Construction Manager: Primary Public Official: Weber Thompson Jeff Dobbs 225 Terry Avenue North, Suite 200 Seattle, Washington Robert C. Hale Gary Lee Senior Planner Mercer Island RFQ WPPI Response Page 14 of 29

15 Old Town Lofts Photos Figure 5: Before, SW View (April 6, 2009) Figure 6: After, SW View (September 15, 2014) Mercer Island RFQ WPPI Response Page 15 of 29

16 Figure 7: SW View, Ground Floor Retail Figure 8: North View Mercer Island RFQ WPPI Response Page 16 of 29

17 3040 Apartments Project Name: Location: Project Size and Scope: Total Project Cost: Sources of Funds: Debt: Equity: Public Participation: Square Footage Costs: 3040 Apartments th Avenue NE Redmond, Washington A 243 apartment community designed with podium construction and a subterranean parking garage in close proximity to the Microsoft campus. WPPI coordinated extensive boundary line and utility line improvements with the neighbor to enhance the aesthetics of the area. In addition, WPPI incorporated a public plaza into the entry feature of the development. Currently private information at joint venture partner s request. Currently private information at joint venture partner s request. Currently private information at joint venture partner s request. Internal and external equity plus construction financing. None Currently private information at joint venture partner s request. Date of Project Conception: March 2016 Construction Start Date: November 2016 Construction Completion Date: Challenges/Obstacles: WPPI Project Manager: 3040 Apartments is currently under construction. The building is expected to be delivered in February The greatest challenge on this project is managing workforce availability. Otherwise, the project is progressing as planned. Tim Connelly tconnelly@whitepeterman.com Rachael R. Lambie rlambie@whitepeterman.com Architect: Jensen Fey Architecture Will Chu Mercer Island RFQ WPPI Response Page 17 of 29

18 Construction Managers and General Contractor: Robert C. Hale Penn DiJulio Halvorson Construction Group Tom Vasilatos Primary Public Official: David Lee Senior Planner Mercer Island RFQ WPPI Response Page 18 of 29

19 3040 Apartments Photos/Renderings Figure 9: Before, NW View Figure 10: NW View (August 31, 2018) Mercer Island RFQ WPPI Response Page 19 of 29

20 Figure 11: SE View (August 31, 2018) Figure 12: Rendering, NE View Mercer Island RFQ WPPI Response Page 20 of 29

21 PROJECT VISION / PRELIMINARY CONCEPT PROPOSAL Approach: WPPI approaches this project from the ground up to incorporate a pedestrian feel that ties into the surrounding neighborhoods and future light rail station. All the uses on the ground level are of commercial use or a pedestrian plaza. WPPI would propose a vertical subdivision and condominium ownership structure where the City would own the commuter level of the parking structure, and WPPI would own the retail and residential space along with the resident level of the parking structure. In order for the residents to gain access to the resident level of parking, the City would grant an easement to WPPI and its residents. The maintenance of the parking structure will be shared and mutually agreed upon in a separate agreement. Conceptually, WPPI would consider a mixed use development with: 221 subterranean parking stalls (113 commuter stalls) 16,300 SF of commercial (56% of the ground floor space) 110 apartments Approximate Square Footage: Lower Level 2 (Parking) 41,300 SF Lower Level 1 (Parking) 41,300 SF Level 1 29,000 SF Level 2 24,100 SF Level 3 24,100 SF Level 4 24,100 SF Level 5 24,100 SF Total: 208,000 SF Number of Stories: Phasing and General Timeline: 5 stories; includes 1 story of type I construction on the ground floor and 4 stories of type V construction above. The project would be developed in a single phase with construction expected to last approximately 30 months. If possible, WPPI will work with the City to open the commuter parking prior to the construction of the building being complete. Conceptual Site Plan: A conceptual site plan can be found on page 29. Parking: WPPI s preliminary parking plan estimates 221 parking stalls total on two levels of a subterranean garage. Lower Level 1 of the parking garage, which includes 113 commuter parking stalls, would be Mercer Island RFQ WPPI Response Page 21 of 29

22 designated for commuter parking. Lower Level 2 (108 parking stalls) would be used for resident parking. Pedestrian Circulation: Financial Strength: Community Benefit: Being located at the northwest corner of SE 27th Street and 80th Avenue SE and in such close proximity to the future light rail station, WPPI understands the importance of maximizing pedestrian circulation at this site. Therefore, the entire project will be designed to maximize the pedestrian circulation and benefit the experience around the light rail. WPPI will tie into the existing walking/bike trail and enhance the walkability of the neighborhood. Pedestrians will have the option to walk north of the building on the path which will remain connected to the Greta Hackett Outdoor Sculpture Gallery or south of the building where WPPI will add to the vibrant commercial corridor of SE 27th Street. WPPI is an extremely well capitalized company and has great success in raising capital and securing debt for its projects. WPPI is well equipped to handle a project of this size. As evidenced in prior projects, WPPI takes great pride in working with communities who are forward thinking and have a desire to grow. Below are some community benefits WPPI can offer: WPPI will create a public open space that ties into the corner of SE 27th Street and 80th Avenue SE. Here, pedestrians will have an opportunity to visit on their way to/from the light rail station or make it a destination location as it will be very welcoming. WPPI will work with the City to integrate the Greta Hackett Outdoor Sculpture Gallery into the design. WPPI is interested in working with Mercer Island Center for the Arts (MICA). As shown in the site plan, WPPI designates space in the north side of the building on the ground floor as possible MICA space. This could be a great location as it will open to the Greta Hackett Outdoor Sculpture Gallery. Should MICA need additional space as they grow or have a desire to be in a different location on the ground floor, WPPI will be open to a discussion. WPPI will use its vast mixed use experience and create gathering space the community will be proud of. The community benefits are not limited to the points listed above. WPPI desires a working relationship with the City and its community leaders to help plan a project that best meets the needs of everyone involved. Mercer Island RFQ WPPI Response Page 22 of 29

23 Impact: High Quality Design: Timeliness: Partnership: Sustainability: WPPI envisions a conceptual project that will be highly regarded in the Seattle area which will have a well designed mix of residential, retail and community uses with access to light rail. WPPI has the reputation of building high quality projects with excellent design. WPPI is prepared to work on this project within the City s timeline and have the resources to do so. As described herein, historically, WPPI has proven to be an excellent partner with municipalities, investors, lenders and community stakeholders all its projects. WPPI will pursue LEED Gold status for the project. Mercer Island RFQ WPPI Response Page 23 of 29

24 Conceptual Site Plan and Floor Plans Mercer Island RFQ WPPI Response Page 24 of 29

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