Filling The Equitable TOD

Financing Gap

March 21, 2013

ULI Housing Opportunity

Kimberly McKay, Executive Vice President

BRIDGE Housing Corporation

14,000+ homes and

apartments

85 California communities

37,000 residents

Development in Northern

and Southern California

About BRIDGE Housing Corporation

3

BRIDGE Transit Oriented Developments

Completed over 2,500 units in 24 developments

Nearly 25% of BRIDGE residents live in TODs

4

BRIDGE TOD Pipeline

8 developments with over 2,000 units currently in

the pipeline

5

Developing Affordable TOD Housing

Challenges

• Market Has No Incentive to Create

• Higher Construction Costs

• Land Availability

• Land Cost

• Community Opposition

• Public Benefit Add-Ons

• Complicated Financing Structures

• Need for Gap Financing

COMM 22

COMM 22

Partnering with two local nonprofits

Redevelopment of school district maintenance

facility; vacant for 20 years

Elimination of RDA’s

Mixed Use/ Multiphased project: • Affordable Family Rental - 130 units

• Affordable Senior Rental - 70 units

• 15,000 s.f. of retail

• Day Care Center

• Live/work lofts + retail - 38 units + retail

• For-sale rowhomes - 17 units

COMM 22—Existing Conditions

COMM 22 Existing Conditions

COMM 22

COMM 22—Extensive Infrastructure

COMM 22

COMM 22

COMM 22--TIMELINE

BRIDGE selected by San Diego School District RFP– 2004 Ground lease negotiation/Entitlement/Design Process – 2005-2007 City Council Approval of Entitlements/Preliminary Design – Dec. 2007 HCD and other infrastructure grant fund obtained – 2008 Family Housing – All gap financing secured – June 2011 Commence infrastructure– July 2012 Family Housing - Tax credits and bonds secured – October 2012 Family Housing – Construction financing closing – February 27, 2012 Grading permit issued – March 2013 Infrastructure work complete – March 2013 Family Housing – construction commencement – April 2013

9 Years to a closing !!!!

COMM 22: Sources and Uses

COMM 22

COMM 22

MacArthur BART Transit Village

MacArthur BART Transit Village

Transit Agency Land – Goal to intensify uses to increase

ridership/access

State infrastructure bonds

Local Agency investment

Private Sector involvement

BRIDGE Horizontal Developer

Phased Development

Phases Construction Completion

One: Infrastructure & Garage 2012 2014

Two: Affordable Development 2013 2014

Three - Five: Market Rate 2014-2021 2016-2023

MacArthur BART Transit Village

The MacArthur BART Station is the central hub and transfer point

of the entire BART system

Approximately 430 trains pass through the station

Close to 9,000 people use the Station on a daily basis 39% travel

by shuttle

29% of patrons walk; more than the system-wide average

7% of daily users ride their bike; over twice the system-wide

average

15% of the daily patrons are dropped off

Less than 10% of daily users drive and park

MacArthur Transit Village

Project Summary:

• 7.76 acres

• 516 Market Rate Homes

• 108 Affordable Homes

• 42,500 sf Commercial/ Retail

• 5,000 sf Child Care Facility

• 400+ stall parking garage

MacArthur BART Transit Village

Market Rate +

RetailAffordable Garage Infrastructure

Sources

Construction Loan $169,371,000 $0 $0 $0

Permanent Mortgage $0 $1,285,000 $0 $0

Investor Equity $59,990,000 $18,098,000 $6,531,000 $0

City RDA $8,140,000 $17,178,000 $0 $10,500,000

Proposition 1C $0 $4,014,000 $18,418,000 $14,849,000

Federal Funds $0 $135,000 $0 $1,313,000

Total Sources $237,501,000 $40,710,000 $24,949,000 $26,662,000

Uses

Acquisition $20,440,000 $1,520,000 $4,700,000 $10,500,000

Construction $140,953,000 $30,860,000 $16,992,000 $13,075,000

Indirects $37,610,000 $3,740,000 $987,000 $1,099,000

Finance $17,104,000 $2,500,000 $0 $0

Contingency $12,707,000 $490,000 $1,500,000 $1,352,000

Organizational $8,687,000 $1,600,000 $770,000 $636,000

Total Uses $237,501,000 $40,710,000 $24,949,000 $26,662,000

MacArthur BART Transit Village

MacArthur BART Transit Village