Development pitch
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EPIC Development is proposing a 60,000 square foot commercial property in Westhill that will be LEED Gold certified. The $11.5 million development is expected to have lower operating costs than conventional buildings due to energy and water efficiencies. With a 4% premium over traditional construction costs, the payback period is estimated to be 1.9 years. The development aims to attract sustainability-focused tenants and plans to differentiate itself through its green features and alignment with tenants' values.
Development pitch
- 1. EPIC DevelopmentCommitted to designing, developing and building commercial properties with a focus on social and environmental longevity.Corporate Proposal
- 2. Product60,000 Sq.ft. LEEDs Gold Certification$11.5 millionFARMERProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 3. ProductProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 5. ProductGreen Benefits60,000 Sq.ft. LEEDs Gold Certification$11.5 millionLEEDS GOLDRATINGProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 7. Reduce impact on the environment
- 11. Improve the bottom lineProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 12. ProductAverage Cost Premium for Green Buildings4% Premium = $401 467 equating to $3.50 per square foot in cost savings via energy, water, and waste efficiencies. Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 13. ProductPremium Cost Break EvenPay Back Period=1.9 years based on $210 000 cost savings with 96% occupancyProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 14. ProductEPIC Development Rent Structure for Green BuildingsAverage Industry Rent Structure of Conventional BuildingsProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 15. FinancialsLease Price and RevenueBased on 96% occupancyProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 16. FinancialsBreak-EvenBE cash flow early 2010
- 17. Yearly occupancy of 30% is needed to cover expenses and financial obligations Ending Cash Balances Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 18. MarketOur Tenants need to: Assist in building a community centre
- 19. Match our green values
- 20. Satisfy the needs of Westhill residentsProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 21. MarketMarket SizeCanadian Green Business Industry Size - $15 billion
- 22. Development will be competing based on a differentiation strategyTarget MarketSustainability Innovators
- 23. Anchor Tenant: Niche GrocerProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 25. Massive public pressure = creation of green development industry
- 26. Industry Trend
- 27. Commercial development industry 9% growth
- 28. Green commercial development industry - 34% growthProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 29. IndustryGrowth in LEED Membership Top 3 reasons green development are gaining in popularityRising Energy CostsSuperior Building PerformanceCustomer DemandProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 30. IndustryGreater Victoria Area = Average 0.5% vacancy rate in neighbourhood shopping centresProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 31. IndustryHighDocksideGreenBearMountainAlignment of ValuesOlympic ViewGoldstream MeadowsHighLowPopulation Density of DevelopmentProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 32. Success FactorsCritical Success Factors:Anchor tenant acquisition
- 35. Tenant retentionProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 36. LEEDCertificationMarketing and Sales: ongoing till full occupancySecond stage fundingObtain Mortgage and PermitsSecure Tenants -BEoccupancy 30%Land PreparationTimelineFriends and Family FundingBuild Partnerships and RelationshipsSecure LandSecure Anchor TenantsDesign BuildingConstructionConstructionTenants move in and become OperationalJul 09Sept 09Dec 07Feb 08Apr 09May 09Jun 09Aug 09Sept 07Jan 08Mar 08Oct 07Nov 07Apr 08Oct 08Nov 08Dec 08Jan 09Feb 09Mar 09May 08Sept 08Jun 08Jul 08Aug 08Phase 1: PlanningPhase 2: ConstructionPhase 2: ConstructionPhase 3: OperatingProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 37. ChallengesChallenges SolutionsEnsure all employees are trained and are on boardNot getting certified by LEED
- 38. Securing Anchor TenantProactive Marketing and mutually beneficial leaseFollowing Construction TimelineWork closely and communicate with project manager and suppliers Continuously re-evaluate progress Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 39. Proposed Offer$4.2 million investmentFunding usesLakeside provided as collateralPercentage of available ownershipProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
- 40. ConclusionProduct Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Editor's Notes
- #6: Rick has already told you this is a 3 floor, 60,000 sq. ft. sustainable commercial structure we are building and where it is going to be located.Now Im sure your asking yourself how is this building any different than any other commercial structure? Where is the value? The value to you is a sustainable structure boasts higher than industry average profit margins which are achieved through increased operating efficiencies. These efficiencies are achieved through the followingPhotovoltaic systems HVAC Bamboo flooring Recycled materials Low e glaze windows When talking to Farmer construction, it has been suggested that by installing these systems in addition to others, has given the Lakeside project an estimated energy savings of 45-55%.Competitive AdvantageEPIC Development will capitalize on this trend as more businesses will be in need of sophisticated commercial facilities.油 EPIC Developments competitive advantage is rooted in our focus on a differentiation strategy through sustainable, green practices. These practices advance growth and enhance margins rather than use cutbacks to facilitate profit generation.油 For these reasons, EPIC Developments first project, Lakeside at Westhills answers industry demand.
- #7: Competitive AdvantageA study33 by Lawrence Berkeley National Laboratory concluded that improvements to indoor environments common in green buildings could reduce health care costs and work losses as follows:a) from communicable respiratory diseases by 9 to 20%b) from reduced allergies and asthma from 18 to 25%c) from non specific health and discomfort effects by 20 to 50%Differentiation strategy through green practicesPromoting growth and enhancing margins While there is a small cost premium associated with sustainable construction, the costs to build green are dropping constantly, and as alicia will show you, is well worth the premium