Case Study: Bay Street Redevelopment
23 April 2018
Mr Joseph Fred
Bank of Canada
27 Yonge Street
Toronto
Canada
M5Y 2AP
Dear Mr Joseph,
1075 Bay Street Redevelopment
Based on the statement above, I am writing on behalf Downtown Development to request a funding for a redevelopment project. The project is situated at 1075 Bay Street, Toronto, Ontario, Canada. The site is currently a mixed use of office and retail property.
Attached herewith a development appraisal report regarding to the proposed project. To give you a full understanding regarding the proposed development, we will include a detailed explanation regarding the overview of site, market condition in Toronto, our planning of redevelopment and the funding of this project in this report. Besides that, we will also include …show more content…
dimensions 10m x 8m x 8m high)
Retail area 19,000 ft2 (same as existing)
Hotel 200 rooms, 91,500 ft2 of rooms over 10 floors
Figure 3: Proposed Change
In the nutshell, the car park and retail area will remain unchanged, while there will have slightly changes in terms of the space of office unit due to the construction of the building entrance. Besides that, there is an additional of 10 floors on the building for hotel operation.
2.2 Timescale of the project
Figure 4
The figure above shows the timescale of the redevelopment in 1075 Bay Street. We can see that the project is divided into three main stages with a duration of 3 years 6 months. The first phase of the development is pre-construction of the building, which include the planning of outline design, design development and obtaining full planning consent. The second phase is the construction part of the property. We will first refurbish the existing office unit and the entrance of hotel. We will then carry out the construction of new structure after the completion of refurbishment. The last phase of this project will be the sales of hotel operation to the third party. We decided to rent the office unit and retail area and transfer the hotel operation to third party in running the business. This can …show more content…
As we are targeting the leisure/business traveler from middle income, we decide to operate a budget hotel in the property.
Office $27/ ft2 The market rent of office unit is between $23-$27/ ft2As we will carry out refurbishment at the office unit, we assume that the new outlook will be more attractive to the tenant.
Retail $40/ ft2 The market rent of office unit is between $35-$41/ ft2. As we will carry out refurbishment at retail area as well, it can attract more potential tenant to operate their business in our building.
Car park $12/spaces This is the market price in Downtown area for one day.
Figure 5: Rental income of the
Mr Joseph Fred
Bank of Canada
27 Yonge Street
Toronto
Canada
M5Y 2AP
Dear Mr Joseph,
1075 Bay Street Redevelopment
Based on the statement above, I am writing on behalf Downtown Development to request a funding for a redevelopment project. The project is situated at 1075 Bay Street, Toronto, Ontario, Canada. The site is currently a mixed use of office and retail property.
Attached herewith a development appraisal report regarding to the proposed project. To give you a full understanding regarding the proposed development, we will include a detailed explanation regarding the overview of site, market condition in Toronto, our planning of redevelopment and the funding of this project in this report. Besides that, we will also include …show more content…
dimensions 10m x 8m x 8m high)
Retail area 19,000 ft2 (same as existing)
Hotel 200 rooms, 91,500 ft2 of rooms over 10 floors
Figure 3: Proposed Change
In the nutshell, the car park and retail area will remain unchanged, while there will have slightly changes in terms of the space of office unit due to the construction of the building entrance. Besides that, there is an additional of 10 floors on the building for hotel operation.
2.2 Timescale of the project
Figure 4
The figure above shows the timescale of the redevelopment in 1075 Bay Street. We can see that the project is divided into three main stages with a duration of 3 years 6 months. The first phase of the development is pre-construction of the building, which include the planning of outline design, design development and obtaining full planning consent. The second phase is the construction part of the property. We will first refurbish the existing office unit and the entrance of hotel. We will then carry out the construction of new structure after the completion of refurbishment. The last phase of this project will be the sales of hotel operation to the third party. We decided to rent the office unit and retail area and transfer the hotel operation to third party in running the business. This can …show more content…
As we are targeting the leisure/business traveler from middle income, we decide to operate a budget hotel in the property.
Office $27/ ft2 The market rent of office unit is between $23-$27/ ft2As we will carry out refurbishment at the office unit, we assume that the new outlook will be more attractive to the tenant.
Retail $40/ ft2 The market rent of office unit is between $35-$41/ ft2. As we will carry out refurbishment at retail area as well, it can attract more potential tenant to operate their business in our building.
Car park $12/spaces This is the market price in Downtown area for one day.
Figure 5: Rental income of the