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TYPE
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UPFITTING
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OFFICE
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IMAGE
SCHEDULE
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FIRST COME-FIRST SERVED
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Location
First and Second floors of the Castalia Project located in Meadowmont at 301 West Barbee Chapel Road, Chapel Hill, North Carolina.
Type
24,500± rentable square feet per floor of space for office and general commercial leasing. The space can be subdivided as low as 800 rentable square feet.
Rates
$27.00/rsf full service rate - prior to construction
$5.50/rsf Operating Expense Allowance
$21.50/rsf Net3 rents
Upfitting
$30.00 per rentable square foot allowance outside of the shell building. This upfitting allowance is intended to upfit a standard office at current quality standards.
This amount is to include the design, permitting and construction. This can be used as mutually agreeable providing quality standards are upheld. If over-standard upfitting is appropriate, some additional costs could be amortized as mutually agreeable over the initial term of the lease.
Castalia
A three-story mixed use office and residential project located on a prominent site just off NC 54 at W. Barber Chapel Road in Meadowmont. The building submitted for Town approval is designed to be approximately 72,500 square feet. The project will be very high quality featuring state-of-the-art finishes and appearances.
Office
The first and second floors are intended to be office use with approximately 24,500 square feet per floor. The building will be designed to have ample glass with high quality interior finishes consistent with Class A offices found in this market and other top tier cities.
Residential
The third floor is designed to be divided into nine residential units averaging just under 2,700 square feet in gross area, and about 1,800 usable interior square feet. Each unit will have a balcony area overlooking the Meadowmont development. Access will be by secure elevator or stairs. Covered, protected parking will be reserved for use by residents.
Location
The location, with direct visibility to NC 54, the major gateway into Chapel Hill, is the most prominent site in Meadowmont. The architecture is designed to be both consistent with other projects in Meadowmont and to create a signature project. This location is within walking distance of retail, restaurant, shopping and fitness facilities. The site is 2.2 miles west of I-40 and within eight miles of the Raleigh Durham Airport.
Image
The image sought in the design is one of lasting quality and permanence. The image is being driven by the need to have clients, customers, employees and residents feel the confidence they share in their business with tenants. The use of materials and designs in the common areas consistent with Class A projects in other cities is intended to convey this without opulence.
Schedule
The project received Special Use Permit Approval on October 8th. It is our intent to submit for the Zoning Compliance Permit December 17st. We anticipate a building permit on or about March 1, 2007. Completion is intended for the Summer of 2008.
Caveat
The above costs are based on certain design assumptions and material choices. As with any construction, the prices may vary due to changes in designs dictated by the approval process or permitting as well as by choice. The commitment will be made to you to have an open book policy on all costs including all changes that may add or deduct from the above total. Changes in cost will change the rents below.
Rents
The office rents are divided into two parts, the Net or Base Rent and the Operating Expenses.
Base Rent
The Base Rent is the Net3 rent used to fund the cost of the project and the upfitting. A commitment from a major tenant in advance of construction allows for the project to save significant costs since the upfitting and other items can occur during the natural design, permitting and construction process. A commitment now based on the above costs result in a base rent of $21.50 per square foot. This rent is intended to escalate each year based on a set or fixed increase.
Office Lease Operating Expenses
These are the expenses associated with the day-to-day operation of the project. These are intended to be based on actual costs. The first year will be budgeted based on experience with similar buildings in the area. At the end of the first year the expenses will be adjusted to the actual costs incurred. There is no automatic increase or escalation for operating expenses. Expenses will be increased only to the extent that the actual costs increase. The initial year's expenses are intended to be budgeted as shown below.
Please note that the office operations will be separated from the residential operations since their needs are different. The residential portion will be budgeted, billed and managed separately from the office portion.
The initial breakdown of the office operating expenses is:
| Real Estate Taxes & Insurance | $1.25 |
| Utilities (Elec. Water/Sewer) | $1.65 |
| Janitorial Services | $0.90 |
| 18 other management items | $1.70 |
| Total | $5.50/rentable sq.ft. |
Condominium Sales
We are marketing the condominium units with what we describe as a completed shell condition which includes basic items such as HVAC systems, plumbing, security systems and other construction items. The upfitting would be limited to the interior walls, finished and appliances. The initial asking price will be in the $400 per square foot range with the interior finishes added to this.
We are offering to provide turn key construction for a tenant with the upfitting to be included at our cost.
Reservations
We are actively taking reservations for office leases. Since we do not yet know the final shell costs, reservations are contingent on final costs. At the time we initiate construction, reservations must become firm contracts.
First Come-First Served
The project is actively marketing its space for lease and the residential units for sale. The practice of the project is to deal on a first come-first served basis with a signed commitment for space. Absent of a signed agreement, space is being actively marketed to other prospects.
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