Mundie & Associates

Practice Areas: Real Estate Analysis for the Public Sector

Our Clients Ask Us:

Will current rents/sales prices support new development, given production costs? Are rents/sales prices expected to increase in the future?

Our Types of Projects

  • Effects of policies, plans, and regulations on the feasibility of development
  • Subsidy requirements for new construction in revitalization/redevelopment areas
  • Feasibility of private projects
  • Changes in market (or other) conditions required to make proposed projects feasible
  • Value of a potential development site

How would the feasibility of development be improved by changes in development regulations, investment in new infrastructure, reductions in processing charges, fees, and exactions or subsidies, offsets, or incentives?

What strategic public-sector policies would be most effective in [increasing the supply of affordable housing] [improving the local fiscal balance]?

Our Cases

Real Estate Analysis for Redevelopment of San Francisco's Transbay Bus Terminal » M&A analyzed the potential returns from a joint development project to ascertain whether joint development could be counted as a likely source of revenue for redevelopment of the Transbay Terminal, which was deemed seismically unsafe following the Loma Prieta earthquake of 1989. The analysis focused on the amount a private developer would be willing to pay for a development site on the bus terminal parcel, given the costs of development and reasonably foreseeable revenues from an office building that would share the parcel with the transit facility.

Feasibility Analysis for Sacramento Central City Residential Development » Housing prototypes that were considered possibilities for downtown and close-in residential areas of Sacramento were the subject of real estate feasibility analysis undertaken by Mundie & Associates as part of a broader Central City Housing Strategy the firm prepared for the city. The firm's in-house cash flow model was used to project cost and income streams, and resulting developer returns, for rental and sale units at a variety of housing densities ranging from attached single family homes to a 16-story high rise. This work contributed to the formulation of M&A's identification of the most effective approaches to expanding housing production in the central city area and the overall direction and emphasis of the Central City Housing Strategy.

Evaluation of a Housing Linkage Requirement » The likely response of developers to a housing linkage requirement was assessed by M&A in this study for the Sacramento Housing and Redevelopment Agency. M&A analyzed the financial feasibility of office construction in Sacramento's R Street Corridor under the assumption that office developers would be required to build or fund housing units in proportion to the amount of office building space they construct. Feasibility tests also evaluated the impacts of alternative rents and height limits on the office structures. The study provided background to the Sacramento City Council's selection of a plan for the R Street Corridor.

Analysis of Housing Requirements for the San Luis Obispo General Plan » When the draft Land Use Element of its 1991 General Plan update came up for public review, the San Luis Obispo City Council sought information about the impacts of proposed inclusionary housing requirements on the production of market-priced housing. M&A, engaged to assist in this effort, lay the groundwork with research into the local land market and local housing production conditions. M&A then analyzed the relationship between affordability requirements and likely housing production, taking into account the developer's option to comply with the requirement either by providing affordable units or paying a fee. M&A worked with City staff to identify alternative requirements, less onerous for the private sector, that would be more likely to produce both market-priced and below-market-rate housing, and would therefore be more effective in attaining the city's overall goals. Since completing the original analysis, M&A has been asked twice, at six-year intervals, to update the analysis consistent with changed market conditions.

Evaluation of a Development Pro Forma to Ascertain Land Value » M&A was engaged by the San Francisco Public Utilities Commission to evaluate the purchase price offered by a developer for a site that could accommodate up to 35 housing units. To arrive at an independent estimate of the value of the site, M&A simulated the development cost and sale price characteristics of the proposed project, including the provision of units priced at below-market rates, to advise the PUC about the suitability of the offer.

Joint Development of a Transit Storage Facility » M&A helped the San Francisco transit agency, Muni, evaluate the potential for attracting a joint development project to assist in the rebuilding of a storage and maintenance facility. Rebuilding was required to accommodate storage of new, longer, articulated trolleys. M&A undertook a market analysis to identify private uses that could be successful on the site, and completed a real estate feasibility analysis to estimate the price a developer would be willing to pay for the right to develop private uses. The consulting team, led by M&A, evaluated several alternative joint development project packages and recommended the most desirable package to the San Francisco Public Utilities Commission.

 

3452 Sacramento Street, San Francisco CA 94118 · Voice: (415) 441-9640 · Fax: (415) 441-9683