1. The Last Mile is a development vision that stands on the legacy
of Chicago’s industrial heritage, preparing the city for the emerg-
ing global distribution economy. Just as industrialists capitalized on
the transportation hubs of Chicago during the mid-1800’s, the Last
Mile utilizes the site’s unique positioning along the Chicago River
and between thriving neighborhoods to create an optimized, livable
logistics landscape. To do this, the Last Mile focuses on three core
aspects: Distribution, Institutions, and Landscape.
A Distribution Focus capitalizes on the new ways goods are pro-
duced and distributed to create a site that serves the entire northern
and western areas of the city. Unlike traditional distribution cen-
ters of the past, cloistered outside the city, the Last Mile’s state-of-
the-art distribution center is positioned to enable near-immediate
delivery services, which city-dwellers have come to expect today.
Carriers will circulate from this hub at a human scale, meeting the
needs of a twenty-first century city. At launch, deliveries will be
disbursed on electric cargo-carrying bicycles. However, the site is
prepped for drone deliveries as this technology evolves. This initial
human focus allows for the creation of hundreds of entry-level sort-
ing and delivery jobs.
The Institutional/Collaborative Focus ensures that Chicago’s
manufacturing and distribution landscape is inclusive for all resi-
dents by partnering with nearby institutions. Congregated around
the mixed-use center of the site, affordable Live-Work Spaces are
provided for budding entrepreneurs engrossed in the intensity of
starting their business. These businesses create an exciting desti-
nation for Chicagoans who want to peruse the latest innovations
as they stroll down designated Pedestrian Focused “P-Streets”.
Partnering with UI Labs, Kellstadt Graduate School of Business,
and the DePaul University School of Social Work, the hub will be
an inclusive and collaborative incubator. Beyond providing office,
classroom, and dormitory space for intensive apprenticeships, four
of the Live-Work spaces are reserved for the most promising DePaul
startups. The Last Mile will employ a full-time business consultant
specifically tasked with bringing smart infrastructure manufactur-
ing, minority-owned businesses, and green technology companies
to the site’s commercial, light manufacturing, and office spaces.
The Mindful Remediation Focus completes the Last Mile’s vision
by fully connecting the site to the surrounding network and reme-
diating park space on the eastern side of the Chicago River without
erasing its industrial past. The Riverfront Bike Trail connects with
the Bloomingdale Trail to provide a much needed East-West con-
nection for deliverers and commuters alike. The William Bolden-
weck Park provides green space for the influx of new residents in
the Last Mile but keeps the relics of the industrial infrastructure that
enabled the city to grow into the metropolis it is today.
Together, these elements create a livable logistic landscape rooted
in the past but poised towards the future. By developing the Last
Mile, this region of Chicago will enjoy a mix of restaurants, galler-
ies, maker spaces, and shops that city dwellers seek at a whole new
level.
Design/Development Narrative
Financing Narrative
Phasing
The development of the Last Mile evolves throughout four phases
that are coordinated with our three focus areas: Distribution, Institu-
tional Collaboration, and Mindful Remediation. In Phase One, The
Starting Line, we purchase (Site A) for $140,293,629 as well as
three parcels in the northwest corner of the project site for a com-
bined $19,884,70. We work with the City of Chicago to convert
the site to an Industrial Mixed-Use Zone that can support human
scale industry, residential, and commercial uses. WCI owns Site A
and Site B, these purchases allow for all of the revenue generating
programs to be developed. This phase installs the distribution center
and east side condominiums on the Chicago Riverfront to create an
immediate source of capital, sparking logistic activity on the site. In
Phase Two, Setting the Pace, the institutional programs and resi-
dential rental units are introduced. In Phase Three, Maintaining In-
tensity, we lease roughly 50,000 square feet from Home Depot on
the southern border of the development site for $50 per square foot
annually. We anticipate Home Depot would welcome the opportu-
nity to generate income on land previously devoted to underused
parking. Finally, in Phase Four, Finishing Strong, we complete the
Remediation focus of the development by purchasing the land north
of Site C to complete the William Boldenweck Park. While this land
will not generate revenue, we anticipate an increase in property val-
ues by providing access to a large green space. WCI will be able to
purchase the parcels north of Site C using the revenue generated by
the sales of 50% of the condominiums. We are not purchasing any
property from the Finkl Site because we are assuming the site will
be developed by the current owner.
Loan Scheduling
Each of the first three phases will utilize a construction loan to begin
the development which then rolls into a new permanent loan. Each
of these construction loans only accrues 5.5% interest for the first
two years with a 60% LTV and then balloons before being rolled
into a permanent loan. Each time this occurs, the overall loan will
be refinanced to incorporate the existing loans with the new debt
service requirements at a 6% interest for the first loan and a 4.4%
interest as the development stabilizes.
Public Tax Credits and Grants
To maintain a viable debt coverage ratio without requiring an un-
realistic amount of initial capital, we utilized three main sources
of publicly-provided capital: Low Income Tax Credits, New Mar-
ket Tax Credits sponsored by the Chicago Development Fund, and
the Large Distributed Solar and Wind Grant Program. The first two
funding sources are calculated based on a percentage of the overall
development costs. They contribute a significant amount of capital
for the projects. The Large Distributed Solar and Wind Grant Pro-
gram provides $250,000 dollars, however, this amount is still valu-
able because of the sizable costs for the urban park.
Team 177345

3. 2017 ULI Hines Student Competition Team Summary Board_TEAM_177345
1. Summary Pro Forma
Year 0 Phase I Phase II Phase III
2017-2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Net Operating Income
Market Rate Rental Housing 0 0 0 0 11,795,416 12,149,279 25,132,495 25,886,470 26,663,064 27,462,956 28,286,844
For-Sale Housing 0 0 142,339,595 0 0 0 0 0 135,578,022 0 0
Affordable Rental Housing 0 0 0 0 1,366,346 175,352 2,908,841 2,996,106 3,085,989 3,178,569 3,273,926
0 0 482,323 496,793 1,806,257 1,860,444 2,400,038 2,472,039 2,546,200 2,622,586 2,701,263
0 0 0 698,253 622,969 474,723 1,101,513 1,046,008 1,402,314 1,444,384 2,068,287
Live Work Space 0 0 3,238,227 3,741,419 19,109,605 13,898,223 26,251,522 23,990,748 31,499,549 32,456,535 33,442,231
Student Housing 0 0 0 0 76,184 78,470 80,824 83,248 85,746 88,318 90,968
0 0 11,865,458 12,221,422 12,588,065 12,965,707 13,354,678 13,755,318 14,167,978 14,593,017 15,030,808
Light Manufacturing 0 0 0 0 0 266,679 274,680 524,782 540,525 556,741 573,443
0 0 310,408 1,253,936 1,870,589 2,473,308 3,024,739 3,703,881 4,328,722 4,458,584 4,592,341
Development Fees 0 0 0 1,591,440 0 1,551,923 0 3,364,061 0 4,000 0
0 0 158,236,011 20,003,262 49,235,431 45,894,108 74,529,330 77,822,661 219,898,109 86,865,690 90,060,112
Development Costs
Market Rate Rental Housing 0 0 0 89,274,740 0 95,506,132 0 0 0 0 0
For-Sale Housing 0 104,201,043 0 0 0 0 0 254,277,492 0 0 0
Affordable Rental Housing 0 0 0 19,859,835 0 21,246,055 0 0 0 0 0
0 3,933,150 0 10,556,617 0 3,945,029 0 0 0 0 0
0 0 0 6,281,432 0 4,442,647 0 2,356,602 0 0 0
0 132,027 0 639,059 0 260,046 0 147,795 0 0 0
Student Housing 161,547 0 4,607,654 0 162,035 0 0 0 0 0
Distribution 0 19,349,666 0 0 0 0 0 0 0 0 0
Light Manufacturing 0 0 0 0 3,467,064 0 3,144,408 0 0 0
0 4,368,971 0 9,614,580 0 7,924,188 0 8,530,141 0 0 0
0 4,900,848 0 7,300,968 0 7,248,520 0 9,150,048 0 0 0
0 0 0 11,009,103 0 10,990,594 0 58,799,603 0 400,000 0
Indirect costs
0 137,047,253 0 159,143,988 0 155,192,311 0 336,406,088 0 400,000 0
Annual Cash Flow
$0 0 158,236,011 20,003,262 49,235,431 45,894,108 74,529,330 77,822,661 219,898,109 86,865,690 90,060,112
Low Income Tax Credits 5,302,750 5,302,750 5,302,750 5,302,750 5,302,750 5,302,750 5,302,750 5,302,750 5,302,750 5,302,750
Large Distributed Solar and Wind Grant Program 0 0 0 0 0 250,000 0 0 0
New Market Tax Credit 0 0 0 2,078,918 2,078,918 2,078,918 2,078,918 2,078,918 2,078,918 2,078,918
Land Acquisition $0 (179,370,636) 0 0 0 0 0 (28,810,540) 0 0 0
Total Asset Value 7% 0 0 0 0 0 0 0 0 0 1,286,573,031
5% 0 0 0 0 0 0 0 0 0 (64,328,652)
$0 (316,417,889) 0 (159,143,988) 2,078,918 (153,113,393) 2,078,918 (363,137,711) 2,078,918 1,678,918 2,078,918
Unleveraged Net Cash Flow $0 (490,485,775) 163,538,761 (133,837,976) 58,696,016 (99,837,618) 83,989,914 (306,493,923) 229,358,694 95,926,275 1,321,765,077
Construction Loan Proceeds $0 189,850,733 0 95,486,393 0 93,115,386 0 0 0 0 0
Debt Service and Mortgage Payoff 0 0 (15,024,914) (15,024,914) (123,967,147) (18,932,115) (145,930,371) (24,571,331) (24,571,331) (395,825,748)
Equity 126,567,155 0 63,657,595 0 59,998,007 0 0 0 0 0
Leveraged Net Cash Flow (174,067,886) 163,538,761 10,281,098 43,671,102 (70,691,372) 65,057,799 (452,424,294) 204,787,363 71,354,944 925,939,329
Net Present Value 0.1 $257,915,184.41
Loan to Value Ratio (LVR)
Unleveraged IRR Before Taxes 13% Current Site Value (start of Year 0) $208,181,176
Leveraged IRR Before Taxes 31% Projected Site Value (end of Year 10) 1,286,573,031
Year-by-Year Cumulative Absorption
Total Buildout 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Project Buildout by Development Units 0.80
Rental Housing 1,197 0 0 596 596 1,197 1,197 1,197 1,197 1,197 1,197
For-Sale Housing 1,325 435 435 435 435 435 435 1,324 1,324 1,324 1,324
Affordable Rental Housing 299 0 0 149 149 299 299 299 299 299 299
104,851 23,716 23,716 83,716 83,716 104,851 104,851 104,851 104,851 104,851 104,851
60,000 0 0 30,000 30,000 50,000 50,000 60,000 60,000 60,000 60,000
Live Work Space 132 16 16 89 89 117 117 132 132 132 132
Student Housing 24,740 0 0 24,740 24,740 24,740 24,740 24,740 24,740 24,740 24,740
Distribution 150,755 1 1 1 1 1 1 1 1 1 1
Light Manufacturing 44,517 0 0 0 0 24,000 24,000 44,517 44,517 44,517 44,517
2,370 345 345 1,124 1,124 1,730 1,730 2,370 2,370 2,370 2,370
Bridge 6,000 0 0 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Bike Path 56,700 0 0 56,700 56,700 56,700 56,700 56,700 56,700 56,700 56,700
930,000 0 0 93,000 93,000 232,500 232,500 930,000 930,000 930,000 930,000
Project Buildout by Area
Rental Housing 1,281,269 0 0 637,958 637,958 1,281,269 1,281,269 1,281,269 1,281,269 1,281,269 1,281,269
For-Sale Housing 1,515,800 497,640 497,640 497,640 497,640 497,640 497,640 1,514,656 1,514,656 1,514,656 1,514,656
Affordable Rental Housing 320,050 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070
104,851 23,716 23,716 83,716 83,716 104,851 104,851 104,851 104,851 104,851 104,851
60,000 0 0 30,000 30,000 50,000 50,000 60,000 60,000 60,000 60,000
Live Work Space 594,000 72,000 72,000 400,500 400,500 526,500 526,500 594,000 594,000 594,000 594,000
Student Housing 24,740 0 0 24,740 24,740 24,740 24,740 24,740 24,740 24,740 24,740
150,755 150,755 150,755 150,755 150,755 150,755 150,755 150,755 150,755 150,755 150,755
Light Manufactuing 44,517 0 0 0 0 24,000 24,000 44,517 44,517 44,517 44,517
379,200 55,200 55,200 179,840 179,840 276,800 276,800 379,200 379,200 379,200 379,200
930,000 0 0 93,000 93,000 232,500 232,500 930,000 930,000 930,000 930,000
5405181
% of Total
Rental Housing per unit 130,000
For-Sale Housing per unit 225,000 59,998,007
Affordable Rental Housing per unit 115,000 190,224,751
per sqft 154 32%
per sqft 185
per sqft 235 60%
Student Housing per sqft 154 $3,819,856
per sqft 118
Light Manufacturing per sqft 118 $5,253,006
per unit 13,272
per sqft 70
Infrastructure Costs
Roads per sqft 80 $3,315,200.00
Demolition per sqft 6 $32,431,088.40
Sidewalk per sqft 10 $305,760.00
Bridge per sqft 484 $2,904,000.00
Bike Path per sqft 15 $850,500.00 14,552,423
Acquisition Taxes and Fees $62,454,353 250,000
Total Infrastructure Costs $102,260,901 9%
Total Development Costs $786,496,484 100%
67,579,920
Total 786,496,484
Large Distribution Solar and Wind Grant Program
Subtotal
LIHTC 53,027,497
NMTC
Public Subsidies (total, if any)
Public Private
Structured Parking $14,379,264
Landscaping $65,100,000
Live Work Space $31,020 Construction and Long Term Loan Proceeds 468,693,807
Distribution $17,789,090
250,222,757
Market-rate Retail $11,100,000 Financing Sources (total)
$34,385,000 Developer
Office/Commercial $16,188,994 Subtotal
Market-rate
$155,610,000 Equity Sources (total)
$298,125,000 Private Equity
Structured Parking
Landscaping
Total
3. Unit Development and Infrastructure Costs 4. Equity and Financing Sources
Development Costs Unit Cost Total Costs Amount
Structured Parking
Landscaping
Market-rate
Office/Commercial
Market-rate Retail
Distribution
Total Costs of Sale
Total Development Costs
2. Multiyear Development Program
Market-rate
Office/Commercial
Market Rate Retail
Live Work Space
Structured Parking
Park/Landscaping
Other Infrastructure
Total Development Costs
Net Operating Income
Total Net Operating Income
Office/Commercial
Market-rate Retail
Phase IV
Office/Commercial
Market-rate Retail
Distribution
Structured Parking