New Documents Unveil Key Facts About Fane Tower Project — Taller and More Units
Wednesday, November 27, 2019
Jason Fane’s project is alive and now moving forward. Documents submitted to the City of Providence in support of the project's requests for millions in tax breaks under the city’s tax stabilization program unveil the financial assumptions behind the development.
Fane’s team dropped off a non-returnable check to the city of Providence for $205,575.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTFane’s 46-story ambitious project is aggressively moving forward and has added an important strategic partner.
The documents for the cost estimates were prepared by Gilbane — one of the largest privately held, family-owned construction and real estate development firms in America.
The controversial project has repeatedly delayed by Providence Mayor Jorge Elorza and has drawn the ire of the Providence Preservation Society.
In contrast, trade unions have been strongly pushing for the tower, which is estimated to create more than 1,200 jobs over the course of the project.
Taller than Previously Proposed, Nearly 20% Increase in Units
In November of 2018, the Fane team provided GoLocal with detailed numbers to the project — specifically, the project a year ago was estimated to have 420 units "plus or minus" and would be 495 feet tall.
Documents submitted to the city on Tuesday unveil that the project is now 550 feet tall and has grown to 500 units -- a height difference of 55 feet.
This represents an 11 percent increase in height and nearly a 20 percent increase in the number of residential units.
“The Fane Tower will be approximately 550 feet tall and include about 500 residential apartments ranging from studios up to large four-bedroom family apartments and penthouses. Approximately 330 parking spaces are anticipated, though the specific number of units and precise apartment layouts have not yet been determined. It is expected that the building will have almost 14,000 square feet of street level retail space on the ground floor, and more than 500,000 gross square feet in the residential tower,” according to Fane’s submission to the City.
The number of proposed parking spots would also increase from 300 to 330 spots.
“The City of Providence amended the zoning ordinance allowing the project to be built to the maximum height of 600 feet. The State Historic Preservation Officer concluded that the project will not diminish or otherwise adversely affect the historic character, significance, integrity or National Register eligibility of any of the listed properties in the project's area of potential effects,” states Fane’s application.
Financials: Cost, Revenue and a Lot of Concrete
According to construction cost estimates prepared by Gilbane — the cost to construct the 550-foot tower is now $205,575,467.
The per-unit cost is $284,393.
The biggest cost of the project is the cost of concrete that is expected to cost $51,821,706.
Fane’s project asserts that the Tower will be completed and leasing in 2024.
The estimated first-year revenue from rents is expected to exceed $25 million with a net operating income of more than $19.5 million.
By the year 2043, rental income will jump to more than $44 million and net operating income is estimated to exceed $25 million.
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- New Documents Unveil Key Facts About Fane Tower Project — Taller and More Units
