Marketing & Management plan

Underfloor heating 

Underfloor heating's cost of installing varies by boiler quality and brand, also pipeline's type. But, usually, it takes around $20 per square feet with moderate brand and pipe type. In contrast, central air and heat system in the US is comparably cheaper than underfloor heating. It might take from $0.29 per sf to $5 per sf. At least, underfloor heating cost for installing is 4 times more expensive than central air heating. 

1100 Trinity Mills heating system cost for installing

- underfloor : $20*220,000=$4,400,000

- Central air : $5*220,000=$1,100,000

Buyer charge for underfloor heating

-Cost for heating system increases $15 per sf

  --> 3,300,000(4,400,000-1,100,000)/220,000=$15

Marketing Plan for underfloor heating

There are two ways to cover the cost of installing underfloor heating. One of them is sharing the cost between a developer and a buyer. Each part could charge $7.5 per sf. Then the price of condos would increase from $125 per sf to 132.5 per sf. And, in this assumption, this project still has feasibility if the occupancy rate is over 90%. 

  - The total amount money that the developer can earn from this development is ($125x110,000)+($132.5*110,000)=$28,325,000

  - Total construction cost with underfloor heating is $22,300,000+3,300,000=$25,600,000

  - 25,600,000/28,325,000=0.9

The other way is giving options to a buyer whether they buy a condo with underfloor heating system or not. If they want to buy the condo which has underfloor heating system, they should pay $15 more per sf . 

Green Roofing 

Estimation for green roofing has very wide rage of price. I assume 5,000 sf of green zone on rooftop. And, the type of green roofing is the Paks type. According to the estimation calculator of Green Roof Blocks, the total price for green roof is $72,119.50.

1100 Trinity Mills green roofing cost for installing

5,000sqft = $72,119.50

Marketing plan for green roofing

A developer could rent this green roofing area to residents for urban agriculture uses. If the developer rent this $3 per sf, simply payback year is 5 years. And, this green roofing area could be maintained by Home Owners Association in 1100 Trinity Mills after 5 year. 

LED Lamp's marketing plan

The developer could hand over the decision to buyers about installing LED lamps. If they want to have LED lamp in their house, buyers should pay additional charge. For this,  the developer has to explain about benefits of LED lighting and short payback period. And, the developer should install LED lamps in public space. 

Management Plan

1100 Trinity Mills will be managed by HOA(Home Owners Association). HOA will represent 1100 Trinity Mills after this condo building is built.

HOA has right to correct monthly fee for management from owners. A owner might pay around $150 to $250 per unit. Annual budget for 1100 Trinity Mills is around $400,000. It would be used for paying salary of a manager. And, also, it will cover cost of maintaing green roof and LED lamp in public zone in 1100 Trinity Mills. 

And, 10% of the annual budge will be reserved for improvement or remodeling condos in the future.    

Sustainable feature #3 - LED lamp

When I came to the US in three years ago, I found some differences in residential culture between Korea and the US. One of them is lighting. Korean people likes bright lighting and day light bulb in house. Thus, I changed all light bulb to energy efficient day light bulbs. 

LED light bulbs

1100 Trinity Mills is advertising that their condo is luxury home. I think that it is needed some differential factor to differentiate their condo as a luxury house. An LED lamp could do this role in condo. 

The LED lamp is five times more expensive than Fluorescent lamp. But, it is worth to adopt.

The LED light bulb is a solid state lamp that uses light-emitting diodes(LEDs) as source of light. This light has huge benefit to save energy costs.That's why currently many new condos and houses use LED lighting. According to the US Department of Housing and Urban Development, a condo property with 80 to 125 units could save between $6,000 and $12,000 annually with LED lamps. The property could also reduce the CO2 emissions by 1.3 million lbs over the life of the LED lamp. 

 Furthermore, the cost of LED lamp is decreasing. According to LED savingsolutions.com, "given that the cost of the LEDs is increasingly competitive, the payback for owners often comes inside of two year. So an investment that pays for itself in two years that then has a life of 6 or 8 more after the payback generates a very favorable return on investment of 50% or more year over year. 

Benefits

- great energy saving 

- reducing CO2 emission

- favorable return on investment 

- bring an image of luxury condo

*5 times more expensive than other bulbs. But, over 2 year, it could be returned by saving energy costs.  

Sustainable feature #2 - Green Roof

Green Roof

I want to suggest green roofing to 1100 Trinity Mills. Green roofing could bring big interests from public because green roofing is not common in Texas. And, especially, I want to make this green area which can raise vegetables because usually Asian'd like to raise vegetables in their own yard. A developer can rent this green area to residents. It also could be some model to make profit. By renting green area of roof for urban agriculture, additional construction cost for green roofing would be covered. 

Green roofing has many benefits. First of all, it could reduce energy costs. It reduce energy which could be used for air conditioning. Green roof works like a barrier to thermal transfer of the sun's energy through the roof. It could cool the air above the roof and absorb incoming solar radiation. It is perfectly fitted to crazy summer in Texas 

And, also it has a function to reduce noise. Green roof system could be a sound insulation barrier which absorb sound waves. 1100 Trinity Mills is right next to highway. Thus, sound barrier is very important to comfort life in condos.

Rice planting on roof top in Roppongi Hill in Tokyo

One of the best green roofing example is Roppongi Hill in Tokyo. They are even planting rice in rooftop garden. Every year, they have a event to plant new rice tree in rooftop. The company invites children and their family for this event. It is very good marketing point.   

Benefits

- Reduce energy costs

- sound barrier

- opportunity for urban agriculture

- good marketing tool

* It need additional funding to construct green roofing. But, by renting the green area for urban agriculture, the cost could be covered. And, recently, government give some incentive for this kind of sustainable features.  

Sustainable feature #1 - Ondol/Underfloor Heating

Ondol

Have you heard about Ondol? This is the Korean traditional heating system. We also call it Gudeul. This is simply implying underfloor heating. This uses direct heat transfer from burned wood smoke to the underside of a thick masonry floor. Korea still uses the innovated modern Ondol system to all kinds of residential buildings. Thus, Korea has very outstanding technique about a boiler for underfloor heating system. I want to adopt this boiler to 1100 trinity mills as sustainable feature because it can save energy and make better air quality.

Installing pipe lines under floor

Pave the pipe line

Korean common room with underfloor heating system

Modern underfloor heating system works by either hot water or electric heating. I want to adopt hot water heating system which are very popular in Korea. The water running under floor in pipe line heat the room.

Underfloor heating system has a lot of benefits to use in condos. First of all, it is energy efficiency. We can easily think this is more efficient than air conditioning system in the US because the heating energy from floor hot air rises. And, it can control the temperature by room and zone. It can save energy around 15% to 40%. 

Underfloor Heating System

And, it is good to control temperature individually by personal preference.  

This system has a positive effect on indoor air quality because it is essential to facilitate cold flooring materials such as concrete, tile, slate, terrazzo to adopt the underfloor heating system. Thus, this underfloor heating system could reduce the moisture content of a room. 

But, maintaining and installing is more expensive than other heating system because of installing pipeline under floor. 

Benefits

-save energy(efficiency)

-zoned heating control

-Asian preference

-air quality

* but installing and repairing price could be higher than other heating system.

Sustainable Features for 1100 Trinity Mills

1100 Trinity Mills has feasibility to develop and make profit. But, it is not enough to make this project to be seen as outstanding condo. I determined some sustainable features to make this condo more attractive. For efficiency and oriental concept for Asian customer, I added some rare boiler system in the US. This is underfloor heating.  This system can make it possible zoned heating control. I also adopt very charming sustainable feature which can bring interests from public. This is a green roof. And, usually, Korean people like bright lighting. Thus, I adopt LED lighting.

Sustainable features

- Underfloor heating

- Green roof

- LED lighting