AAF Total Build Cost - $2.4 Billion

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Per the Orlando Business Journal; & the South Florida Business Journal

http://www.bizjournals.com/orlando/morning_call/2013/09/all-aboard-floridas-train-real.html
http://www.bizjournals.com/southflorida/news/2013/09/11/all-aboard-florida-rail-and-real.html?page=all

Exclusive: All Aboard Florida's train, real estate build cost is $2.4B

Oscar Pedro Musibay
Reporter-South Florida Business Journal

Passenger rail company All Aboard Florida expects to spend a total of about $2.4 billion to connect Miami to Orlando by private train and to develop the real estate along the track.
That total includes about $320 million spent on real estate development alone, according to sources who asked not to be named. The commercial development is expected to include offices, retail, residences and entertainment.
Officials from All Aboard Florida did not provide comment for this story. The train would run mostly on existing FEC train tracks, with stops in Miami, Fort Lauderdale, West Palm Beach and the Orlando airport.
The Miami station alone, which All Aboard has characterized as a Grand Central-like facility, is estimated to have a little more than 1 million square feet of development at a cost of $325 million. The projected rent is $35 million, according to sources, who asked not to be named.
These numbers are important because All Aboard has kept detailed information about the project under tight wraps. This information is exclusive to the Business Journal.
The real estate piece is particularly important to All Aboard-parent Florida East Coast Industries, which expects to generate revenue, in part, by leveraging its expertise in developing and managing commercial real estate. FECI also has separate companies that plans to leverage the rail to generate additional revenue. FECI subsidiaries will offer various services including locating cell phone towers along the right of way; and third-party management to government and private companies with land and resources on and around the right-of-way.
The Miami station has also recently been in the news because of its proximity to two parcels in Overtown that All Aboard is seeking to buy from a Miami community redevelopment agency. Company officials have said they plan to incorporate the Overtown parcels into the Miami station.
In all, FECI expects to inject $125 million of its own cash into the rail and real estate development, excluding the Overtown project.
About $600 million is being offered as preferred equity, according to sources, which asked not to be identified.
All Aboard officials will need about $150 million in working capital to make the train go, according to sources.
It's clear from the Business Journal's sourcing that All Aboard expects to leverage several resources to cover its costs:
• $1.4 billion in debt is needed to finance operations
• $300 million in debt financing is tied to the real estate
• $600 million will come from preferred equity
• $125 million will be FECI cash equity
All Aboard has applied for a transportation-related federal loan to help cover the $1.5 billion cost of the upgrade to the rail infrastructure.