a market conditions and project evaluation summary of - Georgia ...

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Allen Wilson Phase III, Decatur, GA; Market Study developments or given Section 8 vouchers while construction takes place. Because the Subject will maintain its subsidy, we expect the majority of the current tenants to return to the Subject following construction. Given the low LIHTC and subsidized vacancy rates in the local market, we believe that the Subject will maintain a stabilized vacancy rate of five percent or less following construction. 7. Properties Under Construction and Proposed There is one family property under construction or proposed in the PMA. Retreat at Edgewood II 1. Address: 37 Hutchinson Street 2. Name of Owner: Columbia Residential 3. Unit configuration, number of units and proposed rents: Retreat at Edgewood II Number of Asking Unit Type Units 50% AMI Size Rent 1BR 3 753 $487 3BR 1 60% AMI 1,500 $613 1BR 25 753 $584 3BR 9 1,500 $703 1BR Market Rate 2 753 $725 Total 40 4. Estimated Date of Market Entry: The development was allocated in 2010 and is currently under construction. It should be noted that Allen Wilson Phase II, the second phase of the Subject, was allocated tax credits in 2010 and is currently under construction. Because this property will target senior tenants, its units will not directly compete with the Subject. 8. Rental Advantage The following table illustrates the Subject’s similarity to the comparable properties. We inform the reader that other users of this document may underwrite the LIHTC rents to a different standard than contained in this report Novogradac & Company, LLP 95
Allen Wilson Phase III, Decatur, GA; Market Study Similarity Matrix Property Unit Age / Overall # Property Name Type Amenities Features Location Condition Unit Size Comparison 1 Allen Wilson Terrace Phase I LIHTC/PBRA Similar Similar Similar Similar Slightly Similar 0 2 Auburn Glenn LIHTC/PBRA/Market Superior Superior Inferior Inferior Similar 5 Slightly Slightly 3 Columbia Village LIHTC Superior Inferior Inferior Slightly Inferior Inferior -20 4 Retreat At Edgewood LIHTC Superior Superior Inferior Similar Superior 25 5 Robins Landing Apartments LIHTC Superior Superior Inferior Inferior Similar 0 Slightly Slightly 6 Archstone Decatur Crossing Market Superior Superior Inferior Inferior Superior 10 7 Ice House Lofts Market Superior Superior Similar Slightly Similar Superior 30 8 Jackson Square Market Superior Superior Inferior Inferior Superior 15 9 Villages Of East Lake I And II PBRA/Market Superior Superior Inferior Inferior Superior 10 *Inferior=-10, slightly inferior=-5, similar=0, slightly superior=5, superior=10. The rental rates at the LIHTC properties are compared to the Subject’s proposed 50 and 60 percent AMI rents in the following table. The Subject offers 100 percent public housing subsidy; therefore, all tenants pay 30 percent of their income towards the monthly rent. LIHTC Rent Comparison - @50% Property Name 1BR 2BR 3BR Allen Wilson Phase III (Subject) BOI BOI BOI LIHTC Maximum (Net) $597 $712 $817 Columbia Village N/Ap $615 $725 Retreat At Edgewood $612 $696 $765 Average (excluding Subject) $612 $683 $755 LIHTC Rent Comparison - @60% Property Name 1BR 2BR 3BR Allen Wilson Phase III (Subject) BOI BOI BOI LIHTC Maximum (Net) $727 $868 $997 Robins Landing Apartments $516 $565-$605 $743 Columbia Village N/Ap $675 $775 Auburn Glenn $675 $773 $852 Retreat At Edgewood $612 $696 $765 Average (excluding Subject) $604 $669 $778 The Subject will offer 100 percent public housing assistance and therefore all tenants will pay 30 percent of their income towards the monthly rent. The previous tables include the LIHTC unassisted rents at the comparable properties. Comparables do not appear to be achieving the maximum allowable rents at the 50 and 60 percent AMI levels. As new construction, the Subject will be most similar to Retreat at Edgewood and Auburn Glenn in terms of age/condition. However, the Subject will offer a generally inferior amenities package when compared to both comparables. The Subject’s downtown Decatur location will give it a locational advantage over the majority of the comparables. All LIHTC comparables are performing well with vacancy rates of 5.9 percent or less, indicating that their rents are achievable. We believe that the Subject is feasible as proposed, particularly with its public housing subsidy, which is in high demand among Novogradac & Company, LLP 96
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A MARKET CONDITIONS AND PROJECT EVA
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Mr. Douglas S. Faust Executive Dire
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author or the firm with which he or
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TABLE OF CONTENTS A. EXECUTIVE SUMM
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EXECUTIVE SUMMARY AND CONCLUSIONS A
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Allen Wilson Phase III, Decatur, GA
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B. PROJECT DESCRIPTION
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Comp # Subject Effective Rent Date
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C. SITE EVALUATION
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Novogradac & Company LLP 21 Allen W
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D. MARKET AREA
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Comparable Properties Allen Wilson
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F. EMPLOYMENT TRENDS
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PROJECT-SPECIFIC DEMAND ANALYSIS
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Page 63 and 64: Allen Wilson Phase III, Decatur, GA
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Page 71 and 72: Allen Wilson III, Decatur, GA; Mark
Page 73 and 74: Comparable Rental Property Map Alle
Page 75 and 76: SUMMARY MATRIX Comp # Project Dista
Page 77 and 78: Effective Rent Date 5/23/2012 Locat
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Page 81 and 82: Auburn Glenn, continued Unit Mix (f
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Page 95 and 96: Archstone Decatur Crossing (fka Gra
Page 97 and 98: Ice House Lofts, continued Amenitie
Page 101 and 102: Jackson Square, continued Trend Rep
Page 103 and 104: Villages Of East Lake I And II, con
Page 105 and 106: Villages Of East Lake I And II, con
Page 107 and 108: 2. The following information is pro
Page 111 and 112: Allen Wilson Phase III Allen Wilson
Page 113: Allen Wilson Phase III, Decatur, GA
Page 133 and 134: I. Education STATEMENT OF PROFESSIO
Page 135 and 136: H. Blair Kincer Qualifications Page
Page 137: STATEMENT OF PROFESSIONAL QUALIFICA
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