a market conditions and project evaluation summary of - Georgia ...
a market conditions and project evaluation summary of - Georgia ...
a market conditions and project evaluation summary of - Georgia ...
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Allen Wilson Phase III, Decatur, GA; Market Study<br />
The two newest properties in the <strong>market</strong> are Allen Wilson<br />
I, the Subject’s sister property, <strong>and</strong> Retreat at Edgewood.<br />
Like the Subject, Allen Wilson I <strong>of</strong>fers LIHTC units that<br />
operate with an additional <strong>project</strong> based subsidy.<br />
According to management, all 40 units were leased within<br />
two weeks. The Decatur Housing Authority has a 2,500<br />
household waiting list, <strong>and</strong> all households are pre-qualified<br />
to live at the Subject. Retreat at Edgewood <strong>of</strong>fers 100<br />
LIHTC units that operate without an additional subsidy.<br />
Management reported that the property was fully leased<br />
within five months, for an absorption pace <strong>of</strong> 20 units per<br />
month. We have conservatively estimated that the Subject<br />
will lease approximately 25 units per month. At this pace<br />
the Subject will reach a stabilized occupancy <strong>of</strong> 93 percent<br />
within two months.<br />
9. Overall Conclusion: Based upon our <strong>market</strong> research, demographic calculations<br />
<strong>and</strong> analysis, we believe there is ample dem<strong>and</strong> for the<br />
Subject property as proposed. The Subject will be<br />
replacement public housing for the existing Allen Wilson<br />
Terrace, which will be demolished. A total <strong>of</strong> nine<br />
buildings (56 units) at the existing Allen Wilson Terrace<br />
will remain occupied until the completion <strong>of</strong> Allen Wilson<br />
Phase III. Of these occupied units, 21 are seniors who will<br />
relocate to Phase II <strong>and</strong> 35 are families who will relocate to<br />
the Subject (Phase III). After all <strong>of</strong> the current residents<br />
have moved to Phase II <strong>and</strong> the Subject, these nine<br />
buildings will be demolished. As proposed, the Subject<br />
will contain 71 units. Tenants for the remaining 15 units at<br />
the Subject will likely come from the housing authority’s<br />
waiting list, which contains 2,500 households, all <strong>of</strong> which<br />
have been pre-qualified to live at the Subject. Three <strong>of</strong> the<br />
LIHTC comparables <strong>of</strong>fer subsidized units, Allen Wilson I,<br />
Auburn Glenn, <strong>and</strong> Villages <strong>of</strong> East Lake I <strong>and</strong> II. None <strong>of</strong><br />
the comparables have any vacant subsidized units, further<br />
illustrating a need for additional subsidized units in the<br />
<strong>market</strong>.<br />
Overall the local affordable housing <strong>market</strong>, <strong>and</strong> the<br />
subsidized housing <strong>market</strong> in particular, appear to be<br />
performing well. Given the low subsidized vacancy rate,<br />
the significant waiting list for public housing, <strong>and</strong> the<br />
relocation plan in place for the current residents <strong>of</strong> Allen<br />
Wilson Terrace, we believe that the Subject will be<br />
successful in the local <strong>market</strong> as proposed.<br />
Novogradac & Company LLP 7
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