Fort Walton Beach Council agenda — 03-23-2010 Special-Soundside Develp. Project — reading text

quality with leasing agents varied in their attentiveness to prospective tenants. Rents have not changed since April 2009, but the property does offer promotional rents that are temporary in nature. Income -Restricted Properties: Choctaw Village is part of the Section 8 program. It is oriented to family households earning 30% of Area Median Income or less. At the time of survey, the property was operating at 94% occupancy with no concessions being offered. The property includes the cost of water, sewer, and trash utilities in the base rents. Rental rates at the property averaged 86% of Fair Market Rent ( FMR) per the Florida Housing Data Clearinghouse. Value Tech Realty Services, Inc. www.gotovalue.com Page 53 68-  Sound Side Apartments Market Supply and Demand Analysis Heather Glenn is a 168 -unit, tax -credit apartment community oriented to persons earning 60% AMI or less. Built in 2004, the property is in good overall condition. At the time of survey, 95% of units were occupied. The property is offering reduced rents on two, three, and four bedroom units. Colony House is a market rate property whose rents are calibrated to compete with the income -restricted market. Occupancy was reported at 94 %, which is historically high. Management attributes this to an increase in military rentals as part of the Army EOD training at Eglin AFB. Currently, the property is offering a $ 299 move -in- special on all two bedroom /one bath units. Falcon House was built in 1989 and offers 82 units. The property is considered market rate, but rents are calibrated to compete with the income restricted market. Occupancy is at 97 %, which is above typically operating levels. Management believes that current occupancy levels reflect the rent concessions offered. Jaymar was built in 1987 and offers 66 units. The property is considered market rate, but rents are calibrated to compete with the income restricted market. At the time of survey, the property was 82% occupied. Management indicated that occupancy is at historic lows and attributes this to the economy. Golf Links was built in 1972 and offers 97 units. The property is considered market rate, but rents are calibrated to compete with the income restricted market. The property is 70% occupied, which is up from 52% in October 2009 when management was replaced. At this time, the property is not scheduling any renovations or remodeling. Holly Sands was built in 1986 and offers 122 units. The property is considered market rate, but rents are calibrated to compete with the income restricted market. The property was 90% occupied at the time of survey. Management attributes affordable rents and good marketing strategies to the property' s success. Rent specials are currently offered only on the studio units and the one bedroom units. Royale Apartments was built in 1974 and offers 99 units. The property is considered market rate, but rents are calibrated to compete with the income restricted market. Occupancy is considered low at 84 %, with management citing March through October as stable months. In addition, deployment patterns of Eglin AFB have contributed to lower occupancy levels, as the property tenant mix primarily consists of military service personnel. Currently, the property is offering free rent in January. Captain' s Quarters was built in 1970 and offers 80 units. The property is considered market rate, but rents are calibrated to compete with the income restricted market. The property is 88% occupied. This is down by about 6% from levels achieved in October. Proposed Additions to Supply Discussions with planning and development officials in Fort Walton Beach have revealed that no rent/ income -restricted or market -rate multifamily properties are planned or under construction in the defined market area. Page 54 Value Tech Realty Services, Inc. www.gotovalue.com 69-  Sound Sitle Apartments Market Supply and Demand Analysis Supply Summary: Units Competitive with Subject The following table summarizes competitive demand under various income scenarios: SUMMARY OF COMPETITIVE SUPPLY One -Bed Two -Bed Three -Bed Four -Bed Income Orientation Property Units Units Units Units Total PROPERTIES ORIENTED TO THE LOW INCOME MARKET - Section 8 Low Income Choctaw Village 0 32 16 0 48 Low Income Current Supply) Total 0 32 16 0 48 Low Income Future Su 1 None 0 0 0 0 0 PROPERTIES ORIENTED TO THE MODERATE INCOME MARKET - 60% and 80% AMI Income Restricted Heather Glenn 39 72 32 25 168 Market Colony House 55 83 0 0 138 Market Falcon House 39 38 4 0 81 Market Jaymar 22 44 0 0 66 Market Golf Links 17 70 10 0 97 Market Holly Sands 114 8 0 0 122 Market Royale 39 60 0 0 99 Market Captain' s Quarters 36 44 0 0 80 Market Chez Elan 109 145 13 0 267 Market Madison Parc 0 108 0 0 108 Market Cayo Grande F W B 60 108 0 0 168 Income Restricted/ Market Current Supply) Total 530 780 59 25 1, 394 Income Restricted/ Market Future Supply) None 0 0 0 0 0 AsAs illustrated,illustrated, thethe subjectsubject isis competitivecompetitive withwith 4848 lowlow - - incomeincome ( ( SectionSection 8)8) unitsunits andand 1,1, 394394 incomeincome restricted/restricted/ marketmarket - - raterate ( ( 60% 60% andand 80% 80% AMI)AMI) units.units. AlthoughAlthough properties properties likelike ChezChez Elan,Elan, MadisonMadison Parc,Parc, andand CayoCayo Grande Grande — — FortFort WaltonWalton BeachBeach werewere developed developed withwith thethe intention intention ofof servingserving moderatemoderate toto highhigh incomeincome households,households, rentsrents atat allall threethree ofof thesethese propertiesproperties areare considered considered affordableaffordable underunder thethe 60% 60% andand 80% 80% AMIAMI incomeincome limitations.limitations. Therefore,Therefore, allall ofof thethe marketmarket - - raterate propertiesproperties inin thethe subjectsubject marketmarket havehave beenbeen includedincluded inin thethe supplysupply analysisanalysis underunder thethe incomeincome - - restrictedrestricted scenario.scenario. ValueValue TechTech RealtyRealty Services,Services, Inc.Inc. www.www. gotovalue.gotovalue. comcom PagePage SSSS 70-70-  Sound Side Apartments Market Supply and Demand Analysis Supply and Demand Analysis The relationship between supply and demand is presented below: 2011 SUPPLY AND DEMAND ANALYSIS —LOW INCOME SECTION 8 One -Bedroom Two -Bedroom Three -Bedroom Total Potential Rental Demand 534 1, 157 170 1, 860 32 16 0 48 Competitive Current Supply Competitive Future Supply 0 0 0 0 32 16 0 48 Total Supply Excess Demand 502 1, 141 170 1, 812 Capture Rate 59.3% 59. 3% 59.3% 59. 3% Total Supportable 298 677 101 1, 075 Subject 17 18 15 50 Excess demand exists for