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

CONCLUDED MARKET RENTS Unit Type Unit Mix Market Rent One Bed/ One Bath 68 875 Two Bed/ Two Bath 72 1, 100 Three Bed/ Two Bath 48 1,1, 275275 FourFour Bed/Bed/ TwoTwo BathBath 1212 1, 400 Total/Total/ WeightWeight AverageAverage 200 1, 084 Page 62 Value Tech Realty Services, Inc. www.gotovalue. com 77_  Sound Side Apartments Market Supply and Demand Analysis The conclusions shown above were drawn from the Rent Comparables as follows: SUBJECT RENT CONCLUSIONS IN COMPARISON TO ADJUSTED COMPARABLE RENTS Comparable Low Comparable High Subject Rent Apartment Unit Type end of Range End of Range Central 60% Range Conclusion One Bed/ One Bath 754 922 787 to $ 888 875 Two Bed/ Two Bath 870 1, 226 941 to $ 1155 1, 100 Three Bed/ Two Bath 1, 009 1, 365 1080 to $ 1294 1, 275 Four Bed/ Two Bath 1, 126 1, 483 1198 to $ 1412 1, 400 As an income restricted community, the rental rates must fall within the affordability thresholds of the tenants. As presented, restricted rents are below market rents. Therefore, the concluded rental rates for the subject will be based on. the restricted rents. The concluded rates for the subject are as follows: CONCLUDED RESTRICTED RENTS Income Units Percent Gross Utility Net Unit' Fype Orientation Unit Mix of Total Rent Allowance Rent One Bed/ One Bath Section 8 17 8. 5% 729 N/ A 729 One Bed/ One Bath 60% AMI 24 11. 9% 745 123 622 One Bed/ One Bath 80% AMI 27 13. 6% 994 123 871 Two Bed/ Two Bath Section 8 18 9. 0% 820 N/ A 820 Two Bed/ Two Bath 60% AMI 25 12. 6% 895 148 747 Two Bed/ Two Bath 80% AMI 29 14. 4% 1, 194 148 1, 046 Three Bed/ Two Bath Section 8 12 6. 0% 1, 259 N/ A 1, 259 Three Bed/ Two Bath 60% AMI 17 8. 4% 1, 034 194 840 Three Bed/ Two Bath 80% AMI 19 9. 6% 1, 379 194 1, 185 Four Bed/ Two Bath Section 8 3 1. 5% 1, 244 N/ A 1, 244 Four Bed/ Two Bath 60% AMI 4 2. 1% 1, 153 244 909 Four Bed/ Two Bath 80% AMI 5 2. 4% 1, 538 244 1, 294 Total / Weighted Average 200 100. 0% 1, 019 117 902 A comparison of restricted rents to market rents is provided below. RESTRICTED RENT AS A PERCENTAGE OF MARKET Restricted as a % Apartment Unit Type Market Rent Restricted Rent* of Market One Bed/ One Bath 875 871 99.5% Two Bed/ Two Bath 1, 100 1, 046 95. 1% Three Bed / Two Bath 1, 275 1, 259 98. 7% Four Bed/ Two Bath 1, 400 1, 294 92. 4% Totals/ Averages 1, 084 902 83. 2% Note: * Restricted rents illustrated above are representative of the highest restricted rent per unit type. Value Tech Realty Services, Inc. www.golovalue. com Page 63 78-  Sound Sirle Apartments Market Supply and Demand Analysis The net rents shown above reflect utility allowances for electric heating, air conditioning, electric cooking, other electricity, electric heated water, water, and sewer. This is illustrated in the tables below. UTILITY ALLOWANCES Paid By One Bed Two Bed Three Bed Four Bed Utility Costs Utilities - Electric Heating Tenant 12. 00 14. 00 17. 00 20.00 Utilities - Air Conditioning Tenant 17. 00 21. 00 28. 00 35. 00 Utilities - Electric Cooking Tenant 10. 00 12. 00 13. 00 14. 00 Utilities - Other Electric Tenant 31. 00 34.00 39.00 44.00 Utilities - Electric Heated Water Tenant 17. 00 24.00 37. 00 52. 00 Utilities - Water Tenant 9. 00 11. 00 17. 00 25. 00 Utilities - Sewer Tenant 27. 00 32.00 43. 00 54.00 Total Tenant Paid Utilities 123. 00 148. 00 194.00 244.00 Other Utility Costs Utilities - Trash Collection Landlord 16. 00 16. 00 16. 00 16. 00 Source: Fort Walton Beach Housing Authority, 07/ 2009. The utility allowances for the restricted scenario reflects utility data provided by the local housing authority. Allowances for tenant -furnished utilities and other services provided by the Fort Walton Beach Housing Authority were illustrated in the Utilities in Rent category. Rental Rate Conclusion - Summary Based on the above analysis, the rental rate conclusions for the subject are as follows: RENTAL RATE CONCLUSION Income Unit Units Percent Gross Utility Net Monthly Unit Type Orientation Mix of Total Rent Allowance Rent Net Annual One Bed/ One Bath Section 8 17 8. 5% 729 N/ A 729 12, 393 148, 716 One Bed/ One Bath 60% AMI 24 11. 9% 745 123 622 14, 804 177,643 One Bed/ One Bath 80% AMI 27 13. 6% 994 123 871 23, 691 284,294 Two Bed/ Two Bath Section 8 18 9. 0% 820 N/ A 820 14, 760 177, 120 Two Bed/ Two Bath 60% AMI 25 12. 6% 895 148 747 18, 824 225,225, 893893 TwoTwo Bed/Bed/ TwoTwo BathBath 80% 80% AMIAMI 2929 14. 4% 1, 194 148 1, 046 30, 125 361, 498 Three Bed/ Two Bath Section 8 12 6. 0% 1, 259 N/ A 1, 259 15, 108 181, 296 Three Bed/ Two Bath 60% AMI 17 8. 4% 1, 034 194 840 1$ 14, 112 169, 344 Three Bed/ Two Bath 80% AM[ 19 9. 6% 1, 379 194 1, 185 22,752 273, 024 Four Bed/ Two Bath Section 8 3 1. 5% 1, 244 N/ A 1, 244 3, 732 44, 784 Four Bed/ Two Bath 60% AMI 4 2. 1% 1, 153 244 909 3, 818 45, 814 Four Bed/ Two Bath 80% AMI 5 2. 4% 1, 538 244 1, 294 6, 211 74, 534 Total / Weighted Average 200 100. 0% 1, 019 117 902 1$ 180, 330 2, 163, 960 Absorption To estimate the lease -up period for the subject, the lease -up of the surrounding communities were surveyed. One of the most recently built communities in the area is Alexan Henderson Beach. Although not technically in the primary market area, this 340 -unit, market -rate apartment community is located in Destin, east of the primary market. Page 64 Value Tech Realty Services, Inc. www.gotovalue.com