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

the demographics of demand for a specific area or property type. A market study may also include analyses of construction and absorption trends. A market study may also be the process of determining the general market conditions affecting the property to be marketed, including historical and potential levels of supply and demand. Marketability Study A process that investigates how a particular piece of property will be absorbed, sold, or leased under current or anticipated market conditions; includes a market study or analysis of the general class of property being studied. A marketability study can also be a macroeconomic study that examines the marketability of a given property or class of properties, usually focusing on the market segment( s) in which the property is likely to generate demand. Marketability studies are useful in determining a specific highest and best use, testing development proposals, and projecting an appropriate tenant mix. Value Tech Realty Services, Inc. www.gotovalue. com Page 8 23-  Sound Side Apartments Background Information Background Information Identification of the Subject The subject is a proposed, 200 -unit affordable apartment community to be located at 20 Carson Drive, Fort Walton Beach, Okaloosa County, Florida. All 200 -units at the subject property will be rent and /or income restricted. The community will offer one, two, three, and four bedroom units, in addition to enclosed common areas including a clubhouse /community center with computer room. The entire parcel contains approximately 13. 50 acres. A legal description for the subject is presented in the Addendum. Intended Use of the Market Study The purpose of the Market Study is to define the geographic boundaries of the market area that the subject will compete within, conduct a quantitative and qualitative analysis of existing and proposed competitive facilities within the market, estimate rental rates and the amenities and services included within the rent, and project stabilized occupancy levels that the subject should command. Intended User of the Market Study This Market Study is to be used by Berkadia Commercial Mortgage LLC, Fort Walton Beach Housing Authority, and Housing and Urban Development ( HUD) in processing a loan under the HUD MAP 221 d) ( 4) program. Pertinent Dates The Market Study is dated on the last date market information was secured January 6, 2010. Preparation of the written report was completed on January 8, 2010. Scope of Work, Market Research and Market Study Procedures The steps in the market analysis are is as follows: Scope of Work Identification Use Identification Definition Description of of property of Date of Other limiting of of scope of rights to Market research conditions real estate Market Market Study be evaluated Study Preliminary Analysis and Data Selection and Collection General Specific Competitive Supply and Demand Region, city and neighborhood) SubjectSubject andand comparables)comparables) The subject market) SocialSocial Site and improvements Inventory of competitive properties Economic History of ownership Vacancies and offerings Governmental and use of property Absorption rates Environmental Market orientation Demand studies Report of Defined Conclusion Value Tech Realty Services, Inc. www.gotovalue.com Page 9 24-  Sound Side Apartments Background Information Inspection Kay Kauchick, MAI and Anthony Marasco conducted a detailed physical inspection of the comparables and market area. The last day of securing market data was on January 6, 2010. Data Collection Three types of data are normally gathered while completing a market study: general, specific, and competitive supply and demand. General Data —General data concerns the social, economic, governmental, and environmental forces that impact property values. General data presented in this market study is found in the Area Description and Analysis and the Neighborhood Description and Analysis Sections. We gathered general data from a variety of sources and publications as noted in the analyses. General data concerning the neighborhood is also based upon observations made during our inspection of the neighborhood. Specific Data —Data relating to the property being analyzed and /or appraised, and to comparable properties, is referred to as specific data. Documents we relied upon for specific data pertaining to the subject are listed in the General Assumptions. Additional data pertaining to the subject was gathered from subject contacts, local city and county offices and chambers of commerce, various State offices, and other resources maintained in our library. Specific comparable data was gathered from market participants. The extent of the comparable market data collection process varies for each type of comparable data. Refer to discussions preceding the presentation of data in the approaches to value for descriptions of the data sources consulted and the search criteria. Competitive Supply and Demand Data —A complete analysis of the rental apartment supply and demand conditions has been prepared by Value Tech Realty Services, Inc. Compliance We developed this report in compliance with the requirements of the Housing and Urban Development including those set forth in the most recent Multifamily Accelerated Processing ( MAP) Guide. Competency Kay Kauchick MAI and Anthony Marasco have analyzed multifamily assignments that include HUD subsidies, market -rate, LIHTC, Bond Financing, as well as projects that contain both market and income - restricted rents. Ownership and History of the Subject The subject property is currently owned by the Fort Walton Beach Housing Authority. There have been no other transactions in the past three years. Value Tech Realty Services, Inc. www.gotovalue.com Page 10 25-  Sound Side Apartments Assumptions and Limiting Conditions Assumptions and Limiting Conditions The use of this report is subject to the following assumptions and limiting conditions: General Assumptions No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. The property was analyzed " free and clear" of any and all liens or encumbrances unless otherwise stated. Responsible ownership and competent property management are assumed. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. All engineering is assumed to be correct. The plot plans and illustrative material if presented in this report are included only to assist the reader in visualizing the property. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less marketable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in this report. It is assumed that all applicable zoning and land use regulations and restrictions have been complied with unless a nonconformity has been stated, defined, and considered in this report. It is assumed that all required licenses, certificates of occupancy, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the market support contained in this report is based. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in this report. The analyst has not made an environmental inspection of the subject and is not qualified to detect the existence of hazardous materials. The analyst is relying on other third party sources for the detection of hazardous materials. The presence of hazardous materials such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials may affect the value or marketability of the property. The analyst assumes no responsibility for any existing conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if so desired. Value Tech Realty Services, Inc. www.gotovalue.com Page I1 26-  Sound Side Apartments Assumptions and Limiting Conditions The Americans With Disabilities Act ( ADA) became effective January 26, 1992. Noncompliance with the ADA could cause a loss in value. Unless otherwise stated in this report, Value Tech Realty Services, Inc. has not been provided with a compliance survey; therefore, our market conclusion is predicated upon the assumption that the subject is not negatively or positively impacted by issues relating to the ADA. It is our assumption. that the property has been designed in compliance with Fair Housing and ADA as required. General Limiting Conditions Possession of this report, or a copy thereof, does not carry with it the right of publication. The market analyst herein