Brentwood Senior Apartments

98 Pages·2017·5 MB·English

Market Feasibility Analysis
Brentwood Senior Apartments
Cartersville, Bartow County, Georgia
Preparedfor:
Prestwick Companies
EffectiveDate: April12,2017
SiteInspection:April8,2017
BrentwoodSenior|TableofContents
TABLE OF CONTENTS
1. EXECUTIVESUMMARY....................................................................................................1
2. INTRODUCTION..............................................................................................................8
A. OverviewofSubject..............................................................................................................................................8
B. PurposeofReport.................................................................................................................................................8
C. FormatofReport..................................................................................................................................................8
D. Client,IntendedUser,andIntendedUse.............................................................................................................8
E. ApplicableRequirements......................................................................................................................................8
F. ScopeofWork......................................................................................................................................................8
G. ReportLimitations................................................................................................................................................9
3. PROJECTDESCRIPTION.................................................................................................. 10
A. ProjectOverview................................................................................................................................................10
B. ProjectTypeandTargetMarket.........................................................................................................................10
C. BuildingTypesandPlacement............................................................................................................................10
D. DetailedProjectDescription...............................................................................................................................10
4. SITEEVALUATION......................................................................................................... 12
A. SiteAnalysis........................................................................................................................................................12
1. SiteLocation...............................................................................................................................................12
2. ExistingUses...............................................................................................................................................13
3. Size,Shape,andTopography.....................................................................................................................13
4. GeneralDescriptionofLandUsesSurroundingtheSubjectSite...............................................................14
5. LandUsesSurroundingtheSubjectSite....................................................................................................15
B. NeighborhoodAnalysis.......................................................................................................................................16
1. GeneralDescriptionofNeighborhood.......................................................................................................16
2. NeighborhoodPlanningActivities..............................................................................................................16
3. PublicSafety...............................................................................................................................................16
C. SiteVisibilityandAccessibility............................................................................................................................17
1. Visibility......................................................................................................................................................17
2. VehicularAccess.........................................................................................................................................17
3. AvailabilityofPublicTransit.......................................................................................................................17
4. AvailabilityofInter-RegionalTransit..........................................................................................................17
5. AccessibilityImprovementsunderConstructionandPlanned..................................................................18
6. EnvironmentalConcerns............................................................................................................................18
D. ResidentialSupportNetwork..............................................................................................................................18
1. KeyFacilitiesandServicesneartheSubjectSite........................................................................................18
2. EssentialServices.......................................................................................................................................19
3. CommercialGoodsandServices................................................................................................................20
4. RecreationalAmenities..............................................................................................................................20
5. LocationofLowIncomeHousing...............................................................................................................20
E. SiteConclusion...................................................................................................................................................20
5. MARKETAREA.............................................................................................................. 21
A. Introduction........................................................................................................................................................21
B. DelineationofMarketArea................................................................................................................................21
6. COMMUNITYDEMOGRAPHICDATA.............................................................................. 23
A. IntroductionandMethodology..........................................................................................................................23
B. TrendsinPopulationandHouseholds................................................................................................................23
1. RecentPastTrends.....................................................................................................................................23
2. ProjectedTrends........................................................................................................................................23
3. BuildingPermitTrends...............................................................................................................................24
4. TrendsinOlderAdultHouseholds.............................................................................................................25
C. DemographicCharacteristics..............................................................................................................................25
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BrentwoodSenior|TableofContents
1. AgeDistributionandHouseholdType.......................................................................................................25
2. RenterHouseholdCharacteristics..............................................................................................................27
3. IncomeCharacteristics...............................................................................................................................28
7. EMPLOYMENTTREND................................................................................................... 30
A. Introduction........................................................................................................................................................30
B. LaborForce,ResidentEmployment,andUnemployment..................................................................................30
1. TrendsinCountyLaborForceandResidentEmployment.........................................................................30
2. TrendsinCountyUnemploymentRate......................................................................................................30
C. CommutationPatterns.......................................................................................................................................30
D. At-PlaceEmployment.........................................................................................................................................32
1. TrendsinTotalAt-PlaceEmployment........................................................................................................32
2. At-PlaceEmploymentbyIndustrySector...................................................................................................33
3. MajorEmployers........................................................................................................................................34
4. RecentEconomicExpansionsandContractions........................................................................................35
5. RegionalEconomicSnapshot.....................................................................................................................36
E. ConclusionsonLocalEconomics.........................................................................................................................36
8. PROJECT-SPECIFICAFFORDABILITY&DEMANDANALYSIS............................................. 37
A. AffordabilityAnalysis..........................................................................................................................................37
1. Methodology..............................................................................................................................................37
2. AffordabilityAnalysis.................................................................................................................................38
3. ConclusionsofAffordability.......................................................................................................................39
B. DemandEstimatesandCaptureRates...............................................................................................................40
1. Methodology..............................................................................................................................................40
2. DemandAnalysis........................................................................................................................................40
3. DCADemandConclusions..........................................................................................................................40
9. COMPETITIVERENTALANALYSIS................................................................................... 43
A. IntroductionandSourcesofInformation...........................................................................................................43
B. OverviewofMarketAreaHousingStock............................................................................................................43
C. SurveyofAge-RestrictedRentalCommunities...................................................................................................45
1. IntroductiontotheAge-RestrictedRentalHousingSurvey.......................................................................45
2. Location......................................................................................................................................................45
3. CommunityAge..........................................................................................................................................46
4. BuildingandDesignCharacteristics...........................................................................................................46
5. VacancyRates............................................................................................................................................46
6. UnitDistribution.........................................................................................................................................46
7. AbsorptionHistory.....................................................................................................................................46
8. EffectiveRents...........................................................................................................................................46
9. PaymentofUtilityCosts.............................................................................................................................47
10. UnitFeatures..............................................................................................................................................47
11. CommunityAmenities................................................................................................................................48
D. SurveyofGeneralOccupancyRentalCommunities...........................................................................................48
1. IntroductiontotheRentalHousingSurvey................................................................................................48
2. Location......................................................................................................................................................49
3. VacancyRates............................................................................................................................................49
4. EffectiveRents...........................................................................................................................................50
5. DCAAverageMarketRent.........................................................................................................................50
E. Multi-FamilyPipeline..........................................................................................................................................51
F. HousingAuthorityData......................................................................................................................................52
G. ExistingLowIncomeRentalHousing..................................................................................................................52
H. ImpactofAbandoned,Vacant,orForeclosedHomes........................................................................................53
10. FINDINGSANDCONCLUSIONS................................................................................... 55
A. KeyFindings........................................................................................................................................................55
1. SiteandNeighborhoodAnalysis................................................................................................................55
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BrentwoodSenior|TableofContents
2. EconomicContext......................................................................................................................................55
3. PopulationandHouseholdTrends.............................................................................................................56
4. DemographicAnalysis................................................................................................................................56
5. CompetitiveHousingAnalysis....................................................................................................................56
B. TargetMarkets...................................................................................................................................................57
C. ProductEvaluation.............................................................................................................................................57
D. PricePosition......................................................................................................................................................58
11. ABSORPTIONANDSTABILIZATIONRATES.................................................................. 60
A. AbsorptionEstimate...........................................................................................................................................60
B. ImpactonExistingMarket..................................................................................................................................60
12. INTERVIEWS.............................................................................................................. 61
13. CONCLUSIONSANDRECOMMENDATIONS................................................................. 61
APPENDIX1 UNDERLYINGASSUMPTIONSANDLIMITINGCONDITIONS............................... 62
APPENDIX2 ANALYSTCERTIFICATIONS............................................................................... 64
APPENDIX3NCHMACERTIFICATION.................................................................................... 65
APPENDIX4 ANALYSTRESUMES......................................................................................... 66
APPENDIX5 DCACHECKLIST ............................................................................................... 69
APPENDIX7RENTALCOMMUNITYPROFILES....................................................................... 74
TABLES, FIGURES AND MAPS
Table1 ProposedRentandUnitMixSummary,BrentwoodSenior...........................................................................11
Table2 ProposedFeaturesandAmenities,BrentwoodSenior..................................................................................11
Table3 KeyFacilitiesandServices..............................................................................................................................18
Table4 PopulationandHouseholdProjections..........................................................................................................23
Table5 PersonsperHousehold,BrentwoodMarketArea.........................................................................................24
Table6 BuildingPermitsbyStructureType,BartowCounty......................................................................................24
Table7 TrendsinSeniorHouseholders,BrentwoodMarketArea.............................................................................25
Table8 2017AgeDistribution....................................................................................................................................26
Table92010HouseholdsbyHouseholdType.............................................................................................................26
Table10 HouseholdsbyTenure.................................................................................................................................27
Table11 SeniorHouseholdsbyTenure,Age55+......................................................................................................27
Table12 RenterHouseholdsbyAgeofHouseholder................................................................................................28
Table132010RenterHouseholdsbyHouseholdSize................................................................................................28
Table142017HouseholdIncome...............................................................................................................................29
Table152017SeniorHouseholdIncome....................................................................................................................29
Table162017SeniorHouseholdIncomebyTenure,Households55+.......................................................................29
Table17 LaborForceandUnemploymentRates........................................................................................................31
Table182011-2015CommutingPatterns,BrentwoodMarketArea..........................................................................31
Table19 2016MajorEmployers,BartowCounty.......................................................................................................34
Table20 RecentEconomicExpansionsandContractions,BartowCounty................................................................35
Table21 RegionalAt-PlaceEmployment....................................................................................................................36
Table22 2019TotalandRenterIncomeDistribution,Households55+.....................................................................37
Table23 LIHTCIncomeandRentLimits,Atlanta-SandySprings-MariettaMSA.......................................................38
Table24 2019AffordabilityAnalysis,BrentwoodSenior...........................................................................................39
Table25 SubstandardandCostBurdenedCalculations............................................................................................41
Table26HomeownershiptoRentalHousingConversion...........................................................................................41
Table27 OverallDemandEstimates,BrentwoodSenior...........................................................................................42
Table28 DemandEstimatesbyFloorPlan(NoOverlap),BrentwoodSenior............................................................42
Table29 DwellingUnitsbyStructureandTenure......................................................................................................43
Table30 DwellingUnitsbyYearBuiltandTenure......................................................................................................44
Table31ValueofOwnerOccupiedHousingStock......................................................................................................44
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BrentwoodSenior|TableofContents
Table32SalientCharacteristics,SeniorCommunities................................................................................................47
Table33RentalSummary,SubsidizedSeniorRentalUnits.........................................................................................47
Table34 UtilityArrangementandUnitFeatures.......................................................................................................48
Table35CommunityAmenities..................................................................................................................................48
Table36RentalSummary,GeneralOccupancyCommunities....................................................................................50
Table37AverageRents,ComparableProperties........................................................................................................51
Table38 AverageMarketRentandRentAdvantageSummary.................................................................................51
Table39 SubsidizedCommunities,BrentwoodMarketArea.....................................................................................52
Table40 ForeclosureRate,ZIPCode30120,March2017..........................................................................................54
Table41 RecentForeclosureActivity,ZIPCode30120...............................................................................................54
Figure1SitePlan.........................................................................................................................................................10
Figure2ViewsofSubjectSite......................................................................................................................................13
Figure3SatelliteImageofSubjectSite.......................................................................................................................14
Figure4ViewsofSurroundingLandUses...................................................................................................................15
Figure5 At-PlaceEmployment...................................................................................................................................32
Figure6 TotalEmploymentbySector,2016Q3.........................................................................................................33
Figure7 ChangeinEmploymentbySector2011-2016Q3.........................................................................................33
Figure8PricePosition.................................................................................................................................................59
Map1 SiteLocation....................................................................................................................................................12
Map2 2016CrimeRisk,SubjectSiteandSurroundingAreas.....................................................................................17
Map3 LocationofKeyFacilitiesandServices............................................................................................................19
Map4 BrentwoodMarketArea..................................................................................................................................22
Map5MajorEmployers..............................................................................................................................................35
Map6 SurveyedSeniorRentalCommunities.............................................................................................................45
Map7 SurveyedComparableGeneralOccupancyRentalCommunities....................................................................49
Map8 SubsidizedRentalCommunities......................................................................................................................53
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BrentwoodSenior|ExecutiveSummary
1. EXECUTIVE SUMMARY
Prestwick Companies has retained Real Property Research Group, Inc. (RPRG) to conduct a
comprehensive market feasibility analysis for Brentwood Senior, a proposed senior-oriented rental
communityinCartersville,BartowCounty,Georgia. Asproposed,BrentwoodSeniorwillbefinanced
inpartbypercentLowIncomeHousingTaxCredits(LIHTC),allocatedbytheGeorgiaDepartmentof
Community Affairs (DCA), and will be restricted to households age 55 and older. The following
report,includingtheexecutivesummary,isbasedonDCA’s2017marketstudyrequirements.
ProjectDescription
 ThesiteforBrentwoodSeniorislocatedontheeastsideofDouthitFerryRoad,roughly
one-half mile south of its intersection with West Avenue (State Highway 113) in
southwestCartersville,BartowCounty,Georgia.
 BrentwoodSeniorwillcontain70rentalunitsrestrictedtohouseholdswithhouseholder
age 55 and older. All units at Brentwood Senior willbenefit from Low Income Housing
Tax Credits and will target households earning up to 50 percent and 60 percent of the
AreaMedianIncome(AMI),adjustedforhouseholdsize.
 Adetailedsummaryofthesubjectproperty,includingtherentandunitconfiguration,is
showninthetablebelow. Therentsshownwillincludeonlytrashremoval.
UnitMix/Rents
Income Square Developer Utility Gross
Type Bed Bath Quantity
Target Feet Rent Allowance Rent
MidRise 1 1 50% 13 667 $495 $94 $589
MidRise 1 1 60% 50 667 $550 $94 $644
MidRise 2 2 50% 2 890 $585 $118 $703
MidRise 2 2 60% 5 890 $650 $118 $768
Total 70
Source:PrestwickCompanies Rentsincludetrashremoval.
 The newly constructedunits at the subject propertywill offerkitchens equipped with a
range, a refrigerator, a dishwasher, garbage disposal, and microwave. In addition, all
units will include washer and dryer connections, central heating and air-conditioning,
ceilingfans,windowblinds,ninefootceilings,grabbars,andemergencypullcords. The
proposed unit features at Brentwood Senior will exceed those offered at all existing
senior LIHTC rental communities in the market area and will be well received by the
targetmarket.
 Brentwood Senior will offer amenities including a community room with kitchen, an
exercise/fitness center, a computer center, a library, and a courtyard with a gazebo,
sitting areas, and a picnic area. Furthermore, Brentwood Senior will offer amenities
targeted to elderly households including a mid-rise building with elevator, interior unit
access, and secured exterior access. The amenities offered at the subject property will
surpass all existing seniorLIHTC rentalcommunities in the market areaand willbe well
receivedbythetargetmarket.
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BrentwoodSenior|ExecutiveSummary
SiteDescription/Evaluation:
The subject site is asuitable location forsenior rentalhousing, as it is compatible withsurrounding
landuses andhasample access to majortraffic arteries, community amenities,seniorservices, and
shoppingopportunities.
 ThesiteforBrentwoodSeniorislocatedontheeastsideofDouthitFerryRoadinsouthwest
Bartow County, Georgia. Bordering land uses include single-family detached homes and
undevelopedland.
 Notable land uses within one-half mile include four multi-family rental communities
(including one LIHTC community), First Baptist Church of Cartersville, Cartersville
ElementarySchool,CartersvillePrimarySchool,ExcelChristianAcademy,CartersvilleMiddle
School,andvariouscommercialandlightindustrialuses.
 Community amenities, shopping, medical services, and recreational venues are all easily
accessiblewithintwomilesofthesubjectsite.
 BrentwoodSeniorwillhaveamplevisibilityandaccessibilityfromDouthitFerryRoad,alight
tomoderatelytraveledtwo-laneroadwayinsouthwesternCartersville. Thesubjectsitewill
also benefit from traffic generated by nearby land uses including First Baptist Church of
Cartersvilleandtwolargesingle-familyneighborhoods.
 Thesite’sCrimeRiskiscomparabletomostareasofthemarketarea,whichincludethevast
majority of the market area’s multi-family rental stock. We do not expect crime or the
perceptionofcrimetonegativelyimpactthesubjectproperty’smarketability.
MarketAreaDefinition
 TheBrentwoodMarketAreaconsistsoftencensustractsinthesoutheastportionofBartow
County encompassing the city of Cartersville, the city of Emerson, and their surrounding
ruralareas. The census tracts includedinthe marketareaarebasedontheircomparability
to the subject site’s immediate neighborhood(housingstock andlanduses) aswellastheir
accessibilitytoandfromthesubjectsiteviamajorthoroughfaresincludingInterstate75and
U.S.Highway41. Themarketareadoesnotincludethenorthernorwesterncensustractsin
BartowCounty,astheyarelargelyundeveloped,orportionsofthemoredenselydeveloped
countiesofCherokee tothe eastorCobbto south,whichare distinct andseparate housing
submarkets. The boundaries of the Brentwood Market Area are State Highway 20 /
Interstate 75 / Cass White Road to the north (8.8 miles), Cherokee County to the east (9.4
miles),CobbCountytothesouth(4.2miles),andEtowahRiver/TwoRunCreektothewest
(5.7miles).
CommunityDemographicData
 The Brentwood Market Area experienced strong senior household growth (55+) from 2010
to 2017, a trend expected to continue through 2019. Over the next two years, senior
householdgrowthisexpectedtooutpacetotalhouseholdgrowthonapercentagebasis.
o The Brentwood Market Area added1,379 people (2.5 percent) and517 households
(2.5 percent) annually between the 2000 and 2010 Census counts. Esri projections
indicate the market area continued to grow through 2017, albeit at a slower pace
than in the previous decade. The market area is projected to add 960 people (1.4
percent)and307households(1.3percent)annuallyoverthenexttwoyears.
o Households with householders age 55+ are projected to increase by 299 or 2.9
percent per year from 2017 to 2019. The total number of households with
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BrentwoodSenior|ExecutiveSummary
householders age 55+ in the Brentwood Market Area is projected to be 10,611 in
2019.
 Seniors (persons age 62 andolder) comprise approximately 17 percent ofthe populationin
the Brentwood Market Area. Adults age 35-61 comprise the largest percentage of the
population in the Brentwood Market Area at 35.7 percent including 8.6 percent of the
populationfromtheagesof55to61.
 Households with children and households with at least two adults and no children
accounted for roughly 38 to 39 percent of all households in the Brentwood Market Area
andBartowCountyasofthe2010Census. Singlepersonswereslightlymorecommoninthe
marketareaat23.5percentcomparedto21.0percentinthecounty.
 Nearly 37 percent of all households in the Brentwood Market Area were renters as of the
2010 Census, a rate Esri estimates increased to 40.6 percent in 2017. During this period,
the market area added 1,190 renter households and lost 465 owner households. Esri
projects the market area will add 190 renter households over the next two years, keeping
therenterpercentageinrelativelystable.
 Esri estimates over one-quarter (28.6 percent) of senior households (55+) were renters in
themarketareaasof2017.
 The2017medianincomeofhouseholdsintheBrentwoodMarketAreais$47,120,$3,261or
6.5 percent lower than Bartow County’s median of $50,380. RPRG estimates the 2017
medianincome forallseniorhouseholds(age55orolder) intheBrentwoodMarket Areais
$38,967andthemedianforseniorrenterhouseholds(62+)is$31,529. Approximatelyone-
thirdofallseniorrenterhouseholders(55+)intheBrentwoodMarketAreahaveanincome
from$15,000to$34,999.
 We do not believe foreclosed, abandoned, or vacant single/multi-family homes will impact
thesubjectproperty’sabilitytoleaseitsunitsgivenitssenior-orientednature.
EconomicData:
BartowCountywassomewhatslowtorecoverfromjoblossesduringandimmediatelyfollowingthe
most recent national recession; however, job growth in the county has accelerated over the last
threeyearsandtheunemploymentratehasdeclinedtopre-recessionlevels. Regionalemployment
concentrationsalsohavesomeimpactonhousinggrowthinthecountyasthecityofCartersvilleisa
bedroomcommunityforcommutingworkersinMetroAtlanta.
 The most recent annual average unemployment rates of 5.0 percent in Bartow County, 5.4
percent in Georgia, and 4.9 percent in the nation all represent significant improvements
relativetohighsreachedduringthemostrecentnationalrecession.
 Bartow County addedmore than 2,900 net jobs from 2014 to 2015, exceeding the national
rate of job growth during this time. The county also added 896 jobs through the third
quarterof2016.
 Commuting data indicates that the residents of the Brentwood Market Area work
throughout the Atlanta Region with roughly 40 percent working in a Georgia county other
thanBartowCountyand40percentcommuting30minutesormoretowork.
 Manufacturing and Trade-Transportation-Utilities are Bartow County’s largest employment
sectors, accounting for 48.9 percent of all jobs compared to just 27.7 percent of jobs
nationally. While both of these industry sectors account for a higher percentage of
employmentinthecountythanthenation,thecounty’sheavyrelianceonManufacturingis
particularly noteworthy as the county’s percentage of Manufacturing jobs is more than
three times the national rate (27.3 percent versus 8.7 percent). The Government and
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BrentwoodSenior|ExecutiveSummary
Leisure-hospitality sectors also comprise a sizable proportion of the county’s job base at
roughly12to13percentoftotalemployment.
 EightofeleveneconomicsectorsaddedjobsinBartowCountyfrom2011to2016(Q3)with
thenotablegains(intermsoftotaljobs)inManufacturing(21.8percent),Leisure-Hospitality
(27.8 percent), Trade-Transportation-Utilities (9.4 percent), and Leisure-Hospitality (27.0
percent).Themostsignificantjoblosses(intermsoftotaljobs)occurredintheGovernment
and Professional Business sectors, which declined by 7.3 percent and 3.3 percent,
respectively.
 Threerecentjobexpansions/newbusinesseshavebeenannouncedinBartowCountyover
thelastyearthatwilladd550newjobsinthecountyoverthenexttwotothreeyears. The
recentlayoffatTrinityRailinBartowCountyresultedinthelossof298jobsinthecounty.
 Given the senior-oriented nature of the subject property, it is less likely to be affected by
changes in economic conditions. We do not expect current economic conditions in Bartow
CountytonegativelyimpacttheproposeddevelopmentofBrentwoodSenior.
ProjectSpecificAffordabilityandDemandAnalysis:
 Brentwood Senior will contain 70 units reserved for households earning at or below 50
percentand60percentoftheAreaMedianIncome(AMI),adjustedforhouseholdsize.
 The proposed 50 percent units will target senior renter households with incomes from
$17,670 to $27,000. A projected 520 renter households (55+) will earn within this range in
2019.The15unitsproposedat50percentAMIwillresultinacapturerateof2.9percent.
 The proposed 60 percent units will target senior renter households with incomes from
$19,320 to $32,400. A projected 676 renter households (55+) will earn within this range in
2019.The55unitsproposedat60percentAMIwillresultinacapturerateof8.1percent.
 Overall,772 senior renterhouseholds (55+) will be income qualified for the proposed units
atBrentwoodSenior.Theoverallcapturerateis9.1percent.
 All of Brentwood Senior’s renter capture rates by floor plan and income level are within
reasonable and achievable levels for an age-restricted rental community and indicate
sufficientincomequalifiedrenterhouseholdstosupporttheprojects70proposedunits.
 Brentwood Senior’s DCA demand capture rates by income level are 4.7 percent for 50
percent units, 13.4 percent for 60 percent units, and 14.9 percent for all units. Brentwood
Senior'scaptureratesbyfloorplanrangefrom4.2percentto14.1percent.
 All of Brentwood Senior’s DCA demand capture rates are well below DCA’s mandated
threshold of 30 percent and indicate sufficient demand will exist in the Brentwood Market
Areatosupportthe70proposedunits.
 CompetitiveRentalAnalysis
RPRGsurveyedfiveseniorrentalcommunitiesand13generaloccupancycommunitiesinthemarket
area.Boththeseniorandgeneraloccupancyrentalmarketswereperformingverywellwithvacancy
ratesofzeropercentforseniorrentalcommunitiesandlessthanonepercentforgeneraloccupancy
communitiesinthemarketarea.
 All surveyed senior rental communities in the Brentwood Market Area were fully occupied
with waiting lists at the time of our survey. This includes 142 LIHTC and 91 deeply
subsidized units. The overall vacancy rates at surveyed general occupancy communities
were0.6percentamongallcommunitiesand0.7percentamongLIHTCcommunities.
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BrentwoodSenior|ExecutiveSummary
 SurveyedseniorLIHTCcommunitiesreportednetrentsasfollows:
o One bedroom units reported an average rent of $392 with an average unit size of
742squarefeetandanaveragerentpersquarefootof$0.53.
o Two bedroom units reported an average rent of $442 with an average unit size of
1,004squarefeetandanaveragerentpersquarefootof$0.44.
 It is important to note the average rents reported above include LIHTC units targeting
households earning from 35 percent to 60 percent of the Area Median Income (AMI). The
only LIHTC community to offer 60 percent LIHTC units (Shangri-La Park) also offers its 50
percentand60percentunitsatthesamerents.
 Among surveyed general occupancy rental communities, average effective rents were as
follows:
o One-bedroomunitsreportedanaverageeffectiverentof$742withanaverageunit
sizeof762squarefeetor$0.97persquarefoot.
o Two-bedroomunitsreportedanaverageeffectiveof$801withanaverageunitsize
of1,098squarefeetor$0.73persquarefoot.
 The proposed 50 percent and 60 percent rents will be priced higher than all of the senior
LIHTC units currently offered in the market; however, nearly all of the senior LIHTC units
target lower AMI levels of 50 percent or below. The only senior community to offer 60
percent LIHTCunits (Shangri-LaPark) also prices their60 percent units at50 percent levels.
When compared to general occupancy rental communities, all of the proposed rents are
positioned near the bottom ofthe rentalmarket below all but one market rate community
and well below the highest priced 60 percent LIHTC units offered in the market area
(Somerset Club). While the subject property will be positioned more toward the middle of
thegeneraloccupancyrentalmarketonapricepersquarefoot,thisisreasonablegiventhe
somewhat smaller unit sizes and mid-rise design of the subject property. All of the
proposedrentsappearreasonableandappropriate.
 The “average market rent” among comparable communities is$742 forone-bedroom units
and$838fortwo-bedroomunits. Theproposed50percentand60percentrentswillresult
in rent advantages of at least 22 percent for all floor plans. The overall rent advantage for
thecommunityis27.1percent.
 No senior-oriented multi-family rental communities were identified in the planning or
construction stages in the Brentwood Market Area other than the subject property. Three
general occupancy LIHTC communities are proposed in the Brentwood Market Area, but
wouldonlymoveforwardiftheyreceiveanallocationoftaxcreditsinthe2017competitive
round. Regardless, these generaloccupancy communities would not directly compete with
thesubjectproperty.
Absorption/StabilizationEstimates
 Based on strong projected senior household growth, reasonable affordability and demand
capture rates, strong senior and general occupancy rental market conditions, and the
producttobeconstructed,weexpectBrentwoodSeniortolease-upatarateof12unitsper
month. At this rate, the subject property will reach a stabilized occupancy of at least 93
percentinapproximatelyfivetosixmonths.
 Giventhe strongrentalmarket conditions amongbothseniorandgeneraloccupancy rental
communities, including waiting lists for LIHTC units, we do not believe the development of
the subject property will have an adverse impact on existing rental communities in the
Brentwood Market Area including those with tax credits. With strong senior household
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