01-22-08 1B Market Study - Laserfiche WebLink

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HOUSING RECOMMENDATIONS We recommend single-level townhomes primarily for older adults who are empty-nesters and/or retired people. They have significant equity in an existing home plus otherretirement savings and they will prefer one-level units with higher-quality finishes than are typically found in other move-up products. For these single-level units, we recommend pricing range from $375,000 to $400,000 for two-bedroom units and $425,000 to $450,000 for larger two-bedroom plus den units. It should be noted that these base prices would include the finished main level and a fi- nished walk-out or look-out basement. We recommend two-story townhome units with two-car attached garages (shared underground parking is also acceptable). We recommend base prices of $270,000 to $295,000 for 1,600 to 1,750 square foot units and $300,000 to $320,000 for 1,800 to 1,900 square foot units. These units will appeal to some empty-nesters but primarily to professional middle-age couples without children and singles who prefer maintenance-free housing. We estimate that with optional up- grades, most units will sell for $10,000 to $15,000 above the base prices. Condominium Based on market conditions, we do not recommend that condominiums be included in the first phases of the development. We fmd demand for about 100 units on the subject site (about 15% of the total for-sale multifamily demand). The majority ofthe demand for these units will occur closer to 2020 when the competitive supply of new for-sale townhomes diminishes in the area due to a dwindling land supply. In the short-term, most potential buyers will chose townhomes over condominiums, resulting in limited sales for a condominium building. General-Occupancy Rental Housing Table 37 shows our recommended unit mix, sizes, and pricing for general occupancy rental apartments for the Arden Hills TCAAP site, based on a concept that limits the total number of housing units to 1,750 ("Option B"). We find that demand in the area far exceeds the proposed level of 140 market rate units, as few rental developments have been added in the Market Area over the past two decades, and Arden Hills currently has only one rental apartment building. Our employer interviews found that many employers, especially those with support positions, felt that rental housing in the area was nonexistent for their workforce and was new development was needed. We recommend 275 to 300 market rate rental units in the beginning phases of the development. In addition, we recommend that 20% of the total rental units be affordable to moderate-income residents. This would add an additional 70 to 80 rental units for a total of 345 to 380 rental units on the site. We understand that with high land, development and construction costs, it is difficult to develop even market rate units with rents affordable to the target market (in this case, rents of about MAXFIELD RESEARCH INC. 86