2023-05-10 CC Packet - Laserfiche WebLink

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LOCi CONSULTING Market Analysis for Downtown Redevelopment City of Centerville Economic Development Authority April 3, 2023 ■ Units range in size from 714- to 1,268-square feet. ■ Rents range from $800 to $1448 per month, or $0.95 to $1.35 per square foot per month. Two of the projects have surface parking only One project, Rosemary Apartments, has underground parking. Market Rate Rental Properties ■ LOCi Consulting profiled seven newer projects with a total of 742 units. Projects are located in Forest Lake, Hugo, and White Bear Lake. ■ At the time of the survey, there were 61 units vacant for a vacancy rate of 8.2%. A vacancy rate of 5% is considered to be the level where the market is in equilibrium. ■ Most of the property managers interviewed said that the buildings tend to stay full. One of the newest properties, Timber Ridge in Forest Lake, opened its second phase in February and is already leased up. ■ Unit sizes range from 480- to 1,543-square feet. ■ Rents range from $885 to $2,728 per month, or $1.34 to $2.84 per square foot per month. ■ Units typically include in unit washers and dryers. Some of the of the properties include community rooms and outdoor gathering spaces. ■ Most of the properties offer surface parking with garages that can be rented for an additional fee. A couple of the projects have underground parking. Senior Housing Trends Senior housing refers to a spectrum of property types that combine housing with varied levels of services for seniors. Services can include meals, housekeeping, social programming, medication assistance, personal care, and nursing care. Senior housing products range from minimal or no services at active adult rental communities to high levels of services provided in enhanced memory care assisted living units. Some communities will offer the spectrum of senior housing products to residents, allowing residents to age in place within the community and to receive services appropriate for their needs. Others are freestanding and offer only one type of product. The properties that include the lowest level of services are called active adult properties, which offer virtually no support services or healthcare, but still restrict residency to those age 55 and over. Active adult properties can be rental or owner - occupied units —attached or detached townhomes, condominiums, and cooperatives. The target market for these communities is typically age 65 and over and are generally healthier than other senior living residents. Affordable senior housing can generally be classified as active adult as well. Units are age- and income -restricted and offer typical apartments with few services. Some affordable housing developments offer meals, housekeeping, and/or assistance with activities of daily living through external providers. These services are rarely included in the monthly fee. Independent living communities offer support services such as meals and housekeeping. These services are either included in the rent or offered a - la carte so that residents can choose whether to pay for them. Independent living projects attract an older and frailer senior population than active adult projects —generally seniors age 75 and over. The most service -intensive housing types are assisted living and memory care assisted living. Typical services included three meals per day, housekeeping, linen changes, personal laundry, 24- hour emergency response, and a wide range of personal -care and therapeutic services. The meals and services can be built into the monthly fee, charged through a tiered service package, or offered a -la -carte. Age -restricted housing can be owned by the resident or rented. Age -restricted housing that is owned by the resident can be cottages, villas, townhomes, condominiums, or cooperatives. More often than not, for -sale senior housing offers few services for its residents. Page 51