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TWIN LAKES, Roseville, Minnesota Market Assessment & Demand Analysis Condo-Townhouse Market Assessment INTRODUCTION Our market assessment begins with an overview of the proposed development concept. We then present a discussion of the approximate competitive market area for residential development at Twin Lakes, as well as the primary geographic draw area for housing on the site. Next, we present an analysis of pertinent demographic and economic data for the competitive market area, as well as the seven-county region. We then outline the historical, current and projected market environment for for-sale multifamily housing, and conclude with our demand analysis for condos and townhomes at Twin Lakes. PROPOSED DEVELOPMENT The proposed general-occupancy (non-senior) housing mix in Phase I of Twin Lakes includes a total of 490 units as follows: Product Units A vg. Price Size (SF) Price PSF Lofts 240 $180,000 900-1,000 $180-$200 New Urban THs 142 $280,000 1,600 $175 Gable THs 82 $200,000 1,400 $143 ( \ Urban Row THs 26 $300,000 1,600 $188 The developers are planning a three to five-year build out period for the residential portion of the project. Based on the product types proposed, the location of the property, and the experience of similar housing developments by Rott1und Homes, the Twin Lakes community is expected to attract primarily singles and couples, ranging from first-time homebuyers to empty nesters downsizing from single-family homes in the area. Based on the proposed unit mix, the average price per unit equates to approximately $220,000. With units ranging from roughly $180,000 to $300,000, Twin Lakes can expect to attract primarily households with annual incomes between $50,000 and $100,000, or more.l COMPETITIVE MARKET AREA The approximate competitive market area for housing at Twin Lakes includes the following cities: Roseville, Lauderdale, Falcon Heights, St. Anthony, New Brighton, Arden Hills, and Shoreview. The project will compete for buyers primarily with other housing developments in these communities. We recognize, however, that due to the quality ofthe site and its proximity to key transportation corridors and job centers, housing at Twin Lakes will attract buyers from I Assumptions: households can afford approximately 25-30% of income toward housing cost; 5% down payment; 6.0% 30-year fixed rate. Monthly housing payment including principal, interest, mortgage insurance and taxes = $1,350 for $180,000 home and $2,245 for $300,000 home. GV A Marquette Advisors Page 7