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12 <br /> SECTION V <br />RESIDENTIAL PROJECTS PROPOSED IN <br />THE SPECIFIC PLAN <br /> <br /> <br /> <br />Related Bristol at 3600 South Bristol Street September 2023 <br />Draft Market Study Report <br /> <br />www.FinanceDTA.com <br />As can be seen in Figure 9, effective market rental rates within the 2-Mile Zone have been steadily <br />increasing for 10 years, and there was a limited compound negative impact related to COVID-19. This <br />compounded rate is about 4.5% and forecasted to increase by a compounded rent growth of about 2.2% <br />for the next 5 years. It is difficult to project absorption rates in the 2-Mile Zone since there are few new <br />similar offerings. As of early 2023, there are only 200 units currently under construction, with delivery <br />scheduled in late 2023. <br />From a market perspective, the 2-Mile Zone has <br />the following desirable characteristics. <br /> An urban setting close to shopping and <br />entertainment; <br /> Adjacency to the South Coast Plaza <br />Mall; <br /> Limited new high-end rental units <br />planned in the immediate future; <br /> Multiple product types to attract a <br />variety of tenants; <br /> A mixed-use environment that includes <br />adjacent retail; <br /> Proximity to the Orange County Art Center; <br /> Proximity to Orange County Airport and Santa Ana Metrolink; <br /> Direct access to Interstate 405 and SR 55; <br /> Up to 13 acres of open space, including 5.0 acres of parks and Greenlink trails; and <br /> Availability of local private schools, including Mater Dei, TVT Community Day School, and The Sage <br />School. <br />It also has some challenges that include: <br /> Average public school district. The Santa Ana school system is ranked 814 out of 1,165 districts in <br />California (https://www.publicschoolreview.com/california/santa-ana-unified-school- <br />district/635310-school-district). <br /> Currently high long term interest rates. <br /> Future higher long-term interest rates resulting from Federal Reserve Bank tightening. <br />Figure 9: Effective Average Rent per Unit <br />Exhibit 10 <br />  <br />  <br />City Council 22 – 535 9/17/2024