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ta <br />www.FinanceDTA.com <br />G.2 Multifamily Market Research Conclusion <br />SECTION V <br />RESIDENTIAL PROJECTS PROPOSED IN THE SPECIFIC PLAN <br />In order to review the multifamily revenue, information was obtained from Costar for projects both within the County and a 2-Mile Zone <br />of the Project site. Since we were not provided with the product mix, DTA reviewed the data provided by Costar to generate an average <br />square footage for a unit in the Project's boundaries and determined that an average of 900 SF was appropriate, allowing for a mix of <br />studio, one -bedroom, and two -bedroom units. <br />Since the Specific Plan does not contain apartment floor plans or an amenity package, DTA concluded that these features would be similar <br />to those in nearby programs. Our data led us to determine that the monthly rent would be approximately $3.50 per square foot, with the <br />potential premium of 4% due to building heights, amenity packages, and inclusion in the proposed urban village. The average vacancy for <br />similar units in the 2-Mile Zone is 5.0%. DTA also estimated that net operating expenses would be 35% of revenues, with a capital reserve <br />equal to 3.0%. This generated an NOI of $1,867 per month at a 4.5% cap rate. Our conclusion was that a single 900 SF unit would have a <br />market value of $498,000. Due to the limited market supply of housing units in the city and surrounding area, which results in higher rent <br />prices and low vacancies, the proposed units could be absorbed into the market area. <br />It is important to note that DTA did not include rental appreciation even though historical data indicates prior annual appreciation of 4.5% <br />and future appreciation of 2.2% per year. We also assumed that vacancies, net operating expenses, and capital reserves would not <br />increase. <br />Related Bristol at 3600 South Bristol Street <br />Draft Market Study Report <br />September 2023 <br />Exhibit 10 <br />21 <br />