Southport Mixed Usesouthport.in.gov/wp-content/uploads/2017/06/Exhibit-D... · 2017. 6. 23. · Mitchell Market Analysts, Inc. 820 Fort Wayne Avenue, Indianapolis, IN 46204 317-687-2747

Mitchell Market Analysts, Inc.

820 Fort Wayne Avenue, Indianapolis, IN 46204

www.mitchellmarketanalysts.com 317-687-2747

Market Analysis

Southport Mixed Use

Location

2110 E Southport Rd

Southport, IN 46227

Marion County

Prepared for

City of Southport Redevelopment Commission

6901 Derbyshire Rd

Southport, IN 46227

Date of report

May 17, 2017

Updated

June 15, 2017

820 Fort Wayne Avenue Indianapolis, IN 46204

www.mitchellmarketanalysts.com

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June 15, 2017

Duane Lagreck

City of Southport Redevelopment Commission

6901 Derbyshire Rd

Southport, IN 46227

RE: Market Analysis

Southport Mixed Use

2110 E Southport Rd

Southport, IN 46227

Marion County

File Name: IN-17-08

Mr. Lagreck:

In fulfillment of our agreement, we are pleased to deliver the market study on Southport Mixed Use

located at 2110 E Southport Rd in Southport.

Located within the addenda of the report are the Certification and Market Study Checklist. Thank you

for allowing us to contribute to your project.

Sincerely,

Jennifer Atkinson

Mitchell Market Analysts, Inc.

Jennifer earned the Professional Member Designation from the National Council

of Housing Market Analysts.

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Contents

Executive Summary ...................................................................................................................... 5

Market Analysis Summary ............................................................................................................ 7

Scope of Work for the Project ....................................................................................................... 8

Development Description ............................................................................................................. 9

Photographs of site .......................................................................................................................... 9

Prior development plans ................................................................................................................ 15

Physical characteristics of the subject site ..................................................................................... 17

Target Market to be served ............................................................................................................ 18

Unit mix and rents .......................................................................................................................... 18

Transit oriented development ........................................................................................................ 19

Land uses around the subject ......................................................................................................... 20

Crime in the PMA ........................................................................................................................... 25

Neighborhood amenities ................................................................................................................ 25

Location of the subject in a desirable site ...................................................................................... 31

Description of the market area ................................................................................................... 35

The Primary Market Area (PMA) for the subject ............................................................................ 35

Market Area Economy ................................................................................................................ 37

Trends in at-place employment...................................................................................................... 37

Employment by industry sector ..................................................................................................... 38

Wages by industry .......................................................................................................................... 39

Major employers ............................................................................................................................ 40

Trends for resident employment and unemployment ................................................................... 43

Conclusion ...................................................................................................................................... 46

Demographic data ...................................................................................................................... 48

Total population and households ................................................................................................... 48

Population and households by age group ...................................................................................... 49

Households by tenure .................................................................................................................... 51

Households by income ................................................................................................................... 52

Average household size .................................................................................................................. 53

Renter households by persons in household ................................................................................. 54

Demand Analysis ........................................................................................................................ 56

Determining income and age-eligible households ......................................................................... 56

Eligible households by income brackets ......................................................................................... 61

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Movership rate ............................................................................................................................... 61

Recently developed rental units ..................................................................................................... 62

Estimate of absorption period ........................................................................................................ 62

Capture rate .................................................................................................................................... 63

Penetration rate for the PMA ......................................................................................................... 66

Supply Analysis ........................................................................................................................... 67

Occupancy rates of each comparable ............................................................................................ 68

Summary of occupancy rates ......................................................................................................... 69

Market rate comparables ............................................................................................................... 70

Deriving a market rent .................................................................................................................... 81

Derivation of market rent ............................................................................................................... 87

LIHTC comparables ......................................................................................................................... 88

Map of subject relative to all comparables .................................................................................... 94

Comparables for rural developments............................................................................................. 97

Waiting Lists ................................................................................................................................... 97

Availability of other affordable housing units ................................................................................ 97

Building permits .............................................................................................................................. 98

Analysis of commercial use ......................................................................................................... 99

Overview of the national office market ......................................................................................... 99

Overview of Indianapolis office market ....................................................................................... 102

Conclusion of the office market ................................................................................................... 108

Overview of the national retail market ........................................................................................ 109

Overview of Indianapolis retail market ........................................................................................ 113

Conclusion .................................................................................................................................... 114

Conclusions and Recommendations .......................................................................................... 115

Signed Statement ..................................................................................................................... 116

Market Study Analyst Statement of Experience ........................................................................ 117

Market Study Checklist ............................................................................................................. 122

Acknowledgement of Market Analyst .......................................................................................... 123

Addenda ................................................................................................................................... 124

STDB Online Data Sources ............................................................................................................ 124

Example of demand calculation ................................................................................................... 124

Page 5

Executive Summary The following overview highlights the major findings and conclusions reached from information

collected through demographic analysis, economic observations, and survey research of existing

developments.

The subject is called Southport Mixed Use in this report. The site is located at 2110 E Southport

Rd, Southport, IN 46227, in Marion County.

The site is located in census tract 18-097-3810.02. This census tract is not a qualified census

tract. The property has a latitude and longitude of 39.665267 and -86.123569. It is surrounded

by retail properties, residential properties, and offices.

The site formerly had a lumber yard. All improvements have been razed. There is a

revitalization plan that designates the subject site as mixed use. The subject will fit into that

designation perfectly with a mix of retail or office and residential.

The subject will be new construction on 3.25 acres.

The property had been the site of a proposed Low Income Housing Tax Credit award in 2014 as

a senior property. A tax credit award in the state of Indiana during the competitive 9% round is

noteworthy because 12 to 14 projects receive awards out of 60 to 70 applications. The project

fell victim to bad timing with uncertainty rising in the tax credit financing market and the

developer could not find investors to commit.

The site remains an attractive location on which to build a multifamily property in one of the

commercial corridors of Southport. The location also has easy access to Interstate 65 and US

31.

The purpose of this study is to evaluate the site for potential development as a market rate

multifamily property with a commercial tenant.

This analysis is performed assuming the subject would have a total of 95 units with 35 one-

bedroom units and 60 two-bedroom units.

No target rents were provided to the analyst, so the analyst developed a low market rent and a

high market rent for the property depending on some site and unit amenities as described in

this report. The low market rents are $685 for the one-bedroom unit and $738 for the two-

bedroom unit. The high market rents are $735 for the one-bedroom unit and $798 for the two-

bedroom unit.

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The subject will not be age restricted and will be rented to those households with incomes from

$28,160 to $66,688. This income range includes 39.8% of the renter households (HH) in the

primary market area.

The primary market area is considered the south side of Indianapolis. This area was chosen

based on discussions with leasing agents within the market and assessments of shared

economic conditions.

The rental market in Southport is strong with an average market occupancy of 94.9% and an

average Section 42 occupancy of 94.8%. The survey used in this market study includes 10

market rate properties and the survey was conducted in April and May 2017.

Comparables are amenity-rich. Most have pools and tennis courts and are all-brick

construction, although several of the newer ones are brick and vinyl. However, in this market,

“newer ones” were constructed 17 years ago. Several comparables have landscaped water

features with a fountain.

Although this report does not analyze low-income families, five-year projections from the

American Community Survey in 2015 show that over 44% of the families in the PMA are rent-

overburdened.

This project is not going to be age restricted. However, the analyst notes that projections show

that the senior households 62 and older in the PMA will increase from 2010 to 2022 by over 41

percent.

The feasibility of the subject is excellent. The PMA has a sizable population that is income

qualified for the subject and the population is projected to increase over the next five years.

The current capture rate as a market rate family project is 4.5%.

Absorption is expected to conservatively be 11 to 12 months. This absorption rate assumes

construction is moderate to high quality and the amenities are similar to the comparables.

The market is strong and the site is a good location.

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Market Analysis Summary

Development Name Southport Mixed Use Total Units 95

Development City Southport Total LIHTC Units 0

Target Population families LIHTC Vacancy Rate 5.2%

New Construction/Rehab/

Adaptive Reuse

New Construction Market Vacancy

Rate

5.1%

Penetration Rate 2.1% (Non age

restricted)

Demographic Data (beginning on page 48)

2010 2016 2019

Population 82,391 89,242 90,872

Renter Households 12,274 34.7% 13,663 38.7% 14,013 38.7%

Renter Households 62+ 2,351 30.1% 2,633 27.3% 2,896 27.6%

Analyst’s Level of Confidence in the Project (beginning on page 115)

High confidence,

no changes needed

X High confidence if

noted changes

occur

Moderate

confidence

Little confidence in

project success

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Scope of Work for the Project The Scope of Work must include the research and analyses that are necessary to develop credible

assignment results. A Scope of Work is acceptable when it meets or exceeds the expectations of

parties who are regularly intended users for similar assignments and what an analyst’s peers’

actions would be in performing the same or a similar assignment. Therefore, the analyst must

identify and consider:

the client and intended users

the intended use of the report

assignment conditions

typical client expectations

typical work by peers for similar assignments

The purpose of the analysis presented here is to determine the feasibility of the proposed LIHTC

multifamily project discussed within this report. The intended use is to aid the client in developing

plans for the use of the site.

The scope of work is identified here:

NCHMA Standard Both principals of Mitchell Market Analysts have the

Professional Member Designation from the National

Council of Housing Market Analysts. This report primarily

complies with the NCHMA Model Content Standard 3.0,

adopted January 14, 2013.

Property Identification: Southport Mixed Use, Southport, IN

Client City of Southport Redevelopment Commission

Intended User City of Southport Redevelopment Commission

Date of Field Work May 10, 2017

Date of Report May 17, 2017

Market Area and Analysis of

Market Conditions

A complete analysis of market conditions has been made.

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Development Description This section describes the proposed project as of the date of the fieldwork for this report.

Photographs of site

The site formerly had a lumber yard. All improvements have been razed.

Looking northeast across the site. Most of the site has a fence around the perimeter.

Looking along the southern border of the site, which fronts East Southport Road.

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These railroad tracks run along the east side of the site.

Standing on the west side of the site on 2nd Street looking south across the site.

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Standing on 2nd Street looking east across the site.

This is the northern border of the site. There is an elevation change between the site’s northern

border and the unimproved land north of it. Little Buck Creek runs along the north side of the site.

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The site is bordered by 2nd Street on the west side. This is the northern end of 2nd Street. It crosses

Little Buck Creek but it is not passable.

This is an unused road over Little Buck Creek. The fieldwork was conducted after several weeks of

heavy rainfall and the creek was almost overflowing the road.

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Looking through the fence southeast across the site.

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Map

The site is located on the south side of Indianapolis in the Southport area.

Page 15

This map shows the location of the subject site. The improvements shown in this aerial have been

razed.

Prior development plans

The Partnership for Affordable Housing submitted an application for low-income tax credits in the

fall of 2013 and won an award in early 2014. The plan was for 95 one- and two-bedroom units for

seniors. Development work continued through 2015 and then stopped. The analyst spoke to Matt

Gaddis, Director of the Partnership for Affordable Housing, and he indicated they were unable to

get investors lined up for the project. Various factors changed the tax credit financing market and

uncertainty spooked investors.

Page 16

The development of a tax credit project is a complex process. The analyst attended a market

analyst conference in March and other analysts all over the country are also reporting problems

with uncertainty in the tax credit financing market. Finance professionals are lobbying Congress to

fix the rate for tax credits rather than letting them float. According to data provided by Novogradac,

the tax credit percentage has been dropping.

Data from Novogradac shows the rate has been hovering between 7.35% and 7.55%. Note that

during 2016 it was trending downward until it hit a low in August.

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Physical characteristics of the subject site

This section describes the physical characteristics of the subject.

Site

Location The site is located on the south side of Indianapolis in the Southport area.

Current Use of the Property The site formerly had a lumber yard. All improvements have been razed.

Site Size Total: 3.25 acres

Topography The site slopes on the northern end toward the creek bed.

Current landscaping and

vegetation

There is no existing landscaping.

Visibility Excellent from East Southport Road

Shape The site is roughly rectangular.

Frontage and Accessibility Access is excellent from East Southport Road and South 2nd Street with

frontage on East Southport Road.

Proximity to adverse or undesirable conditions

The site is adjacent to railroad tracks. According to Federal Railroad Administration Office of Safety

Analysis, the tracks have six daily through trains from 6 AM to 6 PM and two nightly trains from 6

PM to 6 AM. The data is current as of 2016.

Railroads cross many areas in the state. The railroad noise and safety will need to be managed. The

previous development at this site planned to landscape with bushes and trees to absorb the noise

and provide a visual barrier.

The analyst recommends some attention to flood maps. The Marion County GIS system shows part

of the parcel is in a floodway.

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Target Market to be served

The subject will provide new multifamily housing for families with 1 to 4 persons in the household.

Unit mix and rents

This analysis assumes the subject will contain a total of 95 units.

The low and high rents, bedrooms, bathrooms, and size of each unit by rent level are shown in the

following chart.

Utility Allowance

After reviewing what is typical in the market, the analyst assumes that tenants will pay for heat,

cooking, electric, and water heating. The units will have electric heat, electric hot water, and

electric cooking. They will have central air conditioning.

The analyst assumes the subject will pay for water, sewer, and trash; one of the adjustments used

for comparables is the difference in utilities because this impacts the total cost of rentership. The

utility allowance by bedroom type is shown in the following chart.

Unit mix by income level

Unit type # AMI % Bedrooms Bathrooms Unit size, SF

Low Rent

of Subject

High Rent

of subject

One bedroom 35 Market 1 1.0 720 $685 $735Two bedroom 60 Market 2 2.0 900 $738 $798Total 95

1 BR 2 BR

Heating - Electric $52 $64

Cooking - Electric $9 $9

Other Electric $38 $46

Air Conditioning $13 $17

Water Heating - Electric $24 $29

Water $0 $0

Sewer $0 $0

Trash Collection $0 $0

Total $136 $165

Source of utilities: HUD schedule for Marion

County, eff. 1/31/2017

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Transit oriented development

The Walkscore is a measurement created by Walkscore.com that assesses how car dependent the

location is and the accessibility of public transportation.

The subject has a Walkscore of 43, which indicates the subject is car-dependent.

Source: Walkscore.com

The site has sidewalks along Southport Road. Ingress to and egress from the site will occur from

Southport Road and 2nd Street. There are no traffic controls at the site on Southport Road.

Southport Road has a fair amount of traffic. The city might consider a crosswalk or some other

infrastructure to invest in making the site more walkable.

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Land uses around the subject

Surrounding land uses include:

North To the north of the subject is a wooded area and creek, followed by auctioneer

Christy’s of Indiana.

South To the south of the subject are Southport Road and commercial/office properties.

East To the east of the subject are railroad tracks followed by commercial and

residential buildings.

West To the west of the subject is the Southport Antique Mall.

The following photographs of the neighborhood were taken by the staff in our office on the day of

the fieldwork.

Standing at the site looking west along Southport Road. The Southport Antique Mall is on the right

and is adjacent to the site.

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This shows the east side of the Southport Antique Mall where it borders the subject.

This development is across Southport Road from the subject. It is the site of a former Gerdt furniture

store and is now called Southport Station. It has offices and Renaissance Electronic Services.

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Sophia’s Bridal Salon is across Southport Road from the subject. It has a new exterior thanks to the

Southport Redevelopment Plan.

This salon, which is across the railroad tracks from the subject on the east side, was a 2016 nominee

for best hair salon with the The Indy A-List.

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These offices are on the south side of Southport road on the east side of the railroad tracks.

These offices are adjacent to the site on the west side, north of the antique mall.

Retail Corner at Southport and Madison Avenue.

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Strip center along Madison Avenue, northwest of subject.

Looking South on Madison Avenue from Southport Road.

Retail strip center to north.

Zoning of undeveloped land around the site

The subject does not have any undeveloped land around the site.

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Crime in the PMA

The area has a low to moderate amount of crime compared to averages within the county. The

crime index for 2016 was 93.

The Crime Thematics Layers (Total Crime Index) is based on the number of reported crime

incidences per specific census block. The data is gathered annually by Applied Geographic Solutions

(AGS). AGS CrimeRisk offers crime data in the form of several indexes for crimes against both

persons and property. This crime reports seven major crimes: murder, rape, robbery, assault,

burglary, larceny, and motor vehicle theft. The crime index is reported for the PMA selected for the

subject; the crime map shows variations for the crime index within the PMA with the subject

marked.

Source: STDB Crime Thematics Layer, using data from Applied Geographic Solutions

Neighborhood amenities

The subject is located in a mixed use area on the south side of Indianapolis. It is surrounded by

commercial, office, and retail. The subject is specifically located within the Southport Study Area.

This area has been studied with the intent to enhance the quality of life in Southport. The subject is

Page 26

specifically noted in this study to be a mixed use area. The located on the subject is item 3 in the

map below.

1

To the north of the subject is Christy’s of Indiana auction house. The area becomes more residential

until the corner of Edgewood and Southport Roads, approximately one mile north, which contains

retail. This area has a Kroger Grocery store as well as multiple other chain and local stores and

restaurants. Second Street runs to the west of the subject and ends at the north side of the site.

1 Downtown Revitalization Plan, Southport Indiana, March 2012

Page 27

There are plans to continue the road north and connect with a bridge providing a connector over

Little Buck Creek.

To the west is the Southport Antique Mall. It has 36,000 SF of space with items from various

dealers.

The Southport Farmer’s Market is located at the Bethel Memorial Church at 2810 E Southport

Road. The market is open every Tuesday from 10:00 am – 2:00 pm and Thursdays from 3:00 pm –

6:30 pm. The market offers a variety fresh produce, breads and baked goods, sweets and candies,

eggs, handmade craft items, and flowers. The items come from local farmers and craftsmen.

Further west the area becomes more retail in nature, containing chain stores such as Dairy Queen

and Dollar General. There is also local retail including an ethnic grocery story. However, the grocery

store does not contain fresh produce.

To the south are retail and office buildings, followed by a mix of single-family homes and

multifamily properties. There are two vacant office/retail buildings that are targeted as adaptive

reuse as city offices. The area to the south along Madison Avenue is also a commercial corridor. The

majority of the retail fronts Madison Avenue. There is chain retail including a Chase Bank,

Speedway Gas Station, O’Riley Auto Parts, and multiple local retail establishments. Further south,

less than two miles, is a retail area at the corner of Madison Avenue and Stop 11 Road.

The area east after the railroad tracks is a mix of retail and residential. This is an office/retail area

that contains local offices as well as Sage Salon and a Long’s Bakery. Most retail fronts Southport

Road. Continuing east are mostly single-family homes. Less than two miles east is Gray Park. This

park is located at the southeast corner of Southport and Sherman Drive. Gray Park is 7.5 acres of

land with trails running through a riparian corridor. It mostly consists of shrubby prairie bordering a

Page 28

wooded area along Buck Creek. Also located within this corner is a retail/office area that is

contained to the west of Interstate 65. This area contains Southport Square.

The subject’s location provides good access to needed services in the area.

Transportation linkages

In most areas of Indiana, transportation is based on automobile transportation. Public

transportation is described in the next section. The nearest major transportation linkages are I-65,

US 31, Banta Road, Stop 10 Road, Madison Avenue, and Southport Road.

Page 29

Public transportation

Residents at the subject will have access to the following public transportation. Bus #22 is called the

Shelby Route. It has connections with routes 12, 13, 14, 16, and 31.

Source: Indygo

Page 30

Residents at the subject will also have access to Bus 31, which connects to routes 16 and 22.

Source: Indygo

Page 31

Commuting

Commuting in the subject’s county is primarily by driving alone. Most persons employed commute

15 to 29 minutes a day.

Location of the subject in a desirable site

This section shows the subject’s proximity to civic or community sites, services, retail locations, and

healthcare.

Civic or community facilities

Residents at the subject will have access to the following civic or community sites including

childcare, community centers, schools, vocational schools, universities, cultural arts, and public

services:

Business name Physical address

PNC Bank 6912 Madison Ave

Chase Bank 7001 Madison Ave

US Post Office 1701 E Edgewood Ave

China Garden 7015 Madison Ave

Patio Restaurant 7371 Madison Ave

St Francis Health Network 700 E Southport Rd

Dollar Tree 7423 US 31 S

Waffle House 4031 E Southport Rd

McDonald's 4044 E Southport Rd

Walmart Supercenter 7245 US 31 S

Target 2211 E Southport Rd

Dairy Queen 1930 E Southport Rd

Source: Nielsen (Claritas) Source: Nielsen (Claritas)

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

Transportation to Work - Southport Mixed Use PMA Current Year Estimates - 2017

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Less than 15Minutes

15 to 29Minutes

30 to 44Minutes

45 to 59Minutes

60 or MoreMinutes

Travel Time to Work - Southport Mixed Use PMA Current Year Estimates - 2017

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Business name Physical address

Family Dollar Store 8083 Madison Ave Ste B

CVS Pharmacy 15 S Main St

Genoa Health Care LLC 8320 Madison Ave

Dollar General 6908 Madison Ave

LA Fitness 3855 E Southport Rd

Kids Mart 7685 Shelby St

Kroger 5911 Madison Ave

40 Minute Cleaners 7017 Madison Ave

Jacob Deering Cleaners 7007 US 31 S Ste B

Calvary Lutheran School 6111 Shelby St

Southport Middle School 5715 S Keystone Ave

Southport Elementary School 261 Anniston Dr

Homecroft Elementary School 1551 Southview Dr

Southport High School 971 E Banta Rd

YMCA 7900 Shelby St

Southport Police Office 6901 Derbyshire Rd

Indianapolis-Marion County Public Library -

Southport

2630 E Stop 11 Rd

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The map of the civic or community facilities follows:

Page 34

This is a close up view of the neighborhood amenities immediately around the site.

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Description of the market area This section describes and comments on the definition of the primary market area as well as the

location of the subject.

The Primary Market Area (PMA) for the subject

The PMA is the contiguous area surrounding the subject site from which the development is

expected to draw its support. The PMA is defined as the south side of Indianapolis. The boundaries

are shown in the map below. It includes the neighborhoods of Homecroft, Southport, and

University Heights.

The PMA, as defined by roads or streets, follows:

North Interstate 465

South County Line Road

East Emerson Avenue

West White River

Page 36

Homecroft is a small historic area with a population of 308 households in the 2010 Census and a

land area of 0.24 square miles.

The boundaries were chosen based on shared demographic parameters in terms of income and

information from leasing agents within this market.

Distance from the subject to the PMA boundaries

The subject is about 6 miles from the western border of the PMA, 5 miles from the northern

border, 2.2 miles from the eastern border, and 2 miles from the southern border.

Page 37

Market Area Economy In this section, the market area economy is discussed with details on the following:

At-place employment for the subject’s county

Employment by industry sector for the PMA and by industry sector for the county

Average annual earnings by industry for county

Major employers in PMA

Other relevant employment and economic news

Trends in at-place employment

At-place employment indicates the county employment picture is strengthening. From 2011 to

2015, the PMA gained 6.0% in at-place employment, which represents 33,177 jobs.

Source: Indiana Department of Workforce Development

2011 2012 2013 2014 2015

At Place Employment 549,684 563,418 570,773 576,467 582,861

530,000

540,000

550,000

560,000

570,000

580,000

590,000

At Place Employment - Marion County

Page 38

Employment by industry sector

This section includes information for the PMA and compares it to a larger geographical area.

Esri forecasts for 2017 indicate that the PMA’s largest industry sector is Health Care/Social

Assistance with 15.1% of the employed. Retail Trade represents 13.5%. Manufacturing is third with

12.0%.

Similar to the PMA, Marion County’s largest industry sector is Health Care/Social Assistance, with

14.5% of the employed. Retail Trade is second with 12.8%. Manufacturing is third with 10.8%.

Source: Nielsen (Claritas)


8.1%4.4% 0.1%

1.5%

6.1%

7.6%

5.9%

15.1%

1.5%0.0%

12.0%

3.7%

5.5%

4.8%

13.5%

6.0% 4.2%

Employment by Industry - Southport Mixed Use PMA

Accommodation/Food Services

Administrative/Support/Waste Management

Agriculture/Forestry/Fishing/Hunting/Mining

Arts/Entertainment/Recreation

Construction

Educational Services

Finance/Insurance/Real Estate/Rent/Lease

Health Care/Social Assistance

Information

Management of Companies and Enterprises

Manufacturing

Other Services Except Public Administration

Professional/Scientific/Technical Services

Public Administration

Retail Trade

Transportation/Warehousing/Utilities

Wholesale Trade

8.4%5.9%

0.3%1.7%

5.5%

7.3%

6.5%

14.5%

1.9%0.0%

10.8%

4.5%

6.0%

4.2%

12.8%

6.3%

3.3%

Employment by Industry - Marion CountyAccommodation/Food Services

Administrative/Support/Waste Management

Agriculture/Forestry/Fishing/Hunting/Mining

Arts/Entertainment/Recreation

Construction

Educational Services

Finance/Insurance/Real Estate/Rent/Lease

Health Care/Social Assistance

Information

Management of Companies and Enterprises

Manufacturing

Other Services Except Public Administration

Professional/Scientific/Technical Services

Public Administration

Retail Trade

Transportation/Warehousing/Utilities

Wholesale Trade

Page 39

Wages by industry

The subject is targeted to households with a maximum income of $66,688. The most recent data is

for 2015 and the industries likely to yield potential tenants are highlighted in the table below.


Average Annual Earning by Industry

Industry 2011 2015 5 Year

5 Year %

Change

All Industries $48,984 $52,645 $3,662 7.5%

Agriculture, Forestry,

Fishing & Hunting $45,434 $39,809 -$5,624 -12.4%

Mining $45,016 $64,397 $19,381 43.1%

Construction $55,623 $59,731 $4,107 7.4%

Manufacturing $84,797 $86,358 $1,561 1.8%

Wholesale Trade $58,632 $64,462 $5,830 9.9%

Retail Trade $26,835 $29,564 $2,729 10.2%

Transportation &

Warehousing $38,626 $43,121 $4,495 11.6%

Utilities $79,220 $88,612 $9,392 11.9%

Information $65,907 $70,234 $4,327 6.6%

Finance & Insurance $68,393 $78,009 $9,616 14.1%

Real Estate, Renting,

Leasing $41,432 $49,215 $7,783 18.8%

Professional & Technical

Services $68,190 $75,232 $7,042 10.3%

Management of

Companies $82,866 $91,656 $8,790 10.6%

Administration & Waste

Services $28,050 $30,322 $2,272 8.1%

Education Services $36,568 $39,881 $3,313 9.1%

Health Care & Social

Assistance $50,240 $56,953 $6,713 13.4%

Arts, Entertainment &

Recreation $57,598 $64,631 $7,033 12.2%

Accomodation & Food

Services $16,482 $18,182 $1,700 10.3%

Other Services $35,249 $39,424 $4,175 11.8%

Federal, State, and Local

Government $49,945 $53,116 $3,171 6.3%

Page 40

Major employers

The major employers in the county are identified as the following:

This map shows the major employers in relationship to the subject. Some of the employers are in

downtown Indianapolis and their pins cannot be seen because of the scale of the map.

Employees Company Industry City

11,810 Indiana University Health (all

hospitals)

Health Services Indianapolis

17,398 St Vincent Hospitals & Health

Services

Health Services Indianapolis

10,565 Eli Lilly and Company Manufacturing Indianapolis

10402 Community Health Network Hospital Indianapolis

7365 IUPUI Education Indianapolis

6123 Indianapolis Public Schools Education Indianapolis

6600 FedEx Communications Indianapolis

4100 Franciscan St Francis Health Health Services Indianapolis

3688 Eskenazi Health Health Services Indianapolis

3865 Defense Finance & Accounting

Service

Government accounting Indianapolis

4200 Anthem Insurance Indianapolis

4300 Rolls-Royce Manufacturing Indianapolis

Source: The Indy Chamber

Page 41

Recent layoffs and closings

Between 2016 and year to date, 1,908 workers have been affected.

Announced expansions or contractions

Eli Lilly is planning an $85 million expansion in Indianapolis, focusing on its diabetes drug. The

expansion is part of an $850 million investment for 2017. The Indianapolis-based company will

expand its Trulicity device assembly operations, part of a five-year plan to grow its diabetes drug

manufacturing in the U.S. The $850 million investment will fund both projects that are already

underway as well as new projects that will be initiated throughout the course of the year, including

additional projects in Indianapolis. Over the past five years, Eli Lilly has added 400 jobs in

Indianapolis, the company said in a release.

Indianapolis-based Celadon Group Inc. has been approved for nearly $3 million in state tax

incentives for an expansion that the company says will add 375 new jobs by 2024. Celadon, a

trucking and logistics company, is building a $28 million corporate campus in the Mount Comfort

area in Hancock County. The company’s operations are currently located on a 40-acre site at East

33rd Street and Mitthoeffer Road in Indianapolis, but that site is landlocked and offers no room for

expansion.

BSN Sports LLC plans to spend $2.4 million to improve its sportswear production facility on the

Indianapolis northwest side, adding 192 employees over the next six years. BSN, the largest

Company City Affected

Workers

Notice Date LO/CL Date Description of work Notice

Type

hhgregg Indianapolis 268 4/7/2017 5/31/2017 Appliance stores CL

Saran Indianapolis 110 3/10/2017 6/30/2017 Billet mill machinery,

metalworking, manufacturing

CL

MDwise Indianapolis 80 2/16/2017 42842 Health Insurance carriers LO

Briarwood Health and

Rehabilitation

Indianapolis 87 2/1/2017 4/1/2017 Physical Rehabilitation CL

CHEP Recycled Pallet

Solutions

Indianapolis 165 12/27/2016 2/5/2017 Pallet parts, wood,

manufacturing

LO

Rexnord Industries Indianapolis 350 12/15/2016 6/1/2017 Ball and Roller Bearing

Manufacturing

CL

SUEZ Water Indiana Indianapolis 179 10/20/2016 12/20/2016 Water Treatment Plants LO

Community Westview Hospital Indianapolis 187 10/11/2016 12/31/2016 Hospital, general medical and

surgical

CL

Vertellus Specialties Indianapolis 40-50 8/17/2016 10/17/2016 Chemical Manufacturing LO

Indianapolis Haulage Indianapolis &

Yorktown

51 7/15/2016 9/29/2016 Warehousing and storage,

general merchandise

CL

Indianapolis Logistics Indianapolis &

Yorktown

135 7/15/2016 9/29/2016 Warehousing and storage,

general merchandise

CL

Sensient Flavors Indianapolis 86 4/4/2016 12/30/2016 Flavoring concentrates (except

coffee based) manufacturing

CL

CEC Liberty Hall Indianapolis 50 3/11/2016 5/15/2016 Rehabilitation agencies for

offenders

LO

Hogan Transport, Inc. Indianapolis 82 2/1/2016 3/24/2016 General freight trucking LO

ADVANTAGE Health Solutions,

Inc

Indianapolis 78 1/29/2016 3/31/2016 Direct Health and Medical

Insurance Carriers

LO


Page 42

distributor of team sports apparel and equipment in the nation, acquired a 195,000-square-foot

manufacturing plant at 5379 West 76th Street in Pike Township in early 2016. The Dallas-based

company said investments in new manufacturing, tooling, logistics, and IT equipment would turn

the facility into a regional headquarters for production design, manufacturing, and distribution. The

project would help BSN retain 291 employees at the site in addition to adding the new ones.

Torchlite, which connects client companies to freelancers who specialize in digital marketing,

announced that it plans to grow from 16 to 156 by 2019. The Indianapolis-based company, founded

in June, said it is investing $514,086 to triple the size of its Indianapolis offices on Massachusetts

Avenue. In return for the new jobs, the Indianapolis Economic Development Corp. is pledging $2.8

million in tax credits and up to $100,000 in training grants. The firm also is moving into larger

quarters. It has agreed to lease 5,500 square feet on the second floor of the Marott Center, 342

Massachusetts Ave. It currently is on the building's fourth floor. According to TechPoint, Indiana’s

technology initiative, computer and IT jobs in central Indiana grew by 17 percent—more than

double the rate of all occupations—from 2009-2014, creating more than 5,000 jobs.

Salesforce is planning to establish a new headquarters in the former Chase Tower in downtown

Indianapolis, which will be rebranded as Salesforce Tower Indianapolis. The San Francisco cloud

computing giant has leased about 250,000 square feet at Chase Tower on Monument Circle as part

of a massive expansion. The deal includes naming rights, meaning it will soon be called Salesforce

Tower. Salesforce.com Inc. plans to hire more than 800 people downtown by 2021 and invest $40

million over 10 years as part of its expansion. That's on top of an Indianapolis workforce that

already includes nearly 1,400 employees.

Indianapolis-based Renaissance Electronic Services LLC is planning to invest nearly $15 million into

an expansion in central Indiana. The dental claims provider is looking to double its more than 150-

member work force by 2019. Plans include improvements to its existing five facilities as well as

leasing and equipping more than half of a former Gerdt Furniture Store on Southport Road. Its

application development team is set to move into the renovated building in April. It could be

complete by year's end. The company's growth plans include electronic payment processing

services that will be developed and launched over the next three years. Most of the jobs created by

this expansion will involve software development and programming.

Indianapolis-based real estate firm Milhaus plans to expand its operations in Indiana, adding 250

jobs over the next five years. Company officials said they plan to spend more than $1.6 million

before the end of 2020 to lease and equip the headquarters space near downtown, at 460 Virginia

Avenue, in the Fletcher Place neighborhood. Milhaus moved into the space in May after

redeveloping a 12,000-square-foot historic property once known as the Shirley Engraving building.

Additional staff will be added at the headquarters, but most of the new hiring will come from

staffing new and acquired properties around the state, the company said.

Caito Foods Service Inc., a processor and distributor of fresh produce and fresh-prepared foods,

announced plans to expand its headquarters here, creating up to 350 new jobs by 2024. The

Page 43

homegrown-Hoosier company will invest more than $15 million to build a new refrigerated

processing center on its campus at 3120 North Post Road on Indianapolis’ east side. With

construction expected to begin later this year, Caito Foods’ growth will allow it to expand

production of fresh and chilled food.

Cincinnati-based grocer The Kroger Co. recently announced a wide-ranging plan to beef up its

operations in central Indiana, including creating or remodeling dozens of stores, establishing a

regional training center, and creating an estimated 3,440 jobs. The supermarket firm expects to

invest at least $464 million in its growth plan for the nine-county Indianapolis area. The four-year

plan began in 2014, and projects are expected to extend through 2017.

Chicago-based Geofeedia, the company behind a popular social media intelligence platform,

recently announced that it plans to expand its downtown Indianapolis operations, creating up to

336 jobs by 2020. Geofeedia said it will invest $2.9 million to lease and equip a 9,200-square-foot

office in Circle Tower on Monument Circle. The company said it plans to make the location its

largest office. It will focus on developing predictive software technology used by consumer brands,

media organizations, and public safety agencies.

Trends for resident employment and unemployment

According to the Indiana Economic Development Corporation’s (IEDC) website, Indiana is home to

the orthopedics capital of the world. The state boasts the world’s second-largest automotive

industry and has developed the most university supercomputing capacity of any United States

campus. Additionally, Indiana leads the nation in manufacturing jobs creation.2 Newsmax Media’s

newsmax.com lists Indiana’s top five industries as automobiles, life sciences, transportation,

information technology, and research and design.3

16 Tech is a new planned Innovation Community, located in the heart of downtown Indianapolis.

Plans for the community span acres of prime real estate, along Indiana Avenue between 10th Street

and 16th Street. Adjacent to the Indiana University-Purdue University Indianapolis (IUPUI) campus,

16 Tech is surrounded by water and trails along the White River and Fall Creek. It is situated next to

one of the largest concentrations of research clusters in Indianapolis’ urban core, surrounded by

2 Indiana Economic Development Corporation. Industry Sectors. Retrieved on August 3, 2016 from

http://iedc.in.gov/industries

3 Groenfeldt, Tom (2015, April 5). Top 5 Industries in Indiana: Which Parts of the Economy are Strongest? Retrieved on August 3, 2016 from http://www.newsmax.com/FastFeatures/industries-indiana-economy/2015/04/05/id/636527/

Page 44

67% of the city’s growth industries and flanked by residential neighborhoods.4

An anchor tenant, The Indiana Biosciences Research Institute (IBRI), has plans for 100,000 square

feet of research and office space at 16 Tech. This $360 million industry-led, first-of-its-kind institute

in the country, will be entrepreneurial, developing science funded in large part by private sector

investors to advance health outcomes. 5

According to its website, the 16 Tech Innovation Community is one of the largest talent attraction,

retention, and development opportunities in Indianapolis’ history. 16 Tech is planned to attract top

talent from around the world to collaborate, innovate, and commercialize new ideas, advancing

industries important to Indiana including life sciences, technology, and advanced manufacturing. 6

Indiana leads the country in manufacturing job growth and is home to the second largest

automotive industry. Indiana is the only U.S. location to have Honda, Subaru, and Toyota auto

assembly plants inside a single state.7 According to Robert Kavcic, senior economist at BMO Capital

Markets, the auto sector has helped the employment picture in Indiana, with durable goods

manufacturing employment up 6 percent year-over-year. According to Dr. Michael Hicks, professor

of economics and director of the Center for Business and Economic Research at Ball State

University, manufacturing, largely related to transportation, accounts for one in four of the state’s

jobs. The recreational vehicle business, centered in Elkhart County, accounts for about 80 percent

of the RV’s produced in the country. Elkhart County has 20,000 employees a day who commute

from other countries. 8

Regarding life sciences, a recent industry report from BioCrossroads has Indiana’s exports totaling

$9.8 billion. This is the second highest in the country. The state also boasts the world’s largest

private medical device manufacturer.9 According to Republican Senator Dan Coats, “Medical device

manufacturers directly employ 20,000 Hoosiers and indirectly support thousands of additional jobs.

These are jobs that pay, on average, 56 percent higher wages than the average wage rate in

4 16 Tech. Master Plan. Retrieved on August 3, 2016 from http://www.16techindy.com/about/

5 16 Tech. Master Plan. Retrieved on August 3, 2016 from http://www.16techindy.com/about/

6 16 Tech. About. Retrieved on August 3, 2016 from http://www.16techindy.com/about/

7 Indiana Economic Development Corporation. Advanced Manufacturing. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/advanced-manufacturing


9 Indiana Economic Development Corporation. Life-sciences. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/life-sciences

Page 45

Indiana.” Additionally, Warsaw, Indiana is known as the Orthopedic Capital of the World, with

upwards of 50 manufacturers.10

75% of the nation’s population is within a day’s drive of Indiana. This makes transportation,

including trucking, rail, warehousing, and distribution, a critical sector in the state.11 According to

the Indiana Economic Development Corporation, Indiana is a leader in global logistics. Companies

are offered a strong competitive advantage when it comes to reaching North American and world

markets from Indiana. The state is a national leader in pass-through interstates, has the second

largest FedEx air hub worldwide, and is third in total freight railroads. Boasting three maritime

ports that together rank seventh in waterborne shipping, Indiana provides the only statewide port

system with direct waterway access to two U.S. coasts. These resources support logistics-related

businesses while encouraging companies to expand or locate their operations here in Indiana.12

With a 70% higher computer and information technology job growth rate than the rest of the

country, Indiana is leading a Midwest transformation as a Tech Belt state. According to a Techpoint

survey, “Since 2007, 12 tech community companies in Central Indiana have either been acquired or

have gone public, generating $4.5 billion in market value and creating more than 3,700 Indiana

jobs.”13

In Indiana, research and design is a billion dollar business in university research alone, according to

Michael Hicks, professor of economics and director of the Center for Business and Economic

Research at Ball State University.14 Recently, Purdue University was ranked sixteenth in the world

for university-issued patents. Purdue is home to more supercomputing capacity than any other

campus in the country, boasting three of the top 500 supercomputers in the world.15 In June 2016,

Purdue Research Foundation and Browning Investments LLC, announced a partnership to develop

the Purdue Innovation District. The plans for the project detail an environment for educational,



12 Indiana Economic Development Corporation. Logistics and Transportation. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/logistics-and-transportation

13 Indiana Economic Development Corporation. Information Technology. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/information-technology



Page 46

economic, cultural, community, and real estate development. John Hirschman, president and CEO

of Browning is quoted as saying, “This opportunity is unique in its scale and potential impact as a

catalyst for innovation, collaboration, and entrepreneurialism."16 Additionally, the launch of Indiana

University’s Internet2, a shared effort to bring nationwide research and education network online,

is a huge contribution towards powering the data that will deliver the next wave of innovation to

the global marketplace.17

Indiana is impacting the global market through a wide range of industries. These industries provide

jobs within the state and further contribute to an economic environment committed to success and

building a secure future for Indiana.

Unemployment for county

The unemployment rate in the county has mirrored the rate for the state. Unemployment is at a

10-year low:

Conclusion

The PMA, like most of the state, has recovered from the recession. Unemployment is low and

multiple companies are announcing job expansions. However, there is a fundamental shift

16 Sequin, Cynthia (2016, June 13). Purdue University News: Purdue, Browning Partner on $1 Billion Development District to Transform West Side of Campus. Retrieved on August 4, 2016 from https://www.purdue.edu/newsroom/releases/2016/Q2/purdue,-browning-partner-on-1-billion-development-district-to-transform-west-side-of-campus.html


Source: Indiana Department of Workforce Development - Research and Analysis. Annual rate until current year. Current year is the

current month rate.

4.94.5

5.6

9.110

9.48.7 8.4

6.5

54.4

3.85

4.6

5.8

9.810.2

98.4

7.7

6

4.84.4

3.8

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mar 2017

Perc

ent

Une

mpl

oyed

Unemployment Rate - 2006 to Mar 2017

Marion County Indiana

Page 47

occurring in the retail business as more retailers announce layoffs. Since retail trade is the second

largest area of employment in the PMA, this bears watching.

Page 48

Demographic data This section presents demographic trends and analysis based on the data available. All household

data is from HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc. based on a

Custom Tabulation of 2006-2010 American Community Survey Data by the U.S. Bureau of the

Census; estimates for 2016 and projections for 2021 by Nielsen, Inc.). Data from the 2006-2010

American Community Survey is listed in the charts as 2010. HISTA Data for 2000 is produced by

Nielsen, Inc., based on a Custom Tabulation of 2000 SF3 Data by the U.S. Bureau of the Census.

Each chart with household data is indicated with a data source of HISTA Data from Ribbon

Demographics, LLC (produced by Nielsen, Inc.).

Total population and households

The following charts show the total population and households.

Population

Census data indicates the PMA experienced an increase in total population in the PMA from 2000

to 2010 of an annual change of 2.21%. From 2010 to 2017, an increase of 2.44% per year is

estimated and an increase of 0.92% per year is projected for 2022.

The county reflects similar trends in population.


800,000

820,000

840,000

860,000

880,000

900,000

920,000

940,000

960,000

980,000

1,000,000

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Census 2000 Census 2010 Current Year Estimates2017

Five-Year Projections2022

Total Population: Southport Mixed Use PMA and Marion County

Southport Mixed Use PMA Marion County

Page 49

Households

Estimates show that the households in the PMA increased from 2010 to 2017, with an annual rate

change of 1.46%. Projections show an increase from 2017 to 2022, with an annual rate of change of

0.79%.

Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)

Population and households by age group

Population

In 2010, the largest cohort was the 25 - 34 age group with 15.9% of the population, followed by the

45 - 54 cohort with 13.6%. In 2017, estimates indicate the largest cohort will remain 25 - 34 with

Data source: HISTA Data from Ribbon Demographics. Data from the 2006-2010 ACS is l isted

as 2010; estimates for 2016 and projections for 2021 by Nielsen, Inc. Other years are a

straightline projection by the analyst.

29,000

30,000

31,000

32,000

33,000

34,000

35,000

36,000

37,000

2010 2017 2018 2019 2020 2021 2022

32,067

35,33635,616

35,89636,175

36,45536,735

Total Households: PMA, 2010 to 2022

Page 50

16.2%, followed by the 35 - 44 cohort with 13.2%. In 2022, projections indicate that 35 - 44

becomes the largest cohort with 14.7%, followed by 25 - 34 with 13.8%.


Households

The number of senior households are increasing. From 2010 to projections for 2022, households

headed by persons 55 and younger will increase annually by 0.3%. Households headed by persons

55 to 62 years of age will increase annually by 2.8% and households headed by persons 62 and

older will increase annually by 3.5%. Projections show that from 2010 to 2022, senior households

will increase from 7,816 to 11,053, which represents an increase of 41.4%.


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0 - 4 5 - 9 10 - 14 15 - 17 18 - 20 21 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+

Population by Age Group - Southport Mixed Use PMA

2010 2017 2022

20,000

20,200

20,400

20,600

20,800

21,000

21,200

2010 2017 2018 2019 2022

20,420

21,118 21,126 21,134 21,157

Total households in PMA by Age: Under 55

0

5,000

10,000

15,000

20,000

25,000

30,000

2010 2017 2018 2019 2022

Age 62+ 7,816 9,661 9,939 10,218 11,053

Age 55+ 11,647 14,218 14,490 14,762 15,578

Total households in PMA by Age: 55 - 62+

Age 55+ Age 62+

Page 51

Households headed by seniors

From 2010 to 2022, projections indicate the total households in the PMA headed by non-senior

persons will decrease from 75.6% to 69.9%. Projected households headed by seniors 62 and older

will increase from 24.4% to 30.1%.


Households by tenure

Estimates indicate renter households in the PMA increased from 2010 to 2017 by 1,389

households. Estimates and projections indicate this trend will continue.


Non-seniors75.6%

Seniors 62+24.4%

Households in PMA 2010 Headed by Seniors 62+

Non-seniors Seniors 62+

Non-seniors, 69.9%

Seniors 62+, 30.1%

Households in PMA 2022 Headed by Seniors 62+

Non-seniors Seniors 62+

19,793 21,673 22,488

12,27413,663 14,247

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2010 2017 2022

Households by tenure - All ages

Owner households Renter households

Page 52

Households by income

The following information provides the total households in the PMA by number of persons in

households broken down by income as of 2010, 2017, and 2022.

In 2010, the largest group of households was the group earning $75,000-100,000, followed by the

group earning $60,000-75,000, and then the group earning $30,000-40,000. In 2017, estimates

indicate that the largest group of households is that earning $75,000-100,000, followed by $60,000-

75,000, and then $40,000-50,000. Projections show that in 2022 the largest group of households

will earn $75,000-100,000, then $60,000-75,000, and $20,000-30,000.


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

$0-10,000

$10,000-20,000

$20,000-30,000

$30,000-40,000

$40,000-50,000

$50,000-60,000

$60,000-75,000

$75,000-100,000

$100,000-125,000

$125,000-150,000

$150,000-200,000

$200,000+

2010 1,798 3,191 3,182 3,886 3,407 3,054 4,051 4,174 2,719 1,313 915 377

2017 2,240 3,869 3,910 3,463 3,923 3,294 4,029 4,435 2,606 1,617 1,258 692

2022 2,208 3,750 3,818 3,521 3,732 3,448 4,140 4,715 2,970 1,895 1,554 984

HO

USE

HO

LDS

Households by Income in the PMA

2010 2017 2022

Page 53

Average household size

In 2000, the average persons per household in the PMA was 2.4218. Estimates indicate that the

average in 2010 was 2.45 and projections indicate it will be 2.49 in 2017. In 2022, projections

indicate it will be 2.51 per household.

The total households in the PMA are shown by the number of persons in the household in this

chart.


18 Nielsen (Claritas.)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1-Person 2-Person 3-Person 4-Person 5+-Person

2010 9,152 10,909 5,120 3,980 2,906

2017 10,008 11,713 5,781 4,326 3,508

2022 10,366 12,077 6,041 4,493 3,758

Total Households by Household Sizein the PMA

2010 2017 2022

Page 54

Population in group quarters

This chart shows the population in group quarters compared to the same data for the state of

Indiana.

Renter households by persons in household

In 2010, the largest group of renter households in the PMA was estimated to be the 1-person

households. The second largest was 2-person households and the third was 3-person households.

Institution Type Number

Percent of total

population Number

Percent of total

population

Noninstitutional 15 0.0% 92,143 1.39%

College/University Student Housing - 0.0% 75,857 1.14%

Military Quarters - 0.0% 254 0.00%

Other Facilities 15 0.0% 16,032 0.24%

Institutional 405 0.5% 97,761 1.47%

Correctional Facilities for Adults - 0.0% 50,608 0.76%

Juvenile Facilities - 0.0% 4,180 0.06%

Nursing Home 405 0.5% 41,596 0.63%

Other Facilities - 0.0% 1,377 0.02%

Total in group quarters 420 0.5% 189,904 2.9%

Total population 88,427 6,638,123

Source: Ribbon Demographics; Nielsen (Claritas)

Group Quarters Population by TypeCurrent Year Estimates - 2017

Southport Mixed Use PMA State of Indiana

Page 55

In 2022, projections indicate the largest group of renter households will be 1-person households,

followed by 2-person, and 3-person households.


0

1,000

2,000

3,000

4,000

5,000

6,000

1-person 2-person 3-person 4-person 5+-person

2010 5,068 3,293 1,720 1,254 939

2017 5,688 3,515 1,887 1,339 1,234

2022 5,917 3,583 1,972 1,408 1,367

Renter Households by Persons in the Household in the PMA

2010 2017 2022

Page 56

Demand Analysis All the household data in this section originates from Ribbon Demographics HISTA data. On the few

occasions when the data comes from somewhere else, it is footnoted.

Determining income and age-eligible households

To determine the feasibility of the subject, it must be determined if a large enough segment of the

population can afford the subject’s rent, but not exceed the allowable income for the subject. For

the subject, a household cannot pay more than 35% for family projects.

Minimum income

Because no subsidies exist, the household must have sufficient income to pay the rent. The lowest

gross rent, including utility costs, is annualized and divided by 35% (rent to income ratio)19.

Therefore, minimum income level for each unit type is calculated by annualizing the rent and

utilities:

((Monthly rent + utilities + non-optional charges) * 12 months)/(35%)

Maximum income

The maximum income levels for market rate units vary by project. For tax credit properties, market

rate units target those earning 80% of the area median income (AMI). For this project, the analyst

chose a maximum income of 100% of the AMI.

It is assumed the maximum household size is two persons per bedroom. Therefore, the maximum

household income for the one-bedroom unit is for a two-person household and for the two-

bedroom unit it is a four-person household.

For the one-bedroom units, the Marion County AMI for two-person households is $53,375. The AMI

for a four-person household is $53,350.

Once the income parameters are set, the number of households within these brackets can be

determined. Those within the income bracket will be considered income-eligible or qualified

households.

19 IHCDA, Qualified Allocation Plan 2016-2017, specifies the market analyst should use a rent burden for family households of 35% and for 40% for senior households.

Page 57

Renter percentage

One of the primary variables in calculating capture rates is the percentage of renters. Lower-income

households have a higher percentage of renters compared to all households within an area. To

determine the renter percentage specific to the income levels appropriate for this subject, we

determine the number of renter households and the total households that that are income eligible.

These charts show the calculation to determine how many renter households are income eligible.

Non Age Restricted Renter Households

$28,160 Minimum income

0% $0-10,000

0% $10,000-20,000

18% $20,000-30,000

100% $30,000-40,000

100% $40,000-50,000

100% $50,000-60,000

45% $60,000-75,000

0% $75,000-100,000

0% $100,000-125,000

0% $125,000-150,000

0% $150,000-200,000

0% $200,000+

$66,688 Maximum income

Renter households in PMA 2017

Income brackets # HH % eligible # HH eligible

$0-10,000 1,442 0% 0

$10,000-20,000 2,650 0% 0

$20,000-30,000 2,372 18% 436

$30,000-40,000 1,617 100% 1,617

$40,000-50,000 1,624 100% 1,624

$50,000-60,000 1,299 100% 1,299

$60,000-75,000 1,230 45% 548

$75,000-100,000 939 0% 0

$100,000-125,000 300 0% 0

$125,000-150,000 164 0% 0

$150,000-200,000 119 0% 0

$200,000+ 139 0% 0

Total 13,897 5,525

Page 58

These charts show how many total households, both renter and owner, are income eligible.

Therefore, the renter percentage specific to the income-eligible households is 5,525/13,217 or

41.8%.

Minimum and maximum income for the subject

Using the methodology and assumptions discussed, the minimum and maximum income for the

subject’s units is summarized here:

Non Age Restricted Total Households


0% $0-10,000

0% $10,000-20,000

18% $20,000-30,000

100% $30,000-40,000

100% $40,000-50,000

100% $50,000-60,000

45% $60,000-75,000

0% $75,000-100,000

0% $100,000-125,000

0% $125,000-150,000

0% $150,000-200,000

0% $200,000+


Income brackets # HH % eligible # HH eligible

$0-10,000 2,227 0% 0

$10,000-20,000 3,821 0% 0

$20,000-30,000 3,873 18% 713

$30,000-40,000 3,486 100% 3,486

$40,000-50,000 3,847 100% 3,847

$50,000-60,000 3,356 100% 3,356

$60,000-75,000 4,073 45% 1,816

$75,000-100,000 4,547 0% 0

$100,000-125,000 2,752 0% 0

$125,000-150,000 1,728 0% 0

$150,000-200,000 1,376 0% 0

$200,000+ 809 0% 0

Total 35,896 13,217

Southport Mixed Use with Low Rent

Target tenant: families

Unit Type

Num of

units

Income

Level Low Rent Utility

Gross

Rent

Minimum

Income

Maximum

Income

One bedroom 35 Market $685 $136 $821 $28,160 $53,375

Two bedroom 60 Market $738 $165 $903 $30,976 $66,688

Page 59

Demand from new renter households

New renter households in the PMA are determined by the following. This calculation is done by

AMI level in the demand worksheet.

Total households in the PMA in the year placed in service, less

- Total households in the PMA for the current year

* Multiplied by the percentages of households that are renters in the year placed in service

* Multiplied by the percentages of renter households that are income qualified

= Equals the demand from new renter households

Other potential tenants

In the PMA, 44.1% of the households are considered to be rent-overburdened; that is, paying more

than 35% of their income for rent.

These households are not included in the demand analysis. However, this indicates there is a still a

demand for quality housing for low-income tenants.

Income-eligible senior homeowners likely to convert to rentership

The subject is not age restricted, so no senior homeowners are considered part of the demand.

Following are the tables indicating the percent of eligible households for each unit type for the

subject.

Gross Rent as % of Household Income - used for familiesTotal renter HH in PMA 14,190Renter HH paying 35 to 39% of income 1,277Renter HH paying 40 to 49% of income 1,569Renter HH paying 50% and more of income 3,418

Total rent overburdened 6,264

Percentage 44.1%

Source: ACS 2015 5-Year Estimates. Table B25070, Gross Rent as a

Percentage of Household Income in the Past 12 Months.

Page 60

All data is from HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc. based on a

Custom Tabulation of 2006-2010 American Community Survey Data by the U.S. Bureau of the

Census; estimates for 2017 and projections for 2022 by Nielsen, Inc.).

Page 61

Eligible households by income brackets

This section shows the eligible households by income level for the subject. Family projects use total

households for the year placed in service; age-restricted projects use households headed by seniors

62 and older. In addition, for senior households, the number of households is restricted to one- and

two-person households rather than all households 62 and older.

Eligible households by income bracket for market-rate units

For market rate units, the maximum income depends on the target households and the

characteristics of the neighborhood. For this project, the analyst chose the maximum income as

households earning 100% AMI households.

Movership rate

The American Housing Survey (AHS), from the U.S. Census Bureau, surveys select metropolitan

areas for specific information about housing. The AHS 2011 survey, the most recent survey

Market$28,160 Minimum income

0.0% $0-10,0000.0% $10,000-20,000

18.4% $20,000-30,000100.0% $30,000-40,000100.0% $40,000-50,000100.0% $50,000-60,00044.6% $60,000-75,0000.0% $75,000-100,0000.0% $100,000-125,0000.0% $125,000-150,0000.0% $150,000-200,0000.0% $200,000+


Renter households in PMA 2019 - Market RateIncome brackets # HH % eligible # HH eligible$0-10,000 1,442 0.0% 0$10,000-20,000 2,650 0.0% 0$20,000-30,000 2,372 18.4% 436$30,000-40,000 1,617 100.0% 1,617$40,000-50,000 1,624 100.0% 1,624$50,000-60,000 1,299 100.0% 1,299$60,000-75,000 1,230 44.6% 548$75,000-100,000 939 0.0% 0$100,000-125,000 300 0.0% 0$125,000-150,000 164 0.0% 0$150,000-200,000 119 0.0% 0$200,000+ 139 0.0% 0Total 13,897 5,525

Page 62

available for the area, included the Indianapolis-Carmel Metropolitan Area and provides the

necessary information to estimate the movership rate of renters in Indianapolis.

The existing income-eligible households are multiplied by the movership rate to determine the

likely number of households that would rent at the subject.

Recently developed rental units

The demand calculation needs newly developed units or units in the pipeline to be counted in order

to subtract for the demand. This section lists properties in the PMA that fit into one of these

categories:

New tax credit projects that have been awarded credits but have not yet started leasing

New tax credit projects that have been constructed but have not reached 95% occupancy

The most recent tax credit project was a senior project in 2008. Brookhaven at County Line is a

Herman & Kittle project with 271 one- and two-bedroom units. However, as a senior project it is

not competitive.

Autumn Chase and Grand Oaks were both constructed in 2000. There are no new Section 42

multifamily properties in the PMA. Therefore no units are subtracted in the demand calculation as

Comparable Units (proposed or new construction).

Several newer market rate properties are have come into the market north of the subject near the

intersection of Edgewood and Madison Avenue. 5700 Madison opened in February 2014 with

studio, one-, and two-bedroom units. It is north of Edgewood Avenue. The rents range from $555

to $925. Edgewood on Madison, south of Edgewood Avenue, opened in September 2015 with

studio, one-, and two-bedroom units. The rents range from $595 to $925. Both properties are

managed out of the same office at 5700 Madison. The leasing agent did not disclose the current

occupancy but indicates their renewal rate is “very strong.”

Estimate of absorption period

The absorption rate represents how many units are expected to fill per month at a new property. It

estimates the overall lease-up period.

Geography: Indianapolis-Carmel Metropolitan AHS AreaTotal respondents, renter-occupied units 221,200Respondents who moved during the past year 84,600Movership rate 38.2%

Source: American Housing Survey 2011 C-07-RO-M Housing and

Neighborhood Search and Satisfaction, Renter-Occupied Units

Page 63

Millikan on Mass is a 64-unit, mixed-income, market rate property in downtown Indianapolis from

the Indianapolis Housing Agency. Phase III of the project only has market rate units and it opened in

December 2015. It leased up at 5 to 6 units per month.

The Residences at CityWay opened the first units in downtown Indianapolis in 2013. The first 250

units leased at 14 units per month.

Other lease ups of nearby areas that occurred from 2015 to 2016 include:

Pointe at Fall Creek – 14 units per month

Englewood Lofts – 5 units per month – delayed with a fire during lease up

This indicates a lease up of 5 to 14 units per month. The analyst has chosen a conservative rate of 7

to 8 units per month. At this rate, it will take 11 to 12 months to reach 95% occupancy.

Capture rate

The methodology used to determine the capture rate is described with an example in the

addendum Example of demand calculation on page 124.

The capture rate is the percentage of the market a property needs to reach a stabilized occupancy.

In the PMA, the subject will need to capture about 4.5% of the income-qualified households to

reach 95% occupancy.

The Valuation and Market Studies for Affordable Housing defines the capture rate as:

The percentage of age, size, and income-qualified renter households in the primary market

area that a property must capture to achieve the stabilized level of occupancy. Funding

agencies may require restrictions to the qualified households used in the calculation,

including age, income, living in substandard housing, movership, and other comparable

factors.

A capture rate measures the ratio of total units proposed to the number of income-qualified

households in the market area20.

Typically, lower capture rates predict success for proposed multifamily properties. Capture rates

greater than 10% generally represent some risk in the market. However, this is the strictest test of a

20 “Recommended Practices for Determining Demand,” a white paper published by the National Council of Affordable Housing Market Analysts, 2008.

Page 64

capture rate, using only those age- and income-eligible renter households not currently served by

the market, or current demand. Capture rates for age-restricted properties tend to be higher.

This is one of several approaches to determining the reasonableness and potential success for the

property.

Page 65

Market Rate Demand as of 2019

Project Total

Minimum Income Limit $28,160

Maximum Income Limit $66,688

Total housholds in PMA as of 2019 35,896

Total renter housholds in PMA as of 2019 13,897

Number of renter households in PMA in 2018 in the

specified income band 5,525

Multiplied by

Movership rate (renters likely to move) 38.2%

Equals

Number of likely income-eligible renter housholds

who will move 2,113

Minus 0

Competitive units not yet leased 0

Equals

Net Demand 2,113

Divided by

Proposed units at the subject 95

Equals

Capture Rate 4.5%

Total Absorption Period 11 to 12 months

Demand Calculation Inputs

2017 Total Households (Base Year) 35,336

2017 Total Renter Households (Base Year) 13,663

2019 Total Households (Placed in Service) 35,896

2019 Total Renter Households (Placed in Service) 13,897

Page 66

Penetration rate for the PMA

The penetration rate is the percentage of age- and income-qualified households in the PMA that all

existing and proposed affordable properties, to be completed within six months of the proposed

development, and which are competitively priced to the subject, must capture to achieve the

stabilized level of occupancy (95%) to the total households of the PMA.

The penetration rate is another indicator of a property’s success in a market. The penetration rate

is calculated by dividing the total income-qualified renter households into the number of units

required to reach stabilized occupancy of 95%.

For this calculation, all households are included.

Two market rate comparables, Sundance at the Crossing and Southport Crossing, are 92% occupied.

They need to lease another 3% of their units to be at stabilized occupancy. Therefore 14 units at

Sundance at the Crossing and 10 units at Southport Crossing are included as competitive units.

A. Total HH, renter and owner, that are

income eligible

5,799

B. Number of subject units 95

C. Number of competitive units 24

D. Penetration rate ((B + C)/A) 2.1%


0% $0-10,000

0% $10,000-20,000

18% $20,000-30,000

100% $30,000-40,000

100% $40,000-50,000

100% $50,000-60,000

67% $60,000-75,000

0% $75,000+


Market area 2019 - Renter HouseholdsIncome brackets # HH % eligible # HH eligible

$0-10,000 1,442 0% 0

$10,000-20,000 2,650 0% 0

$20,000-30,000 2,372 18% 436

$30,000-40,000 1,617 100% 1,617

$40,000-50,000 1,624 100% 1,624

$50,000-60,000 1,299 100% 1,299

$60,000-75,000 1,230 67% 823

$75,000+ 1,662 0% 0

Total 13,897 5,799

Page 67

Supply Analysis

Overview of market rate and tax credit rental properties

While researching the supply, we contacted multiple properties. The analyst identified some

communities as not competitive or outside of the PMA. All LIHTC properties in the PMA were

targeted as well as most market rate properties. The survey was conducted by our office in April

and May 2017.

Approximately 14 properties are shown in the following grids. The range of the communities

provides a good indication of Section 42 and market rents for the PMA. The comparables are

included with a summary grid following. All apartments in the PMA are listed and those considered

competition are discussed fully.

Because the subject is not age restricted, no senior properties were included in this report. The

survey focused on properties with unit types similar to the subject: one-bedroom and two-

bedroom units.

Properties that were eliminated from the survey include:

Those with fewer than 10 units

Senior properties

Grand Oaks, one of the newer comparables, is not age restricted but it has a design that would be

appealing to seniors. It is included in the survey but not used to derive a market rent.

Stratford Place is a Section 42 property outside the northeast corner of the PMA. It is included in

the overall Section 42 occupancy rate because the PMA only has 3 non age-restricted properties.

Of the properties surveyed:

10 rented at market rates.

4 are income-restricted Section 42 properties.

Page 68

Occupancy rates of each comparable

For additional support of the immediate need for housing within an area, the occupancy rates need

to be examined. Of the properties surveyed, the occupancy rates ranged from 86.5% to 100.0%

with an average of 94.9%.

The occupancies for the market rate comparables are shown here:

Property No. of units Occupancy # Vacant Market

Sundance at the Crossing 4/17 455 92% 36 Market

Autumn Chase 4/17 176 97% 5 Market

Southport Crossing 4/17 328 92% 26 Market

Buckridge 5/17 80 100% 0 Market

Waterford Place 4/17 260 97% 9 Market

Creekside South 4/17 190 96% 8 Market

The Sycamores 4/17 210 99% 2 Market

Windsor Court 4/17 342 99% 3 Market

Grand Oaks 4/17 120 97% 4 Market

Madison Village 4/17 192 86% 26 Market

Valley Forge 4/17 140 100% 0 Sec 42

Bradford Lake 4/17 358 96% 14 Sec 42

Berkley Commons 4/17 544 92% 44 Sec 42

Stratford Place 5/17 120 98% 3 Sec 42

Total 3,515 94.9% 180

Area Occupancy - Total Market


Sundance at the Crossing 4/17 455 92% 36 Market

Autumn Chase 4/17 176 97% 5 Market

Southport Crossing 4/17 328 92% 26 Market

Buckridge 5/17 80 100% 0 Market

Waterford Place 4/17 260 97% 9 Market

Creekside South 4/17 190 96% 8 Market

The Sycamores 4/17 210 99% 2 Market

Windsor Court 4/17 342 99% 3 Market

Grand Oaks 4/17 120 97% 4 Market

Madison Village 4/17 192 86% 26 Market

Total 2,353 94.9% 120

Area Occupancy - Market Rate

Page 69

Of the LIHTC properties surveyed, occupancy rates ranged from 92.0% to 100.0% with an average

of 94.8%. This equates to a vacancy rate of 5.2%.

The occupancies for the Section 42 projects follow:

Overall vacancy rates in most area properties are low. Typically, where vacancy rates are lower than 7

to 8 percent, more units are needed. The overall vacancy is 5.1%, which indicates a need for more

units.

Summary of occupancy rates

The market occupancies are strong.

Market type Occupancy Minimum Occupancy Maximum Average Occupancy

Market 86.5% 100.0% 94.9%

Section 42 92.0% 100.0% 94.8%


Valley Forge 4/17 140 100% 0 Sec 42

Bradford Lake 4/17 358 96% 14 Sec 42

Berkley Commons 4/17 544 92% 44 Sec 42

Stratford Place 5/17 120 98% 3 Sec 42

Total 1,162 94.8% 60

Area Occupancy - Section 42

Page 70

Market rate comparables

This section summarizes the amenities compared to the subject and provides full details on each of

the selected comparables.

Amenities: comparing the subject to market rate comparables

The following chart compares the subject to the selected market rate comparables in terms of

kitchen amenities, unit amenities, and project amenities. Note that 9 of the 10 comparables have

pools and all of them have central air conditioning.

The subject is not listed here with the comparables because the details of the amenities have not

yet been determined.

Details on market rate comparables

These comparables were selected because they are market rate properties within the PMA without

age restrictions that have one-bedroom or two-bedroom units or both.

Appliances

Property Name Stove Refrig Dishwasher Disposal Microwave

Sundance at the Crossing 4/17 X X X X X

Autumn Chase 4/17 X X X X X

Southport Crossing 4/17 X X X

Buckridge 5/17 X X X X X

Waterford Place 4/17 X X X X

Creekside South 4/17 X X X

The Sycamores 4/17 X X X X

Windsor Court 4/17 X X X X X

Grand Oaks 4/17 X X X X X

Madison Village 4/17 X X X X

Unit Amenities

Property Name Central AC

Window

AC

Washer/

Dryer

W/D

Hookup

Patio/

Balcony

Window

Cover

Pull

cords/Call

Buttons Garage Carport

Sundance at the Crossing 4/17 X X X X X X

Autumn Chase 4/17 X X X X

Southport Crossing 4/17 X X X X

Buckridge 5/17 X X X

Waterford Place 4/17 X X X X X

Creekside South 4/17 X X X X

The Sycamores 4/17 X X X X

Windsor Court 4/17 X X X X X

Grand Oaks 4/17 X X X XMadison Village 4/17 X X X X

Property Name Year Built Pool

On-Site

Mgt

Laundry

Facilities Clubhouse

Fitness

Center

Play

ground

Computer

room

Sports

Court Storage Picnic Area Security

Comm.

Services Other

Sundance at the Crossing 4/171990, 1995 X X X X X X X

Autumn Chase 4/17 2000 X X X X X X

Southport Crossing 4/17 1968 X X X X

Buckridge 5/17 1964 X X X

Waterford Place 4/17 1987 X X X X X

Creekside South 4/17 1982 X X X X X

The Sycamores 4/17 1962 X X X X X

Windsor Court 4/17 1986 X X X

Grand Oaks 4/17 2000 X X X

Madison Village 4/17 1970 X X X X

Project Amenities

Page 71

Name Date

Address On site manager

City Property Contact

State phone #

County Management Company

Condition Occupancy

Specials If <90% reason

Type of Design No. of Units

Waiting list Extra fee

Parking Year Built NoParking Fee Population Served

Security Market

Utilities paid by owner A.C.

Heat Cooking

Hot water

Balcony/patio Mini-blinds

Washer/dryer Refrigerator

W/D Hookup Stove

Laundry Facilities Disposal

Microwave Dishwasher

Description No. Units Unit Size Rent/Month Rent/SF

1.1 0 735 $779 $1.06

1.1 0 766 $809 $1.06

2.1 0 978 $839 $0.86

2.1 0 811 $879 $1.08

2.2 1,030 $869 $0.84

2.2 0 1,027 $889 $0.87

2.2 0 1,069 $899 $0.84

2.2 0 1,175 $929 $0.79

0 0 $0

Community Amenities Pool, tennis, clubhouse, sports, jacuzzi, fitness, racquetball, business

1990, 1995

455

NA

92%

No

No

Marion

Units & Rent

Market

317-885-7368

Edward Rose

Garden

Average

Utilities

Unit Details

No

Open, Carport, Garage

CP: $30; G: $60

See Notes

Family

None

Gas

Central

Electric

Yes

No

Yes

Yes

Gas

Market Comparable 1

Extra fee: Fireplace, $20; lakeview, $20; vaulted ceiling, $10-30; W/D rental, $25 *Used to

represent a range in the rents based on floor, and the extra fees shown in this comparable.

Comments

IN

Apartment Details

Sundance at the Crossing

7213 Sundance Dr

Indianapolis

4/12/2017

Yes, full

Morgan

Property Details

Yes

Yes

Yes

Yes

Yes

Yes

Page 72

Name Date



State phone #


Condition Occupancy




Parking Year Built No

Parking Fee Population Served

Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 761 $759 $1.00

2.2 0 1020 $849 $0.83

2.2 0 1120 $919 $0.82

3.2 0 1315 $1,069 $0.81

0 0 $0

Community Amenities

2000

Muesing

Autumn Chase 4/17 4/25/2017

Marion

Garden 176

Yes

Market Comparable 2

YesUnits & Rent

3717 Piermont Dr Yes, full

*W/D are rented out for $45 a month

Tenants pay a flat fee for W, S, T: 1.1: $22, 2.2: $37, 3.2: $51

Comments

Average 97%

Indianapolis Debbie

IN 317-887-9000

No NA

Electric

Central

Yes

No*

Yes

Yes

Yes

Yes

Yes

Yes

Clubhouse, pool, playground, walking path, sports court

Apartment Details

Property Details

Utilities

Unit Details

Yes, 3 for the 3 bedroom

Open

No

No

Fireplace: $20; view: $10

Family

Market

None

Gas

Gas

Page 73

Name Date



State phone #


Condition Occupancy




Parking Year Built 2006


Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 up 0 700 $579 $0.83

1.1 down 0 700 $619 $0.88

1.1 up* 0 700 $669 $0.96

1.1 down* 0 700 $719 $1.03

2.1 up 900 $699 $0.78

2.1 down 0 900 $719 $0.80

2.1 up* 0 900 $749 $0.83

2.1 down* 0 900 $749 $0.83

2.15 TH 0 1,400 $769 $0.55

2.15 TH* 0 1,400 $869 $0.62

3.25 TH 0 1,800 $919 $0.51

3.25 TH* 0 1,800 $989 $0.55

0 0 $0

Community Amenities

Comments

Property charges a flat fee for W, S, G: 1.1, $43; 2.1, $48; 2.2 TH, $63; 3.25 TH, $68.

*Upgraded units. Formerly known as Tuscan Point.

328

1968

Yes, full1451 E Southport Rd

No

Indianapolis Escavone

Market Comparable 3

Southport Crossing 4/17 4/12/2017

Garden, Townhome

Property Details

No

Open

No

No

W/D rental: $30

Family

Market

Utilities

W, S, T

Gas

Gas

Central

Gas

Unit Details

Yes

No

Yes

Yes

Yes

Pool, fitness

Yes

No

Yes

No

92%Average

NA

IN 317-783-2900

Marion M2

YesUnits & Rent

Apartment Details

Page 74

Name Date



State phone #


Condition Occupancy




Parking Year Built 2004


Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 720 $625 $0.87

2.1 0 889 $725 $0.82

2.15 0 1,200 $780 $0.65

0 0 $0

Community Amenities Fitness Center

Central

Electric

Unit Details

Yes

No

No

Yes

Yes

Yes

1964

Average 100%

No NA

Indianapolis Shawna

IN 317-787-3675

Marion Self-managed

Property Details

Yes, 1 No

Open

No Family

No Market

Utilities

W, S, T

Garden 80

Apartment Details

Comments

--

Yes

Yes

Yes

YesUnits & Rent

6399 Buckridge West Dr Yes, full

Market Comparable 4

Buckridge 5/17 5/9/2017

Electric

Electric

Page 75

Name Date



State phone #


Condition Occupancy




Parking Year Built NoParking Fee Population Served

Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 650 $610 $0.94

1.1 * 0 650 $680 $1.05

2.1 0 850 $690 $0.81

2.1 * 0 850 $765 $0.90

2.15 1,050 $780 $0.74

2.15 * 0 1,050 $800 $0.76

2.2 0 1,100 $810 $0.74

2.2 * 0 1,100 $830 $0.75

0 0 $0

Community Amenities

Yes

Unit Details

Yes, 7

Open, Carport

CP: $25

No

W/D : $40/month

Family

Market

W, S, T

Electric

Electric

Central

*Used to represent a range in the rent based on the lakeview, and whether or not the W/D is

included.

Comments

No

97%

Electric

Yes

No

Indianapolis

317-882-2111

No Yes

Property Details

Utilities

Yes

Yes

1987

Marion Mark 3

Average

Pool, tennis, clubhouse

Yes, full

Garden 260

Units & Rent

Sandy

IN

1009 Lismore Ln

Yes

Yes

Yes

Waterford Place 4/17 4/12/2017

NA

Market Comparable 5

Apartment Details

Page 76

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 675 $545 $0.81

2.1 0 875 $645 $0.74

3.15 TH 0 1150 $825 $0.72

0 0 $0

Community Amenities

IN

4/26/2017

Market Comparable 6

1982

Indianapolis Charlie

Yes

Marion

Units & Rent

190

Average 96%

Creekside South 4/17

8055 Crossing Dr

Yes

No Yes

Yes

Yes

Mark III

317-888-5607

NA

Garden

No

Property Details

Apartment Details

Comments

Unit Details

Yes

Yes

No

Yes

No No

$25 for lakeview, $25 for

Open

No Family

No Market

Utilities

W, S, T Central

Gas Gas

Gas

Clubhouse, pool, playground

Extra fee based on floor does not apply to the TH because it is a 2 story unit.

W/D rental: $40/month

Page 77

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 842 $629 $0.75

2.1 0 977 $729 $0.75

2.2 0 977 $739 $0.76

3.2 0 1,200 $859 $0.72

0 0 $0

Community Amenities

W, S, T are charged a flat fee to the tenant. *The first carport is included, a second would be $15

Indianapolis

1962

The Sycamores 4/17

Garden 210

No

Comments

Units & Rent

99%

No NA

Property Details

Yes, unsure No

Open, carport

Market Comparable 7

4/25/2017

1614 E Stop 11 Rd Yes, full

* Family

No Market

Barabra

IN 317-708-3256

Marion Muesing

Average

Apartment Details

Utilities

None Central

Electric Electric

Electric

Unit Details

Yes Yes

No Yes

No Yes

Yes

Yes Yes

Pool, fitness center, bus system

Page 78

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove



Description No. Units Unit Size Rent/Month Rent/SF1.1 0 470 $506 $1.081.1 0 485 $554 $1.141.1 0 510 $519 $1.021.1 0 525 $567 $1.081.1 558 $579 $1.041.1 0 585 $534 $0.911.1 deluxe 0 615 $623 $1.011.1 deluxe 0 660 $636 $0.962.1 0 870 $739 $0.852.1 0 920 $749 $0.812.2 0 970 $837 $0.862.2 0 1,075 $843 $0.782.2 0 1,140 $858 $0.75

0 0 $0

Community Amenities

1986

Pool, clubhouse, lakes

7302 Queen Anne Ct

Good

Windsor Court 4/17 4/26/2017

Market Comparable 8

Agent and corporate refused survey, got rent info online.

Comments

Units & Rent

Melissa

IN 317-788-0989

Marion

99%

Indianapolis

No

Yes Yes

No Yes

Sexton Properties

None

Yes, full

Apartment Details

NA

Yes

Yes Yes

Property Details

No No

Open, Carport, Garage

CP: $30; G: $60 Family

Alarms Market

Utilities

W, S, T Central

Electric Electric

Garden 342

Electric

Unit Details

Yes

Yes

Page 79

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 721 $625 $0.87

1.1* 0 721 $645 $0.89

2.15 0 947 $730 $0.77

2.15* 0 947 $740 $0.78

2.2 947 $755 $0.80

0 0 $0

Community Amenities

Unit Details

Yes Yes

Yes Yes

No Yes

Property Details

Yes, 2-3 years

No Family

No MarketUtilities

W, S, T Central

Electric Electric

Electric

317-888-6000

Manco

Garden

Yes

Comments

120

2000

No NA

No Yes

Average

$20 for better locations

Open

Extra fees don't apply to the 2.2

*Price varies depending on location

Market Comparable 9

Indianapolis Judy

IN

97%

Units & Rent

Marion

7215 Grand Ritz Ln Yes, full

Yes

Grand Oaks 4/17 4/12/2017

Apartment Details

Pool, clubhouse

Page 80

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 0 700 $549 $0.78

1.1 0 700 $569 $0.81

2.1 0 868 $669 $0.77

2.1 0 868 $719 $0.83

3.15 1,075 $829 $0.77

1.1 TH 0 700 $729 $1.04

2.15 TH 0 975 $809 $0.83

3.15 TH 0 1,300 $999 $0.77

0 0 $0

Community Amenities

1970

No NA

JoAnnIndianapolis

Madison Village 4/17

Average

No Yes

IN 317-784-8632

Marion Barrett & Stokely

Garden, Townhome 192

4/12/2017

7200 S Madison Ave Yes, full

86%

Comments

Market Comparable 10

Units & Rent

*Tenant pays a flat rate for their W, S, T (also G in the flats). 1.1, $49; 2.1, $59; 3.15, $69; 1.1 TH,

$20; 2.15 TH, $23; 3.15 TH, $26.

**There is an extra fee for lower level apartments, up to $20.

Apartment Details

Unit Details

Yes Yes

No Yes

Yes Yes

Yes Yes

Clubhouse, pool

Property Details

No **

Open

No Family

No Market

Utilities

G*, W, S, T Central

Gas Electric

Gas

Page 81

Deriving a market rent

To derive a market rent for the subject’s unit types, comparable market rate properties are

examined and line items, if relevant to the market, are adjusted to the subject. The adjustments are

discussed and then the form is shown.

This market rent derivation varies from the standard because the subject does not have specified

rents. Instead, the market analyst derives a lower-end target rent and a higher-end target rent.

Then the capture rate is measured with both sets of target rents. This derived rent is theoretical,

depending on the specific community, site, and unit amenities that will be offered. The analyst

assumes the subject will have similar amenities to the comparables in the areas that are receiving

higher rents.

The analyst is not a Realtor, nor a real estate appraiser, both of whom might have different

perspectives on the achievability of a rent for the subject.

Conclusion of market rents

Based on the analysis described in this section, the market rent for each unit type is determined as

shown in the following chart. The high-end rent assumes the property would have in-unit washer

and dryers, a pool, and a landscaped water feature.

Unit Type Derived Low-End

Market Rent

Derived High-End

Market Rent

One Bedroom $685 $735

Two Bedroom $738 $798

While all line items are considered, only those that warrant an adjustment are discussed.

Adjustments applied to the comparables are as follows.

Project

occupancy %

The occupancy in the subject’s market is strong; the average occupancy is 94.9%. When the

occupancy rate in a comparable project is less than the stabilized occupancy rate for a

market, a downward adjustment should be made. The stabilized occupancy is considered

95%; therefore, any property with an occupancy rate of less than 95% is adjusted. The

adjustment is applied as follows: (CompVacancy/.95)-1 = percentage applied to rent. If an

adjustment for occupancy is necessary, it is shown in the Other row in the rent derivation

grid. A slight adjustment is made for Sundance at the Crossing and Southport Crossing.

Concessions Concessions are not being offered in the market. Therefore, this adjustment is not applied.

The analyst notes that several of the properties were offering $200 to tenants that referred

a new tenant to the property, but this is a marketing technique rather than a concession.

Page 82

Year built The year built has a direct reflection on the condition of the property. The subject will be

available in 2018. The comparables are adjusted based on either year built or effective year.

The adjustment is $1 per year of difference with no adjustment for the first five years. The

maximum adjustment is $20 because it is assumed that a property will be renovated at least

every 25 years.

Air

conditioning

Central air conditioning is generally preferred to wall units. If the market surveys show

specific data, then it is used for the adjustment. Otherwise, an adjustment of $5 per unit is

shown in the section Other per-unit adjustments. All comparables have central air.

Parking All of the comps offer surface parking for no additional fee. Therefore no adjustment is

made. Several comparables have carports or garages for an additional fee. However, the

subject is limited with the size of the site and it appears less likely to be able to offer these

amenities.

Washer/

dryer

Sundance at the Crossing rents washers and dryers for $25 per month; Autumn Chase

charges $45 per month; Southport Crossing charges $30 per month; Waterford Place charges

$40 per month; and Creekside South charges $40 per month.

The analyst assumes the low rent represents a unit without a washer and dryer and the high

rent is for a unit with the appliances in the unit. The analyst uses an adjustment of $30 for

the one-bedroom unit and $40 for the two-bedroom unit.

Pool Nine of the 10 market comparables have a pool. To be competitive, the subject needs to

consider how to include a pool. The analyst believes the derived high rent represents a

subject with a pool. Buckridge is the only comparable without a pool.

The analyst uses an adjustment of $20 for the derived low rent, assuming no pool.

Page 83

Landscape

water

features

The comparables receiving higher rents all have a nicely landscaped water feature. For

example, see this at the entrance to Sundance at the Crossing. The rent increases $20 for a

view of the lake. The much larger lake is not shown in this photograph.

At Autumn Chase, the water feature is in the pond. They charge an extra $10 per

month for a lake view.

Creekside South charges $25 for a lake view.

In the analyst’s opinion, a lake is not necessary. But some sort of landscaped water

feature is necessary to be competitive.

Page 84

Unit size Sundance at the Crossing has a 1.1 unit with 735 SF for $779 and a 1.1 unit with 766 SF for

$809. The difference is $0.97 per SF. Autumn Chase has a 2.2 unit with 1,020 SF for $849 and

a 2.2 unit with 1,120 SF for $919. The difference is $0.70 per SF. The first 50 feet of

difference is disregarded. An adjustment of $0.70 per SF is applied after the first 50 feet are

disregarded. For the subject, the analyst chose the median unit size of the five market

comparables used for the rent derivation.

Number of

bathrooms

The Sycamores has a 2.1 unit for $729 and a 2.2 unit for $739, both with 977 SF. A $5

adjustment will be applied for the half bathroom and a $10 adjustment will be for the full

bathroom.

Utilities The analyst assumes the subject is paying water, sewer, and trash. Those comparables

paying different utilities were adjusted based on the following utility schedule. Sundance at

the Crossing and Autumn Chase pay for no utilities, but Autumn Chase charges the tenants a

flat fee for water, sewer, and trash. So the flat fee is used for the adjustment for Autumn

Chase.

1 BR 2 BR

Heating (gas) $30 $40

Heating (elec) $52 $64

Cooking (gas) $4 $5

Cooking (elec) $9 $9

Other Electric $38 $46

Air Conditioning $13 $17

Water Heating (gas) $26 $29

Water Heating (elec) $24 $29

Water $14 $16

Sewer $21 $21

Trash Collection $0 $0

Source of utilities: HUD schedule for Marion

County, eff. 1/31/2017

Page 85

One-bedroom units: rents and sizes

The rents for the comparables range from $545 to $779.

Comparables - One-Bedroom Units

Name Unit Size, SF Asking Rent Rent PSF

Subject - low rent 720 $685 $0.95

Subject - high rent 720 $735 $1.02

Sundance at the Crossing 4/17 735 $779 $1.06

Autumn Chase 4/17 761 $759 $1.00

Southport Crossing 4/17 700 $719 $1.03

Buckridge 5/17 720 $625 $0.87

Waterford Place 4/17 650 $680 $1.05

Creekside South 4/17 675 $545 $0.81

The Sycamores 4/17 842 $629 $0.75

Windsor Court 4/17 660 $636 $0.96

Grand Oaks 4/17 721 $645 $0.89

Madison Village 4/17 700 $569 $0.81

$500

$550

$600

$650

$700

$750

$800

0 1 2 3 4 5 6 7 8 9 10 11

Comparable Number

Comparables - One-Bedroom Units -Adjusted Rents

Asking Rent Subject - low rent Subject - high rent

500

600

700

800

900

0 1 2 3 4 5 6 7 8 9 10 11

Comparable Number

Comparables - One-Bedroom Units - Unit

Sizes

Unit Size, SF Subject

Page 86

Two-bedroom units: rents and sizes

The rents for the comparables range from $645 to $889.

Comparables - Two-Bedroom Units

Name Unit Size, SF Asking Rent Rent PSF

Subject - low rent 900 $738 $0.82

Subject - high rent 900 $798 $0.89

Sundance at the Crossing 4/171,027 $889 $0.87

Autumn Chase 4/17 1,020 $849 $0.83

Southport Crossing 4/17 900 $749 $0.83

Buckridge 5/17 889 $725 $0.82

Waterford Place 4/17 850 $765 $0.90

Creekside South 4/17 875 $645 $0.74

The Sycamores 4/17 977 $729 $0.75

Windsor Court 4/17 920 $749 $0.81

Grand Oaks 4/17 947 $740 $0.78

Madison Village 4/17 868 $719 $0.83

$500

$600

$700

$800

$900

$1,000

0 2 4 6 8 10

Comparables - Two-Bedroom Units -Adjusted Rents

Asking Rent Subject - low rent Subject - high rent

700

750

800

850

900

950

1,000

1,050

0 2 4 6 8 10

Comparables - Two-Bedroom Units -Unit Sizes

Unit Size, SF Subject

Page 87

Derivation of market rent

Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5

Name Southport Mixed UseSundance at the Crossing 4/17 Autumn Chase 4/17 Southport Crossing 4/17 Buckridge 5/17 Waterford Place 4/17

Data Adjustments Data Adjustments Data Adjustments Data Adjustments Adjustments

Market Market Market Market Market Market Market

Year built 2018 1995 $18 2000 $13 1968 1964 1987 $20

Year renovated No No 2006 $20 2004 $20 No

Population served families Family Family Family Family Family

Occupancy 92% -3.2% 97% 0.0% 92% -3.2% 100% 0.0% 97% 0.0%

Amenities

Stove Yes Yes Yes Yes Yes Yes

Refrigerator Yes Yes Yes Yes Yes Yes

Garbage Disposal Yes Yes Yes No Yes Yes

Dishwasher Yes Yes Yes Yes Yes Yes

Microwave No Yes Yes No Yes No

Central Air Yes Yes Yes Yes Yes Yes

Wall Unit Air No No No No No No

Garage No Yes No No No No

Carport No Yes No No No Yes

In-unit Laundry Yes No No No No No

Laundry Hookup No Yes Yes Yes No Yes

Coin Op Laundry No Yes Yes Yes Yes Yes

Mini Blinds Yes Yes Yes Yes Yes Yes

Patio/ Balcony Yes Yes Yes Yes Yes Yes

Storage No No No No No No

Clubhouse amenities Yes Yes Yes No No Yes

Pool Yes Yes Yes Yes No Yes

Emergency Pullcord No No No No No No

On-Site Management Yes Yes Yes Yes Yes Yes

Landscape water features Yes Yes Yes No Lake view Lake view

Southport Mixed Use Sundance at the Crossing 4/17Adj. Autumn Chase 4/17 Adj. Southport Crossing 4/17Adj. Buckridge 5/17 Adj. Waterford Place 4/17Adj.

Unit size

One bedroom 720 735 $0.00 761 $0.00 700 $0.00 720 $0.00 650 $14.00

Two bedroom 900 1027 -$53.90 1020 -$49.00 900 $0.00 889 $0.00 850 $0.00

Bathrooms

One bedroom 1.0 1.0 $0 1.0 $0 1.0 $0 1.0 $0 1.0 $0

Two bedroom 1.5 2.0 -$5 2.0 -$5 1.0 $5 1.0 $5 1.0 $5

Included utilities

Heat No No No No No No

Electric No No No No No No

Trash Yes No No Yes Yes Yes

Sewer Yes No No Yes Yes Yes

Water Yes No No Yes Yes Yes

Heat type Electric Gas Gas Gas Electric Electric

One-bedroom utilities $136 $35 $22 $0 $0 $0

Two-bedroom utilities $165 $37 $37 $0 $0 $0

Other per-unit adjustments

One bedroom $0 $0 $0 $0 $0

Two bedroom $0 $0 $0 $0 $0

Total adjustments

One bedroom $28 $35 -$3 $20 $34

Two bedroom -$32 -$4 $1 $25 $25

Unadjusted rents

One bedroom $779 $759 $719 $625 $680

Two bedroom $889 $849 $749 $725 $765

Derived rent

One bedroom - Low $685

Two bedroom - Low $738

One bedroom - High $735 $807 $794 $716 $645 $714

Two bedroom - High $798 $857 $845 $750 $750 $790

Page 88

LIHTC comparables

This section summarizes the LIHTC amenities compared to the subject, and provides full details on

each of the selected comparables.

Amenities: comparing the subject to LIHTC comparables

The following chart compares the subject to the selected comparables in terms of kitchen

amenities, unit amenities, and project amenities. This is for the LIHTC properties only.

Details on LIHTC comparables

This section contains the Section 42 comparables.

Appliances

Property Name Stove Refrig Dishwasher Disposal Microwave

Valley Forge 4/17 X X X X X

Bradford Lake 4/17 X X X X

Berkley Commons 4/17 X X X X

Stratford Place 5/17 X X X X X

Unit Amenities

Property Name Central AC

Window

AC

Washer/

Dryer

W/D

Hookup

Patio/

Balcony

Window

Cover

Pull

cords/Call

buttons Garage Carport

Valley Forge 4/17 X X X X X

Bradford Lake 4/17 X X X X

Berkley Commons 4/17 X X X X

Stratford Place 5/17 X X X X

Project Amenities

Property Name Year Built Pool

On-Site

Mgt

Laundry

Facilities

Clubhouse

or

community

room

Fitness

Center Playground

Computer

or business

room

Sports

Court Storage Picnic Area Security

Comm.

Services Other

Valley Forge 4/17 1964 X X X X X X X

Bradford Lake 4/17 1969 X X X X

Berkley Commons 4/17 1964 X X X X X X

Stratford Place 5/17 2005 X X X

Page 89

Name Date



State phone #


Condition Occupancy




Parking Year Built 2007, 2008Parking Fee Population Served

Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 30% 0 782 $306 $0.39

1.1 40% 0 782 $437 $0.56

1.1 50% 0 782 $567 $0.73

1.1 60% 1 782 $698 $0.89

2.1 30% 938 $375 $0.40

2.1 40% 0 938 $532 $0.57

2.1 50% 0 938 $689 $0.73

2.1 mkt 0 938 $680 $0.72

2.2 30% 0 989 $375 $0.38

2.2 40% 0 989 $532 $0.54

2.2 50% 0 989 $689 $0.70

2.2 mkt 0 989 $695 $0.70

3.1 30% 0 1,301 $414 $0.32

3.1 40% 0 1,301 $596 $0.46

3.1 50% 0 1,301 $777 $0.60

3.1 mkt 1 1,301 $785 $0.60

0 0 $0

Community Amenities

*One carport is included. The second is $25.

Yes YesUnits & Rent

CommentsPool, clubhouse, computer room, fitness, playground

Yes Yes

No Yes

No Yes

Electric Electric

ElectricUnit Details

Yes Yes

No Sec 42Utilities

W, S, T Central

Property Details

Yes, 53 No

Open, Carport

CP: $25* Family

Average 100%

No NA

Garden 140

Indianapolis Angela

IN 317-786-8888

Marion Pearl Companies

1964

Apartment Details

Valley Forge 4/17 4/25/2017

4350 S Madison Ave Yes, full

Section 42 Comparable 1

Page 90

Name Date



State phone #


Condition Occupancy




Parking Year Built Yes


Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 50% 56 787 $589 $0.75

1.1 60% 56 787 $597 $0.76

2.1 50% 92 1046 $679 $0.65

2.1 60% 91 1046 $699 $0.67

2.1.5 TH 60% 1,136 $719 $0.63

3.1.5 60% 63 1,320 $827 $0.63

0 0 $0

Community Amenities

CommentsPlayground, sports court

Property is for one to six person households with income from $20,124 - $47,820.

Yes Yes

No YesUnits & Rent

Unit Details

Yes Yes

No Yes

Yes Yes

Utilities

W, S, T, G Central

Gas Gas

Gas

Open

None Family

No Sec 42

None NA

Two-story garden 358Property Details

Yes, unsure None

IN 317-888-2805

Marion CRF

Average 96%

1969

Bradford Lake 4/17 4/25/2017

7626 Portage Ave Yes

Indianapolis Danielle


Apartment Details

Page 91

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 55 625 625 $530 $0.85

2.1 33 760 625 $635 $0.84

2.15 TH 144 960 760 $710 $0.74

2.15 TH 80% 0 960 760 $690 $0.72

3.15 TH 1,245 960 $775 $0.62

3.15 TH 80% 0 1,245 $755 $0.61

4.25 TH 0 1,370 $910 $0.66

4.25 TH 80% 0 1,370 $890 $0.65

0 0 $0

Community Amenities

Units & Rent

Comments

Pool, tennis court, playground, fitness facility, walk in closets

Extra fee: Downstairs units cost extra, $15 if 2 bed or 4 bed, $20 if 1 bed or 3 bed. *Only in the

TH.

There is a fee for W, S, T. Apartment: $10, TH: $20

Yes* Yes

Yes Yes

No Yes

Gas

Unit Details

Yes Yes

No Yes

No Sec 42

Utilities

None Central

Gas Electric

Property Details

Yes, unsure See Notes

Open

No Family

Average 92%

No NA

Garden 544

1964

Indianapolis Jacklyn

IN 317-889-3100

Marion Van Rooy

Apartment Details

Berkley Commons 4/17 4/25/2017

8201 S Madison Ave Yes


Page 92

Name Date



State phone #


Condition Occupancy






Security Market


Heat Cooking

Hot water



W/D Hookup Stove




1.1 40% 0 772 $425 $0.55

1.1 50% 0 772 $537 $0.70

1.1 60% 0 772 $590 $0.76

1.1 mkt 0 772 $625 $0.81

2.1 40% 945 $487 $0.52

2.1 50% 0 945 $635 $0.67

2.1 60% 0 945 $668 $0.71

2.1 mkt 0 945 $700 $0.74

3.2 40% 0 1,242 $558 $0.45

3.2 50% 0 1,242 $738 $0.59

3.2 60% 0 1,242 $810 $0.65

3.2 mkt 0 1,242 $840 $0.68

4.2 40% 0 1,341 $604 $0.45

4.2 50% 0 1,341 $806 $0.60

4.2 60% 0 1,341 $875 $0.65

4.2 mkt 0 1,341 $910 $0.68

0 0 $0

Community Amenities

Yes YesUnits & Rent

Comments

Playground

--

No Yes

Yes Yes

Yes Yes

Gas Electric

Electric

Unit Details

Yes Yes

No Family

No Sec 42

Utilities

W, S, T Central

Property Details

No No

Open 2005

Average 98%

No NA

Garden 120

Indianapolis Susan

IN 317-375-1576

Marion PWT Development


Apartment Details

Stratford Place 5/17 5/9/2017

6050 Castleford Dr Yes

Page 93

Page 94

Map of subject relative to all comparables

This map includes the market rate comparables with the subject. The PMA boundaries are beyond the edges of the map.

1 Sundance at the Crossing 4/17 Indianapolis

2 Autumn Chase 4/17 Indianapolis

3 Southport Crossing 4/17 Indianapolis

4 Buckridge 5/17 Indianapolis

5 Waterford Place 4/17 Indianapolis

6 Creekside South 4/17 Indianapolis

7 The Sycamores 4/17 Indianapolis

8 Windsor Court 4/17 Indianapolis

9 Grand Oaks 4/17 Indianapolis

10 Madison Village 4/17 Indianapolis

Page 95

Page 96

This map includes the LIHTC comparables with the subject.

1 Valley Forge 4/17 Indianapolis

2 Bradford Lake 4/17 Indianapolis

3 Berkley Commons 4/17 Indianapolis

4 Stratford Place 5/17 Indianapolis

Page 97

Comparables for rural developments

The QAP specifies that when an insufficient number of comparables exist in rural communities, three

developments in adjacent markets need to be used in the supply analysis.

This is not applicable to the subject.

Waiting Lists

During April and May 2017, our office surveyed many properties in the city of Southport. A few of the

comparables reported waiting lists.

Availability of other affordable housing units

According to the Site to Do Business, the average home sales price for 2016 was $136,485.

With typical terms of a 30-year mortgage at 3.75%, the monthly payment is $600. Of course, home

ownership comes with property taxes, insurance, utility payments, and home maintenance. It is

possible that home ownership would be a viable option for a potential renter who is willing to take on

the responsibilities of home ownership.

LIHTC Property name No. of units Occupancy Population served Waiting List

1 Valley Forge 4/17 140 100% Family Yes, 53

2 Bradford Lake 4/17 358 96% Family Yes, unsure

3 Berkley Commons 4/17 544 92% Family Yes, unsure

4 Stratford Place 5/17 120 98% Family No

Market Property name No. of units Occupancy Population served Waiting List

1 Sundance at the Crossing 4/17 455 92% Family No

2 Autumn Chase 4/17 176 97% Family Yes, 3 for the 3 bedroom

3 Southport Crossing 4/17 328 92% Family No

4 Buckridge 5/17 80 100% Family Yes, 1

5 Waterford Place 4/17 260 97% Family Yes, 7

6 Creekside South 4/17 190 96% Family No

7 The Sycamores 4/17 210 99% Family Yes, unsure

8 Windsor Court 4/17 342 99% Family No

9 Grand Oaks 4/17 120 97% Family Yes, 2-3 years

10 Madison Village 4/17 192 86% Family No

Page 98

Building permits

According to the building permits filed in Marion County over the last 10 years for multifamily

structures, the construction level has seen a surge in the last four years.

Source: U.S. Census Building Permits Survey, SODCS Building Permits data retrieved May 2017

0

500

1000

1500

2000

2500

3000

Building Permits - Marion County

Multifamily Structures Single-family Structures

Page 99

Analysis of commercial use The first floor in the subject is tentatively planned for office or retail development. The purpose of this

section is to provide some analysis of trends for those two sectors to provide guidance for the

marketing of this site. First, national trends are reviewed followed by local trends.

The Urban Land Institute forecast for April 201721 projects moderate commercial real estate price

growth but at subdued or decelerating rates. The forecast for 2017 and 2019 retail is for increasing

vacancy rates worse than long-term averages. However, the forecast for office vacancies is better than

long-term averages.

Overview of the national office market

Nationally, office vacancy rates have been trending down since a high in 2009. Forecasts for the near

term show stabilization around 12.5%.

21 “ULI Real Estate Consensus Forecast, A Survey of Leading Real Estate Economists/Analysts,” published April 2017 by the ULI Center for Capital Markets and Real Estate. It is available at www.uli.org/consensusforecast.

http://www.uli.org/consensusforecast

Page 100

Rental rates for office space have seen above-average group for 2011 through 2015. After a drop in

2016, rent growth is stabilized around the 20-year average of 2.3%.

CBRE, one of the contributors to the ULI Consensus Forecast, unsurprisingly has data that echos the

ULI charts showing that office vacancy rates nationally have been trending down and appear to be

stabilized around 12.5 percent.

Page 101

Suburban office markets nationally generally average higher vacancy rates and are remaining flat

around 14.2 percent.

The 2017 Q1 office report22 says, “Although this marks the first increase in the vacancy rate since Q1

2010, the U.S. office market remains fairly tight, and vacancy is within 60 basis points of prior-cycle

lows from early 2007.”

Technology is driving most of the absorption now across the country. However, in Indiana, more

technology companies are moving to downtown Indianapolis rather than the suburbs.

22 “New supply moves office market closer to equilibrium,” CBRE Occupierview Snapshot, U.S. Office, Q1 2017. It is available here: http://www.cbre.us/UnitedStates/Research%20and%20Reports/US%20Research

http://www.cbre.us/UnitedStates/Research%20and%20Reports/US%20Research

Page 102

Overview of Indianapolis office market

Colliers provides information on the Indianapolis office market and their classification system is

generally subdivided into Top Tier Class A, Low Tier Class A, and Creative/Character. Top Tier Class A is

the most expensive and desirable space. Low Tier Class A space is less concerned with aesthetics and

location but still in a well-maintained building. Creative/Character space is typically older buildings

with below average maintenance and infrastructure. The primary reason tenants lease space at Class C

buildings is because of the low lease rate.

A good example of a Creative/Character office space is the corporate headquarters of Angie’s List on

the near east side of downtown Indianapolis. They took occupancy of a former firehouse for their first

offices. They kept the firepole and built around it. As they expanded, they bought other buildings and

converted them to office space. A former autobody repair shop because a fitness gym and showers for

the employees.

The firehouse was originally constructed in 1896. You can still see the bays for the fire trucks and the

bell tower used to signal a fire. It was renovated and adapted for office use by Angie’s List as part of

their corporate headquarters.

Page 103

In the Indianapolis Central Business District, Creative/Character office absorption is driving vacancy

rates down.23

Overall, the Indianapolis office market is seeing vacancy drop and asking rents increase from Q1 2016

to Q1 2017:

Source: Colliers Indianapolis Office Research & Forecast Report, Q1 2017.

23 “Large Suburban Blocks of Space Hit the Market,” Indianapolis Office Q1 2017 Research & Forecast Report published by Colliers International.

Page 104

Aprimo moved from the north side of Indianapolis into downtown; SalesForce.com expanded to lease

250,000 SF in the Chase Tower and bought the naming rights to the building. Cummins, the trucking

engine manufacturer based in Columbus, is opening a new 9-story building in downtown Indianapolis

in 2017 for logistics and sales employees. The company says the downtown location is helping them

recruit employees.

When the Indianapolis market is divided by geography, Southport is included in the South submarket:

Page 105

In the South submarket, there has been some activity in 2017.

Using more data from Colliers, the overall vacancy rate for office space in the south submarket has

been trending down for the last 7 quarters. No new supply is entering the market or under

construction. Year-To-Date absorption was 55,728 Sf for 2015 and 46,603 SF for 2016. Some inventory

left the market, mildly contributing to the decrease in the vacancy rate.

Shared or entrepreneur office space

A newer type of office space is gaining traction in the Indianapolis area. CBRE published a three-part

series on the Shared Workplace in 2016 examining this national trend. Shared space is a type of office

in which small tenants are offered the amenities of a traditional office, such as a conference and break

room. Often, the office also have community spaces and strive to lease the offices to tenants that will

create a shared energy and connectivity.

The Speakeasy, in Broad Ripple, opened in 2012 as the area’s first collaborative workspace in Central

Indiana. It operates as a 501(C)3 and is membership-based. They identify their members as “creatives,

Page 106

programmers, founders, freelancers, the business minded, the tech savvy, first time starts and

seasoned professionals.”

The interior is designed to have individual workspaces and shared community spaces.

Cowork Indy is located at 120 East Market Street in downtown Indianapolis. It is another membership-

based space that offers free printing and copying, high-speed internet, and 24-hour access.

Memberships are available monthly; the standard one is 15 days a month for $89 and the deluxe one

is 30 days a month for $149.

Co-working space

Page 107

The Hinge Bureau is located at The Hinge Apartments in Fletcher Place on the southeast side of

downtown Indianapolis. It offers workstations and three breakout rooms that can be reserved. It also

has office spaces that are fully furnished with IKEA desks and cabinets.

Common areas at The Hinge Bureau

The Union 525 is newly opened in 2017 at 525 South Meridian in downtown Indianapolis in the former

Emmerich Manual High School building. It has some of the space available and will be opening more

soon. It will offer 122,000 SF of short-term leases to tech companies. Amenities will include movable

walls, free parking, internet with VOIP and hosting, and 24-7 key card access to the building. The

former gymnasium has been wired for sound and video to be used as event space.

Page 108

Launch Fishers is a specific initiative from the City of Fishers to grow entrepreneurs. It has 52,000 SF

and offers access to wi-fi, a coffee shop, copy/print/scan services, and community spaces. It originally

started in the basement of the Fishers library and moved to a new space when it grew to over 500

members.

The glassed-in areas are private offices.

The Southside Business Initiative is a co-working space located at 6825 S Madison Avenue. It opened in

October 2015 and current members include law offices, lawn care, and a medical office. Membership

is $500 per year or $50 per month. To have a dedicated desk, the fee is $1500 per year.

Conclusion of the office market

National trends and local trends show that the office market is relatively strong. The south submarket

does not have very much recent activity but vacancy rates have continued to drop for 7 quarters in a

row. Since there is already a co-working spaces in the area, it might be used as a feature to attract

another office tenants. If the office tenant needs more flexible space, some employees can be placed

at the Southside Business Initiative.

Page 109

Overview of the national retail market

According to the ULI Real Estate Consensus Forecast, rental rates for retail space dropped below

average in 2008 and finally rose to 0.8% in 2014 trended to a high of 2.7% in 2016. Forecasts for 2017

through 2019 show rental rate growth of 2.0% to 2.5%.

Consumer Confidence Index

The retail market, compared to the office market, is more directly related to consumer confidence

because consumers do not spend money when they are concerned about the economy. This is a

national overview.

Since 2008, the index of consumer sentiment has been overall trending up:

Source: Copyright © 2017. The Regents of the University of Michigan

Page 110

Since May 2016, the index has moved to near all-time high in May 2017 with an index of 97.7.

According to the chief economist, Richard Curtin, “The recent stability in consumer sentiment,

however, masks two important underlying shifts in the components as well as in the partisan divide.

More favorable income gains and low inflation meant that consumers held the most favorable real

income expectations in a dozen years.”24

There are differences in expectations for various sectors with vehicle buying expectations continuing

to drop and home sellers holding favorable views. Overall, personal consumption expenditures are

forecast at a 2.3% for 2017.

24 For more information on the index, see http://www.sca.isr.umich.edu/

http://www.sca.isr.umich.edu/

Page 111

Overall consumer sentiment indicates positive expectations for retail. However, the retail picture is

more complicated. Reports from Cushman & Wakefield indicate year-over-year holiday sales showed a

3.8% growth, but Amazon is believed to have grown 20% in year-over-year holiday sales.25

CBRE research shows that online retailers posted a 12% growth in Q1 2017 over sales in Q1 2016. Sales

at brick-and-mortar department stores continued to decline.

25 Marketbeat Indianapolis Retail QA4 2016, Cushman & Wakefield.

Page 112

Nationally, demand for retail space remains flat in the first quarter of 2017:

The bright spots in national retail rest with online retailers and some surge in neighborhood,

community, and strip retailers:

Page 113

Overview of Indianapolis retail market

In Indianapolis, the retail market showed slight declines in vacancy rates to 5% and continued

increases in rental rates.

Source: Marketbeat Indianapolis Retail QA4 2016, Cushman & Wakefield.

Similar to trends seen nationally, the neighborhood and community centers were responsible for the

largest occupancy gains through the year.

Source: Marketbeat Indianapolis Retail QA4 2016, Cushman & Wakefield.

Page 114

However, the Cushman and Wakefield report preceded the local appliance retailer H.H. Gregg

declaring bankruptcy and the imminent demise of Marsh grocery stores. These two changes in the

market will put more retail space into play and drive rental rates and occupancy down.

Conclusion

Retail space in being affected by a fundamental shift in where consumers purchase their items. Retail

sales and consumer confidence are trending upward but the gains are coming from online retailers.

Locally, both H.H. Gregg and Marsh, which are headquartered in Indianapolis, have announced either

closings or appear ready to announce bankruptcy. These closings will put more pressure on retail

space.

Page 115

Conclusions and Recommendations The site is in a good location in an area that is going through redevelopment. The area has a high

percentage of renters and is located with easy access to Interstate 65 and US 31. It will be appealing to

households where one person works downtown and the other works in Greenwood or Franklin.

This analysis was conducted assuming the subject would have 95 units and our analysis has

determined the capture rate is 4.5%. The market occupancy is strong and several properties are

reporting waiting lists. The area has not had any new multifamily construction since 2000.

Projections show that both households and population numbers are increasing and the number of

renters are also increasing.

The economy is doing well but there are signs that retail trade is changing and is shedding jobs. The

subject is tentatively planned for office or retail development on the first floor. The analyst

recommends considering a retail portion that is food-based, such as a coffee shop, and office use with

possible a co-working structure to engender entrepreneurship in the area.

Overall, there is nothing that indicates the project will have difficulty leasing the units. The market has

strong occupancies and this should continue after the construction of the subject. The market analysts

recommend approval of the project based on the market evidence.

Page 116

Signed Statement I have made a physical inspection of the site and market area and that information has been used in

the full study of the need and demand for new rental units. To the best of my knowledge, the market

can support the demand shown in the study. Neither I nor anyone at my firm has any interest in the

proposed development or relationship with the ownership entity. Compensation for my services is not

contingent upon this development receiving a reservation or allocation of tax credits. I affirm under

the penalties of perjury that the foregoing representations are true.

Market Study Analyst

Signature:

Printed Name: Jennifer Atkinson

Page 117

Market Study Analyst Statement of

Experience Mitchell Market Analysts started with Mitchell Appraisals, a commercial real

estate appraisal firm founded in 1988 by Bonnie Mitchell, Indiana’s first female

MAI-designated appraiser. Mitchell Appraisals provides real estate appraisals

and related services throughout the Midwest and occasionally in other states.

We are located in Indianapolis and do most of our work in Indiana. We also hold licenses in Kentucky,

Tennessee, Michigan, and Ohio. Early in 2013, Mitchell Appraisals became one of the founding

members of Valbridge Property Advisors, currently with 42 firms across the country. Valbridge is

among the top three national commercial real estate valuation companies with 145 MAIs, 59 office

locations, and 600 staff.

A long-term specialty of Mitchell Appraisals is multifamily projects, especially LIHTC multifamily

projects. We have done over 600 multifamily projects in the last five years. We started performing

LIHTC market studies in 1997 and our work in this area has continued to grow.

Recognizing the need to focus on market studies, we formed a sister

company in October 2010 called Mitchell Market Analysts, Inc. Now, all

market study services including LIHTC market studies, MAP market studies,

and HUD Rent Comparability Studies are performed by Mitchell Market

Analysts. All appraisals are performed by Mitchell Appraisals.

Mitchell Market Analysts is a 100% WBE and has no overlap of ownership or management with

Valbridge Property Advisors | Mitchell Appraisals, Inc. The principals are:

Jennifer Atkinson

Elizabeth Mutzl

Bonnie Mitchell

The principals of Mitchell Market Analysts are approved by the state allocation agencies in Indiana,

North Carolina, Kentucky, and Georgia.

Our clients have been generous with their praise. Here is a sampling:

"Thanks, Mitchell team. You guys are great. Again, cannot thank you enough for going the extra

mile on this." - Local developer

“Thank you again – you’ve been a pleasure to work with.” – State finance authority representative

“By the way, I think this study reads even better than last year’s study. Very nicely done!” – Local

developer

Page 118

Jennifer Atkinson

Primary Expertise

Affordable and market-rate, multifamily market analysis, project management, process improvement,

technical writing, and training.

Professional Memberships

Associate Member, National Council of Housing Market Analysts: 2008 - present.

Professional Member Designation, National Council of Housing Market Analysts: 2015.

Experience

Principal, Mitchell Market Analysts, Inc., Indianapolis, IN: October 2010 – present.

Operations Manager, Mitchell Appraisals, Inc., Indianapolis, IN: April 2006 – 2011.

Deployment Manager, Training Manager, Senior Technical Writer, NoInk Communications and

Everypath, Carmel, IN and Santa Clara, CA: 2003 – 2006.

Project Manager, Roche Diagnostics, Indianapolis, IN: 2002 – 2003.

Manager of Technical Publications, Senior Technical Communicator, Peregrine Systems (an IBM

company), Indianapolis, IN: 1999 – 2002.

Independent Consultant for various clients: 1998 – 1999. Principal author of Java Studio Blue Book:

Develop Intuitive and Effective Web Content and Applications, published in 1999 by Coriolis Group

Books. Co-authored Effective Web Design in 3 Days with NetObjects Fusion. Developed courses for

Novell named “Using Animation in Your Website” and “Using Multimedia in Your Website.” Taught

“Designing Information for the Web” and “Planning an Information Product” for Deloitte and

Touche.

Various levels of service and membership in the Society for Technical Communication: 1989 –

2002. Service included organizing the first Western Region conference and running the 1,200-

member Silicon Valley Chapter as President, which was the largest chapter in the country.

Manager, Technical writer, PDR Information Services, Santa Clara, CA: 1990 – 1998.

Technical Writer, Control Data Corporation, Sunnyvale, CA: 1988 – 1990.

Programmer, United Technologies Chemical Systems Division, San Jose, CA: 1986 – 1988.

Professional Activity

National

National Council of Housing Market Analysts, member of the standards committee:

2008-present.

Affordable Assisted Living: New Frontiers for Aging in Place, principal author on a white

paper for the National Council of Housing Market Analysts, presented in New Orleans in

December 2014.

Author of “Affordable Assisted Living: Innovation Funding for Aging in Place,” published

in the January 2015 issue of Tax Credit Advisor.

Education

Bachelors of Arts in Communication, Purdue University, West Lafayette, IN: 1986.

Page 119

Associates of Science in Computer Science, Purdue University, West Lafayette, IN: 1986.

Certificate in Managing Publications and Documentation, University of Santa Cruz, Santa Clara, CA:

1993.

Certified Webmaster, DCI, Santa Clara, CA: 1997.

Successfully completed various qualifying and continuing education courses starting in 2006 through

2013. Recent highlights include:

North Carolina Affordable Housing Conference: 2012, 2013.

National Council of Housing Market Analysts: 2009, 2010, 2011, 2012, 2013, 2014, 2015

Indiana Affordable Housing Conference: 2010, 2011, 2012, 2013, 2014, 2015

Georgia Department of Community Affairs Tax Credit Workshop: 2013.

Speaking Engagements

“Affordable Assisted Living: New Frontiers for Aging in Place,” National Council of Housing Market

Analysts, Washington DC, June 2014.

“Guerilla UI Design,” Hoosier Chapter of Society for Technical Communication: 2004.

“Keys to a Successful Career,” for a Purdue University computer science class: 2002.

“Owning User Interface Design” and “History of Quality Initiatives,” for the annual Society for

Technical Communication Conference: 2001.

“What it Really Takes to Succeed,” International Technical Communication Conference: 1994,

1995.

Elizabeth (Liza) C. Mutzl

Primary Expertise

Multifamily properties including valuation, market studies, and tax assessment appeals. Specializes in

low income housing, MAP, assisted living facilities, nursing homes, office, and retail.

Licenses

Certified General Appraiser, State of Indiana CG40200255

Certified General Appraiser, State of Michigan 1201071312

Certified General Appraiser, State of Ohio 2012001228


Professional Member Designation, National Council of Housing Market Analysts: 2008 - present.

Experience

Principal, Mitchell Market Analysts, Indianapolis, IN: 2011 – present.

Associate Vice President, Mitchell Appraisals, Inc., Indianapolis, IN: 2003 – present.

Staff appraiser, Mitchell Appraisals, Inc., Indianapolis, IN: 1997 – 2003.

Page 120


Local

Indianapolis Sub-Chapter Vice-Chairman of the Hoosier State Chapter of the Appraisal

Institute: 2002.

Indianapolis Sub-Chapter Chairman of the Hoosier State Chapter of the Appraisal

Institute: 2003.

Indianapolis Sub-Chapter Public Relations Chair: 2003-2005.

Indy Crew Network, Women in Real Estate.

Co-Chair Indy Crew Golf Outing.

National

National Council of Housing Market Analysts, Executive Committee: 2008-present.

National Council of Housing Market Analysts, peer reviewer and member of the

membership committee: 2008 – present.

Co-Chair Education Committee: 2011-present.

Education

Bachelor of Arts, Communications with a concentration in Advertising and a minor in Supervision,

Purdue University, West Lafayette: 1990.


2011. Recent highlights include:

MAP (Multifamily Accelerated Processing, a HUD program) Training: 2001, 2002, 2005, 2009, 2011,

2012, 2013.

National Council of Affordable Housing Market Analysts: 2007, 2008, 2009, 2010, 2011, 2012,

2013, 2014, 2015.

Michigan Appraisal Law: 2008, 2011.

Appraisal of Nursing Facilities: 2008.

USPAP: 2008-2009, 2010-2011, 2013.

Real Estate Finance Statistics and Valuation Modeling: 2009.

Appraising and Analyzing Office Building for Mortgage Underwriting: 2011.

Appraising Apartments: 2011.

How to Analyze and Value Income Properties: 2011.

Bonnie A. Mitchell, MAI

Primary Expertise

Multifamily properties including market studies, expert testimony, and tax assessment appeals.

Specializes in low income housing, MAP, assisted living facilities, nursing homes, and hotels.


MAI Member, Appraisal Institute. Designated 1986. Retired 2012.

Page 121

Awards

The William A. Krount Service Award. Received for service above and beyond what is expected.

Awarded by CIMG of MIBOR.

Edward L. White Achievement Award. Received for service in fostering the Appraisal Institute.

Awarded by Hoosier State Chapter of the Appraisal Institute.

Experience

Principal, Mitchell Market Analysts, Inc., Indianapolis, IN: 2010 – present.

Principal, Mitchell Appraisals, Inc., Indianapolis, IN: 2004 – 2012.

President of Mitchell Appraisals, Inc., Indianapolis, IN: 1988 –2004.

Head of Appraisal Department, Washington Square Mortgage Company, Indianapolis, IN: 1987 –

1988.

Staff Appraiser for Indiana Mortgage Corporation, Indianapolis, IN: 1979 – 1987.


Local

Newsletter Editor: 1985-1986.

Candidates Guidance Chairman, AIREA and SREA: 1988-1990.

Candidates Guidance Chairman: 1995.

IMDB Secretary, Executive Committee: 1985-1998.

Admissions Committee, AIREA and SREA: 1986-1994.

Admissions Chairman, Appraisal Institute: 1992-1993.

Admissions Committee, Appraisal Institute: 1994-1998.

Indianapolis Subchapter Advisory Board, Appraisal Institute: 1993.

Board of Directors Chapter 27: 1988-1991.

CIE Committee, MIBOR: 1994-1998.

Education Vice-Chair for the Hoosier State Chapter: 2001.

Education Chair for the Hoosier State Chapter: 2002-2003.

National

Vice Chairman, Regional Conference: 1988.

Non-Residential Demonstration Report Committee: 1988-1995.

Admissions Committee Regional: 1991-1998.

Regional Representative-Indiana Chapter: 1991-1994.

Education


2012.

Page 122

Market Study Checklist

Standard INCLUDED (Yes or

No)

Page

Resume for market professional with demonstrable

experience in Indiana affordable housing markets

Yes Page 117

Executive Summary Yes Page 5

Development description Yes Page 9

Site Map Yes Page 10

Color photos of site Yes Page 9

Scope of Rehabilitation, if applicable NA

Market Area Description Yes Page 35

Detail of boundaries of primary market area Yes Page 35

2 scaled color maps of shopping, medical services,

public transit, etc. One with ¼ mile and ½ mile radii,

and one with 1 mile and 1.5 mile radii, showing

subject in proximity to neighborhood amenities.

Yes Page 25, 31

Market Area Economy Yes Page 37

Demographic Data Yes Page 48

Demand Analysis Yes Page 56

Projection of total demand from demand for new

renter households and demand from existing

households, and described in Schedule C of QAP

Yes Page 59

Minimum and maximum income ranges for each

targeted group

Yes Page 58

Definition of absorption period and rate to reach 95%

occupancy

Yes Page 62

Presentation of net demand in narrative, chart,

and/or tabular format

Yes Page 63

Demand calculations with rental assistance and

without rental assistance, if applicable

Yes Page 63

Assumptions for demand analysis Yes Page 56

Supply Analysis Yes Page 67

Survey of market rate and tax credit rental properties

including name, address, age and condition, area

median income level

Yes Page 67

Page 123

Type of federal and/or municipal subsidies, if

applicable

Yes Page 67

Presents of on-site management Yes Page 70

Number of units by bedroom type, number of

bathrooms for each unit type, square footage of units

Yes Page 67

Rents by number of bedrooms and baths, and square

footage

Yes Page 67

Unit and site amenities relative to the subject

property

Yes Page 70

Type of utilities Yes Page 70

Occupancy rates of each property Yes Page 68

Absorption history of each property (if recently

completed)

Yes Page 67

Color photographs of comparable properties Yes Starting on page 70

Color map depicting location of each property relative

to subject property

Yes Page 94

Market vacancy rate for PMA rental stock by

population and type of occupancy and unit size

Yes Page 68

Number of people on waiting lists for each property Yes Page 97

Discussion of availability of other affordable housing

options

Yes Page 97

In rural areas, data on developments in adjacent

markets with similar characteristics, if properties are

not available in PMA

Yes Page 97

Conclusions and Recommendations Yes Page 115

Candid conclusion about the subject property’s

feasibility in the market

Yes Page 115

Acknowledgement of Market Analyst

Signature:

Printed Name: Jennifer Atkinson

Title: Principal, Mitchell Market Analysts, Inc.

Page 124

Addenda

STDB Online Data Sources

STDB uses several databases as sources in their products:

Tele Atlas Streets

i-cubed Imagery

Business List Data

DigitalGlobe Imagery

National Geographic Topography

ESRI Demographics

ESRI Quarterly Population

AGS CrimeRisk

Market Potential

Workforce Strategies

FloodScape Maps

Community Tapestry –

Lifestyle/Psychographic

Consumer Expenditures

However, the report we generate from STDB primarily uses ESRI Demographics and ESRI Quarterly

Population.

Example of demand calculation

The following example explains how demand is calculated for the one-bedroom unit type. The

same procedure is used for each unit type.

The methodology for determining the minimum and maximum income was described in the

narrative of the report. This describes the methodology used to determine the percentage of

income-eligible renters by AMI level.

In this example the minimum income is $15,257 and the maximum is $35,640. None of the renters

in the $0 - $10,000 bracket are eligible; a little less than half of the renters in the $10,000 - $20,000

bracket are eligible; all of the renters in the $20,000 - $30,000 bracket are eligible; and a

percentage of the renters in the $30,000 - $40,000 bracket are eligible.

Page 125

To determine the number of eligible households in each bracket, the following algorithm is used.

This table is used as an example:

1. Eliminate any income bracket that has no eligible households because the income bracket falls

entirely below the minimum income or above the maximum income. Eligible households are

0%. (In our example, this is true of $0 - $10,000, $40,000 - $50,000 and up.)

2. If any income bracket falls entirely within the range specified by the minimum and maximum

income, indicate this bracket with 100%. (In our example, the $20-000 - $30-000 bracket at

100%.)

For an income bracket where the minimum income is included in the range, use this

calculation:

(Maximum income bracket – Minimum income)/(Maximum income bracket – Minimum income bracket)

($10,000 - $15,257)/$10,000

3. For an income bracket where the maximum income is included in the range, use this

calculation:

(Maximum income – Minimum income bracket)/(Maximum income bracket – Minimum income bracket)

($35,640 - $30,000)/$10,000

Once the income-eligible households by income bracket are determined, it is summed and divided

by the number of renter households in the PMA to determine how many are eligible for this AMI

level unit. In this example 201 eligible/707 renter households = 28.4%.

Unit Type Two Bedroom

Proposed Lowest rent $338

Utility Allowance $107

Minimum Income $15,257

Maximum Income $35,640

Year 2014 Total Renter Households

Income brackets # % eligible # eligible

$0-10,000 62 0% 0

$10,000-20,000 134 47% 64

$20,000-30,000 96 100% 96

$30,000-40,000 72 56% 40

$40,000-50,000 94 0% 0

$50,000-60,000 57 0% 0

$60,000+ 192 0% 0

Total 707 201

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