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MARKET STUDY FOR THE TUSCANY APARTMENTS I I I I I I I I ,I I I I I I I I I I I "'"'"PARDUE · HElD CHURCH · SMITH & WALLER TA~PA Pr.-)<:~~:,-:X/" . 4\~ 3, 5, I~ Market Study For The Tuscany Apartments, A 408 Unit Affordable Apartment Complex For The Elderly, Located On The West Side Of Missouri Avenue, Approximately One Mile South Of State Road 60, In Pinellas County, Florida MULTIFAMILY VALUATION GROUP of Pardue, Reid, Church, Smith & Waller, Inc. I I I I I I I I I I I I I I I I I I I Bradford L. Johnson, MAl Slate-Certified General Appraiser 0000409 CG~ PARDUE-HElD CHURCH-SMITH & WALLER TACZiPA Mark Silverstein, SRA Slale-Certified Residential Appraiser 0000895 APPRAISERS. REALTORS CONSULTANTS. MARKET ANALYSIS February 25, 1998 The CED Construction Companies 1551 Sandspur Road Maitland, Florida 32751 Attention: David N. Stimmell, Vice President of Acquisitions Gentlemen: As requested, we have prepared a market study for the proposed Tuscany apartments. The improvements will consist of a 408-unit (developed in two equal phases) affordable apartment complex for the elderly situated on an 18.0 acre site, with the start of construction anticipated sometime in 1998. The subject property is located on the west side of Missouri Avenue, approximately one mile south of Gulf To Bay Boulevard, in Clearwater, Pinellas County, Florida. The site for the proposed development is currently improved with the Sunshine Mall, a 430,573 square foot retail building developed in the 1960s that is now sparsely occupied. The mall is now proposed for demolition. The purpose of this market study was as follows: 1) To provide an evaluation of market demand within the competitive area forrental apartments with an emphasis on apartments for the elderly. 2) Identify and evaluate the relevant competitive supply of apartments. In order to accomplish the previous objectives, we have conducted the following research and analysis: 1) Examination of the subject site, surrounding development patterns, demographics, and other relevant factors that influence development potential. 2) Review of apartment trends for the regional and sub-market areas. 4915 WEST CYPRESS ST, SUITE 200 TAMPA. FLORIDA 33607 813-287-1020' FAX 813-286-8909 (RES) - 813-281-0681 (COMM'L.) I I I I I I I I I I I I I I I I I I I Mr. David N. Stimmell, Vice President of Acquisitions The CED Construction Companies February 25, 1998 Page 2 3) Identification and examination of specific competitive projects located within the subject market area. , This market study is the result of this evaluation, together with supporting data and documentation, as of the effective date of the report, February 19, 1998. Summary and Conclusions The general community of Clearwater provides an excellent variety of activities and services for facilities such as the subject. Most area banks are within close proximity of the subject. Medical services in Clearwater are provided by two fully accredited acute-care hospitals and numerous medical offices. Medical offices are predominantly located near the hospitals, with a wide variety of specialists available. The subject property has a good location in an area of established residential and commercial development. A good variety of shopping and dining facilities are located in close proximity to the subject properties, most of which are located in several retail centers fronting on Gulf to Bay Boulevard and Missouri Avenue. The subject's proposed improvements are compatible with surrounding uses and are considered to be an appropriate use of the site. The Pinellas County apartment market remained strong over the past three years. Occupancy remains over 97%, rental rates continue to increase at a steady rate, and most new projects achieved stabilized occupancy during or shortly after completion of construction. The subject's sub-market (Clearwater) has the second highest occupancy rate of Pine lIas County's five sub-markets at 97.9%. Based upon an examination of the apartment market and the competitive characteristics of the Pinellas County area and the Clearwater sub-market, together with the location and site characteristics of the , subject property, we believe that there is significant demand for the proposed affordable housing apartment project at the subject site. The analyses, opinions and conclusions were developed and this report has been prepared in conformance with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. I I I I I I I I I I I I I I I I I I I Mr. David N. Stimmell, Vice President of Acquisitions The CED Construction Companies February 25, 1998 Page 3 This letter of transmittal precedes the consultation report, further describing the property and containing the reasoning and most pertinent data leading to the final conclusions. Your attention is directed to the "Special Assumptions/Special Limiting Conditions", "General Assumptions", "General Limiting Conditions", and "Certificate of Consultation" which have been included within the text ofthis report. Respectfully submitted, Pardue, Reid, Church, Smith & Waller, Inc. R#"0- Robert Von, Commercial Manager State-Certified General Appraiser 0001604 . - "-- - ./ L ~ - ...::::::> Michael Ahwash, Associate Appraiser State-Certified General Appraiser 0002326 RV:MA:ggw TC980032 I I I I I I I I I I I I I I I I I I I PARDUE-HElD CHURCH - SMITH & WALLER TA~PA TABLE OF CONTENTS CERTIFICATE OF CONSULTATION ......................................................................................... 1 GENERAL ASSUMPTIONS................. .................................................................. ...................... 2 GENERAL LIMITING CONDITIONS .................................. ........ ........ ....................................... 3 SUBJECT PHOTOGRAPHS .. ............................ ........................................................................... 5 LOCATION MAP .................................... .................................................................... .................. 8 AERIAL PHOTO.. ..... .................................... ........ ......................................................................... 9 SITE DESCRIPTION......................................................................... .............................. ............ 10 MASTER SITE PLAN" .... ........... ....................... ................ ....... ........ ......... .... ........ ....................... 13 RENDERING.... .................................................................... ................................... .................... 14 .PROJECT DESCRIPTION................... ........................................................................................ 15 REGIONAL MAP ....................... .......................... ....................................................................... 17 PINELLAS COUNTY AREA DATA ............................................... ...................................... ..... 18 APARTMENT MARKET CONDITIONS OVERVIEW............................................................. 24 NEIGIffiORHOOD MAP................. .................. .......................................................................... 29 NEI GIffiORH OOD DATA........... .................... ........................................................................... 30 NEIGIffiORHOOD DEMOGRAPIDC ANALYSIS ................................................................... 33 COMPETITIVE PROJECT AN"AL YSIS ........................... ...... .......... ................. ............... .......... 41 MAP-MARKET RENT APARTMENTS............................... ...... ................ ............... ................. 42 COMP ARABLE MARKET RENTALS NO.1 THROUGH 4.................................................... 43 MAP- APARTMENTS WITH GOVERNMENT SUBSIDIZED RENTS .................................. 52 SUBSIDIZED COMPARABLE RENTALS NO.1 THROUGH 4.............................................. 53 ADDENDA APPRAISERS' QUALIFICATIONS I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH. SMITH & WALLERTA~PA .';"-':'::;f, TC980032 CERTIFICATE OF CONSULTATION We certify that, to the best of our knowledge and belief: . the statements of fact contained in this report are true and correct. . the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions and conclusions. . we have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. . our compensation is not contingent on an action or event resulting from the analyses, opinions or conclusions in, or the use of, this report. . our analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. . we have made a personal inspection ofthe property that is the subject of this report. . no one provided significant professional assistance to the persons signing this report. Pardue, Reid, Church, Smith & Waller, Inc. (2~ 0- Robert Von, Commercial Manager State-Certified General Appraiser 0001604 ;) -, ---.....' Michael Ahwash, Associate Appraiser State-Certified General Appraiser 0002326 -1- I I I I I I I I I I I I I I I I I I I S~lc~::'~ , .', " '-',.' ,',' '. ',-- ,-.-,', ..::.,:.:. ,,':, .',' '.:.-- "':""',"'" --,,' ."',, ..,; PARDUE · HElD CHURCH · SMITH & WALLER TACZfPA AWj1~:';::~ ' TC980032 GENERAL ASSUMPTIONS 1. The legal description, if any, used in this report is assumed to be correct. 2. No survey of the property has been made by the consultant and no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the property. 3 . No responsibility is assumed for matters of legal nature affecting title to the property nor is an opinion oftitle rendered. The title is assumed to be good and merchantable. 4. Information and data furnished by others is usually assumed to be true, correct and reliable. When such information and data appears to be dubious and when it is critical to the analysis, a reasonable effort has been made to verify all such information; however, no responsibility for its accuracy is assumed by the consultant. 5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified within the report. The property is analyzed as though under responsible ownership and competent management. 6. It is assumed that there are no hidden or unapparent conditions ofthe property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in this report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in this report. 9. It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted within this report. -2- I I I I I I I I I I I I I I I I I I I 11. PARDUE-HElD CHURCH - SMITH & WALLERTA<JPA ;p~>>V" Weare not expert in determining the presence or absence of hazardous substances, defined as all hazardous or toxic materials, wastes, pollutants or contaminants (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction, or otherwise present on the property. We assume no responsibility for the studies or analyses which would be required to determine the presence or absence of such substances or for loss as a result of the presence of such substances. GENERAL LIMITING CONDITIONS 1. The consultant will not be required to give testimony or appear in court because of having made this analysis, with reference to the property in question, unless arrangements have been previously made thereof. 2. Possession of the report, or copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the consultant, and in any event only with proper written qualifications and only in its entirety. 3. The distribution of the total valuation in this report between land and improvements, if any, applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. 4. No environmental impact studies were either requested or made in conjunction with this analysis, and the consultant hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies, research and investigation. 5. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to the public through advertising, public relations, news, sales or any other media without written consent and approval of the consultant. Nor shall the consultant, firm or professional organization of which the consultant is a member be identified without written consent of the consultant. 6. Neither our name nor report may be used in conjunction with any financing plans which would be classified as a public offering under state or federal securities laws. 7. Acceptance of and/or use of this report constitutes acceptance of the foregoing General Assumptions and General Limiting Conditions. -3- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLER TA~PA {"'"f'C:','> 8. The Americans with Disabilities Act of 1990 sets strict and specific standards for handicapped access to and within most commercial and industrial buildings. Determination of compliance with these standards is beyond appraisal expertise and, therefore, has not been attempted by the appraisers. For purposes of this appraisal, we are assuming the building is in compliance; however, we recommend an architectural inspection of the building to determine compliance or requirements for compliance. We assume no responsibility for the cost of such determination and our appraisal is subject to revision if the building is not in compliance. --4- pA.r~DUE ~~ HElD CHURC:H 19 SiVllTH &. \"1 ALLE 1"< TA~:PA L~~'-'-~~..~~ SIJBJECT PROPERTY LOOKING NORTHWEST FROM MISSOURI AVENUE .~, 1~('~-'- --"!~1J? , .' "" '-. ,-. ~ r'~'~~.7 -;(~~L~~: ~:. ;~:. ,:~i.:,-~<.t!~~,~>~- ~:~ ,"'>'.~:''.~:.'r.lf;;'~:~>_'~,',~''::-: .... - '. ." ,~, -:i";',;::M .~~::~!,;,:\i~' ;.:),\/~',-;;>', , , ~~ ;:~:.',' ,..':'~, '. ~ ,. .,. ';:,f" JL').i1:;r:. I SCdJTL~ l,l ";-:<' l' - ::: i\1'.'.;SC)L Rf./ ..! ;"JU;; ,J .' L-Cl(=iI::' rr~J;~_.: SC)lJT fr\.V,ES'f, r::? ()lvli j'~-:T;~' FU(_ - "~:~,.;-'.2 (C,N \VEST (;Lt)~ )\- ,. , .., "Y" ", iJtt), ;....\ <"I..it;- . r " :' ~:.:~~: .~. .; ~:"' .~ ~ ! . ~ :~- ~,~.,.....l>' '. ',~... \\>1" " 184 " \~.;~tR..,~;N;'i:l~ <It~ il _Vff . ~'-i ,!:~;(;-;<~~~'\ti,f~'.!ik.~'. W'';~~-'j[ittm~'III.. ' ~-~:!*i.'J._l . ,~,.' l.' '" -,-'-"-"~'~' ~ {;: r\ or: r'C T,L\i\~P/\ ~ ...,......'..~'.'."'-l'.. I-. _ ..~ ~,~ ;c_l t ';"7'-._. '- ..... I/If. ~(i \ " \ SubjeclphOl'oaN'pl ,- "',_ ""'_." ,-"~y -to v,) !OUK!!'!,'; ,-iCi,!,',; ',H. 'j) I '1'- - \.~.. ~ ,~' iV.i . ~...;t.'3(} u !-~_ I /\ \/[~!.'-HJE ii " y i 'i ~ ' ~~. / .'~ / ~/ ;" > ~ :i J..i~.' %$ I ,~ ~.t I.! I .~ - I LJD1DJ ,> \ \ .~ I I I I I I I I I I I I I I I I I I / IT:;1 I ! I i , I I I r C m "C ';"~V ~ Z (/) ~ < ~ :l> 0 If) ~ I .1 I TC980032 I I I I I I I I I I I I I I I I "'\-~'^':~ PARDUE. HElD CHURCH · SMITH & WALLERTA~PA !1"'(~r"""" k' . ",.. ,d' "";",,.,. AERIAL PHOTO I -9- I I I I I I I I I I I I I I I I I I I ,.:",,-,,,'-', PARDUE · HElD CHURCH · SMITH & WALLERTA~PA f"':i~%:,':5:<'" >',)',':%j:fi"~ ..-_.-.,;~-,,:;. ,",;..;:<:q:, ""<,V~~:'<;;; TC980032 SITE DESCRIPTION Location and Access The subject property is located on the west side of Missouri Avenue, approximately one mile south of Gulf To Bay Boulevard, in Clearwater, Pinellas County, Florida. As shown on the schematic Master Site Plan, access to the subject property will be via a main entrance driveway from Missouri Avenue with secondary access from Druid Road. The site is presently improved with the Sunshine Mall. The Sunshine Mall is a 34:t acre commercial development that contains a 430,573 square foot main building that is sparsely occupied and an unoccupied 19,450 square foot movie theater. The mall was constructed in the 1960s and was one of the first enclosed malls developed in the area. In the early 1990s, most of the anchor tenants canceled their leases and occupancy dropped very quickly as local tenants followed. The only remaining tenants are a dental office and an Office Depot that contains 50,000:t square feet. However, Office depot is constructing a new facility nearby and is expected to vacate the Sunshine Mall location in the near future. The mall site also contains two outparcels with a restaurant and a Visionworks retail outlet. Area and Dimensions The subject site is irregular, but functional for development, and contains 18.0 acres. It has a limited amount of frontage on Missouri Avenue and Druid Road as the apartment units will be located on the northwestern portion of the site away from nearby commercial development and traffic. Topography and Drainage The existing development has a low point at the middle of the site. Elevations for the entire mall property vary from a high of 55 feet at the west end of the site to a low of 30 feet at the east end of the site. The elevations within the subject tract vary from 30 feet to 48 feet. Soil and Subsoil A visual inspection of the surface ofthe site indicated no unusual soil or subsoil conditions which would result in reduced load bearing capacity, atypical drainage conditions or other conditions which would result in excessive site preparation costs. However, we assume no responsibility for hidden or unapparent conditions beyond the area of our expertise as appraisers (refer to General Assumption 6). We were not provided with a soil surveyor soil borings relative to the development of the subject site. -10- I I I I I I I I I I I I I I I I I I I ;, \:.:~' ~.; , :w,,..,":.. PARDUE-HElD CHURCH - SMITH & WALLERTA~PA r-:Y~$'::\~';'" . ',' :"-~.,i~:::: .,' ''">:t:, "; ',,,;"<~:! Flood Hazard Statement According to the Flood Insurance Rate Map (FIRM) Community Panel 125096 0015 D for the City of Clearwater, the subject property is located within Zone "X", which is not a designated flood hazard area. This FIRM map has an effective date of August 19, 1991. Utilities and Services All necessary utilities, including water, sewer, electricity, cable television and phone service, are available to the subject property. Zoning and Growth Management The subject is currently zonedCC (Commercial Center). A rezoning will be required by the City of Clearwater to CPD (Commercial Planned Development) and the criteria contained within the CI (Infill Commercial) zoning category will be used as a guide during the rezoning process. Surrounding parcels are zoned high and medium density residential (RM 28 and RM 12) to the west, office (OL) immediately north, commercial (CC) to the east, and public/semi-public (P/SP) for the school located south of the site. The City of Clearwater staff has recommended rezoning to CPD (Commercial Planned Development) using the density allowed in the CI (Infill Commercial) category as a guide. The residential density allowed in the CI district is 24 dwelling units per gross acre. The parking requirement 0.75 spaces per unit when a development is constructed with funds provided through an entity recognized by the City as a provider of elderly or low income housing. The Sunshine Mall parcel is located within an area of Clearwater known as the "Brownfield Redevelopment Area". The City of Clearwater was successful in its negotiations with the U.S. Environmental Protection Agency regarding the designation of much of the surrounding area as a "Brownfield" site. This designation allows both the City of Clearwater and the Federal Government to grant tax incentives and other related incentives to corporations that redevelop within the "Brownfield" sector. Comprehensive Land Use Plan Designation The subject is located in the Commercial General land use designation, which is consistent with its zoning classification. Allowed uses include both commercial and residential development. Concurrency There are no known concurrency problems in the subject's immediate neighborhood for development of the proposed improvements. The site will be vested from transportation concurrency because it is currently occupied by a portion of the Sunshine Mall and movie theater. In other words, the impact of the proposed use is less than the impact of the existing use. -11- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTA~PA ,.., ':,r"&_c~',""; k~;',:i;~*>,'" Hazardous or Toxic Materials No hazardous or toxic materials were observed and none came to our attention; however, appraisers are not expert in these matters and assume no responsibility in these regards. Refer to General Assumption 11 of this report for a full disclaimer. However, a Phase I Environmental Audit has been completed for the entire Sunshine Mall property, and no indication was discovered of a prior use that may have contaminated the site. Conclusion/Comments Our analysis indicates that the subject site is functional for development of the proposed improvements. The subject property has adequate access and is a viable location for multifamily development. Weare not aware of any easements, encroachments, or other factors that would adversely affect the development potential ofthe subject site. -12- i ~ 1- r-- -:-=~::=:c- -''=~~: :<'b. ,<-i\ ,<2:.' .:;~\ <:,-:; ~*~TI~~~~~~~~"-~~:'~I-~ , ' , " I . " ~~q -[' ,",,---~)I ~$ ,.-:0:' ,,, (,,' --0- 'V _ r~<~___~~--=:(-=- . ,-'.' v>r~.i=GY'- _ ~~ .X. .._.....+ ~==f<7-.;'. ;-7 SlC )Y "" __ _ ~:-:~:,J , . ' pr' -:..::- _ t -- - ~ --,' I L _._~~ I I i '--~~-'--'-~"-- i .~. ~ ~."""" I ~ ~g i ~ ~~ I . :;::; ! 2:n , , IT] I / h~,--..l '...~~'\~~: <~YZ <B ::::J j IJ ('ED - CLE\RW.\ TEfc SCHEMATIC SITE. PlAN COMM. "'0. ,- ~~ _'1.1_ ......... ~. .'C:"de .tIrt:~ij"ds ino;. '-...'.' ).." -"-'U~ ClE.~P'WATf.R. flOP./D_\ I~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~~:';;<:,: .~'.: ,"":.,:;.,,_ ";,,::,:,__,'::,:,,,';,.,-:- __ __' "," .-_ ,'..:' .-_,- :~__:, m'''^' PARDUE-HElD CHURCH - SMITH & WALLER TA~PA {1;{'"""*N:>:S~':',;,:-:,;,,,;^,~,,,,<~'0<~":' c.' "';':-,A';:;"::-:-W:; TC980032 PROJECT DESCRIPTION Type and Size The subject site will be improved with a 408 unit affordable apartment complex for the elderly (constructed in two equal phases). The one, two, and three-bedroom units will be arranged in two separate three story apartment buildings. Based on the subject site size of 18.0 acres and the 408 proposed units, the indicated density is 22.67 units per acre. The proposed unit mix is as follows: Type Number of Units Ratio 1 BR/1 BA 164 40% 2BR/2BA 228 56% 3 BR/2 BA 16 4% Total 408 100% Apartment Unit Characteristics As proposed, The interior of each unit will include typical features such as a range/oven, dishwasher, garbage disposal, frost-free refrigerator with ice-maker, and blinds. Cable television service will be available. Site Improvements Based on the current zoning, the proposed development will be required to have a minimum of 306 parking spaces, or 0.75 spaces per unit. We have assumed that the subject property will have typical site improvements for garden-style apartment projects including concrete sidewalks, concrete curbing, adequate lighting, perimeter fencing, and typical landscaping. General Layout and Efficiency Based on our review of the schematic site plan, as well as our familiarity with the recent development of several similar-type projects, the proposed improvements are adequately situated on the subject site and functional for their intended use as an apartment complex. In general, the subject property will be typical of newer average quality garden-style apartment projects. -15- I I I I I I I I I I I I I I I I I I I ~-~~;~.-:::::-. ,'" PARDUE. HElD CHURCH · SMITH & WALLERT'zPA ;:'i'.I:V..;,'<P~~H;,- c'~-':<'.}:,WM~', ','A''''-n' Projected Rent Levels Projected monthly rents at the subject property, as a LIHTC project, are as follows. Type 1 BR/1 BA 2BR/2BA 3BR/2BA No. of Units 164 228 16 Gross Rent Uti!. Allowance $472 $45 $567 $58 $655 $72 Net Rent $427 $509 $583 The net rents are derived according to current government guidelines. The gross rents allowed are 60% of median income for the metropolitan area, adjusted for household size and utility allowances. Water, 'sewer, and trash service will be inc1udedin the rent. Conclusion/Comments The proposed subject improvements will be of average quality construction and in new condition upon completion. The proposed subject complex will not have any physical deterioration or functional obsolescence. The subject property will be competitive with other similar-aged apartment complexes. The proposed unit mix is considered consistent with market trends, especially for affordable projects targeted to elderly tenants, and the design and market appeal of the subject property is considered above average. -16- I I I I I I I I I I I I I I I I I I I _ /f..mlnni~~_ Area Map ~.~ ~I if I I I I I I I I I I I I I I I I I' I I I I I ~:,~;' ,,: :'':''', ^ -. - -- ',-,'" .':' , - ' -,' PARDUE · HElD CHURCH · SMITH & WALLER TA~PAd' TC970172 Rev. 07/97 PINELLAS COUNTY AREA DATA Pinellas County is part of the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area and forms a major land mass within the economic, political, and social environment of these communities. Located on Florida's west coast, it is bounded by Pasco County to the north, Hillsborough County to the east, Manatee County to the south, and the Gulf of Mexico to the west. The following Pinellas County Area Data provide a general view of the county. Geographical and Physical Characteristics With 265 square miles ofland area, Pinellas County is the second smallest of Florida's 67 counties, but the most densely populated with more than 3,169 persons per square mile. Pinellas County represents approximately 6.76% ofthe state's population. The Pinellas peninsula forms the largest part of the county's area and, with the Gulf of Mexico to the south and southwest, and Tampa Bay and Old Tampa Bay to the east, there are 414 miles of shoreline. Pinellas County is fringed along the west by a narrow chain of islands; St. Petersburg Beach is the most southerly and Clearwater Beach is the most northerly of those connected by bridges. Population Historically, Pinellas County has been more retirement-oriented than Hillsborough County, where growth in commerce and industry has attracted many younger residents. Nonetheless, the 1990 census indicates that the Pinellas County population is becoming younger. Approximately 35% of Pinellas County's population is under the age of25 years, approximately 25% of the population is under 65 years, and 26% is over 65 years of age. Previously, nearly one-third of Pin ell as' population was over 65 years of age. The county's total 1995 population is estimated at 870,722 persons, suggesting a compounded increase of 0.55% per year. Age...qroup...... Population Projections By Age in Pinellas County 1990 2000,,:, Percent 2005 <Percent. <2010. . eliange ;;'Cliange 4.1 % 233,701 2.7% "12.1% 490,11~' ..... 6.0% 1.9% 224.625 (0.1 %) 948;499 '.. ";;i~~*cellf '. .'Ghange 0.3% 4~6%'" 4.1% 234,414 512~865 233.921 981,200 227,652 462,238> 224.910 914,800 218,719 412,308 220.632 851,659 0-24 65+ 'l'otil Source: Florida Statistical Abstract 1996, Bureau of Economic and Business Research, College of Business Administration, University of Florida, Table \.41, Page 37. Florida Department of Commerce, Division of Economic Development. Florida Population Estimates by County. -18- I I I I I I I I I I I I I I I I I I' I 'i'i'~"'^" ''': PARDUE · HElD CHURCH · SMITH & WALLERTA~PA }~_'(':" i'::~~;::.: >'<~-;,':'.d> Pinellas County population is expected to grow at an overall annual rate of 0.5% from 1995 to 2010, with the majority of its growth anticipated to come from the age 25 to 64 segment. This would indicate a slight decline in the 65+ age group. Governmental and Political Characteristics Pinellas County has a commissioner form of government and a professional county administrator. Within Pinellas County are 24 independent municipalities ranging from approximately 240,902 persons in the city ofSt. Petersburg to about 60 persons in Belleair Shores. About 30% of the county's total population is estimated to live in the unincorporated areas of the county. Employment and Economic Profile According to the 1995 statistics compiled by the Florida Department of Labor (the most recent available), Pinellas area employment is typical of statewide patterns, with nearly 68% of those individuals who are part of the work force in wholesale and retail trade or service industries. Unlike many other states, most of Florida's revenue stems from providing services to tourists and retired individuals. In thePinellas County area, approximately 40% of the population is either retired or too young to be considered part of the work force. The average monthly private employment total in 1993 and 1994, by major industry group, is shown below: 2,867 43,862 Services 119,112 Wholesale trade 15,010 'AT?Y'^"-rY::--~~~~:,:~t~(~::':"'" ~~ - ' ~o , ",......,.;::1f"W_?'>..;T:_-r:T.~':~.-.- ";7~"~: :~"-':'-:;'~:":'~-""1:~r:: -:"_'-~ :--' " "'~_ ..:~' ,------" .c. ,- ^' ~ "_,'~':~~~~~;::~F;~1-;":" -?':':-:'-r7:~:';;0{:"'--:' -"--'t~,'-""':~-:'-'" 'I~~~~ ..T.. . .rallsportatioi:ii.coiQinUnicatioI1;;and..utilities'!i,7';;';;~.;~;i'c?H.o~2;Z;: ;.,',.::_ . . ., " ,;.-',:,.. .__:~_;'_~_' "-"_::.:'.'C _, _,-,- , :"":::"",,,,:. ::"', >,"":::"0::" "'; :~'.:,.,~.,(."';,,.;.C. '.'"""',;,c:.>,." "..,',: ':,':';"","":'c.. '""'0,':,:' .',;:,;",",'., "'.:.'-"":>:0'::,:.,,' ...."~'H' x;.-."."'.~'"",.:<-'.... .'::,':";'..... ''''',':'''':::::':'''-- '" "':::",'-'.' :",~,;""".,. Retail trade 79.312 Source: Florida Statistical Abstract 1996, Bureau of Economic and Business Research, College of Business Administration, University of Florida, Table 6.05, Page 234. Florida Department of Commerce, Division of Economic Development. Florida Population Estimates by County, Pinellas County has made a concerted effort to attract clean industries to the area. From 1960 to 1980, there were 1,633 new plants and expansions in Pinellas County, creating 36,530 new jobs. The efforts of the State Bureau of Industrial Development and the Pinellas County Industrial Development Commission have resulted in 912 new plant facilities and expansions since 1975, creating approximately 10,130 new jobs. The chart on the following page outlines the Tampa Bay area's major employers. -19- I I I I I I I I I I ,I I I I I I I .1 I :"";>>.';, -^'~ PARDUE-HElD CHURCH - SMITH & WALLERTA~PA ~/:,:::~,;,.,:" C,' Bay Area Employers Busine~~H~' , ,;i'j.it.!*"p!()t~~~ County School System Public education 11,261 GtEl~~~",)t~!:~~:TT'~T:,'.."'7'~X':".:':"'r.~;:?;'.--~'.....,'.,tejecamnlUtilCitlonS'~';;0:0:.tt,,~~;rq~i~5 St~t~()f"Fi;ri"d~f-~"" "" ~"_~~;,,,~_,c,_;._ St~t~"g~~.~;~tit . ,-' ,', " '~"-~""'~"8, 795 _ _'yO ': ,;'A., ".""_.~".,.",, ::__", '_~''-' ,\;___:'_0. ~ '_,' -~,-__:-",,, ':'-, ,:,- :~:. ":"3,' " ,1:'::: '- ....>"'~'::~~""':: ~:"'::<,'" --,: '-~ - -- "'::>-::-",""'~'.~L:L'~'."~:~~7<'.:':'_:-_,,'~ " -, ':-~'::-.>t.)~-~,~~-.',:" "';:~":';'~~?:':7~""'):" ,.,::?,.,,,:- - ,--' MacDill'.AihForce .Base' ..' .' " ......... ,'...,.....:" .......... '., .... ..Military;',,;'r(';'.:.........'...'.. .".'.~.i.'.....'..,.;..;......,8qOO ~__ ',_ ,~':: ;._,;;;;;~.-.'_h _,.......'_'"',,.'.. ':~:_ .- c, '_''''_'' P:- -" - _, __ h_ ,'_';__ ,~,.>~.-;;,':o~.._-::'..,---:-,.,...f...- ,"':"'--...--<. ''''_' ,',".' ,*."., ',', _:;.0: ~.~, ,:"cO.:'W-'~_::'~...,,:':.O_:..,~- .._...",,,.,,,-:~^,,:,,,, ~'"'-c -,,<'--;2--"_'''_:;;;:::,-~;l.ll;'''"'-,;,^<yo..,.,t~<.',; ><___,-_v<c,: U.S. Postal Service Mail delivery 6,753 :g.~1?!I5(!t~~~:,~~~..0......2...'....:.]~.:;L::'!'~.....~.. ~?.B-et~~1~~().9;~j~i..:.:'.2..'."F./8[.~!j.iT[D:?~~;~~7 Winn Dixie Retail grocery 5,000 _ -:-_~:_:".:""-:~--:'--.-'__-f-- "''''':''_:__:-00-- " .- '^.-__'_/ ,,~'C~~'t - "~',:::~~' ", ,:"':, - :'4 ,x:~,>:-_?':<"'t:";.~,~.-_-!,'t;".""::?;_::: .-;:,C:::,~::Y--T~-: :__-:;: ;-,::-:-'...~- - _ - _ -' ' .- :'''^ - ,'::"::':'1': '7 ,-~ ,(':">::'::~,,:::',;:'-'~!:::,,\'>,:' ;--:'_ ,':,;",',-:r:' .--,-, " ':: '_ "::0':':""''--: ,- .. Sears.Roeb~ck,...&.....eO,)"":(,,.........;..:;r,.)(0.;?.......,.. Retai1,insuraIi~e', ................................. :tt4,.;948 :;"'_'__" '.'0_:;'-_", ,_"A" _ ' _, :.', _''; ," '0-'" _ ~y_ y-,__,-_*",_:,,,-",,>i;:.w ",--<<._. "" "'-_'<'_;";"""'.' ';" ,,,. -<_,:'.'.,: ,,:';' ,^-.-;._,,,;:M.;,,,,:,'~,",,~;_ ~..';...-,-_.... . ' __ - _ -M... ;, ~""... ,-" ,"'"" '-.._~;"'.~h" >, --,,,--..,,~ ~__'c ';,'''';'',-~ -, '~~"::'''''C'~ Kash N' Karry Retail grocery 4,937 ,_",_ _:.,? ':' _ __"'c"':~-__:' .v_ _.__" ":__ -::_-,~:,::"''':''.:---'C':''.:_~-ry',-:--.<-'\: :-.. ':~ '''':'__-'::, ~'--.,-';,.-"','s":~::-:~':->.,-~~-;:'::-:~~'~:':'-::-><::-:: "_' '_--' ", _1' :' ' ,- ..' - "?-:':":'~~':'::<'~ .^'-'<:::~:T~' :",~.'",::__' :: :--'---<:~.-- .-_~\~;' '''-::'~'7r'':-'-'-;--_:; ,::-~':',:::: ::' ,- ,-'-:__'-'- '" "".','4 Tamp' aInteri1atioi1alA~mort ....;..<.......- .A;..-nort, "'.;" -",;}+...,.... ..... ,,: :>,,!,,;;{"..4'899. ~~ ~--':__...._ _ __ :. __"_ "_~_" _ '_.,'~ _ ''.< ,,': --,....,>,d"~:":.,.-....,~,,,;:;~~4;.,,~'<"",:-;;;~~~-::&:;\;'~~::::.:'j-',_~_..o'::;:J';,~., ',::,,~ ~ ,..ru..a. p _,....., ",,_:~:':':,: i;_::.:,\.-_:_':-~:--;':v,l:J:,;~\:-:,\i-\.-:~~:o~~: ;~', :~-'~~ -:-.::-':'~:~::,~%/l~~:;,J:j,:':';;~'-, '---:--~:";.,j :~:":- Burger King6 Restaurant 4,800 .s::;jW~~f]'t~p~;S~,}=;S:.~'==inl;~.=~cili~;(:;y.~.. cCit);gq,~~Eilii~pI;f;!;U,i'.i.ISR.;T.').;.'~i~~z Univ. of South Florida Higher education 4,202 II<>me;$l1qppmg>>NetW()r122,IT~..,P.:,f?:7;..'7~Meichai1Ws#i~~Edi~~;':~-7'5-"'...:.~.Sj5:29Q. H~~i"Tanipa B~y7 . 'd" -,~,. .... liospit~ls: ~~~g~d ~~~. -" "" 3;500 ~tlS1cJ2:S1cerd:Qor:p~ '.' ...... . '.' ,,'i"'" :.:........."'..;:'..,. . ..Drug~t()Fes:.()therxettJ.il.. r-~.:.: :." /:./2 ,375 CitY~ist:-p~t~~sr;;g -~..~~~~~'~-~=-~.~.City g~~e~~iit ~- .".. '" ..- ".'.'-~ 3,145' p.~~n~;g~lffi~~gy~~~!~~'.~l5!;_)'lJ-r.G~ve~~!i~~~€~s.],~2-r~1~'2.'..52?;g24 Honeywell Space Systems avionics 2,500 N"aB:2~l3,aT1k~T.!;:,!.ili<;11>..j~~li,~;~;JG8';\'.2.18.'1.....,. . McDonald's- Tampa Bay region Restaurant 2,900 ~!()ricl~f>()W~.g~rp:j:iD>.I1i,}\..';':"'?11Fi;;':>i. UtiliiY';;""C": . .e;;."" ". . St:' J>~tersb~g/Cle~ate;;fut1: ~ort9' .'" l~~~~;;l:Itl!e~,X~t~~lg~~pl@i.'l,'}lz" Essilor of America Manufacturing 2,449 I<#13it.<:::(jrp~J;E..7.;.~;?1....:......>*;,~:~.~.~~~~I'0.Z';/~~....Retail~~S~..lf\T.RJ5-iF,.:~~~~.!.)."".'.:.2~3y$ Ti~e;Pti'biishl~g;co'" .;.~",.."h .... Newspap~r 'pt1biis~g..n. '''''''2jT2' ~}1~~;~]!ffi!i~me~!,S::;~~: _;TIt~~if!L~~28.t'\~;i..l~.i~ml.E."..~.;~gg Morton Plant Hospital Hospital 3,000 __':""-"-~' __'_'~""""',\ ____A." __"'" _,~____:_, '~:'::':-:' ", "",:~",t"-~'-~ "--""__~-:_::'~:: :'"', '_, :t>'~_:~:':~,-.'/-:.-~':J':::~'4:'~~.r~ ::'.":::T~C'~_-'--"-:;-:'~~- '" ,..-:::- :~ :.'..,':,"'r-:~-:':-'":'T~'~:'-',~,.,":,:,.,., .--..--:-:': .:' '-: ~~-:',~: __",,.,,f,_ ,"~" , 'v,'__'"",:"_~ -' _...-_,-v- ',-.. AT~T.ParadyneCorp~..?, ....... .i');;....... .DataconmlUmcatlons';' "0"" ".1,583 _;, ;;____;~":~".;';__:,:_,;>:,'--,.>r,._. ',_ ____/'>1<'::':~::,;:, ,,,-:,,,:"':,,: _ c- :;~_,;.,,_,^_",:,::",,~ --- ",i:(',;.,__- Oh'..,,'';;-_. ,->,,:<,,,,.-_>_;..~_,;, ,',_- _",_,:'..,,:, ('.'~'-'" , '__c:'" Mease Hospitals Hospitals 1,500 Tn~~~~2ri1Parlyl ". ..:;'~.;1':";;.., .-' :.~~\vSpap~PR9lishing.:;..2,Q09 V.A. Medical Center Hospital 2,000 Pinellas County has a strong economic base that is fueled by tourism, service industries, and retiree influx. Much of its strength comes from retiree cash reserves transferred from other areas of the country. In fact, the county's bank deposits make up 8% of Florida's total deposits, compared to Hillsborough County's 5.5% of the state's total deposits, making it attractive to major banks as a source of funds. -20-- I I ,I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTA~PA ~",:"~,,,,~,~;:,::~,_.,..- , Tourism is a major component in the state's economy and has a major impact on the local economy. The Florida Statistical Abstract, 1996 ranks Pinellas County as the fifth most popular destination of visitors, sixth in tourist developmental tax collections, and sixth in the number of food and beverage establishments among Florida's 67 counties. Tourists are drawn to its beaches and accessibility to major tourist attractions such as Busch Gardens in Tampa (one hour via interstate) and Disney World in Orlando (two hours via interstate). The Tampa Bay area is one of the wealthiest markets in Florida, second in the southeast, and 24th in the nation. The Florida Department of Commerce reports that the mean 1993 per capita personal income for Pinellas County was $22,789. Transportation As noted earlier, the Tampa Bay area is a hub of a varied network of highways, railways and seaways. The road system of Pinellas County connects the entire county with state and federal rapid-flow expressways. One connector is Interstate 275, which links Tampa with Interstate 75 (a north/south route) and with Interstate 4 (an east/west route). The southerly extension of Interstate 275 aligns with Interstate 75 in the Bradenton/Sarasota area south of Tampa Bay and provides access along the west coast of Florida. The most heavily traveled north/south route through Pinellas County is U.S. Highway 19, which extends north along the west coast of Florida and south across the Sunshine Skyway Bridge to connect with U.S. Highway 41, which continues south through Sarasota and Fort Myers, then connects with routes east to the Miami area. The Florida Department of Transportation has recently completed a bridge over the western edge of Old Tampa Bay that connects McMullen Booth Road in northern Pinellas County with 49th Street in southern Pinellas County. It thus creates a second major north/south artery to ease traffic congestion on U.S. Highway 19. Other major Pinellas County routes include State Road 60 and U.S. Highway 92, which extend easterly through Tampa across Florida. Most trucking companies have routes through the area and supply a majority of shipped goods. Greyhound and Trailways bus services provide intra- and interstate transportation, and the St. Petersburg and Pinellas County Transit Authorities serve the municipalities of Pin ell as County. Tampa International Airport serves the majority of air transportation to the Bay area. This airport, considered one of the finest in the world, is served by most national and international airlines, and accommodates both passenger and freight service. Tampa International Airport is located in western Hillsborough County near the Interstate 275 Causeway and is between 15 and 45 minutes' travel time from most points in Pinellas County. St. Petersburg-Clearwater International Airport, operated by Pinellas County, is located on the eastern side of the county, at the western end of the Howard Frankland Bridge (Interstate 275), near the intersection of County Road 688 and County Road 686. The facility, designed to handle large jet aircraft, has a Federal Aviation Administration-operated traffic control tower, a weather data station, an FAA-approved repair facility, and electronics systems to assist in low-visibility landings. This -21- I I I I I I I I I I I I I I I I I I I PARDUE-HElD CHURCH - SMITH & WALLER TA<JPA ;<~;:~-"",:" -,"-'--~)\'- airport is currently served by small passenger airlines, and freight service is provided by United Parcel Service and the United States Coast Guard. St. Petersburg and Clearwater both have downtown airports for small aircraft; the St. Petersburg facility, Albert Whitted Field, fronts Tampa Bay at Fifth Avenue South. Education The Pinellas County school system, with a 1992 to 1993 enrollment of98,047 students, is the fourth largest school system in the state, and 24th largest in the nation. There are over 75 elementary, 22 middle, and 15 senior high schools, plus four exceptional student centers. In addition, there are approximately 88 private schools located in the county, with an approximate enrollment of 13,500 students. Five colleges or universities are represented or located in Pinellas County, including the Bayboro Campus of the University of South Florida, Stetson University, University of Tampa, St. Petersburg Junior College, and Eckerd College. Furthermore, there are three community colleges and three vo-tech schools within a 50-mile radius. Social and Cultural Characteristics Pinellas County's best known attribute is its beaches-miles of sandy shoreline to the mild Gulf of Mexico bring out the boaters, fishermen, and water sports participants. A significant seasonal increase in the county's resident tourist population occurs during the winter months. As a result, roadways become more congested, restaurants and shopping centers are more crowded, and cultural event calendars are full. Clearwater houses the Ruth Eckerd Performing Arts Center, which stages numerous musical and theatrical performances during the winter and spring months. Clearwater also hosts an annual jazz festival in the fall, as well as its Sun-N-Fun Celebration in the spring. St. Petersburg's spring festival is known as the Festival of States, which includes a parade, art shows, music concerts, and food-related events. The Renaissance Festival, held each spring in Largo, is a 6-week foray backward into 16th-century England and is the highlight of the spring season. Recreation Recreation facilities in the area abound. In addition to the many miles of public beaches, there are several county-maintained parks offering a variety of activities. Professional baseball, greyhound racing, horse racing, andjai alai are all within the area. Of the 31 golf courses in Pinellas County, 15 are public, 9 are semiprivate, and 7 are private. Municipalities throughout the county provide programs for football, tennis, soccer, baseball, and other activities for children and adults. Also, as noted earlier, tourist attractions, including Walt Disney World, Cypress Gardens, Sea World, Busch Gardens, and Sunken Gardens, are within 80 miles of the Pinellas County area. -22- I I I I I I I I I I I I I I I I I I I li;'cL'.... PARDUE · HElD CHURCH · SMITH & WALLER T~PA ft?~j-q~::~if,>:,::':::,: S~)'.~,{:;*f:'f. 'A"'"'t~i,t,r~ The St. Petersburg City Council recently changed the name of its domed stadium, just west of the downtown St. Petersburg area, from the "Thunder Dome" to the "Tropicana Field." The Bay area's view expansion baseball franchise, the Tampa Bay Devil Rays, will begin play there starting in 1998. Summary and Conclusion In conclusion, the long-term outlook for the Pinellas County area is positive, recent declines in the unemployment rate has positively affected the market for most types of real estate. Currently, property values have begun to increase, and observations indicate increased absorption of most types of space (albeit at slightly lower rental levels than those of the 1980s). Mindful of this, we believe that the overall Pinellas County economy is well-balanced and should experience solid growth in the years ahead. Pinellas County represents a unique "snapshot" of the general aging of the population in the United States and is often studied as a representative microcosm by planners and marketers. -23- I I I I I I I' I I I I I I I I I I I I .."'_, A' ,..- ,-. PARDUE-HElD CHURCH - SMITH & WALLER T;JPA D:*,r:;~(",~"" <>:'::,:'N:~",,;1(.I@fA: . '~'/'~;W'f( TC980032 APARTMENT MARKET CONDITIONS OVERVIEW Market Profile According to the Bay Area Apartment Association, the Pinellas County apartment market includes 214:1:: developments totaling 45,307:1:: units. The Apartment Association survey segregates the market by date of construction. According to their survey, the largest market segment (53.1 % of all units) consists of complexes developed before 1979. From 1990 to 1997, about 2,688 units (5.9% of all Units) were developed in Pinellas County, not including those units that have not leased 95% of their units during the initial lease up.' According to the Apartment Association's survey, the subject property is located within the Clearwater sub-market, which generally includes the area north of Ulmerton Road, east of the Gulf of Mexico, west of U.S. Highway 19 and Tampa Bay, and south of Curlew Road. The Clearwater sub-market includes about 14,148 units within 68 developments, of which 810 units (5.7%) were developed after 1990, not including those in initial lease up or which are currently under construction. Occupancy Trends Pinellas County's apartment market improved significantly during the early to mid 1990s due to a period of limited new construction and increased demand from national investors. The market has maintained an overall occupancy rate of between 95% and 97% during the past few years. A summary of occupancy rates within the various Pinellas County sub-markets is included below. 96.2% 97.9% 97.6% 96.4% 96.4% 96.8% Occupancy-New Units 9197(1) 9196(1) 97.3% 94.8% 98.0% 71.8% NIA N/A 98.0% 97.0% 99.8% 96.7% 98.2% 83.4% 9/95(2) 98.0% 97.0% 95.2% 98.2 97.5% 97.4% Occupancy-All Units Study Area 9/97 9/96 Clearwater (Subject) 97.9% 96.8% Palm Harbor 96.2% 89.5% St. Petersburg 96.6% 95.7% Largo 97.4% 95.8% Gateway 98.5% 96.4% Pinellas County Total 97.5% 95.4% Source: Bay Area Apartment Association (I)Units built after 1990 (2)Units built after 1 987 9195 As shown above, the overall occupancy rate in the subject's sub-market (Clearwater) is 97.9%, which is slightly higher than the county's overall occupancy rate of97.5%. This can be partially attributed to its convenient location and minimal new development over the past three years, due the lack of . available vacant sites suitable for apartment development. -24- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTA~PA ~~m<_~/(,.:,;'::,:i?~J,~'<<~i\ "":_,;-:':~"'i,:,'~~t0nt0 Rental Rate Trends The average monthly rental rate in Pinellas County is $624 for all apartments and $812 for units developed between 1990 and 1995. Within the subject sub-market, the average rent is $626 for all units and $805 for units developed between 1990 and 1995. The table below summarizes changes in rental rates for various unit types within Pinellas County and the subject sub-market. Pinellas County One Bedroom/One Bath Two Bedroom/Two Bath TIrree Bedroom/Two Bath September 1997 $505 $674 $788 Average Monthly Rent September 1995 $485 $616 $712 Percent Change 4.1% 9.4% 10.7% Clearwater Sub-Market One Bedroom/One Bath Two Bedroom/Two Bath TIrree Bedroom/Two Bath Source: Bay Area Apartment Association $521 $683 $821 $469 $628 $734 11.1% 8.8% 11.9% As shown above, rental rates have increased steadily over the past two years for all unit types, in both the Pinellas County market and the subject's sub-market. The solid growth in rental rates can be attributed to the relatively low level of new apartment development over the past several years. Rent Concessions Within Pinellas County, fewer concessions are being offered for all unit types compared to one year ago. However, the dollar amount has increased for most unit types. TIris is mainly due to concessions offered in older properties facing the greatest competition and new properties attempting to lease to stabilized occupancy. The subject's sub-market reflects a downward trend in both number of properties offering concessions and the average dollar amount. The following table summarizes these trends. Concession Trends By Unit Type September 1996 September 1997 Percent Average Percentage Average Pinellas County: One Bedroom 32% $246 20% $287 Two Bedroom 24% $306 12% $365 TIrree Bedroom 11% $367 5% $248 Four Bedroom 0% $0 0% $0 Clearwater Sub-market: One Bedroom 23% $244 22% $213 Two Bedroom 23% $291 12% $232 TIrree Bedroom 9% $439 5% $75 Four Bedroom 0% $0 0% $0 -25- I I I I I I I I I I I I I I I I I I I hd:~',:^ PARDUE. HElD CHURCH · SMITH & WALLERTA'JPA ff~~lfi~~fi?~ y<':~:::~';;__:/~t4~:"- '.< ;:;:::'--Y~'~'0.'r-::-( New Development Multifamily housing construction and proposed new development in the pipeline for Pinellas County is at its greatest level since the 1980s. The pipeline of new or proposed rental multi-family developments, with a high confidence of obtaining building permits in the next 12 to 18 months, has continued to grow. Investor interest and confidence in the area has increased as a result of the positive market performance demonstrated over the past 36 months. The following table summarizes the projects currently under constructic;m or in lease-up, as of September 30, 1997. Projects Under Construction or In Lease-Up Project Units Start OwnerlDeveloper Status Landing's@BootRanch West 232 4/96 Gulf Land/Related 70% leased, 53% occup. _ East Lake Club 240 12/96 BRS Corporation 70% CO'd, 26 leased, 20% occup. Windser @ Landsbrooke Village 280 6/97 Carvill Dev.!TRS Pre-leasing; 1" C.O. 2/98 Bay Isle Key 369 7/97 Echelon International Gmd Brk 7/97-1" CO 3/98 Grand Reserve @ Park Place. 390 3/97 Del AmericanlLecesse Gmd Brk 3/97-1" CO 12/97 Total Units 1,511 · Located in the Clearwater sub-market Pinellas County is projecting 1,563 new units in the pipeline for 1997-1998, which is the most that it has seen since 1989-1990. However, it is realistic to estimate that 10%1: of these proposed properties will not reach permitting or construction. The following table summarizes the projects with contracts or "in the pipeline" as of September 30, 1997. Project Wellington Aparnnents. Sunshine Mall Site* Projects With Contracts or In Pipeline Units Start OwnerlDeveloper Status 352 10/97 Carvill Development Tax credit; Gmd Brk 10/97, 1" CO 6/98 408 CED Construction Under Contract; Due diligence, LllITC for elderly Under Contract; Due Diligence Land owned Land owned - Proj. Brk Grnd 11/97 3/98 12/97 11/97 Coast Capital Echelon International Echelon International Gateway Park 261 Bay Bridge 228 The Reserve @ Carillon 314 Total Units 1,563 · Located in the Clearwater sub-market The Palm Harbor/Oldsmar sub-market has been the most active area of the county over the past year. Over the next 6 to 12 months the Gateway sub-market will see a significant influx of new product inventory as Echelon International begins to implement their development plans for the construction of their first new project in the area. This will be the upscale community of Bay Isle Key and will be followed in the 15t quarter of 1998 by two other properties, The Reserve @ Carillon and Bay Bridge Apartments. Of the 1,511 units in lease-up or under construction, all are considered up-scale or luxury apartments. This trend is expected to change, as 49% of the "pipeline units" will be LIHTC projects, with the Sunshine Mall Site (408 units in two equal phases) planned for low income housing for the elderly. -26-- I I I I I I I I I I I I I I I I I I I ~...:~:':<, \,~~,:;'> PARDUE · HElD CHURCH · SMITH & WALLER TZPA ~t%;~~;<'i~ ' ;;'i:':';/(~,~~^' . The level of new product under construction, in lease-up, or in the pipeline should not oversupply the market. The current occupancy rate for the Pinellas County market was 97.5% in September 1997, up 2.1 % from the same time in 1996. Occupancy rates may temporarily decline periodically as new product is brought on line. However, the long term outlook is for conditions to remain strong due to the fact that the county is limited to 8 to 10 premium multi-family sites for development beyond those in the pipeline. Absorption The absorption of new units in the Pinellas County market indicates strong market demand. For instance, the Vinings began leasing in January 1996 and by March 1997 it was 95% leased, indicating an absorption rate of31 units per month. Another example is Heron's Landing, which leased to over 95% after a 16 month leasing period indicating an absorption rate of27 units per month. Egrets Landing was near stabilized occupancy by the end of construction in late 1996, indicating an absorption rate of 16 units per month (leasing began in June 1995). According to information contained in our files, five new apartment complexes in Pinellas County started construction from 1995 to September 1997. Three have reached stabilized occupancy with the remaining two currently under construction and in the lease-up stage. The average size property was 272 units, with an average lease-up period of 14.7 months (for the three stabilized properties) and an average absorption rate of 22.1 units per month. Sales Activity According to a Cushman & Wakefield survey, there were 33 apartments sold in the Tampa Bay Area in 1996, indicating a total volume of$252,520,714, or $28,912 per unit. This is an increase of8% over the 1995 average unit price of $26,673. Most sales were portfolio sales stimulated by a continuing dissolution ofpre-1986 limited partnerships, developer sales of new product, and private investors capitalizing on value gains. The majority of activity involved 1970's product requiring renovation, which accounted for about 55% of sales. About 9% were Class "A" assets, with the remaining activity involving Class "B" 1980's properties. Investors continue to show interest in Bay Area Class "A" apartments. However, the supply is declining, so prices remain high. Many investors are from Asian countries, including Japan, Singapore, Korea, Taiwan, Indonesia, and Hong Kong. Market participants report that this would be a favorable time in this cycle to sell property, with good quality apartment developments being aggressively pursued by REITs, pension funds, life insurance companies, and limited partnerships. Conclusion The Pinellas County apartment market remained strong over the past three years. Occupancy . remains over 97%, rental rates continue to increase at a steady rate, and most new projects achieved stabilized occupancy during or shortly after completion of construction. The subject's sub-market (Clearwater) has the second highest occupancy rate of Pin ell as County's five sub-markets at 97.9%. -27- I I I I I I I I I I I I I I I I I I I ,,,:.',:', PARDUE · HElD CHURCH · SMITH & WALLER TA~PA (~V?.::;-c,-,... ' , ''''i",' '-':-;"<:-':;'i, There are several new apartment complexes either planned or under construction in the market. However, the market has absorbed a record number of units in each ofthe last three years. Industry experts project that.lOO new jobs create demand for 20 apartments. Pinellas County has recently experienced growth of about 18,000 jobs annually, indicating a demand for about 3,600 new apartments annually. -28- I I I I I I I I I I I I I I I I I I I __~u 1111,..:4 Cl~~L!Jm~:~ ~, I Neighborhood Map ~ rl~f- =-:-'1./~ffrO ~t ~).~ . .. ~.. b. 1TIm ~l'~"'~~ ~'-~ , .. ".: ,~:-O" ~ v II UID l. B 'fJ ~-d~ ~ ~ ~r, tE11il)...-.... I u~. ~I\ ~ Iii' 19V f1 1! -' III i= . ~ I.. ,c, ?~ "'\,.T./ K h- u- rI ~ttj: :,e t"T?',~ 1. ~~~\~1 ~ ~ E; Iq--- f- I ; ~'!J F-t ~.. ... J:=::;i l <::J-~ ~.l::= _ ')::...-=l ~ I f- .Camp Soule 19A I':: ITi+ . "..'.,.. . '- ~"'11 I-- L- I I' I ~ ~/.........I.:ll~r .......r --..~ ~M~' f--. ( i L. ' t-- ~/lhhW3 ~niSlt:: t lb'" - r;:f-<B' -c!.J~ III ~ \~:: ~:l...JLn I:::: ~ I~ R eke.J v-zk,,~ZfiI.- T - q lr .....'. CIRl5-lS:z .llJh1 ~1~J~n Ifill:~t:: - ~,.~. 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I I J.f :-c ~ q:r;:;, \J~' 19A -\~ I). ~ Y, :-. rrH .... .~O ~: I '-'''-..,~'' %i " ~;n~....~~ ~ ~(19Jrj~1 (II~ ---m~' ,Jd- .b . - .. -eubject ~~ 1\\ ". ~ I \ 1- rf~M ~ IF I -1Jttt, . ..' /, +il 8q..... 1==_ L i'l Il- :::--..1 r-- ~~c b I> ,cc _' ~I '~~;'~I:II=': -cr. ~I ,,'1 ~ LLJ 'IIII~ I~ i~i' '.'~." a',U I' ~ ~LU ~ 1'\ ~I'-C ~..~I '-u . ..'-.1 ;-0::: 1-= .. " ~ ~ ~ Q---- 0 ~,n tnl 'f=f r., J.I m --: 19~?i \1 r \1 ""1 .UI~ .-. -P-,I L-I) I .~ I I ~~ .............> ~~'\:#I. I ~"\,I'" ~.c;-7=:::..j\./\] \ 1\ ".1' .'.'\.~ in ~~__8 I Wllirr-,c:e.r ~ =;I~~ j( ~ I A n ~'+~F"~~~'iV:E~i;g~~*b J ~~~-;~1I1 ~~~ ~ IJI'~ I ~ ~II ~,~(jU\Ul-~ ~ III L I~f[~ul~~. ) r-~ \ I It;] r n-~~! 1/ _ i-, icFillI : LL fc{ mTI ~~ 1\ l!! Mi I II lZ;J' L (j~li ~mw~ ~~~9A I~, ~ J L TII~ .r.~~. I ~ _~ r:~) ~ ~L bV~.' Ird 686 ,ll(:'Tl/J:Ttv;;ril;! ,..6te"f-- .\-> I 1V ,\I I\J r; Fi===l1 rP.a k c:t..1 - l-:r ~ ~ ~";:::r ~ ,I- \]}686.. - L R' 11 r::=1l.. '. (cGOOntyFairgrOllnq. "I,. L II'L-- \ /' 1~L-.rID ,L' _~\_." f--- '--. \ ' '''\' ."'..1". ill ,- 11- ~LQ: 0 'TI i ~ _r=l ,\_ ' I~I- ~ < \ c> C II ..-.J -, t1 ,6 - 's tree,t-Mas =-.:.", \ : ~ ! = ' ;;<'"yji;;~ rmTP _IV \ tr - II I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTA~PA TC980032 NEIGHBORHOOD DATA Introduction For appraisal purposes, a neighborhood is defined in terms of common characteristics, trends, and groupings of similar or complimentary land uses. This section of the appraisal report will discuss neighborhood conditions that enhance or detract from the subject and surrounding properties. The subject is located on the west side of Missouri Avenue, just south of Gulfto Bay Boulevard (State Road 60), in Clearwater, Pinellas County Florida. This location is about 1 miles southeast of the Clearwater central business district. The boundaries of the neighborhood are considered to be the city limits of Clearwater which are generally defined as follows: To the North: To the South: To the East: To the West: Curlew Road Belleair Road Tampa Bay Clearwater Harbor The neighborhood is dominated by single-family residences, with commercial, offices, industrial, and multi-family apartments located along major roadways. Please refer to the exhibit entitled ''Neighborhood Map" for orientation. Surrounding land uses include an apartment complex to the north, the Commercial development and an elementary school to the south, commercial development to the east across Missouri Avenue, and a residential neighborhood to the west across Greenwood Avenue. Primary Thoroughfares Major roadways servicing the subject neighborhood include the following: u.s. Highway 19 is a major north/south artery that extends from Manatee County, over the Sunshine Skyway Bridge, through Pinellas County, then along the west coast of Florida and into Georgia. The six-lane, asphalt-paved, divided roadway has been improved with overpasses at many intersections throughout Pinellas County to help traffic congestion problems associated with major intersections. Most of the land uses along U.S. Highway 19 are commercial in nature, with several large community shopping centers, restaurants, and "big box" retail centers constructed during the last 15 to 20 years. -30-- I I I I I I I I I I I I I ;1 I I I I I ,,,,~,~';-:,;', . PARDUE-HElD CHURCH - SMITH & WALLERTA'JPA Belleair Road is a primary east/west neighborhood collector road, extending from U.S. Alternate 19 to the west to US. Highway 19 to the east. In the subject neighborhood, most of the land uses along Belcher Road are residential in nature, with commercial development located at major intersections. Keene Road is a north/south arterial road extending from Gulf-to-Bay Boulevard to the north to East Bay Drive to the south, where it continues southward as Starkey Road until its terminus at Park Boulevard. Keene Road has become a more heavily traveled road in recent years, as it links the residential communities of Clearwater and Pinellas Park to the commercial uses along East Bay Drive in Largo. Missouri Avenue is a primary north/south artery in western Pinellas County extending from Dunedin to the north to Ulmerton Road to the south. In the subject neighborhood, Missouri Avenue is heavily developed with commercial uses with a trend of "redevelopment" over the past five years. General Neighborhood Description The neighborhood in the immediate vicinity of the subject is primarily residential and appears to be close to 100% built-out. The residential areas in the neighborhood are estimated to be 65% single family homes. These homes are usually circa 1950s, 1960s, and 1970s of average quality construction, well maintained, range from 1,500 to 3,000 square feet in size, and generally sell for $75,000 to $150,000. The remaining residential development consists of rental apartments, manufactured housing, and mobile homes. A summary of the major apartment complexes in the neighborhood is included in this section of the report. Land uses along the neighborhood's secondary collector roads are typically developed with older and smaller commercial, retail, office and service properties. Typical land uses are small businesses, restaurants, convenience stores, and repair services. The neighborhoods surrounding these thoroughfares primarily contain single family residential subdivisions, and other residential housing. Commercial Development Most commercial development in the area is located along the above mentioned major roadways, especially US. Highway 19, Gulfto Bay Boulevard, and Missouri Avenue. Development along these roadways consists of a variety of shopping centers, smaller strip commercial facilities, offices, banks, restaurants, and service stations. Most of the other roadways discussed above also have a variety of small-scale commercial development at major intersections. The most significant retail development in the subject neighborhood is the Clearwater Mall. This development is located at the southwest quadrant of US. Highway 19 and Gulf-to-Bay Boulevard. Clearwater Mall was developed in 1973, contains over 927,000 square feet and is anchored by Dillard's, Burdines, and Gayfer's. The current occupancy is reported at over 96%. Clearwater Mall draws consumers from all over Pinellas County. As a result, a tremendous amount of retail traffic is brought to the subject neighborhood, especially along US. Highway 19 and Gulf-to-Bay Boulevard. -31- I I I I I I I I I I I I I I I I I I I PARDUE-HElD CHURCH - SMITH & WALLERTA'JPA Medical Facilities Medical facilities located in the general Largo area include the following: . Morton Plant Hospital is the closest major hospital to the subject, located approximately one miles west of the subject on South Fort Harrison, containing a total of 717 licensed beds. . The Clearwater Community Hospital is located approximately one mile east of the subject on the Highland Avenue and contains a total of 133 beds. Additionally, University General Hospital of Seminole, Columbia/Largo Medical Center, and -Suncoast Hospital of Largo are located nearby Largo and contain a combined total of 706 beds. Morton F. Plant hospital has merged with Mease Hospital in Dunedin and Countryside which, combined, offers a total of 1,556 beds. Apartment Development Most of the existing apartment complexes in the City of Clearwater were built in the 1960s, 1970s, and 1980s. There have been only two new apartment developments in the neighborhood since the late 1980s. Most of the new apartment development in the Pinellas County market has been in the Gateway area near Interstate 275 and between Palm Harbor and Oldsmar, a developing residential area in the northeast area of the county. Summary The general community of Clearwater provides an excellent variety of activities and services for facilities such as the subject. Most area banks are within close proximity of the subject. Medical services in Clearwater are provided by two fully accredited acute-care hospitals and numerous medical offices. Medical offices are predominantly located near the hospitals, with a wide variety of specialists available. The subject property has a good location in an area of established residential and commercial development. A good variety of shopping and dining facilities are located in close proximity to the subject properties, most of which are located in several retail centers fronting on Gulf to Bay Boulevard and Missouri Avenue. The subject's proposed improvements are compatible with surrounding uses and are considered to be an appropriate use of the site. -32- I I I I I I I I I I I I I I I I I I I PARDUE-HElD CHURCH - SMITH & WALLER TA~PA TC980032 NEIGHBORHOOD DEMOGRAPHIC ANALYSIS A demographic analysis of the neighborhood was made utilizing information obtained from Claritas, Inc. We analyzed population, income, and housing data in the city of Clearwater. Our analysis includes an analysis ofthe overall population as well as a summary of the data for the segment of the population that is over 55 years of age. The following information summarizes our findings. Population Trends The following chart summariies the population trends for the study area. Population Trends 1980 1990 % Chg 1997 % Chg 2002 % Chg Census Census 80-90 (Est.) 90-97 (proj.) 97-02 Population 90,646 98,784 8.2% 98,881 0.1% 98,419 -0.5% Households 39,838 44,138 9.7% 43,168 -2.2% 42,765 -0.9% Families 25,976 26,667 2.6% 25,737 -3.6% 25,263 -1.9% Housing Units 47,643 53,833 11.5% 53,423 -0.8% 52,915 -1.0% Grp Qrt. Pop 2,260 3,156 28.4% 3,078 -2.5% 3,093 0.5% Household Size 2.22 2.17 -2.3% 2.22 2.3% 2.23 0.4% According to Claritas Inc., the estimated 1997 population for Clearwater is 98,881 residents. This represents a 0.1 % increase since 1990. The projected population for 2002 is 98,419, which is a decrease of 0.5% from 1997 estimates. The decrease in population contrasts the population projection for Pinellas County, which is forecast to increase 0.5% percent from 1997 to 2002. Household growth continues at a similar pace, as the 1997 estimated level of 43,168 households is 2.2% lower than the 1990 census. The decrease in the number of households is also expected to continue. Projections for 2002 call for a decrease of 403 households, or 0.9% below 1997 estimates. Pinellas County's total number of households decreased 0.3% from 1990 to 1997. -33- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTACJPA The following chart summarizes the population trends for ages over 45 years in the City of Clearwater. Population by Age 1990 1997 Estimate 2002 Projection Total Population 98,784 98,881 98,419 45 to 54 9,869 12,216 13,397 Population Age 55 + 35,837 100.0% 36,066 100.0% 36,833 100.00% 55 to 59 4,760 13.3% 4,753 13.2% 5,614 15.20% 60 to 64 5,789 16.2% 5,334 14.8% 5,472 14.90% 65 to 69 6,607 18.4% 6,205 17.2% 5,928 16.1 0% 70 to 74 6,060 16.9% 6,147 17.0% 5,883 16.00% 75 to 79 5,180 14.5% 5,417 15.0% 5,427 14.70% 80 to 84 3,885 10.8% 4,160 11.5% 4,285 11.60% 85 + 3,556 9.9% 4,050 11.2% 4,224 11.50% According to Claritas, 36.5% of the population in Clearwater, or 36,066 people, is over the age of 55. This ratio is up slightly from 36.3% in 1990 but below the projection for 2002 of37.4%. Of the total population over 55 years, 64.0% were in the 60 years to 79 years age bracket. This age group is the most likely to be retired but able to live in an unassisted environment. Income Trends The following chart summarizes the income trends within the study area. Income Trends 1979 1989 % Chg 1997 % Chg 2002 % Chg Census (Census) 79-89 (Est.) 89-97 (Proj.) 97-02 Aggregate($MM) 752 1,665 54.8% 2,161 23.0% 2,620 17.5% Per Capita.... 8,298 16,860 50.8% 21,864 22.9% 26,627 17.9% A vg. Household 18,665 37,013 49.6% 49,050 24.5% 59,203 17.1% Median Hold.. 14,444 26,578 45.7% 32,324 17.8% 36,567 11.6% Avg. Family HH 22,088 46,046 52.0% 60,262 23.6% 71,535 15.8% Med. Family HH 18,015 34,270 47.4% 41,972 18.4% 47,926 12.4% A vg. HH Wealth 155,048 173,168 10.5% Med. HH Wealth 72,079 79,816 9.7% Households in the City of Clearwater had an estimated 1997 median household income of $32,324, which is 17.8% higher than it was in 1990. Median Household Income is projected to increase to $36,567 by the year 2002, or about 11.6% higher than the 1997 estimate. The current median household income for Pinellas County is $33,043 according Claritas. The study area has a median household income approximately 2% less than the median income for Pinellas County. -34- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLER TA~PA The following chart summarizes the distribution of household incomes within the study area. Household Income 1990 Census 1997 Estimate 2002 Projection Total 44,138 43,168 42,765 Less than $5,000 2,261 5.1% 1,432 3.3% 1,049 2.5% $5,000 to $9,999 4,240 9.6% 3,369 7.8% 2,996 7.0% $10,000 to $14,999 4,830 10.9% 3,720 8.6% 3,079 7.2% $15,000 to $19,999 4,799 10.9% 3,937 9.1% 3,488 8.2% $20,000 to $24,999 4,706 10.7% 3,859 8.9% 3,536 8.3% $25,000 to $29,999 3,655 8.3% 3,516 8.1% 3,162 7.4% $30,000 to $34,999 3,646 8.3% 3,199 7.4% 3,129 7.3% $35,000 to $39,999 2,977 6.7% 2,807 6.5% 2,726 6.4% $40,000 to $44,999 2,236 5.1% 2,606 6.0% 2,298 5.4% $45,000 to $49,999 1,972 4.5% 2,199 5.1% 2,232 5.2% $50,000 to $59,999 2,663 6.0% 3,329 7.7% 3,459 8.1% $60,000 to $74,999 2,519 5.7% 3,323 7.7% 3,830 9.0% $75,000 to $99,999 1,788 4.1% 2,862 6.6% 3,489 8.2% $100,000 to $124,999 775 1.8% 1,297 3.0% 2,083 4.9% $125,000 to $149,999 284 0.6% 709 1.6% 867 2.0% $150,000 to $249,999 429 1.0% 563 1.3% 842 2.0% $250,000 to $499,999 225 0.5% 267 0.6% 303 0.7% $500,000 or More 133 0.3% 174 0.4% 197 0.5% According to Claritas, 45.8% of the households in the City of Clearwater had incomes less than $30,000 in 1997, which is down from 55.5% in 1990. The projection for 2002 calls for a continuing trend of increasing incomes with only 40.6% of households earning less than $30,000 per year. Claritas reports that 26.7% of households (11,516 total) earned between $10,000 and $25,000 per year in 1997. This income bracket is expected to be the most relevant to the subject in terms ofthe proposed rents and restricted income levels (60% of area median income). -35- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTA~PA The following chart summarizes the distribution of household incomes for seniors within the City of Clearwater. Senior Household Income 1990 1997 Estimate 2002 Projection Householder Age 55 + 21,818 100.0% 20,427 100.0% 20,587 100.0% Under $5,000 1,102 5.1% 664 3.3% 473 2.3% $5,000-$9,999 2,873 13.2% 2,159 10.6% 1,815 8.8% $10,000-$14,999 2,966 13.6% 2,282 11.2% 1,911 9.3% $15,000-$24,999 4,722 21.6% 3,954 19.4% 3,788 18.4% $25,000-$34,999 3,502 16.1% 3,107 15.2% 3,062 14.9% $35,000-$49,999 2,956 13.5% 3,275 16.0% 3,316 16.1% $50,000-$74,999 2,248 10.3% 2,676 13.1% 3,147 15.3% $75,000-$99,999 815 3.7% 1,162 5.7% 1,457 7.1% $100,000-$149,999 379 1.7% 810 4.0% 1,146 5.6% $150,000-$249,999 149 0.7% 206 1.0% 317 1.5% $250,000-$499,999 76 0.3% 84 0.4% 103 0.5% $500,000 or More 30 0.1% 48 0.2% 52 0.3% Median Income Householder Age 55 to 64 $30,451 Householder Age 65 to 69 $23,883 Householder Age 70 to 74 $23,502 Householder Age 75 to 79 $18,978 Householder Age 80 to 84 $18,023 Householder Age 85 + $18,602 According to Claritas, 44.5% of the senior households (over the age of 55) in the City of Clearwater had incomes less than $25,000 in 1997, which is down from 53.5% in 1990. The projection for 2002 calls for a continuing trend of increasing incomes with only 38.8% of senior households earning less than $25,000 per year. Claritas reports that 30.6% of senior households (6,236 total) earned between $10,000 and $25,000 per year in 1997. As previously stated, this income bracket is expected to be the most relevant to the subject in terms of the proposed rents and restricted income levels (60% of area median income). The median household income for seniors declines significantly with age. The 55 to 64 age bracket had a median household income of $30,451. However, the median income for the 65 to 74 year bracket dropped over $6,500 to less than $24,000. The median income level for households over the age of75 shows another significant decline to the range of$18,000 to $19,000 per year. -36- I I I I I I I I I I I I I I I I I I I Housing Trends ,6:~ PARDUE - HElD CHURCH-SMITH & WALLERTA~PA We also analyzed housing values in the City of Clearwater in relation to how those values relate to overall housing costs. The following table summarizes owner occupied housing values within the study area. Housing Value - Owner Occupied Housing Units Housing Value Total Units Less than $15,000 $15,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $34,999 $35,000 to $39,999 $40,000 to $44,999 $45,000 to $49,999 $50,000 to $59,999 $60,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $399,999 $400,000 to $499,999 $500,000 and over Median Housing Value 1990 Census 18,116 36 29 74 159 252 306 465 658 2,122 3,718 4,370 2,092 1,116 632 503 663 363 323 109 126 $82,088 0.2% 0.2% 0.4% 0.9% 1.4% 1.7% 2.6% 3.6% 11.7% 20.5% 24.1 % 11.5% 6.2% 3.5% 2.8% 3.7% 2.0% 1.8% 0.6% 0.7% 1997 Estimate 17,757 28 22 39 89 149 216 266 373 1,292 2,904 4,242 2,780 1,573 942 600 844 526 456 221 195 $95,630 2002 Projections 17,618 24 18 31 54 102 151 200 263 928 2,287 3,926 2,948 1,922 1,200 790 938 647 600 295 294 0.2% 0.1% 0.2% 0.5% 0.8% 1.2% 1.5% 2.1% 7.3% 16.4% 23.9% 15.7% 8.9% 5.3% 3.4% 4.8% 3.0% 2.6% 1.2% 1.1% $106,996 0.1% 0.1% 0.2% 0.3% 0.6% 0.9% 1.1% 1.5% 5.3% 13.0% 22.3% 16.7% 10.9% 6.8% 4.5% 5.3% 3.7% 3.4% 1.7% 1.7% As indicated above, 64.9% ofthe City's owner occupied housing units have an estimate value of between $60,000 and $150,000. Note that only 13.9% of the owner occupied housing units are valued less than $60,000, which indicates a lack of affordable housing for low-income individuals. For comparative purposes, we estimated the monthly payment for a $60,000 house based on a $55,000 mortgage and a 7.5% interest rate over 30 years. The total payment would be approximately $500 per month including taxes and insurance. Assuming that a large percentage of the homes valued under $60,000 are in need of substantial repairs and/or upgrades, the actual cost of home ownership in this price range could be significantly higher. Many senior citizens live on fixed incomes and cannot afford the routine and unexpected expenses of home ownership. For this reason and the fact that most seniors prefer housing that is perceived to be safe, convenient to shopping, medical facilities, and transportation routes, home ownership may not be a desirable option, especially for low income households. -37- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLER TA~PA As illustrated in the table below, over 67% of senior owner occupied households (65+ years of age) spend less than 20% of their total household income on housing costs and only 12.9% spend more than 35%. This contrasts the overall population (which includes senior households) where only 53% of the owner occupied households spend less than 20% of their total income on housing costs. Monthly Owner Costs as a Percent of 1989 HH Inc. Total Less than 20% 20 - 24% 25 - 29% 30 - 34% 35% or More Not computed Total Units 18,144 100.0% 9,668 53.3% 2,464 13.6% 1,828 10.1% 1,005 5.5% 3,068 16.9% III 0.6% 65 Years + 5,861 100.0% 3,965 67.7% 517 8.8% 319 5.4% 237 4.0% 758 12.9% 65 1.1 % However, for seniors that do not live in owner occupied housing, housing costs consume a much greater portion of their household income. As shown in the table below, nearly 45% of senior households that rent spend more than 35% of their total household income on housing costs and only 17.5% spend less than 20%. In the overall population (which includes senior households) only 34% of renters spend more than 35% of their total income on housing costs. Gross Rent as Percent of 1989 HH Income Total Less than 20% 20 - 24% 25 - 29% 30 - 34% 35% or More Not computed Total Units 16,788 100.0% 4,315 25.7% 2,514 15.0% 1,939 11.5% 1,569 9.3% 5,688 33.9% 763 4.5% 3,785 663 430 423 345 1,689 235 65 Years + 100.0% 17.5% 11.4% 11.2% 9.1% 44.6% 6.2% The data seems to indicate a need for additional quality low income housing for the elderly, who in many instances live on relatively low fix incomes. Note that while senior households comprise over 47% of the total households in the City of Clearwater, they have only 32% of the owner occupied housing units. Income Band Analysis We have estimated the number of households within the study area (the City of Clearwater) which will earn enough income to afford the subject units, but no so much as to exceed the maximum . allowable income under LIHTC project guidelines. The median household income estimated by Claritas for the study area was $32,324. For the purposes of this analysis, we have utilized an estimate of $32,500 for the median income. -38- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLER TA~PA The demographic data for senior household income was reported in increments of $10,000, with 3,107 households in the $25,000 to $35,000 increment. For our analysis we assumed that 75% (2,330) of the households in the $25,000 to $35,000 increment were below the estimated median income of $32,500. Therefore, 11,389 households, or 55.8% of the senior households, fall below the median income for the City of Clearwater. In order to determine the upper and lower bands of income per household that would qualify to live in the subject complex, we utilized a 40% housing expense ratio. This ratio is assumed to be the maximum a household can spend for housing (rent plus utilities). Application of a 40% housing expense ratio to the annualized housing expenditures for the subject property results in the lower limit of the income band. For the one-bedroomlone-bath units at the subject, the net rent will be $427 with a utility allowance of$45, for a total housing expenditure of $472 per month, or $5,664 -annually. Thus, the lower limit is $14,160 ($5,664/40%). The upper limit is based on allowable rent for a household, which would occupy the largest unit at the subject property. Assuming 1.5 persons per bedroom, the upper limit household size is 4.5 persons. Thus, the upper limit is interpolated between the four person maximum household income of $25,200 and the five person maximum household income of$27,216, with the result being $26,208. The demographic data is reported in increments of$5,000 and $10,000. Therefore, we interpolated within the income range of$10,000 to $35,000 per household to establish the total number of senior households within the income band of $14,160 to $26,208 per household. According to 1997 estimates, there are 20,427 total senior households in the study area. There are 4,713 households, or 23% ofthe total, within the established income band. By the year 2001, qualifying incomes are likely to have increased slightly as they typically adjust to the cost ofliving. Total senior households are projected at 20,587 and assuming an income band of$15,000 to $30,000 per household, there will be 5,319 households, or 26%, within the income band. Penetration/Capture Analysis Based on our observations of the Central Florida apartment market and the characteristics of the subject market area, a reasonable percentage of renters to total households within the study area is 30% to 35%. Applied to the 4,713 households within the income band (using 1997 estimates), the potential pool of renters is about 1,414 to 1,650 households. Given that there are not any other low income housing units for the elderly planned for the subject's market area, the demographic analysis reflects a more than adequate demand for a quality project such as the subject. Occupancy rates are high within the Clearwater sub-market with few projects considered to be comparable to the subject. The majority of the apartment complexes and government subsidized housing for the elderly in Clearwater are smaller, older complexes with few amenities and upgrades. The subject is proposed to be a modem complex with a good amenity package. LIHTC projects for the elderly have had good market acceptance and exhibit favorable capture and absorption rates. Typically a capture rate of 15% to 20% is acceptable. As the income band illustrates, there are an abundance of households which qualify for the subject's income criteria. -39- I I I I I I I I I I I I I I I I I I I PARDUE-HElD CHURCH - SMITH & WALLER TA~PA Conclusion Based upon the demographic analysis and existing and proposed apartment inventory, we are ofthe opinion that the Clearwater market area has sufficient households within the income band necessary for low income housing. There is a noticeable lack ofLIHTC projects within the study area. We are aware of only one LIHTC project (Wellington) in the Pinellas County market other than the subject and it is not specifically designed for the elderly. In addition, there are few modem apartment complexes in the Clearwater sub-market which should add to the appeal of the subject project. --40-- I I I I I I I I I I I I I I I I I I I PARDUE-HElD CHURCH - SMITH & WALLER TA~PA TC980032 COMPETITIVE PROJECT ANALYSIS The subject sub-market area has several apartment projects that cater to residents over 55 years of age. We have summarized those projects that, in our opinion, offer the most direct competition for the subject's proposed improvements. We have paid particular interest to unit mix, project amenities, unit amenities, and occupancy rates. First, we have analyzed four market rate projects followed by four government subsidized complexes -in the Clearwater area. The subject will be the first Low Income Housing Tax Credit (LlliTC) property for the elderly in Pinellas County. -41- ~~~~~~;1y) ~~~~ ~~r--T~I-~~~.I..~ {C I I I I I I I I I I I 'I I I I I I I I I I I 1 /. Comparable Market Rental Map .L' :::::1::::' ..-'J II II I::>, Fi.t~ =u IIllL --- f I (kl r -:s=.... i ~k--:;V"bTI~ '~:m ~ i\r::'~~ '\Ii, -I- :;;I,~I~-~ r-~~~ '"p:. .tur-J ~ ~ ~~tt.J ~tfIl:~ - '~ II\\....' r~'t )YJ rb:'8flJ == I :;:<: jD / ~J "v 1'--' /' "{-rt}. '~ of -,"\:: IT'- =-,. :-'y hit. r--I.Y crp:.i< t '::7"" if- -:I:::-.!E ~ ~ II . ~ ---<t;:, ;~. 1 \t--j ~ 1-' ,\.. +l . 7T.. ) ~ I h > ~ In~ aJ ~ II] ...;.., -', C, I. L:qll h-'.. J~ ~ 590 II ' .... [) ~I ~#,,6d~ ~r ,;:~ ~ flee. "~1l1tf.F...!I~.!. ~ rw.....Aa......... " ~I~\l[}~ .,r.::..')f11f~ .1 _ tt111 ~:~i~ 1,lalr~ tnJl"J:'~::l..-.-~...'j... .J.1 ~ I -~~-" ~~ - ckton T1~d-~~'\..."-"" L?,~;-g- ,cp :~ r' ~<' '.1 F~I .. r-r ~ ~lttn - ~.~~ ~'-< ;/ ~, .59;;; I I" lrill ~- -; ~~~. ~J ^ ~ ~11 ~[ 6' =~F1 t: ~~ ~ Subject l~l1E . ~ II ~ LmS 7-4 :F "'""l.1 ~ :\, _ "Tl \ 1sEI ~In - rn- 60 ;- 'J) ;z;=~Jgj~= I Y ,"n:::::flT6:: ~o ~ J. ~: l; -..,;t ;::: \' -0 Comparable Market Rental 3 ...... I .~'.,.;.Jt III I-~ '~~~L m L .......~ .,~~. q: ~J=;::J ~ _~iI( d.... '. ~ H ~ . ~ ~ I u,g leI 'T1~ I'll ~ ,- ~ f ,- ~~ Q .J',...... H=\,I L- II.. 1-' I '::J';, ..... ';.:- ... \\,. ==:J .... ,J ~I \ I I ~1'~ ~,t::=;J 1=1 In ~-t"d~S t: t3 : n~~ ~ "" ~1\1 lj( ~~ IlU .J,' dk.~'~ "r- !J6 III ~Illf [f~IT~mpara~~arketR:~~4~1 ~ 1 l~ [) .................... ~.. ~~) II~ ...~~-< ~U _u ~ ~+t ~ ~t\ ,ltFl~.(' ~ 1~.. ~ ~-h . =Urc;JIII] , A J=;11 (~ ~ :::f~rl ~ ~ 19J Ie. II I IffD -, -~ _: ~ = -I ., .. ,.,1 r--':'" 19A L-::::J rL ff I' ~ I,~:::l ".......; Bi ~~ ~ #'1! ttrr 686 I! I.lJ LO ~ ~ IJ "d IV I~) ~ r~ "c:pTI~rable ~:~t'%~~~ ;";,;i"C~~~ble Mark::~~ntai1I'llC . ~I =~~ \~ ~I_ TIR ! ~....~~~'~ffi mt~~J~..kli'-:1,~R1H.~ ~G1 ~'.. ~_E H1~ ~/~_S I.J =-~r-u '.\-;-t....1ll ~j .~ m ~'~4- I i/~ -0' I n;:::::j:r. 1C. I ttrFlTT=~ - ~ ^~" .... loT; ITI ~ ~1E3 11111111111 In I ~ i U ~ E3 m ...... ~ iK-I 1~I~n~~ ' ..... ~ ] J \ ~ -11~ ,....,',,/ S I ~. F .,.... ~IlJN '-},,,~ I., - tUFWn :-\ i 1=1- . ,1.-:l ..~~ II \\" [ fT~ b.__~ ~ ~s' Fl .~ ~::!T 1 It.L,..JJ.1Jf -:::JYl ~\ .JL.:: C ,n, 693 ~ I ~w H-=~v e-=' . -g' =d~L.....-nJ ~j = P I =- F '= ~ ~ II~L rr- ~ ~ ~ ~ u If+n j"~' '.~'f',~ II~,-,poll->/UW~ ~ ,11- I:l\/l [. L 688' -/ . - 71 \ a l=:;2r:,'i '1 ~ k- . ~4( L ~ E ~ r\~/' \ _ .,IJt !::. I l@ lillj ~.........'. ~..~:':lJn~ L '. tJm{el ~~ lei ~a-ti0T::p--inel ~t:,,- ,- 1~7. II, ~ tl =,19~ ~ _ .~~ --:: I '19~~ .~ ~ . /,ID- A"':~/ T =f- ;-~~ _ j~\ ~~. ~ _rd~I,'l' I~ It..l~~.tf-;:L / . ,l I ~ / a:sn::!:== -~..::', . - '. I 6::t - r- I...LJ T=i1 '- f::IT! I '---, J..:r ~ I ...~ 1-1 ". -'- ,-~' )'6 o.eLor;;rsl~e~ ~Ias US-f\ ~ \j:>''' f:;'I,l rr;x,--...,. !^-"- ~ /... dJ~ -:=:;::: J_,' ~l ~l i ~ ~ .:;; '" 0> (0 EL\RDUE ') HElD CHURCH e Sl\IllTH & WIL\LLER l;~~PA TC980032 COlYfPARABLE kfARKET RE/\fTALNO..l Imperial Palms Location: 101 Imperial Palms Drive, Largo, Pinellas County, Florida. Year Built: 1969 t"J>roject infGnnz.tiou Building Type: i~ent~i:-b?e !:~,re;,~_: Two-story concrete block apartl1lent Ijuijdings 'Nilh a stucco finish ,~nd f1at roofs 6W,700 square feet 1-1,1 ~~~ m b tt" .~J rt it~;: h:3;s /~.'?er2-.f~~f; -'~J;~1.~t ~)i?~:~"- ~}4G square fet~t ~:'_; 1 Ci tu :1;20 in<~r(:8_St~' ~:.~ !(U\J-;_(~:(i i , ,'l 1,'-' (.j';)e jUH I I I I I I I I I I I I I I I I I I I TC980032 Project Amenities: Unit Features: ,~i;)..;";,:,,, PARDUE · HElD CHURCH · SMITH & WALLERTA~PA >c,:C~';:~" '" ", ~ COMPARABLE MARKET RENTAL NO.1 (Cont'd) T~<>..!~~~,Jag!iti.e.s :-'-:.:~<.... .:~Z'.I'~o.#He.~1:!'s'~~lL<?E~~,"t;Si'~~.:ili.~12 Two pools (one heated) Shuffleboard courts W a11..:to-wa1lcarpeting......Ceiling'fa.~sins()meUffits~:>>....... Drapeslblinds in some units Screened porches Fi!JI)f.eqUipped)citchen..: _.~ ~..~. , -:~asi~~a~l~:te~~r.i~~~::'. ~.' ,'_:~" ". Central heat and air-conditioning Microwave in some units Unit Mix and Rent Schedule: Monthly Premiums: Downstairs units: Comments: UnifTypi!'';''; .. No. of' ..;.~.. -:'Size~' .;.; Mo~tlJlY:':.;.t':j~a.s,e!~~~!I1IY:~i!~~i: UnitS,' (SF) . ;;Base'Rfmt.:Y' 'L;~{.{PSF;!':: .......;' 96 750 $490 $0.65 lBR/IBA IBRll!3,~.'." IBR/lBA IBR/}BA,' " 2BR/IBA 64 950 2~.W!~P];I::I~~Z:,':;'c.,,;';?~r;:;;;;E2!E9~f>'E=~:'.=:'L.'~.e:~Ql~,L:.22iilL1:}1,j~!i.~1]t~:f"'~":, 2BR/2BA 100 1,060 $610 $0.58 ToiaISlAvg~~;-;!'\P';F'~' '>"'.. ~'6387)'J:;:tf;(!i>A8i~ftt.;~. 150 750 $20 to $30 Imperial Palms is located on Keene Road, between Belleair and East Bay Drive in Largo. Imperial Palms is designated as an adult community in which residents must be 55 or older. A seven-seat tram shuttles residents around the property and to local shopping centers, as well as the local bus service, which passes directly through the property. The property also offers a housekeeping and a meal plan for residents and is next to the Palms of Largo ACLF and several medical facilities. -44- P/\!<DUE;s' Hei ,-, I " 'R!"I '-"",-,-' , C>IU ''-Jrl ~'0iVli! t-l \) WAL' '"T; OF (5{. Lel\ 'jAivfP;" '1'C980032 COMPA.RABLE il1ARKETRENTAL NO.. 2 .'...... '). .,~~j~~i' SHver Palms Apartm.ents ~~.:: ~_.:.. -~.." Location: 221 Lake Avenue NE, Largo, Pinelias County, Florida Two.story wood rrame <:partrncm: buiidings\vith (l si,.'~c 'ind shingle roct;c: 78,540 square feet em: Built: jnl r roject fl'1forn"1~'~jGl.l [)uild~Dg ;r~:.rpe: ~ f=. "!_ 1"-Jrr:h,'::;,- f Ci ': t;~;: ~; '1 ,I"" -I"~ ., . _, : (~~ 1 ) ',) I', I I I I I I I I I I I I I I I I I I I b';, pARDUE- HElD CHURCH-SMITH & WALLER TA<JPA ;:O"-X'F""" ,~ TC980032 COMPARABLE MARKET RENTAL NO.2 (Cont'd) Project Amenities: ~~~~p,g~!-,,-...,__~,-_-,,..~_._L_i2i.-.~e.~ex:te4._l?1!!2~,~:~,:=i,:'J.i{i::.'L~~i. Laundry facilities Near Largo Recreation Center Unit Features: Ejilly_~Uippedlcitchen:-..'.". .......... ........,-.i .WindQ"Wi,iti-eatriJ.ents -,:.;,;;")'\ 4,>;:">>.0~""'-~,~ _:~44J ,-" ~~'_U'_."_''''''''__--'''~-'''_A_.''''____~_,',~_~~,,';;~A:..',...,-,,->~~.~~*;~~.-....;, Washer/dryer connections (some units) Screened porch/patios Unit Mix and Rent Schedule: ;fi"~"::" No.of Siie " Base Mont~~_..clI~Se~Ol!thly' "-]:<.{JnitType -', .c. Units "(SF) , Rent.,,,,. .-' '-:"RentPSE.' 1BR/1BA standard 24 780 $520 $0.67 t~J:qJ~.&;1feJ~e~~::. ;:~'I:r';_-..-'~7Q".';,:.~,$53.5:~;;:;,;i'.'~.2.'$O;6j~;;] 2BR/2BA 20 1,200 $630 $0.53 mID1IsBA' . 18>1,416Y$68S'S6l49T;-;? Totals/Avg 74 1,061 $592 $0.56 Monthly Premiums: Downstairs: $5 to $10 Comments: This property is located just north of East Bay Drive, and is owned and operated by the Sage company. Although its unit mix includes some families, many of its residents are senior citizens and eventually move to the subject property when they are eligible. This property has a lower effective age than the Imperial Palms, but was in overall similar condition. -46- 'T'C:9S0032 PAr~l)UE ~ HElD CHURCH ~ SIVllTI,,,j & 'WALl Er\ OF ' L 1< iMJlPA (""0' liLlI' :JARAB' LE M4 n f/E' ^P Tl>E' iV'!!"' ,4:' I' rq :2 "-, JY", /.1. '. .I .LU~ 1 ,it'... _'1 , 1/1J.L, 1. f {.;'" .j !i"ocation: (~ar J3ijill:; ~)rojec:t Y.~HiKd.i~lg _ : _;~. (:t. ~<~, ~ , C' :1': 1< Imperial Gardens 2100 Nursery Road, Cleanvater. Pinellas CourJy, Florida. 1968 T.,va-story concrete blOCk ap,Tlmenl :}uii(jjngs \rVit11'i painted Lrick stucco fj,1d, ;'nu iLl ~~02,920 sqllare feet "~;~O ;;'",(-, ~CJ,-;:l; e -:',i,',,-' \. <, :~ / '-0_' I I I I I I I I I I I I I I I I I I I TC980032 Project Amenities: Unit Features: ;'\~i,~<:, PARDUE-HElD CHURCH-SMITH & WALLERTA~PA COMPARABLE MARKET RENTAL NO.3 (Cont'd) g!~~l:J:2~se:::~J~...~~..~:'" .....~;~.~...:.. .,,~I~,~g;E92\':l2."(.,~l~~i;':.~~ Laundry facilities ~HYyj~g~~Ilpe<t!9~chen~2..j~;jj'~,:'s;,;'::I~gfan~ '. .~ Vertical and mini blinds Screened balcony/patio Assigned parking ...... Unit Mix and Rent Schedule: Monthly Premiums: Downstairs units: Pool/creek views: Dishwasher: Comments: 1BR/1BA ~2}3~~~t~~~~.. 2BR/2BA, Deluxe 'f6tijjAvg:''''>'"~''''''' . No. of . Units 156 ..~_~=].6 48 240 .' fSize." \ MonRthelnYtBase ,:" ,,~ 750 $460 $590 $0.55 $5()(f~-:" ~'""~;":'~>: ': ,'it; l:::_~':'$O':S'9 ',:.::~:~;i;~:?~:-;:':'.' $20 $20 $10 Imperial Gardens is an average-quality 1960's apartment complex located approximately two miles south of Gulf To Bay Boulevard. Dishwashers are included in the units for a $10 premium. The property has been well-maintained, with all roofs and building exteriors recently replaced and painted. Approximately 40% of the residents are senior citizens. Imperial Gardens has been over 98% occupied for the last 3 to 4 years. -48- , i"'" I I I i"'" F'\ r:'i {~? ["') i J i:;j !,.I C, I'; I '1.l .. ...... .. L. I !t_ (';HURCH ~ SI\J1llH &, Vvt\LLI~I~ T,c\~ir,;!, i;"~ 'T'(_'~~j ::~~ 003:2 ~ COlvlPARABLELl1ARKET RENTAL ]V(). ~/ ".. , , ~{, :.i:lill i. .,,,., 1 , ~~r~r- '&...,.,.....'.".',.......",. ' ,.' r " ;1' ~ .---.:-n_. #'.... 1 , :';':~~":' .>',-. 11 I\lfidwa,i' Court 1 LocntWRl : 1060 J aspe~' Slreel, Clear;;\; ater, Pinellas COllEty. i;lorjd~. 1 ~~.." ',.'" J97:2 1 :.;:;:~~ ~~at~~'~ ~? '.':=' ",', 'or -'f"v'O...stl,J"ry ~~.{-}j1C re [~_-~ h 1 cC.k '.LP ~:rr!Yl C:~_lt lj Lli i :}ncI bni.J~--u}-~- rC)c..f~: -to "}6r: :-:qu~~r~~ ') ;',; "Jl~.!_~,~;-~ '1 'l Y<;~-:1: . , ) f'.'. l J II I I I I I I I I I I I I I I I I I I I TC980032 Project Amenities: Unit Features: :%-~:^'.'~'",.: . PARDUE - HElD CHURCH-SMITH & WALLER TA'JPA ,..',' "';"-:"-,'.' COMPARABLE MARKET RENTAL NO.4 (Cont'd) I Swimming pool Barbecue area I Fully equipped kitchen Reserved parking Unit Mix and Rent Schedule: Monthly Premiums: Corner Unit: Comments: $10 Base..Monthly...i.....BaseJ.\fC)rith~y..- .Rent < ,'.'RtmtPSFx;" $445 $0.60 $458 $0.60 This property is an average-quality, 1970s apartment complex that has below average visibility on the north side of Jasper Street, west of Missouri Avenue. According to the manager, this property accepts Section 8 tenants. There is also an associated 59 bed ALF nearby called Midway Manor. -50- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERr'zPA The following chart summarizes the market rate projects. Comparable Rentals - Market Rental Projects Rental Project Year Built Average Unit Occupancy Average Size (SF) Rent/SF I Imperial Palms 1969 829 93% $0.64 2 Silver Palms 1981 1,061 98% $0.56 3 Imperial Gardens 1968 846 100% $0.59 4 Midway Manor 1972 769 100% $0.60 )be comparable market rent apartments range in average unit size from 769 square feet to 1,061 square feet, with three of the comparables ranging from 769 square feet to 846 square feet. The average base rent per square foot had a relatively tight range of $0.56 per square foot to $0.64 per square foot. The comparables were well maintained, ranged from 17 to 30 years old, and had limited amenities. Imperial Palms and Midway Manor were the only properties with minimum age restrictions but Silver Palms and Imperial Gardens have a high percentage of residents over 55. Imperial Palms recently began offering housekeeping and a meal plan for an addition monthly fee. Overall, the properties had high occupancies and have experienced a relatively low amount of turnover in recent years. Rental increases ranged from $10 to $20 per month in 1997 with similar increases planned for 1998. Three of the comparables charged premiums for first floor units as those are more popular with elderly residents. None of the comparables had elevators or special provisions for the handicapped. -51- _n~~JY.--:_~~ c:F=? \ ' ~ I i Comparable Subsidized Rentals Map In c:.,_~1 n i:r 1" r8 ~~t-f, ~I;JJ.{ lA.q, -11 . ,Clrl ~ . ~~ 1..JJ - idtr3 TTI Jl'--~~) I ! ._ _ 'u --, , - L I t It~ ~~ Z"1J]jl; /~ I -;;; T I ~ "- i ~ a !rl '<1' ~ /r'a }I i .~ ~ \/) Its.~ i ~'lte . :>l\fl'2l !tllPnc;~ ~ j ." ~'\~ I~ ~ ~~ (.J~--- 'J11 .. ~ ,.. n 1J;i -n ><tU ~ " r j) .~ 1 ~ ~I~~~e I;. wr ~~~ - ~1fh. - !i ... 588 ~ ."V-iE ~~ r.=-_ ~ r'--<' ~ ~ ~ fJ.J m ~ .' ~' ~"IE!:pE ~ r -'''' :.Po ~Js{ '.. h rim,... ~ ~'_ 1:_~ ;J -, ~~ I ~ .... fLl 1- . _'I = I D'':'J!!I .-XV ... ~'.' '. -.} ~ I 11~,O 'I yu. ~ L ., F!il~ ' I.:t'tt: "....1- H'l=:Z:: ~_ ffl=:;= ~lIr I ;:, 1/ . . I I.,t: ~: "' '~ ~,~ L m ~' : 1I~590 ........ ~~~-. ,w~ ~~r-~*~f' -~ ~ ~ ~ t----~ , . . --rw."~ L"i ~ ''f--:::i ~~J~ OJ' ::: ._ : ~ ~11E=1~ ~ n .U1:'" ",.~ ' Comparable Subsidized Rental 4 LEi q ....,.. ~ E=:. .'. I (...... <r:1= ....,.\I\l\V W=" r ...riY. UI-JUfI 1- T 'I':J.... n CTI,.. !r -' ~ -=:11' 'I ,~- ] . __~I,. I campara. ble Subsidized Re .~ !fIce Lu' ill ! 590 .:),~ . om",,,, ,~u";d";d Ronlal2 ~A S~ I~' ~-.- ",., . . ~R111 , =3 E; dl!"" Ir'+=t:;. t Subj:ct IfTj~ ~ Fr:Im'l" a eo '/f+-I<:l;>Tj:;"AJT ',' am Ie # Comparable Subsidized Rentall e;; ~JJ ~ I I I I I I I I I I I I I I I I I I I .H . n .~ae .Ca rk P.: t .e ea ell~1I\!! J C'1 D'i J , '<If I .r ~li~L ~~ . . =->-'~::..::n ,?J_1 ':: mW 1,u..1 ~' ," .. - .' ~.\ ,,I r~ [_,:c Yf · I 18~ /-1. ..., " , 18A" : I!J!j .. ~~ II "Hi," I~ \ r'L~.' ~ I . ~ ]I'~' '\ ~ . . L,. 1\f \\,; 'J .. ".... , .'I \.~~ ~us ~M~m;'~~. t~/- ~'-, . Jl1dll L~"I, . ...,. I '-J ~ ; ';{, r- J \ I:<jl\l Bi 4 J~- 1"1~ ~ ~)r,~. .1\ I n. 4b S9~ ~_ !:/ 688~ ~,' ~. . _ '.lI~r'~:~ ,_' ~~ + I$=~' d\I~~~U~H~"P '>-..~ 688 : ~~~( ... !~/W@= ~ f -Y-..iN . ILW rt ~ i .1 . ~t.o. he ~ . '~ ~ " ' ~~. w,;~. ',. . ,',;I ti01 :Pi~ ~~f1~_ Lfr ~ . I Mdln- II ~. ,Ia ~~Ch 1 \ iU~/ ',./-k~~L :1 _~ I If' ~~?:m >II" ~!'e\,! ~".: . . l</'<J"l~JI.I:)f1/ _~ ~~. '.~ ...' ~~ f"" ~ II .~/---=~~ F- jl'~ I-~' " ~' '.694 III i hl""llrt/ rn~ (,~/ ~Ba~ ., ~:g h ~ ,~:rJfuS'~ iI'M~ ~Dm: aR~!P ~.J:/_ '''.:'P -"bW:lIl!-j'" .'~ /.It',~~ e'ai 6119 I ra " ~o C '_~''''','''JIlI_,,,,,..~,.~....~,-,,,,,,,;....,..,~....''''''(:..~~,,^,>!!;>II''''''''''''''''''''''7i. P ~ ~,. UC' H' "-'f') /-\1'<1.) c.:;~ i C ! ~ (':HURCH ~ SMITH & VvAL.L.Er~ TA~PA 'TC:980C:!:2 rT7;O(~lDIZED COMP A D 'BI .~ RE7\,'1~' -, 71 r['. S .'...J ll0 ,_ f:u\...4 --1":', hi ~,/U... 1 ,t/t.). .f I '-~'" ~,:j>~""""", t , ,~ :k I~ Barbee To'wen; JLifJCution: 1100 Druid Road, CleanvaTcr, Pinellas County, Florid,;, ~/fa;: B:;dJt 1972 ~: }.'njc[t ;~11 l}lf~tior\ kTf.~.}Cr ~JnlrS~ 'i 2--story JlJ;J~)()rJ'Y apartrncnt 'buildings i'Jot '.l'i",labk lSC ~" ()t (1 \.'{Jj] a 1:, C:li')'.r;:.-:,{();' rJu i,I(!~E g 'T'-vue: tr:.!.),le ~-'~I'e~1: -' ~. ~. -- ~ :: ~_i ~.~:! .,' 'J~' - :' ,C;': '.; {',<: :.i-, ;-~ "," '~(Y~l;; ;1),', r' .' ,J." " .:',1;....' I I I I I I I, I I I I I I I I I I I I TC980032 Unit Features: Unit Mix: Comments: PARDUE-HElD CHURCH - SMITH & WALLERTA~PA SUBSIDIZED COMPARABLE RENTAL NO.1 (Cont'd) f~1!y.].ql1il!~g kj.~~~;c '.i.~~~~!!~P~~g..";';:i1E'):\..~I~.~~:~...~t'::);i~,~ Smoke detectors Individual temperature control '~Iri- ~t~""'''',- ~;"''''''''~.h''r:~'-~~''-t- ~': '~.'I!,~7"''"''~-:~--~-:,:_-_;:;--'~-;<T~~!F:;:~~~::_T':_~::):.'-~i;-;:r::-~::~:x~~~>: :>:- :"7?r5;':,0,{;\::/:':.:; . . .ercom:p one .sys em.. ..'<" ...... . ..... ......:..y>...,....,......\.;..:,.,.. . ....,,>:...'.i IBR/IBA Barbee Towers is a 12-story high-rise apartment building managed by the Clearwater Housing Authority. The monthly rent is based on 30% of income and includes utilities. -54- PARDUE;ll HE!D CHURCH" SMITH & WALLER TA~fpA TC980032 COMPARABLE SUBSIDIZED RENTAL NO.2 Ralph Richards To'ver IA}(~atio:u ; 211 Prospect Avenue, Clearwater, Pinellas County, Florida 't(e:Tf Built: 1 ~)~'j5 Proj~.~d lr"fonm!tinn BuHding Type: i~t;~nf~'ibie i\re~"7,: Seven-story m,:;sonry apartment buildings \'n:h i':.1cv(~toJ: l,;ot avai lah Ie nmb':T ,li'Unh:~' 50 rJ~-" ~'( ;S~z::, ~~~ ~ a 'J~r:l ;'1 " PARDUE ,h HEl D CHURCH ~ SrvllTH & WALLER TA?JPA TC980032 SUBSIDIZED COMPARABLE lU!,7.fTAL NO. .3 The Hampton Location: 1099 McMullen Booth Road, Clearwater, Pinellas County, Florida, Y car Built: J987 ~.)'rG.icet infonm:dion B!!JiHding Type~ t3bk; Are~,: t\fnr{i,ber iUniL;. /';" 8--story n1c!sonry apartment buildings with :~!e'lator NrJl. AvailaUe ~":75 1"TCL \'(;) !;-i T{")Oi_./~J ,\\,;111 ~I~/(!~~til)~~, list $"1. 'S diirinL~ !~:~.:f [.-:! ~-nonihs :--;'.1-18 I I I I I I I I I I I I I I I I I I I TC980032 Project Amenities: Unit Features: Unit Mix: Comments: PARDUE · HElD CHURCH · SMITH & WALLER T~PA SUBSIDIZED COMPARABLE RENTAL NO.2 (Cont'd) I Next to Robert H. Levison Center Community rooms F~y_equipp~~~~t~~~ _ ..~es~!y'~p~~g_L';j)i:,ij;lS.,4:,12' Smoke detectors Individual control hii~iCbmpIionesYStem " '-'",'. o.:.,'.~_::>"-':,"i ~'~" ~./t ;?"\~;';;":!:f"--.',~ . Unit Type. . lBR/IBA 2BR/lBA Totals/Ave. c, -No. of. Units . 48 2 50 Ralph Richards Tower is a seven-story high-rise apartment building managed by the Clearwater Housing Authority. The monthly rent is based on 30% of income and includes all utilities except electricity. -56- I I' I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLER TA~PA TC980032 SUBSIDIZED COMPARABLE RENTAL NO.3 (Cont'd) Project Amenities: FuUy,etiujp'" .'pedkitchen ReseI"V~parkit1g",,"'.."..",.T'!.{.:;'~i;'it?}'.\lg;',;!;,!......;;,.;'i;;,,'.,..,,}~; -~"""'*"','~.-.____,.__..:.,.:!l::..;l_~,,..~<.-' ': _,:.",<-;... ....n'-.-'. ~_ ,.....'___-.. __-';'_',_, _,-,.. ,'._ .~_<O'" __.."_,,,.~""_;~, "'" -_,____,_;~...., -__"%r._:'" '-~;--='"""',:,,,<~ ,., .."".",,;,~ ..,:, ,~^., '--' Smoke detectors Individual control >'Iij1er~i]LphonesYSteIn ,....- Unit Features: l~11LI!!Y~~~~===-2'];JZ;ili~~\'~~1;:S:~j~i~~, :g,2.9!L}'X";:'> ; Cleaning services Commtihi1:&\rOOI:Ils ,< :.:....:, ',._.._ ,,',',_ _. "-:_,;__""+".:',}"::""~_,,,,_,,,,__._,,:.-,,,,,.,__,__;_,','_,~;_~-'-l:<""-"..:" Hair salon Restaurant Unit Mix and Rent Schedule: :,':'!";:. .~\:;r>No.of . '..,? ......?';~.~~..Monthly' ,~itiE;;V~t:!yp.LL ",~JJ~ts,:~~~e.(SID;~j@;.j:;;'k';B~n.t2,_ ...... 1BR/IBA N/A 850 $860 2BR72BA;~"" '-, 'NI A "'iI':zI9:.i ,'F' ';.$1,060 > BaseMonthl~} Re~t~S!"l>.':' $1.01 '>""'--$0;87, Monthly Premiums: Carports East View Additional Storage $50 $25-$35 $10 Comments: The Hampton is a eight-story high-rise apartment building managed by the Clearwater Housing Authority. The facility is designed specifically for residents that are 55 years and older. Twenty percent of the units have been set aside for low income residents at 50% to 65% of the area median income and currently rent for $355 and $435 per month, respectively. The remainder of the units are market rent for tenants, 55 years or older. Meal plans are available ranging from $60 to 315 per month. Weekly housing is available for $140 per month and linen service is $25 to $50 per month. There is also a 25 person bus that provides scheduled transportation to area shopping centers at no additional cost. -58- P'/\ '')''''..1 iE' . ' Ir'I"""" ni', LAJ : !,lh 1:: I U CHUF<CH @Stv1!TH 8 q!t\LLE-r Ot: ( 'Iv iL.. i~ TAMPA 'IC980032 n '-'8' C7HZED ('0 ~fip' AR .IE -E D C''\Tnn ; ~ -.., -'1 f c) U vlL", . cJu, /1 h L J Ju:.,j d./iL lVf..... L ---~ -- ~-----,.-_.--_.----~-_._---c.___ Clearbay Terrace Location: 1770 NOlih Betty Lane, Clearwater. Pincilas County, Florida {;~j}r ,B\l~lt: 1983 cc:~ i~lfGrI;~ldii;~fl -~,.';-'; .~; ,j)~ /j' ~ i~ ~~~i1).~C(;-..;tOl~y' COl1crcte bl()ck ::.i.pal'Ll]1(~i-)L 'ldilig 9\lltl1 ~"]. sti,tCCO 2Lld shil1.g1e rOufs 6()e :;q ~.i8.rr: feeL E~ k~ ii(iil~r~ r'::lyr:.e ~ ~-~.: '. J Z"_ i ::: ,~ i .! J i,'_,tF:=: i:(~C:: "1,_,; ~ ~ ;--r ;J ,.,..,,. ~~: , ,", - "I ~ ;.;. 1::":::. LJ :~. i I I I I I I I I I I I I I I I I I I I TC980032 Project Amenities: Unit Features: ?~"~:"',:';;; PARDUE · HElD CHURCH · SMITH & WALLER TA~PA ;"'-";.~:"":'?'~ SUBSIDIZED COMPARABLE RENTAL NO.4 (Cont'd) <~R~eb~arct!..;, Patio ':-'--'."'J:-~~<"':'~"''''-;'- '-,':,_ ..:'''{:'........, CoIIllIllJ1Utyj"oom . Elevator ~~!!.~~pp!i!l!lE~.i~~_4i~l!)y~Em:~1=l:Ly~@!:!!YAQ";2....uI~,. ....,:".. Blinds Screened patiolbalcony Unit Mix and Rent Schedule: Comments: ,,",,'.: Clearbay Terrace is a three-story garden apartment building administered by the Pinellas County Housing Authority. The monthly rent is based on 30% of income and includes all utilities. The property has 10 units that are designed for the handicapped, of which five are specifically designed for wheelchair tenants. The on-site manager indicated that there was great demand for the wheelchair units because of a lack of this type of unit county-wide. -60- I I I I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLERTA~PA The following chart summarizes the government subsidized projects. Comparable Rentals - Market Rental Projects Rental Project Year Built No. Units Occupancy 1 Barbee Towers 1972 150 100% 2 Ralph Richards Tower 1985 50 96% 3 The Hampton 275 100% 4 Clearbay Terrace 1983 101 100% As indicated, the comparables are at or near 100% occupied. Two units were available at Ralph Richards Tower but are projected to be occupied within days. Of the four comparables, the Hampton is considered to be the most desirable. It is located in a good neighborhood in northeast Clearwater and offers an above average amenity and services package. Ralph Richards Towers and Clearbay Terrace are two average quality facilities that were built in the 1980s but have below average amenities. Barbee Towers was built in 1972 and has a "dated" institutional appearance with few amenities. Conclusions Based upon an examination of the apartment market and the competitive characteristics of the Pinellas County area and the Clearwater sub-market, together with the location and site characteristics of the subject property, we believe that there is significant demand for the proposed affordable housing apartment project at the subject site. This conclusion is supported by several factors including the following: . Favorable locational and access features of the site relative to shopping and services. . A strong overall apartment market that is expected to maintain high occupancies and steadily increasing rental rates for the foreseeable future. . Limited potential for new development due to the fact that the county is limited to 8 to 10 premium multi-family sites beyond those under development or undergoing due diligence. . A gradual increase in the population over 55 years with an increase in low to moderate income seniors expected. . An overall shortage of rental apartments specifically designed for the elderly, especially properties with modem unit features and a full amenity package. -61- I I I' I I I I I I I I I I I I I I I I PARDUE · HElD CHURCH · SMITH & WALLER TA~PA These factors indicate a positive market environment for the proposed affordable housing apartment project at the subject site. The affordable apartments planned for this site should help to satisfy demand for rental apartments for the low income elderly residents in the Clearwater and central Pinellas County area. The findings of this analysis indicate a relatively large demand exists within this sub-market for rental apartments for low income senior citizens. Given this need, the proposed development should receive immediate market acceptance resulting in a relatively short lease-up period and a sustained high level of occupancy. -62- I I I I I I I I I I I I I I I I I I I QUALIFICATIONS OF ROBERT VON Business Address Pardue, Heid, Church, Smith & Waller, Inc. 1403 West Colonial Drive Orlando, Florida 32804 Telephone: (407) 841-3602, Extension 225 Education Bachelor of Science in Business Administration Real Estate Finance Major, California State University, Northridge Achieved 4.0 in all Real Estate Courses Appraisal Institute Courses Real Estate Appraisal Principles Basic Valuation Procedures Standards of Professional Practice, Parts A & B Capitalization Theory and Techniques, Part A Capitalization Theory and Techniques, Part B Highest and Best Use and Market Analysis Appraising Troubled Properties Advanced Applications Professional Affiliations and Licenses Orlando Chamber of Commerce - Member Downtown Orlando Partnership - Member State Certified General Appraiser RZ # 0001604 Experience Current Commercial Manager with Pardue, Heid, Church, Smith & Waller, Inc. 1993-1994 Review Appraiser with Barnett Banks, Inc. Responsible for reviewing reports for Special Assets, and Corporate and Commercial Real Estate Departments. Performed all appraisal reviews for the CFCRC, a consortium of 12 lending institutions. 1986-1993 Senior Review Appraiser with HomeFed Bank, FSB. Responsible for ordering and reviewing full narrative reports for entire East Coast portfolio. Assignments completed in 14 states and the District of Columbia. I I I I I I I I I I I I I I I I I I I QUALIFICATIONS OF ROBERT VON (Cont'd) Property types appraised include: Single-Family Residences Commercial Buildings and Sites Mobile Home Parks Subdivisions Shopping Centers Motels and Motel Sites Hotel and Hotel Sites Apartment Complexes Mixed-Use PUDs Marinas Golf Courses Industrial Buildings and Sites Condominium Projects and Sites Raw Land Amusement Park ACLFs I I' I I I I I I I I I I I I I I I I I QUALIFICATIONS OF MICHAEL E. AHW ASH Business Address Pardue, Heid, Church, Smith & Waller of Tampa 4915 West Cypress Street, Suite 200 Tampa, Florida 33607 Telephone: (813) 287-1020 Fax: (813) 281-0681 Education University of Tampa, Master of Business Administration - Candidate West Virginia University, B.S. Landscape Architecture Real" Estate Appraisal Courses: Course 550 Advanced Applications Course 520 Highest and Best Use and Market Analysis Course 410 Standards of Professional Practice, Part A Course 420 Standards of Professional Practice, Part B RP 202 Real Property Valuation Methodology (Course 310 - Basic Income Capitalization Equivalent) AB-l Licensed Appraisal Course Real Estate Appraisal Seminars: USP AP "Core" Law Update - 1996 Experience 1994 to present Pardue, Heid, Church, Smith & Waller of Tampa Associate Appraiser, State-Certified General Appraiser 0002326 Prepared appraisals of a wide variety of commercial, industrial, and special-purpose properties, including office, retail, industrial, multifamily, and vacant land. Experience includes both existing and proposed properties. 1992 to 1994 KPMG Peat Marwick Research Analyst, Real Estate & Hospitality Consulting Performed market and [mancial research and analysis for real estate, hospitality, and sports-related consulting engagements throughout the United States. I I I I I I I I I I I I I I I I I I I QUALIFICATIONS OF MICHAEL E. AHW ASH (Cont'd) Rev. 10-97 /bjf Dames & Moore Land Planner/Landscape Architect Responsible for design and project management for new development projects throughout the west-central Florida area. Primary emphasis was on site planning and landscape design for public and private clients. 1987 to 1991 Partial List of Clients American General Life Insurance Company ARCS Commercial Barnett Banks, Inc. Barnett Bank of Pin ell as County Barnett Bank of Tampa Bay Gulf Federal Credit Union Bayerische Vereinsbank AG Concire Centers, Inc. The Cott Corporation The EcoGroup Eichler, Fayne & Associates First Union National Bank Florida Department of Transportation Guaranty Federal Bank, F.S.B. Integra Bank Key Bank of Florida M. E. Barger & Associates Mortgage Company National City Bank NationsBank of Florida Northland Financial Pall Aeropower Corporation PNC Bank, Kentucky, Inc. Rudnick & Wolfe Shoptaw James Society Bank, Michigan SouthTrust Bank of Florida SouthTrust Bank of Alabama Suncoast S&L Association The Terrace Bank of Florida U.S.E. Community Services Group