11-8-01 EXECUTIVE SUMMARY - BEST/BENSON

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FROM FAEGRE• &' BENSON (THU) 11. 8' 01 14;53/ST. 14:45/NO._ 8 X01516 P 5 (THU) i ' 8' 01 3:44/5'", 8:43/NC. 4�b��y�i�. 7 FROM BEST & FAVAGA�` .� .. EXECUTWE SUMMARY • Four senior developments provide affordable units towmoderate-income holds_ In total, — there are 386 units of affordable senior housing m t. but is coni a �.jeeel. One of the four comparables is actually located outside the Study Area, compa- - Regardless,it is these four developments that will - rabic in amenities and services provided. �' be most comparable to the affordable component of the subject ddevelopment. Overall, af- fordable units account for 37% of the comparable units • No affordable units were reported vacant at the time of our survey, to a vacancy • 9 translating I vacancy y /ne die rate of 0.0%. • WAe,, potential development of 235 additional mark -rate independent senior We are aware of the P years. However,only Inc � o' i- udder con- units in the Study Area over the next few willettend to con- struction. Furthermore, the location of two of these developments,dPlymouth,e, if all three de- velopments a large share of their residents from outside Study velo ents were to come online by 2005,they w uld only satisfy 115 units of demand in the pm Study Area. n�'�/ e ®a //�� va/fr �4 e �G�� Q�d.hoh��to D b 4,;� pose Conclusions and"posed ? • We believe that an independent senior rental development could be very successful on the proposed Site. Our research showed that pent-up demand currently exists for additional in- dependent senior housing in Orono and the Site's location is very desirable,especially after Highway 12 is rerouted and the Site's street frontage receives less traffic. • Based on our demand estimates,we believe the proposed 62-unit devsop how ocu der, wbee successful as proposed. The rents are in line with consumer expectations, would suggest consideriDB slightly larger units (at the deveast elopment. O�research has shoe units) in order wn maximize the current and future marketabilitythe own that developers have been very successful with large floor plans in larger amber ize of units has been steadily increasing. The unit mix is appropriate, plus dere of two-bedroom units could be supported, as could slightly largone-bedroom� ties me units, including one and one-half bathrooms- The unit features and enclosed parking S� competitive,with central air-conditioning,in-unit washers and dryers /y allis ane w, Ci v as the most requested amenities from this target market. &A/Vie.)or-e/,'\ Qs-Aopa� . A god? .t � e believe the market rate units could reac35. Under the recommended development cone a rate of 6 to 8 twits Per month) stabilized occupancy(95%) in 6 to 7 mon •- of opening with a strong marketing effort,with 30% of the units pre-leased. The affordable units could reach stabilized occupancy within 1 to 2 months,and could potentially entirely be pre-leased, due to low vacancy , rates for affordable product of this type. The above absorption.rate as- will lathy yield a slightly �, 7 sume- a • -•_ or summer openut: bile a fall or winter openingsincedthesegarc a , slower raze of abso ,•tion_ 'e recommend a spring or early summer opening, periods. Other competitive developments that would be coming the prime home-se g p on absorptio on- line at the same ' •e as the proposed development would also have an impact rates. -a,,, 1 ? pt9/n MAX/11D RESEARCH INC.