Market Study Report
Total Page:16
File Type:pdf, Size:1020Kb
MARKET STUDY REPORT Saint Christopher’s Property Proposed Multi‐Family Development Hamlet of North White Plains Town of North Castle Westchester County, New York PREPARED FOR Joseph M. Forgione JMF Properties 80 South Jefferson Road, Suite 202 Whippany, New Jersey 07981 OTTEAU GROUP VALUATION | RESEARCH | CONSULTING | BROKERAGE New York Office New Jersey Office 140 Broadway, 46th Floor 15 Brunswick Woods Drive Manhattan, NY 10005 East Brunswick, NJ 08816 Tel: 800-458-7161 Fax: 800-273-3295 www.otteau.com February 9, 2016 Joseph M. Forgione JMF Properties 80 South Jefferson Road, Suite 202 Whippany, New Jersey 07981 RE: Saint Christopher’s Property Proposed Multi-Family Development Hamlet of North White Plains Town of North Castle Westchester County, New York Dear Mr. Forgione: In accordance with your request, I submit our market study report for the proposed development of the above referenced property with luxury residential apartments. This market study report summarizes the various processes employed in developing our conclusions, the relevant data which formed the basis of our analyses, various exhibit documents upon which we have relied and any assumptions upon which our study has been based. I have inspected the subject site and investigated relevant economic, demographic and real estate market factors within the context of the regional and local market area. Based upon our investigation and analysis we conclude that rezoning a portion of the property to allow for luxury apartment development with a set-aside for affordable housing is beneficial and viable use of the property which will fill an unmet need in the local community. Respectfully submitted, Jeffrey G. Otteau, President, New Jersey Certified General Real Estate Appraiser, #42RG00094100 New York Certified General Real Estate Appraiser, #46000045325 Pennsylvania Certified General Real Estate Appraiser, #GA003481 Delaware Certified General Real Estate Appraiser, #X1-0000419 National Association of Independent Fee Appraisers, IFA Designation #2377 JGO/td Table of Contents PART I - INTRODUCTION .......................................................................................................... 1 Executive Summary .................................................................................................................... 1 Subject Property Location......................................................................................................... 11 Date of the Study ...................................................................................................................... 12 Identification of Property .......................................................................................................... 12 Purpose & Intended Use of the Study ....................................................................................... 12 Intended User of the Study ....................................................................................................... 12 Scope of Work .......................................................................................................................... 13 Ownership & History of Property ............................................................................................. 13 Tax and Assessment Analysis ................................................................................................... 14 PART II – FACTUAL DESCRIPTIONS ..................................................................................... 15 Area Analysis ............................................................................................................................ 15 Neighborhood Analysis ............................................................................................................ 20 Land Use Regulation ................................................................................................................. 22 Site Analysis ............................................................................................................................. 25 Improvement Analysis .............................................................................................................. 27 PART III – ECONOMICS & DEMOGRAPHICS ....................................................................... 32 Economic Factors...................................................................................................................... 32 Demographic Factors ................................................................................................................ 38 PART IV – MULTI-FAMILY APARTMENT SECTOR ANALYSIS ....................................... 44 National Apartment Trends ....................................................................................................... 44 Westchester Metro Apartment Trends ...................................................................................... 44 Local Apartment Trends ........................................................................................................... 46 Apartment Supply & Demand .................................................................................................. 49 Competitive Set ......................................................................................................................... 54 Apartment Design Recommendations ...................................................................................... 61 Rental Price & Pace Projections ............................................................................................... 64 Demand Segmentation Analysis ............................................................................................... 66 Affordable Housing Analysis ................................................................................................... 70 PART V - PROPERTY TAX PROJECTION .............................................................................. 77 Income Approach ...................................................................................................................... 77 Property Tax Rates .................................................................................................................... 78 Property Tax Projections........................................................................................................... 78 PART VI - Conclusion of Study ................................................................................................... 80 PART VII -ADDENDUM ............................................................................................................ 83 Limiting Conditions and Assumptions ..................................................................................... 83 Certification .............................................................................................................................. 86 Glossary of Definitions ............................................................................................................. 87 Professional Qualifications ....................................................................................................... 91 Demographic Analysis .............................................................................................................. 93 1 PART I - INTRODUCTION Executive Summary Date of Study Report: February 9, 2016 Effective Date of Study: November 30, 2015 Location: 1700 Old Orchard Street Hamlet of North White Plain Town of North Castle Westchester County, New York Current Zoning: R-1A, One Family Residence District (1-acre) R-2A, One Family Residence District (2-acre) Present Use: Jennie Clarkson campus & excess land Proposed Use: Luxury Rental Apartments (Market & Affordable-Rate) Synopsis: The subject of this market study is a 35.99-acre parcel identified as Section 118.01, Block 1, Lot 2 (1700 Old Orchard Street) on the Tax Map of the Hamlet of North White Plains, Town of North Castle in Westchester County. The northwestern portion of the site is presently improved with the Jennie Clarkson Campus, an adolescent developmental facility for children with special needs and their families. A proposed subdivision of the overall site would create the following parcels: St. Christopher Property – A 13.60-acre parcel, upon which the existing Jennie Clarkson Campus is located, for the continued operation of that facility. Subdivision Parcel – A 22.39-acre parcel which would be subdivided from the existing property to facilitate the development of luxury apartments. The proposed development would be located on a 12.18-acre portion of this parcel which is situated at the extreme southwestern corner of the overall property. The remaining 10.21-acres of the site would be designated as a ‘conservation parcel’ wherein no development activity is permitted. The purpose of this market study is to determine whether the proposed development of a portion of the above referenced property with luxury apartments is a beneficial and viable use which will fill an unmet need in the community. Economic & Demographic Conditions: There is strong evidence of continuing economic expansion and job creation in New York State. Based upon year-to-date job creation the state is on pace to gain 168,700 jobs in 2015 which would be its second strongest year for job growth in over a decade. OTTEAU GROUP VALUATION | RESEARCH | CONSULTING | BROKERAGE 2 Economic growth and job creation in New York State have however have been largely concentrated in New York City while outlying suburban areas