Parkside at Butler Apartments
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Market Feasibility Analysis Parkside at Butler Apartments Greenville, Greenville County, South Carolina Prepared for: NHE, Inc. Site Inspection: February 21, 2020 Effective Date: February 21, 2020 Parkside at Butler | Table of Contents TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................. I TABLES, FIGURES AND MAPS ................................................................................................ III EXECUTIVE SUMMARY........................................................................................................... 1 1. INTRODUCTION .............................................................................................................. 8 Overview of Subject .....................................................................................................................................8 Purpose of Report ........................................................................................................................................8 Format of Report..........................................................................................................................................8 Client, Intended User, and Intended Use.....................................................................................................8 Applicable Requirements .............................................................................................................................8 Scope of Work..............................................................................................................................................8 Report Limitations........................................................................................................................................9 Other Pertinent Remarks .............................................................................................................................9 2. PROJECT DESCRIPTION.................................................................................................. 10 Project Overview........................................................................................................................................10 Project Type and Target Market ................................................................................................................10 Building Type and Placement.....................................................................................................................10 Detailed Project Description ......................................................................................................................11 3. SITE AND NEIGHBORHOOD ANALYSIS ........................................................................... 12 Site Analysis................................................................................................................................................12 Neighborhood Analysis ..............................................................................................................................16 Site Visibility and Accessibility....................................................................................................................17 Residential Support Network .....................................................................................................................18 4. ECONOMIC CONTEXT.................................................................................................... 21 Introduction ...............................................................................................................................................21 A. Labor Force, Resident Employment, and Unemployment..................................................................................21 1. Trends in County Labor Force and Resident Employment.........................................................................21 2. Trends in County Unemployment Rate......................................................................................................21 B. Commutation Patterns .......................................................................................................................................21 C. At-Place Employment .........................................................................................................................................23 1. Trends in Total At-Place Employment........................................................................................................23 2. At-Place Employment by Industry Sector...................................................................................................23 3. Major Employers........................................................................................................................................24 4. Recent and Proposed Economic Expansions/Contractions........................................................................26 5. Wage Data..................................................................................................................................................27 5. HOUSING MARKET AREA .............................................................................................. 29 Introduction ...............................................................................................................................................29 Delineation of Market Area........................................................................................................................29 6. DEMOGRAPHIC ANALYSIS............................................................................................. 31 Introduction and Methodology..................................................................................................................31 Trends in Population and Households .......................................................................................................31 Demographic Characteristics .....................................................................................................................33 7. COMPETITIVE HOUSING ANALYSIS................................................................................ 39 Introduction and Sources of Information...................................................................................................39 Overview of Market Area Housing Stock ...................................................................................................39 Survey of Competitive Rental Communities ..............................................................................................40 Analysis of Rental Pricing and Product.......................................................................................................43 Housing Authority Data / Subsidized Housing List.....................................................................................46 Potential Competition from For-Sale Housing and Scattered Site Rentals ................................................47 Page i Parkside at Butler | Table of Contents Proposed and Under Construction Rental Communities ...........................................................................47 Estimate of Market Rent ............................................................................................................................48 8. FINDINGS AND CONCLUSIONS....................................................................................... 53 Key Findings ...............................................................................................................................................53 Affordability Analysis .................................................................................................................................55 Derivation of Demand................................................................................................................................58 Target Markets...........................................................................................................................................60 Product Evaluation.....................................................................................................................................60 Price Position..............................................................................................................................................61 Absorption Estimate...................................................................................................................................64 Impact on Existing Market .........................................................................................................................64 Final Conclusion and Recommendation.....................................................................................................64 9. APPENDIX 1 UNDERLYING ASSUMPTION AND LIMITING CONDITIONS ........................... 65 10. APPENDIX 2 ANALYST CERTIFICATIONS..................................................................... 67 11. APPENDIX 3 ANALYST RESUMES ............................................................................... 68 12. APPENDIX 4 NCHMA CHECKLIST................................................................................ 71 13. APPENDIX 5 MARKET AREA RENTAL COMMUNITY PROFILES..................................... 73 Page ii Parkside at Butler | Tables, Figures and Maps TABLES, FIGURES AND MAPS Table 1 Detailed Unit Mix and Rents, Parkside at Butler............................................................................................11