February 8, 2021
Mr. Dan Kinkead Smith Group, Incorporated 201 Depot Street, 2nd Floor Ann Arbor, Michigan 48104
Re: Hotel Hayes Building Highest and Best Use Analysis (Jackson, Michigan)
Dear Mr. Kinkead:
Bowen National Research has completed a preliminary Highest and Best Use Analysis for the former Hotel Hayes building in Jackson, Michigan.
The purpose of the report is to provide you with key demographic, economic and relevant supply data and analyses as they relate to potential development alternatives currently being considered for the subject site. Per your request, we have evaluated the potential to develop rental apartments, for-sale condominiums, and retail/commercial space. Our report concludes with our recommendations as to the highest and best uses that can be supported at the subject site.
Because a specific project concept has yet to be established, we have provided you with general development guidelines in terms of product type, design features and rent/pricing structures. We provided demand estimates at various rents/price points to allow you to understand how the project’s market potential is impacted by the changes among the different levels of affordability that may be offered at the site. Once you have prepared a financial model and refined the project concept, we can provide additional guidance and recommendations, if needed. Regardless, this report should give you sufficient information from which you can further develop the site’s project concept.
We have enjoyed working on this project and look forward to getting your feedback on this analysis.
Respectfully,
Patrick M. Bowen [email protected]
www.bowennational.com 155 E. Columbus Street, Suite 220 | Pickerington, Ohio 43147 | (614) 833-9300
Highest & Best Use Analysis
Hotel Hayes 228 West Michigan Avenue Jackson, Michigan 49201
Prepared For
Mr. Dan Kinkead Smith Group, Incorporated 201 Depot Street, 2nd Floor Ann Arbor, Michigan 48104
Effective Date
February 8, 2021
Job Reference Number
20-660 (Patrick Bowen)
www.bowennational.com
155 E. Columbus Street, Suite 220 | Pickerington, Ohio 43147 | (614) 833-9300 Table of Contents
I. Executive Summary II. Highest and Best Use Analysis III. Qualifications
Addendum A: Telephone Survey of Conventional Rentals Addendum B: Non-Conventional Rentals
Note: Information on individual for-sale transactions and listings can be provided upon request
BOWEN NATIONAL RESEARCH Table of Contents I. Executive Summary
The purpose of this report is to determine the highest and best use for a vacant building (Hotel Hayes) located in downtown Jackson, Michigan. The potential development alternatives considered in this report include rental apartments, for-sale condominiums, and retail space.
Project Demand Summary (Highest & Best Use Recommendations) – Based on the findings contained in this report, we believe there is a development opportunity for some residential units at the site, with modest support for retail space. The following table summarizes recommended uses for the subject site, at a variety of affordability levels.
Highest & Best Use Estimates & Recommendations Market Potential by Affordability Level Primary Use Low Moderate High Apartments Up to 66 Units Up to 50 Units Up to 34 Units (Affordable/Workforce) Base Rent of $700 Base Rent of $800 Base Rent of $900 Apartments Up to 58 Units Up to 48 Units Up to 37 Units (Market-rate) Base Rent of $800 Base Rent of $1,000 Base Rent of $1,200 Up to 26 Units Up to 15 Units Up to 26 Units For-Sale Condominiums $150,000-$199,999 $200,000-$249,999 $250,000+ ~ 9,200 square feet Retail Space Not Studied Not Studied @ $13.00+ Triple Net Note: All estimates are approximations. The actual number of residential units or amount of retail space is contingent upon a variety of factors such as design, finishes, features, amenities, complementary uses, layouts, etc.
Product design recommendations are provided starting on page I-5.
Site Description – The subject project involves repurposing the vacant Hotel Hayes located at 228 West Michigan Avenue in Jackson, Michigan. Opening as the Hotel Hayes in 1926 with 203 rooms, this development was considered the most elaborate and largest hotel project ever undertaken in Jackson. The elevator-served 10-story structure offers approximately 10,000 square feet per floor. Operating for over 40 years as a hotel, the building’s most recent use was as office space (on the top three floors) for Consumers Energy. In the early 2000s, the Hotel Hayes was purchased by the City of Jackson for redevelopment while Consumers Energy consolidated in a new headquarters within the downtown area. The building has been vacant since 2003. Many features of the original hotel are still present on most floors and are clearly visible on the exterior of the building.
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Key Market Metrics – The following summarizes key market metrics that impact development opportunities at the subject site:
The Subject Building’s Historic Presence and Architectural Design, as well as its Downtown Location will Contribute to Its Marketability – The subject building is a nearly one-hundred year old 10-story structure that has many interior and exterior Georgian Revival design elements preserved. The subject site is situated in the central portion of the Jackson Central Business District, which offers a variety of employment, entertainment, shopping, and dining opportunities. Most community services are within 1.0 mile of the subject site. Overall, the subject property fits in well with the surrounding land uses, which are primarily comprised of the public library adjacent west; new multifamily rental properties, a proposed parking lot, and an engineering firm’s national headquarters to the north; and a public park, various area commercial and retail services, and cultural amenities to the south and east. Site access and visibility are considered excellent. The site should benefit from recently completed and ongoing development and investment in the area, such as the reconstruction of Michigan Avenue, several recently completed new construction projects and building renovations, and the recently opened Jackson School for the Arts. Based on the site’s proximity to community services, access/visibility, and availability of parking, it is our opinion that the downtown location of the subject site will be marketable for future development.
Demographic Trends are Projected to be Positive Among Moderate- and High- Income Households – Within both the Residential Primary Market Area (PMA) and smaller Retail PMA, the trend of declining populations and households over the past two decades appears to be stabilizing to some degree. There appear to be two significant demographic changes projected to occur by 2025 that will have an impact on housing needs. First, despite a projected overall population decrease of residents over the next five years, the age group of 65 and older is expected to experience a notable population increase through 2025. Second, income levels for both renter- and owner-occupied households are expected to increase substantially in the moderate- and high-income brackets. This indicates a potential increase in demand for product that will serve higher income households and senior households (ages 65 and older) within the market, for both renter- and owner-occupied housing types. It is also projected over the next few years that the Residential PMA will experience notable growth among renter households earning between $30,000 and $60,000 annually, leading to a likely growing need for affordable/workforce rental housing units. Lastly, the distribution of households by size is not expected to change significantly over the next few years. One- and two-person households comprise the majority of households, which will lead to a likely need for smaller unit types (studio, one-bedroom and two-bedroom).
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The Local Economy Appears to have Nearly Fully Recovered from the Impacts of COVID-19 and Several Ongoing and Planned Investments and Developments will have a Positive Impact on the Local Economy – The local economy is relatively diversified and was performing well prior to the COVID-19 pandemic, as evidenced by the declining unemployment rate over the past decade and the more than 5,700 jobs added to the county’s employment base since 2010. Based on a cursory review of local economic news and announcements along with our interviews with various local stakeholders, there appear to be numerous private sector (e.g., new residential and commercial development, business expansions, etc.) and public sector (e.g., infrastructure) investments and developments recently completed, planned or underway that should contribute to Jackson’s economy for the foreseeable future. This anticipated economic growth will positively impact the demand for a variety of housing and retail alternatives.
Both Market-Rate and Affordable Rental Alternatives are Performing Well and Development Opportunities Exist for Both Segments – We identified and telephone surveyed 18 multifamily rental housing projects containing a total of 2,084 units within the Residential PMA. This survey was conducted to establish the overall strength of the rental market and to identify those properties most comparable to product that may be developed at the subject site. These rentals have a combined occupancy rate of 94.7%, which is a good rate for market-rate rental housing. The market-rate units are 92.2% occupied and the Tax Credit units are 99.8% occupied. Typically, healthy and well-balanced rental housing markets have overall occupancy levels generally between 94% and 96%. As such, the overall market-rate occupancy rate of 92.2% is slightly low. However, it should be pointed out that 45 (41.3%) of the 109 total vacant market- rate units identified in the market are within a single project: The 200 (Map ID 1). This 86-unit market-rate project recently opened and is in its initial lease-up phase. When this project is excluded, the overall market-rate occupancy rate increases to 95.1%. This is a good occupancy level and a demonstration of the high level of demand for market-rate product in the Residential PMA. The 99.8% overall occupancy rate among the surveyed Tax Credit projects, which serve households with incomes of up to 80% of Area Median Household Income (approximately up to $47,840), indicates very limited available housing that is affordable to lower income households.
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Few Modern Large-Scale Condominium Projects Have Been Developed in Jackson, Yet Existing Product is Selling at a Good Rate – Based on our research of recent sales and currently available condominium product in the subject market, it appears that few modern condominium units have been sold or are available, particularly in the downtown area. Despite this, the existing condominium units have not been on the market very long (average number of days on market of 50, which is a short period), indicating a good level of demand for such product. The overall median sales price of homes sold in the past seven months is $114,594, while condominiums that sold have a median price of $185,000. Among the home product available to purchase, the overall median list price is $94,000, while condominiums have a median list price of $177,450. As such, it appears that condominiums have been able to achieve a premium in the market. It is worth pointing out that there appears to be a limited amount of available condominium supply priced between $150,000 and $215,000. This may be an underserved segment of the condominium market and represents a potential development opportunity for the subject site.
While there does not Appear to be a Large Amount of Vacant Retail Space in the Market, Moderate Growth Projected for Consumer Expenditures Likely Limits the Potential for New Retail Space – Based on our survey of downtown retail space, it appears that there is only about 32,000 square feet of retail space available to rent within the downtown area. Most of the identified space consists of B and C class product, while A class product comprises 17.5%. The relatively limited amount of available space, particularly the limited amount of class A space, represents a potential development opportunity for such space. However, due to the relatively moderate growth projections in consumer expenditures over the next few years in Jackson, retail space at the subject site will have to rely on consumer spending growth from the external market (areas outside the city) and on existing consumer expenditures from Jackson. Because we anticipate that the subject will have to rely on these demand components, it will be critical that the site attract a retailer that is unique, in terms of its service and/or product, as well as creating a unique environment. Certainly, development of residential units at the subject site will further enhance the development opportunities for retail space at the site.
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Product Design Recommendations – The following summary provides general project concept designs by product type and key market findings.
1. Rental Apartments – The development of market-rate apartments appears to have the deepest level of support and be the strongest and safest of development opportunities considered for the subject site. This is primarily based on the lack of available supply and the strong projected growth expected to occur among moderate- and high-income households. This would include affordable/workforce rentals and/or market-rate rentals, possibly in a mixed-income project. It appears that the project could likely support no more than 66 affordable/workforce units and no more than 58 market-rate units. Developing apartments at the site does not preclude the project from also including some segment of for-sale product, as discussed on the following page.
While the development of a variety of bedroom types could be supported, based on the site’s downtown location, the market’s large base of smaller (one- and two- person) household sizes, along with the lack of available product, it is recommended that most of the project consist of one- and two-bedroom units. These bedroom types should each comprise roughly 40% to 50% of the rental units, with the remaining balance consisting of studio units (note: a small share of three- bedroom units could be supported).
While the actual rent structure implemented at the subject site will be contingent on a variety of design elements, it is believed that any modern market-rate product will need to include a comprehensive amenity package and high-end finishes, while affordable/workforce could be marketable with a scaled down product. Full listings of recommended amenities for both product types are included on page II-36 of this report. Living space for market-rate product should be around 450 square feet for a studio unit, 650 to 700 square feet for a one-bedroom unit, 900 to 950 square feet for a two-bedroom unit and, if built, three-bedroom units should have around 1,000 to 1,100 square feet. Affordable/workforce units should be no more than roughly 50 to 75 square feet smaller than the market-rate units. Among market-rate product, studio and one-bedroom units should include one full bathroom, two- bedroom units could include one to two full bathrooms, and three-bedroom units should include two full bathrooms. Affordable/workforce apartments could be marketable with a similar bathroom configuration, though just one full bathroom in the two-bedroom units should enable such product to compete in the marketplace. Assuming the developer includes close to 50 or more apartment units, common area amenities should include on-site management, activity/meeting area, storage areas (including bike storage), and a fitness center. The project will need to include dedicated and secured parking of at least one space per unit (possibly more to meet local codes) or have arrangements made with one of the nearby parking lots or garages.
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2. For-Sale Condominiums – Market metrics point to positive support for for-sale condominium product. Positive market indicators include condominium units selling relatively quickly (generally under 50 days), the limited inventory of available condominium product (only six units identified), the site’s downtown location which will appeal to many buyers, very positive growth among high- income households, and the lack of one-bedroom units offered in the market. These indicators represent a potential development opportunity.
The subject site could support up to around 26 condominium units priced between $150,000 and $199,999, up to 15 units priced between $200,000 and $249,999, and up to 26 units priced at $250,000 and higher. While a variety of pricing combinations could be supported, it does appear that the market is lacking condominium product priced between $150,000 and $215,000. Therefore, there appears to be a strong opportunity to develop units within this price range.
We recommend that condominium product developed at the site primarily consist of a mix of around 40% one-bedroom units with base pricing starting around $175,000, and approximately 40% two-bedroom units with base pricing starting around $200,000. It should be noted that higher priced units could be supported, assuming the product was well designed and included high-end finishes, a comprehensive amenities package and marketable floor plans. The remaining 20% of units could consist of studio and/or three-bedroom units, or be redistributed among the one- and two-bedroom units. The one-bedroom units should include one full bathroom and offer approximately 900 to 1,000 square feet of living space, while the two-bedroom units should include two full bathrooms and approximately 1,100 to 1,200 square feet of living space. Standard unit amenities should include stainless steel kitchen appliances, granite or quartz countertops, washer/dryer hookups, central air conditioning, large closets, and walk-in showers. Standard on- site community amenities should include dedicated parking and storage areas. Should enough residential units be developed (possibly in conjunction with rental units), the developer may want to consider community amenities such as a fitness center, on-site management, and community activity space (e.g. party/social room, rooftop deck, meeting room, etc.). HOA fees could be positioned around $200 per month, though they could be higher depending on the services covered in the fees.
Penthouse condominium units could be introduced on the top floor of the building. Such units could include two or three bedrooms, with multiple bathrooms and up to 2,000 square feet of living space. Such space would likely need to be custom built to meet the buyers’ needs.
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3. Retail Space – Based on the existing annual consumer expenditures of Jackson and the projected growth in the consumer expenditures in both the city of Jackson and Jackson County and accounting for the available retail in the market, there appears to be an opportunity for approximately 9,200 square feet of retail space at the subject site. Assuming the retail space at the subject site is of high quality and given that recently developed retail space near the site is achieving a rent of around $12.50 per-square-foot, it is likely lease rates generally ranging from $13 to $15 per-square-foot would be achievable at the subject site. Additional factors that will ultimately affect the achievable lease rate at the subject site include the type of lease (triple net, gross, or modified gross) and length of lease.
Because of the lack of projected growth among consumer expenditures for the next few years, retail space at the subject site will need to be occupied by retailers that offer unique products or services. Possible users such as a high-end restaurant (steakhouse, seafood, etc.), custom art studio (glass maker, sculptor, etc.), and boutique shops would help to make the subject site a destination location. Complementary retailers such as a coffee shop, bakery or deli would also be marketable at the site.
Overall Conclusions and Recommendations – There are many positive characteristics and trends occurring in the Jackson market, including positive demographic growth among higher income households, a large number (over 25,000) of commuters traveling into the county for work on a daily basis, notable public and private sector investment, high apartment occupancy rates and relatively short sales periods for condominiums, positive growth in consumer expenditures and a high level of demand for retail space in the downtown area. Contributing to the marketability of the subject site is the subject project’s historic nature and architectural appeal and its downtown location with numerous social, cultural, recreational and economic opportunities. These positives are tempered somewhat by the fact that overall job growth has been slow for at least three years, overall demographic growth in Jackson has been stagnant for several years, and the market for modern high-end residential and retail space product is generally untested. Regardless, we believe there is sufficient support for new residential units, both apartments and for-sale condominiums. While support for new retail space is more modest, we believe there is sufficient support for retail space at the subject site, assuming such space is unique (both in its product/services and environment).
There are a variety of residential products that could be offered at the site. It is our conclusion that the subject site could support the development of a market-rate apartment community that includes up to 58 units with base rents starting at $800. While higher rents can be achieved, the base of support diminishes as rents are increased. Affordable/workforce housing could also be marketable at the site, with potential support for as many as 66 units, with base rents starting at $700. We would expect such units would be developed with some type of income restrictions in place, likely allowing residents with incomes of up to 80% of Area Median Household Income (limited to $47,850 for a family of three) to qualify for residency. Up to 67 for-sale
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condominium units could be supported at the subject site, though the depth of support varies depending upon the pricing of the units. While a variety of price points could be supported, it does appear that the market has a limited supply of condominium product priced between $150,000 and $215,000, which may represent a development opportunity at the site. Some higher end, penthouse-style units could be considered if done on a very small scale (possibly two to four units) and if floor plans are large and amenities and finishes are high-end. While we believe approximately 9,200 square feet of retail space could be supported at the subject site, it is strongly encouraged that the retail space be occupied by retailers that will offer a product or service that is relatively unique to the area, particularly in downtown. Such uses could be high-end eateries and/or boutique shops that help to make the subject site a destination location.
The subject site is among the city’s tallest structures, providing upper levels with excellent views of much of the city, including the adjacent Blackman Park. Any development at the site should take advantage of and promote its proximity to nearby community assets such as the various parks, the city library, Jackson Symphony Orchestra and other social and cultural attractions, along with its proximity to employment opportunities in the downtown area. Should the developer include both condominium and apartment units, we recommend that the condominium units be placed on the highest floors, with the apartments on the lower floors.
While this study did not consider others uses such as event and/or meeting space, shared workspace or office uses, redevelopment of the subject building should consider such space. While our demand estimates for retail space indicate that there is support to fill most of the first floor with retailer users, there does not appear to be sufficient support for retailer users on the second floor. Additionally, the second floor is not ideal for most retailers, further diminishing the demand for retail space on this floor. We do believe, however, that the utilization of the second floor should consist of space that will be complementary to both the first-floor retailers and residential occupants. This may include a fitness center, meeting space, business center, and event or entertainment space.
While this study is intended to provide a preliminary assessment of development opportunities at the subject site, it is recommended that a full site-specific study be prepared for any specific project concept that is proposed for the site. Such a study will allow for a more refined analysis of specific design aspects, rents/prices, and features that would be part of the development.
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II. Highest & Best Use Analysis
A. INTRODUCTION
The purpose of this report is to determine the highest and best use for a vacant hotel building located in downtown Jackson, Michigan. The potential development alternatives considered in this report include rental apartments, for-sale residential condominiums, and retail space. In order to assess the market potential for each of the previously noted uses, we evaluated the subject site and surrounding neighborhood, analyzed local demographic and economic characteristics and trends, inventoried existing rental housing, for-sale housing and retail space uses, and conducted site-specific market demand estimates for each of the potential uses.
B. SUBJECT SITE
The subject project involves the repurposing of the vacant Hotel Hayes located at 228 West Michigan Avenue in Jackson, Michigan. Opening as the Hotel Hayes on November 29, 1926 with 203 rooms, this development was considered the most elaborate and largest hotel project ever undertaken in Jackson. The building was bought and remodeled in 1964 by the Civic Center Hotel Corporation and again in 1973 by Consumers Energy. Operating for over 40 years as a hotel, the building’s most recent use was as office space (on the top three floors) for Consumers Energy. In the early 2000s, the Hotel Hayes was purchased by the City of Jackson for redevelopment while Consumers Energy consolidated in a new headquarters within the downtown area. The building has been vacant since 2003. Many features of the original hotel are still present on most floors and are clearly visible on the exterior of the building.
Hotel Hayes Property Summary Location 228 West Michigan Avenue, Jackson, Michigan 49201 Parcel Number 1-0081 Building Owner City of Jackson Number of Floors 10 plus basement Building Sq. Ft. 113,366 (not including basement) Sq. Ft. Configuration Floor 1: 11,220, Floor 2: 6,685, Floors 3 to 10: 9,850 Lot Size 126' x 132' Acreage 0.382 Parking 41 spaces, additional negotiable Elevator 2 passenger; 1 freight to 4th Floor HVAC Boiler; window air conditioning Architectural Style Georgian Revival Zoning C-3 Central Commercial • Negotiated price • Brownfield Tax Increment Financing & Federal Environmental Protection Agency (EPA) grant funds • Federal and State Incentives Historic Tax Credits • Obsolete Property Rehabilitation District • Neighborhood Enterprise Zone • New Market Tax Credits Financing Source: City of Jackson Community Development Department; Hotel Hayes RFQ Focus Group Meeting 12/17/20
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The first floor of the subject building includes approximately 11,220 square feet of space, while the second floor includes approximately 6,685 square feet of space. These lower levels consist of the hotel lobby, a ballroom, and office space, none of which is in use at this time. Floors three through ten include footprints of approximately 9,850 square feet of space on each floor. Overall, the building has over 100,000 square feet of interior space, as well as a basement and rooftop that could be utilized for other development purposes.
C. SITE EVALUATION
1. Location
The subject project involves the potential repurposing of the existing Hotel Hayes structure located at 228 West Michigan Avenue, within the Central Business District of Jackson, Michigan. Interstate Highway 94 and U.S. Highway 127 converge in Jackson, connecting Jackson directly to Ann Arbor and Detroit to the east, Battle Creek and Kalamazoo to the west, and Lansing to the north. While an on-site visit was not conducted for the purposes of this preliminary analysis, we have provided an overview of site characteristics that could have an influence on the proposed subject project’s marketability.
2. Surrounding Land Uses
The subject site is within an established urban area of downtown Jackson. It is situated adjacent east of the Historic Carnegie Library and parking lot and the 1927 Consumers Energy Building, which is currently used by the Library. An auto repair shop and a funeral home are located immediately west of South Blackstone Street. The T-plan building fronts on West Michigan Avenue, with the rear leg of the “T” extending to the north. The surrounding land uses to the north include the future site of Commonwealth Associates’ national headquarters, a future parking structure, the new upscale Lofts of Louis, and The 200 rental housing community. Adjacent east, Blackman Park contains unique playground features and hosts concerts and various entertainment events. Further east, numerous community services are within walking distance of the site. To the south, the site property fronts several commercial buildings, with occupants such as professional office users, several financial institutions, and the Jackson Symphony Orchestra. A large parking lot is located further south. Overall, the subject property’s surrounding land uses should contribute to the project’s marketability, whether the subject project ultimately includes residential and/or retail uses.
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D. VISIBILTY AND ACCESS
The subject site is situated along West Michigan Avenue, a two-lane arterial roadway. The site property has unobscured visibility from surrounding neighborhood roadways, as well as from the more heavily traveled major thoroughfares, including the Interstate 94/U.S. Highway 127 Business Loop and West Washington Avenue. The future construction of the Commonwealth Associates’ national headquarters to the north is not expected to interfere with the site’s visibility, as the site is a 10-story high-rise building. Overall, visibility of the site within the site neighborhood is considered excellent. Access to the site is derived from West Michigan Avenue, which provides access to the Interstate 94 Business Loop approximately 0.2 mile to the west of the site. Diagonal public meterless surface parking is available along West Michigan Avenue, Hayes Court, and West Pearl Street. In addition to the site property’s 41 parking spaces, the nearest parking lot is adjacent north of West Pearl Street, which may eventually be replaced with a larger parking structure. The Jackson Area Transit Authority (JATA) transfer center is located within 0.4 mile southeast of the site, offering public transportation, greyhound bus access, and taxi services. Additionally, Amtrack links Jackson to Chicago, facilitating regional accessibility. Overall, access to the subject site is considered excellent.
E. PROXIMITY TO COMMUNITY SERVICES AND INFRASTRUCTURE
The subject site is within proximity of various shopping and dining opportunities. Community services located within 1.0 mile include banks, restaurants, a pharmacy, a gas station, a new Dollar General store, a United States Post office, a gym/fitness center, public parks, entertainment venues, and employment opportunities. The nearest police station and fire station, each operated by the City of Jackson, are also located within 0.6 mile of the site. The new Jackson School for the Arts is located within 0.9 mile of the site. The nearest acute care hospital, Henry Ford Allegiance Health, and nearest supermarket (Walmart Supercenter) are both located within 1.4 miles of the site. Within 0.2 mile southeast of the site, a new grocery store with fresh produce (Peach Market) is expected to open in Spring 2021. The Jackson County Department on Aging, which serves area seniors with various classes and activities, is located within 1.7 miles north of the site. The Jackson Public School System serves the subject site and attendance schools are located within 2.5 miles. Large-scale shopping centers, such as Westwood Mall and Jackson Crossing, are located within 2.0 miles of the site. It is also of note that most basic community services are accessible via public transportation provided by JATA.
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F. OVERALL SITE EVALUATION
The subject site is situated in the central portion of the Jackson Central Business District, which offers a variety of employment, entertainment, shopping, and dining opportunities. Most community services are within 1.0 mile of the subject site. Overall, the subject property fits in well with the surrounding land uses, which are primarily comprised of the public library adjacent west, new multifamily rental properties and a proposed parking lot and engineering firm’s national headquarters to the north, and a public park, various area commercial and retail services, and cultural amenities to the south and east.
Site visibility/awareness is considered excellent given the site property’s height and unobscured view from most angles, including from the Interstate 94/U.S. Highway 127 Business Loop. Access is also considered excellent as the subject property has frontage along West Michigan Avenue, a major area arterial roadway which provides access to and from the Interstate 94 Business Loop approximately 0.2 mile west of the site. Parking is also available at the subject property, adjacent north of the site, and along most surrounding roadways, which are largely located within the city’s meterless district. Public transportation is available to potential site residents/consumers, with the JATA transfer center located within 0.4 mile of the site.
The site should benefit from ongoing development and investment in the area, such as the reconstruction of Michigan Avenue, several recently completed new construction projects and building renovations, and the recently opened Jackson School for the Arts. Based on the site’s proximity to community services, access/visibility, and availability of parking, it is our opinion that the downtown location of the subject site will be marketable for future development.
A state map, an area map and a site neighborhood map are on the following pages.
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G. MARKET AREA DELINEATION
The subject site is located in downtown Jackson, within the Central Business District. Located at the center of Jackson County, Jackson is approximately 39.0 miles south of Lansing, Michigan and approximately 78.0 miles west of Detroit, Michigan. Jackson County is located in south-central Lower Michigan, close to the border with Northwest Ohio and Northeast Indiana. The foundation of this market analysis involves the establishment of various market areas that represent the geographic areas from which most of the competition for each development alternative we have studied is located and the area from which a majority of the support will originate. For the purpose of this analysis, we have established a Residential Primary Market Area and a Retail Primary Market Area for the development alternatives being considered for the subject site. We interviewed local sources and evaluated various demographic, economic and supply data to establish separate market areas for each development alternative considered in this report. The support for different development alternatives will originate from different areas, depending on the type of product that is ultimately developed at the site. The same is true for the competitive market, as the type of product developed at the site will determine the type of product that is competitive, thereby affecting the market area that should be considered. These market areas are discussed in detail below.
1. Residential Primary Market Area
The Residential Primary Market Area (PMA) is the area from which most of the competitive residential product is located and from which most support should originate for residential units developed at the site. This market area is used for both the apartments and condominium units that could be built at the site. The Residential Primary Market Area includes the city of Jackson and some of the immediate outlying areas. The boundaries of the Residential PMA include West Michigan Avenue, Wildwood Avenue, Airport Road, and Interstate Highway 94 to the north; U.S. Highway 127 to the east; East McDevitt Avenue, Hinckley Boulevard, Badgley Road, Horton Road, Weatherwax Drive, Park Road, Kibby Road, Robinson Road, and Spring Arbor Road to the south; and Michigan State Highway 60 to the west. While some support will originate from outside the PMA from people living elsewhere in Jackson County or the surrounding region, as well as from people relocating from outside the region, this PMA represents the area from which most of the support and competition for new residential product at the subject site would most likely originate.
A map delineating the boundaries of the Residential PMA is on the following page.
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2. Retail Primary and Secondary Market Areas
The Retail Primary Market Area (PMA) is the geographic area from which most of the commercial space competition is located. The Retail Primary Market Area generally focuses on the downtown area of Jackson. The specific boundaries of the Retail PMA include Interstate Highway 94/U.S. Highway 127 Business Loop, North Blackstone Street, Ganson Street, Francis Street, Detroit Street, North Waterloo Avenue, and Interstate Highway 94 Business Loop to the north; Page Avenue, Plymouth Street, Southeast Avenue, Liberty Street, and U.S. Highway 127 Business Loop to the east; Franklin Street, South Blackstone Street, and West Washington Avenue to the south; and Steward Avenue and Interstate Highway 94/U.S. Highway 127 Business Loop to the west. While it is possible that some competition for commercial space will be from outside this PMA, we believe the Retail PMA is the most relevant area from which competition is located.
Most commercial space developed at the subject site will likely get a notable amount of support from consumers residing outside the Retail PMA (downtown Jackson). This would include Jackson area residents traveling into the downtown area for destination shopping purposes, persons attending downtown events (concerts, public meetings, etc.) and those that work downtown. As a result, we have established a Retail Secondary Market Area (SMA), which extends out to the boundaries of the Residential PMA. It should be noted that our demand estimates for additional retail space that could be supported at the subject site consider projected consumer expenditure data for the overall city of Jackson and supplemental estimates that consider the balance of Jackson County.
A map delineating the boundaries of the Retail PMA and SMA is on the following page.
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H. DEMOGRAPHICS
We have analyzed demographic data using market areas for residential development and for retail development, which are distinctly different from each other. Most of the economic data presented later in this report is illustrated for either the residential market area or the county as a whole, depending upon the availability of data.
1. Population Trends
The population bases for 2000, 2010, 2020 (estimated) and 2025 (projected) for both of the study areas are summarized as follows:
Total Population 2000 2010 Change 2000-2010 2020 Change 2010-2020 2025 Change 2020-2025 Census Census Number Percent Estimated Number Percent Projected Number Percent Residential PMA 55,340 53,319 -2,021 -3.7% 52,598 -721 -1.4% 52,387 -211 -0.4% Retail PMA 887 755 -132 -14.9% 690 -65 -8.6% 729 39 5.7% Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
Between 2010 and 2020, both the Residential PMA and Retail PMA witnessed a decline of 1.4% and 8.6%, respectively, accounting for a total decline of 786 residents. Projections for the period of 2020 to 2025 indicate a projected population decline of just 0.4% for the Residential PMA, while the Retail PMA has a projected population growth of 5.7% over the same period. The positive projected population growth in the Retail PMA demonstrates the growing interest in residing in the downtown area.
The population bases by age are summarized for each market as follows:
Population by Age Median <25 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75+ Age 19,224 7,223 6,630 7,167 5,957 3,363 3,755 2010 (36.1%) (13.5%) (12.4%) (13.4%) (11.2%) (6.3%) (7.0%) 35.3 17,796 7,245 6,444 6,206 6,384 4,885 3,638 2020 Residential (33.8%) (13.8%) (12.3%) (11.8%) (12.1%) (9.3%) (6.9%) 36.9 PMA 17,510 7,128 6,332 6,050 5,976 5,266 4,125 2025 (33.4%) (13.6%) (12.1%) (11.5%) (11.4%) (10.1%) (7.9%) 37.4 Change -286 -117 -112 -156 -408 381 487 2020-2025 (-1.6%) (-1.6%) (-1.7%) (-2.5%) (-6.4%) (7.8%) (13.4%) N/A 221 120 114 129 88 51 32 2010 (29.3%) (15.9%) (15.1%) (17.1%) (11.7%) (6.8%) (4.2%) 38.0 179 112 96 95 104 66 38 2020 (25.9%) (16.2%) (13.9%) (13.8%) (15.1%) (9.6%) (5.5%) 40.4 Retail PMA 187 109 104 97 105 78 49 2025 (25.7%) (15.0%) (14.3%) (13.3%) (14.4%) (10.7%) (6.7%) 41.4 Change 8 -3 8 2 1 12 11 2020-2025 (4.5%) (-2.7%) (8.3%) (2.1%) (1.0%) (18.2%) (28.9%) N/A Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research N/A – Not Applicable
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As the preceding table illustrates within the Residential PMA, 71.7% of the population is under 55 years of age as of 2020. Although overall population for the Residential PMA is projected to decrease by the year 2025, increases are expected for the age groups of 65 to 74 (7.8% increase) and ages 75 and older (13.4% increase). This suggests a likely increase in demand for senior-oriented housing in the market.
2. Household Trends
Household trends within the study areas are summarized as follows:
Total Households 2000 2010 Change 2000-2010 2020 Change 2010-2020 2025 Change 2020-2025 Census Census Number Percent Estimated Number Percent Projected Number Percent Residential PMA 22,081 21,726 -355 -1.6% 21,614 -112 -0.5% 21,614 0 0.0% Retail PMA 366 349 -17 -4.6% 330 -19 -5.4% 355 25 7.6% Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
Within the Residential PMA, households decreased by 355 (1.6%) between 2000 and 2010 and decreased by an additional 112 (0.5%) between 2010 and 2020. Projections for 2025 indicate a static number of households when compared to 2020 data, suggesting a stabilizing trend when compared to previous periods. In the smaller Retail PMA (downtown), households are projected to increase by 25 (7.6%) between 2020 and 2025, reversing a trend of household declines from the past two decades.
The household head by age for each study area are summarized as follows:
Household Heads by Age
<25 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75+ 1,358 3,637 3,703 4,329 3,768 2,258 2,673 2010 (6.3%) (16.7%) (17.0%) (19.9%) (17.3%) (10.4%) (12.3%) 1,140 3,552 3,523 3,671 3,943 3,278 2,507 2020 (5.3%) (16.4%) (16.3%) (17.0%) (18.2%) (15.2%) (11.6%) Residential PMA 1,117 3,458 3,448 3,557 3,676 3,517 2,841 2025 (5.2%) (16.0%) (16.0%) (16.5%) (17.0%) (16.3%) (13.1%) Change -23 -94 -75 -114 -267 239 334 2020-2025 (-2.0%) (-2.6%) (-2.1%) (-3.1%) (-6.8%) (7.3%) (13.3%) 32 53 58 79 63 38 26 2010 (9.2%) (15.2%) (16.6%) (22.6%) (18.1%) (10.9%) (7.4%) 21 50 49 57 74 49 30 2020 (6.4%) (15.2%) (14.8%) (17.3%) (22.4%) (14.8%) (9.1%) Retail PMA 22 48 54 58 75 59 39 2025 (6.2%) (13.5%) (15.2%) (16.3%) (21.1%) (16.6%) (11.0%) Change 1 -2 5 1 1 10 9 2020-2025 (4.8%) (-4.0%) (10.2%) (1.8%) (1.4%) (20.4%) (30.0%) Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
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As of 2020, most head of households within the Residential PMA area are below the age of 55 (53.7%). Between 2020 and 2025, the greatest growth among household head age groups is projected to be among ages 65 and older, representing a 9.9% increase. The current high proportion of households age 55 and older (45.0%) in the Residential PMA and the projected growth of this age cohort will increase the demand for senior-oriented housing for the foreseeable future.
Households by tenure for each study area are distributed as follows:
Households by Tenure 2000 2010 2020 2025 Household Type Number Percent Number Percent Number Percent Number Percent Owner-Occupied 14,140 64.0% 12,657 58.3% 12,779 59.1% 12,772 59.1% Residential Renter-Occupied 7,941 36.0% 9,069 41.7% 8,835 40.9% 8,842 40.9% PMA Total 22,081 100.0% 21,726 100.0% 21,614 100.0% 21,614 100.0% Owner-Occupied 64 17.5% 56 16.0% 50 15.2% 49 13.8% Retail PMA Renter-Occupied 302 82.5% 293 84.0% 279 84.8% 306 86.2% Total 366 100.0% 349 100.0% 329 100.0% 355 100.0% Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
Within the Residential PMA, homeowners represent 59.1% of households in 2020. Based on 2025 projections, these proportions are expected to remain constant. As such, the introduction for new housing in the Residential PMA will likely need to be generally balanced to maintain this current ratio. Within the smaller Retail PMA, renter-occupied housing accounts for 84.8% of households and is expected to increase slightly by 2025. This data suggests that any new housing within the Retail PMA may need to be built with an emphasis toward renting tenants.
The household sizes by tenure within each study area, based on the 2020 estimates and 2025 projections, are distributed as follows:
Persons Per Renter Household Average 1-Person 2-Person 3-Person 4-Person 5-Person Total H.H. Size 3,551 2,630 1,213 726 950 9,069 2010 (39.1%) (29.0%) (13.4%) (8.0%) (10.5%) (100.0%) 2.22 Residential 3,818 2,392 1,164 791 671 8,835 2020 PMA (43.2%) (27.1%) (13.2%) (8.9%) (7.6%) (100.0%) 2.11 3,897 2,327 1,165 803 650 8,842 2025 (44.1%) (26.3%) (13.2%) (9.1%) (7.3%) (100.0%) 2.09 104 77 36 21 28 266 2010 (39.1%) (29.0%) (13.4%) (8.0%) (10.5%) (100.0%) 2.07 110 69 34 23 19 255 Retail PMA 2020 (43.2%) (27.1%) (13.2%) (8.9%) (7.6%) (100.0%) 1.99 124 74 37 26 21 282 2025 (44.1%) (26.3%) (13.2%) (9.1%) (7.3%) (100.0%) 1.99 Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
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Persons Per Owner Household Average 1-Person 2-Person 3-Person 4-Person 5-Person Total H.H. Size 2,864 5,022 1,928 1,657 1,186 12,657 2010 (22.6%) (39.7%) (15.2%) (13.1%) (9.4%) (100.0%) 2.47 Residential 3,116 5,206 1,982 1,365 1,110 12,779 2020 PMA (24.4%) (40.7%) (15.5%) (10.7%) (8.7%) (100.0%) 2.39 3,152 5,225 1,980 1,312 1,103 12,772 2025 (24.7%) (40.9%) (15.5%) (10.3%) (8.6%) (100.0%) 2.37 19 33 13 11 8 83 2010 (22.6%) (39.7%) (15.2%) (13.1%) (9.4%) (100.0%) 2.39 18 30 11 8 6 74 Retail PMA 2020 (24.4%) (40.7%) (15.5%) (10.7%) (8.7%) (100.0%) 2.37 18 30 11 8 6 73 2025 (24.7%) (40.9%) (15.5%) (10.3%) (8.6%) (100.0%) 2.33 Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
Within the Residential PMA, the majority of households consist of one- and two- person households in 2020. Two-person or less households account for 70.3% of renter-occupied households and 65.1% of owner-occupied households within the Residential PMA. Projections for 2025 indicate nominal changes among the composition of the groups for both the renter- and owner-occupied categories. With a large majority of households consisting of one- and two-person households in the Jackson area, future residential product will likely need to primarily consist of smaller unit types (two-bedrooms or smaller).
3. Income Trends
Because the subject site may include rental or for-sale residential product, we included both renter and owner household income data. The following table illustrates renter household income for 2010, 2020 and 2025 for the study areas:
Renter Households by Income $10,000 - $20,000 - $30,000 - $40,000 - $50,000 - $60,000 - <$10,000 $19,999 $29,999 $39,999 $49,999 $59,999 $99,999 $100,000+ 2,148 2,114 1,464 1,135 780 406 832 191 2010 (23.7%) (23.3%) (16.1%) (12.5%) (8.6%) (4.5%) (9.2%) (2.1%) 1,542 2,109 1,522 1,028 758 486 1,054 335 2020 Residential (17.5%) (23.9%) (17.2%) (11.6%) (8.6%) (5.5%) (11.9%) (3.8%) PMA 1,336 1,973 1,507 1,053 837 566 1,250 320 2025 (15.1%) (22.3%) (17.0%) (11.9%) (9.5%) (6.4%) (14.1%) (3.6%) Change -207 -136 -15 25 79 80 196 -15 2020-2025 (-13.4%) (-6.5%) (-1.0%) (2.4%) (10.4%) (16.4%) (18.6%) (-4.4%) 137 83 17 9 10 3 6 1 2010 (51.4%) (31.3%) (6.5%) (3.2%) (3.8%) (1.2%) (2.4%) (0.3%) 82 87 34 17 8 9 17 1 2020 (32.1%) (34.0%) (13.5%) (6.5%) (3.2%) (3.5%) (6.8%) (0.3%) Retail PMA 91 93 37 18 10 11 21 1 2025 (32.3%) (33.1%) (13.2%) (6.4%) (3.6%) (3.8%) (7.3%) (0.3%) Change 9 6 3 1 2 2 3 0 2020-2025 (10.9%) (7.2%) (8.0%) (8.6%) (21.9%) (19.6%) (19.0%) (14.1%) Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
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Within the Residential PMA in 2020, 58.6% of all renter households earned less than $30,000 annually. Projections for 2025 indicate that these lower income groups are expected to decrease, most notably the portion earning less than $10,000 annually, which is expected to see a 13.4% decrease. The greatest growth between 2020 and 2025 is projected to occur among renter households earning between $60,000 and $99,999. This group is expected to witness an increase of 18.6% within the Residential PMA. Based on this data and the projected trends, it is likely that future housing will need to account for the growth in higher income renter households, though the large base of low-income renter households suggest that housing that is affordable will remain important for some time.
The following table illustrates owner household income for 2010, 2020 and 2025 for the study areas:
Owner Households by Income $10,000 - $20,000 - $30,000 - $40,000 - $50,000 - $60,000 - <$10,000 $19,999 $29,999 $39,999 $49,999 $59,999 $99,999 $100,000+ 895 1,448 1,647 1,607 1,616 1,188 2,925 1,330 2010 (7.1%) (11.4%) (13.0%) (12.7%) (12.8%) (9.4%) (23.1%) (10.5%) 732 1,298 1,427 1,358 1,248 1,205 3,234 2,278 2020 Residential (5.7%) (10.2%) (11.2%) (10.6%) (9.8%) (9.4%) (25.3%) (17.8%) PMA 642 1,068 1,203 1,303 1,246 1,242 3,490 2,578 2025 (5.0%) (8.4%) (9.4%) (10.2%) (9.8%) (9.7%) (27.3%) (20.2%) Change -89 -230 -224 -55 -2 37 256 300 2020-2025 (-12.2%) (-17.7%) (-15.7%) (-4.0%) (-0.2%) (3.1%) (7.9%) (13.2%) 24 27 8 5 8 3 7 1 2010 (29.3%) (32.3%) (9.4%) (6.6%) (9.5%) (3.3%) (8.1%) (1.5%) 13 19 11 7 4 6 13 1 2020 (17.7%) (25.9%) (14.3%) (10.0%) (5.1%) (8.1%) (17.3%) (1.6%) Retail PMA 15 18 10 7 4 6 12 1 2025 (20.6%) (24.3%) (13.3%) (9.5%) (5.4%) (8.5%) (17.0%) (1.5%) Change 2 -1 -1 0 0 0 0 0 2020-2025 (15.8%) (-6.5%) (-7.2%) (-5.8%) (5.2%) (3.8%) (-2.2%) (-9.5%) Source: 2000; 2010 Census; ESRI; Urban Decision Group; Bowen National Research
Owner households by income for the Residential PMA were primarily concentrated among households earning $50,000 or higher in 2020. This group accounts for 52.5% of all owner households within the Residential PMA. In addition, it is projected that this household income group will increase by the year 2025. Most notably, owners with an annual income of $100,000 or higher are expected to increase by 300 households, or by 13.2%, followed by owners with an annual income of $60,000 to $99,999, which projects an increase of 256 (7.9%) households. The increase within these higher income households, suggest a growing demand for higher end for-sale housing product.
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4. Demographic Summary & Forecast
Within both the Residential PMA and smaller Retail PMA, the trend of declining populations and households over the past two decades appears to be stabilizing to some degree based on the current projections for 2025. There appear to be two significant demographic changes projected to occur by 2025 with regards to residential housing. First, despite a projected overall population decrease of residents over the next five years, the age group of 65 and older is expected to experience a notable population increase through 2025. Second, income levels for both renter- and owner-occupied households are expected to increase substantially in the higher income brackets while the lowest income brackets will witness the most reduction. This indicates a potential increase in demand for product that will serve higher income households and senior households (ages 65 and older) within the market, for both renter- and owner-occupied housing types. It is also projected over the next few years that the Residential PMA will experience notable growth among renter households earning between $30,000 and $60,000 annually, leading to a likely growing need for workforce rental housing units. Lastly, the distribution of households by size is not expected to change significantly over the next few years. One- and two-person households comprise the majority of households, which will lead to a likely need for smaller unit types (studio, one-bedroom and two-bedroom).
I. ECONOMICS
1. Labor Force Profile
The labor force within the Jackson Site PMA is based primarily in three sectors, namely, Health Care & Social Assistance (27.2%), Retail Trade (12.3%) and Utilities (11.7%). These three sectors collectively account for 51.2% of the workforce, or 19,990 employees. Employment in the Jackson Site PMA, as of 2020, was distributed as follows.
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NAICS Group Establishments Percent Employees Percent E.P.E. Agriculture, Forestry, Fishing & Hunting 0 0.0% 0 0.0% 0.0 Mining 0 0.0% 0 0.0% 0.0 Utilities 4 0.2% 4,558 11.7% 1139.5 Construction 104 4.3% 1,051 2.7% 10.1 Manufacturing 137 5.7% 3,556 9.1% 26.0 Wholesale Trade 88 3.7% 1,604 4.1% 18.2 Retail Trade 382 15.9% 4,802 12.3% 12.6 Transportation & Warehousing 26 1.1% 362 0.9% 13.9 Information 34 1.4% 226 0.6% 6.6 Finance & Insurance 123 5.1% 1,160 3.0% 9.4 Real Estate & Rental & Leasing 89 3.7% 467 1.2% 5.2 Professional, Scientific & Technical Services 191 8.0% 1,329 3.4% 7.0 Management of Companies & Enterprises 3 0.1% 44 0.1% 14.7 Administrative, Support, Waste Management & Remediation Services 72 3.0% 663 1.7% 9.2 Educational Services 41 1.7% 1,106 2.8% 27.0 Health Care & Social Assistance 372 15.5% 10,630 27.2% 28.6 Arts, Entertainment & Recreation 41 1.7% 412 1.1% 10.0 Accommodation & Food Services 156 6.5% 2,612 6.7% 16.7 Other Services (Except Public Administration) 351 14.6% 2,071 5.3% 5.9 Public Administration 103 4.3% 2,443 6.2% 23.7 Nonclassifiable 82 3.4% 26 0.1% 0.3 Total 2,399 100.0% 39,122 100.0% 16.3 Source: 2010 Census; ESRI; Urban Decision Group; Bowen National Research E.P.E. - Average Employees Per Establishment Note: Since this survey is conducted of establishments and not of residents, some employees may not live within the Site PMA. These employees, however, are included in our labor force calculations because their places of employment are located within the Site PMA.
Typical wages by job category for the Jackson Metropolitan Statistical Area (MSA) are compared with those of Michigan in the following table:
Typical Wage by Occupation Type Occupation Type Jackson MSA Michigan Management Occupations $108,890 $114,840 Business and Financial Occupations $70,340 $72,740 Computer and Mathematical Occupations $76,240 $80,020 Architecture and Engineering Occupations $81,950 $86,320 Community and Social Service Occupations $50,870 $48,530 Art, Design, Entertainment and Sports Medicine Occupations $43,570 $52,910 Healthcare Practitioners and Technical Occupations $89,790 $80,830 Healthcare Support Occupations $31,570 $30,750 Protective Service Occupations $52,180 $45,420 Food Preparation and Serving Related Occupations $25,570 $25,840 Building and Grounds Cleaning and Maintenance Occupations $29,730 $29,850 Personal Care and Service Occupations $28,740 $29,450 Sales and Related Occupations $39,450 $41,910 Office and Administrative Support Occupations $37,990 $39,620 Construction and Extraction Occupations $47,740 $52,920 Installation, Maintenance and Repair Occupations $47,840 $49,230 Production Occupations $40,820 $40,790 Transportation and Moving Occupations $34,680 $37,260 Source: U.S. Department of Labor, Bureau of Statistics
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Blue-collar annual salaries generally range from $25,570 to $52,180 within the Jackson MSA. White-collar jobs, such as those related to professional positions, management and medicine, have salaries generally ranging from $43,570 to $108,890. It is important to note that most occupational types within the Jackson MSA have typical wages that are comparable to Michigan's typical wages. However, two occupations of note are Healthcare Practitioners and Protective Services which exceed the state average salaries by 11.0% and 14.8%, respectively, and potentially indicate a high spending capacity among persons with these occupations. We consider overall household income data in our demand estimates.
2. Employment Trends
The following tables were generated from the U.S. Department of Labor, Bureau of Labor Statistics and reflect employment trends of the county in which the site is located.
The following illustrates the total employment base for Jackson County, Michigan and the United States.
Total Employment Jackson County Michigan United States Total Percent Total Percent Total Percent Year Number Change Number Change Number Change 2010 65,564 - 4,194,041 - 140,469,139 - 2011 65,424 -0.2% 4,198,349 0.1% 141,791,255 0.9% 2012 65,453 0.0% 4,246,658 1.2% 143,621,634 1.3% 2013 66,139 1.0% 4,308,030 1.4% 145,017,562 1.0% 2014 68,136 3.0% 4,417,024 2.5% 147,313,048 1.6% 2015 69,100 1.4% 4,500,448 1.9% 149,500,941 1.5% 2016 70,781 2.4% 4,605,820 2.3% 151,887,366 1.6% 2017 70,836 0.1% 4,658,713 1.1% 154,160,937 1.5% 2018 71,501 0.9% 4,705,360 1.0% 156,081,212 1.2% 2019 71,335 -0.2% 4,735,826 0.6% 158,102,439 1.3% 2020* 67,411 -5.5% 4,386,511 -7.4% 147,888,051 -6.5% Source: Department of Labor; Bureau of Labor Statistics *Through November
Jackson County
73,000 72,000 71,000 70,000 69,000 68,000 67,000 66,000 65,000 64,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Total employment reflects the number of employed persons who live within the county. Excluding 2020, the employment base within Jackson County has remained relatively stable over the preceding three years. The decline in total employment in 2020 is primarily due to COVID-19 factors.
Unemployment rates for Jackson County, Michigan and the United States are illustrated as follows:
Unemployment Rate Year Jackson County Michigan United States 2010 12.2% 12.6% 9.7% 2011 9.9% 10.4% 9.0% 2012 8.5% 9.1% 8.1% 2013 8.3% 8.8% 7.4% 2014 6.7% 7.3% 6.2% 2015 5.4% 5.4% 5.3% 2016 4.8% 5.0% 4.9% 2017 4.6% 4.6% 4.4% 2018 4.0% 4.2% 3.9% 2019 3.8% 4.1% 3.7% 2020* 9.7% 10.0% 8.7% Source: Department of Labor, Bureau of Labor Statistics *Through November
Unemployment Rate County State U.S.
14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Since 2010, the unemployment rate in Jackson County has ranged between 3.8% and 12.2%. Prior to the 2020 COVID-19 related increase, the unemployment rate for Jackson County was 3.8% for 2019, which was the lowest rate over the past decade and registered below the state average for the same year by 0.3 of a percentage point.
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Because of the impact that the COVID-19 pandemic had on the local and national economies, we evaluated the Jackson County unemployment rate over the past 18 months. The following table illustrates the monthly unemployment rate in Jackson County for the most recent 18-month period for which data is currently available.
Jackson County Monthly Unemployment Rate June 2019 to November 2020 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 4.1% 4.9% 3.8% 3.1% 3.1% 3.0% 3.2% 3.9% 3.4% 3.4% 24.6% 20.2% 14.4% 10.1% 8.8% 7.7% 5.2% 4.6%
As indicated by the previous graph, the unemployment rate for Jackson County remained at or below 4.0% for several months preceding the COVID-19 related effects starting in April 2020. Following the initial spike, the unemployment trend has gradually returned to near pre-COVID-19 levels to approximately 4.6% (November 2020).
Based on a cursory review of local economic news and announcements and our interviews with various local stakeholders, there appear to be numerous private sector (e.g., new residential and commercial development, business expansions, etc.) and public sector (e.g., infrastructure) investments and developments recently completed, planned or underway that appears to indicate the Jackson area is poised for continued economic growth for the foreseeable future.
3. Employee Mobility Patterns
Because a notable portion of the support for any new residential or retail product developed at the subject site is expected to originate from outside the immediate area, including support from outside Jackson County, it is important to understand the commuting patterns and drive times of local employees. Based on the American Community Survey (2014-2018), the following is a distribution of commuting patterns for Site PMA workers age 16 and over.
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Commuting Mode
Total
Home
Walked
Carpooled
Worked at
Drove Alone
Other Means Public TransitPublic Number 17,438 2,270 203 739 323 598 21,571 Residential PMA Percent 80.8% 10.5% 0.9% 3.4% 1.5% 2.8% 100.0% Number 108 16 7 16 2 1 150 Retail PMA Percent 72.0% 10.7% 4.7% 10.7% 1.3% 0.7% 100.0% Source: U.S. Census Bureau, 2014-2018 American Community Survey
For the Residential PMA, nearly 81% of all workers drove alone, 10.5% carpooled and only 0.9% used public transportation. The subject site is within 0.4 mile from the Jackson Area Transit Authority transfer center, which will add to the appeal of the subject project. While small in number, 10.7% of employees currently living in the Retail PMA (downtown) walked to work, indicating that residential units developed at the subject site will likely draw a notable amount of support from households working downtown. As such, it is important to quantify the number of persons commuting into the county for work on a daily basis.
The following summarizes 2018 inflow/outflow of workers and residents of Jackson County.
As the preceding map and table illustrate, more than 25,000 people commute into Jackson County daily. The commuters represent nearly 43.0% of all persons working in the county. These numbers illustrate a potential opportunity to attract new residents to the county that could support residential product developed at the subject site and provide for retail offered at the site.
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Typical commuting times for the Site PMA residents is shown as follows:
Commuting Time
Minutes
Total
Minutes Minutes
60 or More
Less Less 15 Than
15 29to Minutes 30 44to Minutes 45 59to Worked at Home Number 10,092 6,364 2,221 1,274 1,020 598 21,569 Residential PMA Percent 46.8% 29.5% 10.3% 5.9% 4.7% 2.8% 100.0% Number 73 41 15 4 15 1 149 Retail PMA Percent 49.0% 27.5% 10.1% 2.7% 10.1% 0.7% 100.0% Source: U.S. Census Bureau, 2014-2018 American Community Survey
The largest share of area commuters currently living in the Residential PMA have typical travel times to work of less than 15 minutes (46.8%), followed by drive times of 15 to 29 minutes (29.5%). Commuters traveling in excess of 60 minutes account for just 4.7% and likely represent residents at most risk of moving outside the county in order to reduce commute time to work.
As the following illustrates, in 2018, over 12,000 people working within Jackson County commute more than 50 miles for work on a daily basis. While not all of these commuters would consider moving to Jackson County, many of these commuters with long commutes would find residential units at the subject site a viable housing option. We have considered commuter support in our housing demand estimates.
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J. RENTAL HOUSING SUPPLY & DEMAND
This section addresses rental housing within the Residential PMA. Because the subject site may include unrestricted market-rate units and/or affordable workforce rental housing, our sample survey includes market-rate rental housing and properties that are income-restricted (essentially serving households with income of up to 80% of Area Median Household Income).
1. Rental Housing Survey
We identified and telephone surveyed 18 multifamily rental housing projects containing a total of 2,084 units within the Residential PMA. This survey was conducted to establish the overall strength of the rental market and to identify those properties most comparable to product that may be developed at the subject site. These rentals have a combined occupancy rate of 94.7%, which is a good rate for market-rate rental housing.
Affordability Projects Total Vacant Occupan Project Type Level Surveyed Units Units cy Rate Market-rate Unrestricted 9 1,331 107 92.0% Market-rate/Tax Credit Unrestricted/ < 80% AMHI 2 262 2 99.2% Tax Credit < 80% AMHI 4 413 1 99.8% Tax Credit/Government-Subsidized 50% AMHI 3 78 0 100.0% Total 18 2,084 110 94.7% AMHI – Area Median Household Income
While our survey did not include all rental alternatives offered in the market and attempted to focus on some of the larger and more modern multifamily rentals, this survey does demonstrate the strength of demand for multifamily apartments. There appears to be minimal availability among properties serving low-income households earning up to 80% of Area Median Household Income. A detailed analysis of the most comparable properties in the market is conducted later in this section.
The following tables summarize the non-subsidized (market-rate and Tax Credit) units surveyed by bedrooms and bathrooms:
Market-rate Median Bedroom Baths Units Distribution Vacancy % Vacant Collected Rent Studio 1.0 31 2.2% 1 3.2% $659 One-Bedroom 1.0 502 35.9% 47 9.4% $774 Two-Bedroom 1.0 386 27.6% 25 6.5% $699 Two-Bedroom 1.5 144 10.3% 3 2.1% $885 Two-Bedroom 2.0 273 19.5% 29 10.6% $1,019 Three-Bedroom 1.5 32 2.3% 0 0.0% $970 Three-Bedroom 2.0 30 2.1% 4 13.3% $1,046 Total Market-rate 1,398 100.0% 109 7.8% -
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Tax Credit, Non-Subsidized Median Bedroom Baths Units Distribution Vacancy % Vacant Collected Rent One-Bedroom 1.0 215 33.2% 0 0.0% $651 Two-Bedroom 1.0 227 35.0% 0 0.0% $775 Two-Bedroom 2.0 66 10.2% 0 0.0% $789 Three-Bedroom 1.75 47 7.3% 0 0.0% $867 Three-Bedroom 2.0 93 14.4% 1 1.1% $906 Total Tax Credit 648 100.0% 1 0.2% -
The market-rate units are 92.2% occupied and the Tax Credit units are 99.8% occupied. Typically, healthy and well-balanced rental housing markets have overall occupancy levels generally between 94% and 96%. As such, the overall market-rate occupancy rate of 92.2% is slightly low. However, it should be pointed out that 45 (41.3%) of the 109 total vacant market-rate units identified in the market are within a single project: The 200 (Map ID 1). This 86-unit market- rate project recently opened and is in its initial lease-up phase. When this project is excluded, the overall market-rate occupancy rate increases to 95.1%. This is a good occupancy level and a demonstration of the high level of demand for market-rate product in the Residential PMA. The 99.8% overall occupancy rate among the surveyed Tax Credit projects, which serve households with incomes of up to 80% of Area Median Household Income (approximately up to $53,000), indicates very limited available housing that is affordable to lower income households.
A complete telephone survey of all conventional apartments we surveyed is included in Addendum A: Telephone Survey of Conventional Rentals.
2. Survey of Comparable Apartment Properties
We identified and surveyed six market-rate properties (two in downtown) and five Tax Credit projects (two in downtown) within the Residential PMA. While these projects may differ from the rental product that could be built at the subject site, these properties were selected based on their relatively modern construction, bedroom types offered, amenity packages and other design characteristics that are believed to be similar to the potential project. Additionally, each of these projects is located within 4.0 miles of the subject, most have a quality rating of B or better, and most were built or converted to apartments after 2000. As such, these projects serve as a good baseline of comparison for potential product built at the subject site.
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The selected comparable market-rate and Tax Credit properties are summarized as follows:
Market-Rate Comparables Map Total Quality Occupancy Distance I.D. Project Name Year Built Units Rating Rate to Site 1 The 200 2020 86 A 47.7% 0.2 Miles 5 Lofts on Louis 2018 30 A 100.0% 0.3 Miles 904 Canterbury House 2006 36* C+ 94.4% 3.0 Miles 905 Cascade Ridge 1991 215 B 100.0% 3.3 Miles 910 Maple Ridge West 2004 31* B+ 100.0% 2.7 Miles 912 Victoria Pointe 2001 53 B+ 100.0% 2.2 Miles *Market-rate units only 900 series Map IDs are located outside downtown Jackson
Tax Credit Comparables Map Year Built/ Total Quality Occupancy Distance I.D. Project Name Renovated Units Rating Rate to Site 2 Albert Kahn Workforce 1927 / 2021 62** B+ 0.0% 0.2 Miles 4 Francis Senior Lofts 2020 40* B+ 100.0% 0.5 Miles 904 Canterbury House 2006 172* C+ 100.0% 3.0 Miles 908 Heritage Place 2003 88 B+ 100.0% 2.9 Miles 910 Maple Ridge West 2004 23* B+ 100.0% 2.7 Miles *Tax Credit units only **Units under construction 900 series Map IDs are located outside downtown Jackson
The six selected market-rate projects have a combined total of 451 units with an overall occupancy rate of 89.6%. As noted earlier in this report, the vacant units at The 200 (Map ID 1) are attributed to the fact this project is in its initial lease- up. Of the 365 remaining comparable market-rate units, only two (0.5%) are vacant. This is reflective of a very high level of demand for more modern market- rate product. The four established LIHTC projects have a combined occupancy rate of 100.0%. This is an extremely high occupancy rate and a reflection of the pent-up demand for this type of affordable rental product. The limited availability of both market-rate and affordable rental alternatives may represent a development opportunity for the subject site.
A map delineating the location of all surveyed apartment properties, including the comparable properties, is on the following page.
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The collected (tenant-paid) rents for the comparable projects as well as their rents per-square-foot, unit mixes and vacancies by bedroom are listed in the following tables.
Market-Rate Comparables Collected Rent/Per Sq. Ft. (Number of Units/Vacancies) Map One- Two- Three- I.D. Project Name Studio Br. Br. Br. $795-$870/ $875-$1,015/ $1,285-$1,650/ 1 The 200 $1.71-$1.88 (9/1) $1.35-$1.49 (25/16) $1.42-$1.54 (52/28) - $880-$929/ $1,271-$1,329/ 5 Lofts on Louis - $1.16-$1.17 (12/0) $1.11-$1.16 (18/0) - $750/ $959/ $1,046/ 904 Canterbury House - $0.95 (11/0) $1.02 (14/1) $0.87 (11/1) $775-$835/ $969-$1,019/ 905 Cascade Ridge - $1.01-$1.02 (36/0) $0.93-$0.95 (179/0) - Maple Ridge $734 $880 910 West - /$1.13 (1/0) /$0.94-$0.94 (30/0) - $810-$840/ $940-$970/ $1,025-$1,050/ 912 Victoria Pointe - $1.05-$1.13 (12/0) $0.88-$0.93 (28/0) $0.89-$0.90 (13/0) $795-$870/ $734-$1,015/ $880-$1,650/ $1,025-$1,050/ Rent Range $1.71-$1.88 $0.95-$1.49 $0.88-$1.54 $0.87-$0.90 Median Rent $833/$1.80 $838/$1.13 $995/$0.99 $1,046/$0.89 900 series Map IDs are located outside downtown Jackson
Tax Credit Comparables Collected Rent/Per Sq. Ft. - Percent of AHMI (Number of Units/Vacancies) Map One- Two- Three- I.D. Project Name Br. Br. Br. $298/$0.43-30% (15*/0) $650/$0.94-60% (24*/0) $795/$0.48-60% (8*/0) 2 Albert Kahn Workforce $755/$1.10-80% (6*/0) $900/$0.55-80% (9*/0) - $272/$0.42-30% (5/0) $320/$0.37-30% (7/0) 4 Francis Senior Lofts $550/$0.85-60% (8/0) $658/$0.77-60% (20/0) - 904 Canterbury House $661/$0.83-60% (53/0) $789/$0.84-60% (66/0) $906/$0.76-60% (53/0) $586/$0.94-45% (25/0) $703/$0.87-45% (6/0) $651/$1.04-50% (35/0) $781/$0.97-50% (9/0) 908 Heritage Place $781/$1.25-60% (10/0) $937/$1.16-60% (3/0) - $867/$0.93-60% (18/0) 910 Maple Ridge West $725/$1.12-60% (2/0) $845/$0.90-60% (3/0) - $272-$298/$0.42-$0.43-30% $320/$0.37-30% $586/$0.94-45% $703/$0.87-45% $651/$1.04-50% $781/$0.97-50% $550-$781/$0.85-$1.25-60% $658-$937/$0.48-$1.16-60% Rent Range $755/$1.10-80% $900/$0.55-80% $906/$0.76-60% $285/$0.43-30% $320/$0.37-30% $586/$0.94-45% $703/$0.87-45% $651/$1.04-50% $781/$0.97-50% $661/$0.94-60% $820/$0.87-60% Median Rent $755/$1.10-80% $900/$0.55-80% $906/$0.76-60% *Units under construction 900 series Map IDs are located outside downtown Jackson
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While a variety of factors will ultimately affect the actual rents that can be achieved at the subject site, the median base rents should be used as a baseline for beginning to develop a project concept and financial model for apartment rentals at the subject site. The highest rents per-square-foot should be used as an additional guide to structure potential rents at the site should the subject development include higher end product, larger units, additional bathrooms and a comprehensive amenity package. Various design considerations, such as square footages, number of bathrooms, and amenity packages of the comparable properties are discussed below.
The unit sizes (square footage) included in each of the comparable properties are listed in the following tables.
Market-Rate Comparables Square Footage Map One- Two- Three- I.D. Project Name Studio Br. Br. Br. 1 The 200 464 588 - 750 837 - 1,165 - 5 Lofts on Louis - 750 - 800 1,100 - 1,200 - 904 Canterbury House - 792 941 1,200 905 Cascade Ridge - 765 - 820 1,025 - 1,100 - 910 Maple Ridge West - 648 934 - 939 - 912 Victoria Pointe - 720 - 800 1,008 - 1,100 1,154 - 1,162 Square Footage Range 464 588 – 820 837 – 1,200 1,154 – 1,200 Median Square Footage 464 758 1,025 1,162 900 series Map IDs are located outside downtown Jackson
Tax Credit Comparables Square Footage Map One- Two- Three- I.D. Project Name Br. Br. Br. 2 Albert Kahn Workforce 688 1,647 - 4 Francis Senior Lofts 646 860 - 904 Canterbury House 792 941 1,200 908 Heritage Place 625 806 - 910 Maple Ridge West 648 934 - Square Footage Range 625 – 792 806 – 1,647 1,200 Median Square Footage 648 934 1,200 900 series Map IDs are located outside downtown Jackson
A variety of factors affect the unit sizes (square footages) that would be required for a project to be marketable. While unit pricing would impact what a renter would expect for unit sizes, target market (senior vs. family), quality and finishes, and the amenity package that is included also contribute to the size requirements of a unit. It is suggested that median square footages at the comparable properties be used as a general guide for unit sizes, but that the developer consider the unit sizes of the existing product they believe is most comparable to what is ultimately built at the subject site.
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The number of bathrooms included in each of the comparable properties are listed in the following tables.
Market-Rate Comparables Number of Baths Map One- Two- Three- I.D. Project Name Studio Br. Br. Br. 1 The 200 1.0 1.0 2.0 - 5 Lofts on Louis - 1.0 1.0 - 904 Canterbury House - 1.0 2.0 2.0 905 Cascade Ridge - 1.0 2.0 - 910 Maple Ridge West - 1.0 1.0 - 912 Victoria Pointe - 1.0 2.0 2.0 Bathroom Range 1.0 1.0 1.0 – 2.0 2.0 Median Bathrooms 1.0 1.0 2.0 2.0 900 series Map IDs are located outside downtown Jackson
Tax Credit Comparables Number of Baths Map One- Two- Three- I.D. Project Name Br. Br. Br. 2 Albert Kahn Workforce 1.0 1.0 - 4 Francis Senior Lofts 1.0 1.0 - 904 Canterbury House 1.0 2.0 2.0 908 Heritage Place 1.0 1.0 - 910 Maple Ridge West 1.0 1.0 - Bathroom Range 1.0 1.0 – 2.0 2.0 Median Bathrooms 1.0 1.0 2.0 900 series Map IDs are located outside downtown Jackson
Among the market-rate supply, the studio and one-bedroom units generally include one full bathroom, while the two- and three-bedroom units generally include two full bathrooms. Among the Tax Credit units, both the one- and two- bedroom units include one full bathroom while the three-bedroom units include two full bathrooms. The rents charged and the targeted tenants will dictate the unit design considerations, such as square footages and number of bathrooms for units at the subject site.
The following tables compare the appliances and the unit and project amenities of the comparable properties in the market.
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0 Comparable Property Amenities— Jackson, Michigan Survey Date: January 2021 Market-Rate Unit Amenities by Map ID Survey Date: January 2021 1 5 904 905 910 912 Dishwasher X X X X X X Disposal X X X X X X Icemaker X X X Microwave X X X Range X X X X X X
Appliances Refrigerator X X X X X X No Appliances AC-Central X X X X X X AC-Other Balcony X X X X Deck / Patio X X X X Basement Ceiling Fan S X Controlled Access X X X E-Call System X Fireplace S Furnished
Unit Amenities Security System Sunroom W/D Hookup X X W/D X X O X X X Walk-In Closet S X S X Window Treatments X X X X X X Carpet X X X X X Ceramic Tile X Composite (VCT)(LVT) Hardwood Finished Concrete Flooring Vinyl X X X X X Wood Laminate / Plank X X Premium Appliances X X Premium Countertops X X Premium Cabinetry Premium Fixtures X X High Ceilings X
Upgraded Vaulted Ceilings Crown Molding Oversized Windows X X Attached Garage Detached Garage O X Street Parking Surface Lot O X X X X X Carport O X Parking Property Parking Garage Podium Parking No Provided Parking
1 2 3 4 5 6
- Senior Property
X = All Units, S = Some Units, O = Optional with Fee ** Details in Comparable Property Profile Report Continued on Next Page Bowen National Research II-31 Comparable Property Amenities— Jackson, Michigan Survey Date: January 2021 6 Market-Rate Property Amenities by Map ID 1 5 904 905 910 912 Bike Racks / Storage X X Business Center ** X X X Car Care ** X Common Patio Community Garden Activity / Craft Room Chapel Clubhouse X X Conference Room X Community Kitchen Community Room X X Dining Room - Private Dining Room - Public
Community Space Rooftop Lounge X Study Lounge TV Lounge X Concierge Service ** X Convenience Amenities ** X Courtyard Covered Outdoor Area ** Elevator X X X Laundry Room X Meals On-Site Management X X X X X X Pet Care ** X Basketball Bocce Ball Firepit Fitness Center X X X X Grill X Game Room - Billiards X Hiking - Walking Trail Hot Tub Library X Media Room / Theater Picnic Table / Area X Playground X Recreation Putting Green Racquetball Shuffleboard Sports Court Swimming Pool - Indoor Swimming Pool - Outdoor X X Tennis X Volleyball CCTV X X Courtesy Officer Gated Community Gated Parking Security Police Substation Social Services ** Storage - Extra O Water Feature X WiFi X X X 1 - Senior Property X = All Units, S = Some Units, O = Optional with Fee ** Details in Comparable Property Profile Report Bowen National Research II-32 0 Comparable Property Amenities— Jackson, Michigan Survey Date: January 2021 Tax Credit Unit Amenities by Map ID Survey Date: January 2021 2 4 904 908 910 Dishwasher X X X X X Disposal X X X X X Icemaker Microwave X Range X X X X X
Appliances Refrigerator X X X X X No Appliances AC-Central X X X X X AC-Other Balcony X X Deck / Patio X X Basement Ceiling Fan X S Controlled Access X X X X E-Call System X Fireplace Furnished
Unit Amenities Security System Sunroom W/D Hookup X X W/D O X Walk-In Closet X S Window Treatments X X X X X Carpet X X X X Ceramic Tile X Composite (VCT)(LVT) Hardwood Finished Concrete Flooring Vinyl X X X X Wood Laminate / Plank X Premium Appliances Premium Countertops X Premium Cabinetry X Premium Fixtures High Ceilings X
Upgraded Vaulted Ceilings Crown Molding Oversized Windows Attached Garage Detached Garage O Street Parking Surface Lot X X X X X Carport O Parking Property Parking Garage Podium Parking No Provided Parking
1 2 3 4 5
- Senior Property
X = All Units, S = Some Units, O = Optional with Fee ** Details in Comparable Property Profile Report Continued on Next Page Bowen National Research II-33 Comparable Property Amenities— Jackson, Michigan Survey Date: January 2021 5 Tax Credit Property Amenities by Map ID 2 4 904 908 910 Bike Racks / Storage Business Center ** X X X X Car Care ** Common Patio X X Community Garden Activity / Craft Room Chapel Clubhouse X Conference Room X Community Kitchen Community Room X X X X Dining Room - Private Dining Room - Public
Community Space Rooftop Lounge Study Lounge TV Lounge X Concierge Service ** X Convenience Amenities ** X X Courtyard Covered Outdoor Area ** Elevator X X X X Laundry Room X X X X Meals On-Site Management X X X X X Pet Care ** X X Basketball Bocce Ball Firepit Fitness Center X X X X X Grill X X Game Room - Billiards X Hiking - Walking Trail Hot Tub Library X Media Room / Theater Picnic Table / Area X X X Playground X Recreation Putting Green Racquetball Shuffleboard Sports Court Swimming Pool - Indoor Swimming Pool - Outdoor X Tennis Volleyball CCTV X Courtesy Officer Gated Community Gated Parking Security Police Substation Social Services ** X Storage - Extra O Water Feature WiFi X X 1 - Senior Property X = All Units, S = Some Units, O = Optional with Fee ** Details in Comparable Property Profile Report Bowen National Research II-34 The most common unit and project amenities offered at the comparable rental properties include:
Market-Rate
• Dishwasher • Washer/Dryer Appliances • Garbage Disposal • Surface Parking • Range • Business Center • Refrigerator w/Icemaker • Community Room • Central AC • Elevator • Controlled Access • On-Site Management • Window Treatments • Fitness Center • Carpet/Vinyl/Wood Laminate • WiFi
Tax Credit
• Dishwasher • Surface Parking • Garbage Disposal • Business Center • Range • Community Room • Refrigerator • Elevator • Central AC • Laundry Room • Controlled Access • On-Site Management • Window Treatments • Fitness Center • Carpet/Vinyl • Picnic Table/Area
These amenities should be used as a guideline for potential amenities at the subject site. The price point that the developer of the site will ultimately attempt to achieve will affect the amenities package that will need to be offered at the subject site.
3. Non-Conventional Rentals
Non-conventional rentals are considered rental units typically consisting of single-family homes, duplexes, units over store fronts, mobile homes, etc. For the purposes of this particular analysis, we have assumed that rental properties consisting of one or two units are non-conventional rentals.
Bowen National Research identified 38 non-conventional rentals (one in the downtown and the rest within the Residential Primary Market Area) that were listed as available for rent. While these rentals do not represent all non- conventional rentals, these units are representative of common characteristics of the various non-conventional rental alternatives available in the market. As a result, these rentals provide a good baseline to compare the rental rates, number of bedrooms, number of bathrooms, and other features of non-conventional rentals. It is worth pointing out that when these 38 units are compared with all smaller rental properties in the market, the overall occupancy rate of non-
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conventional rental housing is over 98%. This is a high occupancy rate and indicates a high level of demand for such product.
The table below summarizes the available non-conventional rentals identified within the Jackson Residential PMA.
Available Non-Conventional Rentals Average Average Average Rent Number Average Square Rent Average Per Square Bedroom Type Units of Baths Year Built Feet Range Rent Foot One-Bedroom 6 1.0 1926 902 $450 - $650 $526.67 $0.71 Two-Bedroom 16 1.1 1913 1,055 $595 - $1,200 $786.19 $0.90 Three-Bedroom 6 1.3 1929 836 $715 - $1,025 $872.50 $0.86 Four-Bedroom 4 1.3 1905 1,362 $850 - $1,200 $987.50 $0.77 Five-Bedroom 6 1.0 1926 902 $450 - $650 $526.67 $0.71
The identified available non-conventional rentals primarily consist of two- bedroom units. Rent for this bedroom type ranges from $595 to $1,200 and an average rent of $786.19 ($0.90 per square foot).
The table below illustrates the distribution of identified available non- conventional rentals in the market.
Non-Conventional Rentals Number Percent Rent of Units of Units Less than $500 4 12.5% $500 to $999 23 71.9% $1,000 to $1,499 5 15.6% $1,500 to $1,999 0 0.0% $2,000 and Higher 0 0.0% Total 32 100.0% Median Rent $750 -
The rents of the available non-conventional rentals are generally comparable to the more modern market-rate rentals surveyed in the market, but higher than most of the rents at the surveyed Tax Credit projects. Market-rate product at the subject site could likely get a premium over most of the non-conventional rentals.
A map of the available non-conventional rentals identified in the market is included in Addendum B of this report.
4. Planned Rental Housing Development
Despite multiple attempts to contact local planning and building officials, no response was received. However, extensive online research revealed there are two rental housing projects planned within the Site PMA. These planned developments are summarized as follows.
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• Albert Kahn Workforce Apartments is being developed by General Capital Group and involves new construction and adaptive-reuse. The 73-unit property is under construction at 214 South Jackson Street in Jackson. The one-bedroom units will be 586 square feet and have 15 units at 30% of AMHI with rent at $298; 24 units at 60% of AMHI with rent at $650; six units at 80% of AMHI with rent at $755; 11 units will be Section 8 Subsidized 811. The two-bedroom units will be 987 square feet and have eight units at a 60% of AMHI with rent at $795 and nine units at an 80% income restriction with rent at $900. Each unit will have granite countertops, premium cabinetry, dishwasher, refrigerator, microwave oven, garbage disposal, range, washer/dryer hookup with the option to rent washer/dryer, and high ceilings. The property will offer a business center, elevator, laundry facility, theater, picnic area, fitness center, playground, security cameras, extra storage, controlled access, Wi-Fi in common areas, and community lounges. The estimated completion date is March 2021.
• Commonwealth Development Corporation of America has proposed to develop a 53-unit development to be located at 318 and 326 West Michigan Avenue in Jackson. The property will offer one-, two-, and three-bedroom units for families at 30%, 60%, and 80% AMHI levels. Some amenities will include parking, community space, playground and possible first floor retail. No other details were available. Bowen National Research reached out to developer but did not get a response. It does not appear this project has received Tax Credits and, therefore, it is unknown if this project will move forward.
5. Rental Housing Demand Estimates
Following market analyst industry standards, we have estimated the base of potential support for the proposed subject project from income-eligible renter households to determine the total number of units that can be supported at the subject site. In addition to household growth, turnover from existing renter households and likely external market support, we accounted for units currently in the development pipeline in our demand estimates. While numerous factors contribute to the market share (capture rate) that a project can achieve, given that this is a preliminary report and that we likely did not identify all residential product in the development pipeline, we have used a conservative capture rate of 10%.
Since the development of new housing at the subject site could include a variety of financing options, product types and pricing structures, our estimates for the number of new residential units that can be supported consider a variety of income levels.
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While the pricing of the proposed subject units has yet to be established, we have used three price ranges and corresponding income requirements for both market- rate potential and affordable (Tax Credit/workforce) housing potential. For the market-rate units, we used the base rental rates of the more modern market-rate rental alternative within the subject market to establish the household income levels that can support such product. To establish the likely incomes required for affordable/Tax Credit rental housing, we used HUD’s published three-person household income limits for households at 80% of Area Median Household Income and base rents among the comparable Tax Credit projects (60% AMHI rents).
The following tables summarize the potential support for new market-rate and affordable rental units at the subject site.
Market-Rate Demand Component Demand by Base Gross Rent Base Collected Rents $800 $1,000 $1,200 Minimum Income Required* $32,000 $40,000 $48,000 Demand from New Renter Household Growth 72 68 55 + Turnover from Existing Renter Households 1,037 789 608 + External Market Support (10.0%) 123 95 74 - Competitive Pipeline Units -73 0 0 = Total Net Demand 1,159 952 737 x Capture Rate x 5% x 5% x 5% = Total Supportable Units 58 48 37 *Assumes management qualifies residents at a 30% rent-to-income ratio
Affordable/Tax Credit Demand Component Demand by Base Gross Rent Base Collected Rents $700 $800 $900 Income Range* $28,000-$47,840 $32,000-$47,840 $36,000-$47,840 Demand from New Renter Household Growth 84 82 72 + Turnover from Existing Renter Households 578 425 301 + External Market Support (10.0%) 74 63 41 - Competitive Pipeline Units -73 -73 -73 = Total Net Demand 663 497 341 x Capture Rate x 10% x 10% x 10% = Total Supportable Units 66 50 34 *Income limits based on rental rates at the area’s Tax Credit projects and maximum income limits at 80% of Area Median Household Income (3-person limit)
As the preceding illustrates, depending upon the base rent used, between 37 and 58 total market-rate units are potentially supportable at the subject site. Clearly, as base rents are increased by $200 increments, the support base decreases by about 20%. Demand for affordable rental product targeting households with incomes of up to 80% of Area Median Household Income ranges from 34 to 66 units, depending upon the base rent charged at the site. With base rent increases of just $100, demand diminishes significantly, with up to approximately 66 units supportable with a base rent of $700 being cut in half if the base rent is increased to $900. These estimates should be considered when configuring the size of the subject project.
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K. FOR-SALE HOUSING SUPPLY & DEMAND
This section of the report evaluates the local for-sale housing market, including both recent home sales and currently available product. Given that any for-sale product developed at the subject site will include condominium product, we have provided supplemental information and analysis of condominium sales activity. As part of our research, we collected housing information regarding prices, number of bedrooms and bathrooms, square footages, year built, and other property data. Sources for our data include the U.S. Census, local real estate agents, and online sources (e.g. Realtor.com, Zillow.com, etc.). This data is collected and analyzed to determine pertinent trends that may impact the feasibility of a new for-sale housing project at the subject site. Summary tables of the for-sale supply are presented in this section. A summary of some of the more modern condominium supply is included later in this section. This section concludes with for-sale housing demand estimates by various price points.
1. Introduction
Bowen National Research obtained historical home sales data for the previous seven months (July 2020 to January 2021) and a list of all housing units available for purchase within the Residential PMA as of January 2021. This data includes overall for-sale housing data as well as condominium data. While neither the sold or available residential units identified represent all housing product offered in the market, we believe they represent the majority of such product and are representative of market norms and expectations for housing product within the Residential PMA.
Sold/Currently Available For-Sale Housing Supply – Residential PMA Status Unit Median Price Sold* 508 $114,594 Available 155 $94,000 Sold/Currently Available For-Sale Condominium Supply – Residential PMA Status Condos Median Price Sold* 29 $185,000 Available 6 $177,450 *July 2020 to January 2021
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2. Recent Housing Sales Activity
Within the overall market, we identified and evaluated 537 individual residential units that were sold between July 2020 and January of 2021. Of these sales, 29 were condominium units. This section addresses the recent sales of area housing, providing insight as to sales activity by price, year built and bedroom type. It should be noted that some totals shown in the various tables in this section do not equal the totals shown in other tables due to missing data sets.
The distribution of homes (everything but condominiums) and condominiums sold by price point over the past seven months is illustrated in the table below.
Residential Sales by Price Homes Sale Price Number Sold Percent of Supply Up to $99,999 217 42.7% $100,000 to $149,999 159 31.3% $150,000 to $199,999 71 14.0% $200,000 to $249,999 31 6.1% $250,000 to $299,999 19 3.7% $300,000+ 11 2.2% Total 508 100.0% Condominiums Sale Price Number Sold Percent of Supply Up to $99,999 5 17.2% $100,000 to $149,999 9 31.0% $150,000 to $199,999 1 3.4% $200,000 to $249,999 5 17.2% $250,000 to $299,999 6 20.7% $300,000+ 3 10.3% Total 29 100.0% Source: Realtor.com & Zillow.com
Approximately 217 (43.0%) of the recent residential sales activity has occurred among product priced less than $100,000, while the next largest share of units were priced between $100,000 and $149,999. Just 30 (5.9%) of the units sold were priced above $250,000. Condominium sales represent a smaller sample size of the data with 29 total sales. Of the condominium sales, nine were priced between $100,000 and $149,999 and represent the largest group (31.0%). An additional nine condominiums sold at a price of $250,000 or more, which represents 31.0% of the total.
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The following table summarizes the number of homes overall and condominiums sold by year built within the Residential PMA.
Residential Sales by Year Built Homes Number Average Average Price Median Median Price Year Built Sold Beds/Baths Square Feet Range Sales Price per Sq. Ft. Before 1970 451 2.9 / 1.6 1,371 $500-$330,000 $105,894 $77.24 1970 to 1979 20 3.2 / 2.2 1,635 $47,900-$658,900 $179,250 $109.63 1980 to 1989 4 4.0 / 2.5 1,958 $47,790-$389,000 $211,500 $108.02 1990 to 1999 11 3.3 / 3.0 2,004 $102,000-$520,000 $219,900 $109.73 2000 to 2009 14 3.4 / 2.3 1,614 $90,000-$305,000 $182,500 $113.07 2010 to present 5 4.0 / 3.4 2,155 $225,750-$424,883 $269,000 $124.83 Total 505 3.0 / 1.7 1,417 $500-$658,900 $114,594 $80.87 Condominiums Number Average Average Price Median Median Price Year Built Sold Beds/Baths Square Feet Range Sales Price per Sq. Ft. Before 1970 5 2.0 / 1.3 1,408 $25,900-$337,726 $27,000 $19.18 1970 to 1979 1 1.0 / 1.0 643 $47,900 $47,900 $74.49 1980 to 1989 0 - - - - - 1990 to 1999 2 3.5 / 3.0 1,472 $274,900-$280,000 $277,450 $188.49 2000 to 2009 13 2.3 / 2.1 1,308 $125,000-$282,450 $137,500 $105.12 2010 to present 8 2.5 / 2.5 1,297 $134,000-$349,947 $275,975 $212.78 Total 29 2.3 / 2.1 1,311 $25,900-$349,947 $185,000 $141.11 Source: Realtor.com & Zillow.com
As the preceding table illustrates, the 505 residential units sold over the past several months have an average of three bedrooms and around one and one-half bathrooms and an average of 1,417 square feet. Most of the product was built prior to 1970. Only 19 units, representing approximately 3.7% of the homes sold, were built since 2000. The five newest homes have a median sales price of $269,000, or $124.83 per-square-foot. Of the 29 total condominiums sold during the period, 21 were built since 2000 which represents 72.4% of the condominium sales. The condominium units have an average number of around two bedrooms and two bathrooms and an average of 1,311 square feet. The eight newest condominium units have a median sales price of $275,975, or $212.78 per-square- foot.
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The following illustrates historical overall home and condominium sales by bedroom type.
Residential Sales by Bedroom Type Homes Number Average Average Average Price Median Median Price Bedrooms Sold Baths Sq. Ft. Year Built Range Sales Price per Sq. Ft. Two-Br. 123 1.2 1,033 1922 $2,500-$219,900 $75,000 $72.60 Three-Br. 261 1.7 1,399 1937 $500-$290,000 $123,000 $87.92 Four-Br. 102 2.2 1,850 1942 $12,000-$658,900 $147,750 $79.86 Total 486 1.7 1,401 1935 $500-$658,900 $115,000 $82.08 Condominiums Number Average Average Average Price Median Median Price Bedrooms Sold Baths Sq. Ft. Year Built Range Sales Price per Sq. Ft. Two-Br. 18 1.8 1,319 1988 $25,900-$219,900 $135,500 $102.73 Three-Br. 9 2.7 1,360 2008 $500-$349,947 $274,900 $202.13 Four-Br. 1 3.0 1,392 1999 $280,000 $280,000 $201.15 Total 28 2.1 1,335 1995 $25,900-$349,947 $200,000 $149.81 Source: Realtor.com & Zillow.com
A total of 261 (53.7%) of the recently sold residential units within the market were three-bedroom units, while the remaining units were comparably split between two- and four-bedroom units. The three-bedroom units had a median sales price of $123,000, or approximately $88 per-square-foot. Interestingly, there were no studio or one-bedroom condominium units identified in the market as being sold over the past several months. This may represent a development opportunity at the subject site. Of the 28 total condominium units sold, the largest number (18 units representing a share of 64.2%) were two-bedroom units with an average of around two full bathrooms and 1,319 square feet.
A map illustrating the location of recent residential sales within the Residential PMA is on the following page.
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3. Available For-Sale Housing
In addition to the evaluation of historical sales activity of residential units within the subject market, we have compiled a list of housing units currently available for purchase (as of late January 2021). Overall, we identified a total of 161 individual residential listings of available for-sale product within the market. Of these properties, only six are condominiums. The median list price of all residential units identified is $95,000 ($67 per-square-foot) and an overall average number of days on market (the time a unit has been listed as being available for purchase) of around 50 days. This is a relatively short period of time and indicates that the demand for residential product is strong.
The available for-sale housing stock by list price in the subject market is illustrated in the following table:
Residential Listings by Price Homes Number Percent of Avg. Days List Price of Units Supply on Market Up to $99,999 83 53.5% 56 $100,000 to $149,999 40 25.8% 45 $150,000 to $199,999 15 9.7% 31 $200,000 to $249,999 6 3.9% 53 $250,000 to $299,999 9 5.8% 57 $300,000+ 2 1.3% 56 Total 155 100.0% 50 Condominiums Number Percent of Avg. Days List Price of Units Supply on Market Up to $99,999 1 16.7% 19 $100,000 to $149,999 2 33.3% 25 $150,000 to $199,999 0 0.0% - $200,000 to $249,999 1 16.7% 78 $250,000 to $299,999 2 33.3% 78 $300,000+ 0 0.0% - Total 6 100.0% 50 Source: Realtor.com & Zillow.com
Overall pricing of available for-sale housing product (excluding condominiums) within the market ranges from $39,900 to $329,900, with a median asking price of $94,000. While the largest share (53.5%) of available product by price point falls below $100,000, more than 35% of the supply falls between $100,000 and $200,000. As such, the market has a relatively broad inventory of housing product by price point, though minimal product is available that is priced above $300,000. The demand for all price points appears to be excellent, with no pricing segment having an average number of days on market above 57. There were only 6 condominiums listed at the time data was obtained, however, the price points were evenly distributed and the days on market were at 78 or less.
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The available for-sale housing stock by year built in the market is illustrated in the following table.
Residential Listings by Year Built Homes Number Average Average List Price Median Median Price Avg. Days Year Built of Units Beds/Baths Square Feet Range List Price per Sq. Ft. on Market Before 1970 142 3.0 / 1.6 1,404 $39,900-$329,900 $88,950 $63.35 50 1970 to 1979 4 3.0 / 2.5 1,665 $80,320-$299,000 $221,700 $133.15 58 1980 to 1989 0 ------1990 to 1999 2 2.5 / 2.0 1,408 $149,900-$219,900 $184,900 $131.32 55 2000 to 2009 2 3.0 / 2.0 1,404 $133,000-$273,900 $203,450 $144.91 49 2010 to present 5 2.8 / 2.6 1,624 $246,900-$325,000 $269,900 $166.19 58 Total 155 3.0 / 1.7 1,417 $39,900-$329,900 $94,000 $66.33 50 Condominiums Number Average Average List Price Median Median Price Avg. Days Year Built of Units Beds/Baths Square Feet Range List Price per Sq. Ft. on Market Before 1970 1 2.0 / 2.0 1,391 $215,000 $215,000 $155.57 78 1970 to 1979 1 1.0 / 1.0 643 $44,900 $44,900 $69.83 19 1980 to 1989 0 ------1990 to 1999 0 ------2000 to 2009 2 2.0 / 2.0 1,171 $135,000-$139,900 $137,450 $117.38 25 2010 to present 2 2.5 / 2.5 1,440 $262,000-$287,500 $274,750 $190.80 78 Total 6 2.0 / 2.0 1,209 $44,900-$287,500 $177,450 $146.77 50 Source: Realtor.com & Zillow.com
As the preceding table illustrates, an exceeding number of housing units available for purchase in the market were built prior to 1970 (91.6%). This is similar to the recent (past seven months) housing sales activity. The average number of days on market is relatively low at 50 days, representative of a housing supply that is in high demand. Of the six condominiums available for purchase, four were built after 2000. They average two bedrooms and two bathrooms with an average foot of 1,209 square feet. Interestingly, the average days on market is identical to that of the housing units at 50 days. Therefore, the condominium market appears to be in high demand.
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The following table illustrates the distribution of available for-sale housing product by bedroom type identified in the market.
Residential Listings by Bedrooms Homes Number Average Average Average List Price Median Median Price Bedrooms Of Units Baths Sq. Ft. Year Built Range List Price per Sq. Ft. Two-Br. 37 1.2 1006 1941 $47,900-$299,000 $85,000 $84.49 Three-Br. 83 1.6 1394 1930 $39,900-$299,000 $104,900 $75.25 Four-Br. 28 2.2 1781 1922 $44,900-$325,000 $105,000 $58.96 Total 148 1.6 1370 1932 $39,900-$325,000 $92,000 $67.15 Condominiums Number Average Average Average List Price Median Median Price Bedrooms of Units Baths Sq. Ft. Year Built Range List Price per Sq. Ft. Two-Br. 4 2.0 1293 1983 $135,000-$262,000 $174,450 $134.92 Three-Br. 1 3.0 1440 2017 $287,500 $287,500 $199.65 Four-Br. 0 ------Total 5 2.2 1323 1990 $135,000-$287,500 $215,000 $162.51 Source: Realtor.com & Zillow.com
Most of the available for-sale product are three-bedroom units, consisting of 83 units, or approximately 56%, of the available supply. Two-bedroom units make up the next largest share of homes sold. The available two-bedroom units have a median asking price of $85,000 (about $84 per-square-foot) and three-bedroom units have a median asking price of $104,900 (about $75 per-square-foot). It is important to point out that these homes are relatively old, as two-bedroom units have an average year built of 1941 and three-bedroom units have an average year built of 1930. The average build date of all housing units was 1932. The two- and three-bedroom condominiums are much newer with an average build year of 1990 and an overall median asking price of $215,000 (about $163 per-square- foot). This pricing could be used as a possible baseline for establishing pricing at the subject site.
A map illustrating the location of available for-sale housing supply is on the following page.
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4. Comparable Condominium Properties
In addition to the aggregated condominium sales and available inventory data included earlier in this analysis, we have provided some additional details of the more modern condominium units either recently sold or currently available in the market. There were three condominium projects identified that had product sold within the city of Jackson (none in the downtown area) that were built in 2000 or later. There are also four modern (built since 2000) condominium projects in this market with active/available listings. Of the four comparable active projects, one (City View Lofts) is located in the downtown area, while the remaining three are located outside downtown but within the Jackson city limits. While not all of these projects will be comparable to or competitive with condominium product developed at the downtown subject site, these listings provide a perspective on market norms for modern condominium product in the Jackson area.
Key features of recently sold and available listings within these projects are highlighted below.
Comparable Recent Condominium Sales Within Past 9 Months Year Square List Sold Price Per Days on Project Address Bedrooms Built Feet Price Price Square Foot Sold Market 818 W. Barrington Cir. Two-Br. 2000 1,120 $125,000 $125,000 $111.61 01-07-2021 29 784 W. Barrington Cir. Two-Br. 2000 1,120 $130,000 $130,000 $116.07 10-29-2020 41 814 W. Barrington Cir. Three-Br. 2000 1,302 $125,000 $127,000 $97.54 10-09-2020 50 741 W. Barrington Cir. Two-Br. 2003 1,120 $137,500 $137,500 $122.77 10-08-2020 37 Summit 813 Chelsea Ct. Two-Br. 2003 1,490 $239,900 $239,900 $161.01 10-02-2020 51 Glen 749 W. Barrington Cir. Two-Br. 2003 1,120 $124,900 $125,000 $111.61 09-11-2020 31 767 W. Barrington Cir. Three-Br. 2000 1,280 $145,000 $247,907 $193.68 08-26-2020 59 795 W. Barrington Cir. Three-Br. 2000 1,302 $135,000 $131,000 $100.61 08-21-2020 191 768 W. Barrington Cir. Two-Br. 2002 1,120 $126,900 $126,900 $113.30 08-05-2020 42 905 Oak Brook Dr. Two-Br. 2003 1,547 $235,000 $215,000 $138.98 08-04-2020 160 Glen at Magnolia Park 1928 Coventry Cir. Two-Br. 2019 1,125 $145,000 $134,000 $119.11 07-24-2020 237 Terrace 3720 Terrace Hills Ln. Two-Br. 2008 1,501 $309,900 $282,450 $188.17 10-29-2020 109 Hills 2947 Countryside Ln. Two-Br. 2006 1,465 $195,000 $185,000 $126.28 11-03-2020 91 *All have 2.0 baths.
Available Condominiums – Jackson Year Bedrooms/ Building Square Days on List Price Per Project Name Address Built Baths Stories/Style Feet Market Price Square Foot Downtown Jackson City View Lofts 109 W. Washington Ave. 1909* 2/2 3/Garden** 1,391 78 $215,000 $154.57 Remainder of Jackson Glen at Magnolia Park 1961 Coventry Cir. 2006 2/2 2/Apartment 1,219 49 $135,000 $110.75 Summit Glen 779 W. Barrington Cir. 2000 2/2 2/Apartment 1,123 1 $139,900 $124.57 3723 Terrace Hills Ln. 2018 2/2 1/Townhome 1,440 78 $262,000 $181.94 Terrace Hills*** 3661 Terrace Hills Ln. 2017 3/3 1/Townhome 1,440 78 $287,500 $199.65 *Repurposed in 2014/2015. The Camp International Building (City View Lofts) shares the same architect (Albert Kahn) as the Hotel Hayes. ** There are no ground-floor units at City View Lofts, though some units start at one half level up. ***This is an independent living senior-restricted project within a planned adult community with multiple levels of living.
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Among the recently sold product, the median sales price was $134,000, or $119.11 per-square foot. Of the 13 units recently sold, four are priced at $215,000 or higher, with the highest priced unit selling for $282,450 ($188.17 per-square- foot). Among the available product, the two-bedroom/two-bathroom garden-style unit within the only downtown project offers 1,391 square feet with an asking price of $215,000 ($154.57 per-square-foot), well above the base pricing for the same bedroom type at most of the other projects outside of downtown. The available two-bedroom units at the projects located outside of the downtown area have an average list price of $178,966 ($139.09 per-square-foot), while the lone three-bedroom unit has a list price of $287,500 ($199.65 per-square-foot). Based on both the recently sold and currently available product in the Jackson area, there appears to be a noticeable gap of product sold or available that is priced between $150,000 and $215,000. This may represent a development opportunity at the subject site.
Base features common among all projects include having an open floor plan, central air conditioning, granite countertops, a full package of stainless-steel appliances, large laundry room equipped with washer and dryer, extra storage, large master closet and walk-in shower, and at least one dedicated garage parking space. City View Lofts is the only garden-style project and the only general- occupancy project with amenities such as an atrium gathering space, rooftop deck with track, an underground parking space (in addition to a gated parking lot), and a banquet room complete with a full kitchen, two bathrooms, tables, and chairs. Note that the $400 monthly HOA fee for the downtown project is nearly twice that of all other projects. In addition to location, the quality of finishes (custom design, “walls of windows,” columns, high ceilings, exposed piping, 100+ year- old hardwood floors, skylights in select units, etc.) affect the marketability and ultimately the pricing at City View Lofts. For all other projects, a porch/balcony/patio and a combination of tile and carpeting are standard. Similarly, besides being substantially newer than the other projects, it is important to note that residents of the senior-restricted Terrace Hills project have access to full basements with a fireplace, community rooms for events, a fitness center, a rehabilitation center, a club pharmacy, and more. Furthermore, although the unit at Glen at Magnolia Park is newer and larger than the unit at Summit Glen, it has a lower asking price. As such, the location, building structure, design, quality, amenities, and number of units of the proposed subject project will ultimately dictate the achievable price points. However, the pricing among the comparable supply provides a base of comparison for units developed at the subject site.
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5. Planned For-Sale Housing Development
Based on information provided during interviews with representatives of the local building and planning departments, and extensive online research, it was determined that there are no planned or proposed condominium project developments of notable size within the Residential PMA.
6. For-Sale Housing Demand
This section of the report addresses the market demand for for-sale housing in the Residential PMA. There are a variety of factors that impact the demand for new homes within an area. In particular, area and neighborhood perceptions, proximity to community services, demographics, mobility patterns, and active builders all play a role in generating new home sales. Support can be both internal (households moving within the market) and external (households new to the market).
While new household growth alone is often the primary contributor to demand for new for-sale housing, support also can originate from such factors as renters converting to homeownership, turnover of existing homeowners seeking new housing, and external market support. All four sources of demand have been considered in this analysis.
While the pricing of the proposed subject units has yet to be established, we have used three price ranges and corresponding income requirements to measure the potential support in the market for varying for-sale housing products. We used current housing pricing in the subject market as a guide to establish these price ranges. This includes product priced between $150,000 and $199,999, between $200,000 to $249,999, and product priced $250,000 and higher. For the purposes of this analysis, we have conservatively assumed that the purchase price generally represents three times the household income required to purchase the subject units, less a possible down payment of around 10%.
Obviously, the ultimate purchasing power of an individual household is based on numerous factors such as the size of the down payment, credit history, interest rates, mortgage insurance, taxes, etc. Further, there are cases where a household can afford and/or is required to provide a higher down payment to purchase a more expensive home. There are also cases in which a household purchases a less expensive home although they could afford a higher purchase price. Therefore, our demand estimates should be used as a general guideline on the depth of support for new product at the various price points.
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The following table illustrates potential demand for for-sale product priced at three pricing levels at the subject site. For the purposes of this analysis, these estimates assume a 2022 opening date.
Potential For-Sale Housing Demand Purchase Price $150,000-$199,999 $200,000-$249,999 $250,000+ Targeted Income Level $45,000 - $59,999 $60,000 - $74,999 $75,000+ x Turnover Support (6.0%) 110 74 92 + Annual Household Growth -11 19 264 + Renter Conversion (4.0%) 35 16 40 + External Market Support (30.0%) 40 44 118 = Total Potential Support Base 174 153 514 x Individual Site Capture Rate x 15% X 10% x 5% Equals Potential Units 26 15 26
Based on the preceding analysis, there appears to be equal amount of support (26 units each) for for-sale product at the subject site priced between $150,000 and $199,999 and product priced at or above $250,000. There is 15 units of potential support for product priced between $200,000 and $249,999. It is worth pointing out, as shown in our for-sale supply analysis, there appears to be a limited amount of available condominium supply priced between $150,000 and $215,000. This may be an underserved segment of the condominium market and a potential development opportunity for the subject site. Ultimately, the number of units that can be supported will depend on such things as design, finishes, amenities and the overall marketability of the product developed.
L. RETAIL SUPPLY & DEMAND ANALYSIS
This section of the report considers the supply and demand components of retail space within the Jackson, Michigan market. The supply analysis includes an estimate of existing retail properties in the Retail Primary Market Area (downtown), an inventory of available space identified in the Retail PMA and in the city of Jackson, stakeholder input on the potential demand for retail space, identification of retail space in the development pipeline in the Retail PMA, and demand estimates on the potential retail space that can be supported at the subject site. Given this is a preliminary analysis, we did not conduct an on-site survey of the market and may not have included all available retail space within the subject market.
1. Retail Supply
The purpose of this supply analysis is to provide insight into the strength and characteristics of the existing retail supply. We conducted a survey of existing and proposed retail space within the Retail PMA, collecting information such as location, quality, vacancies and lease rates.
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Existing Retail Supply
Based on information provided by the BS&A Online (parcel data) and LandGrid (parcel numbers), there are approximately 322 real properties located in the Retail PMA (downtown) that were classified as commercial space. This space should be used for retail and/or office purposes. Because some properties were missing key data or may have been misclassified, this count of existing retail properties does not include all such properties. Nonetheless, this inventory of existing buildings likely represents a large majority of commercial (retail or office) space in the Retail PMA.
The following table illustrates the distribution of identified commercial space by year built within the Retail PMA:
Commercial Space Total Total Square Percent of Total Year Built Properties Footage Square Feet Pre-1970 73 1,001,262 49.9% 1970-1989 15 333,643 16.6% 1990-1999 7 49,843 2.5% 2000-2009 6 504,476 25.1% 2010-2020 2 116,962 5.8% Subtotal 103 2,006,186 100.0% N/A 219 777,724 27.9% Total 322 2,783,910 100.0% Source: BS&A Online (parcel data) and LandGrid (parcel numbers) N/A – Not available
These properties contain an estimated total of at least 2,783,910 square feet of commercial space. Most of the existing commercial space in the Retail PMA consists of product built prior to 1970. This older product contains a total of 1,001,262 square feet of space, which represents approximately one-half of the total space in the downtown for which the year built was identified. This is not surprising given the fact that the downtown is well established. Modern commercial space, product built since 2010, consists of just 116,962 square feet of space, or just 5.8% of the space for which the year built was identified.
Available Space
We identified, surveyed and evaluated 10 properties containing available retail space located within the Retail PMA (downtown). Additionally, we identified 21 available retail spaces outside of the Retail PMA, but primarily within the city of Jackson and referred to as the Retail Secondary Market Area (SMA). The 10 properties located in the Retail PMA contain an estimated total of approximately 32,430 square feet of available retail space, while the SMA has at least 256,972 square feet of available retail space. While our survey did not consider occupied space, based on our interviews with local sources and our evaluation of the local retail market, it would appear that the Retail PMA’s retail vacancy rate is likely comparable to the national retail space vacancy rate of 6.6%, as reported by
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CBRE’s U.S. Office Figures Q4 2020 report. According to the report, this vacancy rate is the highest since 2013 and 2.8% higher than Q4 2019, and primarily impacted by the COVID-19 pandemic.
The rental rates by quality rating for retail space surveyed in the market are shown in the table below:
Retail Space by Quality/Class Rating Quality/ Available Square Rent Range Average Rent Per Class Rating Footage Per Square Foot Square Foot Retail Primary Study Area (PMA) A 5,677 $12.50-$19.00 $15.75 B 12,607 $8.64-$13.00 $10.93 C 14,146 $5.00-$8.16 $6.39 Total 32,430 $5.00-$19.00 $10.64 Retail Secondary Market Area (SMA) A - - - B 163,032 $4.00-$23.00 $13.99 C 93,940 $5.00-$14.00 $8.89 Total 256,972 $4.00-$23.00 $12.09
While we found some available class A space in the Retail PMA, we were unable to identify any available class A space in the surrounding SMA. Of the available square footage in the PMA, most of it was evenly split between class B and C product, representing 38.9% and 43.6% of the available supply, respectively. Class A space in the downtown area totals 5,677 square feet, reflective of 17.5% of downtown’s available supply. Average rent per-square-foot by class in the Retail PMA is $15.75 for class A space, $10.93 for class B space, and $6.39 for class C space. While numerous factors can influence the rent that can ultimately be achieved at the subject site, we believe the preceding average rents can be used as a baseline for establishing rents at the site. The highest asking rent per-square- foot by class in the downtown is $19.00 for class A space and $13.00 for class B space, which may be considered as “best case” scenarios at the subject site.
The following table provides more specific details of the identified and surveyed available retail space within the Retail PMA and SMA.
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Quality/ Year Available Map Class Built/ Square I.D. Location Primary Property Type Rating Renovated Feet Lease Rate* Retail Primary Market Area 1 209 E. Washington St., Jackson Retail A 1980/2011 2,177 $19.00 2 304-308 Francis St., Jackson Retail C 1888 5,408 $5.00-$6.00 3 132 W. Cortland St., Jackson Retail B N/A 3,000 $11.00 4 133 W. Michigan Ave., Jackson Retail B N/A 1,800 $11.00 5 214 S. Jackson St., Jackson Retail/Office/Service B 1927/2020 3,507 $13.00 6 200 N. Jackson St., Jackson Retail A 2020 3,500 $12.50 7 133 W. Washington Ave., Jackson Restaurant B N/A 1,800 $11.00 8 133 E. Washington St., Jackson Retail/Restaurant C 1890/2016 7,488 $6.00-$7.21 9 142 N. Mechanic St., Jackson Retail B N/A 2,500 $8.64 10 159 W. Pearl St., Jackson Retail/Office C N/A 1,250 $8.16 Retail Secondary Market Area 101 3025-3039 E. Michigan Ave., Jackson Retail C 1976 44,982 $5.00-$7.00 102 915 N. Wisner St., Jackson Retail B 1950 22,540 $4.00-$8.00 103 2103 W. Michigan Ave., Jackson Retail B 2006 3,828 $12.00 104 1014 Boardman Rd., Jackson Retail B 1967/2002 38,721 Negotiable 105 2020 Bondsteel Dr., Jackson Retail/Office B 1900 9,000 Negotiable 106 3510 O'Neill Dr., Jackson Retail/Restaurant B 2000 5,774 $14.00 107 3525 O'Neill Dr., Jackson Retail B 1981 20,102 $9.50 108 1092 Jackson Crossing, Jackson Retail B N/A 37,515 N/A 109 916-966 North West Ave., Jackson Retail C 1960 22,966 $9.00-$14.00 110 2103 W. Michigan Ave., Jackson Retail C N/A 3,828 $12.00 111 2299 W. Michigan Ave., Jackson Retail C N/A 7,362 $7.32 112 1701-1707 Spring Arbor Rd., Jackson Retail C N/A 5,220 $10.00 113 2266 Springport Rd., Jackson Retail B N/A 5,800 $12.00 114 1111 West Ganson St., Jackson Retail B NNN 7,047 N/A 115 3634 McCain Rd., Jackson Retail B N/A 2,925 $15.36 - $19.44 116 4200 Spring Arbor Rd., Jackson Retail/Office/Wholesale C N/A 9,582 $10.00 117 3246 E. Michigan Ave., Jackson Retail B 2009 2,000 $21.00 118 3232 E. Michigan Ave., Jackson Retail B 2009 1,200-3,600 $21.00-$23.00 119 1230 Francis St., Jackson Retail B 2005 880 $14.00 120 1220 W. Parnall Rd., Jackson Retail/Office B N/A 1,688-1,950 $12.00 121 1130 First St., Jackson Retail/Office B N/A 1,350 $16.20
*Annual Lease Rate on a Per-Square-Foot Basis N/A – Not Available NNN – Triple Net
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2. Planned & Proposed Retail Supply
Numerous retail developments are planned or underway in downtown Jackson. These developments primarily consist of mom-and-pop operations and startups, as opposed to commercial or brand retailers. In addition, stakeholders cited grants that will be applied toward downtown retail frontage during the next quarter, the City of Jackson’s current planning effort to improve the MLK (Commercial) Corridor, as well as most restaurants’ plans to reopen once the 25% occupancy restriction is lifted. These development announcements indicate strong demand for retail space in downtown Jackson. Details regarding these developments are illustrated below:
Downtown Jackson: Planned Commercial Developments Square Entity Expected Total Project Development Developer Address Feet Type Type Completion/Status Investment Andrew Peach Market Kokas/Yizhuo 148 E. Cortland St. 7,000 Private Grocery Late Spring 2021 $175,000 Liang Multi-Purpose Jackson School 10,000- Non- Phil Curtis 145 W. Cortland St. Dance, Art & Fall 2021 $2,500,000 for the Arts 12,000 Profit Theater Under construction; Heavenly Prospect in the Retail-Pad/ For lease at $15.23 per 206 S. Jackson St. 965 Private $5,000 Delight Pipeline Restaurant square foot per year; Available 3/1/2021 Under construction & Marijuana JARS Cannabis JARS Holding 156 S. Cooper St. N/A Private Provisionary License N/A Dispensary Reserved Under construction & Provisionary New Generation 118 N. Columbus Marijuana License Reserved; Site Dave Lammers 4,000 Private $2,000,000 Meds LLC St. Retailer plans submitted, waiting on further information Under Marijuana construction & Objectiv Growth, 811 E. Washington Processing 71,625 Private Class-C August 2021 $15,000,000 LLC Ave. Facility Grower License Reserved Retail or Office $15,000,000 Jackson Citizen General Capital Spring or Summer 214 S. Jackson St. 4,000 Private (Also (Includes Patriot Building Development 2021 Apartments) Apartments) N/A – Not available
As illustrated in the preceding table, planned new retail development in downtown Jackson include a grocery store, a retail/restaurant project, a few retail and apartment redevelopments utilizing the Michigan Community Revitalization Program, and at least six new retail/office/warehouse small businesses to open in downtown which are currently in the planning and design phases. A notable segment of the retail space development in downtown is comprised of marijuana- based operations. Within or immediately surrounding downtown, there are two grower licenses of Class A or Class B, two safety compliance facility licenses, two secure transporter licenses, and two marijuana microbusinesses. Overall, there is at least 97,000 square feet of retail space in the development pipeline.
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3. Retail Demand Outlook
We have evaluated consumer expenditure data from ESRI, a nationally recognized demographics provider, and compared estimated consumer expenditures for 2020 by retail sector with projected expenditures for 2025 for both the city of Jackson and for the balance of Jackson County (areas of Jackson County outside of Jackson city limits). According to ESRI, the consumer spending data is household-based and represents the amount spent for a product or service by all households in an area. It should be noted that that some the list does not include all possible consumer expenditures and therefore, the list should not be considered comprehensive. Regardless, the projected increase in consumer expenditures provides insight as to the growing need for additional retail space in the market.
While the data provided by ESRI covers a broad range of consumer expenditures, we only included those expenditures that would yield demand for retail establishments that would most likely be located in a downtown market. This would include such retailers associated with apparel, watches, footwear, computers, entertainment (video, reading, hobbies, audio, pets, etc.), food and beverages, healthcare (prescription and non-prescription drugs, eyeglasses, etc.), households furnishings, housekeeping supplies, personal care products and smoking products. These sectors within the city of Jackson have total annual sales of around $165 million. Details of the projected growth within these sectors are illustrated on the following pages.
The ESRI projections indicate that consumer expenditures for retail alternatives that could likely be supported at the downtown subject site will increase by $6,653,387 within Jackson over the next five years, or by $1,330,677 annually. Within the balance of Jackson County (areas of the county located outside of Jackson city limits), these particular consumer expenditures will increase by a projected $51,321,851 over the next five years, or by $10,264,370 annually.
The data for the city of Jackson is provided separately from the balance of Jackson County on the following pages.
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Retail Demand Outlook – Projected Increase in Spending by Retail Sector Jackson, Michigan Retail Sector Retail Subsectors Five-Years Annual Men’s Apparel $231,553 $46,311 Women’s Apparel $419,230 $83,846 Children’s Apparel $189,498 $37,900 Footwear $285,506 $57,101 Watches & Jewelry $65,213 $13,043 Apparel & Services Apparel Products & Services $30,531 $6,106 Computers and Hardware for Home Use $85,683 $17,137 Portable Memory $2,089 $418 Computer Software $5,246 $1,049 Computer Computer Accessories $10,072 $2,014 VCRs, Video Cameras, and DVD Players $3,136 $627 Miscellaneous Video Equipment $15,124 $3,025 Video Cassettes and DVDs $6,016 $1,203 Video Game Hardware/Accessories $18,643 $3,729 Video Game Software $10,691 $2,138 Audio $60,003 $12,001 Rental and Repair of TV/Radio/Sound Equipment $1,785 $357 Pets $379,864 $75,973 Toys/Games/Crafts/Hobbies $74,398 $14,880 Entertainment & Photo Equipment and Supplies $30,643 $6,129 Recreation Reading $58,725 $11,745 Food Away from Home $2,104,147 $420,829 Food & Beverages Alcoholic Beverages $334,319 $66,864 Nonprescription Drugs $87,074 $17,415 Prescription Drugs $208,281 $41,656 Health Eyeglasses and Contact Lenses $54,618 $10,924 Household Textiles $59,856 $11,971 Furniture $369,054 $73,811 Rugs $20,073 $4,015 Major Appliances $190,295 $38,059 Housewares $54,138 $10,828 Small Appliances $29,059 $5,812 Household Furnishings & Luggage $8,014 $1,603 Equipment Telephones and Accessories $50,310 $10,062 Household Operations Housekeeping Supplies $440,694 $88,139 Personal Care Products $298,763 $59,753 School Books and Supplies $81,282 $16,256 Miscellaneous Smoking Products $279,761 $55,952 Total $6,653,387 $1,330,677 Source: ESRI Demand Outlook 2020 and 2025
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Retail Demand Outlook – Projected Increase in Spending by Retail Sector Balance of Jackson County, Michigan Retail Sector Retail Subsectors Five-Years Annual Men’s Apparel $1,742,651 $348,530 Women’s Apparel $3,248,349 $649,670 Children’s Apparel $1,335,061 $267,012 Footwear $2,009,862 $401,972 Watches & Jewelry $509,491 $101,898 Apparel & Services Apparel Products & Services $230,802 $46,160 Computers and Hardware for Home Use $658,609 $131,722 Portable Memory $15,832 $3,166 Computer Software $38,215 $7,643 Computer Computer Accessories $78,211 $15,642 VCRs, Video Cameras, and DVD Players $22,981 $4,596 Miscellaneous Video Equipment $121,251 $24,250 Video Cassettes and DVDs $43,954 $8,791 Video Game Hardware/Accessories $120,556 $24,111 Video Game Software $69,692 $13,938 Audio $454,003 $90,801 Rental and Repair of TV/Radio/Sound Equipment $10,682 $2,136 Pets $3,391,408 $678,282 Toys/Games/Crafts/Hobbies $543,375 $108,675 Entertainment & Photo Equipment and Supplies $215,002 $43,000 Recreation Reading $484,026 $96,805 Food Away from Home $16,016,833 $3,203,367 Food & Beverages Alcoholic Beverages $2,608,853 $521,771 Nonprescription Drugs $713,479 $142,696 Prescription Drugs $1,754,068 $350,814 Health Eyeglasses and Contact Lenses $455,797 $91,159 Household Textiles $444,512 $88,902 Furniture $2,777,372 $555,474 Rugs $164,609 $32,922 Major Appliances $1,619,667 $323,933 Housewares $444,733 $88,947 Small Appliances $215,362 $43,072 Household Furnishings & Luggage $59,534 $11,907 Equipment Telephones and Accessories $401,988 $80,398 Household Operations Housekeeping Supplies $3,514,162 $702,832 Personal Care Products $2,210,736 $442,147 School Books and Supplies $609,312 $121,862 Miscellaneous Smoking Products $1,966,821 $393,364 Total $51,321,851 $10,264,370 Source: ESRI Demand Outlook 2020 and 2025
The preceding growth in spending, along with total annual expenditures already occurring in the market, have been considered in our demand estimates.
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4. Retail Stakeholder Input
In an effort to supplement our research of retail space in downtown Jackson, associates of Bowen National Research conducted telephone interviews with four stakeholders within the greater Jackson community, including two realtors with over a decade of experience in the Jackson County area and two stakeholders who have been involved with the revitalization of downtown Jackson for many years. In light of their expertise, stakeholders were requested to share their perceptions of the current state of the market for retail space in downtown Jackson, both overall and at the site location. Stakeholders were asked about the types of retail that would most likely occupy the bottom floors of the Hotel Hayes, the potential uses that would best accompany retail space at the site, and any development considerations to increase the success of potential new retail space at the subject site. Stakeholders were assured that their names would remain confidential. The following is a summary of key input gathered during the stakeholder interviews.
Overall, respondents unanimously believed there is a demand for retail in downtown Jackson overall and at the subject site. A respondent who was very familiar with the Hotel Hayes Building stated that while there are many people who would want to live in a historic building such as the subject development, which likely has a regional demographic draw from as far as Ann Arbor, this is not a cheap project. One stakeholder mentioned that the retail space located in The 200 apartment complex across from the site is 50% occupied and that there are some retail vacancies within On The Lofts. This same stakeholder estimated the potential pricing structure for Class A or B retail space offered at the site at $12.00 per square foot annually. Most respondents also acknowledged the impact of COVID-19. Stakeholders cited Jackson’s unemployment rate of 7.6% (as of February 2021), which is above Michigan (5.3%), Ann Arbor (2.9%), Ypsilanti (3.5%), Bay City (5.9%), and Romulus (7.4%), and below Detroit (13.8%). However, most respondents also emphasized the strength of the demand for retail in downtown Jackson prior to the COVID-19 pandemic. One stakeholder cited new demand for retail space in downtown from various retail users, primarily consisting of mom-and-pop operations and startups, and stakeholders generally exuded confidence that the downtown area will return to its normal economic state, which one longtime resident described as “booming.”
Respondents generally believed that there has been a structural resurgence in downtown Jackson during the past decade, and that most locals expect continued revitalization. In fact, the present level of downtown development is described in a January 2020 report entitled, Jackson’s Downtown Street Level Space, as the second “tipping point” since Jackson’s golden years, which were marked by the construction of the Hotel Hayes in 1925 and extended through 1938 with the Lean Rocket Lab development. The report also states that the current wave of revitalization began in 2015 with The Grand River Brewery and is anticipated to continue through at least 2025. The report partially attributes the strength of retail market conditions within downtown (pre-COVID-19) to real estate bargains from a long stagnant downtown and pent-up demand for investment following the 2008
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recession as well as increasing awareness of the role of a vibrant downtown for talent attraction and innovation.
Factors that were mentioned as being likely to contribute to the marketability of retail space at the subject site include the Commonwealth $3.5 million investment into the Comerica building to accommodate 150 employees, located directly across from the Hotel Hayes. City improvements to streets and public infrastructure in downtown during the last decade as well as the City’s investment in Horace Blackman Park and the CP Federal Square mural and amphitheater (located adjacent to the subject site) in 2017 are also expected to contribute to the site’s marketability. The central location of the subject site is described as favorable, as it should have residual foot traffic from the core retail district just blocks from the subject site. Most stakeholders believed that the demand for retail space is much higher in downtown Jackson as opposed to the overall city, citing the median income and number of young professionals, doctors, and employees of Consumers Energy and other large employers. Stakeholders also acknowledged that pricing, quality, and other factors such as parking and access to other amenities are also critical to consider.
Stakeholders unanimously preferred retail use to office use in the bottom floors of the Hotel Hayes. In terms of the demand for a certain retail class, stakeholders indicated that the retail space downtown is generally well-balanced, with the most common types including restaurants, clothing stores, home décor, and specialty gift shops. The prominence of these types of retail users led most stakeholders to conclude that similar categories should be considered for the subject project. All respondents approved of a new restaurant, since locals are always seeking new restaurants and were accustomed to eating out in downtown Jackson prior to the pandemic, indicating that there is pent-up demand. Since 2016, there have been various new theme restaurants in downtown (i.e., Dirty Bird, Junk Yard Dog, Chilcangos). A Jackson Shopability Analysis report from May 2018 conducted by the Gibbs Planning Group indicated that the western portion of downtown centered around the immediate site neighborhood can accommodate a variety of retailers, with suggested categories including the following: bakery, butcher, brew pubs, ethnic foods, family apparel, take-out, florist, financial services, grocery, hardware, office supplies, home furnishings and salon, or personal care.
In terms of the mix of uses to best complement first-floor retail space at the site, the prominence of new construction market-rate apartments in downtown, and the number of people who have moved downtown because of the development led most stakeholders to conclude that rental housing should do well within the Hotel Hayes building project. A single stakeholder indicated that condominiums are advisable compared to apartments, since the recent level of construction downtown indicates potential market saturation. A single stakeholder emphasized that market-rate apartments should be upscale, especially if the project will include condominiums. Stakeholders agreed that demand is highest for three- bedroom units, though there is some demand for two-bedroom units, and to a lesser extent for one-bedroom units. Stakeholders indicated that pricing should
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mirror rates at The 200, an apartment project located across the street from the subject site. Stakeholders cited the multiple recent new-construction market-rate apartment developments, with the first of these being Lofts on Louis in 2017, which offer one-, two-, and three-bedroom units and are believed to be priced appropriately. Furthermore, most stakeholders were supportive of the idea of having some units set aside for hotel use, possibly in the range of between 40 and 50 hotel rooms. Besides one hotel just outside of the downtown, there is no hotel within walking distance for the many transient employees of large downtown employers, one respondent noted. Stakeholders who approved of hotel space at the site also approved of making event space available for rent within the floors set aside for hotel rooms, given the limited event space downtown. Events would also serve to attract more people to the hotel.
5. Retail Demand Estimates
Projections for additional retail space that is needed or can be supported are determined through an analysis of the existing and projected growth in consumer spending patterns by expenditure category (e.g., apparel, computers, pets, food, etc.) within a market. It is important to point out that not all consumer expenditure growth will result in the need for additional retail space. For example, some growth will be absorbed by existing retail businesses in the market, while other growth may be absorbed by online retailers. Conversely, a new retailer can expect to capture a share of the existing consumer expenditures, particularly if the retailer offers a unique or superior product/service, has a venue that is unique (in an arts district, is waterfront, etc.), is in a high-traffic area (often adjacent or near public venues such as theater, convention center, etc.), or is offering a product or service to a market that is underserved. For the purposes of this analysis, and given the subject site’s downtown location, the following analysis focuses on only those consumer expenditures associated with sectors that most likely would yield demand for additional retail space at the subject site.
Based on estimates provided by ESRI, consumer spending in the selected retail categories currently averages around $165 million annually. This spending is projected to increase by more than a million dollars a year. The following table illustrates the projected increase in consumer expenditures, which includes retail goods and services, as well as food, for the city of Jackson and the balance of Jackson County.
Consumer Expenditures Growth Period Jackson (City) Balance of County Five-Year Change $6,653,387 $51,321,851 Annual Change $1,330,677 $10,264,370 Source: ESRI
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To calculate demand for additional retail space within the subject market, we divided both the existing annual sales and the projected annual consumer expenditures within the targeted retailer sectors by a sales per-square-foot factor of $250. This yields the total amount of new retail space (square footage) that can be supported in the market. We normally account for deficits or surpluses among the existing retail space, as well as account for retail space in the development pipeline (either planned or under construction). Because this is a preliminary analysis, we did not evaluate the relationship of existing and vacant space and its impact on market demand. However, according to knowledgeable local stakeholders, the Jackson retail market is in a good state of equilibrium and does not appear to have an unusually low or high vacancy rate. We have accounted for the product in the development pipeline that might directly compete with the subject site.
A single site can capture only a portion of this estimated demand. Therefore, we have applied various conservative but acceptable market share ratios to each of the demand segments to determine the total retail space that can be supported at the subject site. This calculation is summarized in the following table.
Site-Specific Retail Space Demand Estimates Market Source Square Feet Jackson Existing Consumer Expenditures 6,600 Jackson Consumer Expenditure Growth 532 Secondary Market Area Consumer Expenditures 2,052 = Potential Retail Space Needed (Sq. Ft.) ~9,200
Based on the preceding analysis, there appears to be potential support for approximately 9,200 square feet of retail space at the subject site. While a variety of factors will ultimately impact the success of retail space at the subject site, we believe that while there is nominal projected growth of retail expenditures within the city of Jackson over the next five years there will be an opportunity to get support from people outside of the city and from current consumer expenditures already occurring in the market. Because we anticipate that the subject will have to rely on these demand components, it will be critical that the site attract a retailer that is unique, in terms of its service and/or product, as well as creating a unique environment.
Assuming the retail space at the subject site is of high quality and given that recently developed retail space near the site is achieving a rent of around $12.50 per-square-foot, it is likely lease rates generally ranging from $13 to $15 per square foot would be achievable at the subject site. Additional factors that will ultimately affect the achievable lease rate at the subject site include the type of lease (triple net, gross, or modified gross), and length of lease.
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Although this study was not intended to focus on a specific retail market sector that could be supported at the subject site, various local market metrics (large projected growth in “food away from home” and “beverages” consumer expenditures and the disproportionately low share of full-service restaurants in Jackson) and the subject site’s unique building structure and downtown location point to a potential opportunity to support a full service, possibly fine dining restaurant.
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III. Qualifications and Sources
The Company
Bowen National Research employs an expert staff to ensure that each market study is of the utmost quality. Each staff member has hands-on experience evaluating sites and comparable properties, analyzing market characteristics and trends, and providing realistic recommendations and conclusions. The Bowen National Research staff has the expertise to provide the answers for your development.
Company Leadership
Patrick Bowen is the President of Bowen National Research. He has prepared and supervised thousands of market feasibility studies for all types of real estate products, including affordable family and senior housing, multifamily market-rate housing and student housing, since 1996. He has also prepared various studies for submittal as part of HUD 221(d)(3) & (4), HUD 202 developments and applications for housing for Native Americans. He has also conducted studies and provided advice to city, county and state development entities as it relates to residential development, including affordable and market rate housing, for both rental and for-sale housing. Mr. Bowen has worked closely with many state and federal housing agencies to assist them with their market study guidelines. Mr. Bowen has his bachelor’s degree in legal administration (with emphasis on business and law) from the University of West Florida.
Desireé Johnson is the Director of Operations for Bowen National Research. Ms. Johnson is responsible for all client relations, the procurement of work contracts, and the overall supervision and day-to-day operations of the company. She has been involved in the real estate market research industry since 2006. Ms. Johnson has an Associate of Applied Science in Office Administration from Columbus State Community College.
Market Analysts
Craig Rupert, Market Analyst, has conducted more than 1,000 market feasibility studies throughout the United States since 2010, within both urban and rural markets as well as on various tribal reservations. Mr. Rupert has prepared market studies for numerous types of housing including market-rate, Tax Credit, and various government-subsidized rental product, for-sale product, senior living (assisted living, nursing care, etc.), as well as market studies for retail/commercial space. Market studies prepared by Mr. Rupert have been used for submittal as part of state finance agency Tax Credit and HUD 221 (d)(4) applications, as well as various other financing applications submitted to local, regional, and national-level lenders/financial institutions. Mr. Rupert has a bachelor’s degree in Hospitality Management from Youngstown State University.
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Jack Wiseman, Market Analyst, has conducted extensive market research in over 200 markets throughout the United States since 2007. He provides thorough evaluation of site attributes, area competitors, market trends, economic characteristics and a wide range of issues impacting the viability of real estate development. He has evaluated market conditions for a variety of real estate alternatives, including affordable and market-rate apartments, retail and office establishments, student housing, and a variety of senior residential alternatives. Mr. Wiseman has a Bachelor of Arts degree in Economics from Miami University.
Jeff Peters, Market Analyst, has conducted on-site inspection and analysis for rental properties throughout the country since 2014. He is familiar with multiple types of rental housing programs, the day-to-day interaction with property managers and leasing agents and the collection of pertinent property details. Mr. Peters graduated from The Ohio State University with a Bachelor of Arts in Economics.
Christopher T. Bunch, Market Analyst has over ten years of professional experience in real estate, including five years of experience in the real estate market research field. Mr. Bunch is responsible for preparing market feasibility studies for a variety of clients. Mr. Bunch earned a bachelor’s degree in Geography with a concentration in Urban and Regional Planning from Ohio University in Athens, Ohio.
Lisa Goff, Market Analyst, has conducted site-specific analyses in both rural and urban markets throughout the country. She is also experienced in the day-to-day operation and financing of Low-Income Housing Tax Credit and subsidized properties, which gives her a unique understanding of the impact of housing development on current market conditions.
Ambrose Lester, Market Analyst, has conducted detailed research and analysis on a variety of residential alternatives, including rental and for-sale housing. She has conducted on-site research of buildable sites, surveyed existing rental and for-sale housing and conducted numerous stakeholder interviews. She has also conducted research on unique housing issues such as accessory dwelling units, government policy and programs and numerous special needs populations. Ms. Lester has a degree in Economics from Franciscan University of Steubenville.
Sidney McCrary, Market Analyst, is experienced in the on-site analysis of residential and commercial properties. He has the ability to analyze a site’s location in relation to community services, competitive properties and the ease of access and visibility. Mr. McCrary has a Bachelor of Science in Business Administration from Ohio Dominican University.
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Gregory Piduch, Market Analyst, has conducted site-specific analyses in both metro and rural areas throughout the country. He is familiar with multiple types of rental housing programs, the day-to-day interaction with property managers and leasing agents and the collection of pertinent property details. Mr. Piduch holds a Bachelor of Arts in Communication and Rhetoric from the University of Albany, State University of New York and a Master of Professional Studies in Sports Industry Management from Georgetown University.
Ron Pompey, Market Analyst, has surveyed both urban and rural markets throughout the country. He is trained to understand the nuances of various rental housing programs and their construction and is experienced in the collection of rental housing data from leasing agents, property managers, and other housing experts within the market. Mr. Pompey has a Bachelor of Science in Electrical Engineering from the University of Florida.
Nathan Stelts, Market Analyst, is experienced in the assessment of housing operating under various programs throughout the country, as well as other development alternatives. He is also experienced in evaluating projects in the development pipeline and economic trends. Mr. Stelts has a Bachelor of Science in Business Administration from Bowling Green State University.
Jonathan Kabat, Market Analyst, has surveyed both urban and rural markets throughout the country. He is trained to understand the nuances of various rental housing programs and their construction and is experienced in the collection of rental housing data from leasing agents, property managers, and other housing experts within the market. Mr. Kabat graduated from The Ohio State University with a Bachelor of Art in History and a minor in Geography.
Research Staff
Bowen National Research employs a staff of in-house researchers who are experienced in the surveying and evaluation of all rental and for-sale housing types, as well as in conducting interviews and surveys with city officials, economic development offices, chambers of commerce, housing authorities and residents.
June Davis, Office Manager of Bowen National Research, has been in the market feasibility research industry since 1988. Ms. Davis has overseen production on over 20,000 market studies for projects throughout the United States.
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Stephanie Viren is the Research and Travel Coordinator at Bowen National Research. Ms. Viren focuses on collecting detailed data concerning housing conditions in various markets throughout the United States. Ms. Viren has extensive interviewing skills and experience and also possesses the expertise necessary to conduct surveys of diverse pools of respondents regarding population and housing trends, housing marketability, economic development and other socioeconomic issues relative to the housing industry. Ms. Viren's professional specialty is condominium and senior housing research. Ms. Viren earned a Bachelor of Arts in Business Administration from Heidelberg University.
Kelly Wiseman, Research Specialist Director, has significant experience in the evaluation and surveying of housing projects operating under a variety of programs. In addition, she has conducted numerous interviews with experts throughout the country, including economic development, planning, housing authorities and other stakeholders.
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Addendum A:
Phone Survey of Conventional Rentals
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Map ID — Jackson, Michigan Survey Date: January 2021
Map Prop Quality Year Total Occ. Distance Property Vacant ID Type Rating Built Units Rate To Site* 1 200 MRR A 2020 86 45 47.7% 0.2 2 Albert Kahn Workforce TIG B+ 1927 0 0 - 0.2 3 Elaine TGS B 1976 33 0 100.0% 0.3 4 Francis Senior Lofts TGS B+ 2020 45 0 100.0% 0.5 5 Lofts on Louis MRR A 2018 30 0 100.0% 0.3 901 Alpine Lake MRR C+ 1988 268 3 98.9% 2.3 902 Arbors at Lakeside TAX B+ 2002 112 1 99.1% 2.9 903 Ashton Ridge TAX B 2002 144 0 100.0% 4.0 904 Canterbury House MRT C+ 2006 208 2 99.0% 3.0 905 Cascade Ridge MRR B 1991 215 0 100.0% 3.3 906 Gramm Village MRR C+ 1950 36 0 100.0% 1.5 907 Grand River Ridge MRR C 1968 229 58 74.7% 0.3 908 Heritage Place TAX B+ 2003 88 0 100.0% 2.9 909 Maple Ridge Senior TAX B+ 2001 69 0 100.0% 2.6 910 Maple Ridge West MRT B+ 2004 54 0 100.0% 2.7 911 Oaks MRR B 1973 198 1 99.5% 2.3 912 Victoria Pointe MRR B+ 2001 53 0 100.0% 2.2 913 West Bay Club MRR B- 1972 216 0 100.0% 1.7
*Drive distance in miles
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Properties Surveyed — Jackson, Michigan Survey Date: January 2021 200 Contact: Kat 1 200 N Jackson St, Jackson, MI 49201 Phone: (517) 777-0200 Total Units: 86 UC: 0 Occupancy: 47.7% Stories: 3,4 w/Elevator Year Built: 2020 BR: 0, 1, 2 Vacant Units: 45 Waitlist: None AR Year: Picture Target Population: Family Yr Renovated: Not Rent Special: None Available Notes: Preleasing 9/2020, opened 12/2020, still in lease-up; Rent range based on floor level
Albert Kahn Workforce Contact: Amy 2 214 South Jackson St, Jackson, MI 49201 Phone: (844) 367-8239 Total Units: 0 UC: 73 Occupancy: Stories: 2,3 w/Elevator Year Built: 1927 BR: 1, 2 Vacant Units: 0 Waitlist: None AR Year: 2021 Picture Target Population: Family Yr Renovated: Not Rent Special: None Available Notes: 73 units UC, expect completion 3/2021; Preleasing 1/2021; Tax Credit (47 units); HUD Section 811 (11 units); Income- restricted, not LIHTC (15 units)
Elaine Contact: Tracie 3 101 E. Michigan Ave., Jackson, MI 49201 Phone: (517) 539-0070 Total Units: 33 UC: 0 Occupancy: 100.0% Stories: 8 w/Elevator Year Built: 1976 BR: 1 Vacant Units: 0 Waitlist: 18 mos AR Year: Target Population: Senior 62+ Yr Renovated: 2016 Rent Special: None Notes: Tax Credit; HUD Section 8
Francis Senior Lofts Contact: Erica 4 123 E Wesley St, Jackson, MI 49201 Phone: (517) 513-8192 Total Units: 45 UC: 0 Occupancy: 100.0% Stories: 4 w/Elevator Year Built: 2020 BR: 1, 2 Vacant Units: 0 Waitlist: None AR Year: Picture Target Population: Senior 55+ Yr Renovated: Not Rent Special: None Available Notes: Tax Credit (40 units); HUD Section 8 ( 5 units); Opened 7/2020, 100% occupied 1/2021
Lofts on Louis Contact: Mike 5 209 W Louis Glick Hwy, Jackson, MI 49201 Phone: (517) 879-0453 Total Units: 30 UC: 0 Occupancy: 100.0% Stories: 4 w/Elevator Year Built: 2018 BR: 1, 2 Vacant Units: 0 Waitlist: Yes AR Year: Picture Target Population: Family Yr Renovated: Not Rent Special: None Available Notes:
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Properties Surveyed — Jackson, Michigan Survey Date: January 2021 Alpine Lake Contact: Mary 901 675 W. Alpine Lake Dr., Jackson, MI 49203 Phone: (517) 782-5558 Total Units: 268 UC: 0 Occupancy: 98.9% Stories: 2.5 Year Built: 1988 BR: 0, 1, 2 Vacant Units: 3 Waitlist: None AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes: Rent range based on patio/balcony & fireplace
Arbors at Lakeside Contact: Jenna 902 2921 Woods Circle Dr, Jackson, MI 49203 Phone: (517) 787-8104 Total Units: 112 UC: 0 Occupancy: 99.1% Stories: 2 Year Built: 2002 BR: 1, 2, 3 Vacant Units: 1 Waitlist: 130 HH AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes: Tax Credit
Ashton Ridge Contact: Crystal 903 2907 Ashton Ridge Dr, Jackson, MI 49201 Phone: (517) 788-5576 Total Units: 144 UC: 0 Occupancy: 100.0% Stories: 2 Year Built: 2002 BR: 1, 2, 3 Vacant Units: 0 Waitlist: None AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes: Tax Credit
Canterbury House Contact: Kaitlyn 904 241 Oakgrove Ave., Jackson, MI 49203 Phone: (517) 768-9800 Total Units: 208 UC: 0 Occupancy: 99.0% Stories: 2 Year Built: 2006 BR: 1, 2, 3 Vacant Units: 2 Waitlist: Yes for Tax credit list AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes: Market-rate (36 units); Tax Credit (172 units); Rents change weekly
Cascade Ridge Contact: Mary Joe 905 2000 Cascade Ridge Dr., Jackson, MI 49203 Phone: (517) 787-4343 Total Units: 215 UC: 0 Occupancy: 100.0% Stories: 2 Year Built: 1991 BR: 1, 2 Vacant Units: 0 Waitlist: 3 mos AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes:
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Properties Surveyed — Jackson, Michigan Survey Date: January 2021 Gramm Village Contact: Kelly 906 1609 W. Franklin St., Jackson, MI 49203 Phone: (517) 750-1109 Total Units: 36 UC: 0 Occupancy: 100.0% Stories: 2 Year Built: 1950 BR: 2 Vacant Units: 0 Waitlist: 5 HH AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes:
Grand River Ridge Contact: Terri 907 308 Van Buren St., Jackson, MI 49201 Phone: (517) 962-5742 Total Units: 229 UC: 0 Occupancy: 74.7% Stories: 3.5 w/Elevator Year Built: 1968 BR: 1, 2, 3 Vacant Units: 58 Waitlist: None AR Year: Target Population: Family Yr Renovated: 2003 Rent Special: None Notes:
Heritage Place Contact: Jenna 908 2900 Heritage Pl Dr, Jackson, MI 49203 Phone: (517) 788-7440 Total Units: 88 UC: 0 Occupancy: 100.0% Stories: 3 w/Elevator Year Built: 2003 BR: 1, 2 Vacant Units: 0 Waitlist: 30 HH AR Year: Target Population: Senior 55+ Yr Renovated: Rent Special: None Notes: Tax Credit
Maple Ridge Senior Contact: Sandy 909 110 N Dettman Rd., Jackson, MI 49200 Phone: (517) 817-1850 Total Units: 69 UC: 0 Occupancy: 100.0% Stories: 3 w/Elevator Year Built: 2001 BR: 1, 2 Vacant Units: 0 Waitlist: 30*40% 3years /50-60%6 AR Year: Target Population: Senior 55+ Yr Renovated: Rent Special: None Notes: Tax Credit
Maple Ridge West Contact: Sandy 910 171 Peach St., Jackson, MI 49202 Phone: (517) 788-6499 Total Units: 54 UC: 0 Occupancy: 100.0% Stories: 1,2 w/Elevator Year Built: 2004 BR: 1, 2 Vacant Units: 0 Waitlist: 54 HH AR Year: Target Population: Senior 55+ Yr Renovated: Rent Special: None Notes: Market-rate (31 units); Tax Credit (23 units)
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Properties Surveyed — Jackson, Michigan Survey Date: January 2021 Oaks Contact: Kim 911 1300 Tanbark Cir., Jackson, MI 49203 Phone: (517) 782-2325 Total Units: 198 UC: 0 Occupancy: 99.5% Stories: 2,2.5 Year Built: 1973 BR: 1, 2, 3 Vacant Units: 1 Waitlist: None AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes: 1-br higher rent due to units with a balcony
Victoria Pointe Contact: Shannon 912 243 Depuy Ave, Jackson, MI 49203 Phone: (517) 768-9900 Total Units: 53 UC: 0 Occupancy: 100.0% Stories: 2 Year Built: 2001 BR: 1, 2, 3 Vacant Units: 0 Waitlist: 6 mos AR Year: Target Population: Family Yr Renovated: Rent Special: None Notes: 2-br rent range based on units without a den, unit location & view
West Bay Club Contact: Carol 913 1500 W. North St., Jackson, MI 49202 Phone: (517) 782-0555 Total Units: 216 UC: 0 Occupancy: 100.0% Stories: 2.5 Year Built: 1972 BR: 1, 2 Vacant Units: 0 Waitlist: None AR Year: Target Population: Family Yr Renovated: 2003 Rent Special: None Notes:
Bowen National Research A-7
Utility Allowance — Jackson, Michigan Survey Date: January 2021
Source: Michigan State Housing Development Authority Effective: 01/2021
Monthly Dollar Allowances
Garden Townhome 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Natural Gas 17 20 23 27 30 34 30 35 38 41 44 49 +Base Charge 13 13 13 13 13 13 9 9 9 9 9 9 Bottled Gas 53 63 73 84 94 105 94 110 119 127 136 144 Heating Electric 28 33 45 57 70 82 41 48 63 78 93 107 Heat Pump 0 0 0 0 0 0 0 0 0 0 0 0 Oil 59 70 82 94 106 118 105 124 133 143 152 161 Natural Gas 2 2 3 4 5 6 2 2 3 4 5 6 Bottled Gas 6 7 9 12 15 18 6 7 9 12 15 18 Cooking Electric 6 7 11 14 17 20 6 7 11 14 17 20 Other Electric 23 27 38 49 60 70 28 33 47 60 73 86 +Base Charge 9 9 9 9 9 9 9 9 9 9 9 9 Air Conditioning 3 4 6 7 9 10 4 5 6 8 10 12 Natural Gas 4 5 8 10 12 14 6 7 9 12 15 18 Bottled Gas 14 16 23 31 38 45 17 20 29 38 47 56 Water Heating Electric 16 19 25 30 35 71 21 24 31 37 44 51 Oil 15 18 26 34 42 50 19 23 33 43 53 63 Water 19 21 36 57 78 99 19 21 36 57 78 99 Sewer 25 28 46 74 101 129 25 28 46 74 101 129 Trash Collection 17 17 17 17 17 17 17 17 17 17 17 17
Internet* 20 20 20 20 20 20 20 20 20 20 20 20 Cable* 20 20 20 20 20 20 20 20 20 20 20 20 Alarm Monitoring* 0 0 0 0 0 0 0 0 0 0 0 0
* Estimated- not from source
Bowen National Research - Utility Allowance: MI-Region C (01/2021) A-8
Addendum B:
Non-Conventional Rentals
BOWEN NATIONAL RESEARCH B-1
In Downtown Square Year Address City Zip Rent Bdrm. Bath Feet Built Source Type 317 West High Street Jackson 49203 $850 4 1 N/A 1920 ForRent Single-family home Outside of Downtown Square Year Address City Zip Rent Bdrm. Bath Feet Built Source 605 1/2 South Grinnell Street Jackson 49203 $750 2 1 1,000 N/A Zillow Single-family home 2521 Overhill Road Jackson 49203 $1,000 2 1 864 N/A Zillow Single-family home 130 Wright Street Jackson 49203 $1,200 2 2 2,384 1930 Zillow Single-family home Apartment in a single- 315 West Trail Street Jackson 49201 $595 2 1 N/A 1900 Zillow family home 119 North Pleasant Street Jackson 40202 $750 2 1 1,000 1910 Apts.com Townhome Apartment in a 24-unit 208 East Steward Avenue Jackson 49201 $650 1 1 600 N/A Apts.com building Apartment in a 24-unit 208 C Steward Avenue Jackson 49201 $700 2 1 600 N/A Apts.com building Apartment in a 24-unit 212 B Steward Avenue Jackson 49201 $700 2 1 600 N/A Apts.com building Apartment in a 24-unit 212 C Steward Avenue Jackson 49201 $700 2 1 600 N/A Apts.com building Apartment in a 24-unit 504 C Wildwood Avenue Jackson 49201 $750 3 1 800 N/A Apts.com building 206 2nd Street Jackson 49201 $750 2 1 N/A 1890 Apts.com Apartment 2926 Francis Street Jackson 49203 $875 2 1 N/A N/A Apts.com Apartment 908 Wildwood Avenue Jackson 49202 $649 2 1 N/A 1890 Zillow Duplex 1707 4th Street Jackson 49203 $725 2 1 N/A 1927 Zillow Duplex 411 South West Avenue Jackson 49201 $715 3 1 N/A 1920 Zillow Tri-plex 808 Bellevue Avenue Jackson 49202 $1,025 3 1 1,160 N/A Zillow Single-family home Apartment in single-family 502 West Biddle Street Jackson 49203 $475 1 1 N/A 1930 Zillow home Apartment in single-family 502 West Biddle Street #D Jackson 49203 $495 1 1 N/A 1930 Zillow home 614 Madison Street Jackson 49202 $750 2 1 1,211 1920 Zillow Duplex 1215 Maple Avenue Jackson 49203 $495 1 1 800 1920 Zillow Three-unit building 331 North Bowen Street Jackson 49202 $650 2 1 1,728 1900 Zillow Townhome 409 West Franklin Street Jackson 49201 $1,200 4 2 1,278 1900 Doorstep Single-family home 212 North Pleasant Street Jackson 49202 $1,000 4 1 1,336 1900 Doorstep Single-family home 1909 Plymouth Street Jackson 49203 $900 4 1 1,472 1900 Doorstep Single-family home 2118 Crest Avenue Jackson 49203 $885 2 1 800 1930 Doorstep Single-family home 829 Foote Street Jackson 49202 $845 3 1 1,022 1936 Doorstep Single-family home 434 Orange Street Jackson 49202 $950 3 2 1,200 1940 Doorstep Single-family home 918 Wayne Street Jackson 49202 $900 2 1 816 1930 Zillow Single-family home 1033 Lansing Avenue Jackson 40202 $595 1 1 1,608 1923 Zillow Single-family home Single-family home 509 3rd Street Jackson 49203 $450 1 1 600 N/A Doorstep (12-unit building) 516 North State Street Jackson 49201 $950 3 2 N/A 1920 Zillow Single-family home N/A – Not Available
BOWEN NATIONAL RESEARCH B-3