MARKET FEASIBILITY STUDY Skygarden Miami Apartments
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MARKET FEASIBILITY STUDY Skygarden Miami Apartments Miami-Dade County, Florida Site Inspection Date: 01/14/2021 Prepared For: Ceo Contract, Inc. Prepared By: Reinhold P. Wolff Economic Research, Inc. Irene Ruiz, President January, 2021 Reinhold P. Wolff Economic Research, Inc. Serving Florida Since 1961 REINHOLD P. WOLFF ECONOMIC RESEARCH, INC. 43034303 Northeast NE 1st Terrace,1st Terrace Suite, Suite 3 3 OaklandOakland Park, Park, Florida FL 33334 33334 PHONEPHONE 954-630-1844 954630-1844 FAX 954-630-1516 FAX 954-630-1516 E-MAIL [email protected] E-MAIL [email protected] January 29, 2021 Celal Ozcan President CEO Contract, Inc. 1019 Kane Concourse, Suite #202-E Bay Harbor, FL 33154 Dear Mr. Ozcan: I am pleased to submit a copy of our completed market feasibility study for the proposed 341 unit Skygarden Miami rental apartment development proposed for a site in North Miami, Miami-Dade County, Florida. We have examined the current and anticipated near-term future market conditions for rental apartments in Miami-Dade County and the Northeast Dade Market Area, the competitive environment in which the development would need to operate and the demand for additional apartments of the rent character recommended. I will be pleased to answer any questions which you or your associates may have at your convenience. With best regards, I am, Sincerely, Irene Ruiz President IR/ao TABLE OF CONTENTS I – INTRODUCTION .............................................................................................. I – 1-3 A. Purpose Of Study ......................................................................................................1 B. General Background….. ...........................................................................................1 C. Scope Of Study .........................................................................................................1 D. Location Considerations ...........................................................................................2 II – POPULATION AND HOUSING GROWTH ............................................... II – 1-6 A. Miami-Dade County .................................................................................................1 1. Population Growth Patterns ................................................................................1 2. Growth Of Households .......................................................................................1 3. Housing Growth Patterns ....................................................................................2 4. Sources Generating Population And Housing Growth .......................................2 a. Employment ............................................................................................2 b. Retiree Influx ..........................................................................................3 c. Other Source ...........................................................................................3 B. The Northeast Dade Market Area Growth Trends ....................................................3 1. Growth Of Population .........................................................................................4 2. Growth Of Households .......................................................................................4 3. Growth Of Housing.............................................................................................5 C. Character Of Population/Households - Northeast Dade Market ...............................5 III – RENTAL APARTMENT MARKET CONDITIONS .................................III – 1-8 A. Miami-Dade County Market Conditions ..................................................................1 1. Inventory Trends And Vacancy Rates ................................................................1 2. Absorption Of New Rental Units ........................................................................2 3. Apartment Rents Trends .....................................................................................3 B. The Northeast Dade Area Rental Market ..................................................................3 1. Vacancy Rate And Inventory Trends ..................................................................3 2. Absorption Of New Rental Apartments ..............................................................4 3. Apartment Rent Trends .......................................................................................5 C. The Non-Apartment “ Shadow” Rental Market........................................................5 D. Forecast Of Apartment Market Trends .....................................................................7 IV –THE COMPETITIVE ENVIRONMENT ..................................................... IV – 1-4 A. General Comparable/Competitive Environment.......................................................1 B. Summary Character Of Apartment Developments Examined .................................1 1. Mix Of Unit Types ..............................................................................................1 Reinhold P. Wolff Economic Research, Inc. Serving Florida Since 1961 TABLE OF CONTENTS (CONTINUED) 2. Square Footage Sizes ..........................................................................................2 3. Rent Ranges ........................................................................................................2 4. Unit Features And Amenities..............................................................................3 5. Market Status Of The Comparable Developments .............................................3 C. Planned/Proposed And Under Construction Developments .....................................3 V –FORECAST OF RENTAL HOUSING DEMAND ........................................ V – 1-6 A. Miami-Dade County Rental Housing Demand .........................................................1 B. Rental Housing Demand - The Northeast Dade Market Area ..................................1 C. Existing Demand For Multi-Family Apartments ......................................................2 D. Demand For Market Rate Apartments ......................................................................3 E. Demand For The Subject Skygarden Miami Apartments .........................................4 F. Need For Additional Comparable Apartments .........................................................4 G. Market Capture And Penetration Rates ....................................................................5 VI – CONCLUSIONS/RECOMMENDATIONS ................................................. VI– 1-5 A. Summary Of General Conclusions ...........................................................................1 B. Recommendations/Review Of Proposed Development Parameters .........................2 1. Mix Of Unit Types ..............................................................................................2 2. Square Footage Sizes (Livable Area) .................................................................3 3. Unit Features And Amenities..............................................................................3 4. Proposed Rents....................................................................................................4 5. Absorption Potential ...........................................................................................5 Reinhold P. Wolff Economic Research, Inc. Serving Florida Since 1961 CHAPTER I INTRODUCTION A. Purpose Of Study The purpose of this study is to examine the market prospects for a proposed 341 unit market rate apartment development planned for a site located in the City of North Miami Beach, Miami- Dade County, Florida. B. General Background The developer plans to build one 19-story highrise building rental apartment development on a rd th site located on the northwest side of N.E. 163 street and N.E. 19 avenue in the City of North Miami Beach, Miami-Dade County, Florida. The proposed Skygarden Miami development will consist of 341 apartment units and 12,635 square feet of retail space. The developer plans to offer 134 or 39.3% of the apartments as one-bedroom/one-bath units ranging from 593 to 674 and averaging 628 square feet of livable area. A total of 127 or 37.2% of the apartments are to be two-bedroom/one-bath ranging from 640 to 842 square feet and averaging 707 square feet of livable area. Two-bedroom/two-bath apartments are to account for 80 or 23.5% of the units planned and they are to offer from 723 to 991 square feet of livable area and average 823 square feet. (See Exhibit A.) The subject Skygarden Miami will offer a wide range of interior unit features and recreational amenities as are detailed in Exhibit A of this report. C. Scope Of Study This study examines all aspects of the current and anticipated future trends in the rental apartment market of Miami-Dade County (the secondary market area) and the Northeast Dade Market Area (the Primary Market Area) for the subject proposed development. The study examines the historical, current and forecasted population, household, and housing growth of Miami-Dade County and the Northeast Dade Market Area. These data are utilized to estimate the current and forecasted demand for rental housing. The report also examines the character of households in the County and the market area, including renter household incomes and rent affordability. The character of housing currently utilized on a rental basis, including type and rents paid, is also examined in the report. I - 1 Reinhold P. Wolff Economic Research, Inc. Serving