Market Feasibility Analysis Block 17 Apartments Norfolk, Norfolk, Virginia Prepared for: Block 17, L.P. Site Inspection: January 18, 2021 Effective Date: January 18, 2021 Block 17 Apartments | Table of Contents TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................. I TABLES, FIGURES AND MAPS ................................................................................................ IV EXECUTIVE SUMMARY ........................................................................................................... 1 I. INTRODUCTION .............................................................................................................. 1 A. Overview of Subject .............................................................................................................................................. 1 B. Purpose ................................................................................................................................................................. 1 C. Format of Report .................................................................................................................................................. 1 D. Client, Intended User, and Intended Use ............................................................................................................. 1 E. Applicable Requirements ...................................................................................................................................... 1 F. Scope of Work ...................................................................................................................................................... 2 G. Report Limitations ................................................................................................................................................ 2 H. Other Pertinent Remarks ...................................................................................................................................... 3 II. PROJECT DESCRIPTION .................................................................................................... 4 A. Project Overview .................................................................................................................................................. 4 B. Project Type and Target Market ........................................................................................................................... 4 C. Building Types and Placement .............................................................................................................................. 5 D. Detailed Project Description ................................................................................................................................. 6 1. Project Description ....................................................................................................................................... 6 2. Other Proposed Uses ................................................................................................................................... 7 3. Proposed Timing of Development ............................................................................................................... 7 III. SITE AND NEIGHBORHOOD ANALYSIS .......................................................................... 8 A. Site Analysis .......................................................................................................................................................... 8 1. Site Location ................................................................................................................................................. 8 2. Existing Uses ................................................................................................................................................. 9 3. Size, Shape, and Topography ....................................................................................................................... 9 4. General Description of Land Uses Surrounding the Subject Site ............................................................... 10 5. Specific Identification of Land Uses Surrounding the Subject Site ............................................................. 11 B. Neighborhood Analysis ....................................................................................................................................... 12 C. Site Visibility and Accessibility ............................................................................................................................ 13 1. Visibility ...................................................................................................................................................... 13 2. Vehicular Access ......................................................................................................................................... 13 3. Availability of Public and Inter Regional Transit ......................................................................................... 14 4. Pedestrian Access ....................................................................................................................................... 14 5. Roadway Improvements under Construction and Planned ....................................................................... 14 6. Public Safety ............................................................................................................................................... 15 D. Residential Support Network .............................................................................................................................. 16 1. Key Facilities and Services near the Subject Site ........................................................................................ 16 2. Essential Services ....................................................................................................................................... 18 3. Shopping .................................................................................................................................................... 20 4. Recreational and Other Community Amenities ......................................................................................... 20 5. Overall Site Conclusion............................................................................................................................... 20 IV. ECONOMIC CONTEXT ................................................................................................ 21 A. Introduction ........................................................................................................................................................ 21 B. Labor Force, Resident Employment, and Unemployment .................................................................................. 21 1. Trends in Annual Average Labor Force, Resident Employment, and Unemployment Rates ..................... 21 2. Trends in Recent Monthly Unemployment Data ....................................................................................... 22 C. Commutation Patterns ....................................................................................................................................... 22 D. At-Place Employment ......................................................................................................................................... 23 1. Trends in Total At-Place Employment ........................................................................................................ 23 Page i Block 17 Apartments | Table of Contents 2. At-Place Employment by Industry Sector................................................................................................... 24 E. Wage Data .......................................................................................................................................................... 26 F. Major Employers ................................................................................................................................................ 27 G. Economic Conclusions and Projections .............................................................................................................. 28 V. HOUSING MARKET AREA .............................................................................................. 29 A. Introduction ........................................................................................................................................................ 29 B. Delineation of Market Area ................................................................................................................................ 29 VI. DEMOGRAPHIC ANALYSIS .......................................................................................... 31 A. Introduction and Methodology .......................................................................................................................... 31 B. Trends in Population and Households ................................................................................................................ 31 1. Recent Past Trends ..................................................................................................................................... 31 2. Projected Trends ........................................................................................................................................ 31 3. Building Permit