Market Feasibility Analysis Renaissance Apartments II Virginia Beach, Virginia Prepared for: Renaissance Apts. II, L.P. Project #18-5738 Effective Date: February 16, 2018 Site Inspection: February 16, 2018 Renaissance Apartments I Table of Contents TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................II TABLES, FIGURES AND MAPS.................................................................................................V EXECUTIVE SUMMARY.........................................................................................................VII 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 ..........................................................................................................................2 F. Scope of Work ..........................................................................................................................................2 G. Report Limitations ....................................................................................................................................3 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......................................................................................................................5 1. Project Description ...........................................................................................................................5 2. Other Proposed Uses ........................................................................................................................7 3. Zoning and Government Review .......................................................................................................7 4. Proposed Timing of Development .....................................................................................................7 III. SITE AND NEIGHBORHOOD ANALYSIS......................................................................... 8 A. Site Analysis..............................................................................................................................................8 1. Site Location.....................................................................................................................................8 2. Size, Shape and Topography..............................................................................................................8 3. Existing Uses.....................................................................................................................................8 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 Transit ............................................................................................................14 4. Availability of Inter Regional Transit................................................................................................14 5. Pedestrian Access ...........................................................................................................................15 6. Accessibility Improvements Under Construction and Planned..........................................................15 D. Public Safety...........................................................................................................................................15 E. Residential Support Network...................................................................................................................17 1. Key Facilities and Services near the Subject Site ..............................................................................17 2. Essential Services............................................................................................................................18 3. Commercial Goods and Services......................................................................................................22 4. Recreational and Other Community Amenities................................................................................23 IV. ECONOMIC CONTEXT ................................................................................................ 24 A. Introduction............................................................................................................................................24 B. Resident Unemployment.........................................................................................................................24 Page ii Renaissance Apartments I Table of Contents C. Commuting Patterns...............................................................................................................................25 D. At-Place Employment..............................................................................................................................25 1. Trends in Total At-Place Employment..............................................................................................25 2. At-Place Employment by Industry Sector.........................................................................................26 3. Major Private Employers.................................................................................................................28 E. Wage Trends...........................................................................................................................................28 V. HOUSING MARKET AREA .............................................................................................. 30 A. Introduction............................................................................................................................................30 B. Delineation of Market Area.....................................................................................................................30 VI. DEMOGRAPHIC ANALYSIS......................................................................................... 32 A. Introduction and Methodology ...............................................................................................................32 B. Trends in Population and Households......................................................................................................32 1. Recent Past Trends .........................................................................................................................32 2. Projected Trends.............................................................................................................................33 3. Building Permit Trends....................................................................................................................33 C. Demographic Characteristics...................................................................................................................34 1. Age Distribution and Household Type..............................................................................................34 2. Renter Household Characteristics....................................................................................................35 D. Income Characteristics............................................................................................................................37 E. Cost-Burdened Renter Households..........................................................................................................38