RES prepares market studies for both for-sale and rental single-family and multifamily developments in urban, suburban and rural settings. In addition to general occupancy projects, we also study senior independent living developments. RES draws on our expertise in single-use projects to evaluate the market support for individual components of a mixed-use development. We advise clients on opportunities to create synergies between the uses and how placement of each use within the overall design can improve or diminish marketability.
Selected Engagements
Drexel University and the Powelton Village Civic Association
Demographic Analysis and Homeownership Strategy
RES was part of a team selected to prepare a demographic analysis and homeownership strategy for Powelton Village, a traditionally stable neighborhood of large historic Victorian homes, immediately adjacent to Philadelphia’s Drexel University. Over the past two decades, Drexel has transitioned from a commuter school to a residential research university and has significantly expanded undergraduate enrollment. These changes have created a strong market for student rental housing in the surrounding neighborhood, and homeownership rates have declined precipitously. Together the University and the Powelton Village Civic Association (PVCA) have set targets to increase the homeownership rate over the next ten years. The demographic analysis was designed to document block-by-block neighborhood change since 1990 and to provide a baseline against which future tenure changes can be measured. RES analyzed market conditions impacting the neighborhood, including quantifying the premium that investors are willing to pay for a property compared to owner-occupant buyers. RES identified development sites and areas of the neighborhood best suited for additional homeownership development and proposed strategies to discourage absentee investors and “level the playing field” between investor and owner-occupant purchasers.
Dranoff Properties
Market Analysis for the One Theater Square Mixed-Use Development in Newark, New Jersey
RES prepared market analyses for the components of the proposed One Theater Square commercial and residential development located in Newark’s Central Business District across Center Street from the New Jersey Performing Arts Center. The building will have approximately 250 residential units, at least 20,000 square feet of commercial/retail space, and a parking garage with capacity for over 750 cars. RES addressed the market for upscale residential rental units at this location, which is benefitting from the revitalization that is occurring in Newark but is still a relatively untested location. We also analyzed potential market support for a component of housing for artists.
In addition, the market analysis for commercial/retail space included an analysis of various components of demand for the space including demand generated by patrons of NJPAC, downtown workers, and students, and other sources. Because of the site’s proximity to a Newark Light Rail station, Gateway Center, and universities, RES delineated a walkable trade area and analyzed potential retail uses that would fill gaps existing in the market. We also analyzed the potential for the location to attract an entertainment-oriented venue that would expand the offerings in the immediate area beyond those offered by NJPAC and that would expand the commercial/retail space in the development to a second level of the building.
National Real Estate Investment Firm
Highest and Best Use Analysis and Financial Modeling for a 60-Acre Redevelopment Site
A major national commercial real estate investment firm owned a 60-acre suburban office park in an area that recently was rezoned to provide incentives for mixed-use pedestrian-oriented redevelopment. As a result of this rezoning, our client’s asset could be approved for development of several million additional square feet of residential and commercial space. The client commissioned a master plan for build out of the site and retained RES to determine the type and scale of residential and commercial real estate uses that would have market support in this location. After preparing the initial market study, RES completed financial analyses of various development scenarios to identify the mixed-use development program that resulted in the best return to the investment firm.
Goldman Sachs & Co.
Market Analysis of Privatized Military Housing
Goldman Sachs & Co. required a market study in connection with an offering of $274 million of Taxable Military Housing Revenue Bonds to finance the construction and rehabilitation of over 2,000 units of privatized military housing at Fort Dix and McGuire Air Force Base in Burlington County, New Jersey. Because service members will not be required to live in the privatized housing, it is critical that the units be competitive in the market. RES documented market support for the proposed units and provided suggestions to improve the marketability of selected unit types. Our findings were based on a detailed analysis of the proposed residential units, plans for future military operations at the joint bases, military compensation and housing allowance levels, and the performance and quality of competitive housing options in the off-base private market.
RES subsequently teamed with another firm to prepare market studies for the privatization of Navy Southeast housing. Our responsibility included analyses of housng markets influencing privatized housing at installations in Charleston, SC; Kings Bay, GA; Gulfport, MS; Fort Worth, TX; and Pensacola, Milton, and Panama City, FL.
Genterra
Single-Family Homeownership and Rental Apartment Housing Market Overview
Genterra was considering the development of an 88 acre tract in East Cocalico Township, Lancaster County with a mix of up to 550 new homeownership and rental housing units. The area surrounding the site was experiencing substantial growth due to its location along the Pennsylvania Turnpike. Genterra was working with a land planner to create a site plan and needed assistance with determining the appropriate unit mix to incorporate into the final plan. They retained RES to assist them with identifying the optimal mix of residential units evidencing absorption potential, including single-family detached houses, townhouses, condominiums, rental apartments and age-restricted housing for residents age 55 and older. They also needed assistance in determining the appropriate square feet, bedroom and bathroom configuration and parking requirements to maximize the absorption pace and determine the number of units that the site could conceivably accommodate. RES analyzed demand factors and competitive supply indicators that could assist Genterra with making their decision. RES also provided an achievable pricing scenario for each product type.
Private Developer / Investor
Market Analysis, Proposed Market-Rate Apartments, Monroe Township, Gloucester County, NJ
For a private developer/investor, RES conducted a market analysis for a 232-unit rental apartment complex that would be located adjacent to a planned community shopping center. RES assessed the attractiveness of the site and its location, analyzed demand demographics for the market area, and provided detailed information on existing rental properties serving the market. We recommended an appropriate mix of unit types and sizes, suggested appropriate project and unit features, and provided estimates of achievable rents.