A Review On The Property And Targeted Market

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Mark I Kenneth H. Adley Marylhurst University Real Estate Development RES 560 A2 Ray Clark August 7, 2016 Mark I A review of the Property and Targeted Market Mark I is an envisioned 118-unit, Class B, 15-story high-rise apartment building, situated 1.5 miles east of the Las Vegas Strip. The property features retail space on the main floor and two out-parcels. The apartment unit mix consists of studios, and 1& 2-bedrooms. The new structure includes amenities such as country club views, outdoor swimming pool and spa, 24-hour front-desk personnel and security-access, in-unit laundry, and monitored underground parking. The purpose of this paper is to critically discuss and review the marketing strategy of the Mark I…show more content…
Market Strategy Market Analysis General market analysis has been conducted regarding the basic demographic data of population and employments trends, income, and age within the local trade areas respectively extending 1 and 3 miles out. Supply factors in real estate of a given trade area reflect the availability and vacancies of space, absorption rates and months of inventory of existing homes/units, and capture or market penetration rates of newly-constructed buildings. Comparables for high-rises on the strip run $1500-$2000 monthly with less space and valet/parking issues. To the north, a comparable tower located on the nearby country club grounds are actually condo rentals, advertising a 584 SF studio for $950 monthly, notwithstanding cumbersome ingress/egress. To the south, bordering University of Nevada-Las Vegas, is another comparable tower with 1-bedrooms of 685 SF and 900 SF renting for $990 and $1025 respectively. The market analysis supports both the need and supply issues facing the targeted renter. There was no change made to rents for the two bedroom units (below). Given that competitive income requirements are 2.5-3 times rent, an increase would be pushing the area’s average income of $43,637 within 1 mile and $46,821 (Loopnet, 2015) within 3 miles. # OF UNITS TYPE UNIT SIZE RENT PER SF Rent Increase 28 Studio 550 SF $750 $1.36 $785 30 1x1 850 SF $900 $1.05 $945 30 1x1.5 850 SF $1,050 $1.24 $1050 30 2x1 1250 SF $1,225
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