Real Estate Market Feasibility Study: Assignment 2
Data Sources (with links) required for this assignment:
RealPage Explore
Google Maps
Google Earth
Google Street View
PG Atlas (Prince George's County GIS Website)
Census Bureau
University System of Maryland IRIS
Read the scenario and review the data sites provided in Canvas to answer the following:
1. Assessing the subject site:
a. Use Google Earth/Google Maps/Google Street View to inspect the site and its surrounding environment virtually and provide a brief narrative description of the general physical characteristics of the property and the immediate area. (3 pts)
b. List four locational advantages or nearby demand drivers for an apartment use at the subject (nearby major employers, transit stations, topography, highways, retail centers, recreational facilities, etc.) and one potential disadvantage. (5 pts)
c. Using PG Atlas, identify the land area of the (three) subject parcels (acres or square feet) and the current zoning designation. (2 pts)
d. Using the zoning regulations, determine and describe whether or not there are any: (i) density limits, (ii) height restrictions, or (iii) lot coverage restrictions on the subject site. (3 pts)
2. Assessing Demand:
a. Using the Census Bureau Data portal, complete the table below to determine the household and income growth for the market area over the five years ending 2022 (the most recent vintage available). Hint: Use data table S1903 (Median Income in the Past 12 Months) (8 pts)
Household and Income Growth in Primary Market Area
|
|
College Park, MD
|
Hyattsville, MD
|
Riverdale Park, MD
|
Market Area
|
|
No. of Households (2022)
|
|
|
|
|
|
No. of Households (2017)
|
|
|
|
|
|
Total 5-year Growth (%)
|
|
|
|
|
|
Annual Growth Rate (%)
|
|
|
|
|
|
|
|
|
|
|
|
Median Household Income (2022)
|
|
|
|
|
|
Median Household Income (2017)
|
|
|
|
|
|
Total 5-year Growth (%)
|
|
|
|
|
|
Annual Growth Rate (%)
|
|
|
|
|
b. Using USM’s IRIS database, complete the following table to analyze student enrollment trends. (3 pts)
University of Maryland College Park Enrollment
|
|
Undergraduate
|
Graduate
|
Total
|
|
Enrollment (2023)
|
|
|
|
|
Enrollment (2018)
|
|
|
|
|
Total 5-year Growth (%)
|
|
|
|
|
Annual Growth Rate (%)
|
|
|
|
3. Assessing Supply:
To assess competitive market conditions, use RealPage Explore to select five comparable conventional apartment properties and five student housing apartment properties within the subject’s primary market and fill out the following tables. When selecting comparables, consideration should be given to their location, age, performance, and size. Newer, larger comparables with higher rents should be given priority. (12 pts)
Note:
· Student housing properties on RealPage have an asterisk (*) beside their name.
· Remember to weight (by unit or bed) averages for the Primary Market Area.
Conventional Apartment Properties
|
Property Name
|
Year Built
|
|
# of Units
|
Avg. SF
|
Vacancy Rate
|
Avg. Eff. Rent/Unit
|
Avg. Eff. Rent per SF
|
|
Property #1
|
|
|
|
|
|
|
|
|
Property #2
|
|
|
|
|
|
|
|
|
Property #3
|
|
|
|
|
|
|
|
|
Property #4
|
|
|
|
|
|
|
|
|
Property #5
|
|
|
|
|
|
|
|
|
Primary Market Area
|
|
|
|
|
|
|
|
Student Housing Apartment Properties
|
Property Name
|
Year Built
|
Beds
|
Avg. SF
|
Vacancy Rate
|
Avg. Eff. Rent/Bed
|
Avg. Eff. Rent/SF
|
|
Property #1
|
|
|
|
|
|
|
|
Property #2
|
|
|
|
|
|
|
|
Property #3
|
|
|
|
|
|
|
|
Property #4
|
|
|
|
|
|
|
|
Property #5
|
|
|
|
|
|
|
|
Primary Market Area
|
|
|
|
|
|
|
4. Based on the limited analysis conducted,
a. Should the owner pursue student housing apartments or conventional apartments at the subject? (2 pts)
b. Using your answer to 4a. and given the performance of the comparables for this product type, what effective average rent per SF can a developer reasonably expect to achieve at the subject? Choose one of the following 50-cent ranges: (2 pts)
a) $1.51-$2.00/SF
b) $2.01-$2.50/SF
c) $2.51-$3.00/SF
d) $3.01-$3.50/SF
e) $3.51-$4.00/SF
f) $4.01-$4.50/SF