Springarn Development Market Analysis of Chene West Residential Condominium Development (The Watermark)
Detroit, Michigan

Riverside development has begun on former industrial and residential land along the Detroit River. Springarn Development sought Allen & Associates to evaluate the development potential of a 111-unit luxury condominium development and provide conclusions and recommendations as to market-appropriate pricing, features and absorption. The study area was the entire city of Detroit and nearby northern suburbs, where prospective urban condominium purchasers live.

Allen & Associates professionals were retained to evaluate the site and neighborhood, analyze the regional economy and a condominium residential market, and make conclusions and recommendations for unit size, unit features, unit pricing and unit absorption.

We evaluated the market area to determine from which 60-80% of the purchasers for the Chene West units would be drawn. We identified and profiled the socio-economic underpinnings of the primary market area in which the study area would compete including an extensive analysis of employment issues, focusing on trends of urban professionals seeking luxury condominiums.

We identified and analyzed the average household age, income, and tenure within the market area, Detroit MSA, and the United States itself, focusing on the primary market area. Using Claritas PRIZM NE information, we determined the types of households considered most likely to represent strong purchase prospects for the Chene West development. The supply of existing and pipeline planned townhome and flat condominiums were evaluated for their character and potential competitive impact on the primary market area.

Our study tracked over 667 units of comparable townhome and flat-styled condominiums in the market area. About 300 units were estimated to be available within planned or proposed units in the market area at the point of entry of the subject property.

Subsequent to our initial market examination, Springarn Development retained us for continuing consultation services for their development, renamed The Watermark Detroit.