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Harbor Companies, Avalon Development Feasibility Study Ann Arbor, Michigan

The Harbor Companies have sought the experience and consultation of Allen and Associates for assistance in the full-scale mixed-use retail/residential development of an existing retail site in Ann Arbor, Michigan. The developer contemplated re-developing the site currently occupied by a grocery-anchored strip mall with residences and some supportive retail on Packard Road near the University of Michigan.

Allen & Associates was asked to examine the site and its marketability for residential and retail considerations and provide recommendations. Some of these recommendations are the potential layout of the uses within the site, the sizes of the residential and retail units, amenities for the development, the most likely customer bases and the depth of demand and appropriate rental rates for the retail and residential units

The assignment is further complicated by the necessity to appropriately track bachelor level degree, post-graduate, and professional students, as well as local employment depth and trends.

Allen & Associates determined the market area for the two uses based upon an analysis of the competitive supply of retail within a reasonable drive time, physical and psychological

 

boundaries and, the geographic locations of likely shoppers. The market analysis provided a general discussion of the local housing market, as well as estimates of future demand for the market area.

The demand analysis analyzed data to arrive at estimated demand levels. The indicated demand levels are then further analyzed to arrive at penetration rates and capture rates on a unit type level. The demand analysis section also provides an opinion of residual demand. We then provided an overview and opinion of demand for the proposed subject retail component. Data compiled and analyzed in this section was secured from major brokerage firms, Claritas, U.S. Census, Site-to-Do-Business and Costar. Demand potential from inside and outside of the market area was examined

From these analyses estimates for absorption rates and stabilization dates were developed. Based upon our analysis we determined that there was in fact sufficient demand in the market for this proposed development

Allen & Associates Appraisal Group Troy

5700 Crooks Road
Suite 200
Troy, MI 48098
Phone: (248) 433-9630
Fax: (248) 433-1314



Allen & Associates Appraisal Group Detroit

4444 Second Avenue
Detroit, MI 48201
(313) 753-1715

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