Belmar Development Market Analysis of @Water Residential Condominium Development Detroit, Michigan

Grayhaven Marina Village is an existing affordable multi-family development currently consisting of 190 apartment units originally constructed in 1988. MSHDA, the noteholder, required Allen & Associates to evaluate four possible redevelopment scenarios: as a 100% tax credit property with all units at 60% of AMI; as a 100% market rate property that is conventionally financed and operated; as a total condominium conversion; or mixed use including condominium conversion for the townhouse units and market rate rental use for the apartments. The subject property is an open age community.

Allen & Associates professionals were retained for a comprehensive market and feasibility analysis for the subject property. The function of this report was to assess the marketability of the subject property for internal decision-making purposes

We evaluated two market areas to determine from where apartment renters and condominium purchasers would be drawn. We identified and analyzed the average household age, income, and tenure within the market area for both market-rate rents, 60% Average Median Income, and mixed tenure.

The condominium market analysis had a larger Primary Market Area to evaluate from where purchasers would come. Our study tracked over 1,093 units of comparable flat-styled condominiums in the market area. About 5,165 units were estimated to be available within planned or proposed units in the market area at the point of entry of the subject property.

Allen & Associates evaluated a mixed-use for both condominium and rental market. We assessed income and expense for partial condominium and apartment conversions. Financing measures were analyzed. We determined that including the four redevelopment options, there are also the options of razing the building to sell the vacant land and complete property redevelopment.

The apartment study used a small Primary Market Area. Allen & Associates assessed population, housing, income, rent, substandard and competitive housing, and tenure to analyze prospective renters in the Primary Market Area.