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<br /> <br /> <br />Hillside Heights Apartments, Elk River, Minnesota <br /> <br />Market Analyst Professionals, LLC 4 April 24, 2020 <br />Section 2: Executive Summary <br />AMI <br />Target # of Units <br /># of <br />PBRA <br />Units <br /># of <br />Baths Type Average Sq. <br />Footage <br />Contract <br />Rent <br />Utility <br />Allowance Gross Rent Max Gross <br />Rent <br />Maximum <br />Income <br />Total 55 8 $64,530 <br />Summary 1 BR 13 8 $49,680 <br />1 BR-Apt 30% 4 4 1.0 Apt 680 $722 $62 $784 $582 $24,840 <br />1 BR-Apt 50% 3 1.0 Apt 680 $908 $62 $970 $970 $49,680 <br />1 BR-Apt 50% 4 4 1.0 Apt 680 $722 $62 $784 $970 $49,680 <br />1 BR-Apt 60% 2 1.0 Apt 680 $1,102 $62 $1,164 $1,164 $49,680 <br />Summary 2 BR 28 0 $55,860 <br />2 BR-Apt 50% 14 1.0 Apt 980 $1,083 $80 $1,163 $1,163 $55,860 <br />2 BR-Apt* 60% 14 1.0 Apt 980 $1,316 $80 $1,396 $1,396 $55,860 <br />Summary 3 BR 14 0 $64,530 <br />3 BR-Apt 50% 7 2.0 Apt 1,280 $1,246 $98 $1,344 $1,344 $64,530 <br />3 BR-Apt 60% 7 2.0 Apt 1,280 $1,515 $98 $1,613 $1,613 $64,530 <br /> <br /> Based on the analysis within this report, the proposal will be successful as is, no changes are <br />deemed necessary. The site is located in a mixed-use area but with LIHTC residential uses located <br />a short distance from the site. Amenities and employment opportunities are located in close <br />proximity with easy access to Minneapolis to the southeast. Household growth in the area is <br />forecasted to increase through 2025 with the rate within the PMA exceeding the overall rate of the <br />state and county. The Minneapolis MSA has outperformed the state average in terms of the <br />unemployment rate in recent years and employment has increased annually each of the past nine <br />years. Derived demand statistics for the subject suggest sufficient demand to absorb the proposal. <br />Finally, supply side data indicates rents for the subject will be competitively positioned in the area <br />and the subject will be well positioned in the market and competitive with comparable projects <br />which have reported very strong occupancy indicative of strong demand in the area. As a result, <br />the development of the proposal to more adequately serve the PMA’s population is appropriate. <br /> <br /> The subject is located in the city of Elk River within southeast Sherburne County, Minnesota. Elk <br />River is located approximately 8 miles north of Interstate 94. Both I-94 and US-10 provide <br />linkages to Minneapolis. Additionally, the Northstar commuter rail station is located just south of <br />the site. The site for the project is an occupied lot (with a home to be demolished) located <br />southeast of Twin Lakes Road and 175th Avenue in a mixed-use area. Land to the north of the site <br />is vacant and wooded, a single-family home in good condition is located to the immediate east,