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<br /> <br /> <br />Hillside Heights Apartments, Elk River, Minnesota <br /> <br />Market Analyst Professionals, LLC 5 April 24, 2020 <br />and to the south is a tree line obscuring the site from what appears to be a poor condition <br />residential building. A short distance south of the site is a Northstar Light Rail Station as well as <br />both Coachman Apartments and The Depot at Elk River Apartments (LIHTC projects detailed in a <br />latter section of this report) and newer residential and commercial development. <br /> <br /> The proposal is located in the city of Elk River, Minnesota, in Census Tract 305.02 of Sherburne <br />County. The PMA is defined by Census Tracts and encompasses an area northwest of Minneapolis <br />including a portion of Census Tracts located in Wright, Hennepin, Sherburne and Anoka Counties. <br />Major factors in defining the PMA were proximity to the site, socioeconomic conditions and <br />competition with surrounding areas. Specifically, the site is located in the city of Elk River near <br />the recently constructed Northstar commuter rail line. Declining proximity to the site was the <br />major factor in limiting the PMA. Specifically, the PMA extends less than 8 miles from the site in <br />all directions. Given the small geographic area it encompasses the PMA should be considered a <br />conservative estimate of demand. <br /> <br /> The most comparable projects to the proposal include general occupancy units operating under <br />income restriction guidelines within the same area as the proposal and offering similar units. <br />Among LIHTC projects those in closest proximity and considered the most comparable to the <br />subject are included—excluding more dated projects. Additionally, two market rate projects are <br />included to gauge hypothetical market rents for the subject. Detailed information on these projects <br />is presented in the following pages. The overall occupancy rate for the most comparable projects is <br />99.7 percent. The subject will offer one- to three-bedroom general occupancy units with <br />comparable amenities and unit sizes to comparable facilities. The development will be the newest <br />project in the area, commanding a premium relative to more dated competitive set projects. <br />Among competitive set projects Coachman limits rents to 50 percent AMI (for 60 percent AMI <br />income restrictions) and these units are shifted in the rent grid. Considering adjustments and <br />projections to market entry the subject’s rents are consistent with MAP’s estimated achievable <br />LIHTC rents and are appropriately positioned relative to hypothetical market. Competitive rents <br />and strong demand for affordable housing in the area offer support for the success of the proposal. <br /> <br /> Reported absorption among competitive set projects has been robust. Maple Village reported one