Mitchell Market Analysts, Inc.
820 Fort Wayne Avenue, Indianapolis, IN 46204
www.mitchellmarketanalysts.com 317-687-2747
Market Analysis
Southport Mixed Use
Location
2110 E Southport Rd
Southport, IN 46227
Marion County
Prepared for
City of Southport Redevelopment Commission
6901 Derbyshire Rd
Southport, IN 46227
Date of report
May 17, 2017
Updated
June 15, 2017
820 Fort Wayne Avenue Indianapolis, IN 46204
www.mitchellmarketanalysts.com
Page 2
June 15, 2017
Duane Lagreck
City of Southport Redevelopment Commission
6901 Derbyshire Rd
Southport, IN 46227
RE: Market Analysis
Southport Mixed Use
2110 E Southport Rd
Southport, IN 46227
Marion County
File Name: IN-17-08
Mr. Lagreck:
In fulfillment of our agreement, we are pleased to deliver the market study on Southport Mixed Use
located at 2110 E Southport Rd in Southport.
Located within the addenda of the report are the Certification and Market Study Checklist. Thank you
for allowing us to contribute to your project.
Sincerely,
Jennifer Atkinson
Mitchell Market Analysts, Inc.
Jennifer earned the Professional Member Designation from the National Council
of Housing Market Analysts.
Page 3
Contents
Executive Summary ...................................................................................................................... 5
Market Analysis Summary ............................................................................................................ 7
Scope of Work for the Project ....................................................................................................... 8
Development Description ............................................................................................................. 9
Photographs of site .......................................................................................................................... 9
Prior development plans ................................................................................................................ 15
Physical characteristics of the subject site ..................................................................................... 17
Target Market to be served ............................................................................................................ 18
Unit mix and rents .......................................................................................................................... 18
Transit oriented development ........................................................................................................ 19
Land uses around the subject ......................................................................................................... 20
Crime in the PMA ........................................................................................................................... 25
Neighborhood amenities ................................................................................................................ 25
Location of the subject in a desirable site ...................................................................................... 31
Description of the market area ................................................................................................... 35
The Primary Market Area (PMA) for the subject ............................................................................ 35
Market Area Economy ................................................................................................................ 37
Trends in at-place employment...................................................................................................... 37
Employment by industry sector ..................................................................................................... 38
Wages by industry .......................................................................................................................... 39
Major employers ............................................................................................................................ 40
Trends for resident employment and unemployment ................................................................... 43
Conclusion ...................................................................................................................................... 46
Demographic data ...................................................................................................................... 48
Total population and households ................................................................................................... 48
Population and households by age group ...................................................................................... 49
Households by tenure .................................................................................................................... 51
Households by income ................................................................................................................... 52
Average household size .................................................................................................................. 53
Renter households by persons in household ................................................................................. 54
Demand Analysis ........................................................................................................................ 56
Determining income and age-eligible households ......................................................................... 56
Eligible households by income brackets ......................................................................................... 61
Page 4
Movership rate ............................................................................................................................... 61
Recently developed rental units ..................................................................................................... 62
Estimate of absorption period ........................................................................................................ 62
Capture rate .................................................................................................................................... 63
Penetration rate for the PMA ......................................................................................................... 66
Supply Analysis ........................................................................................................................... 67
Occupancy rates of each comparable ............................................................................................ 68
Summary of occupancy rates ......................................................................................................... 69
Market rate comparables ............................................................................................................... 70
Deriving a market rent .................................................................................................................... 81
Derivation of market rent ............................................................................................................... 87
LIHTC comparables ......................................................................................................................... 88
Map of subject relative to all comparables .................................................................................... 94
Comparables for rural developments............................................................................................. 97
Waiting Lists ................................................................................................................................... 97
Availability of other affordable housing units ................................................................................ 97
Building permits .............................................................................................................................. 98
Analysis of commercial use ......................................................................................................... 99
Overview of the national office market ......................................................................................... 99
Overview of Indianapolis office market ....................................................................................... 102
Conclusion of the office market ................................................................................................... 108
Overview of the national retail market ........................................................................................ 109
Overview of Indianapolis retail market ........................................................................................ 113
Conclusion .................................................................................................................................... 114
Conclusions and Recommendations .......................................................................................... 115
Signed Statement ..................................................................................................................... 116
Market Study Analyst Statement of Experience ........................................................................ 117
Market Study Checklist ............................................................................................................. 122
Acknowledgement of Market Analyst .......................................................................................... 123
Addenda ................................................................................................................................... 124
STDB Online Data Sources ............................................................................................................ 124
Example of demand calculation ................................................................................................... 124
Page 5
Executive Summary The following overview highlights the major findings and conclusions reached from information
collected through demographic analysis, economic observations, and survey research of existing
developments.
The subject is called Southport Mixed Use in this report. The site is located at 2110 E Southport
Rd, Southport, IN 46227, in Marion County.
The site is located in census tract 18-097-3810.02. This census tract is not a qualified census
tract. The property has a latitude and longitude of 39.665267 and -86.123569. It is surrounded
by retail properties, residential properties, and offices.
The site formerly had a lumber yard. All improvements have been razed. There is a
revitalization plan that designates the subject site as mixed use. The subject will fit into that
designation perfectly with a mix of retail or office and residential.
The subject will be new construction on 3.25 acres.
The property had been the site of a proposed Low Income Housing Tax Credit award in 2014 as
a senior property. A tax credit award in the state of Indiana during the competitive 9% round is
noteworthy because 12 to 14 projects receive awards out of 60 to 70 applications. The project
fell victim to bad timing with uncertainty rising in the tax credit financing market and the
developer could not find investors to commit.
The site remains an attractive location on which to build a multifamily property in one of the
commercial corridors of Southport. The location also has easy access to Interstate 65 and US
31.
The purpose of this study is to evaluate the site for potential development as a market rate
multifamily property with a commercial tenant.
This analysis is performed assuming the subject would have a total of 95 units with 35 one-
bedroom units and 60 two-bedroom units.
No target rents were provided to the analyst, so the analyst developed a low market rent and a
high market rent for the property depending on some site and unit amenities as described in
this report. The low market rents are $685 for the one-bedroom unit and $738 for the two-
bedroom unit. The high market rents are $735 for the one-bedroom unit and $798 for the two-
bedroom unit.
Page 6
The subject will not be age restricted and will be rented to those households with incomes from
$28,160 to $66,688. This income range includes 39.8% of the renter households (HH) in the
primary market area.
The primary market area is considered the south side of Indianapolis. This area was chosen
based on discussions with leasing agents within the market and assessments of shared
economic conditions.
The rental market in Southport is strong with an average market occupancy of 94.9% and an
average Section 42 occupancy of 94.8%. The survey used in this market study includes 10
market rate properties and the survey was conducted in April and May 2017.
Comparables are amenity-rich. Most have pools and tennis courts and are all-brick
construction, although several of the newer ones are brick and vinyl. However, in this market,
“newer ones” were constructed 17 years ago. Several comparables have landscaped water
features with a fountain.
Although this report does not analyze low-income families, five-year projections from the
American Community Survey in 2015 show that over 44% of the families in the PMA are rent-
overburdened.
This project is not going to be age restricted. However, the analyst notes that projections show
that the senior households 62 and older in the PMA will increase from 2010 to 2022 by over 41
percent.
The feasibility of the subject is excellent. The PMA has a sizable population that is income
qualified for the subject and the population is projected to increase over the next five years.
The current capture rate as a market rate family project is 4.5%.
Absorption is expected to conservatively be 11 to 12 months. This absorption rate assumes
construction is moderate to high quality and the amenities are similar to the comparables.
The market is strong and the site is a good location.
Page 7
Market Analysis Summary
Development Name Southport Mixed Use Total Units 95
Development City Southport Total LIHTC Units 0
Target Population families LIHTC Vacancy Rate 5.2%
New Construction/Rehab/
Adaptive Reuse
New Construction Market Vacancy
Rate
5.1%
Penetration Rate 2.1% (Non age
restricted)
Demographic Data (beginning on page 48)
2010 2016 2019
Population 82,391 89,242 90,872
Renter Households 12,274 34.7% 13,663 38.7% 14,013 38.7%
Renter Households 62+ 2,351 30.1% 2,633 27.3% 2,896 27.6%
Analyst’s Level of Confidence in the Project (beginning on page 115)
High confidence,
no changes needed
X High confidence if
noted changes
occur
Moderate
confidence
Little confidence in
project success
Page 8
Scope of Work for the Project The Scope of Work must include the research and analyses that are necessary to develop credible
assignment results. A Scope of Work is acceptable when it meets or exceeds the expectations of
parties who are regularly intended users for similar assignments and what an analyst’s peers’
actions would be in performing the same or a similar assignment. Therefore, the analyst must
identify and consider:
the client and intended users
the intended use of the report
assignment conditions
typical client expectations
typical work by peers for similar assignments
The purpose of the analysis presented here is to determine the feasibility of the proposed LIHTC
multifamily project discussed within this report. The intended use is to aid the client in developing
plans for the use of the site.
The scope of work is identified here:
NCHMA Standard Both principals of Mitchell Market Analysts have the
Professional Member Designation from the National
Council of Housing Market Analysts. This report primarily
complies with the NCHMA Model Content Standard 3.0,
adopted January 14, 2013.
Property Identification: Southport Mixed Use, Southport, IN
Client City of Southport Redevelopment Commission
Intended User City of Southport Redevelopment Commission
Date of Field Work May 10, 2017
Date of Report May 17, 2017
Market Area and Analysis of
Market Conditions
A complete analysis of market conditions has been made.
Page 9
Development Description This section describes the proposed project as of the date of the fieldwork for this report.
Photographs of site
The site formerly had a lumber yard. All improvements have been razed.
Looking northeast across the site. Most of the site has a fence around the perimeter.
Looking along the southern border of the site, which fronts East Southport Road.
Page 10
These railroad tracks run along the east side of the site.
Standing on the west side of the site on 2nd Street looking south across the site.
Page 11
Standing on 2nd Street looking east across the site.
This is the northern border of the site. There is an elevation change between the site’s northern
border and the unimproved land north of it. Little Buck Creek runs along the north side of the site.
Page 12
The site is bordered by 2nd Street on the west side. This is the northern end of 2nd Street. It crosses
Little Buck Creek but it is not passable.
This is an unused road over Little Buck Creek. The fieldwork was conducted after several weeks of
heavy rainfall and the creek was almost overflowing the road.
Page 13
Looking through the fence southeast across the site.
Page 14
Map
The site is located on the south side of Indianapolis in the Southport area.
Page 15
This map shows the location of the subject site. The improvements shown in this aerial have been
razed.
Prior development plans
The Partnership for Affordable Housing submitted an application for low-income tax credits in the
fall of 2013 and won an award in early 2014. The plan was for 95 one- and two-bedroom units for
seniors. Development work continued through 2015 and then stopped. The analyst spoke to Matt
Gaddis, Director of the Partnership for Affordable Housing, and he indicated they were unable to
get investors lined up for the project. Various factors changed the tax credit financing market and
uncertainty spooked investors.
Page 16
The development of a tax credit project is a complex process. The analyst attended a market
analyst conference in March and other analysts all over the country are also reporting problems
with uncertainty in the tax credit financing market. Finance professionals are lobbying Congress to
fix the rate for tax credits rather than letting them float. According to data provided by Novogradac,
the tax credit percentage has been dropping.
Data from Novogradac shows the rate has been hovering between 7.35% and 7.55%. Note that
during 2016 it was trending downward until it hit a low in August.
Page 17
Physical characteristics of the subject site
This section describes the physical characteristics of the subject.
Site
Location The site is located on the south side of Indianapolis in the Southport area.
Current Use of the Property The site formerly had a lumber yard. All improvements have been razed.
Site Size Total: 3.25 acres
Topography The site slopes on the northern end toward the creek bed.
Current landscaping and
vegetation
There is no existing landscaping.
Visibility Excellent from East Southport Road
Shape The site is roughly rectangular.
Frontage and Accessibility Access is excellent from East Southport Road and South 2nd Street with
frontage on East Southport Road.
Proximity to adverse or undesirable conditions
The site is adjacent to railroad tracks. According to Federal Railroad Administration Office of Safety
Analysis, the tracks have six daily through trains from 6 AM to 6 PM and two nightly trains from 6
PM to 6 AM. The data is current as of 2016.
Railroads cross many areas in the state. The railroad noise and safety will need to be managed. The
previous development at this site planned to landscape with bushes and trees to absorb the noise
and provide a visual barrier.
The analyst recommends some attention to flood maps. The Marion County GIS system shows part
of the parcel is in a floodway.
Page 18
Target Market to be served
The subject will provide new multifamily housing for families with 1 to 4 persons in the household.
Unit mix and rents
This analysis assumes the subject will contain a total of 95 units.
The low and high rents, bedrooms, bathrooms, and size of each unit by rent level are shown in the
following chart.
Utility Allowance
After reviewing what is typical in the market, the analyst assumes that tenants will pay for heat,
cooking, electric, and water heating. The units will have electric heat, electric hot water, and
electric cooking. They will have central air conditioning.
The analyst assumes the subject will pay for water, sewer, and trash; one of the adjustments used
for comparables is the difference in utilities because this impacts the total cost of rentership. The
utility allowance by bedroom type is shown in the following chart.
Unit mix by income level
Unit type # AMI % Bedrooms Bathrooms Unit size, SF
Low Rent
of Subject
High Rent
of subject
One bedroom 35 Market 1 1.0 720 $685 $735Two bedroom 60 Market 2 2.0 900 $738 $798Total 95
1 BR 2 BR
Heating - Electric $52 $64
Cooking - Electric $9 $9
Other Electric $38 $46
Air Conditioning $13 $17
Water Heating - Electric $24 $29
Water $0 $0
Sewer $0 $0
Trash Collection $0 $0
Total $136 $165
Source of utilities: HUD schedule for Marion
County, eff. 1/31/2017
Page 19
Transit oriented development
The Walkscore is a measurement created by Walkscore.com that assesses how car dependent the
location is and the accessibility of public transportation.
The subject has a Walkscore of 43, which indicates the subject is car-dependent.
Source: Walkscore.com
The site has sidewalks along Southport Road. Ingress to and egress from the site will occur from
Southport Road and 2nd Street. There are no traffic controls at the site on Southport Road.
Southport Road has a fair amount of traffic. The city might consider a crosswalk or some other
infrastructure to invest in making the site more walkable.
Page 20
Land uses around the subject
Surrounding land uses include:
North To the north of the subject is a wooded area and creek, followed by auctioneer
Christy’s of Indiana.
South To the south of the subject are Southport Road and commercial/office properties.
East To the east of the subject are railroad tracks followed by commercial and
residential buildings.
West To the west of the subject is the Southport Antique Mall.
The following photographs of the neighborhood were taken by the staff in our office on the day of
the fieldwork.
Standing at the site looking west along Southport Road. The Southport Antique Mall is on the right
and is adjacent to the site.
Page 21
This shows the east side of the Southport Antique Mall where it borders the subject.
This development is across Southport Road from the subject. It is the site of a former Gerdt furniture
store and is now called Southport Station. It has offices and Renaissance Electronic Services.
Page 22
Sophia’s Bridal Salon is across Southport Road from the subject. It has a new exterior thanks to the
Southport Redevelopment Plan.
This salon, which is across the railroad tracks from the subject on the east side, was a 2016 nominee
for best hair salon with the The Indy A-List.
Page 23
These offices are on the south side of Southport road on the east side of the railroad tracks.
These offices are adjacent to the site on the west side, north of the antique mall.
Retail Corner at Southport and Madison Avenue.
Page 24
Strip center along Madison Avenue, northwest of subject.
Looking South on Madison Avenue from Southport Road.
Retail strip center to north.
Zoning of undeveloped land around the site
The subject does not have any undeveloped land around the site.
Page 25
Crime in the PMA
The area has a low to moderate amount of crime compared to averages within the county. The
crime index for 2016 was 93.
The Crime Thematics Layers (Total Crime Index) is based on the number of reported crime
incidences per specific census block. The data is gathered annually by Applied Geographic Solutions
(AGS). AGS CrimeRisk offers crime data in the form of several indexes for crimes against both
persons and property. This crime reports seven major crimes: murder, rape, robbery, assault,
burglary, larceny, and motor vehicle theft. The crime index is reported for the PMA selected for the
subject; the crime map shows variations for the crime index within the PMA with the subject
marked.
Source: STDB Crime Thematics Layer, using data from Applied Geographic Solutions
Neighborhood amenities
The subject is located in a mixed use area on the south side of Indianapolis. It is surrounded by
commercial, office, and retail. The subject is specifically located within the Southport Study Area.
This area has been studied with the intent to enhance the quality of life in Southport. The subject is
Page 26
specifically noted in this study to be a mixed use area. The located on the subject is item 3 in the
map below.
1
To the north of the subject is Christy’s of Indiana auction house. The area becomes more residential
until the corner of Edgewood and Southport Roads, approximately one mile north, which contains
retail. This area has a Kroger Grocery store as well as multiple other chain and local stores and
restaurants. Second Street runs to the west of the subject and ends at the north side of the site.
1 Downtown Revitalization Plan, Southport Indiana, March 2012
Page 27
There are plans to continue the road north and connect with a bridge providing a connector over
Little Buck Creek.
To the west is the Southport Antique Mall. It has 36,000 SF of space with items from various
dealers.
The Southport Farmer’s Market is located at the Bethel Memorial Church at 2810 E Southport
Road. The market is open every Tuesday from 10:00 am – 2:00 pm and Thursdays from 3:00 pm –
6:30 pm. The market offers a variety fresh produce, breads and baked goods, sweets and candies,
eggs, handmade craft items, and flowers. The items come from local farmers and craftsmen.
Further west the area becomes more retail in nature, containing chain stores such as Dairy Queen
and Dollar General. There is also local retail including an ethnic grocery story. However, the grocery
store does not contain fresh produce.
To the south are retail and office buildings, followed by a mix of single-family homes and
multifamily properties. There are two vacant office/retail buildings that are targeted as adaptive
reuse as city offices. The area to the south along Madison Avenue is also a commercial corridor. The
majority of the retail fronts Madison Avenue. There is chain retail including a Chase Bank,
Speedway Gas Station, O’Riley Auto Parts, and multiple local retail establishments. Further south,
less than two miles, is a retail area at the corner of Madison Avenue and Stop 11 Road.
The area east after the railroad tracks is a mix of retail and residential. This is an office/retail area
that contains local offices as well as Sage Salon and a Long’s Bakery. Most retail fronts Southport
Road. Continuing east are mostly single-family homes. Less than two miles east is Gray Park. This
park is located at the southeast corner of Southport and Sherman Drive. Gray Park is 7.5 acres of
land with trails running through a riparian corridor. It mostly consists of shrubby prairie bordering a
Page 28
wooded area along Buck Creek. Also located within this corner is a retail/office area that is
contained to the west of Interstate 65. This area contains Southport Square.
The subject’s location provides good access to needed services in the area.
Transportation linkages
In most areas of Indiana, transportation is based on automobile transportation. Public
transportation is described in the next section. The nearest major transportation linkages are I-65,
US 31, Banta Road, Stop 10 Road, Madison Avenue, and Southport Road.
Page 29
Public transportation
Residents at the subject will have access to the following public transportation. Bus #22 is called the
Shelby Route. It has connections with routes 12, 13, 14, 16, and 31.
Source: Indygo
Page 30
Residents at the subject will also have access to Bus 31, which connects to routes 16 and 22.
Source: Indygo
Page 31
Commuting
Commuting in the subject’s county is primarily by driving alone. Most persons employed commute
15 to 29 minutes a day.
Location of the subject in a desirable site
This section shows the subject’s proximity to civic or community sites, services, retail locations, and
healthcare.
Civic or community facilities
Residents at the subject will have access to the following civic or community sites including
childcare, community centers, schools, vocational schools, universities, cultural arts, and public
services:
Business name Physical address
PNC Bank 6912 Madison Ave
Chase Bank 7001 Madison Ave
US Post Office 1701 E Edgewood Ave
China Garden 7015 Madison Ave
Patio Restaurant 7371 Madison Ave
St Francis Health Network 700 E Southport Rd
Dollar Tree 7423 US 31 S
Waffle House 4031 E Southport Rd
McDonald's 4044 E Southport Rd
Walmart Supercenter 7245 US 31 S
Target 2211 E Southport Rd
Dairy Queen 1930 E Southport Rd
Source: Nielsen (Claritas) Source: Nielsen (Claritas)
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
Transportation to Work - Southport Mixed Use PMA Current Year Estimates - 2017
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Less than 15Minutes
15 to 29Minutes
30 to 44Minutes
45 to 59Minutes
60 or MoreMinutes
Travel Time to Work - Southport Mixed Use PMA Current Year Estimates - 2017
Page 32
Business name Physical address
Family Dollar Store 8083 Madison Ave Ste B
CVS Pharmacy 15 S Main St
Genoa Health Care LLC 8320 Madison Ave
Dollar General 6908 Madison Ave
LA Fitness 3855 E Southport Rd
Kids Mart 7685 Shelby St
Kroger 5911 Madison Ave
40 Minute Cleaners 7017 Madison Ave
Jacob Deering Cleaners 7007 US 31 S Ste B
Calvary Lutheran School 6111 Shelby St
Southport Middle School 5715 S Keystone Ave
Southport Elementary School 261 Anniston Dr
Homecroft Elementary School 1551 Southview Dr
Southport High School 971 E Banta Rd
YMCA 7900 Shelby St
Southport Police Office 6901 Derbyshire Rd
Indianapolis-Marion County Public Library -
Southport
2630 E Stop 11 Rd
Page 33
The map of the civic or community facilities follows:
Page 34
This is a close up view of the neighborhood amenities immediately around the site.
Page 35
Description of the market area This section describes and comments on the definition of the primary market area as well as the
location of the subject.
The Primary Market Area (PMA) for the subject
The PMA is the contiguous area surrounding the subject site from which the development is
expected to draw its support. The PMA is defined as the south side of Indianapolis. The boundaries
are shown in the map below. It includes the neighborhoods of Homecroft, Southport, and
University Heights.
The PMA, as defined by roads or streets, follows:
North Interstate 465
South County Line Road
East Emerson Avenue
West White River
Page 36
Homecroft is a small historic area with a population of 308 households in the 2010 Census and a
land area of 0.24 square miles.
The boundaries were chosen based on shared demographic parameters in terms of income and
information from leasing agents within this market.
Distance from the subject to the PMA boundaries
The subject is about 6 miles from the western border of the PMA, 5 miles from the northern
border, 2.2 miles from the eastern border, and 2 miles from the southern border.
Page 37
Market Area Economy In this section, the market area economy is discussed with details on the following:
At-place employment for the subject’s county
Employment by industry sector for the PMA and by industry sector for the county
Average annual earnings by industry for county
Major employers in PMA
Other relevant employment and economic news
Trends in at-place employment
At-place employment indicates the county employment picture is strengthening. From 2011 to
2015, the PMA gained 6.0% in at-place employment, which represents 33,177 jobs.
Source: Indiana Department of Workforce Development
2011 2012 2013 2014 2015
At Place Employment 549,684 563,418 570,773 576,467 582,861
530,000
540,000
550,000
560,000
570,000
580,000
590,000
At Place Employment - Marion County
Page 38
Employment by industry sector
This section includes information for the PMA and compares it to a larger geographical area.
Esri forecasts for 2017 indicate that the PMA’s largest industry sector is Health Care/Social
Assistance with 15.1% of the employed. Retail Trade represents 13.5%. Manufacturing is third with
12.0%.
Similar to the PMA, Marion County’s largest industry sector is Health Care/Social Assistance, with
14.5% of the employed. Retail Trade is second with 12.8%. Manufacturing is third with 10.8%.
Source: Nielsen (Claritas)
Source: Nielsen (Claritas)
8.1%4.4% 0.1%
1.5%
6.1%
7.6%
5.9%
15.1%
1.5%0.0%
12.0%
3.7%
5.5%
4.8%
13.5%
6.0% 4.2%
Employment by Industry - Southport Mixed Use PMA
Accommodation/Food Services
Administrative/Support/Waste Management
Agriculture/Forestry/Fishing/Hunting/Mining
Arts/Entertainment/Recreation
Construction
Educational Services
Finance/Insurance/Real Estate/Rent/Lease
Health Care/Social Assistance
Information
Management of Companies and Enterprises
Manufacturing
Other Services Except Public Administration
Professional/Scientific/Technical Services
Public Administration
Retail Trade
Transportation/Warehousing/Utilities
Wholesale Trade
8.4%5.9%
0.3%1.7%
5.5%
7.3%
6.5%
14.5%
1.9%0.0%
10.8%
4.5%
6.0%
4.2%
12.8%
6.3%
3.3%
Employment by Industry - Marion CountyAccommodation/Food Services
Administrative/Support/Waste Management
Agriculture/Forestry/Fishing/Hunting/Mining
Arts/Entertainment/Recreation
Construction
Educational Services
Finance/Insurance/Real Estate/Rent/Lease
Health Care/Social Assistance
Information
Management of Companies and Enterprises
Manufacturing
Other Services Except Public Administration
Professional/Scientific/Technical Services
Public Administration
Retail Trade
Transportation/Warehousing/Utilities
Wholesale Trade
Page 39
Wages by industry
The subject is targeted to households with a maximum income of $66,688. The most recent data is
for 2015 and the industries likely to yield potential tenants are highlighted in the table below.
Source: Indiana Department of Workforce Development
Average Annual Earning by Industry
Industry 2011 2015 5 Year
5 Year %
Change
All Industries $48,984 $52,645 $3,662 7.5%
Agriculture, Forestry,
Fishing & Hunting $45,434 $39,809 -$5,624 -12.4%
Mining $45,016 $64,397 $19,381 43.1%
Construction $55,623 $59,731 $4,107 7.4%
Manufacturing $84,797 $86,358 $1,561 1.8%
Wholesale Trade $58,632 $64,462 $5,830 9.9%
Retail Trade $26,835 $29,564 $2,729 10.2%
Transportation &
Warehousing $38,626 $43,121 $4,495 11.6%
Utilities $79,220 $88,612 $9,392 11.9%
Information $65,907 $70,234 $4,327 6.6%
Finance & Insurance $68,393 $78,009 $9,616 14.1%
Real Estate, Renting,
Leasing $41,432 $49,215 $7,783 18.8%
Professional & Technical
Services $68,190 $75,232 $7,042 10.3%
Management of
Companies $82,866 $91,656 $8,790 10.6%
Administration & Waste
Services $28,050 $30,322 $2,272 8.1%
Education Services $36,568 $39,881 $3,313 9.1%
Health Care & Social
Assistance $50,240 $56,953 $6,713 13.4%
Arts, Entertainment &
Recreation $57,598 $64,631 $7,033 12.2%
Accomodation & Food
Services $16,482 $18,182 $1,700 10.3%
Other Services $35,249 $39,424 $4,175 11.8%
Federal, State, and Local
Government $49,945 $53,116 $3,171 6.3%
Page 40
Major employers
The major employers in the county are identified as the following:
This map shows the major employers in relationship to the subject. Some of the employers are in
downtown Indianapolis and their pins cannot be seen because of the scale of the map.
Employees Company Industry City
11,810 Indiana University Health (all
hospitals)
Health Services Indianapolis
17,398 St Vincent Hospitals & Health
Services
Health Services Indianapolis
10,565 Eli Lilly and Company Manufacturing Indianapolis
10402 Community Health Network Hospital Indianapolis
7365 IUPUI Education Indianapolis
6123 Indianapolis Public Schools Education Indianapolis
6600 FedEx Communications Indianapolis
4100 Franciscan St Francis Health Health Services Indianapolis
3688 Eskenazi Health Health Services Indianapolis
3865 Defense Finance & Accounting
Service
Government accounting Indianapolis
4200 Anthem Insurance Indianapolis
4300 Rolls-Royce Manufacturing Indianapolis
Source: The Indy Chamber
Page 41
Recent layoffs and closings
Between 2016 and year to date, 1,908 workers have been affected.
Announced expansions or contractions
Eli Lilly is planning an $85 million expansion in Indianapolis, focusing on its diabetes drug. The
expansion is part of an $850 million investment for 2017. The Indianapolis-based company will
expand its Trulicity device assembly operations, part of a five-year plan to grow its diabetes drug
manufacturing in the U.S. The $850 million investment will fund both projects that are already
underway as well as new projects that will be initiated throughout the course of the year, including
additional projects in Indianapolis. Over the past five years, Eli Lilly has added 400 jobs in
Indianapolis, the company said in a release.
Indianapolis-based Celadon Group Inc. has been approved for nearly $3 million in state tax
incentives for an expansion that the company says will add 375 new jobs by 2024. Celadon, a
trucking and logistics company, is building a $28 million corporate campus in the Mount Comfort
area in Hancock County. The company’s operations are currently located on a 40-acre site at East
33rd Street and Mitthoeffer Road in Indianapolis, but that site is landlocked and offers no room for
expansion.
BSN Sports LLC plans to spend $2.4 million to improve its sportswear production facility on the
Indianapolis northwest side, adding 192 employees over the next six years. BSN, the largest
Company City Affected
Workers
Notice Date LO/CL Date Description of work Notice
Type
hhgregg Indianapolis 268 4/7/2017 5/31/2017 Appliance stores CL
Saran Indianapolis 110 3/10/2017 6/30/2017 Billet mill machinery,
metalworking, manufacturing
CL
MDwise Indianapolis 80 2/16/2017 42842 Health Insurance carriers LO
Briarwood Health and
Rehabilitation
Indianapolis 87 2/1/2017 4/1/2017 Physical Rehabilitation CL
CHEP Recycled Pallet
Solutions
Indianapolis 165 12/27/2016 2/5/2017 Pallet parts, wood,
manufacturing
LO
Rexnord Industries Indianapolis 350 12/15/2016 6/1/2017 Ball and Roller Bearing
Manufacturing
CL
SUEZ Water Indiana Indianapolis 179 10/20/2016 12/20/2016 Water Treatment Plants LO
Community Westview Hospital Indianapolis 187 10/11/2016 12/31/2016 Hospital, general medical and
surgical
CL
Vertellus Specialties Indianapolis 40-50 8/17/2016 10/17/2016 Chemical Manufacturing LO
Indianapolis Haulage Indianapolis &
Yorktown
51 7/15/2016 9/29/2016 Warehousing and storage,
general merchandise
CL
Indianapolis Logistics Indianapolis &
Yorktown
135 7/15/2016 9/29/2016 Warehousing and storage,
general merchandise
CL
Sensient Flavors Indianapolis 86 4/4/2016 12/30/2016 Flavoring concentrates (except
coffee based) manufacturing
CL
CEC Liberty Hall Indianapolis 50 3/11/2016 5/15/2016 Rehabilitation agencies for
offenders
LO
Hogan Transport, Inc. Indianapolis 82 2/1/2016 3/24/2016 General freight trucking LO
ADVANTAGE Health Solutions,
Inc
Indianapolis 78 1/29/2016 3/31/2016 Direct Health and Medical
Insurance Carriers
LO
Source: Indiana Department of Workforce Development
Page 42
distributor of team sports apparel and equipment in the nation, acquired a 195,000-square-foot
manufacturing plant at 5379 West 76th Street in Pike Township in early 2016. The Dallas-based
company said investments in new manufacturing, tooling, logistics, and IT equipment would turn
the facility into a regional headquarters for production design, manufacturing, and distribution. The
project would help BSN retain 291 employees at the site in addition to adding the new ones.
Torchlite, which connects client companies to freelancers who specialize in digital marketing,
announced that it plans to grow from 16 to 156 by 2019. The Indianapolis-based company, founded
in June, said it is investing $514,086 to triple the size of its Indianapolis offices on Massachusetts
Avenue. In return for the new jobs, the Indianapolis Economic Development Corp. is pledging $2.8
million in tax credits and up to $100,000 in training grants. The firm also is moving into larger
quarters. It has agreed to lease 5,500 square feet on the second floor of the Marott Center, 342
Massachusetts Ave. It currently is on the building's fourth floor. According to TechPoint, Indiana’s
technology initiative, computer and IT jobs in central Indiana grew by 17 percent—more than
double the rate of all occupations—from 2009-2014, creating more than 5,000 jobs.
Salesforce is planning to establish a new headquarters in the former Chase Tower in downtown
Indianapolis, which will be rebranded as Salesforce Tower Indianapolis. The San Francisco cloud
computing giant has leased about 250,000 square feet at Chase Tower on Monument Circle as part
of a massive expansion. The deal includes naming rights, meaning it will soon be called Salesforce
Tower. Salesforce.com Inc. plans to hire more than 800 people downtown by 2021 and invest $40
million over 10 years as part of its expansion. That's on top of an Indianapolis workforce that
already includes nearly 1,400 employees.
Indianapolis-based Renaissance Electronic Services LLC is planning to invest nearly $15 million into
an expansion in central Indiana. The dental claims provider is looking to double its more than 150-
member work force by 2019. Plans include improvements to its existing five facilities as well as
leasing and equipping more than half of a former Gerdt Furniture Store on Southport Road. Its
application development team is set to move into the renovated building in April. It could be
complete by year's end. The company's growth plans include electronic payment processing
services that will be developed and launched over the next three years. Most of the jobs created by
this expansion will involve software development and programming.
Indianapolis-based real estate firm Milhaus plans to expand its operations in Indiana, adding 250
jobs over the next five years. Company officials said they plan to spend more than $1.6 million
before the end of 2020 to lease and equip the headquarters space near downtown, at 460 Virginia
Avenue, in the Fletcher Place neighborhood. Milhaus moved into the space in May after
redeveloping a 12,000-square-foot historic property once known as the Shirley Engraving building.
Additional staff will be added at the headquarters, but most of the new hiring will come from
staffing new and acquired properties around the state, the company said.
Caito Foods Service Inc., a processor and distributor of fresh produce and fresh-prepared foods,
announced plans to expand its headquarters here, creating up to 350 new jobs by 2024. The
Page 43
homegrown-Hoosier company will invest more than $15 million to build a new refrigerated
processing center on its campus at 3120 North Post Road on Indianapolis’ east side. With
construction expected to begin later this year, Caito Foods’ growth will allow it to expand
production of fresh and chilled food.
Cincinnati-based grocer The Kroger Co. recently announced a wide-ranging plan to beef up its
operations in central Indiana, including creating or remodeling dozens of stores, establishing a
regional training center, and creating an estimated 3,440 jobs. The supermarket firm expects to
invest at least $464 million in its growth plan for the nine-county Indianapolis area. The four-year
plan began in 2014, and projects are expected to extend through 2017.
Chicago-based Geofeedia, the company behind a popular social media intelligence platform,
recently announced that it plans to expand its downtown Indianapolis operations, creating up to
336 jobs by 2020. Geofeedia said it will invest $2.9 million to lease and equip a 9,200-square-foot
office in Circle Tower on Monument Circle. The company said it plans to make the location its
largest office. It will focus on developing predictive software technology used by consumer brands,
media organizations, and public safety agencies.
Trends for resident employment and unemployment
According to the Indiana Economic Development Corporation’s (IEDC) website, Indiana is home to
the orthopedics capital of the world. The state boasts the world’s second-largest automotive
industry and has developed the most university supercomputing capacity of any United States
campus. Additionally, Indiana leads the nation in manufacturing jobs creation.2 Newsmax Media’s
newsmax.com lists Indiana’s top five industries as automobiles, life sciences, transportation,
information technology, and research and design.3
16 Tech is a new planned Innovation Community, located in the heart of downtown Indianapolis.
Plans for the community span acres of prime real estate, along Indiana Avenue between 10th Street
and 16th Street. Adjacent to the Indiana University-Purdue University Indianapolis (IUPUI) campus,
16 Tech is surrounded by water and trails along the White River and Fall Creek. It is situated next to
one of the largest concentrations of research clusters in Indianapolis’ urban core, surrounded by
2 Indiana Economic Development Corporation. Industry Sectors. Retrieved on August 3, 2016 from
http://iedc.in.gov/industries
3 Groenfeldt, Tom (2015, April 5). Top 5 Industries in Indiana: Which Parts of the Economy are Strongest? Retrieved on August 3, 2016 from http://www.newsmax.com/FastFeatures/industries-indiana-economy/2015/04/05/id/636527/
Page 44
67% of the city’s growth industries and flanked by residential neighborhoods.4
An anchor tenant, The Indiana Biosciences Research Institute (IBRI), has plans for 100,000 square
feet of research and office space at 16 Tech. This $360 million industry-led, first-of-its-kind institute
in the country, will be entrepreneurial, developing science funded in large part by private sector
investors to advance health outcomes. 5
According to its website, the 16 Tech Innovation Community is one of the largest talent attraction,
retention, and development opportunities in Indianapolis’ history. 16 Tech is planned to attract top
talent from around the world to collaborate, innovate, and commercialize new ideas, advancing
industries important to Indiana including life sciences, technology, and advanced manufacturing. 6
Indiana leads the country in manufacturing job growth and is home to the second largest
automotive industry. Indiana is the only U.S. location to have Honda, Subaru, and Toyota auto
assembly plants inside a single state.7 According to Robert Kavcic, senior economist at BMO Capital
Markets, the auto sector has helped the employment picture in Indiana, with durable goods
manufacturing employment up 6 percent year-over-year. According to Dr. Michael Hicks, professor
of economics and director of the Center for Business and Economic Research at Ball State
University, manufacturing, largely related to transportation, accounts for one in four of the state’s
jobs. The recreational vehicle business, centered in Elkhart County, accounts for about 80 percent
of the RV’s produced in the country. Elkhart County has 20,000 employees a day who commute
from other countries. 8
Regarding life sciences, a recent industry report from BioCrossroads has Indiana’s exports totaling
$9.8 billion. This is the second highest in the country. The state also boasts the world’s largest
private medical device manufacturer.9 According to Republican Senator Dan Coats, “Medical device
manufacturers directly employ 20,000 Hoosiers and indirectly support thousands of additional jobs.
These are jobs that pay, on average, 56 percent higher wages than the average wage rate in
4 16 Tech. Master Plan. Retrieved on August 3, 2016 from http://www.16techindy.com/about/
5 16 Tech. Master Plan. Retrieved on August 3, 2016 from http://www.16techindy.com/about/
6 16 Tech. About. Retrieved on August 3, 2016 from http://www.16techindy.com/about/
7 Indiana Economic Development Corporation. Advanced Manufacturing. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/advanced-manufacturing
8 Groenfeldt, Tom (2015, April 5). Top 5 Industries in Indiana: Which Parts of the Economy are Strongest? Retrieved on August 3, 2016 from http://www.newsmax.com/FastFeatures/industries-indiana-economy/2015/04/05/id/636527/
9 Indiana Economic Development Corporation. Life-sciences. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/life-sciences
Page 45
Indiana.” Additionally, Warsaw, Indiana is known as the Orthopedic Capital of the World, with
upwards of 50 manufacturers.10
75% of the nation’s population is within a day’s drive of Indiana. This makes transportation,
including trucking, rail, warehousing, and distribution, a critical sector in the state.11 According to
the Indiana Economic Development Corporation, Indiana is a leader in global logistics. Companies
are offered a strong competitive advantage when it comes to reaching North American and world
markets from Indiana. The state is a national leader in pass-through interstates, has the second
largest FedEx air hub worldwide, and is third in total freight railroads. Boasting three maritime
ports that together rank seventh in waterborne shipping, Indiana provides the only statewide port
system with direct waterway access to two U.S. coasts. These resources support logistics-related
businesses while encouraging companies to expand or locate their operations here in Indiana.12
With a 70% higher computer and information technology job growth rate than the rest of the
country, Indiana is leading a Midwest transformation as a Tech Belt state. According to a Techpoint
survey, “Since 2007, 12 tech community companies in Central Indiana have either been acquired or
have gone public, generating $4.5 billion in market value and creating more than 3,700 Indiana
jobs.”13
In Indiana, research and design is a billion dollar business in university research alone, according to
Michael Hicks, professor of economics and director of the Center for Business and Economic
Research at Ball State University.14 Recently, Purdue University was ranked sixteenth in the world
for university-issued patents. Purdue is home to more supercomputing capacity than any other
campus in the country, boasting three of the top 500 supercomputers in the world.15 In June 2016,
Purdue Research Foundation and Browning Investments LLC, announced a partnership to develop
the Purdue Innovation District. The plans for the project detail an environment for educational,
10 Groenfeldt, Tom (2015, April 5). Top 5 Industries in Indiana: Which Parts of the Economy are Strongest? Retrieved on August 3, 2016 from http://www.newsmax.com/FastFeatures/industries-indiana-economy/2015/04/05/id/636527/
11 Groenfeldt, Tom (2015, April 5). Top 5 Industries in Indiana: Which Parts of the Economy are Strongest? Retrieved on August 3, 2016 from http://www.newsmax.com/FastFeatures/industries-indiana-economy/2015/04/05/id/636527/
12 Indiana Economic Development Corporation. Logistics and Transportation. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/logistics-and-transportation
13 Indiana Economic Development Corporation. Information Technology. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/information-technology
14 Groenfeldt, Tom (2015, April 5). Top 5 Industries in Indiana: Which Parts of the Economy are Strongest? Retrieved on August 3, 2016 from http://www.newsmax.com/FastFeatures/industries-indiana-economy/2015/04/05/id/636527/
15 Indiana Economic Development Corporation. Information Technology. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/information-technology
Page 46
economic, cultural, community, and real estate development. John Hirschman, president and CEO
of Browning is quoted as saying, “This opportunity is unique in its scale and potential impact as a
catalyst for innovation, collaboration, and entrepreneurialism."16 Additionally, the launch of Indiana
University’s Internet2, a shared effort to bring nationwide research and education network online,
is a huge contribution towards powering the data that will deliver the next wave of innovation to
the global marketplace.17
Indiana is impacting the global market through a wide range of industries. These industries provide
jobs within the state and further contribute to an economic environment committed to success and
building a secure future for Indiana.
Unemployment for county
The unemployment rate in the county has mirrored the rate for the state. Unemployment is at a
10-year low:
Conclusion
The PMA, like most of the state, has recovered from the recession. Unemployment is low and
multiple companies are announcing job expansions. However, there is a fundamental shift
16 Sequin, Cynthia (2016, June 13). Purdue University News: Purdue, Browning Partner on $1 Billion Development District to Transform West Side of Campus. Retrieved on August 4, 2016 from https://www.purdue.edu/newsroom/releases/2016/Q2/purdue,-browning-partner-on-1-billion-development-district-to-transform-west-side-of-campus.html
17 Indiana Economic Development Corporation. Information Technology. Retrieved on August 3, 2016 from http://iedc.in.gov/industries/information-technology
Source: Indiana Department of Workforce Development - Research and Analysis. Annual rate until current year. Current year is the
current month rate.
4.94.5
5.6
9.110
9.48.7 8.4
6.5
54.4
3.85
4.6
5.8
9.810.2
98.4
7.7
6
4.84.4
3.8
0
2
4
6
8
10
12
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mar 2017
Perc
ent
Une
mpl
oyed
Unemployment Rate - 2006 to Mar 2017
Marion County Indiana
Page 47
occurring in the retail business as more retailers announce layoffs. Since retail trade is the second
largest area of employment in the PMA, this bears watching.
Page 48
Demographic data This section presents demographic trends and analysis based on the data available. All household
data is from HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc. based on a
Custom Tabulation of 2006-2010 American Community Survey Data by the U.S. Bureau of the
Census; estimates for 2016 and projections for 2021 by Nielsen, Inc.). Data from the 2006-2010
American Community Survey is listed in the charts as 2010. HISTA Data for 2000 is produced by
Nielsen, Inc., based on a Custom Tabulation of 2000 SF3 Data by the U.S. Bureau of the Census.
Each chart with household data is indicated with a data source of HISTA Data from Ribbon
Demographics, LLC (produced by Nielsen, Inc.).
Total population and households
The following charts show the total population and households.
Population
Census data indicates the PMA experienced an increase in total population in the PMA from 2000
to 2010 of an annual change of 2.21%. From 2010 to 2017, an increase of 2.44% per year is
estimated and an increase of 0.92% per year is projected for 2022.
The county reflects similar trends in population.
Source: Nielsen (Claritas)
800,000
820,000
840,000
860,000
880,000
900,000
920,000
940,000
960,000
980,000
1,000,000
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Census 2000 Census 2010 Current Year Estimates2017
Five-Year Projections2022
Total Population: Southport Mixed Use PMA and Marion County
Southport Mixed Use PMA Marion County
Page 49
Households
Estimates show that the households in the PMA increased from 2010 to 2017, with an annual rate
change of 1.46%. Projections show an increase from 2017 to 2022, with an annual rate of change of
0.79%.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
Population and households by age group
Population
In 2010, the largest cohort was the 25 - 34 age group with 15.9% of the population, followed by the
45 - 54 cohort with 13.6%. In 2017, estimates indicate the largest cohort will remain 25 - 34 with
Data source: HISTA Data from Ribbon Demographics. Data from the 2006-2010 ACS is l isted
as 2010; estimates for 2016 and projections for 2021 by Nielsen, Inc. Other years are a
straightline projection by the analyst.
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
2010 2017 2018 2019 2020 2021 2022
32,067
35,33635,616
35,89636,175
36,45536,735
Total Households: PMA, 2010 to 2022
Page 50
16.2%, followed by the 35 - 44 cohort with 13.2%. In 2022, projections indicate that 35 - 44
becomes the largest cohort with 14.7%, followed by 25 - 34 with 13.8%.
Source: Nielsen (Claritas)
Households
The number of senior households are increasing. From 2010 to projections for 2022, households
headed by persons 55 and younger will increase annually by 0.3%. Households headed by persons
55 to 62 years of age will increase annually by 2.8% and households headed by persons 62 and
older will increase annually by 3.5%. Projections show that from 2010 to 2022, senior households
will increase from 7,816 to 11,053, which represents an increase of 41.4%.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
0 - 4 5 - 9 10 - 14 15 - 17 18 - 20 21 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+
Population by Age Group - Southport Mixed Use PMA
2010 2017 2022
20,000
20,200
20,400
20,600
20,800
21,000
21,200
2010 2017 2018 2019 2022
20,420
21,118 21,126 21,134 21,157
Total households in PMA by Age: Under 55
0
5,000
10,000
15,000
20,000
25,000
30,000
2010 2017 2018 2019 2022
Age 62+ 7,816 9,661 9,939 10,218 11,053
Age 55+ 11,647 14,218 14,490 14,762 15,578
Total households in PMA by Age: 55 - 62+
Age 55+ Age 62+
Page 51
Households headed by seniors
From 2010 to 2022, projections indicate the total households in the PMA headed by non-senior
persons will decrease from 75.6% to 69.9%. Projected households headed by seniors 62 and older
will increase from 24.4% to 30.1%.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
Households by tenure
Estimates indicate renter households in the PMA increased from 2010 to 2017 by 1,389
households. Estimates and projections indicate this trend will continue.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
Non-seniors75.6%
Seniors 62+24.4%
Households in PMA 2010 Headed by Seniors 62+
Non-seniors Seniors 62+
Non-seniors, 69.9%
Seniors 62+, 30.1%
Households in PMA 2022 Headed by Seniors 62+
Non-seniors Seniors 62+
19,793 21,673 22,488
12,27413,663 14,247
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010 2017 2022
Households by tenure - All ages
Owner households Renter households
Page 52
Households by income
The following information provides the total households in the PMA by number of persons in
households broken down by income as of 2010, 2017, and 2022.
In 2010, the largest group of households was the group earning $75,000-100,000, followed by the
group earning $60,000-75,000, and then the group earning $30,000-40,000. In 2017, estimates
indicate that the largest group of households is that earning $75,000-100,000, followed by $60,000-
75,000, and then $40,000-50,000. Projections show that in 2022 the largest group of households
will earn $75,000-100,000, then $60,000-75,000, and $20,000-30,000.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000-75,000
$75,000-100,000
$100,000-125,000
$125,000-150,000
$150,000-200,000
$200,000+
2010 1,798 3,191 3,182 3,886 3,407 3,054 4,051 4,174 2,719 1,313 915 377
2017 2,240 3,869 3,910 3,463 3,923 3,294 4,029 4,435 2,606 1,617 1,258 692
2022 2,208 3,750 3,818 3,521 3,732 3,448 4,140 4,715 2,970 1,895 1,554 984
HO
USE
HO
LDS
Households by Income in the PMA
2010 2017 2022
Page 53
Average household size
In 2000, the average persons per household in the PMA was 2.4218. Estimates indicate that the
average in 2010 was 2.45 and projections indicate it will be 2.49 in 2017. In 2022, projections
indicate it will be 2.51 per household.
The total households in the PMA are shown by the number of persons in the household in this
chart.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
18 Nielsen (Claritas.)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1-Person 2-Person 3-Person 4-Person 5+-Person
2010 9,152 10,909 5,120 3,980 2,906
2017 10,008 11,713 5,781 4,326 3,508
2022 10,366 12,077 6,041 4,493 3,758
Total Households by Household Sizein the PMA
2010 2017 2022
Page 54
Population in group quarters
This chart shows the population in group quarters compared to the same data for the state of
Indiana.
Renter households by persons in household
In 2010, the largest group of renter households in the PMA was estimated to be the 1-person
households. The second largest was 2-person households and the third was 3-person households.
Institution Type Number
Percent of total
population Number
Percent of total
population
Noninstitutional 15 0.0% 92,143 1.39%
College/University Student Housing - 0.0% 75,857 1.14%
Military Quarters - 0.0% 254 0.00%
Other Facilities 15 0.0% 16,032 0.24%
Institutional 405 0.5% 97,761 1.47%
Correctional Facilities for Adults - 0.0% 50,608 0.76%
Juvenile Facilities - 0.0% 4,180 0.06%
Nursing Home 405 0.5% 41,596 0.63%
Other Facilities - 0.0% 1,377 0.02%
Total in group quarters 420 0.5% 189,904 2.9%
Total population 88,427 6,638,123
Source: Ribbon Demographics; Nielsen (Claritas)
Group Quarters Population by TypeCurrent Year Estimates - 2017
Southport Mixed Use PMA State of Indiana
Page 55
In 2022, projections indicate the largest group of renter households will be 1-person households,
followed by 2-person, and 3-person households.
Source: HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc.)
0
1,000
2,000
3,000
4,000
5,000
6,000
1-person 2-person 3-person 4-person 5+-person
2010 5,068 3,293 1,720 1,254 939
2017 5,688 3,515 1,887 1,339 1,234
2022 5,917 3,583 1,972 1,408 1,367
Renter Households by Persons in the Household in the PMA
2010 2017 2022
Page 56
Demand Analysis All the household data in this section originates from Ribbon Demographics HISTA data. On the few
occasions when the data comes from somewhere else, it is footnoted.
Determining income and age-eligible households
To determine the feasibility of the subject, it must be determined if a large enough segment of the
population can afford the subject’s rent, but not exceed the allowable income for the subject. For
the subject, a household cannot pay more than 35% for family projects.
Minimum income
Because no subsidies exist, the household must have sufficient income to pay the rent. The lowest
gross rent, including utility costs, is annualized and divided by 35% (rent to income ratio)19.
Therefore, minimum income level for each unit type is calculated by annualizing the rent and
utilities:
((Monthly rent + utilities + non-optional charges) * 12 months)/(35%)
Maximum income
The maximum income levels for market rate units vary by project. For tax credit properties, market
rate units target those earning 80% of the area median income (AMI). For this project, the analyst
chose a maximum income of 100% of the AMI.
It is assumed the maximum household size is two persons per bedroom. Therefore, the maximum
household income for the one-bedroom unit is for a two-person household and for the two-
bedroom unit it is a four-person household.
For the one-bedroom units, the Marion County AMI for two-person households is $53,375. The AMI
for a four-person household is $53,350.
Once the income parameters are set, the number of households within these brackets can be
determined. Those within the income bracket will be considered income-eligible or qualified
households.
19 IHCDA, Qualified Allocation Plan 2016-2017, specifies the market analyst should use a rent burden for family households of 35% and for 40% for senior households.
Page 57
Renter percentage
One of the primary variables in calculating capture rates is the percentage of renters. Lower-income
households have a higher percentage of renters compared to all households within an area. To
determine the renter percentage specific to the income levels appropriate for this subject, we
determine the number of renter households and the total households that that are income eligible.
These charts show the calculation to determine how many renter households are income eligible.
Non Age Restricted Renter Households
$28,160 Minimum income
0% $0-10,000
0% $10,000-20,000
18% $20,000-30,000
100% $30,000-40,000
100% $40,000-50,000
100% $50,000-60,000
45% $60,000-75,000
0% $75,000-100,000
0% $100,000-125,000
0% $125,000-150,000
0% $150,000-200,000
0% $200,000+
$66,688 Maximum income
Renter households in PMA 2017
Income brackets # HH % eligible # HH eligible
$0-10,000 1,442 0% 0
$10,000-20,000 2,650 0% 0
$20,000-30,000 2,372 18% 436
$30,000-40,000 1,617 100% 1,617
$40,000-50,000 1,624 100% 1,624
$50,000-60,000 1,299 100% 1,299
$60,000-75,000 1,230 45% 548
$75,000-100,000 939 0% 0
$100,000-125,000 300 0% 0
$125,000-150,000 164 0% 0
$150,000-200,000 119 0% 0
$200,000+ 139 0% 0
Total 13,897 5,525
Page 58
These charts show how many total households, both renter and owner, are income eligible.
Therefore, the renter percentage specific to the income-eligible households is 5,525/13,217 or
41.8%.
Minimum and maximum income for the subject
Using the methodology and assumptions discussed, the minimum and maximum income for the
subject’s units is summarized here:
Non Age Restricted Total Households
$28,160 Minimum income
0% $0-10,000
0% $10,000-20,000
18% $20,000-30,000
100% $30,000-40,000
100% $40,000-50,000
100% $50,000-60,000
45% $60,000-75,000
0% $75,000-100,000
0% $100,000-125,000
0% $125,000-150,000
0% $150,000-200,000
0% $200,000+
$66,688 Maximum income
Income brackets # HH % eligible # HH eligible
$0-10,000 2,227 0% 0
$10,000-20,000 3,821 0% 0
$20,000-30,000 3,873 18% 713
$30,000-40,000 3,486 100% 3,486
$40,000-50,000 3,847 100% 3,847
$50,000-60,000 3,356 100% 3,356
$60,000-75,000 4,073 45% 1,816
$75,000-100,000 4,547 0% 0
$100,000-125,000 2,752 0% 0
$125,000-150,000 1,728 0% 0
$150,000-200,000 1,376 0% 0
$200,000+ 809 0% 0
Total 35,896 13,217
Southport Mixed Use with Low Rent
Target tenant: families
Unit Type
Num of
units
Income
Level Low Rent Utility
Gross
Rent
Minimum
Income
Maximum
Income
One bedroom 35 Market $685 $136 $821 $28,160 $53,375
Two bedroom 60 Market $738 $165 $903 $30,976 $66,688
Page 59
Demand from new renter households
New renter households in the PMA are determined by the following. This calculation is done by
AMI level in the demand worksheet.
Total households in the PMA in the year placed in service, less
- Total households in the PMA for the current year
* Multiplied by the percentages of households that are renters in the year placed in service
* Multiplied by the percentages of renter households that are income qualified
= Equals the demand from new renter households
Other potential tenants
In the PMA, 44.1% of the households are considered to be rent-overburdened; that is, paying more
than 35% of their income for rent.
These households are not included in the demand analysis. However, this indicates there is a still a
demand for quality housing for low-income tenants.
Income-eligible senior homeowners likely to convert to rentership
The subject is not age restricted, so no senior homeowners are considered part of the demand.
Following are the tables indicating the percent of eligible households for each unit type for the
subject.
Gross Rent as % of Household Income - used for familiesTotal renter HH in PMA 14,190Renter HH paying 35 to 39% of income 1,277Renter HH paying 40 to 49% of income 1,569Renter HH paying 50% and more of income 3,418
Total rent overburdened 6,264
Percentage 44.1%
Source: ACS 2015 5-Year Estimates. Table B25070, Gross Rent as a
Percentage of Household Income in the Past 12 Months.
Page 60
All data is from HISTA Data from Ribbon Demographics, LLC (produced by Nielsen, Inc. based on a
Custom Tabulation of 2006-2010 American Community Survey Data by the U.S. Bureau of the
Census; estimates for 2017 and projections for 2022 by Nielsen, Inc.).
Page 61
Eligible households by income brackets
This section shows the eligible households by income level for the subject. Family projects use total
households for the year placed in service; age-restricted projects use households headed by seniors
62 and older. In addition, for senior households, the number of households is restricted to one- and
two-person households rather than all households 62 and older.
Eligible households by income bracket for market-rate units
For market rate units, the maximum income depends on the target households and the
characteristics of the neighborhood. For this project, the analyst chose the maximum income as
households earning 100% AMI households.
Movership rate
The American Housing Survey (AHS), from the U.S. Census Bureau, surveys select metropolitan
areas for specific information about housing. The AHS 2011 survey, the most recent survey
Market$28,160 Minimum income
0.0% $0-10,0000.0% $10,000-20,000
18.4% $20,000-30,000100.0% $30,000-40,000100.0% $40,000-50,000100.0% $50,000-60,00044.6% $60,000-75,0000.0% $75,000-100,0000.0% $100,000-125,0000.0% $125,000-150,0000.0% $150,000-200,0000.0% $200,000+
$66,688 Maximum income
Renter households in PMA 2019 - Market RateIncome brackets # HH % eligible # HH eligible$0-10,000 1,442 0.0% 0$10,000-20,000 2,650 0.0% 0$20,000-30,000 2,372 18.4% 436$30,000-40,000 1,617 100.0% 1,617$40,000-50,000 1,624 100.0% 1,624$50,000-60,000 1,299 100.0% 1,299$60,000-75,000 1,230 44.6% 548$75,000-100,000 939 0.0% 0$100,000-125,000 300 0.0% 0$125,000-150,000 164 0.0% 0$150,000-200,000 119 0.0% 0$200,000+ 139 0.0% 0Total 13,897 5,525
Page 62
available for the area, included the Indianapolis-Carmel Metropolitan Area and provides the
necessary information to estimate the movership rate of renters in Indianapolis.
The existing income-eligible households are multiplied by the movership rate to determine the
likely number of households that would rent at the subject.
Recently developed rental units
The demand calculation needs newly developed units or units in the pipeline to be counted in order
to subtract for the demand. This section lists properties in the PMA that fit into one of these
categories:
New tax credit projects that have been awarded credits but have not yet started leasing
New tax credit projects that have been constructed but have not reached 95% occupancy
The most recent tax credit project was a senior project in 2008. Brookhaven at County Line is a
Herman & Kittle project with 271 one- and two-bedroom units. However, as a senior project it is
not competitive.
Autumn Chase and Grand Oaks were both constructed in 2000. There are no new Section 42
multifamily properties in the PMA. Therefore no units are subtracted in the demand calculation as
Comparable Units (proposed or new construction).
Several newer market rate properties are have come into the market north of the subject near the
intersection of Edgewood and Madison Avenue. 5700 Madison opened in February 2014 with
studio, one-, and two-bedroom units. It is north of Edgewood Avenue. The rents range from $555
to $925. Edgewood on Madison, south of Edgewood Avenue, opened in September 2015 with
studio, one-, and two-bedroom units. The rents range from $595 to $925. Both properties are
managed out of the same office at 5700 Madison. The leasing agent did not disclose the current
occupancy but indicates their renewal rate is “very strong.”
Estimate of absorption period
The absorption rate represents how many units are expected to fill per month at a new property. It
estimates the overall lease-up period.
Geography: Indianapolis-Carmel Metropolitan AHS AreaTotal respondents, renter-occupied units 221,200Respondents who moved during the past year 84,600Movership rate 38.2%
Source: American Housing Survey 2011 C-07-RO-M Housing and
Neighborhood Search and Satisfaction, Renter-Occupied Units
Page 63
Millikan on Mass is a 64-unit, mixed-income, market rate property in downtown Indianapolis from
the Indianapolis Housing Agency. Phase III of the project only has market rate units and it opened in
December 2015. It leased up at 5 to 6 units per month.
The Residences at CityWay opened the first units in downtown Indianapolis in 2013. The first 250
units leased at 14 units per month.
Other lease ups of nearby areas that occurred from 2015 to 2016 include:
Pointe at Fall Creek – 14 units per month
Englewood Lofts – 5 units per month – delayed with a fire during lease up
This indicates a lease up of 5 to 14 units per month. The analyst has chosen a conservative rate of 7
to 8 units per month. At this rate, it will take 11 to 12 months to reach 95% occupancy.
Capture rate
The methodology used to determine the capture rate is described with an example in the
addendum Example of demand calculation on page 124.
The capture rate is the percentage of the market a property needs to reach a stabilized occupancy.
In the PMA, the subject will need to capture about 4.5% of the income-qualified households to
reach 95% occupancy.
The Valuation and Market Studies for Affordable Housing defines the capture rate as:
The percentage of age, size, and income-qualified renter households in the primary market
area that a property must capture to achieve the stabilized level of occupancy. Funding
agencies may require restrictions to the qualified households used in the calculation,
including age, income, living in substandard housing, movership, and other comparable
factors.
A capture rate measures the ratio of total units proposed to the number of income-qualified
households in the market area20.
Typically, lower capture rates predict success for proposed multifamily properties. Capture rates
greater than 10% generally represent some risk in the market. However, this is the strictest test of a
20 “Recommended Practices for Determining Demand,” a white paper published by the National Council of Affordable Housing Market Analysts, 2008.
Page 64
capture rate, using only those age- and income-eligible renter households not currently served by
the market, or current demand. Capture rates for age-restricted properties tend to be higher.
This is one of several approaches to determining the reasonableness and potential success for the
property.
Page 65
Market Rate Demand as of 2019
Project Total
Minimum Income Limit $28,160
Maximum Income Limit $66,688
Total housholds in PMA as of 2019 35,896
Total renter housholds in PMA as of 2019 13,897
Number of renter households in PMA in 2018 in the
specified income band 5,525
Multiplied by
Movership rate (renters likely to move) 38.2%
Equals
Number of likely income-eligible renter housholds
who will move 2,113
Minus 0
Competitive units not yet leased 0
Equals
Net Demand 2,113
Divided by
Proposed units at the subject 95
Equals
Capture Rate 4.5%
Total Absorption Period 11 to 12 months
Demand Calculation Inputs
2017 Total Households (Base Year) 35,336
2017 Total Renter Households (Base Year) 13,663
2019 Total Households (Placed in Service) 35,896
2019 Total Renter Households (Placed in Service) 13,897
Page 66
Penetration rate for the PMA
The penetration rate is the percentage of age- and income-qualified households in the PMA that all
existing and proposed affordable properties, to be completed within six months of the proposed
development, and which are competitively priced to the subject, must capture to achieve the
stabilized level of occupancy (95%) to the total households of the PMA.
The penetration rate is another indicator of a property’s success in a market. The penetration rate
is calculated by dividing the total income-qualified renter households into the number of units
required to reach stabilized occupancy of 95%.
For this calculation, all households are included.
Two market rate comparables, Sundance at the Crossing and Southport Crossing, are 92% occupied.
They need to lease another 3% of their units to be at stabilized occupancy. Therefore 14 units at
Sundance at the Crossing and 10 units at Southport Crossing are included as competitive units.
A. Total HH, renter and owner, that are
income eligible
5,799
B. Number of subject units 95
C. Number of competitive units 24
D. Penetration rate ((B + C)/A) 2.1%
$28,160 Minimum income
0% $0-10,000
0% $10,000-20,000
18% $20,000-30,000
100% $30,000-40,000
100% $40,000-50,000
100% $50,000-60,000
67% $60,000-75,000
0% $75,000+
$66,688 Maximum income
Market area 2019 - Renter HouseholdsIncome brackets # HH % eligible # HH eligible
$0-10,000 1,442 0% 0
$10,000-20,000 2,650 0% 0
$20,000-30,000 2,372 18% 436
$30,000-40,000 1,617 100% 1,617
$40,000-50,000 1,624 100% 1,624
$50,000-60,000 1,299 100% 1,299
$60,000-75,000 1,230 67% 823
$75,000+ 1,662 0% 0
Total 13,897 5,799
Page 67
Supply Analysis
Overview of market rate and tax credit rental properties
While researching the supply, we contacted multiple properties. The analyst identified some
communities as not competitive or outside of the PMA. All LIHTC properties in the PMA were
targeted as well as most market rate properties. The survey was conducted by our office in April
and May 2017.
Approximately 14 properties are shown in the following grids. The range of the communities
provides a good indication of Section 42 and market rents for the PMA. The comparables are
included with a summary grid following. All apartments in the PMA are listed and those considered
competition are discussed fully.
Because the subject is not age restricted, no senior properties were included in this report. The
survey focused on properties with unit types similar to the subject: one-bedroom and two-
bedroom units.
Properties that were eliminated from the survey include:
Those with fewer than 10 units
Senior properties
Grand Oaks, one of the newer comparables, is not age restricted but it has a design that would be
appealing to seniors. It is included in the survey but not used to derive a market rent.
Stratford Place is a Section 42 property outside the northeast corner of the PMA. It is included in
the overall Section 42 occupancy rate because the PMA only has 3 non age-restricted properties.
Of the properties surveyed:
10 rented at market rates.
4 are income-restricted Section 42 properties.
Page 68
Occupancy rates of each comparable
For additional support of the immediate need for housing within an area, the occupancy rates need
to be examined. Of the properties surveyed, the occupancy rates ranged from 86.5% to 100.0%
with an average of 94.9%.
The occupancies for the market rate comparables are shown here:
Property No. of units Occupancy # Vacant Market
Sundance at the Crossing 4/17 455 92% 36 Market
Autumn Chase 4/17 176 97% 5 Market
Southport Crossing 4/17 328 92% 26 Market
Buckridge 5/17 80 100% 0 Market
Waterford Place 4/17 260 97% 9 Market
Creekside South 4/17 190 96% 8 Market
The Sycamores 4/17 210 99% 2 Market
Windsor Court 4/17 342 99% 3 Market
Grand Oaks 4/17 120 97% 4 Market
Madison Village 4/17 192 86% 26 Market
Valley Forge 4/17 140 100% 0 Sec 42
Bradford Lake 4/17 358 96% 14 Sec 42
Berkley Commons 4/17 544 92% 44 Sec 42
Stratford Place 5/17 120 98% 3 Sec 42
Total 3,515 94.9% 180
Area Occupancy - Total Market
Property No. of units Occupancy # Vacant Market
Sundance at the Crossing 4/17 455 92% 36 Market
Autumn Chase 4/17 176 97% 5 Market
Southport Crossing 4/17 328 92% 26 Market
Buckridge 5/17 80 100% 0 Market
Waterford Place 4/17 260 97% 9 Market
Creekside South 4/17 190 96% 8 Market
The Sycamores 4/17 210 99% 2 Market
Windsor Court 4/17 342 99% 3 Market
Grand Oaks 4/17 120 97% 4 Market
Madison Village 4/17 192 86% 26 Market
Total 2,353 94.9% 120
Area Occupancy - Market Rate
Page 69
Of the LIHTC properties surveyed, occupancy rates ranged from 92.0% to 100.0% with an average
of 94.8%. This equates to a vacancy rate of 5.2%.
The occupancies for the Section 42 projects follow:
Overall vacancy rates in most area properties are low. Typically, where vacancy rates are lower than 7
to 8 percent, more units are needed. The overall vacancy is 5.1%, which indicates a need for more
units.
Summary of occupancy rates
The market occupancies are strong.
Market type Occupancy Minimum Occupancy Maximum Average Occupancy
Market 86.5% 100.0% 94.9%
Section 42 92.0% 100.0% 94.8%
Property No. of units Occupancy # Vacant Market
Valley Forge 4/17 140 100% 0 Sec 42
Bradford Lake 4/17 358 96% 14 Sec 42
Berkley Commons 4/17 544 92% 44 Sec 42
Stratford Place 5/17 120 98% 3 Sec 42
Total 1,162 94.8% 60
Area Occupancy - Section 42
Page 70
Market rate comparables
This section summarizes the amenities compared to the subject and provides full details on each of
the selected comparables.
Amenities: comparing the subject to market rate comparables
The following chart compares the subject to the selected market rate comparables in terms of
kitchen amenities, unit amenities, and project amenities. Note that 9 of the 10 comparables have
pools and all of them have central air conditioning.
The subject is not listed here with the comparables because the details of the amenities have not
yet been determined.
Details on market rate comparables
These comparables were selected because they are market rate properties within the PMA without
age restrictions that have one-bedroom or two-bedroom units or both.
Appliances
Property Name Stove Refrig Dishwasher Disposal Microwave
Sundance at the Crossing 4/17 X X X X X
Autumn Chase 4/17 X X X X X
Southport Crossing 4/17 X X X
Buckridge 5/17 X X X X X
Waterford Place 4/17 X X X X
Creekside South 4/17 X X X
The Sycamores 4/17 X X X X
Windsor Court 4/17 X X X X X
Grand Oaks 4/17 X X X X X
Madison Village 4/17 X X X X
Unit Amenities
Property Name Central AC
Window
AC
Washer/
Dryer
W/D
Hookup
Patio/
Balcony
Window
Cover
Pull
cords/Call
Buttons Garage Carport
Sundance at the Crossing 4/17 X X X X X X
Autumn Chase 4/17 X X X X
Southport Crossing 4/17 X X X X
Buckridge 5/17 X X X
Waterford Place 4/17 X X X X X
Creekside South 4/17 X X X X
The Sycamores 4/17 X X X X
Windsor Court 4/17 X X X X X
Grand Oaks 4/17 X X X XMadison Village 4/17 X X X X
Property Name Year Built Pool
On-Site
Mgt
Laundry
Facilities Clubhouse
Fitness
Center
Play
ground
Computer
room
Sports
Court Storage Picnic Area Security
Comm.
Services Other
Sundance at the Crossing 4/171990, 1995 X X X X X X X
Autumn Chase 4/17 2000 X X X X X X
Southport Crossing 4/17 1968 X X X X
Buckridge 5/17 1964 X X X
Waterford Place 4/17 1987 X X X X X
Creekside South 4/17 1982 X X X X X
The Sycamores 4/17 1962 X X X X X
Windsor Court 4/17 1986 X X X
Grand Oaks 4/17 2000 X X X
Madison Village 4/17 1970 X X X X
Project Amenities
Page 71
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built NoParking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 735 $779 $1.06
1.1 0 766 $809 $1.06
2.1 0 978 $839 $0.86
2.1 0 811 $879 $1.08
2.2 1,030 $869 $0.84
2.2 0 1,027 $889 $0.87
2.2 0 1,069 $899 $0.84
2.2 0 1,175 $929 $0.79
0 0 $0
Community Amenities Pool, tennis, clubhouse, sports, jacuzzi, fitness, racquetball, business
1990, 1995
455
NA
92%
No
No
Marion
Units & Rent
Market
317-885-7368
Edward Rose
Garden
Average
Utilities
Unit Details
No
Open, Carport, Garage
CP: $30; G: $60
See Notes
Family
None
Gas
Central
Electric
Yes
No
Yes
Yes
Gas
Market Comparable 1
Extra fee: Fireplace, $20; lakeview, $20; vaulted ceiling, $10-30; W/D rental, $25 *Used to
represent a range in the rents based on floor, and the extra fees shown in this comparable.
Comments
IN
Apartment Details
Sundance at the Crossing
7213 Sundance Dr
Indianapolis
4/12/2017
Yes, full
Morgan
Property Details
Yes
Yes
Yes
Yes
Yes
Yes
Page 72
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 761 $759 $1.00
2.2 0 1020 $849 $0.83
2.2 0 1120 $919 $0.82
3.2 0 1315 $1,069 $0.81
0 0 $0
Community Amenities
2000
Muesing
Autumn Chase 4/17 4/25/2017
Marion
Garden 176
Yes
Market Comparable 2
YesUnits & Rent
3717 Piermont Dr Yes, full
*W/D are rented out for $45 a month
Tenants pay a flat fee for W, S, T: 1.1: $22, 2.2: $37, 3.2: $51
Comments
Average 97%
Indianapolis Debbie
IN 317-887-9000
No NA
Electric
Central
Yes
No*
Yes
Yes
Yes
Yes
Yes
Yes
Clubhouse, pool, playground, walking path, sports court
Apartment Details
Property Details
Utilities
Unit Details
Yes, 3 for the 3 bedroom
Open
No
No
Fireplace: $20; view: $10
Family
Market
None
Gas
Gas
Page 73
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built 2006
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 up 0 700 $579 $0.83
1.1 down 0 700 $619 $0.88
1.1 up* 0 700 $669 $0.96
1.1 down* 0 700 $719 $1.03
2.1 up 900 $699 $0.78
2.1 down 0 900 $719 $0.80
2.1 up* 0 900 $749 $0.83
2.1 down* 0 900 $749 $0.83
2.15 TH 0 1,400 $769 $0.55
2.15 TH* 0 1,400 $869 $0.62
3.25 TH 0 1,800 $919 $0.51
3.25 TH* 0 1,800 $989 $0.55
0 0 $0
Community Amenities
Comments
Property charges a flat fee for W, S, G: 1.1, $43; 2.1, $48; 2.2 TH, $63; 3.25 TH, $68.
*Upgraded units. Formerly known as Tuscan Point.
328
1968
Yes, full1451 E Southport Rd
No
Indianapolis Escavone
Market Comparable 3
Southport Crossing 4/17 4/12/2017
Garden, Townhome
Property Details
No
Open
No
No
W/D rental: $30
Family
Market
Utilities
W, S, T
Gas
Gas
Central
Gas
Unit Details
Yes
No
Yes
Yes
Yes
Pool, fitness
Yes
No
Yes
No
92%Average
NA
IN 317-783-2900
Marion M2
YesUnits & Rent
Apartment Details
Page 74
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built 2004
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 720 $625 $0.87
2.1 0 889 $725 $0.82
2.15 0 1,200 $780 $0.65
0 0 $0
Community Amenities Fitness Center
Central
Electric
Unit Details
Yes
No
No
Yes
Yes
Yes
1964
Average 100%
No NA
Indianapolis Shawna
IN 317-787-3675
Marion Self-managed
Property Details
Yes, 1 No
Open
No Family
No Market
Utilities
W, S, T
Garden 80
Apartment Details
Comments
--
Yes
Yes
Yes
YesUnits & Rent
6399 Buckridge West Dr Yes, full
Market Comparable 4
Buckridge 5/17 5/9/2017
Electric
Electric
Page 75
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built NoParking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 650 $610 $0.94
1.1 * 0 650 $680 $1.05
2.1 0 850 $690 $0.81
2.1 * 0 850 $765 $0.90
2.15 1,050 $780 $0.74
2.15 * 0 1,050 $800 $0.76
2.2 0 1,100 $810 $0.74
2.2 * 0 1,100 $830 $0.75
0 0 $0
Community Amenities
Yes
Unit Details
Yes, 7
Open, Carport
CP: $25
No
W/D : $40/month
Family
Market
W, S, T
Electric
Electric
Central
*Used to represent a range in the rent based on the lakeview, and whether or not the W/D is
included.
Comments
No
97%
Electric
Yes
No
Indianapolis
317-882-2111
No Yes
Property Details
Utilities
Yes
Yes
1987
Marion Mark 3
Average
Pool, tennis, clubhouse
Yes, full
Garden 260
Units & Rent
Sandy
IN
1009 Lismore Ln
Yes
Yes
Yes
Waterford Place 4/17 4/12/2017
NA
Market Comparable 5
Apartment Details
Page 76
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 675 $545 $0.81
2.1 0 875 $645 $0.74
3.15 TH 0 1150 $825 $0.72
0 0 $0
Community Amenities
IN
4/26/2017
Market Comparable 6
1982
Indianapolis Charlie
Yes
Marion
Units & Rent
190
Average 96%
Creekside South 4/17
8055 Crossing Dr
Yes
No Yes
Yes
Yes
Mark III
317-888-5607
NA
Garden
No
Property Details
Apartment Details
Comments
Unit Details
Yes
Yes
No
Yes
No No
$25 for lakeview, $25 for
Open
No Family
No Market
Utilities
W, S, T Central
Gas Gas
Gas
Clubhouse, pool, playground
Extra fee based on floor does not apply to the TH because it is a 2 story unit.
W/D rental: $40/month
Page 77
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 842 $629 $0.75
2.1 0 977 $729 $0.75
2.2 0 977 $739 $0.76
3.2 0 1,200 $859 $0.72
0 0 $0
Community Amenities
W, S, T are charged a flat fee to the tenant. *The first carport is included, a second would be $15
Indianapolis
1962
The Sycamores 4/17
Garden 210
No
Comments
Units & Rent
99%
No NA
Property Details
Yes, unsure No
Open, carport
Market Comparable 7
4/25/2017
1614 E Stop 11 Rd Yes, full
* Family
No Market
Barabra
IN 317-708-3256
Marion Muesing
Average
Apartment Details
Utilities
None Central
Electric Electric
Electric
Unit Details
Yes Yes
No Yes
No Yes
Yes
Yes Yes
Pool, fitness center, bus system
Page 78
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF1.1 0 470 $506 $1.081.1 0 485 $554 $1.141.1 0 510 $519 $1.021.1 0 525 $567 $1.081.1 558 $579 $1.041.1 0 585 $534 $0.911.1 deluxe 0 615 $623 $1.011.1 deluxe 0 660 $636 $0.962.1 0 870 $739 $0.852.1 0 920 $749 $0.812.2 0 970 $837 $0.862.2 0 1,075 $843 $0.782.2 0 1,140 $858 $0.75
0 0 $0
Community Amenities
1986
Pool, clubhouse, lakes
7302 Queen Anne Ct
Good
Windsor Court 4/17 4/26/2017
Market Comparable 8
Agent and corporate refused survey, got rent info online.
Comments
Units & Rent
Melissa
IN 317-788-0989
Marion
99%
Indianapolis
No
Yes Yes
No Yes
Sexton Properties
None
Yes, full
Apartment Details
NA
Yes
Yes Yes
Property Details
No No
Open, Carport, Garage
CP: $30; G: $60 Family
Alarms Market
Utilities
W, S, T Central
Electric Electric
Garden 342
Electric
Unit Details
Yes
Yes
Page 79
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 721 $625 $0.87
1.1* 0 721 $645 $0.89
2.15 0 947 $730 $0.77
2.15* 0 947 $740 $0.78
2.2 947 $755 $0.80
0 0 $0
Community Amenities
Unit Details
Yes Yes
Yes Yes
No Yes
Property Details
Yes, 2-3 years
No Family
No MarketUtilities
W, S, T Central
Electric Electric
Electric
317-888-6000
Manco
Garden
Yes
Comments
120
2000
No NA
No Yes
Average
$20 for better locations
Open
Extra fees don't apply to the 2.2
*Price varies depending on location
Market Comparable 9
Indianapolis Judy
IN
97%
Units & Rent
Marion
7215 Grand Ritz Ln Yes, full
Yes
Grand Oaks 4/17 4/12/2017
Apartment Details
Pool, clubhouse
Page 80
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 0 700 $549 $0.78
1.1 0 700 $569 $0.81
2.1 0 868 $669 $0.77
2.1 0 868 $719 $0.83
3.15 1,075 $829 $0.77
1.1 TH 0 700 $729 $1.04
2.15 TH 0 975 $809 $0.83
3.15 TH 0 1,300 $999 $0.77
0 0 $0
Community Amenities
1970
No NA
JoAnnIndianapolis
Madison Village 4/17
Average
No Yes
IN 317-784-8632
Marion Barrett & Stokely
Garden, Townhome 192
4/12/2017
7200 S Madison Ave Yes, full
86%
Comments
Market Comparable 10
Units & Rent
*Tenant pays a flat rate for their W, S, T (also G in the flats). 1.1, $49; 2.1, $59; 3.15, $69; 1.1 TH,
$20; 2.15 TH, $23; 3.15 TH, $26.
**There is an extra fee for lower level apartments, up to $20.
Apartment Details
Unit Details
Yes Yes
No Yes
Yes Yes
Yes Yes
Clubhouse, pool
Property Details
No **
Open
No Family
No Market
Utilities
G*, W, S, T Central
Gas Electric
Gas
Page 81
Deriving a market rent
To derive a market rent for the subject’s unit types, comparable market rate properties are
examined and line items, if relevant to the market, are adjusted to the subject. The adjustments are
discussed and then the form is shown.
This market rent derivation varies from the standard because the subject does not have specified
rents. Instead, the market analyst derives a lower-end target rent and a higher-end target rent.
Then the capture rate is measured with both sets of target rents. This derived rent is theoretical,
depending on the specific community, site, and unit amenities that will be offered. The analyst
assumes the subject will have similar amenities to the comparables in the areas that are receiving
higher rents.
The analyst is not a Realtor, nor a real estate appraiser, both of whom might have different
perspectives on the achievability of a rent for the subject.
Conclusion of market rents
Based on the analysis described in this section, the market rent for each unit type is determined as
shown in the following chart. The high-end rent assumes the property would have in-unit washer
and dryers, a pool, and a landscaped water feature.
Unit Type Derived Low-End
Market Rent
Derived High-End
Market Rent
One Bedroom $685 $735
Two Bedroom $738 $798
While all line items are considered, only those that warrant an adjustment are discussed.
Adjustments applied to the comparables are as follows.
Project
occupancy %
The occupancy in the subject’s market is strong; the average occupancy is 94.9%. When the
occupancy rate in a comparable project is less than the stabilized occupancy rate for a
market, a downward adjustment should be made. The stabilized occupancy is considered
95%; therefore, any property with an occupancy rate of less than 95% is adjusted. The
adjustment is applied as follows: (CompVacancy/.95)-1 = percentage applied to rent. If an
adjustment for occupancy is necessary, it is shown in the Other row in the rent derivation
grid. A slight adjustment is made for Sundance at the Crossing and Southport Crossing.
Concessions Concessions are not being offered in the market. Therefore, this adjustment is not applied.
The analyst notes that several of the properties were offering $200 to tenants that referred
a new tenant to the property, but this is a marketing technique rather than a concession.
Page 82
Year built The year built has a direct reflection on the condition of the property. The subject will be
available in 2018. The comparables are adjusted based on either year built or effective year.
The adjustment is $1 per year of difference with no adjustment for the first five years. The
maximum adjustment is $20 because it is assumed that a property will be renovated at least
every 25 years.
Air
conditioning
Central air conditioning is generally preferred to wall units. If the market surveys show
specific data, then it is used for the adjustment. Otherwise, an adjustment of $5 per unit is
shown in the section Other per-unit adjustments. All comparables have central air.
Parking All of the comps offer surface parking for no additional fee. Therefore no adjustment is
made. Several comparables have carports or garages for an additional fee. However, the
subject is limited with the size of the site and it appears less likely to be able to offer these
amenities.
Washer/
dryer
Sundance at the Crossing rents washers and dryers for $25 per month; Autumn Chase
charges $45 per month; Southport Crossing charges $30 per month; Waterford Place charges
$40 per month; and Creekside South charges $40 per month.
The analyst assumes the low rent represents a unit without a washer and dryer and the high
rent is for a unit with the appliances in the unit. The analyst uses an adjustment of $30 for
the one-bedroom unit and $40 for the two-bedroom unit.
Pool Nine of the 10 market comparables have a pool. To be competitive, the subject needs to
consider how to include a pool. The analyst believes the derived high rent represents a
subject with a pool. Buckridge is the only comparable without a pool.
The analyst uses an adjustment of $20 for the derived low rent, assuming no pool.
Page 83
Landscape
water
features
The comparables receiving higher rents all have a nicely landscaped water feature. For
example, see this at the entrance to Sundance at the Crossing. The rent increases $20 for a
view of the lake. The much larger lake is not shown in this photograph.
At Autumn Chase, the water feature is in the pond. They charge an extra $10 per
month for a lake view.
Creekside South charges $25 for a lake view.
In the analyst’s opinion, a lake is not necessary. But some sort of landscaped water
feature is necessary to be competitive.
Page 84
Unit size Sundance at the Crossing has a 1.1 unit with 735 SF for $779 and a 1.1 unit with 766 SF for
$809. The difference is $0.97 per SF. Autumn Chase has a 2.2 unit with 1,020 SF for $849 and
a 2.2 unit with 1,120 SF for $919. The difference is $0.70 per SF. The first 50 feet of
difference is disregarded. An adjustment of $0.70 per SF is applied after the first 50 feet are
disregarded. For the subject, the analyst chose the median unit size of the five market
comparables used for the rent derivation.
Number of
bathrooms
The Sycamores has a 2.1 unit for $729 and a 2.2 unit for $739, both with 977 SF. A $5
adjustment will be applied for the half bathroom and a $10 adjustment will be for the full
bathroom.
Utilities The analyst assumes the subject is paying water, sewer, and trash. Those comparables
paying different utilities were adjusted based on the following utility schedule. Sundance at
the Crossing and Autumn Chase pay for no utilities, but Autumn Chase charges the tenants a
flat fee for water, sewer, and trash. So the flat fee is used for the adjustment for Autumn
Chase.
1 BR 2 BR
Heating (gas) $30 $40
Heating (elec) $52 $64
Cooking (gas) $4 $5
Cooking (elec) $9 $9
Other Electric $38 $46
Air Conditioning $13 $17
Water Heating (gas) $26 $29
Water Heating (elec) $24 $29
Water $14 $16
Sewer $21 $21
Trash Collection $0 $0
Source of utilities: HUD schedule for Marion
County, eff. 1/31/2017
Page 85
One-bedroom units: rents and sizes
The rents for the comparables range from $545 to $779.
Comparables - One-Bedroom Units
Name Unit Size, SF Asking Rent Rent PSF
Subject - low rent 720 $685 $0.95
Subject - high rent 720 $735 $1.02
Sundance at the Crossing 4/17 735 $779 $1.06
Autumn Chase 4/17 761 $759 $1.00
Southport Crossing 4/17 700 $719 $1.03
Buckridge 5/17 720 $625 $0.87
Waterford Place 4/17 650 $680 $1.05
Creekside South 4/17 675 $545 $0.81
The Sycamores 4/17 842 $629 $0.75
Windsor Court 4/17 660 $636 $0.96
Grand Oaks 4/17 721 $645 $0.89
Madison Village 4/17 700 $569 $0.81
$500
$550
$600
$650
$700
$750
$800
0 1 2 3 4 5 6 7 8 9 10 11
Comparable Number
Comparables - One-Bedroom Units -Adjusted Rents
Asking Rent Subject - low rent Subject - high rent
500
600
700
800
900
0 1 2 3 4 5 6 7 8 9 10 11
Comparable Number
Comparables - One-Bedroom Units - Unit
Sizes
Unit Size, SF Subject
Page 86
Two-bedroom units: rents and sizes
The rents for the comparables range from $645 to $889.
Comparables - Two-Bedroom Units
Name Unit Size, SF Asking Rent Rent PSF
Subject - low rent 900 $738 $0.82
Subject - high rent 900 $798 $0.89
Sundance at the Crossing 4/171,027 $889 $0.87
Autumn Chase 4/17 1,020 $849 $0.83
Southport Crossing 4/17 900 $749 $0.83
Buckridge 5/17 889 $725 $0.82
Waterford Place 4/17 850 $765 $0.90
Creekside South 4/17 875 $645 $0.74
The Sycamores 4/17 977 $729 $0.75
Windsor Court 4/17 920 $749 $0.81
Grand Oaks 4/17 947 $740 $0.78
Madison Village 4/17 868 $719 $0.83
$500
$600
$700
$800
$900
$1,000
0 2 4 6 8 10
Comparables - Two-Bedroom Units -Adjusted Rents
Asking Rent Subject - low rent Subject - high rent
700
750
800
850
900
950
1,000
1,050
0 2 4 6 8 10
Comparables - Two-Bedroom Units -Unit Sizes
Unit Size, SF Subject
Page 87
Derivation of market rent
Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5
Name Southport Mixed UseSundance at the Crossing 4/17 Autumn Chase 4/17 Southport Crossing 4/17 Buckridge 5/17 Waterford Place 4/17
Data Adjustments Data Adjustments Data Adjustments Data Adjustments Adjustments
Market Market Market Market Market Market Market
Year built 2018 1995 $18 2000 $13 1968 1964 1987 $20
Year renovated No No 2006 $20 2004 $20 No
Population served families Family Family Family Family Family
Occupancy 92% -3.2% 97% 0.0% 92% -3.2% 100% 0.0% 97% 0.0%
Amenities
Stove Yes Yes Yes Yes Yes Yes
Refrigerator Yes Yes Yes Yes Yes Yes
Garbage Disposal Yes Yes Yes No Yes Yes
Dishwasher Yes Yes Yes Yes Yes Yes
Microwave No Yes Yes No Yes No
Central Air Yes Yes Yes Yes Yes Yes
Wall Unit Air No No No No No No
Garage No Yes No No No No
Carport No Yes No No No Yes
In-unit Laundry Yes No No No No No
Laundry Hookup No Yes Yes Yes No Yes
Coin Op Laundry No Yes Yes Yes Yes Yes
Mini Blinds Yes Yes Yes Yes Yes Yes
Patio/ Balcony Yes Yes Yes Yes Yes Yes
Storage No No No No No No
Clubhouse amenities Yes Yes Yes No No Yes
Pool Yes Yes Yes Yes No Yes
Emergency Pullcord No No No No No No
On-Site Management Yes Yes Yes Yes Yes Yes
Landscape water features Yes Yes Yes No Lake view Lake view
Southport Mixed Use Sundance at the Crossing 4/17Adj. Autumn Chase 4/17 Adj. Southport Crossing 4/17Adj. Buckridge 5/17 Adj. Waterford Place 4/17Adj.
Unit size
One bedroom 720 735 $0.00 761 $0.00 700 $0.00 720 $0.00 650 $14.00
Two bedroom 900 1027 -$53.90 1020 -$49.00 900 $0.00 889 $0.00 850 $0.00
Bathrooms
One bedroom 1.0 1.0 $0 1.0 $0 1.0 $0 1.0 $0 1.0 $0
Two bedroom 1.5 2.0 -$5 2.0 -$5 1.0 $5 1.0 $5 1.0 $5
Included utilities
Heat No No No No No No
Electric No No No No No No
Trash Yes No No Yes Yes Yes
Sewer Yes No No Yes Yes Yes
Water Yes No No Yes Yes Yes
Heat type Electric Gas Gas Gas Electric Electric
One-bedroom utilities $136 $35 $22 $0 $0 $0
Two-bedroom utilities $165 $37 $37 $0 $0 $0
Other per-unit adjustments
One bedroom $0 $0 $0 $0 $0
Two bedroom $0 $0 $0 $0 $0
Total adjustments
One bedroom $28 $35 -$3 $20 $34
Two bedroom -$32 -$4 $1 $25 $25
Unadjusted rents
One bedroom $779 $759 $719 $625 $680
Two bedroom $889 $849 $749 $725 $765
Derived rent
One bedroom - Low $685
Two bedroom - Low $738
One bedroom - High $735 $807 $794 $716 $645 $714
Two bedroom - High $798 $857 $845 $750 $750 $790
Page 88
LIHTC comparables
This section summarizes the LIHTC amenities compared to the subject, and provides full details on
each of the selected comparables.
Amenities: comparing the subject to LIHTC comparables
The following chart compares the subject to the selected comparables in terms of kitchen
amenities, unit amenities, and project amenities. This is for the LIHTC properties only.
Details on LIHTC comparables
This section contains the Section 42 comparables.
Appliances
Property Name Stove Refrig Dishwasher Disposal Microwave
Valley Forge 4/17 X X X X X
Bradford Lake 4/17 X X X X
Berkley Commons 4/17 X X X X
Stratford Place 5/17 X X X X X
Unit Amenities
Property Name Central AC
Window
AC
Washer/
Dryer
W/D
Hookup
Patio/
Balcony
Window
Cover
Pull
cords/Call
buttons Garage Carport
Valley Forge 4/17 X X X X X
Bradford Lake 4/17 X X X X
Berkley Commons 4/17 X X X X
Stratford Place 5/17 X X X X
Project Amenities
Property Name Year Built Pool
On-Site
Mgt
Laundry
Facilities
Clubhouse
or
community
room
Fitness
Center Playground
Computer
or business
room
Sports
Court Storage Picnic Area Security
Comm.
Services Other
Valley Forge 4/17 1964 X X X X X X X
Bradford Lake 4/17 1969 X X X X
Berkley Commons 4/17 1964 X X X X X X
Stratford Place 5/17 2005 X X X
Page 89
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built 2007, 2008Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 30% 0 782 $306 $0.39
1.1 40% 0 782 $437 $0.56
1.1 50% 0 782 $567 $0.73
1.1 60% 1 782 $698 $0.89
2.1 30% 938 $375 $0.40
2.1 40% 0 938 $532 $0.57
2.1 50% 0 938 $689 $0.73
2.1 mkt 0 938 $680 $0.72
2.2 30% 0 989 $375 $0.38
2.2 40% 0 989 $532 $0.54
2.2 50% 0 989 $689 $0.70
2.2 mkt 0 989 $695 $0.70
3.1 30% 0 1,301 $414 $0.32
3.1 40% 0 1,301 $596 $0.46
3.1 50% 0 1,301 $777 $0.60
3.1 mkt 1 1,301 $785 $0.60
0 0 $0
Community Amenities
*One carport is included. The second is $25.
Yes YesUnits & Rent
CommentsPool, clubhouse, computer room, fitness, playground
Yes Yes
No Yes
No Yes
Electric Electric
ElectricUnit Details
Yes Yes
No Sec 42Utilities
W, S, T Central
Property Details
Yes, 53 No
Open, Carport
CP: $25* Family
Average 100%
No NA
Garden 140
Indianapolis Angela
IN 317-786-8888
Marion Pearl Companies
1964
Apartment Details
Valley Forge 4/17 4/25/2017
4350 S Madison Ave Yes, full
Section 42 Comparable 1
Page 90
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built Yes
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 50% 56 787 $589 $0.75
1.1 60% 56 787 $597 $0.76
2.1 50% 92 1046 $679 $0.65
2.1 60% 91 1046 $699 $0.67
2.1.5 TH 60% 1,136 $719 $0.63
3.1.5 60% 63 1,320 $827 $0.63
0 0 $0
Community Amenities
CommentsPlayground, sports court
Property is for one to six person households with income from $20,124 - $47,820.
Yes Yes
No YesUnits & Rent
Unit Details
Yes Yes
No Yes
Yes Yes
Utilities
W, S, T, G Central
Gas Gas
Gas
Open
None Family
No Sec 42
None NA
Two-story garden 358Property Details
Yes, unsure None
IN 317-888-2805
Marion CRF
Average 96%
1969
Bradford Lake 4/17 4/25/2017
7626 Portage Ave Yes
Indianapolis Danielle
Section 42 Comparable 2
Apartment Details
Page 91
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 55 625 625 $530 $0.85
2.1 33 760 625 $635 $0.84
2.15 TH 144 960 760 $710 $0.74
2.15 TH 80% 0 960 760 $690 $0.72
3.15 TH 1,245 960 $775 $0.62
3.15 TH 80% 0 1,245 $755 $0.61
4.25 TH 0 1,370 $910 $0.66
4.25 TH 80% 0 1,370 $890 $0.65
0 0 $0
Community Amenities
Units & Rent
Comments
Pool, tennis court, playground, fitness facility, walk in closets
Extra fee: Downstairs units cost extra, $15 if 2 bed or 4 bed, $20 if 1 bed or 3 bed. *Only in the
TH.
There is a fee for W, S, T. Apartment: $10, TH: $20
Yes* Yes
Yes Yes
No Yes
Gas
Unit Details
Yes Yes
No Yes
No Sec 42
Utilities
None Central
Gas Electric
Property Details
Yes, unsure See Notes
Open
No Family
Average 92%
No NA
Garden 544
1964
Indianapolis Jacklyn
IN 317-889-3100
Marion Van Rooy
Apartment Details
Berkley Commons 4/17 4/25/2017
8201 S Madison Ave Yes
Section 42 Comparable 3
Page 92
Name Date
Address On site manager
City Property Contact
State phone #
County Management Company
Condition Occupancy
Specials If <90% reason
Type of Design No. of Units
Waiting list Extra fee
Parking Year Built No
Parking Fee Population Served
Security Market
Utilities paid by owner A.C.
Heat Cooking
Hot water
Balcony/patio Mini-blinds
Washer/dryer Refrigerator
W/D Hookup Stove
Laundry Facilities Disposal
Microwave Dishwasher
Description No. Units Unit Size Rent/Month Rent/SF
1.1 40% 0 772 $425 $0.55
1.1 50% 0 772 $537 $0.70
1.1 60% 0 772 $590 $0.76
1.1 mkt 0 772 $625 $0.81
2.1 40% 945 $487 $0.52
2.1 50% 0 945 $635 $0.67
2.1 60% 0 945 $668 $0.71
2.1 mkt 0 945 $700 $0.74
3.2 40% 0 1,242 $558 $0.45
3.2 50% 0 1,242 $738 $0.59
3.2 60% 0 1,242 $810 $0.65
3.2 mkt 0 1,242 $840 $0.68
4.2 40% 0 1,341 $604 $0.45
4.2 50% 0 1,341 $806 $0.60
4.2 60% 0 1,341 $875 $0.65
4.2 mkt 0 1,341 $910 $0.68
0 0 $0
Community Amenities
Yes YesUnits & Rent
Comments
Playground
--
No Yes
Yes Yes
Yes Yes
Gas Electric
Electric
Unit Details
Yes Yes
No Family
No Sec 42
Utilities
W, S, T Central
Property Details
No No
Open 2005
Average 98%
No NA
Garden 120
Indianapolis Susan
IN 317-375-1576
Marion PWT Development
Section 42 Comparable 4
Apartment Details
Stratford Place 5/17 5/9/2017
6050 Castleford Dr Yes
Page 93
Page 94
Map of subject relative to all comparables
This map includes the market rate comparables with the subject. The PMA boundaries are beyond the edges of the map.
1 Sundance at the Crossing 4/17 Indianapolis
2 Autumn Chase 4/17 Indianapolis
3 Southport Crossing 4/17 Indianapolis
4 Buckridge 5/17 Indianapolis
5 Waterford Place 4/17 Indianapolis
6 Creekside South 4/17 Indianapolis
7 The Sycamores 4/17 Indianapolis
8 Windsor Court 4/17 Indianapolis
9 Grand Oaks 4/17 Indianapolis
10 Madison Village 4/17 Indianapolis
Page 95
Page 96
This map includes the LIHTC comparables with the subject.
1 Valley Forge 4/17 Indianapolis
2 Bradford Lake 4/17 Indianapolis
3 Berkley Commons 4/17 Indianapolis
4 Stratford Place 5/17 Indianapolis
Page 97
Comparables for rural developments
The QAP specifies that when an insufficient number of comparables exist in rural communities, three
developments in adjacent markets need to be used in the supply analysis.
This is not applicable to the subject.
Waiting Lists
During April and May 2017, our office surveyed many properties in the city of Southport. A few of the
comparables reported waiting lists.
Availability of other affordable housing units
According to the Site to Do Business, the average home sales price for 2016 was $136,485.
With typical terms of a 30-year mortgage at 3.75%, the monthly payment is $600. Of course, home
ownership comes with property taxes, insurance, utility payments, and home maintenance. It is
possible that home ownership would be a viable option for a potential renter who is willing to take on
the responsibilities of home ownership.
LIHTC Property name No. of units Occupancy Population served Waiting List
1 Valley Forge 4/17 140 100% Family Yes, 53
2 Bradford Lake 4/17 358 96% Family Yes, unsure
3 Berkley Commons 4/17 544 92% Family Yes, unsure
4 Stratford Place 5/17 120 98% Family No
Market Property name No. of units Occupancy Population served Waiting List
1 Sundance at the Crossing 4/17 455 92% Family No
2 Autumn Chase 4/17 176 97% Family Yes, 3 for the 3 bedroom
3 Southport Crossing 4/17 328 92% Family No
4 Buckridge 5/17 80 100% Family Yes, 1
5 Waterford Place 4/17 260 97% Family Yes, 7
6 Creekside South 4/17 190 96% Family No
7 The Sycamores 4/17 210 99% Family Yes, unsure
8 Windsor Court 4/17 342 99% Family No
9 Grand Oaks 4/17 120 97% Family Yes, 2-3 years
10 Madison Village 4/17 192 86% Family No
Page 98
Building permits
According to the building permits filed in Marion County over the last 10 years for multifamily
structures, the construction level has seen a surge in the last four years.
Source: U.S. Census Building Permits Survey, SODCS Building Permits data retrieved May 2017
0
500
1000
1500
2000
2500
3000
Building Permits - Marion County
Multifamily Structures Single-family Structures
Page 99
Analysis of commercial use The first floor in the subject is tentatively planned for office or retail development. The purpose of this
section is to provide some analysis of trends for those two sectors to provide guidance for the
marketing of this site. First, national trends are reviewed followed by local trends.
The Urban Land Institute forecast for April 201721 projects moderate commercial real estate price
growth but at subdued or decelerating rates. The forecast for 2017 and 2019 retail is for increasing
vacancy rates worse than long-term averages. However, the forecast for office vacancies is better than
long-term averages.
Overview of the national office market
Nationally, office vacancy rates have been trending down since a high in 2009. Forecasts for the near
term show stabilization around 12.5%.
21 “ULI Real Estate Consensus Forecast, A Survey of Leading Real Estate Economists/Analysts,” published April 2017 by the ULI Center for Capital Markets and Real Estate. It is available at www.uli.org/consensusforecast.
Page 100
Rental rates for office space have seen above-average group for 2011 through 2015. After a drop in
2016, rent growth is stabilized around the 20-year average of 2.3%.
CBRE, one of the contributors to the ULI Consensus Forecast, unsurprisingly has data that echos the
ULI charts showing that office vacancy rates nationally have been trending down and appear to be
stabilized around 12.5 percent.
Page 101
Suburban office markets nationally generally average higher vacancy rates and are remaining flat
around 14.2 percent.
The 2017 Q1 office report22 says, “Although this marks the first increase in the vacancy rate since Q1
2010, the U.S. office market remains fairly tight, and vacancy is within 60 basis points of prior-cycle
lows from early 2007.”
Technology is driving most of the absorption now across the country. However, in Indiana, more
technology companies are moving to downtown Indianapolis rather than the suburbs.
22 “New supply moves office market closer to equilibrium,” CBRE Occupierview Snapshot, U.S. Office, Q1 2017. It is available here: http://www.cbre.us/UnitedStates/Research%20and%20Reports/US%20Research
Page 102
Overview of Indianapolis office market
Colliers provides information on the Indianapolis office market and their classification system is
generally subdivided into Top Tier Class A, Low Tier Class A, and Creative/Character. Top Tier Class A is
the most expensive and desirable space. Low Tier Class A space is less concerned with aesthetics and
location but still in a well-maintained building. Creative/Character space is typically older buildings
with below average maintenance and infrastructure. The primary reason tenants lease space at Class C
buildings is because of the low lease rate.
A good example of a Creative/Character office space is the corporate headquarters of Angie’s List on
the near east side of downtown Indianapolis. They took occupancy of a former firehouse for their first
offices. They kept the firepole and built around it. As they expanded, they bought other buildings and
converted them to office space. A former autobody repair shop because a fitness gym and showers for
the employees.
The firehouse was originally constructed in 1896. You can still see the bays for the fire trucks and the
bell tower used to signal a fire. It was renovated and adapted for office use by Angie’s List as part of
their corporate headquarters.
Page 103
In the Indianapolis Central Business District, Creative/Character office absorption is driving vacancy
rates down.23
Overall, the Indianapolis office market is seeing vacancy drop and asking rents increase from Q1 2016
to Q1 2017:
Source: Colliers Indianapolis Office Research & Forecast Report, Q1 2017.
23 “Large Suburban Blocks of Space Hit the Market,” Indianapolis Office Q1 2017 Research & Forecast Report published by Colliers International.
Page 104
Aprimo moved from the north side of Indianapolis into downtown; SalesForce.com expanded to lease
250,000 SF in the Chase Tower and bought the naming rights to the building. Cummins, the trucking
engine manufacturer based in Columbus, is opening a new 9-story building in downtown Indianapolis
in 2017 for logistics and sales employees. The company says the downtown location is helping them
recruit employees.
When the Indianapolis market is divided by geography, Southport is included in the South submarket:
Page 105
In the South submarket, there has been some activity in 2017.
Using more data from Colliers, the overall vacancy rate for office space in the south submarket has
been trending down for the last 7 quarters. No new supply is entering the market or under
construction. Year-To-Date absorption was 55,728 Sf for 2015 and 46,603 SF for 2016. Some inventory
left the market, mildly contributing to the decrease in the vacancy rate.
Shared or entrepreneur office space
A newer type of office space is gaining traction in the Indianapolis area. CBRE published a three-part
series on the Shared Workplace in 2016 examining this national trend. Shared space is a type of office
in which small tenants are offered the amenities of a traditional office, such as a conference and break
room. Often, the office also have community spaces and strive to lease the offices to tenants that will
create a shared energy and connectivity.
The Speakeasy, in Broad Ripple, opened in 2012 as the area’s first collaborative workspace in Central
Indiana. It operates as a 501(C)3 and is membership-based. They identify their members as “creatives,
Page 106
programmers, founders, freelancers, the business minded, the tech savvy, first time starts and
seasoned professionals.”
The interior is designed to have individual workspaces and shared community spaces.
Cowork Indy is located at 120 East Market Street in downtown Indianapolis. It is another membership-
based space that offers free printing and copying, high-speed internet, and 24-hour access.
Memberships are available monthly; the standard one is 15 days a month for $89 and the deluxe one
is 30 days a month for $149.
Co-working space
Page 107
The Hinge Bureau is located at The Hinge Apartments in Fletcher Place on the southeast side of
downtown Indianapolis. It offers workstations and three breakout rooms that can be reserved. It also
has office spaces that are fully furnished with IKEA desks and cabinets.
Common areas at The Hinge Bureau
The Union 525 is newly opened in 2017 at 525 South Meridian in downtown Indianapolis in the former
Emmerich Manual High School building. It has some of the space available and will be opening more
soon. It will offer 122,000 SF of short-term leases to tech companies. Amenities will include movable
walls, free parking, internet with VOIP and hosting, and 24-7 key card access to the building. The
former gymnasium has been wired for sound and video to be used as event space.
Page 108
Launch Fishers is a specific initiative from the City of Fishers to grow entrepreneurs. It has 52,000 SF
and offers access to wi-fi, a coffee shop, copy/print/scan services, and community spaces. It originally
started in the basement of the Fishers library and moved to a new space when it grew to over 500
members.
The glassed-in areas are private offices.
The Southside Business Initiative is a co-working space located at 6825 S Madison Avenue. It opened in
October 2015 and current members include law offices, lawn care, and a medical office. Membership
is $500 per year or $50 per month. To have a dedicated desk, the fee is $1500 per year.
Conclusion of the office market
National trends and local trends show that the office market is relatively strong. The south submarket
does not have very much recent activity but vacancy rates have continued to drop for 7 quarters in a
row. Since there is already a co-working spaces in the area, it might be used as a feature to attract
another office tenants. If the office tenant needs more flexible space, some employees can be placed
at the Southside Business Initiative.
Page 109
Overview of the national retail market
According to the ULI Real Estate Consensus Forecast, rental rates for retail space dropped below
average in 2008 and finally rose to 0.8% in 2014 trended to a high of 2.7% in 2016. Forecasts for 2017
through 2019 show rental rate growth of 2.0% to 2.5%.
Consumer Confidence Index
The retail market, compared to the office market, is more directly related to consumer confidence
because consumers do not spend money when they are concerned about the economy. This is a
national overview.
Since 2008, the index of consumer sentiment has been overall trending up:
Source: Copyright © 2017. The Regents of the University of Michigan
Page 110
Since May 2016, the index has moved to near all-time high in May 2017 with an index of 97.7.
According to the chief economist, Richard Curtin, “The recent stability in consumer sentiment,
however, masks two important underlying shifts in the components as well as in the partisan divide.
More favorable income gains and low inflation meant that consumers held the most favorable real
income expectations in a dozen years.”24
There are differences in expectations for various sectors with vehicle buying expectations continuing
to drop and home sellers holding favorable views. Overall, personal consumption expenditures are
forecast at a 2.3% for 2017.
24 For more information on the index, see http://www.sca.isr.umich.edu/
Page 111
Overall consumer sentiment indicates positive expectations for retail. However, the retail picture is
more complicated. Reports from Cushman & Wakefield indicate year-over-year holiday sales showed a
3.8% growth, but Amazon is believed to have grown 20% in year-over-year holiday sales.25
CBRE research shows that online retailers posted a 12% growth in Q1 2017 over sales in Q1 2016. Sales
at brick-and-mortar department stores continued to decline.
25 Marketbeat Indianapolis Retail QA4 2016, Cushman & Wakefield.
Page 112
Nationally, demand for retail space remains flat in the first quarter of 2017:
The bright spots in national retail rest with online retailers and some surge in neighborhood,
community, and strip retailers:
Page 113
Overview of Indianapolis retail market
In Indianapolis, the retail market showed slight declines in vacancy rates to 5% and continued
increases in rental rates.
Source: Marketbeat Indianapolis Retail QA4 2016, Cushman & Wakefield.
Similar to trends seen nationally, the neighborhood and community centers were responsible for the
largest occupancy gains through the year.
Source: Marketbeat Indianapolis Retail QA4 2016, Cushman & Wakefield.
Page 114
However, the Cushman and Wakefield report preceded the local appliance retailer H.H. Gregg
declaring bankruptcy and the imminent demise of Marsh grocery stores. These two changes in the
market will put more retail space into play and drive rental rates and occupancy down.
Conclusion
Retail space in being affected by a fundamental shift in where consumers purchase their items. Retail
sales and consumer confidence are trending upward but the gains are coming from online retailers.
Locally, both H.H. Gregg and Marsh, which are headquartered in Indianapolis, have announced either
closings or appear ready to announce bankruptcy. These closings will put more pressure on retail
space.
Page 115
Conclusions and Recommendations The site is in a good location in an area that is going through redevelopment. The area has a high
percentage of renters and is located with easy access to Interstate 65 and US 31. It will be appealing to
households where one person works downtown and the other works in Greenwood or Franklin.
This analysis was conducted assuming the subject would have 95 units and our analysis has
determined the capture rate is 4.5%. The market occupancy is strong and several properties are
reporting waiting lists. The area has not had any new multifamily construction since 2000.
Projections show that both households and population numbers are increasing and the number of
renters are also increasing.
The economy is doing well but there are signs that retail trade is changing and is shedding jobs. The
subject is tentatively planned for office or retail development on the first floor. The analyst
recommends considering a retail portion that is food-based, such as a coffee shop, and office use with
possible a co-working structure to engender entrepreneurship in the area.
Overall, there is nothing that indicates the project will have difficulty leasing the units. The market has
strong occupancies and this should continue after the construction of the subject. The market analysts
recommend approval of the project based on the market evidence.
Page 116
Signed Statement I have made a physical inspection of the site and market area and that information has been used in
the full study of the need and demand for new rental units. To the best of my knowledge, the market
can support the demand shown in the study. Neither I nor anyone at my firm has any interest in the
proposed development or relationship with the ownership entity. Compensation for my services is not
contingent upon this development receiving a reservation or allocation of tax credits. I affirm under
the penalties of perjury that the foregoing representations are true.
Market Study Analyst
Signature:
Printed Name: Jennifer Atkinson
Page 117
Market Study Analyst Statement of
Experience Mitchell Market Analysts started with Mitchell Appraisals, a commercial real
estate appraisal firm founded in 1988 by Bonnie Mitchell, Indiana’s first female
MAI-designated appraiser. Mitchell Appraisals provides real estate appraisals
and related services throughout the Midwest and occasionally in other states.
We are located in Indianapolis and do most of our work in Indiana. We also hold licenses in Kentucky,
Tennessee, Michigan, and Ohio. Early in 2013, Mitchell Appraisals became one of the founding
members of Valbridge Property Advisors, currently with 42 firms across the country. Valbridge is
among the top three national commercial real estate valuation companies with 145 MAIs, 59 office
locations, and 600 staff.
A long-term specialty of Mitchell Appraisals is multifamily projects, especially LIHTC multifamily
projects. We have done over 600 multifamily projects in the last five years. We started performing
LIHTC market studies in 1997 and our work in this area has continued to grow.
Recognizing the need to focus on market studies, we formed a sister
company in October 2010 called Mitchell Market Analysts, Inc. Now, all
market study services including LIHTC market studies, MAP market studies,
and HUD Rent Comparability Studies are performed by Mitchell Market
Analysts. All appraisals are performed by Mitchell Appraisals.
Mitchell Market Analysts is a 100% WBE and has no overlap of ownership or management with
Valbridge Property Advisors | Mitchell Appraisals, Inc. The principals are:
Jennifer Atkinson
Elizabeth Mutzl
Bonnie Mitchell
The principals of Mitchell Market Analysts are approved by the state allocation agencies in Indiana,
North Carolina, Kentucky, and Georgia.
Our clients have been generous with their praise. Here is a sampling:
"Thanks, Mitchell team. You guys are great. Again, cannot thank you enough for going the extra
mile on this." - Local developer
“Thank you again – you’ve been a pleasure to work with.” – State finance authority representative
“By the way, I think this study reads even better than last year’s study. Very nicely done!” – Local
developer
Page 118
Jennifer Atkinson
Primary Expertise
Affordable and market-rate, multifamily market analysis, project management, process improvement,
technical writing, and training.
Professional Memberships
Associate Member, National Council of Housing Market Analysts: 2008 - present.
Professional Member Designation, National Council of Housing Market Analysts: 2015.
Experience
Principal, Mitchell Market Analysts, Inc., Indianapolis, IN: October 2010 – present.
Operations Manager, Mitchell Appraisals, Inc., Indianapolis, IN: April 2006 – 2011.
Deployment Manager, Training Manager, Senior Technical Writer, NoInk Communications and
Everypath, Carmel, IN and Santa Clara, CA: 2003 – 2006.
Project Manager, Roche Diagnostics, Indianapolis, IN: 2002 – 2003.
Manager of Technical Publications, Senior Technical Communicator, Peregrine Systems (an IBM
company), Indianapolis, IN: 1999 – 2002.
Independent Consultant for various clients: 1998 – 1999. Principal author of Java Studio Blue Book:
Develop Intuitive and Effective Web Content and Applications, published in 1999 by Coriolis Group
Books. Co-authored Effective Web Design in 3 Days with NetObjects Fusion. Developed courses for
Novell named “Using Animation in Your Website” and “Using Multimedia in Your Website.” Taught
“Designing Information for the Web” and “Planning an Information Product” for Deloitte and
Touche.
Various levels of service and membership in the Society for Technical Communication: 1989 –
2002. Service included organizing the first Western Region conference and running the 1,200-
member Silicon Valley Chapter as President, which was the largest chapter in the country.
Manager, Technical writer, PDR Information Services, Santa Clara, CA: 1990 – 1998.
Technical Writer, Control Data Corporation, Sunnyvale, CA: 1988 – 1990.
Programmer, United Technologies Chemical Systems Division, San Jose, CA: 1986 – 1988.
Professional Activity
National
National Council of Housing Market Analysts, member of the standards committee:
2008-present.
Affordable Assisted Living: New Frontiers for Aging in Place, principal author on a white
paper for the National Council of Housing Market Analysts, presented in New Orleans in
December 2014.
Author of “Affordable Assisted Living: Innovation Funding for Aging in Place,” published
in the January 2015 issue of Tax Credit Advisor.
Education
Bachelors of Arts in Communication, Purdue University, West Lafayette, IN: 1986.
Page 119
Associates of Science in Computer Science, Purdue University, West Lafayette, IN: 1986.
Certificate in Managing Publications and Documentation, University of Santa Cruz, Santa Clara, CA:
1993.
Certified Webmaster, DCI, Santa Clara, CA: 1997.
Successfully completed various qualifying and continuing education courses starting in 2006 through
2013. Recent highlights include:
North Carolina Affordable Housing Conference: 2012, 2013.
National Council of Housing Market Analysts: 2009, 2010, 2011, 2012, 2013, 2014, 2015
Indiana Affordable Housing Conference: 2010, 2011, 2012, 2013, 2014, 2015
Georgia Department of Community Affairs Tax Credit Workshop: 2013.
Speaking Engagements
“Affordable Assisted Living: New Frontiers for Aging in Place,” National Council of Housing Market
Analysts, Washington DC, June 2014.
“Guerilla UI Design,” Hoosier Chapter of Society for Technical Communication: 2004.
“Keys to a Successful Career,” for a Purdue University computer science class: 2002.
“Owning User Interface Design” and “History of Quality Initiatives,” for the annual Society for
Technical Communication Conference: 2001.
“What it Really Takes to Succeed,” International Technical Communication Conference: 1994,
1995.
Elizabeth (Liza) C. Mutzl
Primary Expertise
Multifamily properties including valuation, market studies, and tax assessment appeals. Specializes in
low income housing, MAP, assisted living facilities, nursing homes, office, and retail.
Licenses
Certified General Appraiser, State of Indiana CG40200255
Certified General Appraiser, State of Michigan 1201071312
Certified General Appraiser, State of Ohio 2012001228
Professional Memberships
Professional Member Designation, National Council of Housing Market Analysts: 2008 - present.
Experience
Principal, Mitchell Market Analysts, Indianapolis, IN: 2011 – present.
Associate Vice President, Mitchell Appraisals, Inc., Indianapolis, IN: 2003 – present.
Staff appraiser, Mitchell Appraisals, Inc., Indianapolis, IN: 1997 – 2003.
Page 120
Professional Activity
Local
Indianapolis Sub-Chapter Vice-Chairman of the Hoosier State Chapter of the Appraisal
Institute: 2002.
Indianapolis Sub-Chapter Chairman of the Hoosier State Chapter of the Appraisal
Institute: 2003.
Indianapolis Sub-Chapter Public Relations Chair: 2003-2005.
Indy Crew Network, Women in Real Estate.
Co-Chair Indy Crew Golf Outing.
National
National Council of Housing Market Analysts, Executive Committee: 2008-present.
National Council of Housing Market Analysts, peer reviewer and member of the
membership committee: 2008 – present.
Co-Chair Education Committee: 2011-present.
Education
Bachelor of Arts, Communications with a concentration in Advertising and a minor in Supervision,
Purdue University, West Lafayette: 1990.
Successfully completed various qualifying and continuing education courses starting in 1997 through
2011. Recent highlights include:
MAP (Multifamily Accelerated Processing, a HUD program) Training: 2001, 2002, 2005, 2009, 2011,
2012, 2013.
National Council of Affordable Housing Market Analysts: 2007, 2008, 2009, 2010, 2011, 2012,
2013, 2014, 2015.
Michigan Appraisal Law: 2008, 2011.
Appraisal of Nursing Facilities: 2008.
USPAP: 2008-2009, 2010-2011, 2013.
Real Estate Finance Statistics and Valuation Modeling: 2009.
Appraising and Analyzing Office Building for Mortgage Underwriting: 2011.
Appraising Apartments: 2011.
How to Analyze and Value Income Properties: 2011.
Bonnie A. Mitchell, MAI
Primary Expertise
Multifamily properties including market studies, expert testimony, and tax assessment appeals.
Specializes in low income housing, MAP, assisted living facilities, nursing homes, and hotels.
Professional Memberships
MAI Member, Appraisal Institute. Designated 1986. Retired 2012.
Page 121
Awards
The William A. Krount Service Award. Received for service above and beyond what is expected.
Awarded by CIMG of MIBOR.
Edward L. White Achievement Award. Received for service in fostering the Appraisal Institute.
Awarded by Hoosier State Chapter of the Appraisal Institute.
Experience
Principal, Mitchell Market Analysts, Inc., Indianapolis, IN: 2010 – present.
Principal, Mitchell Appraisals, Inc., Indianapolis, IN: 2004 – 2012.
President of Mitchell Appraisals, Inc., Indianapolis, IN: 1988 –2004.
Head of Appraisal Department, Washington Square Mortgage Company, Indianapolis, IN: 1987 –
1988.
Staff Appraiser for Indiana Mortgage Corporation, Indianapolis, IN: 1979 – 1987.
Professional Activity
Local
Newsletter Editor: 1985-1986.
Candidates Guidance Chairman, AIREA and SREA: 1988-1990.
Candidates Guidance Chairman: 1995.
IMDB Secretary, Executive Committee: 1985-1998.
Admissions Committee, AIREA and SREA: 1986-1994.
Admissions Chairman, Appraisal Institute: 1992-1993.
Admissions Committee, Appraisal Institute: 1994-1998.
Indianapolis Subchapter Advisory Board, Appraisal Institute: 1993.
Board of Directors Chapter 27: 1988-1991.
CIE Committee, MIBOR: 1994-1998.
Education Vice-Chair for the Hoosier State Chapter: 2001.
Education Chair for the Hoosier State Chapter: 2002-2003.
National
Vice Chairman, Regional Conference: 1988.
Non-Residential Demonstration Report Committee: 1988-1995.
Admissions Committee Regional: 1991-1998.
Regional Representative-Indiana Chapter: 1991-1994.
Education
Successfully completed various qualifying and continuing education courses starting in 1979 through
2012.
Page 122
Market Study Checklist
Standard INCLUDED (Yes or
No)
Page
Resume for market professional with demonstrable
experience in Indiana affordable housing markets
Yes Page 117
Executive Summary Yes Page 5
Development description Yes Page 9
Site Map Yes Page 10
Color photos of site Yes Page 9
Scope of Rehabilitation, if applicable NA
Market Area Description Yes Page 35
Detail of boundaries of primary market area Yes Page 35
2 scaled color maps of shopping, medical services,
public transit, etc. One with ¼ mile and ½ mile radii,
and one with 1 mile and 1.5 mile radii, showing
subject in proximity to neighborhood amenities.
Yes Page 25, 31
Market Area Economy Yes Page 37
Demographic Data Yes Page 48
Demand Analysis Yes Page 56
Projection of total demand from demand for new
renter households and demand from existing
households, and described in Schedule C of QAP
Yes Page 59
Minimum and maximum income ranges for each
targeted group
Yes Page 58
Definition of absorption period and rate to reach 95%
occupancy
Yes Page 62
Presentation of net demand in narrative, chart,
and/or tabular format
Yes Page 63
Demand calculations with rental assistance and
without rental assistance, if applicable
Yes Page 63
Assumptions for demand analysis Yes Page 56
Supply Analysis Yes Page 67
Survey of market rate and tax credit rental properties
including name, address, age and condition, area
median income level
Yes Page 67
Page 123
Type of federal and/or municipal subsidies, if
applicable
Yes Page 67
Presents of on-site management Yes Page 70
Number of units by bedroom type, number of
bathrooms for each unit type, square footage of units
Yes Page 67
Rents by number of bedrooms and baths, and square
footage
Yes Page 67
Unit and site amenities relative to the subject
property
Yes Page 70
Type of utilities Yes Page 70
Occupancy rates of each property Yes Page 68
Absorption history of each property (if recently
completed)
Yes Page 67
Color photographs of comparable properties Yes Starting on page 70
Color map depicting location of each property relative
to subject property
Yes Page 94
Market vacancy rate for PMA rental stock by
population and type of occupancy and unit size
Yes Page 68
Number of people on waiting lists for each property Yes Page 97
Discussion of availability of other affordable housing
options
Yes Page 97
In rural areas, data on developments in adjacent
markets with similar characteristics, if properties are
not available in PMA
Yes Page 97
Conclusions and Recommendations Yes Page 115
Candid conclusion about the subject property’s
feasibility in the market
Yes Page 115
Acknowledgement of Market Analyst
Signature:
Printed Name: Jennifer Atkinson
Title: Principal, Mitchell Market Analysts, Inc.
Page 124
Addenda
STDB Online Data Sources
STDB uses several databases as sources in their products:
Tele Atlas Streets
i-cubed Imagery
Business List Data
DigitalGlobe Imagery
National Geographic Topography
ESRI Demographics
ESRI Quarterly Population
AGS CrimeRisk
Market Potential
Workforce Strategies
FloodScape Maps
Community Tapestry –
Lifestyle/Psychographic
Consumer Expenditures
However, the report we generate from STDB primarily uses ESRI Demographics and ESRI Quarterly
Population.
Example of demand calculation
The following example explains how demand is calculated for the one-bedroom unit type. The
same procedure is used for each unit type.
The methodology for determining the minimum and maximum income was described in the
narrative of the report. This describes the methodology used to determine the percentage of
income-eligible renters by AMI level.
In this example the minimum income is $15,257 and the maximum is $35,640. None of the renters
in the $0 - $10,000 bracket are eligible; a little less than half of the renters in the $10,000 - $20,000
bracket are eligible; all of the renters in the $20,000 - $30,000 bracket are eligible; and a
percentage of the renters in the $30,000 - $40,000 bracket are eligible.
Page 125
To determine the number of eligible households in each bracket, the following algorithm is used.
This table is used as an example:
1. Eliminate any income bracket that has no eligible households because the income bracket falls
entirely below the minimum income or above the maximum income. Eligible households are
0%. (In our example, this is true of $0 - $10,000, $40,000 - $50,000 and up.)
2. If any income bracket falls entirely within the range specified by the minimum and maximum
income, indicate this bracket with 100%. (In our example, the $20-000 - $30-000 bracket at
100%.)
For an income bracket where the minimum income is included in the range, use this
calculation:
(Maximum income bracket – Minimum income)/(Maximum income bracket – Minimum income bracket)
($10,000 - $15,257)/$10,000
3. For an income bracket where the maximum income is included in the range, use this
calculation:
(Maximum income – Minimum income bracket)/(Maximum income bracket – Minimum income bracket)
($35,640 - $30,000)/$10,000
Once the income-eligible households by income bracket are determined, it is summed and divided
by the number of renter households in the PMA to determine how many are eligible for this AMI
level unit. In this example 201 eligible/707 renter households = 28.4%.
Unit Type Two Bedroom
Proposed Lowest rent $338
Utility Allowance $107
Minimum Income $15,257
Maximum Income $35,640
Year 2014 Total Renter Households
Income brackets # % eligible # eligible
$0-10,000 62 0% 0
$10,000-20,000 134 47% 64
$20,000-30,000 96 100% 96
$30,000-40,000 72 56% 40
$40,000-50,000 94 0% 0
$50,000-60,000 57 0% 0
$60,000+ 192 0% 0
Total 707 201