Victoria Park Townhomes
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VICTORIA PARK TOWNHOMES
Final Development Project
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Executive Summary ..................................................................................... XXXXXXXXXX3
Project Overview .......................................................................................... XXXXXXXXXX3
Market Analysis ............................................................................................ XXXXXXXXXX5
Comparable Market Analysis ..................................................................... XXXXXXXXXX10
Development Cost Analysis ....................................................................... XXXXXXXXXX11
Financial Analysis….…………………………………………………………………………..16
Conclusion ................................................................................................. XXXXXXXXXX18
Limitation to Analysis .................................................................................. XXXXXXXXXX18
Appendix .................................................................................................... XXXXXXXXXX19
Sources ...................................................................................................... XXXXXXXXXX23
TABLE OF CONTENTS
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Executive Summary
The subject townhome development site, Victoria Park is located at XXXXXXXXXXNE 17th
Avenue, Fort Lauderdale, FL XXXXXXXXXXThe proposed site consists of 6 adjoining parcels
with a land area of 40,500 square feet & RMM-25 zoning; permitted uses include multi-
family and townhome developments. Up to 23 units can be built with a maximum height
of 55 feet. The development site is just a few miles from Galleria Mall, Las Olas Blvd,
Downtown Fort Lauderdale, Fort Lauderdale Beach, and the Fort Lauderdale Airport.
The site is cu
ently being offered at $3.3M and the plan is to build 18-townhome
development totaling 45,846 sellable square feet or an average of 2,547 sellable square
feet per townhome. The forecasted sales are at $370/square feet per comparable
market analysis with a starting sale price of $943,390. With the research and analysis
offered throughout this report, we concluded that total equity required is $4.089M
esulting in a 46.6% BTIRR. NPV is $1.691M with a 15% required rate of return.
Property Summary
Victoria Park
Townhomes
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Property Address: XXXXXXXXXXNE 17 Ter / XXXXXXXXXXNE 17 Ave Fort Lauderdale, FL 33304
Asking Price: $3,300,000
PA Primary Zone: RMM-25 Residential Multifamily MidRise/ Medium High Density
Primary Land Use: SF, MF, TH, Mixed Use (Conditional), Hotel (Conditional)
Lot Size: 40,500 Sq. Ft
Development Opportunity: Townhome Residential Development
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Market Analysis
Demand Analysis
Fort Lauderdale is South Florida’s second-largest apartment market, with close to
120,000 apartments. The metro areas central location, strong economy, and growing
demographics have improved the multifamily market in Fort Lauderdale.
The subject property is located in the sub-market Victoria Park within the Fort Lauderdale
metro area and within a 10-15 minute drive from Fort Lauderdale beaches, FL
International Airport, and within a few blocks from Galleria Mall and Las Olas Boulevard.
Victoria Park is one of the most desirable neighborhoods in Ft Lauderdale. Townhome
properties are in strong demand as many families seek a safe and home-feel attribute
that provides proximity to the attractions and amenities in the intermediate area.
Major demand drivers are population, income, and employment growth that we will review
within a 1 mile radius from the subject property.
Population
ï‚· According to U.S. Census Bureau, Fort Lauderdale has grown its population by
10.1%. The national growth in the U.S. was 6.3% during the same time (seen in
Figure 1).
Figure 1. US Census Population Data
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ï‚· The population in the submarket of Victoria Park, where the subject property is
located, is estimated to have grown from 7,273 (Census 2010) to 9, XXXXXXXXXXby
ESRI which is a 27% population increase. By 2024, it is estimated that it will grow
another 21%.
ï‚· Households in the same area grew by 24% from 2010 to 2019 and are estimated
to grow to 6,298 households or an increase of 19% by 2024. Based on annual
growth trend, households are estimated to grow 1.31% annually vs 0.75%
nationally during 2019 through 2024 (seen in Figure 2).
Figure 2. STDB Population and Household Demographic Data
Household Income
ï‚· Median household income in Victoria Park during 2019 ($65,796), exceeded Fort
Lauderdale ($55,269), and United States ($60,293) (seen in Figures 3 and 4).
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Figure 3. US Census Bureau Median Household Income Data
ï‚· Median Household Income in Victoria Park (Figure 4) is estimated to increase to
$78,416 or 19%.
ï‚· We also see a forecasted increase in higher household income. In 2019, 62.8% of
household’s income was above $50,000. It is estimated, by 2024, that 70.5% of
household incomes will be greater than $50,000 (seen in Figure 4).
Figure 4. STDB Median Household Income Victoria Park - Data and Forecast
Employment
ï‚· According to the Bureau of Labor Statistics, the metropolitan area of Fort
Lauderdale has an unemployment rate of 16% as of April 30th, 2020 which is driven
y the pandemic, Covid-19 (seen in Figure 5). Prior to pandemic, unemployment
ate was only 3.1% (March 2020).
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Figure 5. Bureau of Labor Statistics 2020 Employment Data
ï‚· The U.S. unemployment rate at the same time increased from 4.4% to 14.7%
(seen in Figure 6).
Figure 6. Bureau of Labor Statistics 2020 Employment Data
Based on both infe
ed and fundamental analysis, strong economic demand exists in
Victoria Park. Population growth and household income has been strong, and forecast
is positive. Due to pandemic, unemployment rates have significantly increased and
might affect the near future but we have not seen the signs in real estate yet.
Marketability
ï‚· Victoria Park is the u
an neighborhood for families who want to be near area
attractions without sacrificing location. As you see in figure 7, the Townhomes
Development is 3 miles from the beach. The beach is a popular location for majo
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events such as the Fort Lauderdale