Holly Crest ADO - Bunker Land Group, LLC

Transcription

APARTMENT DEVELOPMENT OPPORTUNITY
±23.84 ACRES
OFF NC HIGHWAY 73 AT I-77
HUNTERSVILLE, MECKLENBURG COUNTY, NC
CONTACT:
DENNIS N. BUNKER, III
BUNKER LAND GROUP, LLC
1140 Dilworth Crescent Row
CHARLOTTE, NORTH CAROLINA 28203
PHONE: 704-351-9757
1
TABLE OF CONTENTS
PROPERTY OWNERSHIP AND LOCATION ................................................................................................ 2
APARTMENT LAND EVALUATION SYSTEM (ALES) ............................................................................... 3
Site Filters .......................................................................................................................................................... 4
Submarket Filters ............................................................................................................................................. 10
HUNTERSVILLE NEIGHBORHOOD SUBDIVISIONSCHALLENGES AND STRENGTHS................ 25
CHALLENGES AND STRENGTHS................................................................................................................ 26
ADDENDA .......................................................................................................................................................... 28
Proforma .......................................................................................................................................................... 29
± 23.84 ACRES OFF SAM FURR ROAD (NC HWY 73, HUNTERSVILLE, NC
2
PROPERTY OWNERSHIP AND LOCATION
The site under consideration for a class “A” apartment
development is located approximately 15 miles to the north of
Charlotte‟s central business district (CBD) in the Town of
Huntersville (northern Mecklenburg County). The property
consists of 23.84 +/- acres, situated in the southeast quadrant
of US Highway 21(Statesville Road) and NC Highway 73
(Sam Furr Road). Specifically, the site is on Rich Hatchet
Road, a connector road between US Highway 21 (Statesville
Road) and Highway 73. The assemblage includes six parcels
and property owners, with a key 15.2-acre parcel that is one of
the last remaining tracts of its size with proximity to I-77‟s
exit 25 interchange. Bunker Land Group, LLC is the contract
purchaser.
(08-002)
3
APARTMENT LAND EVALUATION SYSTEM (ALES)
Bunker Land Group (BLG) has developed the Apartment Land
Evaluation System (ALES) to assist in the company‟s efforts to
identify and evaluate opportunities for apartment development
in the Carolinas. Characteristics of a property (site &
submarket) considered to be most important for an apartment
community‟s development and performance are numerically
scored from 0-3, with a 3 being the most favorable. BLG has
determined the most relevant site filters for apartment land to
be: when to contract, traffic counts, visibility, zoning/land use,
unit yield (per acre), extraordinary costs, and proforma.
Submarket filters include: the quality of the local apartment
market, employment (jobs), existing and proposed retail, the
existence of colleges, universities and/or military bases,
proximity to mass transportation nodes, demographics, and
finally, the quality of the neighborhood (amenities, schools,
surrounding development, crime). The subject scored 38 points
out of a possible 42 points, indicating we consider it to have
“Superior” potential for development.
(08-002)
Apartment Land Evaluation
System (ALES)
4
A narrative overview describing the evaluation of the site with
respect to the Apartment Land Evaluation System (ALES) site
and submarket characteristics is as follows:
Site Filters
When to Contract
Score
3
2
1
When to
Contract
Now
< 1Year
1-3
Years
The property has been assembled and is currently under
contract to Bunker Land Group (BLG). BLG plans to file for
rezoning in January 2009, obtain zoning approval in the 3rd
Quarter of 2009, obtain all permits, and close on the property
and begin construction in the 4th Quarter of 2010. The first units
are anticipated to be available in the 3rd Quarter of 2011. It is
our opinion that the favorable contract terms are a key strength
of this opportunity. Five of the contracts do not require closing
until all land entitlements have been obtained. The most
significant and largest parcel (15.2 acres) has an outside closing
date of November, 2010. The site scores a 3 for being under
contract.
Traffic Counts
Score
3
2
1
Cars Per
Day
25,000+
15,000 24,000
6,400 15,000
Road Name
I-77
Cars per Day (2006)
87,000
NC 73
24,000
Hwy 21
16,000
Sam Furr Road/NC Highway 73 is a major local roadway that
connects the Huntersville area to Concord, North Carolina
(east), and Lincoln County (west), running parallel to the
southern shores of Lake Norman. Highway 73 is heavily
traveled, with significant congestion around the Highway 21
and I-77 intersections. The NCDOT and the Town of
Huntersville have partnered with STV/Ralph Whitehead
(08-002)
5
Associates on the Highway 73 Widening project to complete
project planning and preliminary design activities. Widening
will take place from west of Highway 21 to just east of
Davidson-Concord Road. The Town of Huntersville and
NCDOT have entered into a municipal agreement to accelerate
the project planning in the Transportation Improvement
Program (TIP). Under the municipal agreement, construction
was to begin in 2007 and NCDOT will reimburse the Town as
the TIP construction funds become available in 2012. The site
scores a 3 for excellent traffic counts, although traffic
congestion is a significant issue with the Town and
neighbors.
Visibility
Score
3
2
1
Visibility
Unobstructed
Partial
Obstruction
Not
Visible
Zoning and Land Use
Score
3
2
1
Zoning
As of
Right
Favorable
Long Shot
(08-002)
The topography of the site affords it good visibility and
exposure from Interstate 77, particularly from the northbound
lanes from Mecklenburg County traveling towards Iredell
County. Although the site is situated behind commercial
development along Highway 21 and Sam Furr Road (Highway
73), the contemplated multi-story (3-4 stories) structures
situated on a higher elevation will have excellent visibility
above the trees and commercial buildings that front Sam Furr
Road and US Highway 21. The site scores a 3 for visibility.
Evaluations of Town land use policy, preliminary site planning,
and input from key stakeholders (town planners, council
members, neighborhood associations) suggest that the
contemplated development has a favorable opportunity to
receive rezoning approval from Town Council. The Town‟s
small area land use plan indicates that a mix of uses for the
Subject site is appropriate (retail, office, single and multifamily residential). However, from a market feasibility
perspective, the site‟s characteristics are inferior to other
potential competitive commercial developments with proximity
due to its lack of frontage along a major corridor. Furthermore,
the four quadrants defined by the intersection of Highway 21
and Sam Furr Road are characterized by the predominance of
commercial development and lack of residential housing. In the
southeast quadrant/block in which the site is located, the ratio
6
of commercial development to residential development is
approximately 96% to 4%. The proposed apartment
development will offer some balance to this ratio, providing the
absent for-rent housing component among the four quadrants of
this major intersection. The logical location of this high density
housing option will provide an opportunity for residents to walk
to surrounding retail uses and the nearby bus stop, minimizing
residents‟ dependence on the automobile for transportation.
With respect to the Town‟s desire for a “mixed use”
development, a key objective of site planning efforts has been
to “knit” the proposed apartment community with the adjacent
commercial development. It is anticipated that the Town will be
satisfied by the design of the community and the progress made
toward meeting their vision for this key vacant tract of land.
The site scores a 2 for favorable land use.
Unit Yield (Per Acre)
(Factors: Zoning and
Physical Characteristics)
Score
3
2
1
Yield
>16 DUA
12-15 DUA
<12 DUA
(08-002)
As previously indicated, the design guidelines of the TNDU(C) zoning classification and the physical characteristics of a
site ultimately determine its unit yield. Based on the previous
conceptual sketch plan by Design Resign Resource Group, the
site can potentially support a development of perhaps 408 units,
indicating a density of ±17 units per acre. Such a density is
consistent with many of the comparable suburban apartment
developments that are currently proposed, or that have been
developed in recent years in the Huntersville, northern
Mecklenburg, and Mooresville areas. As identified on Table 1
and the corresponding map to follow, the overall densities for
the referenced existing and proposed communities range from
16 to 23.6 units per acre. The site scores a 3 for unit yield.
7
Table 1.
Huntersville, Northern Mecklenburg, & Mooresville, NC
Existing and Proposed Apartment Developments with Densities >= 16 units/acre
Map ID
1
2
PROPOSED APARTMENT DEVELOPMENTS
Northlake Center Pkwy & Alexanderana Road
Morrison Plantation Pkwy, Mooresville
EXISTING APARTMENT DEVELOPMENTS
ACRES
12.7
11.4
UNITS
204
269
DENSITY
16.1
23.6
SALE DATE
5/29/2008
7/20/2007
ACRES
UNITS
DENSITY
YEAR BUILT
3
Colonial Grand - Huntersville
14.1
250
17.7
2008
4
Harborside Commons
13.9
264
19.0
2005
5
Bexley at Davidson
10
185
18.0
2003
6
Camden - Sedgebrook
23.3
368
16.0
1998
Sources: Real Data 2008 and DataComp/Camda Property Sales Database (2007-2008)
The Bunker Land Group, LLC makes no representations of any kind, with respect to the information or data, furnished herein.
EXISTING AND PROPOSED APARTMENT DEVELOPMENTS
WITH DENSITIES >= 16 UNITS/ACRE
(08-002)
8
SUBMARKET AERIAL
HOLLY CREST SITE PLAN
(08-002)
9
Extraordinary Costs
Score
3
2
1
Extra Costs
>$2,000/
Unit
$2,000$5,000/Unit
>$5,00
0/Unit
Extraordinary costs are anticipated to include offsite road
improvements and possible retaining walls due to challenging
topography for a portion of the site. The site scores a 2 for
extraordinary costs.
Proforma
Score
3
2
1
Project
Return
>25%
15-25%
<15%
A return to the Investor is projected based on a projected stabilized
income (using comparable rental and vacancy rates for the
submarket), a typical expense ratio reflective of a newer property, as
well as a reasonable estimate for land and building costs. A potential
IRR for the proposed project for this site is projected in the 30%+
range. (See Proforma in the Report Addenda). The site scores a 3
for proforma.
(08-002)
10
Submarket Filters
Apartment Market
Score
3
2
1
Quality
Superior
Good
Fair
Real Data North Submarket
Mecklenburg County
According to Real Data Apartment Index for Mecklenburg
County, the subject property is located in the North
Submarket, which is delineated by a portion of the northern
Charlotte city limits and the Huntersville, Cornelius, and
Davidson municipalities. The amenities associated with Lake
Norman and highly regarded schools have attracted strong
residential growth to this submarket over the last decade. At
present, infrastructure (water & sewer) constraints and land use
policy contribute to the minimal availability of land suitable for
apartment developments in the desirable municipalities
mentioned above. As supported in the paragraphs to follow, the
site scores a 3 for superior apartment market.
The North apartment submarket is summarized on the table to
follow:
Competitive Apartment Communities: Eleven of twenty-two
existing apartment communities (communities highlighted in
green on Table 2) in the North submarket were identified as
potentially competing developments, either due to their close
proximity to the subject or their more recent construction (Table
2).
Among these communities, vacancies range from 2.1% to 9.9%.
The lower vacancies of Bexley at Rosedale (2.1%), Birkdale
(2.2%), and Colonial Grand (3.2%) are likely due to their
locations within prominent mixed-use communities or their
(08-002)
11
walking distance to retail. The higher vacancies of the
Landings at Northcross (8.3%) and the Marquis at Northcross
(9.9%) are likely attributable to their age. Similarly, the lowest
rent level of the Landings at Northcross ($.73/SF) is believed to
be related to its age (over 12 years old), and perhaps noise. The
newest apartment community, Colonial Grand (2008) has the
highest indicated average rents per square foot of $1.03, based
on a Real Data survey. Based on a site to this property which
revealed slightly lower asking rents for some units than those
reported below, BLG calculates the average rents at $0.941/SF
(second highest reported below).
Table 2.
North Submarket Apartment Summary (Existing Communities) September 2008
Map
ID
Community
Yr
Built
Total
Units
Net
Absorption
Rent
Vacancy
Avg.
Sq. Ft.
Age
667
COLONIAL GRAND
2008
250
106
1.034
3.2%
992
Lease-Up
647
CARRINGTON PARK
2007
236
102
0.764
7.2%
1068
1-5 Years
634
MONTGOMERY GARDENS
2006
76
-2
0.583
3.9%
1014
1-5 Years
622
BEXLEY AT HARBORSIDE
2005
264
17
0.861
5.7%
910
1-5 Years
558
RESIDENCES AT BRAEMAR
2004
160
-13
0.769
11.9%
1058
1-5 Years
580
AUSTON WOODS
2003
492
158
0.918
4.1%
942
Lease-Up
575
BEXLEY AT DAVIDSON
2003
185
-3
0.850
3.8%
934
1-5 Years
458
BIRKDALE VILLAGE
2002
320
0
1.029
6.9%
1137
6-15 Years
507
2001
314
4
0.875
8.0%
996
6-15 Years
464
REDCLIFFE AT KENTON PLACE
BEXLEY COMMONS @
ROSEDALE
2000
328
3
0.809
2.1%
1101
6-15 Years
359
CAMDEN SEDGEBROOK
1998
368
15
0.955
3.8%
972
6-15 Years
408
HUNTERSVILLE COMMONS
1998
200
0
0.800
5.0%
862
6-15 Years
434
PARKVIEW
1998
108
-3
0.701
8.3%
1035
6-15 Years
352
BEXLEY AT LAKE NORMAN
1997
280
15
0.810
3.6%
1121
6-15 Years
345
BIRKDALE
1997
180
14
0.885
2.2%
1106
6-15 Years
338
MARQUIS @ NORTHCROSS
1997
312
38
0.955
9.9%
950
6-15 Years
330
1995
312
-11
0.739
8.3%
918
6-15 Years
315
LANDINGS AT NORTHCROSS
MARINA SHORES
WATERFRONT
1995
290
-6
0.810
7.9%
986
6-15 Years
020
ONE NORMAN SQUARE
1992
192
-5
0.812
9.9%
1019
16-30 Years
072
HUNTERSVILLE
1989
174
10
1.048
8.0%
654
16-30 Years
138
OAKHILL
1974
73
8
0.700
2.7%
816
30+ Years
170
TRINITY PARK
1969
104
-4
0.779
5.8%
703
30+ Years
* Communities highlighted in green are most likely to be competitive apartment communities
NORTH SUBMARKET
5,218
453
0.851
6.0%
983
MECKLENBURG COUNTY
81,501
960
0.809
8.90%
948
Source: Real Data Apartment Index, September 2008
(08-002)
12
North Submarket Apartment
Most Comparable
Community
Due to its recent construction (2008) and similar strategic
location, Colonial Grand is the most logical comparable to
consider in projecting future rents, particularly considering the
timeline of the proposed development (construction completion
in 2010 or 2011).
Colonial Grand
(08-002)
13
Table 3.
Colonial Grand Apartments
Unit Mix
Units
Rent
Sq. Ft.
Rent/SF
1BR/1BA
24
$740
652
$1.135
1BR/1BA*
40
$755
762
$0.990
1BR/1BA
12
$920
840
$0.933
2 BR/2BA *
64
$900
965
$0.820
2 BR/2BA *
24
$855
1,048
$0.820
2 BR/2BA *
42
$905
1,104
$0.992
3 BR /2 BA
4
$1,365
1,327
$1.029
3 BR /2 BA
32
$1,320
1,327
$0.995
3 BR /2 BA
8
$1,335
1,331
$1.003
$934
992
$0.941
TOTALS/AVG
250
Source: Real Data Apartment Index, September 2008 &
* Reported at Actual Property Visit on 11/4/08
Proposed Holly Crest Apartments
Unit Mix
Units
Rent
Sq. Ft.
Rent/SF
1 BR Carriage Units W/Garages
28
$790
568
$1.39
1BR/1BA (3 Story)
30
$790
720
$1.10
1BR/1BA (4 Story 1st Flr)
4
$775
733
$1.06
1BR/1BA (4 Story Flrs 2-4)
54
$775
733
$1.06
2 BR/2BA (3 Story)
30
$900
996
$0.90
2 BR/2BA (4Story 1st Flr)
18
$905
1,110
$0.82
2 BR/2BA (4Story Flrs 2-4)
54
$905
1,110
$0.82
2 BR/2BA/4-Story End Cond. Flrs 2-4
53
$925
1,260
$0.73
2 BR/2BA (3 Story)
30
$1,070
1080
$0.99
3 BR S/R (3 Story)
30
$1,280
1,244
$1.03
3 BR /2 BA (4 Story Flrs 2-4)
53
$1,280
1,260
$1.02
2 BR/2 BA Home Office
24
$1,280
1,260
$1.02
408
$983
1,038
$0.947
TOTALS/AVG
Unit Mix Summary
Holly Crest
Colonial Grand
BR
Units
% of Total
BR
Units
1BR
116
28.4%
1BR
76
% of Total
30%
2BR
185
45.3
2BR
130
52%
3BR
2 BR
Home
Office
83
20.3%
3BR
44
18%
24
5.8%
NA
The above table (Table 3) provides a detailed overview of the
unit mix and rent calculations for Colonial Grand and the
proposed Holly Crest community. With some slight variations
in the ratios of 1, 2, and 3 bedroom units, the rents of Colonial
Grand were relied upon in projecting rents for Holly Crest.
Although initial lease-up of units may not start until 2010 or
2011, average rents for Holly Crest ($0.947/SF) would be
(08-002)
14
similar to that of Colonial Grand‟s existing average rents
($0.941/SF). The home office units are referenced as 2 bedroom
units in the above table, however, the potential exists for renting
them as 3 bedroom units. The proforma assumes a 3 bedroom
rental rate for these units.
Future Supply: The subject‟s location is believed to be superior
to other proposed apartment developments in the North submarket
(Table 5 and map). In comparison to other projects, a relatively
low per unit land basis is also in the project‟s favor, with a contract
timeframe that does not require a closing until November of 2010.
Of the developments that are either proposed or under
construction, per unit land costs ranged from $11,222 to $20,000
(Table 4). With 408 units currently planned for the subject
development, land costs are estimated to be just under $12,900 per
unit. Although per unit land costs for proposed developments is
subject to change according to the number of units that ultimately
are constructed, land values can reasonably be concluded for the
purposes of this report.
Our evaluation of future supply also includes sites that are presently
under contract to be apartment developments. Rhein Medall and
American Asset Corporation have three apartment positions under
contract (1200 units +/-) within the proposed Bryton transit-oriented
development (mixed-use) along Highway at Highway 115 and
Hambright Road. Until the retail component of this development is
completed (2012) and North line of the Lynx rail system is
constructed (2013-2015), the exposure and locations of these sites
within Bryton are considered to be inferior to the subject. Regarding
price, market rumors indicate that the per unit contract price ranges
between $14,000 and $20,000. In addition to Bryton, ±10.5 acres are
under contract at Kenton Place for 292 units at $20,000 per unit,
however, the site is already graded and prepared for vertical
construction, with off-site storm water detention also included in the
price. The property is approximately two miles to the west of the
subject on Highway 73 in Cornelius. Should these proposed
apartments continue to move forward, their newer construction and
location within a mixed use development would likely make them a
competitor.
(08-002)
15
Table 4.
North Mecklenburg Submarket Apartment Land Sales (2006-2008)
Map ID
LOCATION
ACRES
UNITS
PRICE/ACRE
PRICE/UNIT
SALE
DATE
STATUS*
1
Reese Blvd & Mt Holly-Huntersville Rd
18.435
242
$186,062
$14,173
6/24/2008
PROP
2
Northlake Center Pkwy & Alexanderana Rd
12.7
204
$224,882
$14,000
5/29/2008
PROP
3
Perimeter Parkway
7.274
201
$327,454
$11,850
5/22/2008
UC
4
Hwy 115
20.76
300
$173,410
$12,042
2/6/2008
PROP
5
Mt. Holly-Huntersville Rd
40.231
473
$235,142
$20,000
11/16/2007
PROP
6
Reames Road
55.06
588
?
?
9/2/2006
UC
7
Rose Commons Drive
13.87
250
$236,909
$13,144
7/3/2006
UC
8
Westmoreland Road
38.6
245
$71,243
11,224
6/23/2006
PROP
Rich Hatchet Road (Bunker Land Group)
23.84
416
$219,560
$12,632
11/1/2010
PROP
Subject
*PROP = Proposed, UC = Under Contract
Source: DataComp/Camda Property Sales Database (2006-2008) & Mecklenburg County Tax Data
NORTH MECKLENBURG SUBMARKET APARTMENT LAND SALES (2006-2008)
Table 5.
1) The Carlisle Group is planning 242 units at Carlisle at the Park on Reese Boulevard, which has inferior visibility and
access to/from the interstate.
2) MLP Investments is planning 204 units at Northlake on Alexanderana Road.
3) Wood Partners recently broke ground on 201 units located on Perimeter Parkway.
4) NRP Group has plans for 297 units at Caldwell Station on Old Statesville Road, an inferior location (north of the subject).
5) J. Tucker Development plans to start work in October on 330 units at Montage Northlake on Mt. Holly-Huntersville Road.
6) Charter Properties is under construction for the first phase of its development on Reames Road, south of Northlake Mall.
7) Colonial is completing the last of its 250 units at Colonial Grand at Huntersville, located just off of Gilead Road.
8) The Goldberg Companies has plans for a total of 245 units in Legacy Cornelius on
Westmoreland
Road at I-77.
(08-002)
BUNKER
LAND GROUP,
LLC
Employment
Score
3
2
1
Employment
Superior
Good
Fair
Distance
Total Jobs
5 Miles
46,641
10 Miles
120,777
15 Miles
302,068
Source: CCIM-Site to Do Business, 2007 Labor
Market Summary
(08-002)
16
There are approximately 302,068 jobs within a 15 mile-radius
of the property. The towns in north Mecklenburg County have
long been considered bedroom communities for Charlotte.
Major employment nodes within driving distance of the site
include Huntersville Business Park, Charlotte‟s Central
Business District, the headquarters of Lowe‟s Home
Improvement, and University Research Park. As can be seen on
the Table 6 and map to follow, there are a number of major
employers within 5 to 10 miles north of the site in Cornelius
and Mooresville, and also within 5 to 15 miles to the south in
the Charlotte CBD, and to the southeast, in the University area.
Huntersville is home to national and internationally known
companies. Some of the Town‟s largest employers are: GE
Polymerland, Rubbermaid, Irwin Industrial Tools, Max
Daetwyler Corporation, American Tire Distributors, Inc.,
Presbyterian Hospital, McGuire Nuclear Station, Siegling
America, Americredit, Metrolina Greenhouses and Joe Gibbs
Racing to name a few. Your attention is invited to the map on
the following page which illustrates major employers within 5,
10, and 15 miles from the subject. The site scores a 3 for
superior employment.
17
Table 6.
TOP 20 EMPLOYERS WITHIN 5, 10, & 15 MILES OF SUBJECT
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
(08-002)
COMPANY
Wachovia Corporation
Bank of America
City of Charlotte
Duke Energy
AT&T North Carolina
Mecklenburg County
Central Piedmont Community College
Charlotte Observer
United Parcel Service
Hewitt Associates
Ingersoll-Rand Co.
Kelly Services
IBM Corp.
Lowes Home Imp
UNCC
TIAA CREF
University Medical Center
Lake Norman Medical Center
Presbyterian Hospital
Davidson College
EMPLOYEES
> 10,000
> 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
1,000 - 10,000
< 1,000
< 1,000
< 1,000
18
Source: Charlotte Chamber of Commerce; Charlotte Regional Partnership; Cabarrus County Chamber of Commerce
Existing & Proposed Retail
(within 1 mile of the site)
Score
3
Retail
Wal-Mart/
Target
2
Grocery/
Jr.Anchor
1
Small
Shop
Retail Developments: The site is surrounded by a healthy mix
of single-family, major retail, commercial and institutional uses.
Within walking distance and immediately adjacent to the site,
there is 167,492 square feet of commercial space including a
retail center to the west which fronts on Highway 21
(Statesville Road) along with several medical offices adjacent
to the site along its northern boundary on Holly Point Drive.
Also on Holly Point Drive there is a county library and a
Huntington Learning Center. Across Highway 21 from this
center and also a short walk from the site, there are 276,213
square feet of commercial space including a Presbyterian
Urgent Care hospital, a hotel and several highway commercial
buildings, and national restaurant chains.
The Northcross community shopping center is across Highway
73 at its intersection with Highway 21, directly across Sam Furr
Road to the north of the site and within a 15-minute walk from
the site. It has 565,414 square feet of retail space that is
anchored by Lowes Home Improvement, Harris Teeter and
Target. A second phase of the center opened within the past
year and fronts on Highway 73 with an entrance directly across
from Rich Hatchet Road. This portion of the center is anchored
by Staples, Marshalls, Pet Co., Starbucks, Home Goods and
several small stores and outparcels.
Birkdale
Village,
approximately 1 mile
west of the site on Sam
Furr Road (and across
the interstate from the
site)
includes
apartments and offices
above boutiques, restaurants and national retailers such as
Williams Sonoma, Gap and Ann Taylor Loft. Live bands play
on warm-weather weekend evenings, and parents from around
the lake bring children to play in the village square fountain.
Rosedale Shopping Center at Exit 23 and approximately 1.5
(08-002)
19
miles to the south of the site offers a variety of necessities such
as a CVS, Harris Teeter, Blockbuster Video, Domino’s
Pizza, ABC Store, different types of restaurants and hair cut
places. Similar to Birkdale Village, residents in the nearby
apartments, town homes and neighborhoods find Rosedale‟s
offerings are but a quick walk away. A map of the
neighborhood follows. The site scores a 3 for superior
existing and proposed retail.
NEIGHBORHOOD MAP
(08-002)
Colleges, Universities and
Military (Students or
Enlisted Military)
Score
3
2
1
Colleges &
Universities
> 10K
Students
5-10K
Students
<5K
Students
Existing or Future Mass
Transit System Nodes
Score
3
2
1
Mass
Transit
If <1 Mi.
1-2 Miles
Away
>3 Miles
(08-002)
20
Central Piedmont Community College's North Campus is
located at 11930 Verhoeff Drive in Huntersville, approximately
2.5 miles south of the subject off NC Highway 115. It is a
satellite campus of Central Piedmont Community College
which is located near the Charlotte Central Business District
with 56,800 students and one of the largest community colleges
in the country. In 2006, the staff and programs of the CPCC
North Campus served 30,000 students, including more than
20,000 police officers, firefighters and medics. Almost 3,500
students came to the CPCC North Campus to take college
transfer classes. In addition, Mecklenburg County offers higher
education opportunities with Johnson C. Smith University,
Queens University, UNC Charlotte, and Davidson College.
With emphasis on The North Campus of CPCC, the site scores
a 1 with regard to the influence of colleges and universities.
The are two regional Charlotte Area Transit System (CATS)
park and ride facilities and one local CATS line that has a bus
stop approximately 100 yards from the site on Holly Crest
Drive. The two regional facilities provide bus ridership to over
10,000 transit riders per month from North Mecklenburg
County to the Charlotte Central Business District. The closest
regional transit facility is located at Northcross Drive,
approximately 1 mile from the subject site across the
interchange of Interstate 77 and Highway 73 (Exit 25). This 4.7acre facility has 320 parking spaces with covered and secure
bicycle parking, passenger shelters, and lighting. The second
regional transit facility is the Huntersville Gateway Park and
Ride which is located approximately 1.5 miles south of the site
at Gilead and Statesville Roads. Your attention is invited to the
next page where there is a map illustrating the local bus routes,
bus stops, and park and ride locations relative to the site.
21
BUS ROUTES, BUS STOPS AND PARK & RIDE LOCATIONS
(08-002)
22
The proposed North Corridor Commuter Rail Project will
operate along 30 miles of the existing Norfolk Southern rail line
(the "O" line) from Center City Charlotte to Mooresville in
southern Iredell County, north of Huntersville. The alignment
parallels
Old
Statesville Road (NC
Highway 115), which
is approximately one
mile east of the
subject. A rail station
is proposed for that
area about ½ mile
north of Sam Furr
Road, similar to those
found along the South
Boulevard corridor. Engineering for the commuter rail line was
to begin in March 2008 after the Charlotte City Council
unanimously approved a contract February 28, 2008. According
to a September 2008 meeting, there will be feeder bus lines that
will assist rail riders with getting from the trains to their final
destinations, which should also benefit the residents at the
proposed Holly Crest development on Rich Hatchet Road. The
site scores a 3 for mass transit.
Demographics
Score
3
2
1
Demographics
Superior
Good
Fair
(08-002)
In 1990, 3,014 people called Huntersville home. Proximity
between Charlotte and Lake Norman, lower home prices, less
traffic and quiet communities catapulted Huntersville's
population in 2000 to 24,960, an amazing 728 percent. Today,
approximately 40,000 people live in Huntersville. According to
a Highway Transportation Study/Land Use Corridor Plan, the
Highway 73 area east of I-77 will most likely report a
population increase from the 2002 Census of over 60% through
2010, with an increase of 53% through 2020. The same study
reports that over 35% of the 2002 households are in the upper
third of regional income distribution. The site scores a 3 for
superior demographics.
23
MEDIAN HOUSEHOLD INCOME (2008)
Distance
Median HH
Income
1-mile
$103,033
3-mile
$92,238
5-mile
$94,412
POPULATION (2000-2008)
Distance
1-mile
3-mile
5-mile
Population (2000)
Population (2008)
% Change
3,978
4,157
4.50%
24,871
26,757
7.50%
56,616
64,557
14%
Housing Statistics
2000 US Census
Housing Units, 2000
9,859
Homeownership rate, 2000
75.40%
Housing units in multi-unit structures, percent, 2000
19.94%
Median value of owner-occupied housing units, 2000
$182,800
Households, 2000
9,171
Persons per household, 2000
2.67
Median household income, 1999
$71,932
Per capita money income, 1999
$30,256
Persons below poverty, percent, 1999
3.10%
Source: US Census
Neighborhood Quality
Score
3
2
1
Neighborhood
Superior
Good
Fair
Given that the Town of Huntersville was identified as one of
America‟s Top-Rated Smaller Cities for 2004-2005 by Grey
House Publishing, Money
magazine recognized the town
as the 76th Best Place to Live
in America in 2005, and as
one of the top 20 places in
North Carolina to retire, we
believe that the quality of the neighborhood is excellent. The
preceding table indicates some housing statistics for the area.
Recreation:
Huntersville
Family Fitness and Aquatics
(HFFA) is a world class
facility with an Olympic sized
50-meter competition pool and
(08-002)
24
diving well. It has served as host to a number of World Class
events, most recently hosting current and future Olympians at
the 2005 Speedo US National and Junior National Diving
Championships. In addition, HFFA offers a well rounded
fitness experience with a 25-yard warm water pool, full court
gymnasium, fitness center, group exercise studio, and outdoor
splash park that children and their parents regularly enjoy
during warmer months.
The Town of Huntersville Parks and Recreation Department has
thirteen park facilities. These parks are home to many
amateur sporting events and youth tournaments every year and
offer neighborhoods playground and team sport activities.
Huntersville also provides access to Lake Norman and its 520
miles
of
shoreline.
Huntersville residents can find
access to the lake by visiting
Blythe Landing Park, just off
NC Highway 73 for launching
boats and other recreational
activities. Several fine golf courses also call Huntersville
home. These include the Arnold Palmer designed Birkdale
Golf Club, semi-private Skybrook Golf Club and the private
Northstone Country Club. Huntersville sits in the middle of the
Lake Norman and Charlotte regions where numerous
outstanding golf locations are found.
Mecklenburg County School Attendance
Areas indicate that children living in the
contemplated
development
would
attend the schools listed below:
Huntersville
Elementary
Elementary
Middle
Bailey Middle
High
(08-002)
North Mecklenburg
(shown on above map)
Single Family Developments: There is an established singlefamily neighborhood, Greenfarm, with homes in the $350,000+
range immediately to the east of Rich Hatchet Road. Other
subdivisions within the immediate area include Northcross
Downs (both south of Sam Furr Road) and Hampton Ridge I
and II and Cambridge Grove which are just north of Northcross.
There are some smaller tracts of residentially zoned land with
scattered single-family homes to the south. Our survey indicates
that there is about 10,800 square feet of residential space south
of the site in older single family houses on Rich Hatchet Road.
New “For Sale” signs on under-improved sites indicate that the
area to the south is in transition. New development is
25
anticipated to continue southward along Highway 21. A map to
follow map illustrates the numerous residential subdivisions
surrounding the subject site and also within the Huntersville
area. The site scores a 3 for superior neighborhood quality.
HUNTERSVILLE NEIGHBORHOOD SUBDIVISIONS
(08-002)
26
CHALLENGES AND STRENGTHS
Challenges
• The Town’s design and development standards will require a unique
product design/site layout, innovative storm water best management
practices, extensive transportation studies, and the potential for offsite road
improvements, all exemplary of items that could negatively impact the
development costs and financial feasibility of the development.
• The negative influence of neighborhood opposition on the rezoning
approval process is a potential challenge to the project. Although homes in
the adjacent Greenfarm neighborhood will not face the proposed
development (homes back up to Rich Hatchet Road), residents‟ concerns
about the project‟s density, building heights (3-4 stories), and their fears of
increased traffic, noise and congestion may prevent some council members
from supporting the proposal, or possibly requesting concessions that
might include fewer stories or units which would impact the financial
feasibility of the development.
• Potential off-site road improvements to Highway 73 and associated
costs may impact the feasibility of the project and are unknown at this
time. The Town has agreed to fund portions of the design phase of the road
improvements in an effort to speed up its timeline, and may seek
reimbursement from proposed developments that have a direct impact on
traffic in this corridor.
Strengths
• Favorable contract terms include adequate time to obtain all
entitlements prior to Closing, and a purchase price at under $13,000 per
unit (based on 408 units) which is at the low end of the market for
comparable apartment land sales in this submarket (occurring between
2006 and 2008). The unit price is favorable considering that a closing on
the property is not required until 2011.
• With respect to potential existing and future competing developments,
many of the apartment communities in the immediate area are more than
10 years old, with strong occupancy and rent levels. Barriers to entry for
new apartment developments include a lack of available land suitable for
apartments and an onerous entitlement process.
• Visibility and traffic counts are strengths, as the site„s location at the
crossroads of two major corridors afford it excellent exposure. The 2006
traffic counts of Highway 21 (16,000 VPD) and Highway 73(24,000 VPD)
resulted in a score of 3 (“Excellent”), and the site also has some visibility
(08-002)
27
from Interstate 77, which has 87,000 vehicles per day.
• The unit yield is favorable with 408 units and an implied density of ±17
units per acre. Fortunately, the Town of Huntersville‟s TND-U(C)
zoning classification does not specify a maximum number of dwelling
units per acre that would limit overall density. Rather, the design
guidelines of the zoning classification and a site‟s physical characteristics
ultimately determine its unit yield.
• With the lowest vacancy rate (6%) in the Mecklenburg County
apartment submarkets (Real Data Apartment Index - September 2008),
rental demand for apartments in the site‟s submarket is strong. The
Colonial Grand community with its average rental rate of $1.05/SF is the
newest apartment community and will most likely compete with the
proposed development. The indicated rate is favorable and relied on in our
financial feasibility analysis.
• The site‟s proximity to employment is a critical advantage. There are an
estimated 302,068 jobs within a 15-mile radius of the site. In addition to
Lake Norman being a significant economic generator, Huntersville
Business Park, Charlotte‟s Central Business District (CBD), the Lowe‟s
Home Improvement campus, and the University City Research Park are
four major employment nodes within 15 miles of the subject.
• The Northcross Shopping Center (565,414 square feet) is within a 5 to
15 minute walking distance, as is Lowe‟s Home Improvement, Target,
Harris Teeter, Staples, Marshalls, and Starbucks. Birkdale Village
(approximately 1 mile to the west of the site) offers additional retailers,
including William Sonoma, Gap, and Ann Taylor Loft, evidence of the
strong demographics in this submarket. Within a 1 mile radius of the site,
median household income for 2008 was estimated to be $103, 033.
• The site has convenient access to mass transit. There are 10,000 transit
riders per month that travel from north Mecklenburg County to the
Charlotte Central Business District. With two park and ride bus facilities
within 1 to 1.5 miles of the site and an easily accessible bus stop on Holly
Pointe Drive, we believe that the site will be an attractive place to live.
• Considering its access to excellent shopping, good schools, the amenities
associated with Lake Norman and Huntersville‟s park facilities, and
proximity to mass transit, major corridors, and employment, we believe
that the quality of the neighborhood is excellent.
(08-002)
28
ADDENDA
(08-002)
29
Proforma
(08-002)
(08-002)
30
Rich Hatchett Road, Huntersville, NC
Commercial Development within a 10 Minute Walk or ½ Mile of the Site*
(*1 mile walk = 20 minutes)
Lowes Home Imp. ↑
Mattress Firm
LongHorn’s
Wachovia
First Citizens
Merle Norman Spa,
Knit One Stitch
Too, Verizon, Gift
Shop, Mexican
Rest., KidTime,
Ultratan, Mickey &
Mooch
Marshall’s, Home Goods,
Staples, Petco, Panera
Bread, Starbucks, Pizza,
Thai Rest., Tanning,
Beauty Supply, Chinese
Rest., Massage Parlor,
Nails, Smoothie King,
Clothing Store, Dental
Works, Pet Grooming
Target, Kohl’s,
Dress Barn, Omega
Sports, Pet Mania,
Halmark, Harris
Teeter
Chili’s
1
Suntrust Bank
Credit Union
Blockbuster, Sam’s Mart,
Shell Station,
FuddRucker’s (former)
Country Suite Hotel
Bank of America
Rack Room, Great Clips,
Alterations, UPS,
Chinese, Spa, Nails,
Bagels, Cleaners
3
Wendy’s
O’Charley’s
Medical Offices
Medical Offices
Presbyterian North Point
CMC Northcross
2
Huntington Learning Center
Library
Bowling Alley
Multi-Tenant Office (Law, Dentist, Salon/Spa)
Small Shops – Mathnasium Learning Ctr.,
Karate, Dance, Salon/Spa, Nails, EarRX, Pizza
Rest, Mexican Rest, Convenience/Bakery
Shop
4
¼ mile radius from
center of the development
Papa John’s
Showmar’s , Heart Lab, Factory Mattress,
Curves, Spine Specialist
Commercial and
Residential Space
(sf) Surrounding
proposed Rich
Hatchett Road
Apartment
Development
1) Commercial North of Sam Furr Rd
565,414 sf
2) Commercial West of Statesvile Rd
276,213 sf
3) Commercial in Block Surrounding Assemblage
167,492 sf
4) Residential in Block Surrounding Assemblage
10, 794 sf
Total sf
1,019,913sf
1/2 mile radius from
center of the development
Overall Ratio of Commercial/Residential = 99% to 1%
Ratio of Commercial/Residential in Block Surrounding Assemblage = 94% to 6%
POINT : PROPOSED DEVELOPMENT PROVIDES MISSING RESIDENTIAL COMPONENT AND PROVIDES PEDESTRIAN ACCESS TO COMMERCIAL
Prepared By Bunker Land Group, LLC
Dennis N. Bunker, III (704-358-0681)
August 8, 2008
Mayes Rd
21
Py
Rd
ley
au
1 15
y
W
HAMPTONS
Mc
gh
"
!
St
d
nR
Cambridge Grove and Hampton Ridge (I&II)
K-5
6-8
9-12
Total Students
Total Housing Units
185
65
58
308
552
n Rd
tow
ump
Greenfarms
Hamptons and Northcross Downs
13
12
24
49
135
101
49
66
216
360
Rd
tow
mp
Grade Level
d Rd
or
McC
N Old Statesville
Ba
y
art
NORTHCROSS DOWNS
Stu
Hu
sL
n
dow
rth
No
n
Greenfarm Rd
Rich
Hatch
ett Rd
RICH HATCHET COMMUNITY
Sam Furr Rd
ille Rd
r
ss D
hcro
Nort
GREENFARMS
Rd
HAMPTON RIDGE II
ove Dr
om
eC
al
rkd
ns
mo
Northcross Center Ct
Old Statesv
West
77
HAMPTON RIDGE
idge Gr
.,
CAMBRIDGE GROVE
Cambr
Sam Furr
Bi
/(
Knoxwood Dr
Cataw
ba Av
Rich Hatchet Road, Huntersville, NC
CMS School Populations in Surrounding Neighborhoods
Rich Hatchet
7
3
2
12
39 = 585 Total Students
0
0.25 Miles
N
= 1086 Total Housing Units
= 0.54 Avg. # of Students per Housing Unit

Holly Crest ADO - Bunker Land Group, LLC

Transcription

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