Apartment development opportunity
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D E V E L O P M E N T S I T E 603 Millers Hill Road Kennett Square, PA 19348
175 UNIT LUXURY APARTMENT DEVELOPMENT OPPORTUNITY
433 W. Market Street, Suite 9 West Chester, PA 19382 (484) 887-8202 www.PillarRealEstateAdvisors.com Affluent Chester County, PA +14 Acre Campus Setting Fully entitled site, construction permit ready Serviced by public water, sewer, and electric Only Class A luxury apartment site within 9 miles Immediate employer demand for luxury apartment building
*Rendering Location: 603 Millers Hill Road, Kennett Square, Chester County, PA Approvals:
Fully Engineered for 175 unit apartment development
Public Water & Sewer on site
Water fees paid
Exempt from fee in lieu of open space
Exempt from traffic 209 fees
Building Plans Available
Full Construction Estimate Available
DEVELOPMENT OVERVIEW *Outline denotes general location of property. Not an accurate representation of actual property lines. PROPERTY OVERVIEW Access: Millers Hill is accessed directly from
the primary thoroughfare of
US Route 1 Approvals: Property is fully approved for 175
Unit Apartment Development. Four
story construction over 150-car
parking garage with an additional 147
surface spots, including all approvals
necessary to obtain building permits
from Kennett Square Township Utilities: Site is serviced by public water, sewer,
and electric
Kennett Consolidated School District
Ranked 17th on the national list of
most challenging high schools Features: Within walking distance to YMCA,
Kennett Square Borough. Walking
trails adjacent to Anson B. Nixon Park.
Conveniently located on business
Route 1 (Millers Hill / State Street) Trade Area: Kennett Township is an
approximately 15.6 square miles,
Southern Chester County. The
township is situated approximately
38 miles West of the City of
Philadelphia, approximately
12 miles Southwest of West Chester
Borough (county seat for Chester
County, PA), approximately 14
miles from Wilmington, DE, and
approximately 28 miles from
Philadelphia International Airport Address Parcel No. Acres Sq. Ft.
603 Millers Hill Rd 62-004-0015.0100 11.8 514,008
603 Millers Hill Rd 62-004-0001.0000 1.50 65,340
400 N. Walnut Street 62-003-0051.0000 1.00
43,560 383 Walnut Road 03-001-0001.0000 0.11
4,619
14.4 637,527+/- MARKET AREA ANALYSIS There is a lack of Class A inventory in Kennett Square. The Greater Kennett Square Region has the smallest number of Class A rental properties among all of the surrounding communities. To date, Magnolia Place is the only Class A rental community in Kennett Square. However, this community only has 33 units and it has no amenities. If some- one lives in a Class B property and they wish to move up, they must either move outside the area or look into buying a home. If someone wishes to downsize, as in the case with many empty nesters, they too must consider moving outside of Kennett Square or consider purchasing a smaller home. The Kennett Primary Market Area is projected to have an overall housing shortage. Household growth for the Primary Market Area (PMA), which includes Kennett Square, Kennett Township, East Marlborough and New Garden Townships, is a projected 687 units over the next 5 years. In this same time period, new home construction in the PMA, including existing and pro- posed single family and townhouse inventories, account for 225 units or 33% of the estimated household growth. This is a direct result of the low inventory of developable land. This creates a significant gap to meet the housing needs of the population. More housing is needed to fill this gap. Source: Chester County Planning Commission In addition, a survey of Kennett Square based employees, 33% stated that they would consider moving to luxury style, amenity-rich apartments if they were available. Source: SRH Marketing Group MARKET AREA MULTIFAMILY ABSORPTION RATE BY QUARTER Property Leasing Began # of Units 4Q15 1Q16 2Q16 3Q16 4Q16 Distance From Subject Property Magnolia* April 2015 33 90.50%
100% 95.20% 92.60% 95.20% 1.2 Miles
May 2015 230 43.90% 56.40% 75.90% 91.30% 95.60% 11.7 Miles Chestnut Square Summer 2016 205 -
- -
50.00% 73.90% 11.9 Miles Meridian At Eagleview (55+ Community) September 2016 162 -
- 16.70% 24.50% 18.9 Miles
Summer 2015 250 48.30% 60.90% 72.50% 84.10% 94.50% 21.8 Miles The Royal Worthington October 2014 253 81.30% 95.70% 95.10% 96.40% 92.80% 22.6 Miles Phoenix Village August 2015 275 11.30% 14.70% 25.20% 57.50% 70.30% 27.6 Miles Madison at Providence 1 March 2015 240 52.80% 62.90% 74.20% 80.50% 82.70% 39.6 Miles Madison at Providence 2 Fall 2016 64 -
- - 55.50% 39.6 Miles *Magnolia is the only other Class A apartment offering in the market and offers little to no amenities. COMPARABLE RENTAL RATES PROPERTY TOTAL UNITS SQUARE FT. RENT RENT/SQUARE FT. DISTANCE FROM SUBJECT PROPERTY The Ravello 175 983 $1,884 $1.92 - Magnolia Place 33 593
$1,259 $2.12
1.2 miles Chestnut Street Lofts 60 528
$1,326 $2.53
11.7miles Redstone 230 1,025
$1,934 $1.89
11.7 miles Chestnut Square 205 916
$1,945 $2.12
11.9 miles Meridian at Eagleview 162 1,191
$2,255 $1.89
18.9 miles Eastside Flats 190 945
$1,696 $1.79
20.4 miles Royal Worthington 253 991
$2,107 $2.13
22.6 miles Ave Apartments Malvern 264 844
$1,603 $1.90
23.3 miles COMPARABLE MULTIFAMILY LAND SALES Property / Location Total Units Lot Size (Acres) Sale Date Sale Price Price Per Unit Price Per Acre Ravello (Subject Property) Kennett Square, PA 175
14.4 - - - - 10 Union Avenue Bala Cynwyd, PA 112
1.59 May-16
$5,800,000 $51,786
$3,647,799 Hanover Valley Forge King of Prussia, PA 339
2.83 Nov-15
$15,255,000 $45,000
$5,390,459 Haven at Atwater Village East Whiteland Township Malvern, PA 326 13.1
Sep-14 $12,551,000 $38,500 $958,092 Madison at French Creek Phoenixville, PA 350 20.5
Jan-14 $11,200,000 $32,000 $546,341 112 Sibley Avenue Ardmore, PA 46 0.65
Jan-14 $2,100,000 $45,652 $3,230,769 FINANCIAL ANALYSIS ANNUALIZED OPERATING EXPENSES
Real Estate Taxes $570,964 Insurance $50,000 Utilities $60,000 Trash
$20,000 General Maintenance $190,000 Water & Sewer $27,000 License & Permits $10,000 Advertising $25,000 Management $124,000 Payroll
$50,000 TOTAL EXPENSES $1,126,964 TOTAL EXPENSES PER UNIT $6,440 TOTAL EXPENSES/SQ FT $6.57 ANNUALIZED OPERATING DATA
**Scheduled Rent Income $4,128,000 *Other Income $294,105 Scheduled Gross Income $4,422,105 Less Vacancy/Other Deductions (5%) - $206,400 Effective Gross Income $4,215,705 Less Operating Expenses (26.73%) -$1,126,964 Net Operating Income $3,088,741 Capital Reserves $206,400
Pet Fees $30,000 Premium Parking Fees $96,000 Month to Month Leases $24,000 Amenity Fee $30,625 Storage Fee $52,800 Late Charges $11,880 Event Leasing $4,800 Cable Income $10,000 Lease Termination $27,000 Move in Fees $5,000 Application Fees $2,000 TOTAL $294,105 ** Based on projected rent roll UNIT TYPE # OF UNITS BED/BATH SQ. FT WEIGHTED MONTHLY RENT RENT/SQ. FT 1 Bedroom 24 1.1
767 $1,641.67 $2.14 1 Bedroom 11 1.1
759 $1,647.73 $2.17 1 Bedroom 4 1.1
754 $1,618.75 $2.15 1 Bedroom 4 1.1
818 $1,668.75 $2.04 1 Bedroom + Juli- et 8
818 $1,693.75 $2.07 1 Bedroom + Bal- cony 15
1.1 899
$1,846.67 $2.05 1 Bedroom + Bal- cony 4
857 $1,843.75 $2.15 1 Bedroom + Den/ Office 10
1.1 852
$1,742.50 $2.05 1 Bedroom + Den/ Office 1
1150 $2,100.00 $1.83 1 Bedroom + Bal- cony+ Den/Office 11
1.1 1008
$1,947.73 $1.93 1 Bedroom + Den/ Office 2
993 $1,975.00 $1.99 1 Bedroom + Loft + Terrace 4 1.1 767 $1,800.00 $2.35 1 Bedroom 8 1.1
823 $1,712.50 $2.08 2 Bedroom 24 2.2
1167 $2,143.75 $1.84 2 Bedroom + Bal- cony 16
2.2 1108
$2,193.75 $1.98 2 Bedroom 10 2.2
1132 $2,200.00 $1.94 2 Bedroom 9 2.2
1182 $2,136.11 $1.81 2 Bedroom + Loft + Terrace 2 2.2 1377 $2,800.00 $2.03 2 Bedroom + Loft + Terrace 1 3.2 1586 $3,000.00 $1.89 2 Bedroom Pent- house + Terrace 4 2.2 1539 $3,000.00 $1.95 3 Bedroom 2 3.2
1468 $3,212.50 $2.19 3 Bedroom + Loft + Terrace 1 3.2 1989 $3,500.00 $1.76 UNIT MIX & MARKET RENTS *Rendering AMENITY DECK PLAN LANDSCAPE PLAN LOCATION
Exelon Generation Chatham Financial Kennett Area YMCA Genesis Healthcare Ravello Local Market Area Employers MARKET AERIAL
Magnolia Place Luxury Apartments 33 Units Fully Leased
*Outline denotes general location of property. Not an accurate representation of actual property lines. SITE
EMPLOYMENT The Ravello is located in Kennett Township, immediately adjacent to Downtown Kennett Square Borough. Kennett Township’s employment is forecasted to increase by 31.3%. The Borough of Kennett Square is also forecasted to increase by 22.1%
A portion of this growth will be driven by the area’s largest employers located less than 3 miles from The Ravello property, some within walking distance. These include Exelon Energy, Chatham Financial, Genesis Healthcare, and world-renowned Longwood Gardens, which draws over 1 million visitors per year. CHATHAM FINANCIAL
316
.4 miles EXELON ENERGY
640 DIRECTLY ADJACENT GENESIS HEALTHCARE
.5 miles LONGWOOD GARDENS
467
1.9 miles COMPANY EMPLOYEES MILES AWAY Longwood Gardens Exelon Energy Chatham Financial Genesis Healthcare According to the article Wilmington to West Chester by Delaware Online; “At roughly 14,600 daily com- muters in 2013, more Chester County residents com- muted to New Castle County than to Philadelphia, ac- cording to the most recent statistics from the United States Census Bureau.“ TOTAL
2,223
Within 2 miles 13 Miles To Wilmington, DE CHESTER COUNTY Chester County, located in southeast Pennsylvania, has a little over 750 square miles of land area. Eastern Chester County is home to the affluent Main Line western suburbs of Philadelphia while the southwestern portion is a suburb of Wilmington, Delaware. It is the highest income county in Pennsylvania and the
median household income within Chester County was $86,093 in 2010-2014 and has grown by 31.85% since 2000. The income growth rate is on par with the state average and is higher than the national average of 27.36%. As of 2010- 2014, the total Chester County population was at 506,422 (2014) within 185,306 households, which has grown 16.82% since 2000. The population growth rate is considerably higher than the state average rate of 3.89% and is much higher than the national average rate of 11.61%. The median age is 39.9, and the largest number of residents fall into the 25 to 34 age range. The median house value was at $323,600 in 2010-2014 and has grown by 77.32% since 2000. The house value growth rate is higher than the state average rate of 70% and is much higher than the national average of 46.91%. Land Area 750 Square Miles County Seat West Chester Total Population 506,422
Municipalities 73
School Districts 12
Parks & Recreation Nearly 10,000 Acres (116 State Parks, 4 County Parks) Hospitals 7 Colleges / Universities 6 Libraries 16 (Total of 27 Branches) Banks
32 (Total of 123 Branches) Average Family Size 3.18 People Median Age 39.3 Years Median Household Income $86,093 Chester County is home to a number of universities and colleges including: West Chester University, Penn State Great Valley, Lincoln University, Cheyney University of Pennsylvania, Immaculata University and Valley Forge Christian College. It is also home to a multitude of award-winning school districts, including Kennett Consolidated, Unionville-Chadds Ford, Great Valley and West Chester. Chester County has a very strong and diverse business economy with a mix of smaller entrepreneurial companies, larger national chains and corporate headquarters. The county is a day’s drive from 25% of the nation’s consumer buying power. Some of the top employers include: Exelon Corporation, QVC Inc., Siemens Medial Solutions, Penn Medicine, Johnson & Johnson Pharmaceuticals, Pyle Corporation, IBM Corporation, Genesis Healthcare, Sunguard, Herr Foods, Chatham Financial, Mars Drinks, Wawa Inc. and many more. Mushroom Drop & Festival New Year’s Eve in Kennett Square is celebrated by the an- nual Mushroom Drop with 3 - 5,000 annual attendance and the fes- tival has an average of 80,000 annual attendance. Kennett Brewfest & Winterfest The Kennett Brewfest and Winterfest is held every October and February and includes samples from over 100 craft breweries and the annual Pillar Award, presented by Pillar Real Estate Advisors with 4,500 annual attendance
Kennett Square is home to over 80 shops and restaurants including Talula’s Table, which has been crowned by NPR as being one of the hardest restaurants in America at which to get a reservation. Kennett Square is only a 20 minute drive from the Wilmington waterfront with a multitude of restaurants and family attractions. KENNETT SQUARE There are over 80 shops and restaurants located within Downtown Kennett Square, including antiques, apparel, beauty & wellness, bookstores, brewpubs, gourmet foods, home décor, jewelers, wine cellars, and more. Kennett Square hosts over 13 annual events including monthly “Third Thursdays” which draws crowds from around the region.
Longwood Gardens is the living legacy of Pierre S. du Pont, inspiring people through excellence in garden design, horticulture, education, and the arts. Longwood Gardens drawls over 1 million visitors per year.
DEMOGRAPHICS 2016 Total Population
6,481
13,989 21,743
2021 Population (Projected)
6,644
14,305 22,221
Population Growth 2016-2021
2.52%
2.26%
2.20%
2016 Total Households
2,312
4,834
5,541 Household Growth 2016-2021
2.60%
2.36%
2.25%
Median Household Income
$67,405
$79,187 $90,817
Average Household Size
2.80
2.80
2.80 Median Home Value
$264,045 $303,949
$373,398 Median Year Built
1965
1975
1981 Demographics
1 Mile 2 Mile
3 Mile
for more information on the ravello apartment development site, please contact: Eric Kuhn O: (484) 887-8202 x.14 C: (803) 280-1950 EKuhn@PillarRealEstateAdvisors.com Andrew Carlino O: (484) 887-8202 x.23 C: (610) 733-1499 ACarlino@PillarRealEstateAdvisors.com This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future perfor- mance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfac- tion the suitability of the property for your needs. Andrew Turner O: (484) 887-8202 x.13 C: (484) 888-1825 ATurner@PillarRealEstateAdvisors.com Download 120.8 Kb. Do'stlaringiz bilan baham: 
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