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<br /> feet, or 14.7%, is vacant. These figures indicate that the neighborhood center market is not as
<br /> healthy in comparison to the overall retail market and, more specifically, the overall
<br /> neighborhood market, which is reporting a vacancy rate of 9.9%.
<br />• The multi-family residential or apartment real estate market in the Metropolitan Area has been
<br /> fairly stable and now at a low vacancy rate of 2.9%. This metropolitan apartment data has been
<br /> gathered by and obtained from the group known as Profiles, a Division of Apartment Search.
<br /> The 1996 figures for the Mounds View community shows a total of nine multi-family
<br /> complexes, comprised of 976 units in total. Of those 976 total units, 29 of them are currently
<br /> vacant, equating to a vacancy rate of 3.0%. The nearby town of Spring Lake Park has five
<br /> apartment complexes containing a total of 477 units, of which 16 units, or 3.4%, are vacant. The
<br /> other adjacent city, which is a similar community to Mounds View, is its neighh1r to 1-.l s-°11-5;
<br /> New Brighton. New Brighton has 15 apartment complexes, containing a total i.629
<br /> New Brighton, there are currently 40 units available, which equates to a very low vacancy rate of
<br /> 2.5%.
<br /> The average monthly rental rates for studios, one bedroom units, two bedroom units and three
<br /> bedroom units in the city of Mounds View are $395, $481, $573 and $745, respec::',:21y.
<br /> comparison, the entire metropolitan average monthly rental rates are $414, $530, $666 and $86b,
<br /> respectively. Thus, Mounds View is receiving considerably less. The fact the cur -, ' ,:ounds
<br /> View vacancy rate is slightly higher than the metro average is the reason the commuatvj cannot
<br /> charge higher than its current average rates. It is unclear if the above stated rental an vacancy
<br /> rates warrant new construction at this time. In fact, very little new construction of apartment
<br /> ill buildings is occurring throughout the metropolitan area. Townhouse-type development has been
<br /> much more active of late.
<br /> The apartment building situated within the subject area, Pleasant Wood Apartments, is currently
<br /> 30% vacant, and receiving monthly average rents of$450-$475 for one bedroom ur.dts and5�C,
<br /> $575 for two-bedroom units. There are a total of 40 units within the complex. This information
<br /> was obtained from the new property management company, Halverson & Blaiser en''v . ` `,-
<br /> property manager also explained that they are extremely disappointed with the vacancy rate of
<br /> this complex and hopes to increase occupancy relatively quickly with an aggressi.yci..,Teti).-,
<br /> strategy and a partial rehabilitation of the complex. Presently, the new group is upgrading the
<br /> interior common areas and going room by room to redecorate, all to be completed by April. In
<br /> addition, their plans are to install new exterior signing, add minimal landscaping and complete
<br /> some parking lot improvements in an effort to improve the exterior image of the building and
<br /> attract new tenants.
<br /> Apartment sales which have occurred in Mounds View in recent years are as follows: the two-
<br /> story, 8-unit, 1964 apartment complex located at 5691 Quincy Street NE sold in July, 1996 for
<br /> �+ nn m�� ins t 16
<br /> nen located at ',"(ln
<br /> $105,000, or $13,125 per unit; the two-story, 16-unit, 1959 apartment complex 500
<br /> County Road I sold in December, 1994 for $140,000, or $8,750 per unit; and the three-story, 46-
<br /> unit, 1970 apartment complex, known as Timberland Ridge, located at 7501 Greenfield Avenue
<br /> sold in February, 1992 for $940,000, or $20,345 per unit. Other apartment complexes of similar
<br /> iio location and age as that of Pleasant Wood, but with average conditions, typically sell for between
<br /> $15,000 to $25,000 per unit. Looking at just the low end of this range, the value of Pleasant
<br /> Wood is $600,000, assuming its in average condition. Typical land values for residential
<br /> property in this area range from $1.50 to $2.50 per square foot, which indicates a value for the
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