Laserfiche WebLink
<br />Nagell Appraisal Incorporated | 952.544.8966 Page 41 <br /> <br />Highest and Best Use – continued <br /> <br /> <br />Market Demand – Continued: Market demand for apartment land in the subject area is soft to <br />average as well. CoStar indicates that there has only been one apartment buildi ng constructed in <br />Mounds View after 2002. There has been newer senior living that has been built. <br /> <br />CoStar indicates the following asking rates for various unit types: <br /> <br />1BR: $864 per month <br />2BR: $983 per month <br />3BR: $1,369 per month <br /> <br />The appraiser has observed that new construction units are generally 20% to 40% higher than <br />the market average. This might imply the following apartment rent ranges for any new <br />development at the subject site: <br /> <br />1BR: $1,050 to $1,200+ per month <br />2BR: $1,200 to $1,400+ per month <br />3BR: $1,650 to $1,900+ per month <br /> <br /> <br />The highest observed rents (newer building, 50+ units) in the Mounds View area are at Landmark <br />Estates (5400 Landmark Circle): <br /> <br />1BR: $945 per month <br />2BR: $1,025 per month <br />3BR: Not available <br /> <br /> <br />New construction might be supported however, the building would likely have the highest rent <br />rates in Mounds View. That said, a developer might be a little cautious when building premium <br />units in Mounds View; this caution might be reflected in a lower land price as opposed to an <br />established area with history of higher rents. <br /> <br />Note: Per Brian Beeman, one developer conducted a feasibility study that sho wed there is high <br />demand for senior living, low income housing, and market rate apartments. The study was not <br />provided to the appraiser however, it does make logical sense given the current hot apartment <br />market (historically high rents and low vacancy). <br /> <br /> <br /> <br />Financially Feasible Uses: A feasibility analysis has not been completed as development plans <br />for the subject are too speculative at this time. That said, an apartment or mixed-use is logical for <br />the site. Development timing would depend on the land purchase price. <br /> <br />Note: This appraisal does not consider any TIF; if included a developer might be incentivized to <br />develop the site. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />