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Summary of Market Findings-St. Anthony Redevelopment • In the St. Anthony, New Brighton, Mounds View district, the median home value increased from $125,500 in 1998 to $137,000 in 1999. This increase equals 9.2 percent for the year. Figures for year-end 2000 will not be available until the end of January 2001. • We have projected that the St. Anthony redevelopment areas could support between 50 and 60 single-family homes. However, development of single-family homes would likely be re- served for the Salvation Army site. Although the market would prefer the highest amenity parcel for development of single-family lots, we caution that this may not be the highest and best use of the property. For-Sale Townhomes • There is a strong market for for-sale townhomes, as evidenced by the successful develop- ment of many new projects in the St. Anthony market area during the late-1990s. About 700 townhome units were built in the market area during the 1990s, or about 30% of all housing ■ units. These units were well-received in the marketplace. • With a decrease in the amount of land available for new single-family homes, a greater di- ■ versity of life-styles and new housing products to address life-cycle housing needs, we proj- ect that this proportion will rise over the next decade. Originally, the townhome product ap- pealed almost exclusively to either first-time homebuyers or to senior moving from their single-family homes. In today's market, townhomes appeal to households across the entire ■ age, lifestyle and income spectrum. Townhome products with a variety of designs, features and amenities have been developed to appeal to these different market segments. • We have projected that the St. Anthony redevelopment areas could support between 300 and 330 units of for-sale townhomes of different product types. Rental Housing . • We found that the apartment vacancy rate in the St. Anthony Housing Market Area is under 1.0%, which is very low and indicates that there is pent-up demand for additional rental units (a healthy rental market should have a 5.0% vacancy rate to allow for consumer choice). • The lack of apartment development across the Twin Cities Metropolitan Area has resulted in increasing rents which has helped to make new construction possible. New market rate apartments in the Twin Cities currently command rents of$800 per month for a one- bedroom unit to $1,500+for three-bedroom units. At these rent—levels, the market is largely a "lifestyle" renter, households who prefer to rent their housing rather than own for a i variety of reasons. The largest market segments are mid-age professional couples and sin- gles and empty-nesters and seniors. i • We have calculated that pent-up demand plus demand from projected household growth re- �. sults in a total market area demand of about 860 units, of which the St. Anthony redevelop- ment area could capture 410 to 450 units. Page 4