Agenda - Council Work Session - 11/24/2009

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INDEPENDENT SENIOR HOUSING MARKET CONDITIONS Introduction This section evaluates the current market conditions for independent senior housing based on an inventory of existing active adult ownership and rental housing projects in the Primary Market Area. Table SH-l provides a summary of existing independent senior housing projects. Table SH-2 follows with additional information on the in-unit features and common area amenities of the surveyed independent senior projects. The survey was conducted in September and October of 2009. Existing Primary Market Area Independent Senior Housing Projects Maxfield Research identified eleven existing independent senior housing projects in the Primary Market Area that offer market rate active adult, market rate congregate, affordable active adult or subsidized active adult housing. The following are key points from Table SH-l and Table SH-2: . There are two active adult projects that offer for-sale senior housing. Grey Oaks Community came online in 2003 with two, 30-unit buildings and opened a third 30-unit building in 2006. A total of 32 units remain (total sold refers to closed units only) among the three buildings. The second project, Historic Rum River District, opened in February 2009 and has only sev- en remaining units of the 22 total units at the property. Although some one-bedroom units may be affordable to lower income households, the majority of units at these communities are above the affordability threshold of lower-income households. . For market rate active adult housing, Farmstead Cottages has six townhome units that range from roughly $1,888 to $1,935 for a two bedroom unit with 1,520 square feet. These six units are located on a large campus by Presbyterian Homes with housing across the entire service spectrum, which increases the market appeal for these units. · Two other projects offer market rate active adult housing, though they overlap significantly with affordable active adult housing. Oaks of Lake George and Savannah Oaks of Ramsey were developed as affordable housing units through the Anoka County HRA but do not have income-restrictions. The residents are a mix of households that qualify for affordable and market rate housing. We consider half of the units to be competitive with future develop- ment of market rate active adult housing and half to be competitive with future development of active adult affordable housing. . Oaks of Lake George opened in 2006 with a total of 51 units that range from $796 for a one- bedroom unit to $1,327 for the largest two-bedroom plus den unit. This project has never reached full occupancy and is currently 60% occupied. MAXFIELD RESEARCH INC.