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Multi-Family M lti Famil

Pat Eberlin

Topics
• • • • • • • • Kootenai County Sales Volume New Construction Permits New Projects Current Vacancy Rates & Rents Year Built Vacancy Breakdown Vacancy vs. Unemployment Shadow Stock 2009 Overview & 2010 Forecast

Historical Kootenai Co. Sales Volume
70 60

$ (Millions)

50

40

30

20

10

0

Source: Coeur d’Alene MLS

Appleway Apartments
2712 North Howard Street, Coeur d’Alene • • • • 45 U it Units Built 1995-1996 Out of State Seller/Local Buyer Operating at 95-98% Occupancy

Howard Place Apartments
2707 North Fruitland Lane, Coeur d’Alene • • • • 40 Units Built 1980 HUD Property U ope y Operating at 95%+ Occupancy

Multi-Family New Construction Permits
100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 40 000 000 30,000,000 20,000,000 10,000,000 0 2006 2007 2008 2009 12 MM 9 MM 51 MM 91 MM

New Projects
The Lynn Peterson House • • • • • 15 Units 75 Year Land Lease $2 Million Grant St. Vincent De Paul HUD Section 811

New Projects
Royal Arms II Apartments • • • • • Estimated O E ti t d Occupancy April 1 2010 A il 1, 15 Units 1 Bed/1Bath Units 750 SF & 1,140 SF $600-$850/month

New Projects
36 Unit Apartment Complex • • • • Fruitland Lane – Coeur d’Alene Local Investors 3 Apartment Houses 2 Bed/1 Bath Units

New Projects
37 Unit Apartment Complex • • • • • • Breaking Ground within 30 60 D B ki G d ithi 30-60 Days St. Vincent De Paul City of Coeur d’Alene Land Lease d Alene Adjacent to the Lynn Peterson House Approximately $3.9 Million in Grants pp y HUD Section 202

Current Vacancy Rates & Rents
Year End 2009
Overall Vacancy Rate Total Apartment Units Surveyed Average Rent Per Net Rentable SF 10.9% 1,386 $0.749

Vacancy Rate by # of Bedrooms 1 Bed/1 Bath 6.6% 2 Bed/1 Bath 10.9% 2 Bed/2Bath 12.9% 3 Bed/2 Bath 24.8%

Year Built Vacancy Breakdown
35 30

25

% Vacant

20

15

10

1 bed/1bath 2 bed/1 bath 2 bed/1 bath Overall

5

0

1975‐1984

1985‐1994 1995‐present

Vacancy Rates vs. Unemployment
%  Vaca ant/Unemployed d

Unemployment p y Vacancy

Shadow Stock
• Definition “The excess housing, such as failed condo projects and distressed single family homes, which tenants can now g y rent as an alternative to the traditional apartment unit.” Effects Eff t on 3 B d Bedroom/2 B th A t /2 Bath Apartment Units t U it Contributor to Overall Rising Vacancies

• •

2009 Overview  Sales Volume  Vacancy Rates  Rents  New Construction Permits

2010 Forecast & Recommendations • Static Market Conditions • Unemployment Recovery is Key • Competitive Rent Pricing p g • Shadow Stock Effect • T Tenant Retention & Efficiency t R t ti Effi i • Opportunity

Thank You
For Slides • Email peberlin@cbcsr.com • Vi it www.cbcsr.com Visit b