M lti Famil

Multi-Family
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

Source: Coeur d’Alene MLS

Appleway Apartments
2712 North Howard Street, Coeur d’Alene

• 45 U
Units
it
• 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
U Property
ope y
• Operating at 95%+ Occupancy
Multi-Family New Construction Permits
100,000,000
91 MM
90,000,000
80,000,000
70,000,000
60,000,000
51 MM
50,000,000
40 000 000
40,000,000
30,000,000
20,000,000
12 MM
9 MM
10,000,000
0
2006 2007 2008 2009
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
E ti t d Occupancy
O April
A il 11, 2010
• 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
B ki G Ground d within
ithi 30
30-60
60 D
Days
• St. Vincent De Paul
• City of Coeur d’Alene
d Alene Land Lease
• Adjacent to the Lynn Peterson House
• Approximately
pp y $3.9 Million in Grants
• HUD Section 202
Current Vacancy Rates & Rents
Year End 2009
Overall Vacancy Rate 10.9%
Total Apartment Units Surveyed 1,386
Average Rent Per Net Rentable SF $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

1 bed/1bath
15
2 bed/1 bath
2 bed/1 bath
10
Overall

1975‐1984 1985‐1994 1995‐present

Vacancy Rates vs. Unemployment
%  Vacaant/Unemployed
d

Unemployment
p y
Vacancy
Shadow Stock
• Definition
“The excess housing, such as failed condo projects and
distressed single
g family y homes, which tenants can now
rent as an alternative to the traditional apartment unit.”

• Eff t on 3 B
Effects Bedroom/2
d /2 B
Bath
th A
Apartment
t t Units
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
p Rent Pricing
g
• Shadow Stock Effect
• Tenant
T t Retention
R t ti & Efficiency
Effi i
• Opportunity
Thank You
For Slides
• Email peberlin@cbcsr.com
• Visit
Vi it www.cbcsr.com
b