Village at Odenton Station Market Study

7/28/2019 Village at Odenton Station Market Study

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RDEV688XMarket Analysis

Market Feasibility Analysis

Village at Odenton Station

Prepared By:

Timur S Ryspekov


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TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................................... 2 I. INTRODUCTION ................ ................. .................. ................. .................. ................. .................. ................. . 3 II. LOCATION AND NEIGHBORHOOD CONTEXT ................. .................. ................. .................. .................. 4

A. S ITE LOCATION AND S URROUNDING L AND USES ........................................................................................ 4 B. S UBJECT PROJECT DESCRIPTION .............................................................................................................. 8 C. TRANSPORTATION AND TRANSIT ACCESSIBILITY ......................................................................................... 9 D. AVAILABILITY OFNEIGHBORHOOD S ERVICES AND AMENITIES ....................................................................... 11 E. S CHOOLS ................................................................................................................................................... 13

III. ECONOMIC CONTEXT .................. ................. ................. .................. ................. .................. .................. . 14 A. L ABOR FORCE AND UNEMPLOYMENT ....................................................................................................... 14 B. AT-PLACE EMPLOYMENT......................................................................................................................... 16 C. M AJOR EMPLOYERS ............................................................................................................................... 20D. COMMUTING PATTERNS ............................................................................................. 22

IV. SOCIO-ECONOMIC AND DEMOGRAPHIC CONTEXT ...........24 ERROR! BOOKMARK NOT DEFINED. A. DEFINITION OF M ARKET AREA ................................................................................................................. 24 B. GROWTH TRENDS ................................................................................................................................... 25 C. DEMOGRAPHIC CHARACTERISTICS .......................................................................................................... 29 D. INCOME CHARACTERISTICS ..................................................................................................................... 32

V. COMPETITIVE ANALYSIS ................ ................. ................. .................. ................. .................. ................ 34 A. AREA HOUSING S TOCK CHARACTERISTICS .............................................................................................. 34 B. GENERAL OCCUPANCY RENTAL M ARKET ................................................................................................. 40 C. RENTAL P IPELINE COMMUNITIES ............................................................................................................. 43

VI. FINDINGS AND CONCLUSIONS ................ ................. .................. ................. .................. ................. ..... 45 A. OVERALL FINDINGS ................................................................................................................................ 45 B. DERIVATION OF DEMAND......................................................................................................................... 48 C. T ARGET M ARKET. ................................................................................................................ 55

D. UNIT DISTRIBUTION AND DERIVATION OF PROPOSED RENT ................. .. 56 ERROR ! BOOKMARK NOT DEFINED . E. ABSORPTION ESTIMATE .......................................................................................................................... 57


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I. INTRODUCTION

The following market feasibility analysis is to evaluate a future transit-oriented mixed-use development,construction to begin January 2013-September 2014, of a proposed rental community in Odenton, Maryland.The Village at the Odenton Station site is located in the Anne Arundel County and spreads over a 400,000 sq.ft. land parcel. The development will introduce 57,000 sq. ft. of retail and 235 apartment homes in this luxurycommunity. The proposed site is located between two major cities- Washington D.C (30miles away) andBaltimore, Maryland (24 miles away) (MAP1). One of the busiest rail stations on the Penn line with over 2000

riders a day, MARC Odenton station is literally across the street from this emerging community.Historically, Odenton became the hub for supplies during the American Civil War. Serving as aconnection point between the Capitol and the North via railway, Odenton had access to the port city Baltimore.The farming town grew accordingly to the development of the railroad and in 1878 became the largest city inthe state of Maryland with 100 residents. In 1920 at the advent of World War I, The United States Departmentof War acquired 19000 acres of land for a training camp known as the Fort Meade that drove many farmers off their land to a denser lifestyle.

The Base Realignment and Closure (BRAC) plan of 2005 will ensure both residential and commercialgrowth in the Odenton area. Adjacent to the Fort George G. Meade base, emerging development will beserving the expanding activity and population in the area. In addition, the state of Maryland has committed $2billion for the BRAC-related infrastructure improvements. By consolidating military activities in the Fort Meadearea the estimated number of emerging jobs is around ten thousand.

This market analysis will focus on the following areas:Site AnalysisEconomic Market Area DesignationDemographicsCompetitionAppraisal


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II. LOCATION AND NEIGHBORHOOD CONTEXT

A. Site Location and Surrounding Land Uses

Located in the western part of the Anne Arundel County, rectangular (Map 3) parcel is located thirtymiles away from the nations capital Washington D.C, twenty four miles away from the largest city in Maryland-Baltimore and five miles away from the Baltimore Washington International Thurgood Marshall Airport (BWI).

MAP 3 SITE

Immediate surroundings include the following:

To the east : Parking lot with nearly 2000 surface parking spaces serving the MARC Railway Stationcommuters. The Odenton Station is one of the busiest railway stations on the Penn line offering transfers toBaltimore and Washington DC Union Station.(Fig.1, 2, 3) Going clockwise on the intersection on the OdentonRd and Morgan Rd to the southeast of the site is a Epiphany Episcopal Church behind which is a cemetery(Fig. 4). Odenton road to the east of Morgan Rd is mostly single family housing with 1-2 stories homes most of which have a garage.

To the south of the site and west off Morgan Rd, are small business industrial facilities. ElectricContractor and a Tech Mark, Weyers Floor service and others are spread through out the Odenton Rd. Mixedbetween them are single family houses and two local bars/restaurants.(Fig. 5,6,7) At the turn of the OdentonRd, to the southwest of the site Fort Meades fence marking bases territory. (Fig 8)

To the west of the site are more industrial- oriented small businesses: L&C Electric, North CountyTowing, Auto Parts store and others. Again, facilities are mixed with residential single family houses. Fig.(9,10)

To the north of the site is an office building. Top floor is fully vacant; first floor is rented by theKidstation Early Education Center with classrooms and an outdoor playground. Fig (11) Also to the north is achurch Fig.(12) and a bank.


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SITE: IMMEDIATE SURROUNDINGS

FIG 1: MARC STATION FIG 2: MARC STATION FIG 5: SINGLE FAMILY HOUSES

FIG 3: PARKING. MARC STATION FIG 6: LOCAL BARS

FIG 4: EPITHANY EPISCOPAL CHURCH FIG 7: BUSINESS FACILITIES


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SITE: IMMEDIATE SURROUNDINGS CONTINUED

FIG 8: FORT MEADE FENCE FIG 11: OFFICE BUILDING

FIG 9: NW INDUSTRIAL FACILITIES FIG 12: CHAPEL

FIG 10: NW MIXED RESIDENTIAL


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VIEWS OF SUBJECT SITE

There is an existing development project under construction on the site. (Fig 12, 13, 14) The Village atOdenton Station will include 235 new luxury apartment as well as retail and office space over undergroundparking that will house 640 spaces. Groundbreaking Ceremony was on October 2 nd, 2008 and the project is setto be completed sometimes in 2012. Competition section of this market study will focus in depth on the existing

project.

WEST TO EAST VIEW ALONG DUCKENS ST.

ALONG DUCKENS ST. 2 WEST TO EAST


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B. Subject Project Description

The Village at Odenton Station is Anne Arundel Countys first transit - oriented mixed-use development.Final product will cover 1,620 acres of land with 235 luxury apartment homes, 57,000 sq ft of retail space andunderground parking garages.

Tenants are expected to pay for all utilities including gas, electric, hot water and heat. Luxuryapartments will have nine-foot ceilings, walk- in closets, panel doors, open kitchens and ceramic tile entriesand baths. Some units will include lofts, balconies, fireplaces and other amenities based on their location.

Among other amenities are standard appliances that include microwave, dishwasher, self-cleaning oven, ice-maker, disposal and full size washer and dryer.

Developed community will offer complement amenities including a clubhouse, party room, 24/7 fitnesscenter, conference room, business center, cyber caf, lobby, small theater, outdoor courtyards, outdoor swimming pool and grill area. Security amenities will include controlled building and parking access andstandard concierge services.Project Name: Village at Odenton Station

Address: Town Center BlvdCity, County, zip: Odenton, MD 21113

Project Information Additional InformationNumber of Residential

Buildings One

Construction Start

Date 3/2010Building Type Mid-Rise Date of First Move-In 2011

Number of Stories 4 + underground garageConstruction Finish

Date 2011

Construction Type New Const. Parking Type GarageDesign Characteristics

(exterior) Brick & Stucco Parking Cost $0

Community Amenities

Clubhouse, Party Room, 24/7 Fitness Center,Conference Room, Business Center, Cyber Caf,

Lobby, Small Theater, Outdoor Courtyards,Outdoor Swimming Pool, Grilling Area, ControlledBuilding and Parking Access, Standard Concierge

Services, Retail Shoppes

KitchenAmenitiesDishwasher Yes

Disposal Yes

Microwave YesRange Yes

Refrigerator Yes

Unit Features

9 Foot Ceilings, Walk-In Closets, Panel Doors,Open Kitchen and Ceramic Tile Entries and Baths,

Lofts, Balconies, Fireplaces, Microwave,Dishwasher, Self-Cleaning Oven, Ice-Maker,

Disposal, Full Size Washer and Dryer

Utilities Included

Water/Sewer Owner

Trash Tenant

Heat Tenant

Heat Source Elec

Hot/Water Tenant

Electricity TenantOther:


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C. Transportation and Transit Accessibility

The site is located directly across the street (Morgan Rd) from the MARC Railway Station. One of thebusiest railway stations on the Penn line, Odenton Station boards over 2000 passengers on daily basis.Destinations include a short commute to the nations capital, Baltimore MD or the BWI airport. (Map 4)

Central Maryland Regional Transportation/ Connect-A-Ride services in West Anne Arundel County:Route K, M serving Arundel Mills Mall, Severn, Meade Village, Pioneer City, Seven Oaks, Odenton MARC, andOdenton is another way to get around locally. There is also a shuttle bus that offers transfers between

Odenton MARC railway station and Fort Meade.Still most commuters and future residents will be relying on a vehicle as the primary mean of transportation. Village at the Odenton Station has several vehicular access points: Patuxent freeway 32 fromthe west, Annapolis rd. 175 from the east, Telegraph rd. 170 from the north, and Piney Orchard Pkwy from theSouth (Map 2). Interstate 95 can be accessed within 10 miles via Patuxent freeway. Interstate 95 is a major highway just under 2,000 miles that connects most Northern point of the east coast at the Canadian border-Houlton, ME and the most Southern point of the East coast- Miami, FL. More importantly to the site, I-95serves as the main access point to Washington D.C and Baltimore, MD.

MAP 4: MARC Railway


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According to the Marylands Department of Transportation(http://www.mdot.maryland.gov/Planning/CTP_11_16/SHA2011.html), several improvements are underway inthe Anne Arundel County. Most of the improvements are directly related to the BRAC of 2005. The followingimprovements have direct effect on accessibility and convenience of the Village at Odenton Station location.

A study is conducted to identify traffic flow improvements on MD 175, Annapolis Road from MD295 to MD 170 (5.2) miles. Bicycles and pedestrian accommodations will be provided whereappropriate (BRAC Related). The project is to address current and future congestion alongMD175 and to improve access to Fort Meade upon base consolidation.

A study is conducted to improve MD 3 from US 50 to MD 32 that will address safety andcapacity concerns (8.89 miles). Bicycle and pedestrian access will be provided whereappropriate. Wider curb lanes are also expected. The project is to reduce congestion in thecorridor.


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D. Availability of Neighborhood Services and Amenities

Besides the immediate amenities within the proposed community, future residents will find several localday-to-day need shops, small businesses and gas stations.

Most of the three- mile radius around the proposed site is residential. After expanding the study togeneral area, there are numerous single family communities (Fig. 15, 16, 17, 18) along Piney Orchard Pkwyand many in construction mode. At the three mile mark south on Piney Orchard Pkwy is a shopping center witha grocery store, dry-cleaning, bank and other small retail and service providing businesses Fig. 13, 14. There

is another shopping center the intersection of 175 and 170 with a few restaurants and auto repair shops. Thereare several churches alongside 170. Odenton is very limited when it comes to shopping. Clothing, electronicsand other goods that fall under the category of the comparison goods can be obtained a drive away. Theclosest shopping mall is located in Hanover, MD. Just five miles away from the Odenton Station this indoor outlet shopping mall houses numerous stores (Full directory can be viewed atsimon.com/mall/malldirectory.aspx?id=1230). The outlet center also offers on-site dining restaurants includingthe Medieval Times, and a movie theater.

Also five miles away is a Night Hawk Golf Course and numerous Parks including Patuxent River Park,Towsers Park, Odenton Park, Midland Park, Meade Village Park, Severn Danza Park and others. The closesthospital to the Odenton Station is the Johns Hopkins Community Physicians located on Annapolis Rd. Also on

Annapolis Rd a Health Care Enterprises and the Orchard Surgical Center.

Establishment Type Address Distance

Odenton Shopping Ctr Entertainment 1115 Annapolis Rd, Odenton, MD 1.7 mi E

Arundel Mills MallShopping Mall/Entertainment 7000 Arundel Mills Cir, Hanover, MD 6.6 mi N

Smith Bus Services Transportation/Bus Charter 1890 Bucklina Avenue, Odenton, MD .2 mi NEMARC Odenton Rail Station Transportation/Train 29ft SESandy's Convenience Store Convenience Shopping 245 Burns Crossing Road,Severn, MD 2.7mi SE7 Eleven Convenience Shopping 1350 Odenton Road, Odenton, MD .6mi SERiece's Store Convenience Shopping 8374 Piney Orchard Parkway, Odenton, MD .6mi SEHarvest Moon Produce & Seafood Convenience Shopping 1099 Annapolis Road, Odenton, MD 1.4mi SESuperFresh Convenience Shopping 1155 Annapolis Rd, Odenton, Maryland 1.2mi SEBloom (FIG13) Convenience Shopping 8741 Piney Orchard Parkway, Odenton, MD 1.7mi SEWeis Markets Convenience Shopping 2294 Blue Water Boulevard, Odenton, MD 1.0mi NW

Seth Cameron Medical Clinic 1416 Annapolis Road, Odenton, MD .2mi NJohns Hopkins Community Phys Medical Clinic 1132 Annapolis Road, Odenton, MD 1.2mi EPain Relief Therapies Alternative Medecine 8288 Telegraph Road, Odenton, MD .9mi NENovaCare - Odenton Medical Clinic 1215 Annapolis Road, Suite 204, Odenton, MD 1.0 mi EFerry Point INC Medical Clinic 8379 Piney Orchard Parkway, Odenton, MD .6mi ESynergy Martial Arts Recreation 1360 Blair Drive, Odenton, MD .4mi ECarter School- Dance-West County Recreation Waco, Odenton, MD .5mi SEWheels Skating Center Recreation 1200 Odenton Road, Odenton, MD 1.1mi SEWin Win Gymnastics Recreation 8266 Lokus Road, Odenton, MD .9mi NEGreenway Bowl Odenton Recreation 8246 Telegraph Road, Odenton, MD 1.0 mi NEParks Martial Arts Recreation 8251 Telegraph Rd # A, Odenton, MD 1.0 mi NEShelton Martial Arts Recreation 1202 Annapolis Rd # D, Odenton, MD 1.0 mi E

Seven Oaks Community center Recreation 2110 Charter Oaks Boulevard, Odenton, MD 1.3 mi NWOdenton Library Library 1270 Odenton Road, Odenton, MD .8 mi SEPost Library Library 418 Llewellyn Avenue, Ft George Meade, MD 1.5mi NWKimbrough Army Hospital MedicalLibrary Library

2480 Llewellyn Ave # 5800, Ft George Meade,MD 1.2mi NW

Odenton Elementary School School Odenton, Maryland .8 mi SEArundel Middle School School 1179 Hammond Lane, Odenton, MD 1.5 mi SEArk & Dove School of Music School 8424 Piney Orchard Parkway, Odenton, MD .7 mi SE


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FIG 13: BLOOM FIG 14: OTHER SMALL BUSINESSES

FIG 15: TOWNHOUSES FIG 16: SINGLE FAMILY

FIG 16: SINGLE FAMILY FIG 17: SINGLE FAMILY


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E. Schools

There is a number of educational institutions in Odenton. Odenton Christian School is about a mileaway as well as the Odenton Elementary School. Waugh Chapel Elementary, Ridgeway Elementary andSeven Oaks Elementary Schools are all within five miles radius. Arundel Middle and High schools are twomiles away. University of Maryland College Park is fifteen miles away.

Classroom examination scores are an evaluation technique to ensure the overall quality of instructionsbased on location. The following are students scores in site-adjacent schools.

Anne Arundel County Elementary SchoolsMaryland School Assessment Report, 2008-2009 School year

% Students Achieving Proficient or Advanced% Studentswith Special

ServicesCounty Grade 3 Grade 4 Grade 5 All Grades

LEP FARMSRank School Math Reading Math Reading Math Reading Science Composite

46Seven OaksElementary 89.0 87.0 95.6 86.8 81.7 91.6 77.8 87.1 1.6 18.8

47Waugh ChapelElementary 87.1 86.1 92.4 92.6 88.7 90.4 69.8 86.7 3.3 22.3

70

Odenton

Elementary 73.6 83.0 88.1 86.3 70.3 86.4 63.6 78.8 4.8 30.9

Anne Arundel County Middle Schools

Maryland School Assessment Report, 2008-2009 Schoolyear

% Students Achieving Proficient or Advanced% Studentswith Special

ServicesCounty Grade 7 Grade 8 All Grades

LEP FARMSRank School Math Reading Math Reading Science Composite

10 Arundel Middle 78.5 80.2 77.5 88.4 75.2 80.0 1.5 17.6

Anne Arundel County High Schools Maryland High School Assessment Report, 2008-2009 Schoolyear

% Students Achieving Proficient or Advanced

% Studentswith Special

ServicesCounty Market High School All Grades

LEP FARMSRank Rank School Math Reading Science Composite

4 1 Arundel High 97.4 94.5 91.4 94.4 0.0 10.8


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III. ECONOMIC CONTEXT

A. Labor Force and Unemployment

Unemployment rate in Anne Arundel County has been below the Nations average for two decades. According to the Department of Labor, Anne Arundel County has an unemployment rate of 6.8% and theNations average was 9.7% in 2010 (Table A). The rate has drast ically increased in 2008 when been yetanother recession hit. Over 10,000 jobs were lost in a two-year period almost doubling the unemployment rate

(3.9% in 2008 to 6.8% in 2010). The rate, however, is expected to drop significantly over the next few years. According to the Maryland Department of Transportation, Anne Arundel County is expected to gainover 10,000 jobs by 2013 with over 5,000 by the end of 2011. Falling under the Base Realignment and Closureof 2005, Fort Meade will add over 4,000 positions for the Defense Information Services Agency, over 1,000 in

Army, Navy and intelligence services, 663 positions for the Defense Media Agency (DMA), 760 positions for the Defense Adjudication Co- location and others. As a result Fort Meades growth is 1.8 mi llion sq. feet of newconsolidated facilities for Intelligence Community Use completed by 2014 (AAEDC 2011). In addition, anexpected number of 20,000- 30,000 of new jobs will be derived from private industries serving Fort Meadesimpact.

According to the Anne Arundel Economic Development Corporation 4,000 new jobs will also emergewith the introduction of the Gaming and Entertainment Facility at Arundel Mills. This world class gaming facilityfor video lottery will bring $400 million annually to State Education Trust Fund, $30 million to Anne Arundel

County and $60 million in parking and road improvements in the area.Table B zooms in on the unemployment rate from January 2010 to August 2011. There is a decrease of .7% in unemployment in Anne Arundel county while the national unemployment rate increased a full 1%. Themap of Maryland (TABLE B1) marks Anne Arundel County as one of few areas with 6.1%-7.0% unemploymentrate.

TABLE A: Annual Unemployment Rates


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TABLE B: Monthly Unemployment Rates

(Bureau of Labor Statistics Map) TABLE B1: Unemployment rate in Maryland


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B. At Place Employment

Anne Arundel County is rich for government (Federal, State and Local) employment. In 2001government to private sector jobs was at 20% (34,194/165,981), in 2010 the percentage remained at 20%(38,826/187,683) but is expected to grow in the next three years due to BRAC. In addition to the FederalGovernment, there is a vast range of private sector employment led by the Trade- Transportation- Utilitiesindustry at 51,142, Professional-Business industry at 33,790 and Leisure and Hospitality at 27,441 in 2010.(TABLE C, D)The three industries make up 60% of County Employment.

TABLE C: At Place Employment


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TABLE D: Change in At Place Employment

In comparison to the Nations average, Anne Arundel County has proportionally more jobs in Professional Business Industry by 2%. The county is also leading in the Trade-Transportation-Utilities industry by 3.5% mainly due to the Baltimore Washington Thurgood Marshall International

Airport (BWI) and many ports in the Baltimore city. As mentioned in the Site Analysis MARCRailway serves Anne Arundel county in and out of Washington D.C and the city of Baltimore. Anne

Arundel County is above the Nations employment rate by 2.3% in Leisure and Hospitality industry.Government average is very close at 17.5% for United States and 17.1% for Anne Arundel County.(TABLE E, F)


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TABLE E: Employment by Sector

TABLE F: Annualized Employment Change by Sector


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Sage Policy Group, Inc in their BRAC Impacts on Fort Meade Area Housing states that themajority (35%) of current Fort Meades workers residences are located in the Anne Arundel Countywith second to highest average housing cost of $403, 687. Sage Policy Group, Inc estimates 35.2% of all BRAC-related housing demand to locate in Anne Arundel County by 2014.


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C. Major Employers

Among the major government and private employers in the Anne Arundel County are Ft. George G.Meade, BWI, U.S Naval Academy, Northrop Grumman and CSC. (TABLE G) Even though FederalGovernment industries dominate countys job market, the area contains comme rcial, retail, health and high-tech industries.

Located in between Fort Meade and BWI, smaller companies are spread out throughout the area whilemost major employers are located to the Northwest of the site. (TABLE F)

Government EmployersEstimated # of Employees Product of Service

Ft. George G. Meade 55365

Dept. of Defense intelligence training & administration;major tenants National Security Agency, DISA (source for emp#: Ft. Meade)

Anne Arundel County Public Schools 14000County public education K-12 (employee number includesfull-time, part-time & contractual employees)

BWI Thurgood Marshall Airport 9717 Regional airport State of Maryland 9577 State government services

Anne Arundel County Government 4163 Local government servicesU.S. Naval Academy 2340 Federal naval education facility

U.S. Coast Guard Yard & TenantCommand 1200

U.S. Coast yard, industrial supply, logistics and operational support

Anne Arundel Community College 1100 Public two-year collegeUS Postal Service 650 Incoming mail serviceCity of Annapolis Government 550 Government services

Private Sector EmployersEstimated # of Employees Product of Service

Northtop Grumman 7500 HDQT, Electronic Systems Sector Southwest Airlines 3200 Airline, East coast flight center

Anne Arundel Health System 2800 Hospital Baltimore Washington Medical Center 2650 Hospital Booz Allen Hamilton 2100 Information assurance & signals intelligence solutionsWalmart / Sam's Club 2056 Consumer goodsCSC 1829 Information technology services

Allegis Group 1500 HDQT, IT & engineering placement ARINC 1100 HDQT, aircraft & avionic telecommunication systemsGiant Food 1100 GroceriesLockheed Martin 925 Engineering services

Ciena 850HDQT, networking services & communications networking equipment

Verizon 844 TelecommunicationsSafeway 800 GroceriesTarget 775 Consumer GoodsMcDonald's 750 RestaurantsHome Depot 705 Home improvement supplies

AT&T Services 700 TelecommunicationsMarriott International 700 Hotels/ motelsSears 640 Cosnumer goods


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Johns Hopkins HealthCare 625 Medical ServicesShoppers Food Warehouse 625 GroceriesMaryland Jockey Club. Laurel Park 616 Thoroughbred horse racing Kohl's 564 Consumer goodsSource: AAEDC 2010

TABLE G: List of Major Employers

TABLE F: Map of Major Employers adjacent to the site


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D. Commuting PatternsEven though the unemployment rate in the Anne Arundel County is lower than in the Nations average

rate, many choose to reside in other regions and commute to the county via car, bus or railway. According to the Maryland Department of Labor, Licensing and Regulation, 41.9% of Anne Arundel

county workers reside in the county. 12.6% in Baltimore County, 8.8% in Baltimore City and 4.3% inMontgomery County. (TABLE H) The data covers private sector and state and local governmentemployment only; federal em ployment is excluded.

According to the same agency, 10% of all workers in the state of Maryland live in the Anne ArundelCounty. (TABLE I)

TABLE H: Where Anne Arundel County workers live

41.9%

12.6%8.8%

7.0%

5.2%

4.3%

3.0%

2.1%

1.9%

1.2%

11.9%

Workers in the Anne Arundel County WIA -- Where They Live

Anne Arundel

Baltimore County

Baltimore City

Prince George's

Howard

Montgomery

Harford

Queen Anne's

Carroll

Frederick

All Other


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TABLE I: Where do Maryland workers live

15.8%

12.5%

10.2%

10.0%

9.1%

5.0%

4.6%

4.2%

3.3%

2.5%22.9%

Workers in Maryland -- Where They Live

Baltimore County

Montgomery

Baltimore City

Prince George's

Anne Arundel

Howard

Harford

Frederick

Carroll

Washington

All Other


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B. Growth Trends

According to the same source, Anne Arundel County is to expect a total of 4,457 new households, with2,737 that will be looking for higher cost/quality housing.

Defined Market Area experiences its largest population increase (35.5%) in the 1990-2000 due to the job gains at Ft. Meade. In addition, an increase in the household demand of 44.6% in the 10 year period wasdouble of what the Anne Arundel County experienced. (TABLE 3)

Household numbers had slowed but not stopped during the 2000-2011 period due to the fall in the real

estate market, overall economy and other factors. (TABLE 5) Annual growth in the market area grew by 781 or 3.8% during 1990-2000 periods. During 2000-2011 population growth slowed but still remained at 422 or 1.5%.It is projected to slow down even further in the period of 2011-2016 to 342 or 1.1%.

(TABLE 4) in the next 5 years can be directly identified with the BRAC process at the Fort Meade.

TABLE 3: POPULATION

TABLE 4: PROJECTED GROWTH


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As a result of BRAC, Maryland Department of Planning expects a total of 28,176 newhouseholds broken down as follows: Fort Meade: 10,678 (49%), APG 14,159 (56%) and AAFB 474(1.9%). Maryland Department of Planning also projects the distribution of BRAC related households tomake up 18% or 4,457 in the Anne Arundel County.

According to the U.S Census of Population and Housing of 2000, about 15% of all Anne ArundelCountys dwelling units were constructed in the Market Area from 1976 to 1984. From 2000 -2009, Anne

Arundel County averaged at 2,118 building permits a year. Similarly to the nation, as the real estatemarket started to fall, number of permits started to decrease and in the 2008- 2009 went down to anaverage of 1074 permits- almost half of building permits granted in previous years. (TABLE 5) Anne

Arundel Countys market is mostly directed towards the single family detached housing permits;however, starting in 2000- the percentage of multifamily housing permits grew and in 2009 was at 29%of the total permits. (GRAPH 2)

TABLE 5: BUILDING PERMITS

GRAPH 2: BUILDING PERMITS RATIO


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TABLE 6 and GRAPH 4 below demonstrate that primary ownership residencies are single familydetached housing units making up 78% of all ownership housing demand in the county, and 68% in the Market

Area. Owners of multifamily housing units make up only 2.9% of all housing demand in the Market Area.

TABLE 6: OWNED HOUSING UNITS

GRAPH 4: OWNED HOUSING


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Multifamily units are more in demand in the rental housing. Over 50% of renter occupied householdsare multifamily units in the Market Area. Rental/ Owner ratio in both Anne Arundel County and the definedMarket Area are similar with one quarter of total housing units to be occupied by renters. In 2000, Market Areahad 6,817 renter occupied units that is 26.9% of the total housing market. In comparison, in 2000, Anne

Arundel County 43,749 equaling to 24.5% of renter occupied housing units. In 2011, total housing marketincreased, therefore a figure of 26.3% or 7,886 of renter occupied housing was recorded in the defined marketarea. In comparison, Anne Arundel County dropped to 24.3% or 46,770 rented occupied housing units.

Vacancy rates are much different. In the defined Village at Odenton Station Market Area, vacancy ratewas at 3% in the year of 2000, 4% in 2011, and is projected to be 4% in 2016 while in the Anne ArundelCounty is was at 14.8% in 2000, at 20.2% in 2011 and is projected to increase to 21%. According to theBureau of Labor Statistics, national average vacancy rate is at 7.9%. (TABLE 8, GRAPH 6)

TABLE 8: RENTER/ OWNER RATIO

GRAPH 6: RENTER/ OWNER RATIO


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C. Demographic Characteristics

While the distribution of age in the defined Village at Odenton Station Market Area is very similar to the Anne Arundel County, there are some trends that should be noted. The median age in the Market Area is 35years old. Anne Arundel Countys median age is 37 making up 15.8% of the whole countys population of 515,313. (TABLE 9, GRAPH 7.) Population of 21-34 makes up 17.6% (90,589) in the Anne Arundel County and19.9% (17,361) in the defined market area. Age of population that is more inclined to own housing rather thanrent is 35-54. In Anne Arundel County 30.3% (156,238) make up the 35-54 population. In the defined market

area 32.5% make up 28,306 households between the ages of 35- 54. In addition to potential renters agestatistics, the tables demonstrate that about 24% of the defined Market Areas popula tion is children under 18who live with their parents. Population over 65 is at a little over 8% in the Market Area in comparison to theCountys 12%.

TABLE 9: AGE DISTRIBUTION


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GRAPH 7: AGE DISTRIBUTION

TABLE 10 below compared Market Areas household type trends to the Anne Arundel Countys.Similarly to the Anne Arundel County, defined Market Area is dominated by married couples withoutchildren (28.3% - 8,316), followed by married with children (26.9% - 7,917) and living alone (20.5% -6,033).

TABLE 10: HOUSEHOLD TYPE


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GRAPH 8: HOUSEHOLD TYPE


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D. Income Characteristics

Graph demonstrates that the defined Market Areas income is higher than the countys income when itgoes above the range of $75-$99,9K a year. For example, 14.0% in the Market Area over 12.3% in the countymake between 100-124K a year. Overall 78.2% of the population residing in the Market Area are making over 50K a year. High income is mostly driven by the military associated employment at Fort Meade. Nearly 40%earn from 50k-100k a year in the defined Market Area.

GRAPH 9: HOUSEHOLD INCOME BY AREA


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GRAPH BORROWED FROM WIKIPEDIA.ORG


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V. Competitive Analysis

A. Area Housing Stock Characteristics

Over half (50.2%) of the Anne Arundel County renters live in a multi-family residential community. Morethan half (54%) of renters live in a multi-family community within the defined market area. Renter- to- owner ratio in both Anne Arundel County and the defined market area are similar- one quarter of total housing units isoccupied by renters.

Vacancy rates vary from county to market area. In the Village at Odenton Station market area, vacancyrate was at 3% in 2000, at 4% in 2011, and is projected to remain at 4% in 2016 in contrast to the Anne

Arundel Countys vacancy rate - 14.8% in 2000, 20.2% in 2011, and projected to increase to 21%. According tothe Bureau of Labor Statistics, national average vacancy rate is at 7.9%. See tables 2 and 3, graphs 2 and 3.

The rental stock characteristics, in the defined market area, are similar to those in the Anne ArundelCounty. According to the 2000 Census, in the Anne Arundel County,

77% of all owner- occupied housing is a single family detached unit at 104,818 units. Similarly, in thedefined market area, 67.5% of the homeowners prefer to live in a single family detached unit, followed by23.1% of single family attached units. Owners of multifamily housing units make up only 2.9% of all ownedhousing demand in the defined market area. See tables 1 and graph 1.

TABLE 1: OWNED HOUSING UNITS


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GRAPH 1: OWNED HOUSING

TABLE 2: RENTED HOUSING UNITS


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GRAPH 2: RENTED HOUSING

TABLE 3: RENTER/ OWNER RATIO


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GRAPH 3: RENTER/ OWNER RATIO

Based on the BRAC report, over half (53.5%) of new households will be looking for housing of higher cost/quality, over one -quarter (28.4%) will be looking for housing of middle cost/quality, and just under onefifth- (18.1%) for lower cost/quality housing. (GRAPH 4)

GRAPH 4: HOUSING DEMAND IN ANNE ARUNDEL COUNTY

According to the U.S Census of Population and Housing of 2000, about 15% of all Anne ArundelCountys dwelling units were constructed in the Market Area from 1976 to 1984. Almost 20% of all dwellingunits built since 1939 were developed between 1990- 1994 due to the previous BRAC agreement that drovedemand for new and improved housing to the defined market area. (GRAPH 5) From 2000-2009, Anne

Arundel County averaged at 2,118 building permits a year. Similarly to the nation, as the real estate marketstarted to fall, number of permits started to decrease. Between 2008 and 2009 number of permits went down to


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an average of 1,074 which is roughly a fifty percent decrease in building permits granted in comparison to theprevious years. (TABLE 4) Anne Arundel Countys market is mostly directed towards the single familydetached housing permits; however, starting in 2000- the percentage of multifamily housing permits grew andin 2009 it was at 29% of the total permits.

TABLE 4: BUILDING PERMITS

GRAPH 5: BUILDING PERMITS RATIO

According to the citi-data.com, estimated median house value in Anne Arundel County was 13% more

than the states average at $365,400 in 2009. Home value remained almost static since the recession in 2008when the value was almost 15% more. (GRAPH 6)


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wither on site, in the room or in building. Most units offer such standard amenities as dishwasher, microwaveand in-unit laundry with the exception of four communities. For example, Park Glen does not offer any of theamenities mentioned above, but trash. In contrast, Ashley apartments offer all amenities included in the priceof rent but the microwave.

Table 31 lists multifamily rental community amenities in the primary market area. Some communities donot offer any amenities from the list. For example, Scotts Manor, Crofton Village Apts, North Forest, Carlyle

Apartments and Keswick Park. Others offer as many as 7 amenities at a time with the most popular amenitisbeing clubhouse, fitness room, pool and playground. Riverscape @ Piney Orchard offers the following:clubhouse, fitness room, pool, hot tub, sauna, tennis court and business/ computer center. Camden Russettoffers clubhouse, fitness room, poo, playground, tennis court and business center. While offering none of theabove described amenities, Park Glen is the only community that offers a gated entry.


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VI. FINDINGS AND CONCLUSIONS

A. Overall Findings

Based on the conducted market study of land use, economical and demographical trends of both Anne Arundel county and the defined market area, the following conclusions can be drawn:

Most current development in the Anne Arundel County is due to the BRAC and NSA. A largenumber of potential residents are expected to arrive to and around the Fort Meade area. BRACwill not only bring employees to the area but also create employment opportunities for localresidents. Much of present local economics will be positively stimulated.

4 th strongest BRAC related development pressure with 4,457 after Cecil, Howard and BaltimoreCounties. BRAC is expected to make up 12.5% of all housing supply in 2009-2015. Over 90% of BRAC households are expected to locate within 45 minute commute to Fort Meade.

Situated across the street from one of the busiest railway stations on the Penn line- OdentonStation, Village at Odenton Station is a desired location for commuters. Many of the 2000 ridersthat board the train at the Odenton Station every day commute to the two major neighboringcities- Washington D.C and Baltimore MD. While suburban, defined market area offers an easy

access to culture, attractions and opportunities of city life making it a desired area for residence.Transit- oriented mixed-use development is new to the Anne Arundel County and particularly tothe defined market area. Appealing location of the subject site is backed by a series of infrastructure development projects to ease traffic, improve pedestrian and biker experience,enhance street appeal and add to the prosperity of local businesses. As the market studyshows, a large number of commuters are driving. Subject site is located minutes away from theInterstate 95- leading to Baltimore or Washington DC. It is also located by the Freeway 32leading towards Howard County and Route 50 that leads towards Annapolis, Bay Bridge andthe Eastern Shore. Subjects site offers a reasonable commuting distance to surroundingmarkets with easy access.

Construction of MD 175 and MD 198 underway to meet BRAC demand. Sidewalk and bicycle

access from Odenton Station will be constructed.Shuttle from Fort Meade base to the Odenton MARC station and other locations will be providedfor employees to reduce single occupant vehicles and reduce general vehicular congestion

41% of Anne Arundel county workers reside in the County (excluding federal employment)

Initial feasibility study had been done for a WMATA Green Line to Fort Meade

In summary, subject sites locat ion is desirable due to the BRAC development and a convenient accessto Washington DC and Baltimore via railway or a short driving commute.

Among other public amenities are retail stores. Subjects site is located minutes away from the Arundel Mills. Arundel Mills is a shopping center that offers entertainment, dining and shoppingwith the convenience of a drive. In addition, grocery and convenience stores are within thewalkable distance of under a mile. A number of medical clinics are just under a mile away- SethCameron, Johns Hopkins Community Physicians, NovaCare and Ferry Point INC.

There are several high ranking schools located in Odenton. Higher education includes theUniversity of Maryland that is located thirty miles away. A series of public libraries andrecreation facilities can also be found within the defined market area. Outdoor activities include,biking, numerous walking and running trails and a golf course.

Based on the market study, Village at Odenton Station sites surrounding areas pro vide a number of publicly available amenities


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Anne Arundel Countys unemployment rate has been below Nations average for over a decade.County is expected to gain over 10,000 jobs by the year 2013 and around 5,000 by the end of 2011.

BRAC related employment is around 30,000 jobs by 2013, about 60% of which are Fort Meadeservicing employment.

Recent job opportunities being high demand on housing.

Over a half of BRAC related new households will be looking for higher cost/ quality housing

Similar to the Countys 24.5%, primary market area projected number of renter - occupied unitsis 8,369 making up 26% of all housing market by 2016. Anne Arundel Countys residents prefer owning to renting at 76% of homeownership.

Majority of population is between the ages of 25 and 55

Defined Market Areas median income is $82,848 a year. Anne Arundel County medianhousehold income is $80,559. In comparison to the closest Baltimore county income of $65,646.Defined market area and specifically subjects site median income is in the high $80k a year.(see table below)


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Married couples with and without children make up 55% of all household types, followed byliving alone at 23%

High median income provides a healthy market demand for luxury apartments for single and marriedhousehold types.

Subjects site is one of the few mid -rise luxury mixed-use apartment complexes in the definedmarket area. Among competitors is Concord Park at Russett located to the west of the subjectsite. Overall there are 20 multifamily communities with average of 295 units per community.

The subjects site rental market is characterized by numerous public and private amenities thatmuch of competition does not offer. For example, the MARC railway station is located directly

across the street. Market areas rent distribution averages from $1,113 for a one bedroom/ one bathroom, $1,285

for a two bedroom/ two bathroom and $1,585 for a three bedroom/ two bathroom apartments.Upper tier and lower tier disparity is almost 90% for all three apartment types.

Pipeline was multi-family residential communities in the defined market area includes 729 unitswithin the next three years and 1,167 units within the next 3-5 years.

Southern Management Corporation is planning to develop Town center at Arundel Preservewith 242 luxury rental community, it is currently under construction and is scheduled to becompleted early 2012.

Dolben Co, Inc is planning a development at the Village at Odenton Station across from the

Odenton MARC station with 235 luxury apartments and retail. Construction is currentlyunderway and will be completed by the mid 2012.

Odenton Gateway LLC& Elms Street Development are planning to develop an 18 acre, 252residential apartment complex with a medical office and retail. Infrastructure work is set to beginsoon.

While competition for luxury apartments will exist in the defined market area with 729 units within thenext three years, given demand is high enough to fulfill supply. Given that land prices are unlikely todrastically change, in order to make land more affordable per housing unit- it is likely for the housingdensity to increase to fit the demand.

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C. Target Market

Similar to other real estate, location is a primary factor when selecting a temporary dwelling unit.Convenience of employment location, transportation, commute and other factors are particularlyimportant when selecting an apartment. For those renters that are looking to maximize convenienceand obtain affordability and comfort, apartment rental is probably the best option. Village at OdentonStation has a prime location across the street from the MARC Odenton Railway Station for commuters,and a walking distance away from the largest employer in the market area- Fort Meade.

The prime location on its own can define the subject site as a luxury mixed-use complex. Convenientaccess to many major highways, public and private amenities, Fort Meade and the Odenton RailwayStation make this location suitable for a wide range of existing and potential residents. Several grocerystores, restaurants, personal services, schools, hospitals and others are either a walk or a drive awayand serving both residents and visitors. Due to the lack of competition in the defined market area for mid-rise luxury mixed use luxury apartment complexes, Village at Odenton Station will be the primarychoice of residence for several target groups.

The upcoming employment expansion in the defined market area due to BRAC is expected toinfluence subjects si te greatly. Many potential residents are expected to be drawn from the relocationproject. Given current insufficient job market, it is expected that many employees who would retain their current job position would follow it to Maryland. Such migration will bring numerous potential residents

who will be looking for a higher end luxury mixed-use community living.Following household profiles can be expected to fulfill the Village at Odenton Station apartments.

Single Young Professionals, Including in Roommate Arrangements.Households within this target market will include primarily early career professionals in their mid-20s tomid-30s with incomes near the countywide median income. Suchhouseholds are typically not yet prepared to purchase a home, but have fairly highamounts of disposable income. Single young professionals tend to seek out acommunity that is somewhat prominent and which offers access to a range of amenities both on and off site. Singles would likely pursue one- or two-bedroom units,while roommates would likely prefer two- or three-bedroom floor plans.

Young Couples Without Children. [Village at Odenton Station] would appeal to young married or unmarried couples for the same reasons it would appeal to single young professionals. Disposableincome tends to be large with young couples, given the typical presence of two wage earners in thesehouseholds. Young couples would presumably prefer two- or possibly three-bedroom units.

Families with Young Children. The subject sites two - and three-bedroom units willbe spacious enough to accommodate families with young children (headed bycouples or single persons). As their children approach school age, these householdswould likely elect to purchase homes, thereby removing themselves from the rentalmarket.


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Documents

Village at Odenton Station Market Study