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Page 4 <br />Prepared for: City of Eugene <br />Prepared by: PNW Economics, LLC <br />Market & Financial Analysis of Gordon Lofts MUPTE Program Application <br />• Rents per square foot at the project are expected to average $2.49 monthly given the mix of <br />unit types and sizes. Rents per foot range from $2.35 monthly for Two-bedroom units and as <br />high as $2.51 monthly for One-bedroom units. <br /> <br />Project Apartment Mix Conclusions <br />• Given available information, emphasis of the project on smaller, urban units is appropriate <br />given the prevalence of smaller households usually without children in a downtown setting, <br />whether professionals earlier in their careers or later in their careers. <br />• Gross rents appear to scale upward appropriately as unit sizes get larger, though comparison <br />to prevailing downtown market rents in the next section will provide ultimate context. <br />• In PNW Economics’ experience, the smaller the apartment unit, the higher the rents per <br />square foot. Therefore, we find that either Studio units are potentially under priced relative to <br />One-bedroom units, or One-bedroom units are potentially overpriced relative to Studio units. <br /> <br />Table 1 – Gordon Lofts Apartment Unit Mix, Average Unit Size, and Average Rent Details <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Unit Mix Average Unit Monthly Rent per <br />Unit Type Units Percentage Size (Sq. Ft.)Rent Square Foot <br />Studio 69 54%468 $1,171 $2.50 <br />One bedroom 53 42%642 $1,612 $2.51 <br />Two bedroom 5 4%1,171 $2,756 $2.35 <br />Subtotals/Averages 127 100%568 $1,417 $2.49 <br />October 17, 2018, Work Session – Item 2