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Page 9 <br />Prepared for: City of Eugene <br />Prepared by: PNW Economics, LLC <br />Market & Financial Analysis of Gordon Lofts MUPTE Program Application <br />Table 5 provides the resulting, effective gross monthly rent and rent per-square-foot with Amenity <br />Based Income unit premiums factored in. The effect is a 26% increase in unit rents above what is <br />documented in the application. <br /> <br />Table 5 – Gordon Lofts Apartments Effective Total Rents with Amenity Based Income Assumption <br /> <br />Table 6 provides a comparison of true, effective rents at Gordon Lofts apartments with rents at its two <br />most comparable and competitive existing projects, First on Broadway and Park Place. <br />• The Gordon Lofts gross monthly rent premium over First on Broadway, the current market <br />leader, grows from 10% to 39% on average with a remarkable 57% gross rent premium over <br />the First on Broadway Two-bedroom units. <br />• The Gordon Lofts gross monthly rent premium over Park Place grows from 20% to 51% on <br />average with Two-bedroom total effective rents at Gordon Lofts charging more than twice the <br />rent as Park Place. <br />Table 6 – Gordon Lofts Apartments Effective Gross Rents with Amenity Based Income Competitive Position <br /> <br />Finally, Table 7 provides a comparison of Gordon Lofts total effective rents per-square-foot with its <br />competitive peer group. <br />• Gordon Lofts becomes the only project in downtown, and potentially city-wide that is not <br />designed as college student housing, to earn above $3.00 per square foot on average. <br />• Gordon Lofts earns a rent per-square-foot premium of 28% compared to First on Broadway, <br />up from 1% with documented average rents alone. <br />• Compared to Park Place, Gordon Lofts’ total effective rent per-square-foot earns a 57% <br />average premium, up from 24% with documented project rents alone. <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 $1,475 $3.15 <br />One bedroom 53 42%642 $2,029 $3.16 <br />Two bedroom 5 4%1,171 $3,518 $3.00 <br />Subtotals/Averages 127 100% 568 $1,787 $3.14 <br />First on Park First on Park <br />Unit Type Proposed Broadway Place Broadway Place <br />Studio $1,475 $1,035 $938 43%57% <br />One bedroom $2,029 $1,573 $1,200 29%69% <br />Two bedroom $3,518 $2,245 $1,750 57%101% <br />Subtotals/Averages $1,787 $1,285 $1,182 39%51% <br />Monthly Rent Subject Gross Rent Premium vs.: <br />October 17, 2018, Work Session – Item 2