HomeMy WebLinkAboutExhibit 2Exhibit 2
KMA In -Lieu Fee Analysis
V_
ADVISORS IN:
REAL ESTATE
REDEVELOPMENT
AFFORDABLE HOUSING
ECONOMIC DEVELOPMENT
SAN FRANCISCO
A. JERRY KEYSER
TIMOTHYC. KELLY
KATE EARLE FUNK
DEW E M. KERN
ROBERT J. WETMORE
LOS ANGELES
CALVIN E. HOLLIS. II
KATHLEEN H. HEAD
JAMES A. RASE
PAUL C. ANDERSON
GREGORY D. SGO-HOO
KEVIN E. ENGSTROM
JULIE L. ROMEY
SAN DIEGO
GERALD M. TRIMBLE
PAUL C. MARRA
D
YEN
KEYSER MARSTON ASSOCIATES
ADVISORS IN PUBLIC /PRIVATE REAL ESTATE DEVELOPMENT
MEMORANDUM
To: Brandon Nichols, Planner
City of Newport Beach
From: Kathleen Head
Andrea Castro
Date: January 2, 2008
Subject: 1703 West Balboa Boulevard — Mello Act In -Lieu Fee
in an accompanying memorandum, Keyser Marston Associates, Inc. (KMA) determined
that it is not financially feasible for C. Frank Zavala (Developer) to fulfill the replacement
housing obligations imposed by Government Code Sections 65590 and 65590.1 (Mello
Act) within the proposed three single - family detached units to be developed at 1703
West Balboa Boulevard (Site). The purpose of the following memorandum is to assist
the City of Newport Beach (City) in establishing an in -lieu fee which could be charged to
the Developer to allow the City to fulfill the replacement housing obligations.
MELLO ACT OF 1982
Mello Act requirements apply to the demolition, conversion and construction of housing
within the California Coastal Zone. Specifically, the Mello Act requires that replacement
units be provided for all residential units that were occupied by very-low, low and
moderate income households, whether or not the units were affordable to the occupants.
The replacement housing obligations must be fulfilled within three years from the date
that the units are removed.
The Mello Act allows local governments to create a program that allows applicants for
residential conversion or demolition projects to pay a fee In lieu of providing the requisite
income restricted dwelling units on -site. However, this option is a right not an obligation,
and cities that enact such a program must then accept the responsibility for fulfilling the
Mello Act affordable housing obligations in an off -site location.
500 SOUTH GRAND AVENUE, SUITE 1480 D LOS ANGELES, CALIFORNIA 90071 ),PHONE 213 622 8095 m FAX 213 622 52 04
W W W,KEYSERMARSTON.COM
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To: Brandon Nichols, City of Newport Beach January 2, 2008
Subject: 1703 West Balboa Boulevard — Mello Act In -Lieu Fee Page 2
The Site is currently improved with a 10 -unit apartment project; eight of the units are
occupied by very-low, low or moderate income households. These eight units all
generate Mello Act replacement housing obligations. The income levels for the eight
tenants are as follows:
Two moderate income households;
2. Three low income households; and
3. Three very-low income households.
METHODOLOGY
To establish an in -lieu fee that provides sufficient revenue to fulfill the Mello Act
replacement housing obligations, it is necessary to quantify the cost associated with
fulfilling the affordable housing requirements within a project located within three miles of
Coastal Zone. For the purpose of this analysis, KMA assumed that the City would
choose to fulfill the replacement housing obligation by assisting a developer in the
acquisition and substantial rehabilitation of an existing apartment project.'
The methodology used in the KMA in -lieu fee analysis can be described as follows:
KMA created prototype apartment units based on the income restrictions
required to fulfill the Mello Act replacement housing obligations.
2. KMA estimated the "affordability gap" based on the following assumptions:
a. Market rents were obtained from existing apartment complexes in
Newport Beach.from www.move.com and www.rent.com.
b. The maximum affordable rents were calculated for moderate, low and
very-low income households based on the household income information
distributed by the California Housing and Community Development
Department (HCD), and the affordability standards imposed by California
Health and Safety Code (Code) Section 50053.2
'The Mello Act allows for replacement housing units to be newly constructed or to be
substantially rehabilitated existing units.
2 The definitions are provided in Code Section 50093 for moderate income, 50079.5 for low
income and 50105 for very -low income.
07110 .NSAOiKA00:yW
14091,001.019 %1 q
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To: Brandon Nichols, City of Newport Beach January 2, 2008
Subject: 1703 West Balboa Boulevard — Mello Act In -Lieu Fee Page 3
C. The affordability gap for the one - bedroom units was calculated by
comparing the market rate rent to the maximum affordable rent. The
difference was capitalized at the rate applied to current apartment sales
to estimate the value loss created by the imposition of the required
income and affordability standards.
3. The Mello Act allows existing units to be used to fulfill the replacement housing
obligations if substantial rehabilitation is performed .3 Recognizing that
purchasers of typical market rate apartment buildings are unlikely to perform
substantial rehabilitation, KMA added the rehabilitation cost to the affordability
gap on a dollar- for - dollar basis.
4. The total of the affordability gap plus the estimated rehabilitation cost represents
the financial gap per unit in each income category. This gap is then multiplied
times the number of units required in each income restriction category to arrive at
the in -lieu fee that would have to be charged by the City to produce sufficient
revenues to fulfill the Mello Act replacement housing obligation.
5. The City may elect to set the in -lieu fee at less than the amount necessary to
fulfill the Mello Act replacement housing obligation. To estimate the amount of
the in -lieu fee that the Developer could feasibly pay, KMA estimated the value of
the Site under its current use as a market rate apartment complex and then
compared that to the property value supported by the Developer's proposed
three -unit project.
The in -lieu fee and property value analyses are located at the end of the memorandum
as follows:
Appendix A - In -Lieu Fee Calculation
Table 1: Affordable Rent Calculations
Table 2: Rent and Value Comparison
Table 3: Supportable In -Lieu Fee Calculation
Appendix B — Apartment and Proposed Project Values
Table 1: Apartment Net Operating Income / Property Value
Table 2: Proposed Project Estimated Construction Costs
Table 3: Proposed Project Revenue / Property Value
Appendix C — Comparable Sales Information
Table 1: Apartment Rental Rate Comparables
Table 2: Single-Family Detached Home Sale Comparables
3 Code Section 33413 defines "substantial rehabilitation" as at least 25% of the project's after
rehabilitation value.
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To: Brandon Nichols, City of Newport Beach January 2, 2008
Subject: 1703 West Balboa Boulevard - Mello Act In -Lieu Fee Page 4
Market Rate Rents
Based on the KMA survey, the following assumptions were applied to the market rate
units:'
1. The unit size is set at 835 square feet for a one - bedroom unit.
2. The monthly rent is set at $2,100.
3. The monthly rent equates to $2.51 per square foot of building area.
Affordable Housing Rent Calculations
The proposed income and affordability restrictions for the eight replacement units are
comprised of moderate, low and very-low income restricted units. The affordable
housing cost calculations are presented in Appendix A - Table 1, and the required
calculation methodology is described as follows:
The household incomes must be based on benchmark household sizes of two
persons for one- bedroom units.
2. The household income is set at 110% of the Orange County median income
(Median) for moderate income units, 60% of the Median for low income units and
50% of Median for very-low income units.
3. Thirty- percent (30 %) of the defined household income is allocated to housing
related expenses.
4. The maximum allowable rent is adjusted to reflect that the tenants will be
required to pay for interior utility costs. Based on the allowances provided by the
Orange County Housing Authority, the utilities are estimated at $38 per month for
one - bedroom units 5
The resulting maximum allowable 2007 rents for one - bedroom units under the defined
income categories are as follows:
Moderate Income $1,695
Low Income $907
Ve Low Income $750
See Appendix C - Table 1.
5 The utility allowance accounts for gas and electricity expenses.
0711025.N&WHtAM. -Od
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To: Brandon Nichols, City of Newport Beach January 2, 2008
Subject: 1703 West Balboa Boulevard — Mello Act In -Lieu Fee Page 5
Rent and Value Comparison
As shown in Appendix A - Table 2, a rent and value comparison of the prototype
apartment units is based on the following assumptions:
The one - bedroom unit size is set at 835 square feet.
2. The market rate rents for the one - bedroom unit is set at $2,100. The income
restricted rents are based on the amounts calculated in the previous section of
this memorandum.
3. The gross rental income is reduced by a 5% vacancy and collection allowance.
4. The operating expenses are estimated as follows:
a. The general operating expenses are estimated at $4,000 per unit.
b. A 5% allowance is provided for a property management fee.
C. The property tax expense estimates vary between the market rate and
income restricted units. The tax expense is equal to the value supported
by the project at a 1.1 % property tax rate.
d. A $200 per unit per year allowance is provided to fund a capital reserve
account.
5. The net operating income (NOI) for both the market rate and income restricted
units was capitalized at a 3.5% rate to estimate the relative values supported by
market and income restricted units.e The difference represents the affordability
gap created by the replacement housing obligation.
6. The cost to substantially rehabilitate the units is set at 25% of the after
rehabilitation value of the market rate apartment units.
6 The capitalization rate assumption was derived from a KMA review of recent apartment project
sales.
071102& 1 B:KHH:ADC.gW
18081,001,010
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To: Brandon Nichols, City of Newport Beach January 2, 2008
Subject: 1703 West Balboa Boulevard — Mello Act In -lieu Fee Page 6
Appendix A - Table 3 presents the in -lieu fee calculations. As can be seen in Table 4,
the total financial gap associated with the eight replacement units is estimated at $3.05
million.
Alternative In -lieu Fee / Property Value
As shown in Appendix B - Table 1, to estimate the value of the 10 -unit market rate
apartment complex, KMA utilized the rent roll provided by the Developer, applied
industry standard operating expenses for rental projects and capitalized the project's
estimated NO] at a 5% capitalization rate. Based on the assumptions listed above, KMA
estimated the value of the property under its current use at $2.1 million.
In Appendix B — Table 2, KMA estimated the construction costs for the proposed project
at $3.97 million based on construction cost estimates provided by the Developer. As
shown in Appendix B — Table 3, KMA projected the market sales revenue for the three
single - family detached units at $6.21 million and the threshold Developer profit at 10% of
sales revenue, or $621,000. When the projected sales revenues are reduced by the
estimated construction costs and threshold profit, the value of the property under the
Developer's proposed development is approximately $ 1.62 million.
As shown in the following table, the value of the property as a 10 -unit market rate
apartment complex is greater than the value of the property as a three single- family
detached homes.
Property Value as Single- Family Detached Homes $1,621,000
Property Value as 10 -Unit Apartment Complex _$2,100,000
Difference ($479,000)
Given that the value of the Site as a 10 -unit Apartment Complex is greater than the
value of the Site supported by the Developer's proposed project, KMA concludes that
the Developer's proposed project does not represent the highest and best use of the
Site, in other words, the analysis indicates that the Developer would achieve a greater
financial return from leaving the property In its current state rather than developing the
currently proposed project.
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To: Brandon Nichols, City of Newport Beach January 2, 2008
Subject: 1703 West Balboa Boulevard — Mello Act In -Lieu Fee Page 7
CONCLUSIONS
The KMA analysis estimates the effective cost to provide eight replacement units in an
off -site location at $3.05 million, or approximately $382,000 per unit. However, the City
should consider the following factors in establishing an in -lieu fee payment amount for
the Developer of the proposed 1703 West Balboa Boulevard project:
If the Developer is relieved of the replacement housing obligation, the City must
accept the obligation for fulfilling the requirement within a three -year period.
2. If the in -lieu fee amount is set at less than $3.05 million, then it is likely that the
City will ultimately have to contribute public funds to bridge a portion of the gap
associated with creating the eight replacement units.
3. The KMA financial analysis indicates that the currently proposed project
generates a lower return to the Developer than leaving the existing apartment
development in place. Therefore, it can be concluded that the Developer cannot
feasibly make any in -lieu fee payment to fulfill the replacement housing obligation
generated by the proposed demolition of the existing apartment complex.
Attachments
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APPENDIX A
MELLO ACT IN -LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 1703_Nlboa_ln_Ueu Fee_4nalysis_i 02 08.xis; App A; adc
3b
APPENDIX A • TABLE 1
AFFORDABLE RENT CALCULATIONS - ONE - BEDROOM UNITS
MELLO ACT IN-LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH CALIFORNIA
Moderate Low Income Very-Low
Income Units Units Income Units
I. Household Income
2007 Orange County Median Income $63,000 $63,000 $63,000
Household Income as % of Median 110% 60% 50%
Household Income for Rent Setting $69,300 $37,800 $31,500
Income Allotted to Housing@ 30% of Income $20,790 $11,340 $9,450
III. Maximum Monthly Rents
Maximum Monthly Housing Cost $1,733 $945 $788
(Less) Monthly Utility Allowance (38) (38) (38)
Maximum Monthly Rents $1695 $907 AMOJ
' Utility allowances are based on current estimated provided by the Orange County Housing Authority (101112006).
Prepared by: Keyser Marston Associates, Inc.
File name: 1703_Baboe In Lieu_Fee_Analysis_7_02_08.As; Table 1; ado
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APPENDIX A - TABLE 2
RENT AND VALUE COMPARISON
MELLO ACT IN -LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH CALIFORNIA
1. Monthly Rent'
II. Effective Gross Income
Annual Rental Income
(Less) Vacancy. Allowance @ 5% Income
Effective Gross Income
III. Oceratina Exnerrses
General Operating Expenses
Property Management Q 5% EGI
Property Taxes @ 1 °% Value
Reserves
Total Operating Expenses
IV. Net Operating Income
V. Value Calculation
Net Operating Income
Capitalization Rate
$4,000 $4,000
1,200 970
4,400
Moderate
Market Rents
income Units
$2,100
$1,095
$25,200
$20,340
(1,300)
$10,770
$23,900
$19,340
$4,000 $4,000
1,200 970
4,400
3,400
200
200
$9,800
$8,570
$14,100
$10,770
$14,100
$10,770
3.50%
3.50°%
Low Income Very-Low
Units income Units
$907 $750
$10,884 $9,000
(500) (500)
$10,384 $8,500
$4,000
$4,000
520
430
1,300
900
200
200
$8,020
$5,530
$4,354
$2,970
$4,354 $2,970
3.50% 3.50%
VI. Value Per Unit $402,900 $307,700 $124,700 $84,900
VII. Market Value+ Rehabilitation Cost' $537,200
' See TABLE 1 for rent comparabies analysis. The unit size Is set at 835 square feet.
2 Existing units must be substantially rehabilitated to qualify for replacement housing credit under the Mello Act. Substantial
rehabilitation is defined as casts totaling at least 25% of the unifs after rehabilitation value.
Prepared by: Keyser Marston Associates, Inc.
File name: 1703_Balboa ln„ } ieu_Fee- Analysis 1 02 08.xls; Tables 2 & 3; adc
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APPENDIX A - TABLE 3
SUPPORTABLE IN -LIEU FEE CALCULATION
MELLO ACT INAJEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH CALIFORNIA
I. Financial Gap Calculations
Per Unit Cost Including Rehabilitation
(Less) Value Supported by Affordable Unit
Moderate Low Income Very-Low
Income Units Units Income Units
$537,200 $537,200 $537,200
{307,700) (124,700) (84,900)
Financial Ga Per
It $229,500 $412,600 $469,190J
Prepared by: Keyser Marston Associates, Inc,
File name: 1703_Balboa_in_Lieu_Fee Analysis_1 p2 08.xls: Tables 2 S 3; ado
55
Number of
Financial Gap
Affordability
11. In -lieu Fee Calculations
Units
Per Unit
Gap
Moderate Income
2
$228,500
$459,000
Low -Income
3
$412,500
$1,237,500
Very-low Income
3
$452,300
$1,358,900
111. ITotal In -Lieu Fee
8
$3,053,400
Prepared by: Keyser Marston Associates, Inc,
File name: 1703_Balboa_in_Lieu_Fee Analysis_1 p2 08.xls: Tables 2 S 3; ado
55
APPENDIX S
MELLO ACT IN LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 1703 Balbca_Apt_SUp Fee_1_02_138.xls; App S; ado
�lk
APPENDIX B - TABLE 1
NET OPERATING INCOME / PROPERTY VALUE
APARTMENT COMPLEX - 10 MARKET RATE UNITS
MELLO ACT IN LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH CALIFORNIA
Income'
A. Market Rate Units
Unit 1 - Studio - 484 SF
Unit 2 - Studio - 396 SF
Unit 3 - Studio - 440 SF
Unit 4 - Studio - 550 SF
Unit 5 -1 Bdrm - 514 SF
Unit 6 - 1 Bdrm - 572 SF
Unit 7 -1 Bdrm - 638 SF
Unit 8 - 4Bdrm - 2,165 SF 2
Unit 9 - 28drm - 784 SF 2
Unit 10 - 1 Bdrm - 644 SF
LaundryiMiscellaneous Income 3
B. Gross Income
(Less) Vacancy and Collection 3
Effective Gross Income
II. Operating Expenses
General Operating Expenses°
Property Taxes s
Reserves
Total Operating Expenses
1 Unit
$1,200 /Monti!
$14,400
1 Unit
$800 !Month
9,600
1 Unity
$1,200 /Month
14,400
1 Unit @
$1,300 /Month
15,600
1 Unit @
$1,000 /Month
12,000
1 Unit@
$1,040 /Month
12,500
1 Unity
$1,300 /Month
15,600
1 Unit
$4,520 /Month
54,200
1 Unit @
$1,840 /Month
22,100
1 Unit @
$1,500 /Month
18,000
10 Units @ $10.00 /UnlYMonth _ 1,200
$189,600
5.0% Gross Income (91WO)
$180,100
10 Units @ $5,000 /Unit $50,000
10 Units @ $2,310 /Unit 23,100
10 Units @ $200 /Unit 2,000
($75,100)
ill. Stabil "rzed Net O rating Income $105 000
N. Property Value
Net Operating Income
Capitalization Rate
$105,000
5.0%
V. jProperty Value of Apartment Complex $2,100,000
I Based on 2007 rental income derived from rent roll provided by the Developer.
2 Estimated rents assume $2.35/Sf for 2 -Bdrm unit and $2.09/Sf for 4-Bdrm unit. The 4-Bdrm rent reflects a 5% decrease of the
average price per square foot rent of a 3-Bdrm unit. (see Appendix C - Table 1)
3 Based on Industry standards for similar product type.
4 Includes cost related to administration, maintenance, utilities, insurance and security costs.
5 Based on a 5% capitalization rate and a 1.10% tax rate.
Prepared by: Keyser Marston AssocWes, Inc.
He Name: 1703_8alboa_Ap Sup F®®_1_02_OB.As; App a - Table 1; ado
APPENDIX B - TABLE 2
ESTIMATED CONSTRUCTION COSTS
3 SINGLE FAMILY DETACHED UNITS
MELLO ACT IN LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH, CALIFORNIA
I. Land Related+ Infrastructure Costs
Demolition
Off -Site Improvements
Total Land Related + Infrastructure Costs
It. Direct Costa,
On -Site Improvements
Building Shell
Total Direct Costs
III. Indirect Costa
Architecture, Engineering & Consulting
Public Permits & Fees 2
Taxes, Legal & Accounting
Insurance
Marketing/Leasing
Residential Marketing
Residential Models
Developer Fee 3
Soft Cost Contingency Allowance
Total Indirect Costs
IV. FinancirKi Clostng Costs
Interest & Loan Origination Fees°
Resid Closing, Comm & Warranties s
Total Financing/Closing Costs
7,668 Sf Land
$24
/Sf
9,000 $f GBA
$299
1Sf
9,000 Sf GBA
$319
/Sf
6.00/6 Direct Costs
3 Units
$40,000
/Unit
2.0% Direct Costs
3 Units
$20,000
/Unit
3 Units
$2,000
/Unit
1 Models
$15,000
/Model
3% Revenues
6% Other indirect Costs
70.0% Financed
3.6% Residential Revenues
$51,000
45,000
$96,000
$181,OOD
2,687 000
$172,000
120,000
57,000
60,000
6,000
15,000
186,000
31,000
$134.000
T 223,000
$2,868,000
$647,000
$357,000
V. I Total Construction Costs 9,000 Sf GBA $441 /Sf $3,968000
Based on Developer's estimates. costs assume Type V with Attached Garages, a 19% contractors/contingency allowance;
and assumes no prevailing wage requirements are imposed.
2 Based on Developer's estimates.
3 See APPENDIX B - TABLE 3 for the sales revenue estimate.
4 A 7.0% interest cost for debt and equity; an 12 month construction period; a 1 univmonth absorption period; 50% of the units
are presold and close during first month after completion; and 2.0 points for loan origination fees.
3 See APPENDIX B - TABLE 3 for sales revenue estimate. Assumes 2.0% and 1.5% of residential sales revenues for
commissions and closing costs, respectively. Also includes $2,000/unit for warranties.
Prepared by: Keyser Marston Associates, Inc.
File name: 1703_Balboa,Apt_Sup Fee_1 _02_08.xls; App B - Table 2 & 3;adc
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APPENDIX B - TABLE 3
REVENUE PROJECTIONS I PROPERTY VALUE
3 SINGLE FAMILY DETACHED UNITS
MELLO ACT IN LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH CALIFORNIA
Residential Sales Revenues'
Plan 1 - 3 -Bdrms - 3,000 Sf - SFD
3 Units $2,070,000 /Unit
$6,210,000
Total Sales Revenues 3 /Units $2,0711,000 (Unit $6,210,000
II. DeveloomentCosts
Total Construction Costs
Threshold Developer Profit
Total Development Costs
See APPENDIX B - TABLE 2 $3,968,000
10.0% Sales Revenue 621,000
$4,559,000
Property Value as Single Family Detached Units $1,621000
Ill. Prooeriv Valuo Comnadson
Properly Value as Single Family Detached Units $1,621,000
Property Value as Apartment Complex See APPENDIX B - TABLE 1 (2100,000)
Property Value Difference $479,0011
Estimated sales price of $690 18f based on median per square toot sales price for 3- bedroom, 3.5 bath single family detached
homes (see Appendix C - Table 2).
Prepared by: Keyser Marston Associates, Inc.
File name: 17W_8alboa_A Sup Fee_1_02_W.xis; App B - Table 2 & 3;adc
31
APPENDIX C
MELLO ACT IN LIEU FEE ANALYSIS
1703 WEST BALBOA BOULEVARD
NEWPORT BEACH, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
Pile name: 1703 Baiboa_Comps_t_02_08.)ds; App C (ILF); jtu
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APPENDIX C - TABLE 1
APARTMENT RENTAL RATE COMPARABLE$
MELLO ACT IN LIEU FEE ANALYSIS
17D3 WEST BALBOA BOULEVARD
NEWPORT BEACH, CALIFORNIA
Year
Coronado at Newport North
2000
732
0/1
Built/
Total Unit
Base
880 Irvine Avenue
Name 8: Address Renovated
Units Type
Rent
SF I Unit
$ I SF
$1.90
1 Coronado at Newport South 1968
715 0/1
1,099
405
$2.71
170016th Street
0/1
1,154
405
$2.85
1971
011
1,164
460
$2.53
$2.88
1/1
1,199
665
$1.80
1/1
1/1
1,369
750
$1.83
111
1,369
675
$2.03
767
212
1,679
978
$1.72
212
1,739
1,002
$1.74
2/2
1,749
989
$1.77
1,896
212
1,944
1,085
$1.79
2
Coronado at Newport North
2000
732
0/1
1,199
406
$2.95
880 Irvine Avenue
111
1,249
659
$1.90
2/2
1,649
951
$1.73
3
Park Newport Apartments
1971
1306
0/1
1,475
513
$2.88
One Park Newport Drive -
1/1
1,675
720
$2.33
1/1
1,645
767
$2.14
2/2
1,815
1,026
$1.77
2/2
1,896
1,201
$1.58
2/2
2,085
1,224
$1.70
30
2,566
1,518
$1.69
4
Newport Marina Apartments
1997
64
1/1
1,635
650
$2.52
919 Bayside Drive
1/1
2,610
1,100
$2.37
2/2
2,370
1,220
$1.94
2/2
4,215
1,800
$2.34
5
Newport Bluffs
1999
1052
0/1
1,665
549
$3.03
100vilaggio
1/1
1,750
626
$2.80
1/1
1,790
683
$2.62
1/1
1,855
689
$2.69
1/1
1,890
792
$2.39
1/1
1,970
793
$2.48
1/1
2,005
936
$2.14
1/1
2,025
799
$2.53
111
2,300
1,045
$2.20
112
2,575
1,152
$224
212
2,215
945
$2.34
212
2,230
957
$2.33
2/2
2,240
1,081
$2.07
212
2,320
1,079
$2.15
212
2,360
1,119
$2.11
212
2,365
1,067
$2.22
Prepared by: Keyser Marston Assoolates
File name: 1703_Balboa_Comps_1 02_08.xls; App C - Table 1; #u
pbs .
APPENDIX C • TABLE 1
APARTMENT RENTAL RATE COMPARABLES
MELLO ACT IN LIEU FEE ANALYSIS
1103 WEST BALBOA BOULEVARD
NEWPORT BEACH, CALIFORNIA
Prepared by: Keyser Marston Associates
File name: 1703_Ba1boa_Comps_7 02 08.x16; App C -Table 1; Au
%AD
Year
Built/
Total Unit
Base
Name & Address
Renovated
Units Type
Rent
SF 1 Unit
$ I SF
2/2
2,460
1,159
$2.12
212
2,515
1,189
$2.12
212
2,550
1,161
$2.20
212
2,640
1,169
$2.26
212
21645
1,103
$2.40
212
2,760
1,233
$2.24
312
2,950
1,336
$2.21
3/2.5
3,150
1,317
$2.39
3/2.5
3,200
1,386
$2.31
312.6
3,545
1,395
$2.54
312.5
3,665
1,354
$2.71
3/2.5
3,665
1,474
$2.49
6 Promontory Point Villa Apartments
2004
520 1/1
2,475
760
$3.26
200 Promontory Drive West
111
2,490
9D0
$2.77
111
2,740
900
$3.04
1/1
2,385
780
$3.06
1/1
2,440
870
$2.80
1/1
2,615
870
$3.01
111
2,215
775
$2.86
111
2,335
775
$3.01
111
3,140
1,050
$2.99
1/1
2,265
750
$3.02
111
2,290
850
$2.69
1/1
2,465
$50
-$2.90
2/2
2,915
1110
$2.63
212
3,015
1,110
$2.72
212
2,585
1,100
$2.35
212
3,260
1,100
$2.96
212
2,790
1,100
$2.54
212
3,265
1,100
$2.97
2/2
3,580
1,490
$2.40
212
4,320
1,490
$2.90
2/2
2,340
1,065
$2,20
212
2,415
1,065
$2.27
212
2,510
1,080
$2.32
2/2
2,710
1,080
$2.61
212
2,725
1,120
$2.43
2/2
2,960
1,120
$2.64
212
3,070
1,150
$2.67
212
3,395
1,150
$2.95
2/2
3,075
1,185
$2.59
212
3,425
1,185
$2.89
212
3,235
1,185
$2.73
212
3,610
1,185
$3.05
Prepared by: Keyser Marston Associates
File name: 1703_Ba1boa_Comps_7 02 08.x16; App C -Table 1; Au
%AD
APPENDIX C - TABLE 1
APARTMENT RENTAL RATE COMPARABLES
Sample
Average
Min.
Max.
Avg.
Avg.
MELLO ACT IN LIEU FEE ANALYSIS
Size
Unit Size
Rent
Rent
Rent
$1 Sf
1703 WEST BALBOA BOULEVARD
6
456
1,099
1,665
1,293
$2.83
NEWPORT BEACH, CALIFORNIA
36
835
1,199
3,140
2,099
$2.51
2- Bedroom Unite
56
1,173
1,649
5,765
2,774
$2.35
3- Bedroom Units
Year
1,384
2,375
3,665
3,028
$2.20
Built/
Total
Unit
Base
Name & Address Renovated
Units
Type
Rent
SF / Unit
$ / SF
2/2
3,990
1,425
$2.80
212
4,540
1,425
$3.19
2/2
2,690
1,060
$2.54
2/2
2,905
1.060
$2.74
2/2
3,055
1,060
$2.88
212
3,415
1,130
$3.02
7 Baywood, Bayport, & Bayview
no
no
1/1
1,590
775
$2.05
1 Baywood Dr.
1/1
1,645
790
$2,08
2/2
1,870
1,075
$1.74
2/2
2,505
1,355
$1.85
3/2
2,375
1,285
$1.85
312
2,785
1,525
$1.83
8 Mariner Square
1244 Irvine Ave.
no
no
1/1
1,835
850
$2.16
1/1
1,880
850
$2.21
2/2
2,260
1,135
$1.99
2/2
2,500
1,280
$1.95
3/2
2,525
1,160
$2.18
3/2
2,610
1,160
$2.25
9 Fairway at Big Canyon
1972
74
111
2,100
1,080
$1.94
481/2 Pine Valley Ln.
212
2,600
1,480
$1.78
2/2
2,700
1,470
$1.84
3/2
3,300
1,700
$1.94
10 The Colony at Fashion Island
no
no
1/1
2,605
1,008
$2.58
5100 Colony Plaza
1/1
3,140
1,087
$2.89
2/2
2,910
1,273
$2.29
212
5,765
1,546
$3.73
Source: Move.rom, Rent.com 11/05/07
Prepared by: Keyser Marston Associates
File name: 1703_Balboa_,Compe_1_02 08ads; App C - Table 1; Itu
A�
Sample
Average
Min.
Max.
Avg.
Avg.
Size
Unit Size
Rent
Rent
Rent
$1 Sf
0- Bedroom Units
6
456
1,099
1,665
1,293
$2.83
143edroom Units
36
835
1,199
3,140
2,099
$2.51
2- Bedroom Unite
56
1,173
1,649
5,765
2,774
$2.35
3- Bedroom Units
12
1,384
2,375
3,665
3,028
$2.20
Source: Move.rom, Rent.com 11/05/07
Prepared by: Keyser Marston Associates
File name: 1703_Balboa_,Compe_1_02 08ads; App C - Table 1; Itu
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