Opportunity Zone Project: Kerrville, Texas
Sanjana Bysani, Matthew Florence, Joe Holmes, Clint McClellen, Tyler Retzloff
Kerrville, Texas
What is the Opportunity Zone?
Project proposal: Active living community with on site medical district
What is an active living community with on site medical district?
An active living senior centre consisting of single family units, condominiums, and assisted living multifamily structures along with a medical district which includes facilities for first emergency responses and other activities such as physiotherapy, clinical tests, wellness gym, etc.
Property Productivity Analysis
•Focuses on product identification.
Determined by 3 characteristics:
•Physical attributes
•Legal attributes
•Locational / Urban growth attributes.
Delineate the Market
•User group identification for the property productivity.
Population in census tract : 5623
50+ years population in census tract : 2294
•Market segmentation on property type:
•Commercial: Medical district
•Residential: Active living
•Industrial: Medical equipments / instruments
•Retail
•Office
Demand Analysis
The opportunity zone within Kerrville lacks senior style residencies. It includes three tapestry household groups from ESRI.
Implementing an active senior living community co-located with a medical services branch in the opportunity zone would offer a nice transition for those coming from the Midlife Constants & Small Town Simplicity’s groups.
Demand Analysis
10-year average multi-family absorption in units
10-year average office net absorption in SF
Supply Analysis
Existing stock
Office 2013-2018
Multi family 2013-2018
Market Supply
The dramatic drop in the average months on the market when the new square footage of office space was available for lease indicates the presence of rapid consumption of this new office space.
Supply Analysis
$49,831,154
10,036
$4,965.24
Average spent
on healthcare
# of households
Spent on healthcare in 2018
To put this into perspective….
$26,479,961 was spent on recreation/entertainment in Kerrville
$27,903,544 was spent on dining outside the home in Kerrville
Market Condition Analysis
Unemployment:
Kerrville = 3.7%
National = 5.2%
Vacancy: 4.1%
Median Home Costs: $157k
Rental Rates: $794/month per person
Household Income: $38k
Market Condition Analysis:
Multi-Family:
Office:
Subject Marketability Analysis
Office Submarket Capture Rate Highlights:
Total Buildings = 90
Vacant - 3% = 20.9k SF
Leased - 97% = ~696k SF
Sources
ESRI - Business Analyst and Community Analyst
Social Explorer
CoStar
USGS Soil Survey
Google Earth