1. automotive and vehicles
2. campers and rvs

Tall ahassee , FL
Multi-Family Market Summary: Spring 2015
TALLAHASSEE
Contents
Introduction
Introduction2
Market Commentary
3
Economic Overview
4
Sales Transactions
5
Development Pipeline
7
Why Choose Capstone?
8
Legacy Suites
Arbor Landing at Lake Jackson
CAPSTONE APARTMENT PARTNERS prides itself on the continual value contributions we are
able to offer our industry; thus, we produce periodic Multi-Family Market Summaries to further
inform the clients and industry we serve. Capstone believes this market snapshot will benefit
current owners, operators, investors, and other industry professionals who are active in the
Tallahassee MSA, as well as others who are looking to break into this market.
FLORIDA TEAM
2
Orlando Office
Tampa Office
111 N. Orange Ave.  Suite 1125
Orlando, FL 32801
208 N. Armenia Ave.  Suite B
Tampa, FL 33609
Enon Winkler
Deucie Bies
Jad Richa
Partner
407.616.0250
[email protected]
Investment Advisor
407.470.9030
[email protected]
Investment Advisor
727.282.5547
[email protected]
Brian Hunsicker
Investment Advisor
727.631.5870
[email protected]
TALLAHASSEE
Economic & Multi-Family Fundamentals
The occupancy rate in Tallahassee has improved to 92.7% over the past
year, which is a six-year high for the region. Continued high demand
for apartments has resulted in the positive absorption of 789 units over
the last year, with an average rent of $1,056. Rent growth is gaining
momentum with same-unit increases of 1.7% in 2014, compared to only
0.8% in 2013 and a decline in 2012. Development in the area has also
remained active over the last twelve months with the completion of
1,112 new units, which are primarily located in the Southwest quadrant
of the city. The majority of planned development is student housing
and located near Florida State University. Throughout the next 1824 months, Capstone anticipates the occupancy rate will continue to
improve and rent growth to increase at a pace of 2.5%-3.0% annually.
Apartment Comparison by Class
Vacancy Rate
Avg. Sq. Ft.
Class
Units
Lease-up
A (1-5 Years in Age)
B (6-15 Years in Age)
C (16-30 Years in Age)
C- (30+ Years in Age)
Stabilized Averages
1,198
1,580
5,383
6,204
7,405
20,572
8.7%
7.7%
8.5%
6.0%
7.2%
7.2%
Totals/Averages
21,770
7.3%
Avg. Rent
Avg. Rent/Sq. Ft.
1,122
1,218
1,249
1011
845
1,030
$1,714
$1,820
$1,212
$941
$770
$1,018
$1.53
$1.49
$0.97
$0.93
$0.91
$0.99
1,035
$1,056
$1.02
MARKET COMMENTARY
The Tallahassee MSA experienced terrific job gains over the past
24 months, with more than 8,500 jobs introduced market-wide
according to the Bureau of Labor Statistics. As of December 2014, the
unemployment rate reached a pre-recession level of 5.0%. The region’s
economic base is mostly education and health-related, with top
employers including the state government, Florida State University,
Leon County Schools, and Tallahassee Memorial Healthcare.
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TALLAHASSEE
Employment
ECONOMIC OVERVIEW
Recent Economic Announcements
The Tallahassee region has added more than 8,500
jobs over the past two years. The largest area
employer is Florida State University. The most recent
enrollment at Florida State University’s main campus
was 39,563, compared to 35,572 in 2009; thus
representing a student population growth of 11%
over the past five years.
Florida State University has recently launched
the public phase of a $1 billion dollar fundraising
campaign. The goal for the “Raise the Torch”
campaign is to improve the student experience and
continue to facilitate economic growth in the region.
This is an ongoing effort that will end by June of
2018. Past fundraising campaigns have exceeded
their financial goals.
10 Largest Employers in Richland County
Rank
Company
Industry
Employment
1
Florida State University
Education
6,119
2
Leon County Schools
Education
4,550
3
Tallahassee Memorial HealthCare
Healthcare
3,190
4
City of Tallahassee
Government
8,820
5
Publix Supermarket
Grocery
2,102
6
Florida A&M University
Education
1,923
7
Walmart Stores
Retail
1,300
8
Capital Regional Medical Center
Healthcare
867
9
Capital City Bank Group
Financial
425
10
Century Link
Communications
278
Wages & Population
There are 156,530 employees in the MSA who earn a mean hourly wage of $19.93 and an average annual income of $41,450. In comparison, the
state’s yearly income average is lower at $41,140 and the national annual salary mean is a tad higher at $46,440.
Historical Population
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Tallahassee
160,699
163,075
166,724
170,366
171,847
172,574
181,862
183,477
187,084
186,254
Tallahassee (MSA)
336,783
341,471
347,359
353,548
357,171
360,013
369,462
371,087
375,391
373,255
17,375,259
17,783,868
18,088,505
18,277,888
18,423,878
18,537,969
18,846,054
19,083,482
193,207,490
19,552,860
Florida
Source: U.S. Census Bureau
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In December 2014, the Tallahassee MSA experienced its lowest unemployment rate
since May 2008 at 5.0%. The MSA’s average is lower than both the state average of
5.7%, as well as the national unemployment rate of 5.6%.
TALLAHASSEE
Sales Transactions: 2014 to Present
Community
City
Sale Date
Units
Sale Price
Price Per Unit
Oak Pointe
1993
Tallahassee
1/15/2015
184
$9,600,000
$52,174
Tanglewood
1974
Tallahassee
10/1/2014
112
$5,250,000
$46,875
Chapel Terrace
1975
Tallahassee
7/31/2014
113
$5,800,000
$51,327
Park at Midtown
2000
Tallahassee
7/31/2014
168
$8,628,800
$51,362
Osceola Ridge
1991
Tallahassee
7/31/2014
189
$6,501,200
$34,398
Park at Forest Ridge
1999
Tallahassee
7/31/2014
288
$13,119,100
$45,552
University Heights
2001
Tallahassee
7/31/2014
324
$13,119,900
$40,494
Reserve at Heritage Oaks
2001
Tallahassee
7/31/2014
444
$36,947,700
$83,216
Silverleaf East
1990
Tallahassee
7/23/2014
64
$2,000,000
$31,250
Landmark
1968
Tallahassee
7/23/2014
128
$4,475,000
$34,961
Enclave at Huntington Woods
1997
Tallahassee
5/22/2014
184
$11,650,000
$63,315
Oasis at 1800
1997
Tallahassee
5/22/2014
280
$18,600,000
$66,429
West 10
2006
Tallahassee
5/21/2014
312
$40,050,000
$128,365
University Trails
2003
Tallahassee
5/1/2014
234
$24,250,000
$103,632
Pebble Hill
1991
Tallahassee
4/8/2014
108
$4,900,000
$45,370
Mission West
1983
Tallahassee
2/12/2014
114
$2,980,000
$26,140
Legacy Suites
2008
Tallahassee
1/29/2014
144
$15,337,700
$106,512
U Club on Woodward
West 10
SALES TRANSACTIONS
YOC
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TALLAHASSEE
Average Transaction Sales Price
$25,000,000
Average Price Per Unit
$90,000
$23,055,683
$85,597
$80,000
$20,000,000
$70,000
$59,493
SALES TRANSACTIONS
$60,000
$15,000,000
$13,129,965
$39,826
$40,000
$9,481,471
$10,000,000
$48,355
$50,000
$30,000
$4,626,250
$5,000,000
$20,000
$10,000
$0
$0
Class A
Class B
Class C
AVERAGE
Class A
Class C
AVERAGE
Average Year of Construction
Average # of Units Per Transaction
300
Class B
2010
271
2005
250
2003
2000
199
185
200
1994
1995
1993
1990
150
1985
117
1980
100
1975
1975
1970
50
1965
1960
0
Class A
Class B
Class C
AVERAGE
Class A
Class B
Class C
AVERAGE
Class A represents properties built from 2000-2015 and renovated assets, Class B includes properties constructed from 1985-1999, and Class C signifies properties constructed in 1984 or earlier.
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TALLAHASSEE
1
4
2
3
Developer
Communities Proposed (100 Units and Above)
Community
Units
Road/Intersection
Submarket
1
Arbor Properties
Arbor Landing at Lake Jackson
120
4910 Monroe St.
Northwest
2
American Realty Advisors
Apalachee Point
200
Southwood Plantation Rd.
Southeast
3
Evergreen Residential
Evergreen at Southwood
280
Orange Ave.
Southeast
4
Campus Acquisitions
Onyx
219
444 College Ave.
Southwest
Developer
5
American Campus Communities
Communities Under Construction (100 Units and Above)
Community
Units
Road/Intersection
U Club on Woodward
124
982 West Brevard St.
DEVELOPMENT PIPELINE
5
Submarket
Northwest
7
TALLAHASSEE
Carolinas
Georgia
Virginia
Tennessee
Kentucky
Alabama
Florida
West Virginia
WHY CHOOSE CAPSTONE ?
The People Sell the Deal
Capstone’s Southeast & Mid-Atlantic Investment Sales Team is among the market leaders within our industry
sector and respective region. We place client service above all else, and can guarantee that no one else will
work smarter and harder in achieving the highest level of results for our clients. We don’t rely on a logo to
sell the deal, but rather utilize the industry expertise and investment acumen, tremendous drive and work
ethic, and unbeatable salesmanship of the team members assigned to each project. At the end of the day,
it’s the individuals that drive value and sell the deal, and we know the capabilities of our individual team
members are second to none.
Market Expertise & Product Niche
Capstone sits atop the private capital sector of multi-family investment sales for multiple reasons. Our deliberate and concentrated focus and
expertise in not just the primary markets of the Southeast & Mid-Atlantic, but also the secondary and tertiary markets within our region, identifies
us as the ideal candidate for such assignments. Capstone’s investment sales team has completed a multitude of transactions across the primary,
secondary, and tertiary markets of the Southeast & Mid-Atlantic, and our track record of success can be attributed to our comprehensive coverage
and expertise among these markets, as well as our relationships with the owners and investors who remain active in this environment.
National Exposure via Cutting Edge Technology
Capstone has developed and maintains industry leading national databases, expansive information delivery methodologies, and various
proprietary activity tracking systems. These tools are utilized daily by the investment sales team, analysts, and back-office support staff allowing
for optimal operational efficiency. This enables Capstone’s investment brokerage team to spend nearly all of its time servicing clients, interacting
with industry players and active asset traders, and promoting transactions.
Reputation and Results
Capstone prides itself on its impeccable industry reputation and the core values and behaviors of the firm that drive daily operations. The
firm possesses an unblemished reputation and track record industry-wide, and, as such, the firm’s trusted relationships among the apartment
investment community continue to facilitate seamless, fluid, and successful sales transactions.
** Information in this report has been provided by the following resources: The Tallahassee Data Report October 2014, REIS Report, Costar, Business Journals, Loopnet, Bureau of Labor Statistics, county tax records, and
various multi-family industry contacts. Area images provided by Jackson Myers (pg. 1) via https://creativecommons.org/licenses/by-nd/2.0/ and Zverzver (pg. 3) via Wikimedia Commons.
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