Is This Project Likely To Be Successful?
Location, Product, Pricing
Given the information, this project seems promising for success assuming high occupancy levels. The Millegan Creek Apartments would be a 390 unit apartment project in Williamson County, for a proposed $15,715,000 loan. It would be about 11 miles northwest of the CBD and close to many of Austin’s high tech companies. This location would be beneficial because it can service many of the high tech companies’ employees and since the apartments are being built as a typical luxury apartment complex, it will be more appealing to these employees. JPI had begun to search for the ideal location for the Millegan Creek Apartments in 1993. They sought an area with employment
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The average unit size is 848 square feet and a total of 152 units are complete and should total out to 348 upon completion of construction. The average rent/sf/month is lower than the other comparables and the subject property at $0.813. The last comparable is similar to Millegan Creek apartments in that it provides numerous interior and exterior amenities. These apartments are called Martha’s Vineyard located on 7920 San Felipe, Austin. They have 8 different 1 bed/1 bath plan types ranging in size and price. The average rent/sf/mo of $0.838 is most similar to the subject property and reported occupancy is 97%. The pricing for these apartments are rather decent but the building is older than all of the comparables and subject property. It was built in 1986 with an average unit size of 703 square feet. The Millegan Creek Apartments are comparable to a few properties in the area but they offer a better variety of plan types including bedrooms of one to three, which the other comparable properties mainly offer one and two bedrooms. The price per unit are very reasonable compared to the prices charged for other comparable units and the expected occupancy for Millegan Creek Apartments is high at 93%. Given these comparables, pricing, and the subjects features, it is likely that it will maintain high occupancy levels and succeed.
Demand for the Project Size?
The project size of the Millegan Creek