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Market Findings SimTmgry <br />October 17, 2008 <br />Prices in active residential projects in the area average approximately $200 per <br />square foot. It is expected that buyers will be willing to pay a premium for amixed- <br />use town center location, once the amenities are established. Based on a very small <br />sample of residential sales in Downtown Louisville, the market is willing to pay <br />between $250 to $280 per square foot for more urban product. <br />The depth of demand at this price point is unproven at this time. As the current <br />inventory of attached product is absorbed over time and as amenities are established <br />to create a sense of place within the Highway 42 redevelopment area, prices are <br />expected to increase. <br />Development Conclusions <br />EPS recommendations regarding the amount, locations, and uses to be feasible in the <br />Highway 42 study area are described below. It should be noted that the composite of <br />stakeholder interviews suggests that the sale or development of land holdings in the <br />area are contingent upon greater certainty regarding RTD service, which has become <br />less certain over the course of this study. Nevertheless, the market area has many <br />strengths which can be leveraged in combination with future transit service and are <br />expected to result in market demand for more intensive residential and commercial land <br />use. Specific findings call for: <br />Demand for approximately 30,000 square feet of office space. Office locations ~~ill be <br />most successful and capture the greatest amount of area demand if located in the <br />mixed-use portion of the study area which would provide access to the amenities of <br />Downtown. <br />^ Demand of approximately 70,000 to 90,000 square feet of retail space is estimated to <br />be feasible, to be concentrated on the northwest corner of Highway 42 and South <br />Street as well as the southwest corner of South Boulder Road and Highway 42. <br />^ Current market conditions indicate a shift from the historic demand for lower <br />density residential types. Current attached product being developed is moderately <br />higher density. Much of the product includes relatively large, suburban style <br />townhomes. However, continued buildout of surrounding areas is expected to <br />gradually shift the market toward residential projects with 1ligher density. <br />3 1RF2oM ]0170Rdoc <br />