Market & Feasibility Studies
Senior Housing & Healthcare Achieving client ambitions through market insight
Market & Feasibility Studies JLL Valuation Advisory[1] is a global network of more than 1,700 professionals, operating from 44 countries, to deliver expertise across the commercial real estate spectrum. You can rely on us to look beyond present value assessments to understand market trends, competing assets and projected income to deliver accurate, reliable valuations, providing strong foundation for any real estate transaction. Our Market & Feasibility Studies specialists are focused on providing special counseling and analyses for Multihousing and Seniors Housing assets. Our analysis involve • Delineation of submarkets • Current and forecasted market conditions • Econometric modeling • Depth of demand by income qualification • Absorption and demographic analyses • Counseling specific to optimal unit mixes, amenity packages, pricing strategies • Consumer research and surveys
Driven by a passion for client service and powered by real-time data, world-class research and cutting-edge technology, our Market & Feasibility Studies specialists can help you put knowledge into action. We strive to be your trusted advisor of choice. [1] U.S. property valuation and tax consulting services are performed by JLL Valuation & Advisory Services, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated.
Property sectors of expertise: - Multi-housing
- Seniors housing
• Affordable housing
• Active adult
• Condominiums
• Adult day care
• Development sites
• Assisted living
• Garden
• Behavioral health
• Land sales
• CCRC & Life Plan Communities
• Manufactured housing
• Hospice facilities
• Mid & high-rise
• Independent living
• Mixed-use
• Memory care
• Other
• Nursing care
• Portfolios
• Other
• Residential subdivisions
• Senior Apartments
• Student housing
• Short- term & post acute rehab
Specialized service offerings Reliable market valuations • • • • • •
Appraisal, real property and going-concern Portfolio valuations Purchase price allocations (ASC 805 reporting) Litigation support HUD Section 232 Lean Fannie Mae & Freddie Mac
• Stark Law and anti-kickback compliance • Net asset valuations per IPA guidelines
World-class advisory services • • • • • • • • •
Market & Feasibility Studies Site selection Underwriting due diligence Financial modeling Expert testimony Fair market rent analysis Lease renewal & purchase options Consumer research surveys Valuating indexing & operational benchmarking
Property tax services • • • • •
Pre-acquisition consultations Assessment tracking and notification Annual income and expense reporting, where required Appeal recommendation and representation Post-appeal litigation support
• • • • •
Preparation of tax budgets Tax bill tracking and approvals Abatement and exemption investigation and recommendation Reporting of business personal property tax returns Audit representation for business personal property tax returns
National Platform
Awards and Recognitions
2020 year-end track record
Trusted Advisors
$3.7T
Valuation Advisory global transaction volume in 2020
1,700
Valuation Advisory professionals worldwide
$202.9B in assets appraised in the U.S. in 2020
13,281
Valuation Assignments completed in the U.S. in 2019
175+
Valuation Advisory professionals in U.S.
We won numerous awards and recognitions through February 2020 that reflect the quality of the services we provide to our clients,the integrity of our people and our desirability as a place to work.
Top 70 Companies for Executive Women National Association for Female Executives 4th year in a row
World’s Most Ethical Companies Ethisphere Institute 13th year in a row
World’s Most Admired Companies Fortune magazine 3rd year in a row
America’s Most JUST Company in the Real Estate Industry Forbes 4th year in a row
100 Best Companies Working Mother 3rd year in a row
100 Best Corporate Citizens in the United States CR Magazine 4th year in a row
Perfect Score on the Human Rights Campaign Foundation’s Corporate Equality Index 6th year in a row
Key assignments: Market & Feasibility Studies Affordable Multi-housing redevelopment • Assisted a developer in the assessment of a proposed affordable housing redevelopment opportunity in Chicago, Illinois. • Total redevelopment, rehabilitation, or both, to revitalize a 13-acre site, that was part of a larger 65-acre district, into a mixed-income mixedfinance community. • Analysis of Multi-housing supply and demand conditions, assessment of market depth and opportunity assuming the developer’s proposed income restrictions and thresholds, and determination of achievable rental rates by floor plan type and size as well as income restriction. • Our analysis concluded there to be a significant need within the submarket for new affordable units. • Assuming the proposed unit mix and income restriction assumptions (public housing, 60% AMI, and 80% AMI), the anticipated capture rate for the proposed redevelopment was calculated to be a modest 3.4% based on the targeted income qualified renter household pool of 4,802.
Mixed-use development opportunity • Consulted with an ownership group in regards to a mixed-use development opportunity surrounding the Prudential Center in downtown Newark, New Jersey. • Conducted a market analysis addressing multifamily, hotel, office, restaurant, and retail property types, we also estimated residual land values. The analysis considered historical, current, and forecasted trends as well as key economic projections. • Our professionals provided detailed recommendations on the optimal unit mix, floor plan types and sizes, and amenities and finish-outs, as well as achieving pricing. • The overall design, appeal, and competitive positioning of the project was assessed and compared to the nearby competitors. In order to determine achievable rental rates, individual floor plans were adjusted for any quantitative and qualitative differences. Also included was the determination of the residual land value. • Our professionals analyzed available city-owned or municipally owned land sales, reviewed the city’s master plan and related zoning ordinances, and then conducted and calculated a residual land value for the anticipated development site.
Key assignments: Market & Feasibility Studies Seniors Housing submarket assessment • Assessed Seniors Housing operator’s opportunity for new assisted living/ memory care developments throughout the Seattle, Washington metro area. • Produced demographic analyses, competitive supply surveys, pipeline research, and demand forecasts for each of the submarkets. • First, our professionals delineated and established primary market area boundaries and evaluated demographics. • Next, we estimated the targeted pool of households by applying age, need and income qualifications. Penetration rates were also applied in order to determine demand. • And lastly, after extensive research into current and forecasted supply conditions was conducted, each market was assessed against one another in order to determine which submarket had the most potential and depth.
Country Club redevelopment into Seniors Housing use(s) • Counseled an owner/developer on a proposed seniors housing opportunity in the Memphis, Tennessee area. Plans consisted of redeveloping an existing country club consisting of two golf courses and a clubhouse. • Part of the property was to remain open and part of the property was to be redeveloped with a mix of independent living, assisted living, memory care and detached ‘for sale’ homes targeted to active adult 55+ households. • The scope of the engagement consisted of an analysis of supply and demand conditions, recommendations specific to project size, product/ care type, unit/bed mix, floor plan sizes, and amenity package, and the determination of achievable rental rates. • In addition, the analysis provided general recommendations in regards to home sizes and price points for the detached homes. • Considering current and forecasted market conditions, including a depth of demand assessment, we concluded there to be sufficient excess unmet demand to support the redevelopment as proposed with 200+/independent living units, 75+/- assisted living beds, and 25+/-memory care beds.
Contact us Market & Feasibility Studies Jon Cruse, CRE, FRICS
Executive Vice President National Practice Lead- Market & Feasibility Studies +1 214 924 7767 jon.cruse@am.jll.com
Taylor Chapel
Vice President +1 214 561 7246 taylor.chapel@am.jll.com
us.jll.com/valuationadvisory JLL’s Valuation Advisory platform leverages the firm’s global experience and deep knowledge of local real estate markets to provide industry-leading valuation, market analytics and advisory services to a wide range of clients. We offer the highest quality market insights and property valuations to help our clients makeoptimal business decisions and manage risk. JLL Valuation Advisory is comprised of over 1,700 valuation experts and 145 offices globally. For more news, videos and research resources on JLL, please visit the firm’s U.S. newsroom. U.S. property valuation and tax consulting services are performed by JLL Valuation & Advisory Services, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated.