2 today’s agenda - new communities1 1 metroedge.lisc.org westhaven market study november 5th, 2007...
TRANSCRIPT
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metroedge.lisc.org
Westhaven Market Study
November 5th, 2007
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Today’s Agenda
• Demographic Trends and Market Conditions
• Assets and Opportunities in Westhaven
• Strategies for Sustaining Homeownership and Supporting New Retail
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Westhaven Rising Like a Phoenix!
A neighborhood with significantly increasing development activity principally moving in from the east, strong civic institutions and vibrant neighborhood assets – increasingly a community of choice!
Yet, the impact of recent economic trends on homeownership provides a new challenge to the investors and residents of Westhaven.
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Trade Area Highlights
• Demographics in Westhaven are changing
• New residential, most particularly homeownership, has increased in the community
• Private investment and construction activity demonstrates growth including new retail
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Westhaven Convenience Trade Area
Railroad tracks are a natural boundary in attracting consumers for retail trade in an area.
The Eisenhower Expressway presents a boundary in defining the trade area.
Trade Area: Geography defined by physical and/or sociological boundaries that determines the target market for the retail types evaluated for a specific site or retail corridor. This area often differs from political, community, or service area boundaries.
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The Hub --Businesses and Institutions
Taking advantage of opportunities:All-Star Dental moved into 5,000 square foot of space next to the Walgreen’s at Madison and Western.
Next Goal:
Identify strategies for supporting new retail.
Madison and Western is two miles west of the Chicago Loop, with close-by connections to highways, rail lines and busses, including Chicago’s second busiest bus route with 23,000 riders daily!
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Also in Westhaven……
• Chicago Landmarks: Frank Lloyd Wright’s Waller Apartments & Metropolitan Missionary Baptist Church
• Kinzie Industrial Corridor a few blocks to the north
• Recently renovated Touhy-Herbert Park, featuring community baseball program
The Hub -- Businesses and Institutions• Madison and Western features the
historic West Town State Bank Building on the northwest corner, home to the first black radio station in the 1930’s and 1940’s, now converted to one- and two- bedroom apartments.
• Critical retail opportunity – an organic bakery signed to occupy ground floor.
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The Fundamentals• Near West Side CDC and its partners have
successfully brought new investments to Westhaven focusing most recently on new homes.
• The United Center has invested $600,000 in a Construction Escrow Account which Near West Side CDC has used to finance multiple residential development projects in the neighborhood.
• Strong public sector investment includes the Chicago Housing Authority’s transformation of the Horner and Rockwell sites, as well as the Mabel Manning Public Library.
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The Fundamentals
• Partnerships such as the $1.5 million United Center Community Economic Development Fund (UCCEDF) have mobilized new resources for development in Westhaven.
– Fourteen businesses have been funded by the UCCEDF
– 100% of these businesses established business residency in the community and/or expanded their existing facility/operations within the community.
– A total of 126 jobs were created or sustained
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Sustaining Westhaven’s Success
• Engaging partners in building on and sustaining their investments in the community
• Using data such as LISC MetroEdge’s profile to focus the effort to identify and support convenience retail
• Continue to support the completion and sales of homeownership
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Westhaven Today
–Demographic Trends
–Market Conditions
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A trade area with increasing wealth!
The number of upper middle income households – a key demographic needed to support retail development –has nearly tripled in the last fifteen years.
Middle to Upper
Income HHs 1990
Middle to Upper
Income HHs 2000
Middle to Upper
Income HHs 2006
Trade Area 247 637 668
County 1,334,362 1,345,704 1,306,184
Change 1990 - 2000 Change 2000 - 2006 Change 1990 - 2006
Trade Area 158.4% 4.8% 170.7%
County 0.8% -2.9% -2.1%
Middle to Upper Income Households per Square Mile
1381
1034
0
200
400
600
800
1000
1200
1400
1600
County Trade Area
Source: Claritas 2005, LISC MetroEdge metrics
(Household Income 35K and above)
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Good Buying Power
Concentrated Buying Power(Millions of Dollars per Square Mile)
$91.1$81.3
0
10
20
30
40
50
60
70
80
90
100
County Trade Area
County
Trade Area
Source: Claritas 2005, LISC MetroEdge metrics
There are 90 million dollars of concentrated buying power in the trade area, which is 10 million more dollars to spend than a comparable square mile county wide.
Definition:Potential dollars available to be spent in retail stores by trade area residents per square mile.
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Private Investments Surrounds Westhaven
Real estate investments are moving across the city, enhancingconditions favorable for the development of new retail.
Source: City of Chicago Building Permits 2006, LISC MetroEdge metrics
Madison & Western
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Recent Developments Bring New Residents
• Over a half billion dollars in new investments in residential and commercial development since 1999, translating to:
– 2,000 total new residential units already online or under construction
– Anchored by public housing transformation and private investments
• New homeownerships opportunities cover the neighborhood, many occupied by new residents, others continue to be available.
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Household Income Diversity
Household Annual Income Distribution
51%
15%9% 8% 6% 4% 7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
Less than
$15,000
$15,000 to
$24,999
$25,000 to
$34,999
$35,000 to
$50,000
$50,000 to
$75,000
$75,000 to
$100,000
$100,000 plus
Fra
ction of House
holds
Source: Claritas 2005, LISC MetroEdge metrics
Income diversity has increased in Westhaven, with 25% of the population in the middle and upper income categories.
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Increasing homeownership to support retail
New Purchase Loans, 1995-2005
10
30
15 14
51
32 35
57
105
148
125
0
20
40
60
80
100
120
140
160
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Count loans
Trade Area Loans
Source: Home Mortgage Disclosure Act 1995-2005,
LISC MetroEdge metrics
The trade area shows increasing home purchase activity.
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2000 Household Annual Income Distribution of Homeowners
21%
11% 10%
15%
24%
12%
8%
0%
5%
10%
15%
20%
25%
Less than
$15,000
$15,000 to
$24,999
$25,000 to
$34,999
$35,000 to
$50,000
$50,000 to
$75,000
$75,000 to
$100,000
$100,000 plus
Fra
ction of House
holds
Source: Geolytics Census 2000 Income by Tenure, LISC MetroEdge metrics
Sixty percent of homeowners are middle and upper middle income households.
Income Diversity of Homeowners
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Strong Building Permit ActivityNew Construction Permits per 1,000 Households
27
30
5
10
15
20
25
30
City Trade Area
City
Trade Area
Source: City of Chicago Building Permits 2005, LISC MetroEdge metrics
The trade area includes 27 new construction permits per 1,000 households!
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Active Renovation and Repair InvestmentsRepair/Renovation Permits per 1,000 Households
1719
0
10
20
30
City Trade Area
City
Trade Area
Source: City of Chicago Building Permits 2005, LISC MetroEdge metrics
New repair and renovation permits represent investments in improving the community.
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Opportunities for New Home Construction
Demolition Permits per 1,000 Households
1.6
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
City Trade Area
City
Trade Area
Source: City of Chicago Building Permits 2005, LISC MetroEdge metrics
The demolition of outdated housing stock in the trade area creates space for the future of Westhaven.
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The Next Horizon
Population 1990 Population 2000 Population 2006
Trade Area 9,852 8,197 7,841
County 5,105,067 5,376,741 5,306,935
Change 1990 - 2000 Change 2000 - 2006 Change 1990 - 2006
Trade Area -16.8% -4.3% -20.4%
County 5.3% -1.3% 4.0%
• Recent and future investments in homeownership will provide a consistent population base to support retail for the Westhaven, reversing recent trends.
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Potential Neighborhood Convenience Retail
Many businesses already operate in Westhaven, providing a base of existing retail institutions to build from.
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Retail Opportunity in Numbers!
The trade area presents opportunities for retailers in the general merchandise and clothing store categories.
0172-26,995,021-26,929,20436,403,4069,474,202Motor Vehicle & Parts Dealers
0462-4,910,818-4,908,71511,066,1906,157,475Foodservice & Drinking Places
0232-2,324,995-2,189,0943,428,0541,238,960Miscellaneous Store Retailers
23,5753418,038,9958,309,135383,0278,692,162General Merchandise Stores
771370285,423760,556337,9141,098,470
Sporting Goods, Hobby, Book, &
Music Stores
11,1543123,479,9543,481,16603,481,166Clothing & Clothing Accessories Stores
N/AN/A1,051,8242,412,7124,037,9446,450,656Gasoline Stations
0474-7,377,039-7,074,66011,189,1254,114,465Health & Personal Care Stores
0245-2,825,897-1,469,89511,255,2909,785,395Food & Beverage Stores
0219-6,819,248-6,155,8689,943,6483,787,780Building Material, Garden Equipment & Supply Dealers
0452-810,855-424,5591,887,8831,463,324Electronics & Appliance Stores
0352-2,816,673-2,043,2053,388,0461,344,841
Furniture & Home Furnishings
Stores
Estimated Square
Footage
Sales Per Square
Foot
Adjusted
FloatFloatSupplyDemandCategory
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10.330.370.140.000.14Other Telecommunications
2.770.590.220.000.22
Carpet and Upholstery
Cleaning Services
1.780.640.240.000.24Locksmiths
8.730.740.280.000.28Janitorial Services
13.800.990.380.000.38
Cellular and Other Wireless
Telecommunications
6.441.010.380.000.38
Automotive Body, Paint,
and Interior Repair and
Maintenance
25.291.200.460.380.84
Offices of Certified Public
Accountants
11.421.270.480.000.48Architectural Services
GAPTrade AreaCounty
Employee
GAP
Additional
Potential for
Establishments
Establishments Per 1000
Households
Service Sector
New Service Businesses
To Complement New Retail
Service businesses are an important component of a good neighborhood convenience business strip.
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Ingredients for New Retail Development
• Homeownership growth has been the focus of investors, lenders, the CDC and developers in the past few years and it shows on the ground.
• CHA investments in Jackson Square at West End, the Villages of Westhaven and Westhaven Park are creating new neighborhood assets, increasing both density and income diversity.
• A series of new retail sites have been constructed following the opening of Walgreen’s seeking tenants such as “All Star Dental”.
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Westhaven Strategies for Sustaining Growth
• Implement comprehensive, coordinated strategies to support commercial development:
– Safety
– Cleanup & Beautification
– Streetscape Improvements
– Promotions & Marketing
– Financial Assistance
– Business Attraction
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Westhaven Strategies for Sustaining Growth
• Homeownership efforts need to be completed
– Every unit makes a difference
– Combined sales campaign in early spring
• Engage in partnerships to mobilize resources to support homeownership and commercial development strategies
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• Trade Area: Area that determines the target market for the retail types evaluated for a specific site or retail corridor. This area often differs from political, community, or service area boundaries.
• Concentration of Buying Power: Potential dollars available to be spent in retail stores by consumers who live the study area per square mile.
• Middle to Upper Income Households: Total number of households with annual household income above $35K.
• Retail Float: Measure of the amount of unmet retail opportunity in the study area, and is calculated as the difference between buying power (demand) and retail sales (supply).
• Adjusted Float: Adjusts float for the amount that is captured by establishments immediately outside of the target area. Adjusted Float is subtracted from overall Float.
Basic Definitions
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Trade Area Highlights
• Demographics in Westhaven are changing
• New residential, most particularly homeownership, has increased in the community
• Private investment and construction activity demonstrates growth including new retail