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MARKET STUDY REPORT

Bancroft Redevelopment Project 437 Kings Highway East

Block 14, Lot 2 Haddonfield Borough

Camden County, New Jersey

PREPARED FOR

Jerry O’Connor 2 Hopkins Lane Urban Renewal, LLC 201 King of Prussia Road, Suite 501

Radnor, PA 19087

O T T E A U G R O U P

VALUATION | RESEARCH | CONSULTING | BROKERAGE 800-458-7161 www.otteau.com

New Jersey Office (Mail To) 100 Matawan Road, Suite 320 Matawan, NJ 07747

New York Office 112 W. 34th Street, 18th Floor Manhattan, NY 10120

Pennsylvania Office 325-41 Chestnut Street, Suite 800 Philadelphia, PA 19106

December 17, 2018 Jerry O’Connor 2 Hopkins Lane Urban Renewal, LLC 201 King of Prussia Road, Suite 501 Radnor, PA 19087 RE: Bancroft Redevelopment Project 437 Kings Highway East

Block 14, Lot 2 Haddonfield Borough Camden County, New Jersey

Dear Mr. O’Connor: In accordance with your request, I submit our market study report for the proposed Bancroft Redevelopment project. The purpose of this market study is to provide design guidance and performance projections for project development targeted to ‘empty nester’ households in accordance with the redevelopment plan for the property. I have inspected the subject site and investigated relevant economic, demographic and real estate market factors within the context of the regional and local market area. This market study report summarizes the various processes employed in developing our conclusions, the relevant data which formed the basis of our analyses, various exhibit documents upon which we have relied and any assumptions upon which our study has been based. Our investigation has determined that the proposed redevelopment of the Bancroft site with Age-Targeted townhouses is well aligned with demographic and real estate market conditions. Based upon our findings, we recommend that the current redevelopment plan be modified to allow for dwellings larger than 2,000 Ft2 of living area. Respectfully submitted,

Jeffrey G. Otteau, President, American Society of Appraisers, Accredited Senior Appraiser (ASA) National Assoc. of Independent Fee Appraisers, Designated Appraiser (IFA) New Jersey Certified General Real Estate Appraiser, #42RG00094100 New York Certified General Real Estate Appraiser, #46000045325 Pennsylvania Certified General Real Estate Appraiser, #GA003481 JGO/cm

Table of Contents PART I - INTRODUCTION .......................................................................................................... 1

Executive Summary .................................................................................................................... 1 Subject Property Location........................................................................................................... 5 Date of the Study ........................................................................................................................ 6 Identification of Property ............................................................................................................ 6 Purpose & Intended Use of the Study ......................................................................................... 6 Intended User of the Study ......................................................................................................... 6 Scope of Work ............................................................................................................................ 6 Ownership & History of Property ............................................................................................... 7 Tax and Assessment Analysis ..................................................................................................... 8

PART II – FACTUAL DESCRIPTIONS ....................................................................................... 9

Area Analysis .............................................................................................................................. 9 Neighborhood Analysis ............................................................................................................ 14 Land Use Regulation................................................................................................................. 15 Site Analysis ............................................................................................................................. 18 Improvement Analysis .............................................................................................................. 20

PART III – ECONOMICS & DEMOGRAPHICS ....................................................................... 24

Economic Context ..................................................................................................................... 24 Demographic Factors ................................................................................................................ 29

PART IV – HOUSING MARKET ANALYSIS .......................................................................... 36

Townhouse Competitive Set ..................................................................................................... 42 DESIGN RECOMMENDATIONS: ......................................................................................... 49 Projected Pricing ....................................................................................................................... 50

PART V - AFFORDABLE HOUSING INCLUSION ................................................................. 53 PART VI -ADDENDUM ............................................................................................................. 59

Limiting Conditions, Assumptions, and Hypothetical Conditions ........................................... 59 Demographic Analysis .............................................................................................................. 62 Glossary of Definitions ............................................................................................................. 67 Professional Qualifications ....................................................................................................... 71

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O T T E A U G R O U P VALUATION | RESEARCH | CONSULTING | BROKERAGE

PART I - INTRODUCTION Executive Summary Date of Study Report: December 17, 2018 Effective Date of Study: December 3, 2018 Location: 437 Kings Highway East Block 14, Lot 2

Haddonfield Borough Camden County, New Jersey

Current Zoning: Bancroft Redevelopment Plan Present Use: Site of the former 19.22-acre Bancroft NeuroHealth

facility Proposed Use: Redevelopment of an 8.2-acre portion of the

property withy 80 Age-Targeted Luxury Townhouses & 10 Affordable-Rate Stacked Flats

Synopsis: The subject property is the 19.22-acre site of the former Bancroft NeuroHealth facility in Haddonfield Borough, which was originally constructed in 1883. The subject of this market study is an 8.2-acre portion of the property which is proposed for redevelopment with 80 Luxury Age-Targeted Townhouses, and 10 Affordable-Rate Stacked Flats. The purpose of this market study is to provide design guidance and performance projections for project development targeted to ‘empty nester’ households in accordance with the redevelopment plan for the property. Locational Characteristics: The subject property is located within the affluent community of Haddonfield Borough, which enjoys high household income levels and close proximity to employment opportunities. These characteristics, coupled with the accessibility of the community to major highways, public transportation services and the City of Philadelphia create a favorable contest for real estate development. We also note that existing neighborhood land uses include single family homes and multi-family dwellings, which is compatible with the proposed construction of luxury Age-Targeted townhouses. Demographic Trends: Haddonfield’s modest population decline of 0.65% from 2000 to 2010 has accelerated, falling 3.63% since 2010 compared to a 2.01% increase for the state overall. This trend is also evident in the number of households residing in Haddonfield, which has fallen by 3.1% since 2010 compared to a 2.15% increase for the entire state of New Jersey.

A more careful look at Haddonfield’s population change indicates the declines to be occurring across a wide range of ages (see table below). The declines in the number of younger-age adults (20-24) and 55+ cohorts indicate a need to create more diversification in its housing stock in the form of townhomes or apartments.

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Source: US Census Bureau, Otteau Group, Inc.

Smaller Size Households – The size of households in New Jersey, and locally, has been shrinking in recent years whereby those that are either 1-person or 2-persons in size now account for a majority. These smaller households now account for 57% of total households in Haddonfield, 59% within 5-miles, 61% within 10-miles and 60% within 15-miles.

Source: US Census Bureau; Environics Analytics; Otteau Group, Inc.

Childless Households - Since peaking in the 1980’s, the percentage of New Jersey households with children living at home has steadily declined to 35% today, with continued declines likely in the future. This is also true in the local submarket area with ratios of 63% in Haddonfield Borough, 67% within 5 miles, 69% within the 10 miles, and 68% within 15-miles.


8%0%

5%

-22%

-34%

-1%

13%

-11%

-20%

-2%

49%

-23%

0%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Population Change By Age (2010 v. 2016)Haddonfield Borough

% % % %2018 Est. Households by Household Size 4,299 124,444 554,565 1,104,3341-person 1,083 25.19 35,724 28.71 175,731 31.69 343,746 31.132-person 1,350 31.40 37,278 29.96 160,265 28.90 319,882 28.973-person 695 16.17 20,802 16.72 89,087 16.06 182,118 16.494-person 737 17.14 17,350 13.94 69,632 12.56 139,469 12.635-person 300 6.98 8,149 6.55 34,866 6.29 69,717 6.316-person 101 2.35 3,202 2.57 14,832 2.67 29,413 2.667-or-more-person 33 0.77 1,939 1.56 10,152 1.83 19,989 1.81

HOUSEHOLD DEMOGRAPHICS0 - 5 Miles 0 - 10 Miles 0 - 15 MilesHaddonfield Borough

% % % %Households with No People under Age 18: 2,720 63.27 83,140 66.81 379,916 68.51 750,563 67.97Married Couple Family 1,308 48.09 31,085 37.39 110,042 28.96 223,270 29.75Other Family, Male Householder 49 1.80 2,931 3.52 14,380 3.79 29,388 3.92Other Family, Female Householder 147 5.40 7,287 8.77 34,934 9.20 76,252 10.16NonFamily, Male Householder 448 16.47 17,975 21.62 102,814 27.06 190,426 25.37NonFamily, Female Householder 768 28.23 23,862 28.70 117,746 30.99 231,227 30.81

0 - 5 Miles 0 - 10 Miles 0 - 15 MilesHaddonfield Borough

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Multi-Family Housing in Short Supply: The majority of Haddonfield’s housing consist of single-family detached homes, which account for 76% of all housing units. This is out of balance with the borough’s demographic characteristics whereby 34% of residents, and 57% of households in Haddonfield are ages 55 or older. These circumstances indicate that the proposed development of the subject property with 80 age-targeted townhouses will fill an unmet need in the local community. Housing Market Conditions: Housing market conditions in New Jersey remain strong in 2018 as evidenced by elevated sales pace, low unsold inventory and rising home prices. The New Jersey housing market realized more than 108,000 home purchase contracts during the 1st 11-monthsof 2018, about the same as last year. These strong performance indicators are a direct result of an expanding economy and rising homeownership.

Source: Otteau Group, Inc., www.otteau.com

Age-Targeted Townhouses: Based upon our investigation of existing age-targeted housing, we recommend the following design guidelines for the Bancroft Redevelopment project:

1. Floor plan configurations which include either of the following: a. A master bedroom located on the 1st floor. These townhouse models should

have a minimum width of 30’ to provide a functional floor plan arrangement. b. An elevator option to access an upper floor master bedroom.

2. A stall shower, instead of a bathtub, in the master bathroom to allow for easier access by older age persons.

3. An optional split-bedroom floor plan which creates a 2nd master bedroom geared towards adult children or an elderly parent.

4. A laundry room located on the same floor as the master bedroom. 5. Relatively generous living areas which are larger in size than the typical townhouse

dwelling, and therefore targeted to more affluent households who are trading down from single family homes.

105,

468

86,3

10

80,4

17

64,1

03

67,7

36

61,8

07

57,1

90 69,4

94 81,0

00

77,3

89 91,5

55

105,

577

108,

652

108,

586

0

20,000

40,000

60,000

80,000

100,000

120,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

NJ YTD Home Purchase ContractsJanuary-November

http://www.otteau.com/

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6. The majority of models offering 2-car garage capacity 7. 9’ interior ceiling heights 8. High energy-efficiency features to reduce energy costs including efficient HVAC

systems, appliances, windows and insulation. 9. Gas fired fireplace in the living room. 10. A tendency to be located in affluent communities wherein household income is higher

than exists in the larger market area.

Projected Selling Prices: Our projections for selling prices for the Age=Targeted townhouses are summarized in the table below:

Conclusion: The proposed redevelopment of the Bancroft site with Age-Targeted townhouses is well aligned with demographic and real estate market conditions, will primarily attract smaller-size households without children living at home, and will fill an unmet need in the local community. We recommend however that the current redevelopment plan be modified to allow dwellings larger than 2,000 Ft2 maximum average dwelling size.

1st Floor Master Elevator Garage Sq. Feet Mean Deviation Garage Adj. Elevator Adj.Townhouse 2 or 3 No No 2.1 2.0 1,920 -4% $260.00 $0.00 $0.00 $499,200Townhouse 2 or 3 No Yes 2.1 2.0 1,920 -4% $260.00 $0.00 $13.00 $524,200Townhouse 3 Yes No 3.1 1.0 2,136 7% $249.00 -$12.45 $0.00 $505,300

1,992$510,000

$256

Dw elling Type Beds Baths Base Price / Ft2Living Area

BANCROFT REDEVELOPMENT PROJECT - PROJECTION OF BASE TOWNHOUSE SELLING PRICES

Base Selling Price

Average House Size (weighted)Average Base Selling Price (weighted)

Average Base Price-Per-Square Foot (weighted)

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Subject Property Location

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Date of the Study The effective date of the market study is December 3, 2018, which establishes the context for

the analysis in terms of economic, demographic and real estate market conditions. The date of

this market study report is December 17, 2018, which identifies when the analyses and report

were prepared. Identification of Property The overall study area is the former Bancroft NeuroHealth facility, a 19.22-acre tract in

Haddonfield Borough. Originally constructed in 1883 on Kings Highway, and bisected by

Hopkins Lane, the property consists of 2 tracts as follows:

• West Side (Block 13, Lot 25) - consisting of 6.07 acres, is the location of Lullworth Hall, an historic structure, along with its carriage house, associated outbuildings and surface parking. These structures constitute an important cultural resource to Haddonfield and as a result will not be demolished as part of the Redevelopment Plan.

• East Side (Block 14, Lot 2) - consists of 13.15 acres improved by ten buildings including Bancroft Hall, Farrington Hall, on-site residences & surface parking. All of these structures will be razed to facilitate the redevelopment of the site.

The subject of this market study is an 8.2-acre portion of Lot 2, identified as 437 King Highway

East Purpose & Intended Use of the Study The purpose of this market study is to provide design guidance and performance projections for

project development targeted to ‘empty nester’ households in accordance with the

redevelopment plan for the property. The intended use of the study is to develop a marketing plan that is financially viable for the

property which aligns with market demand and is beneficial to the community. Intended User of the Study The intended user of the study is the client, 2 Hopkins Lane Urban Renewal, LLC. It is also

anticipated that the Borough of Haddonfield may reply upon the findings of this report in drafting

an amended redevelopment plan for the property. Any reliance upon this report by anyone

other than those named above is unintended. Scope of Work The scope of work employed in developing this analysis included:

1. Identification of the Market Study Problem: Identification of the study area, purpose and intended use of the study.

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2. Inspection of the Property: An inspection of the site and surrounding neighborhood area to understand site characteristics, surrounding land uses and neighborhood context.

3. Document Review: Reviewed various documents that relate to the subject property that was provided by the client including but not limited to legal descriptions, conceptual site plans, conceptual architectural plans & construction details.

4. Research & Verification: Collection of facts information and data points including but not limited to economic conditions, demographic trends, land use controls, existing infrastructure, real estate market data and other pertinent factors which are relevant to the assignment. Data sources include US Census Bureau, Bureau of Labor Statistics, Federal Reserve Bank(s), GIS and geographical mapping, municipal zoning ordinances, public records, recorded deeds, various national, local and regional subscribed services, real estate brokers, the Internet and records maintained in the files of Otteau Group, Inc.

5. Market Analysis: The application of various analytical techniques to identify development use types which are suitable to the subject property and viable within the study area.

6. Performance Projections: Develop design recommendations and performance projections for the proposed development of multi-family housing targeted to ‘empty nester’ households.

The results of our study analysis are presented in this report which “summarizes” the study

process, methodology and conclusions. Additional supporting documentation has therefore

been retained in our work file.

Ownership & History of Property The current owner of record for the property is Haddonfield Borough. Our investigation has

discovered the following transfers of title, which is summarized as follows:

Previous Sales

Last Transfer of Title: 06/29/2016 Grantor: Bancroft NeuroHealth Grantee: Haddonfield Borough Consideration: $ 11,500,000 Recording Information:

Date: 09/12/2016 Book: 10478 Page: 234

Notes & Comments

1. This sale includes Block 13, Lot 25 and Block 14, Lot 2. 2. The municipal tax assessor has classified this transaction as being “Non-Usable Code 15” which refers to

“Sales to or from the United States of America, the State of New Jersey, or any political subdivision of the State of New Jersey, including boards of education and public authorities.”

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Our investigation has not discovered any transfers of title, leases, options or listing agreements

or pending purchase contracts for the subject property within the past 5 years.

Tax and Assessment Analysis

According to the official records of the Camden County Board of Taxation, the tax assessments

and property taxes for the subject property are as follows:

2018 Assessments: Land: $ 6,188,400.00 Improvements: $ 1,623,600.00 Total: $ 7,812,000.00 Tax Rate: $ 2.990 Taxes $ 233,578.80

Comment: The improvement assessment reflects existing building improvements, which will be razed to facilitate redevelopment of the site.

Applying the 97.89% Equalization Ratio for the 2018 Tax Year, which was certified as of

October 1, 2018 for use in tax year 2019, the indicated “True Value” for tax purposes of the

subject property is $7,980,386.10. Given the scope of work in this assignment does not include

developing an estimate of market value for the subject property, no analysis or opinion as to the

reasonableness of the assessed valuations has been developed.

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PART II – FACTUAL DESCRIPTIONS Area Analysis

The subject property is located within

Camden County, which is located in

southwestern New Jersey and covers

228.58 square miles. It is positioned in the

middle of the Camden Labor Area, with

Burlington County to the north and

Gloucester County to the south. The

county’s major city, Camden, is just

across the Delaware River from

Philadelphia and is linked to the

Pennsylvania city by two bridges. Historically an important industrial city, Camden was where

the Campbell Soup Company was founded and where the New York Shipbuilding Company

made ships for the US Navy that helped win both world wars. Today, the county is noted for

regional facilities such as the Cooper Medical Center, a Rutgers University campus, a federal

courthouse and a waterfront entertainment complex. Most of the remainder of the county is

suburban and includes a variety of municipalities ranging from the emerging suburbs of Winslow

Twp. in the western part of the county to long-established communities such as Cherry Hill, with

its many office parks and shopping centers.

Camden County hosts numerous County, State, U.S. and Interstates. Major county roads that

pass through include County Road 534, County Road 536, County Road 537, County Road

543, County Road 544, County Road 551 and County Road 561. State routes that pass through

are Route 38, Route 41, Route 42 (the North-South Freeway), Route 47 (only in Brooklawn),

Route 70, Route 73, Route 90 (the Betsy Ross Bridge), Route 143 (only in Winslow), Route 154

(only in Cherry Hill) and Route 168. U.S. Routes that traverse are U.S. Route 30 and U.S. Route

130. The interstates that pass through are Interstate 76 (part of the North-South Freeway and

the Walt Whitman Bridge), Interstate 295 and Interstate 676 (part of the North-South Freeway

and the Ben Franklin Bridge (which is multiplexed with US 30). Other limited access roads that

pass through are the Atlantic City Expressway and the New Jersey Turnpike. There are five

ACE interchanges that are within the county borders: Exits 44, 41, 38, 33 and 31. The only

turnpike interchange that is in the county is Exit 3 at the border of Runnemede and Bellmawr.

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According to the Greater Raritan Workforce Development Board, the largest employer in

Camden County is Cooper University Health Care, which is located in Camden City and

employs more than 7,000 people. Other major employers in the county with 1,000-2,499

employees include Campbell Soup Company, Bancroft Brain Injury Services and American

Water Works. Also noteworthy, is that there are 3,744 state government employees located in

Camden County.

The population in Camden County over the past eight years has declined (-0.82%). Despite the

decline in population, the county’s population density is approximately 2,229 people per square

mile which makes Camden County a highly populous area.

Population % %2000 Census 508,784 8,414,3612010 Census 513,657 8,791,8942018 Estimate 509,429 8,968,348Growth 2000 - 2010 0.96 4.49Growth 2010 - 2018 -0.82 2.01

2018 Est. Median Age 39.12 40.132018 Est. Average Age 39.50 40.10

POPULATION FACTS & TRENDSCamden County New Jersey


While population growth may have declined slightly, household formation over the past eight

years also decreased slightly (-0.26%). Another important demographic characteristic is that

64.84% of households have no children under the age of 18 living at home, which is similar to

the statewide percentage of 65.05%.

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Households % %2000 Census 185,685 3,064,6422010 Census 190,980 3,214,3602018 Estimate 190,480 3,283,467Growth 2000 - 2010 2.85 4.88Growth 2010 - 2018 -0.26 2.15

Households with 1 or More People under Age 18: 66,967 35.16 1,147,467 34.95Households with No People under Age 18: 123,513 64.84 2,136,000 65.052018 Est. Households by Number of Vehicles 270,283 3,283,467

No Vehicles 20,941 10.99 369,693 11.262018 Est. Households by Household Size 190,480 3,283,467

1-person 51,097 26.82 840,588 25.602-person 55,900 29.35 969,133 29.523-person 33,005 17.33 574,259 17.494-person 28,103 14.75 504,518 15.375-person 13,515 7.09 238,090 7.256-person 5,387 2.83 92,912 2.837-or-more-person 3,473 1.82 63,967 1.95

2018 Est. Average Household Size 2.63 2.67

HOUSEHOLD FACTS & TRENDSCamden County New Jersey


In terms of education attainment, approximately 31% of county residents have a bachelor’s

degree or higher, which is less than statewide figures. On average, residents in the county have

a 30-minute commute to work, which is less than the statewide average of 34 minutes.

% %2018 Est. Pop Age 25+ by Edu. Attainment 349,405 6,198,293

Bachelor's Degree 69,463 19.88 1,435,321 23.16Master's Degree 26,856 7.69 638,910 10.31Professional School Degree 8,910 2.55 150,864 2.43Doctorate Degree 4,037 1.16 92,496 1.49

2018 Est. Pop 16+ by Occupation Classification 242,677 4,366,606White Collar 156,367 64.43 2,857,215 65.43Blue Collar 42,558 17.54 769,006 17.61Service and Farm 43,752 18.03 740,385 16.96

2018 Est. Workers Age 16+ by Transp. to Work 236,464 4,274,982Drove Alone 183,300 77.52 3,071,466 71.85Car Pooled 19,331 8.18 326,508 7.64Public Transportation 17,462 7.38 488,241 11.42Walked 5,518 2.33 135,928 3.18Bicycle 275 0.12 13,930 0.33Other Means 2,689 1.14 64,012 1.50Worked at Home 7,889 3.34 174,897 4.09

2018 Est. Avg Travel Time to Work in Minutes 30.00 34.002018 Est. Average Number of Vehicles 1.70 1.70

EDUCATION & EMPLOYMENTCamden County New Jersey


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Household income in Camden County is lower than statewide figures, with an average

household income of $93,907, and a median household income of $69,546.

% %2018 Est. Households by HH Income 190,480 3,283,467

Income < $15,000 20,843 10.94 282,134 8.59Income $15,000 - $24,999 15,813 8.30 247,013 7.52Income $25,000 - $34,999 14,063 7.38 235,878 7.18Income $35,000 - $49,999 20,796 10.92 334,600 10.19Income $50,000 - $74,999 29,647 15.56 489,727 14.91Income $75,000 - $99,999 23,201 12.18 394,820 12.02Income $100,000 - $124,999 19,302 10.13 327,067 9.96Income $125,000 - $149,999 14,882 7.81 247,394 7.54Income $150,000 - $199,999 15,747 8.27 297,768 9.07Income $200,000 - $249,999 7,094 3.72 145,948 4.45Income $250,000 - $499,999 6,591 3.46 177,176 5.40Income $500,000+ 2,501 1.31 103,942 3.17

2018 Est. Average Household Income $93,907 $112,2732018 Est. Median Household Income $69,546 $78,0262018 Est. Families by Poverty Status 129,271 2,268,374

2018 Families at or Above Poverty 115,993 89.73 2,084,580 91.902018 Families at or Above Poverty with Children 52,849 40.88 953,814 42.052018 Families Below Poverty 13,278 10.27 183,794 8.102018 Families Below Poverty with Children 9,979 7.72 139,468 6.15

INCOMECamden County New Jersey


The median home price in Camden County is $204,593 which is approximately 39% less than

that of the state’s median housing value of $333,253. The majority of homes in the county are

single family detached (55.17%), with a median age of 52 years.

% %2018 Est. Occupied Housing Units by Tenure 190,480 3,283,467

Owner Occupied 129,340 67.90 2,132,497 64.95Renter Occupied 61,140 32.10 1,150,970 35.05

2018 Owner Occ. HUs: Avg. Length of Residence 19 182018 Renter Occ. HUs: Avg. Length of Residence 7 72018 Est. Median All Owner-Occupied Housing Value $204,593 $333,2532018 Est. Housing Units by Units in Structure 207,078 3,654,659

1 Unit Attached 36,185 17.47 340,301 9.311 Unit Detached 114,247 55.17 1,946,394 53.26

2018 Est. Median Year Structure Built 1966 1968

HOUSINGCamden County New Jersey


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Haddonfield Borough is an affluent municipality in

Camden County with a total area of 2.871 miles2, of

which 2.824 miles2 is land area and 0.047 miles2

(1.62%), is water. The Cooper River forms

Haddonfield’s northern border with Cherry Hill. As of the 2010 United States Census, the borough

had a total population of 11,593, reflecting a decline

of 66 (-0.6%) from the 11,659 counted in the 2000

Census. That decline compares to an increase of

31 residents (+0.3%) from the 11,628 counted in the

1990 Census. The 2010 Census also reported 4,436

households and 3,181 families residing in the borough, with a population density of 4,104.9 per

mile2. There were also 4,634 housing units at an average density of 1,640.8 per mile2.

Household characteristics within Haddonfield Borough reflect only 36.0% with children under the

age of 18 living with them, 61.7% being married couples living together, 7.8% with a female

householder with no husband present, and 28.3% being non-families. Additional household

characteristics include 24.9% being made up of individuals and 11.9% having someone living

alone who was 65 years of age or older. The average household size was 2.61 and the average

family size was 3.17. In the borough, 27.7% of the population were under the age of 18, 5.3%

from 18 to 24, 20.4% from 25 to 44, 31.6% from 45 to 64, and 15.0% who were 65 years of age

or older. The median age of borough residents was 42.9 years.

The Census Bureau's 2006-2010 American Community Survey showed that median household

income was $112,105 and the median family income was $129,100. The per capita income for

the borough was $55,955. These income levels are substantially higher than for the county

overall, indicating an affluent population. Only 3.8% of families and 4.9% of the population were

below the poverty line at the time of the last census, including 4.5% of those under age 18 and

7.2% of those age 65 or over.

Schools – The Haddonfield Public Schools comprise a highly regarded district serving students

in pre-Kindergarten through twelfth grade. The district serves students from Haddonfield, along

with those from Pine Valley and Tavistock who attend the district's schools as part of

sending/receiving relationships. Schools in the district include Central Elementary School

(grades K-5), Elizabeth Haddon Elementary School (K-5), J. Fithian Tatem Elementary School

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(PreK-5), Haddonfield Middle School (6-8) and Haddonfield Memorial High School (9-12). The

High School was awarded the National Blue Ribbon School Award of Excellence by the United

States Department of Education, the highest award an American school can receive, during the

2004-05 school year. The school was the 33rd-ranked public high school in New Jersey out of

328 schools statewide in New Jersey Monthly magazine's September 2012 cover story on the

state's "Top Public High Schools", after being ranked 11th in 2010 out of 322 schools listed.

Haddonfield prides itself in being walkable with a majority of streets having sidewalks. Given its

small size of only 2.8 miles2, Haddonfield is extremely walkable.

Roads & Highways – Haddonfield prides itself in being walkable with a majority of streets having

sidewalks. Given its small size of only 2.8 miles2, Haddonfield is extremely walkable. The

borough has a total of 46.74 miles of roadways, of which 37.67 miles are maintained by the

municipality, 8.85 miles by Camden County, 0.09 miles by the New Jersey Department of

Transportation, and 0.13 miles by the New Jersey Turnpike Authority. Route 41 (Kings

Highway) passes through the center of the borough and intersects CR 561 (Haddon Avenue) at

Haddonfield's main business district. I-295 passes through at the southern tip with Exit 31

straddling the border. The New Jersey Turnpike also touches the town boundary, but the closest

exit is Interchange 3 in Bellmawr/Runnemede.

Public Transportation - Haddonfield has a PATCO Hi-Speedline station that links it to

Philadelphia to the west and to Lindenwold to the east. Transfers are available at Lindenwold to

New Jersey Transit's bus and rail routes connecting Philadelphia to Atlantic City. New Jersey

Transit also provides local bus service from within the borough.

Neighborhood Analysis

The subject property is situated at the extreme eastern portion of Haddonfield Borough,

immediately west of Cherry Hill. The neighborhood area is generally bounded by Hopkins Pond

and Driscoll Pond to the north, the Cooper River to the east, Kresson Road to the south and

North Haddon Avenue to the west. The neighborhood area is given over to a wide range of land

uses which primarily include residential dwellings, mostly single family with some multi-family),

Haddonfield Memorial High School (and athletic fields), The J. Fithian Tatem Elementary

School, and the Haddonfield Baptist Cemetery. Also, the former Bancroft NeuroHealth facility is

located on the subject property.

15


Neighborhood properties appear well maintained, and are serviced by the availability of

electricity, telephones, municipal water, municipal sewerage and natural gas lines. The costs to

residents for these utilities are competitive with those of surrounding communities.

The accessibility of the neighborhood area is enhanced by its proximity to major roadways

including State Route 70, Interstate 295, the NJ Turnpike and US Route 30. These roadways

provide connectivity to many other major and secondary area roadways as well as regional

employment centers and retail services. The neighborhood area also benefits from being

situated within 0.9 miles to the Haddonfield PATCO Station.

The four stages of a neighborhood area’s life cycle when analyzing its growth rate include:

• Growth – period during which the market gains public favor and acceptance • Stability – period of equilibrium without marked gains or losses • Decline – period of diminishing demand • Revitalization – period of renewal, redevelopment, modernization, and increasing

demand

The subject property’s neighborhood is presently in the stability stage as evidenced by the slow

pace of land development in recent years. Based upon the life-stage and characteristics of the

neighborhood, including its proximity to public, school and retail uses, the neighborhood is well

suited to residential development.

Land Use Regulation

From a zoning perspective, the subject property is located within the Bancroft Redevelopment Plan, which was adopted on April 6, 2016. The purpose of the Bancroft Redevelopment Plan is

to expand the public open space in Haddonfield for active and passive recreation, foster the

development of an age-targeted and affordable residential development, provide room for

expansion of Haddonfield Borough Board of Education facilities, and retain the 1886 Lullworth

Hall.

16


The subject of our analysis is located within the Residential Zone of the Redevelopment Plan,

as shown in the map below:

Subject

17


Permitted Uses - No building, structure, or premises shall be used, and no building or structure

shall be erected or structurally altered within this zoning district except for the following uses:

• Age-targeted townhouse dwellings • Duplex dwellings for low- and moderate-income households • Age-targeted multi-family dwellings and multi-family dwellings for low- and moderate-

income households • Municipal use

Permitted Accessory Uses - No building, structure or premises shall be used, and no building or

structure shall be erected or structurally altered within this zoning district except for the following

uses:

• Indoor recreation facilities for the use of residents and guests. • Outdoor recreational facilities, including tennis, bocce and other court sports and

community garden for the use of residents and guests. • For multi-family dwellings: a community center and/ or community rooms. • Satellite dish and television antennas providing telecommunications to residents via a

common link within a building. • Television or radio antenna, including satellite dish antenna with a diameter of thirty-six

(36) inches or less, for single family attached uses, only, which is intended for personal use, provided that it does not exceed the height limitation of the district in which it is located. No more than one antenna shall be permitted per dwelling.

• Tool, storage or garden shed not exceeding 100 sf. in floor area for townhouse and duplex dwellings, only.

• Sales office (a temporary use). • Surface parking. • Signs. • Accessory uses on the same lot and customarily incidental to a principal use.

The residential portion of the Redevelopment Area (east of Hopkins Lane) may be developed

with any of the following alternative approaches:

• On a parcel of 8.2 acres or less as determined by the Borough, up to 70 market rate, age-targeted townhouses and 10 duplexes affordable to low- and moderate-income households, for a total development of 80 units.

• On a parcel of 7.0 acres or less as determined by the Borough, up to 105 market-rate multi-family units and 15 multi-family units affordable to low- and moderate-income households, for a total development of 120 units.

• On a parcel of 7.5 acres or less as determined by the Borough, up to 87 market rate dwelling units of both townhouse and multi-family dwelling unit types, along with 87 units affordable to low- and moderate-income households of either duplex or multi-family type, for a total development of 100 units.

• Each redevelopment option shall provide a minimum of ten affordable dwelling units or a set-aside of 12.5% of the total development (market-rate and affordable units), whichever is the higher number. No less than thirty (30%) percent of the low- and moderate-income units must have three bedrooms; the balance may have two bedrooms.

18


Townhouse and duplex dwellings shall conform to the requirements for the TH-Townhome

building type for the D1 district with the following additions and exceptions:

• Maximum average floor area per townhouse unit (not including garages): Two thousand (2,000) square feet

• Maximum number of bedrooms per townhouse unit: Three (3) • A minimum of seventy-five (75%) percent of the market rate townhouses shall be

designed and constructed with the master bedroom on the same floor level as the principal communal living spaces such as the kitchen, dining and living room

• Minimum average floor area per pair (2) of duplex dwellings (not including garage, if offered): Two thousand (2,000) square feet.

• Accessory uses, and structures shall not be located in a front yard.

For a detailed description of the requirements affecting the subject property, the reader is

referred to the Bancroft Redevelopment Plan of the Borough of Haddonfield. The subject’s

property’s proposed redevelopment with age-targeted townhouses and affordable-rate stacked

flats are considered a permitted use within the Redevelopment Plan. Site Analysis

The overall study area is the former Bancroft NeuroHealth facility, a 19.22-acre tract in

Haddonfield Borough. Originally constructed in 1883 on Kings Highway, and bisected by

Hopkins Lane, the property consists of 2 tracts as follows:

• West Side (Block 13, Lot 25) - consisting of 6.07 acres, is the location of Lullworth Hall, an historic structure, along with its carriage house, associated outbuildings and surface parking. These structures constitute an important cultural resource to Haddonfield and as a result will not be demolished as part of the Redevelopment Plan.

• East Side (Block 14, Lot 2) - consists of 13.15 acres improved by ten buildings including Bancroft Hall, Farrington Hall, on-site residences & surface parking. All of these structures will be razed to facilitate the redevelopment of the site.

The subject of this market study is an 8.2-acre portion of Lot 2, identified as 437 King Highway

East. This redevelopment parcel has direct frontage along both Kings Highway East and

Hopkins Lane, situated approximately 1 mile south of State Route 70, 2 miles east of Interstate

295 & the NJ Turnpike and 3 miles west of US Route 30. The remaining 4.95 acres of Lot 2,

which are situated along the eastern and northern boundaries of the property immediately

bordering the Cooper River and Driscoll Pond, are to be preserved for open space.

19


Subject Property Tax Map

Portion of

20


Subject Property Survey

The site is serviced by the availability of electricity, public water, public sewerage, natural,

telephone and cable television lines. The costs to residents for these utilities are considered to

be competitive with surrounding competing submarket areas. The physical and locational

characteristics of the site are well suited to residential development.

Improvement Analysis

The subject of this market study is the former Bancroft NeuroHealth facility constructed in 1883.

The 8.2-acre portion of the site which is proposed for redevelopment, and is the subject of this

market study, is presently improved with a number of buildings, including Bancroft Hall,

Farrington Hall, on-site residences & surface parking, which will be razed to facilitate the

redevelopment of the site.

The redevelopment area is proposed for development with 80 Luxury Age-Targeted

Townhouses, and 10 Affordable-Rate Stacked Flats. The purpose of this market study is to

provide design guidance and performance projections for project development targeted to

‘empty nester’ households in accordance with the redevelopment plan for the property.

Subject

21


Construction documents and architectural specifications have not been prepared for the project

as the purpose of this market study is to provide early reconnaissance to assess market

demand and development viability. Therefore, the analysis and conclusions set forth herein are

based upon the assumption that the eventual construction of the project would reflect

construction designs, materials and finishing commensurate with standards for modern real

estate development in the general submarket area.

Various exhibits depicting initial conceptual plans for the project appear on the following pages:

22


Conceptual Site Plan Illustration

Town Home Concept Plan – Master Bedroom 1st Floor

23


Town Home Concept Plan – 2 Car Garage

Town Home Concept Plan – 2 Car Garage with Elevator

24


PART III – ECONOMICS & DEMOGRAPHICS

Real estate demand is directly affected at the macro and micro levels by a wide range of key

economic and demographic factors. This section of the report will describe these economic and

demographic trends, and their correlation to real estate demand.

Economic Context

Economic Overview - New Jersey’s 21 counties and 565 municipalities comprise 7,417.34

square miles of land area, which fall within 7 Metropolitan Statistical Areas (listed below) at the

center of the Northeast Megalopolis. The 2015 American Community Survey reported a total

estimated population of 8,904,413 in New Jersey, reflecting 2.1% growth from 2010. The

state’s population density of approximately 1,020 people per square mile is more than 12 times

greater that for the US (81 / sq. mile) and exceeds that of the more crowded places around the

world including India (1,000), Belgium (891), Japan (835), Israel (828) and the Philippines (777).

Similarly, the state is highly urbanized with 94 percent of residents residing in urban areas which

are defined as places with a population density of 1,000 people per square mile or greater.

The New Jersey economy has historically been a top performing state due to a combination of

factors including its strategic geographic location between New York City and Philadelphia, a

diverse and highly educated workforce, the presence of both Newark International Airport and

the Port Newark-Elizabeth shipping port, and its high concentration of technology-based jobs.

New Jersey’s per-capita Gross State Income (as calculated by Gross State Product) of

approximately $69,656 exceeds the US figure of approximately $61,065, ranking as 7th highest

in the nation. New Jersey also has the 4th highest percentage of millionaire households in the

United States based on published reports by Phoenix Marketing International and CNBC.

The combination of New Jersey’s past economic success and dense population have resulted in

extremely high land values in the state. According to a study published on April 3, 2015 titled

“New Estimates of Value of Land of the United States by William Larson of the Bureau of

Economic Analysis (BEA), New Jersey has the highest land values in the continental US. New

Jersey is also tied with Rhode Island for being the most developed state in the nation, with 31%

of all land area being developed. The study further reported that New Jersey land was worth an

average of $196,410 per acre which is the highest in the US, compared to a national average

value of $12,139 per acre for the US overall. The only other states with average land values

25


more than $100,000 per acre were Rhode Island ($133,730), Connecticut ($128,820) and

Massachusetts ($102,210). Because high land costs pass through directly to the cost of real

estate, the trend for residential development has been toward high- density forms of multi-family

housing, including apartments and townhouses, and away from single-family homes.

Gross State Product – In 2017, New Jersey current-dollar GDP was $591.7 billion and ranked

8th in the nation, representing a 2.7% increase from the prior year. The largest single industry

contributor to the state’s economy was Finance/Insurance/Real Estate/Rental & Leasing (FIRE)

which accounted for 24% of the state’s GDP, followed by Professional and Business Services

accounting for 15.8%. This sector has however experienced minimal growth in recent years with

the majority of job creation having been concentrated in lower paying job sectors.

Job Creation – New Jersey experienced one of the slowest economic recoveries of all states

following the 2007-2009 economic recession. One example is that the State did not recover the

jobs lost during the recession until 31 months after nation overall (August 2016 vs. January

2014). More recently however, job gains have been occurring at a faster pace, with a gain of

17,400 non-farm jobs in October. On a year-to-date basis (January-October), the State has

realized a net increase of 69,700 non-farm jobs compared to 41,400 during the same period in

2017. Should this pace continue, nearly 69,700 jobs will be added by year-end, making it the

strongest year for job growth on record (dating back to 1990).

26


Unemployment – Because of the faster job creation, NJ’s unemployment rate has improved

significantly, declining from a cyclical peak of 9.4% in 2009 to 4.1% today, the lowest since prior

to the 2007-2009 economic recession.

Source: US Dept. of Labor, Bureau of Labor Statistics

21.8

43.536.7

45.752.6

61.9

43.4

69.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0Jo

bs C

reat

ed in

Tho

usan

ds


NJ Non-Farm Job Gains by Year

4.4

9.7

4.1

3.6

4.6

5.6

6.6

7.6

8.6

9.6

U-3

Une

mpl

oym

ent %

NJ Unemployment-Seasonally AdjustedOctober of Each Year

27


As a result of this economic improvement, unemployment in New Jersey is only nominally

higher than for the US overall.


Personal & Household Income – The Bureau of Economic Analysis (BEA) reports that Total

Wages & Salaries in New Jersey are increasing at an annualized pace of 4.1% compared to an

increase in the Consumer Price Index (CPI) of only 2.0% over the past year. That personal

income is rising faster than the cost of consumer goods indicates that disposable income is

expanding in the state.

SOURCE: US Bureau of Economic Analysis, Otteau Group, Inc.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

USNJ

3.7% 4.1%

Unemployment

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

1.47%

1.11%

3.78%3.49% 3.48%

4.07%

1.8% 2.1%1.6% 1.7% 2.0% 2.0%

Year

-on-

Year

Cha

nge

Total Wages & Salaries vs. CPI

NJ Wages & Salaries NY/NJ CPI

28


Economic Forecast – A recent analysis by the Federal Reserve Bank of Philadelphia forecasts

continuing economic growth in the New Jersey at an annualized pace ranging between 1.5%-

4.5% in the future. This projected growth rate is consistent with the 3.5% growth rate for the US

overall in 2018.Q3.

Source: Federal Reserve Bank of Philadelphia

Local Office Employment - From an employment perspective, the local professional office

market contains 17-Million Ft2 and 108.5-Million Ft2 of office building space within a 5-mile & 10-

mile radius of the subject property, respectively. This equates to 216,000 Ft2 per Mile2 and

345,000 Ft2 per Mile2, respectively, which is well above the statewide average of 42,000 Ft2 per

Mile2. Therefore, an abundance of employment opportunities exists within the local market area

which is highly supportive of residential development.

29


Source: US Census Bureau, Environics Analytics, Costar, Otteau Group, Inc.

Demographic Factors

New Jersey has also undergone significant demographic changes over the past decade which

have significant implications for real estate development. These trends, which include shrinking

household sizes and increasing numbers of childless households, have reduced demand for

construction of traditional single-family detached housing while increasing demand for multi-

family housing, including apartments and townhouses. This section of our report will explore

these changes, and their significance to housing demand.

Interstate Migration – Directly relevant to projecting demographic and real estate market

changes is that domestic outmigration has been occurring at an elevated pace in recent years

as residents leave New Jersey in search of alternative states with lower living, housing and

taxation costs. New Jersey ranks among the worst states for residents relocating to other states,

including older age residents entering their retirement years, as evidenced by a recent survey of

55+ households by AARP which found that New Jersey ranked as the worst place for retirement

in the US. The state also ranks as the 6th highest in terms of people living here who want to

move to another state. According to data published by the US Census Bureau, ‘net’ domestic

migration for New Jersey has been negative for more than a decade. These trends have

resulted in a cumulative net loss of approximately 850,000 residents since 2002. There has also

been an acceleration in the outmigration recent in recent years which averaged 60,000 over the

5-year period from 2007-2011 compared to 80,000 from 2012 to 2016.

5-Miles 10-Miles Camden County New Jersey

Existing Buildings 1,451 4,613 1,802 21,907Occupied SF 16,967,225 108,481,272 16,784,277 365,427,188Total # HH's 214,947 768,847 190,480 3,283,467Office Space per HH 79 141 88 111Mile2 79 314 227 8,721Occupied Office Space per Mile2 216,000 345,000 74,000 42,000

OFFICE SPACE

30


SOURCE: US Census Bureau, Otteau Group, Inc.

Another study published by United Van Lines in 2018 ranked New Jersey as having the 2nd

highest percentage of outbound shipments (63%) of household goods in the nation.

SOURCE: United Van Lines

According to the survey, top reasons for the move included job relocation and retirement

followed by lifestyle, family and health, which accounted for smaller shares.

31


SOURCE: United Van Lines, Otteau Group, Inc.

These domestic outmigration trends have a dampening effect on demand for all forms of real

estate as residents leave the state. On a gross basis, more than two million people left New

Jersey between 2005 and 2014, taking with them billions of dollars in income and economic

activity. According to a report by the Business and Industry Association, outmigration over this

10-year span cost the state $18 billion in net adjusted gross income, 75,000 jobs, $11.4 billion in

economic activity, $4.2 billion in labor income and $8.4 billion in household spending.

Population Change – Haddonfield’s modest population decline of 0.65% from 2000 to 2010 has

accelerated, falling 3.63% since 2010 compared to a 2.01% increase for the state overall.

32



This trend is also evident in the number of households residing in Haddonfield, which has fallen

by 3.1% since 2010 compared to a 2.15% increase for the entire state of New Jersey.

Source: US Census Bureau, Environics Analytics, Otteau Group, Inc.

A more careful look at Haddonfield’s population change indicates the declines to be occurring

across a wide range of ages (see table below). The declines in the number of younger-age

Population2018 Estimate 11,172 509,429 8,968,3482010 Census 11,593 513,657 8,791,8942000 Census 11,669 508,784 8,414,361Growth 2010 - 2018 -3.63% -0.82% 2.01%Growth 2000 - 2010 -0.65% 0.96% 1.30%Households2018 Estimate 4,299 190,480 3,283,4672010 Census 4,437 190,980 3,214,3602000 Census 4,498 185,685 3,064,642Growth 2010 - 2018 -3.11% -0.26% 2.15%Growth 2000 - 2010 -1.36% 2.85% 4.88%

Demographic ChangeHaddonfield Borough Camden County New Jersey

33


adults (20-24) and 55+ cohorts indicate a need to create more diversification in its housing stock

in the form of townhomes or apartments.

Source: US Census Bureau, Otteau Group, Inc.

Smaller Size Households – The size of households in New Jersey, and locally, has been

shrinking in recent years whereby those that are either 1-person or 2-persons in size now

account for a majority. These smaller households now account for 57% of total households in

Haddonfield, 59% within 5-miles, 61% within 10-miles and 60% within 15-miles.


Childless Households - Since peaking in the 1980’s, the percentage of New Jersey households

with children living at home has steadily declined to 35% today, with continued declines likely in

the future. This trend, which is rooted in New Jersey’s economic conditions, is anticipated to

drive future housing demand increasingly toward smaller homes including multi-family housing.

8%0%

5%

-22%

-34%

-1%

13%

-11%

-20%

-2%

49%

-23%

0%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Population Change By Age (2010 v. 2016)Haddonfield Borough

% % % %2018 Est. Households by Household Size 4,299 124,444 554,565 1,104,3341-person 1,083 25.19 35,724 28.71 175,731 31.69 343,746 31.132-person 1,350 31.40 37,278 29.96 160,265 28.90 319,882 28.973-person 695 16.17 20,802 16.72 89,087 16.06 182,118 16.494-person 737 17.14 17,350 13.94 69,632 12.56 139,469 12.635-person 300 6.98 8,149 6.55 34,866 6.29 69,717 6.316-person 101 2.35 3,202 2.57 14,832 2.67 29,413 2.667-or-more-person 33 0.77 1,939 1.56 10,152 1.83 19,989 1.81


34



This is also true in the local submarket area with ratios of 63% in Haddonfield Borough, 67%

within 5 miles, 69% within the 10 miles, and 68% within 15-miles.


Homeownership Rates – – Consistent with national trends, the homeownership rate in New

Jersey declined precipitously with the onset of the Great Recession. The homeownership rate in

NJ has declined from 71.3% in 2005.Q1 to a cyclical low of 60.3% in 2016.Q2. Since then,

however, the homeownership rate in the state has risen to 66%, indicating increasing demand

for ‘For-Sale’ housing.

% % % %Households with No People under Age 18: 2,720 63.27 83,140 66.81 379,916 68.51 750,563 67.97Married Couple Family 1,308 48.09 31,085 37.39 110,042 28.96 223,270 29.75Other Family, Male Householder 49 1.80 2,931 3.52 14,380 3.79 29,388 3.92Other Family, Female Householder 147 5.40 7,287 8.77 34,934 9.20 76,252 10.16NonFamily, Male Householder 448 16.47 17,975 21.62 102,814 27.06 190,426 25.37NonFamily, Female Householder 768 28.23 23,862 28.70 117,746 30.99 231,227 30.81

0 - 5 Miles 0 - 10 Miles 0 - 15 MilesHaddonfield Borough

35


Source: US Census Bureau; Otteau Group, Inc.

Further supporting the proposed construction of townhouses on the subject site are the elevated

homeownership rates om the local submarket which presently stand at 82% within Haddonfield

Borough and 67% within a 5-mile radius.


Economic & Demographic Trend Conclusions: When considered collectively, these conditions

indicate that future housing demand will be largely concentrated in the multi-family forms of

housing that appeal to smaller size households without children living at home. A substantial

share of that demand will be associated with older age (55+) households, without any children

living at home, who are seeking to downsize their living space as they enter their retirement

years. Incorporating ‘the Age Targeted’ design elements recommended in this report will

increase the likelihood that purchasers of the townhomes will consist in large part of 55+

households.

% % % %2018 Est. Occupied Housing Units by Tenure 4,299 124,444 554,565 1,104,336Housing Units, Owner-Occupied 3,538 82.30 83,174 66.84 330,193 59.54 676,094 61.22Housing Units, Renter-Occupied 761 17.70 41,270 33.16 224,372 40.46 428,242 38.78

0 - 15 Miles0 - 5 Miles 0 - 10 MilesHaddonfield Borough

36


PART IV – HOUSING MARKET ANALYSIS Market Trends – Housing market conditions in New Jersey remain strong in 2018 as evidenced

by elevated sales pace, low unsold inventory and rising home prices. The New Jersey housing

market realized more than 108,000 home purchase contracts during the 1st 11-monthsof 2018,

about the same as last year. These strong performance indicators are a direct result of an

expanding economy and rising homeownership.


Shifting to the supply side of the equation, the number of homes on the market remains low

which is limiting choices for home buyers. This Unsold Inventory has increased over the past

year however by 1,988 homes (5%) as rising interest rates have reduced affordability. Still, the

number of homes on the market remains 35,000 below the cyclical peak back in 2007.

105,

468

86,3

10

80,4

17

64,1

03

67,7

36

61,8

07

57,1

90 69,4

94 81,0

00

77,3

89 91,5

55

105,

577

108,

652

108,

586

0

20,000

40,000

60,000

80,000

100,000

120,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

NJ YTD Home Purchase ContractsJanuary-November


37



Based upon the current pace of home sales, today’s unsold inventory equates to 4.8-months of

sales (non-seasonally adjusted), which is the same as last year. Currently, most of New

Jersey’s 21 counties have less than 8.0 months of supply, which is a balance point for home

prices. Camden County, in which Haddonfield is Located, has 5.8 months of supply indicating

balanced market conditions.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

43,3

84

58,9

07 64,0

02

64,2

73

59,1

10 64,1

12

60,7

01

48,2

24

45,7

29

49,1

98

47,9

28

41,6

65

36,6

90

38,6

78

NJ Unsold InventoryNovember of Each Year


38


Another favorable trend has been the declining share of homes with delinquent mortgages that

are in foreclosure or pre-foreclosure. Delinquency and foreclosure rates are at their lowest point

in over a decade due to the combined effects of job creation and home price appreciation. The

percentage of delinquent mortgage loans in New Jersey that are 90+ days past due stayed the

same from the prior month, at to 2.6% while New York leads the nation with 3.1%. Rounding

out the list of states with the highest delinquency rates are Mississippi (3.0%), Louisiana (2.7%),

New Jersey (2.6%), Maine (2.4%), Florida (2.3%), Delaware (2.1%), Alabama (2.1%), and

Pennsylvania (2.0%)

COUNTYContract

SalesUnsold

InventoryMarket Swing

Total Market <$400k

$400k-$599,999

$600k-$1mil

$1,000,001-$2.5mil

>$2.5 mil

Atlantic −1% −11% 5% 8.3 7 15 23 47 17Bergen −1% 8% −5% 4.2 2 4 5 14 35Burlington 1% 6% −3% 5.4 5 9 14 ∞ ∞Camden 1% 6% −3% 5.8 6 7 10 10 ∞Cape May 1% −9% 5% 9.1 7 10 14 12 18Cumberland 27% 37% −5% 8.4 8 ∞ ∞ ∞ ∞Essex −1% 16% −9% 3.3 3 4 3 9 ∞Gloucester 6% 9% −2% 7.0 7 11 29 ∞ ∞Hudson −6% 26% −16% 4.5 3 6 5 8 13Hunterdon −5% 5% −5% 6.2 5 5 26 ∞ ∞Mercer −4% 20% −12% 5.3 5 7 7 31 ∞Middlesex 0% 11% −6% 3.5 3 4 6 10 Ν/ΑMonmouth −2% −4% 1% 4.0 2 4 6 13 22Morris −3% 8% −6% 3.9 3 4 6 11 21Ocean 4% 11% −4% 5.1 4 8 7 12 16Passaic −4% −5% 1% 3.8 3 4 6 16 Ν/ΑSalem 25% 4% 11% 8.3 8 ∞ ∞ ∞ Ν/ΑSomerset −2% 6% −4% 4.4 3 4 8 19 25Sussex 0% −15% 8% 5.3 5 7 17 ∞ ∞Union −1% 10% −6% 3.5 3 4 5 5 ∞Warren 8% 2% 3% 4.8 4 8 ∞ ∞ ∞Statewide 0% 5% −3% 4.8 4.2 5.1 6.4 12.5 26.5

MarketTRAC Monthly by OTTEAU.com2018 YTD

% change Months Supply

39


SOURCE: CoreLogic & Otteau Group, Inc.

On a local level, the greatest concentrations of mortgage delinquencies in New Jersey continue

to be in the state’s largest cities and rural places which lead the state in the ratio of foreclosure

actions-to-housing units. In Camden County, the rate of mortgage delinquency and foreclosure

actions remain elevated.

SOURCE: Federal Reserve Bank of Philadelphia

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

NY NJ PA US

3.1%2.6%

2.0%

1.5%

Mortgage Delinquency 90+ Days DQ%

40


This favorable conditions in housing market conditions has resulted in rising home prices in New

Jersey, which increased by 4.9% in 2017, 5.8% in 2018.Q1, 4.4% in 2018.Q2 and 3.9% in

2018.Q3.

Source: Federal Housing Finance Agency (FHFA) & Otteau Group, Inc.

Focusing next on housing market conditions in the Camden County submarket area, it had a

4.1-month supply of unsold housing inventory in Q3 (non-seasonally adjusted), which was less

than one year earlier when unsold inventory equated to 4.5 months of supply. This compares to

4.3 months of unsold inventory for the state overall indicating that county market conditions are

stronger than what’s occurring at the state level. On a year-to-date basis, the pace of home

sales has increased by 1.4% in Camden County compared to the same period last year.

11.2%12.0%

15.7%

13.1%

14.9%

12.9%

1.2%

-2.1%

-8.5%

-4.5%

-2.4%

-5.6%

-0.1%

2.7%2.6%1.7%

3.1%4.9%

5.8%4.4%3.9%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0% NJ Annual House Price Change

41



At the local level, Haddonfield Borough had a 3.5-month supply of unsold housing inventory in

October, which is lower than one year earlier when unsold inventory equated to 7.1 months of

supply. Contrary to what is occurring at the state level, the analysis in the graph below indicates

that the pace of home sales in Haddonfield Borough decreased by 0.5% year-to-date.




42


Home prices have been rising modestly in New Jersey and housing in Haddonfield Borough has

followed this trend, seeing a 5.5% increase over the past year on a median basis.

Collectively, these local housing market conditions indicate strong home purchase demand in

Camden County, and in Haddonfield Borough, which is favorable to the proposed development

of attached age targeted townhouse dwellings in the study area.

Townhouse Competitive Set

To quantify the market dynamics for age-targeted townhouses, we have investigated the

regional market area to identify places where competitive townhouse product has been

constructed. We have included The Mews at Haddonfield in the competitive site, despite it not

being an age-targeted community when originally constructed in 1970, because of its proximity

to the subject property on the opposite side of Kings Highway South.

Following is a summary of this competitive set of townhouse properties.

11/1/2017 11/1/2018 % Change

Average $497,674 $531,083 6.7%Median $465,000 $490,500 5.5%

Home Price TrendsHaddonfield Borough

43


Proximity to SubjectProximity to Public TransportationWalk Score Rating 49 - Car DependentApprox. Year BuiltDeveloperDeveloper Web SiteMarket Segment All-Age / Market RateProduct TypeTotal UnitsNet SalesUnsold UnitsAverage Lot SizeAverage House Size (SF)Average Base PriceAverage Price/SFMarketing Period Project Life (Months)Sales Velocity (Project Life)Resales (Past 90 Days)Resales Velocity (Past 90 Days)Number of Active ListingsIncentivesTypical Buyer ProfileUpgrades (average)Elevator NoneParkingBasementSite PremiumsAMENITIES: PRICING MATRIX

Property Address118 The Mews

128 The Mews

122 The Mews

Bedroom Count 3 3 3Master Bedroom Location 2nd Floor 2nd Floor 2nd Floor

Sale Date ACTIVE 1/11/2018 11/7/2018House Size (sf) 2,176 3,136 2,176

Sale Price $515,000 $545,000 $510,000$ Price / SF $236.67 $173.79 $234.38

Days on Market 145 43 137SOLD SOLD

Average sale price: $527,500Average house size: 2,656Average price per sf: $198.61

Average DOM 90

1 mile to Haddonfield Train Station; 500 feet to Kings Hwy E. @ Lee Ln. Bus Stop

COMPETING TOWNHOUSE PROJECTTHE MEWS AT HADDONFIELD

Haddonfield Borough - Camden County0.12 miles

1970Not availableNone available

Townhouses41

1

410Common Areas - Condominium Ownership2,656$527,500$198.61Not availableNot availableNot available10.33

Not applicableEmpty NestersNot applicable - fully upgraded units

Surface ParkingFull/finishedBuilt into pricingNone

44


Proximity to SubjectProximity to Public Transportation 13 miles to Woodcrest Train StationWalk Score Rating 18 - Car DependentApprox. Year Built New ConstructionDeveloperDeveloper Web SiteMarket SegmentProduct TypeTotal UnitsNet SalesUnsold UnitsAverage Lot SizeAverage House Size (SF)Average Base PriceAverage Price/SFMarketing Period Project Life (Months)Sales Velocity (Project Life)Net Sales (Past 90 Days)Sales Velocity (Past 90 Days)Standing InventoryIncentivesSources of BuyersUpgrades (average)ElevatorParking 2 Car GarageBasementSite PremiumsAMENITIES:

PRICING MATRIX

Property Address500 Hazeltine

Circle619 Tournament

Drive625 Tournament

DriveBedroom Count 3 3 3

Master Bedroom Location 1st Floor 1st Floor 1st FloorSale Date Under Contract 8/03/2018 10/5/2018

House Size (sf) 3,064 3,313 2,540Base Price $613,060 $708,112 $559,840$ Price / SF $200.08 $213.74 $220.41

Days on Market 141 2 32Sold Sold

Average base price: $627,004Average house size: 2,972Average price per sf: $210.95

$210.95

COMPETING TOWNHOUSE PROJECTTHE MEWS AT LAUREL CREEK

Moorestown Township - Burlington County8.9 miles

Toll Brotherswww.tollbrothers.comAge-RestrictedTownhouses1221220Common Areas - Condominium Ownership2,972$627,004

$0-40,000

May 2013 - November 2018661.8531.00NoneNoneLocalAveraged $45,000-$50,000None

Full / Unfinished

Clubhouse with fitness center and club room, swimming pool, bocce courts & putting green, walking and bike trails

45


Proximity to SubjectProximity to Public TransportationWalk Score RatingDeveloperDeveloper Web SiteMarket SegmentProduct TypeTotal UnitsNet SalesUnsold UnitsAverage Lot SizeAverage House Size (SF)Average Base PriceAverage Price/SFMarketing Period Project Life (Months)Sales Velocity (Project Life)Net Sales (Past 90 Days)Sales Velocity (Past 90 Days)Standing InventoryIncentivesSources of BuyersUpgrades (average)ElevatorParkingBasementSite Premiums

AMENITIES:PRICING MATRIX

Model Names Edgely Milford Radcliffe VassarRadcliffe

Elite Strathmere Bucknell Bryn AthynBedroom Count 2 2 2 3-4 2 3-4 3 3-4

Master Bedroom Location 1st Floor 1st Floor 1st Floor 1st Floor 1st Floor 1st Floor 1st Floor 1st FloorHouse Size (sf) 1,441 1,726 1,886 2,324 1,956 2,716 2,616 2,676

Base Price $476,995 $501,995 $507,995 $526,995 $527,995 $531,995 $564,995 $569,995$ Price / SF $331.02 $290.84 $269.35 $226.76 $269.94 $195.87 $215.98 $213.00


$0-50,000

April 2016 - Present322.2582.67

Langhorne/Newtown PA, NJ, and NYTypically 15% of base priceNone

$30,000 for unfinished basement

114Common Areas - Condominium Ownership2,168

20$5,000 off closing costs when financing with in house mortgage company

$242.72$526,120

2 miles to Woodbourne Train Station20 - Car Dependent

2 Car Garage

COMPETING TOWNHOUSE PROJECTREGENCY AT YARDLEY

Lower Makefield Township - Bucks County, PA21.8 miles

Toll Brotherswww.tollbrothers.comAge-RestrictedTownhomes and Attached Ranch186

Clubhouse, Fitness Center, Indoor and Outdoor Pool, Club Rooms, Library, Tennis and Bocce Courts, Hot Tub

72

46


Proximity to SubjectProximity to Public Transportation 7.7 miles to Woodbourne Train StationWalk Score Rating 4 - Car DependentApprox. Year Built 2010-2017DeveloperDeveloper Web SiteMarket SegmentProduct TypeTotal UnitsNet SalesUnsold UnitsAverage Lot SizeAverage House Size (SF)Average Base PriceAverage Price/SFMarketing Period Project Life (Months)Sales Velocity (Project Life)Resales (Past 90 Days)Resales Velocity (Past 90 Days)Number of Active ListingsIncentivesSources of BuyersUpgrades (average)ElevatorParkingBasementSite PremiumsAMENITIES:

PRICING MATRIX

Property Address1 Elfreths

Court64 Elfreths

Court2 Franklin

Circle5 Rittenhouse

Circle15 Rittenhouse

CircleBedroom Count 3 3 3 3 3

Master Bedroom Location 1st Floor 1st Floor 2nd Floor 1st Floor 1st FloorSale Date Active 11/29/2017 4/2/2018 6/29/2018 7/12/2018

House Size (sf) 3,313 3,326 4,076 3,940 3,940Sale Price $728,000 $650,000 $775,000 $720,000 $725,000

$ Price / SF $219.74 $195.43 $190.14 $182.74 $184.01Days on Market 170 41 211 154 98

Sold Sold Sold Sold


Clubhouse with fitness center, lounge room for billiards & cards, bocce court, indoor & outdoor swimming pools

NoneLocal & NJNot applicable - fully upgraded unitsNone2 Car Garage

Built into pricingVaries - some Full / Unfinished

Not availableNot availableNot available00.001

1200Common Areas - Condominium Ownership3,719$719,600$193.49

COMPETING TOWNHOUSE PROJECTDELANCEY COURT

Newtown Borough - Bucks County, PA24.8 miles

Toll Brotherswww.tollbrothers.comAge-RestrictedTownhouses120

47


Proximity to SubjectProximity to Public Transportation 6.4 miles to Yardley Train StationWalk Score Rating 0 - Car DependentApprox. Project Age New ConstructionDeveloperDeveloper Web SiteMarket SegmentProduct TypeTotal UnitsNet SalesUnsold UnitsAverage Lot SizeAverage House Size (SF)Average Base PriceAverage Price/SFMarketing Period Project Life (Months)Sales Velocity (Project Life)Net Sales (Past 90 Days)Sales Velocity (Past 90 Days)Standing InventoryIncentivesSources of BuyersUpgrades (average)ElevatorParking 2 Car GarageBasementSite PremiumsAMENITIES: NonePRICING MATRIX

Property Address 5 Hillyer Lane 7 Hillyer Lane 6 Hillyer LaneBedroom Count 3 3 3

Master Bedroom Location 1st Floor 1st Floor 1st FloorHouse Size (sf) 2,676 2,616 2,616

Base Price $674,995 $756,995 $969,995$ Price / SF $252.24 $289.37 $370.79

Days on Market 23 207 174Under Contract Under Contract Under Contract


Full / UnfinishedNot available

NoneNoneLocal or NJBuilt into pricingNone

June 2013 - October 2018651.4831.00

COMPETING TOWNHOUSE PROJECTENCLAVE AT UPPER MAKEFIELD

Upper Makefield Township - Bucks County, PA25.6 miles

Toll Brotherswww.tollbrothers.comAge-RestrictedTownhouses96960Common Areas - Condominium Ownership2,636$800,662$303.74

48


COMPARABLE FOR-SALE TOWNHOUSE PROJECTS LOCATION MAP

49


DESIGN RECOMMENDATIONS:

Townhouse Design Characteristics – Our investigation of the competitive set indicates the most

common design to include a mix predominated by 3-bedroom floor plans with a smaller share of

2-bedroom models. (see table below).

In conducting this investigation, we have determined that the defining characteristics for

successful new construction projects offering age-targeted townhouses include the following

design elements:

11. Floor plan configurations which include either of the following: a. A master bedroom located on the 1st floor. These townhouse models should

have a minimum width of 30’ to provide a functional floor plan arrangement. b. An elevator option to access an upper floor master bedroom.

12. A stall shower, instead of a bathtub, in the master bathroom to allow for easier access by older age persons.

13. An optional split-bedroom floor plan which creates a 2nd master bedroom geared towards adult children or an elderly parent.

14. A laundry room located on the same floor as the master bedroom. 15. Relatively generous living areas which are larger in size than the typical townhouse

dwelling, and therefore targeted to more affluent households who are trading down from single family homes.

ITEMProject Name

MunicipalityAverage Base Price $527,500 $627,004 $526,120 $719,600 $800,662Average House Size 2,656 2,972 2,168 3,719 2,636Base Price Per SF $199 $211 $243 $193 $304Dwelling Units 41 122 186 120 96

Market Segment

Unit Design

Age of BuildingsMaster Bedroom LocationElevatorMedian Income-TownMedian Income-CountyMedian Income-Delta

Amenities

ParkingMarket-Rate Mix Analysis

2 Bedroom3 Bedroom

2 Car Garage

None

2,636 2,583

Ft2n/a

3,719 2,656

Ft2n/a

2,972

New Construction

Townhomes

115%

$151,576$79,559

Ft2n/a

Ft21,752

Ft2n/a

$126,218$80,034

$82,235$79,559

$108,017$79,559

Surface Parking 2 Car Garage 2 Car Garage 2 Car Garage

All-Age / Market-Rate Age Restricted Age Restricted Age Restricted Age Restricted

58% 3% 36% 91%

2nd Floor 1st Floor 1st Floor 1st & 2nd Floors 1st FloorNone None None None None

$135,700$63,028

None


Clubhouse, Fitness Center, Indoor and Outdoor Pool,

Club Rooms, Library, Tennis and Bocce Courts, Hot Tub

48 years New Construction New Construction 1-8 years

Clubhouse with fitness center, lounge room for billiards & cards, bocce court, indoor & outdoor

swimming pools

7.7 miles to Woodbourne Train Station

1 hour to Center City Philadelphia (SEPTA)

Townhomes

The Mews at Haddonfield The Mews at Laurel Creek Regency at Yardley

Townhomes Townhomes Townhomes and Attached Ranch

Enclave at Upper Makefield

PROGRAM MIX ANALYSIS - For Sale TownhomesPROJECT 1 PROJECT 2 PROJECT 3 PROJECT 5PROJECT 4

Delancey Court

Haddonfield Borough Moorestown Township Lower Makefield Township Upper Makefield TownshipNewtown Township

Transportation Access

1 mile to Haddonfield Train Station; 500 feet to Kings

Hwy E. @ Lee Ln. Bus Stop

13 miles to Woodcrest Train Station

2 miles to Woodbourne Train Station

6.4 miles to Yardley Train Station

22 min to Center City Philadelphia (PATCO)

25 min to Center City Philadelphia (PATCO)

1 hour to Center City Philadelphia (SEPTA)

1 hour & 8 min to Center City Philadelphia (SEPTA)

50


16. The majority of models offering 2-car garage capacity 17. 9’ interior ceiling heights 18. High energy-efficiency features to reduce energy costs including efficient HVAC

systems, appliances, windows and insulation. 19. Gas fired fireplace in the living room. 20. A tendency to be located in affluent communities wherein household income is higher

than exists in the larger market area. We recommend the townhouses be constructed with “Above Average” quality materials and

finishing with 9’ ceiling heights and a large walk-in closet in the master bedroom suite. The

kitchens should feature upscale cabinetry selections and solid surface counters with stainless

steel appliances to include a counter-top range, wall oven, refrigerator, dishwasher and built-in

microwave oven. We also recommend that the townhouses be equipped with natural gas fired

HVAC systems and appliances. Standard flooring should include a mix of hardwood in the

living areas, ceramic tile in bathrooms, and plush carpeting in the bedrooms. Because

connectivity is an important feature in modern housing, the dwellings should be prewired with

High-speed Ethernet wiring. Parking for residents should be provided with private attached garage spaces, with either a 1 or

2 car capacity. Additional parking should be provided by driveways and clustered banks of

surface guest parking spaces. Based upon our review of the conceptual plans for the Bancroft site, the proposed design of the

townhouse aligns with Age-Targeted housing, contingent upon the Redevelopment Plan being

amended to increase the maximum living area from 2,000 to 2,250 square feet. Projected Pricing The next step in our analysis is to develop a projection of achievable selling prices for the

conceptual development of attached townhouse dwellings within the study area. In developing

projections of anticipated selling prices for these dwellings, we have extracted market data for

competitive projects in the local submarket area, which has been adjusted for differences to the

subject project. This methodology is based upon the ‘Principle of Substitution’ which holds that

an informed purchaser would pay no more for a property than the cost of acquiring an existing

property offering similar utility. Because this approach is based upon the actions of informed

buyers and developers in the local submarket, it provides a reliable means for projecting sales

revenue for the project. The results of these comparisons are then reconciled to forecast selling

prices for the subject project.

51


Project NameMunicipalityCountyProximity to SubjectAverage Base Price Avg. Sale Price $527,500 Avg. Sale Price $627,004 $526,120 Avg. Sale Price $719,600 Avg. UC Price $800,662Average House Size 2,656 2,972 2,168 3,719 2,636Base Price Per SF $199 $211 $243 $193 $304Total Units 41 122 186 120 96Project Life (mos.) n/a 66 32 n/a 65Net Sales - Project Life 41 122 72 120 96Net Sales - 90 Days Resales 2 3 8 Resales 0 3Sales Pace - Project Life n/a 1.85 2.25 n/a 1.48Sales Pace - 90 Days 0.67 1.00 2.67 0.00 1.00DESCRIPTION +(-) adjustment +(-) adjustment +(-) adjustment +(-) adjustment +(-) adjustment

Market SegmentLocational Appeal + + + -

+ -

Unit Design & Appeal

Age of Dwellings + +Parking Type

Basements

Amenities - - -

Avg. $ / House Size Solve For / 1,992 $527,500 / 2,656 + $627,004 / 2,972 + $526,120 / 2,168 + $719,600 / 3,719 + $800,662 / 2,636 +Net Adj. (Total) 26% 15% 13% 44% -22%Adjusted Base Price $250 $242 $274 $278 $236

$256.00

BASE SELLING PRICE ANALYSIS

Clubhouse with fitness center, lounge room for billiards & cards, bocce court, indoor & outdoor swimming pools

Rural TypicalAbove Average

Townhomes

1-8 years

Townhomes and Attached RanchNew Construction

DESCRIPTIONAge RestrictedNewton Borough

DESCRIPTIONAge RestrictedLower Makefield

Lower Makefield TownshipBucks County, PA

21.8 miles

Newtown TownshipBucks County, PA

24.8 miles

SUBJECT PROJECT 1 PROJECT 2Bancroft Redevelopment The Mews at Haddonfield

PROJECT 3Regency at YardleyThe Mews at Laurel Creek

PROJECT 4Delancey Court

0.12 miles 8.9 miles

Haddonfield Borough Haddonfield Borough Moorestown TownshipCamden County, NJ Camden County, NJ Burlington County, NJ

Solve For1,992

DESCRIPTION DESCRIPTION DESCRIPTION

Solve For

Age Targeted All-Age / Market-Rate Age RestrictedHaddonfield Borough Haddonfield Borough Moorestown Township

Above Average

Neighborhood Appeal +Walkscore = 20 +Walkscore = 4Suburban DrivableTypicalAbove Average

None Full Full Varies - Some Full Varies - Some Full

RuralTypical

None None


+

Above Average

Site Appeal Walkable Downtown

Upper Makefield Township+Walkscore = 0+

Typical

Townhomes Townhomes Townhomes

Walkable Downtown Suburban DrivableTypical Typical

PROJECTED AVERAGE BASE PRICE FOR SUBJECT PROJECT: per-square-foot

Walkscore = 59 Walkscore = 49 Walkscore = 18

Quality of Construction Above Average Average

New Construction 48 years New Construction

PROJECT 5Enclave at Upper MakefieldUpper Makefield Township

Bucks County, PA25.6 miles

DESCRIPTIONAge Restricted

Surface Parking 2 Car Garage 2 Car Garage 2 Car Garage 2 Car Garage2 Car Garage

Townhomes

New Construction

Full

None

Clubhouse, Fitness Center, Indoor & Outdoor Pool, Club Rooms, Library, Tennis and Bocce Courts, Hot Tub


52

Based on the previous analysis of base retail selling prices, the following base selling prices are

projected for the proposed Age-Targeted townhouse dwellings within the project.

1st Floor Master Elevator Garage Sq. Feet Mean Deviation Garage Adj. Elevator Adj.Townhouse 2 or 3 No No 2.1 2.0 1,920 -4% $260.00 $0.00 $0.00 $499,200Townhouse 2 or 3 No Yes 2.1 2.0 1,920 -4% $260.00 $0.00 $13.00 $524,200Townhouse 3 Yes No 3.1 1.0 2,136 7% $249.00 -$12.45 $0.00 $505,300

1,992$510,000

$256

Dw elling Type Beds Baths Base Price / Ft2Living Area

BANCROFT REDEVELOPMENT PROJECT - PROJECTION OF BASE TOWNHOUSE SELLING PRICES

Base Selling Price

Average House Size (weighted)Average Base Selling Price (weighted)

Average Base Price-Per-Square Foot (weighted)


53

PART V - AFFORDABLE HOUSING INCLUSION Housing costs in New Jersey, both for purchase and rental, are among the highest in the nation.

According to the Housing Landscape 2016 report published by the Center for Housing Policy,

30% of working households in New Jersey have a “severe housing burden” which is defined as

spending more than 50% of their income on housing costs, including utilities. New Jersey’s

ranking in this report was the 2nd Worst in the nation.

Share of Working Households with a Severe Housing Cost Burden

Source: Housing Landscape 2016; Center for Housing Policy

More recently, a 2018 report published by the National Low Income Housing Coalition titled Out

of Reach – The High Cost of Housing, ranks New Jersey as the 7th most expensive rental

housing market in the nation. With an average rent for a 2-bedroom apartment of $1,465,

renters need to earn $28.17 per hour compared to actual average renter wages of $18.21. The

study further reported that a worker earning minimum wage would need to work 107 hours per

week to afford the rent for a typical 1-bedroom apartment, and 131 hours for a 2-bedroom

apartment.


54

These affordability issues are even greater for home ownership in New Jersey with its higher

costs compared to rental housing.

The next step in our analysis is to determine whether adequate demand exists within the

submarket area to absorb any affordable rate apartments that may be included within the

subject project. Our analysis of a 5-mile radius surrounding the subject indicates an average

apartment rental price of $1,207 per month. Based upon the previously referenced affordability

ratio of 35%, we project an average minimum required income of $41,000 to afford the projected

rental rates.

Comparing these income requirements to median household income within a 10-mile radius of

the site indicates there are more than 193,271 households over the age of 24 presently living

within 10 miles of the site, representing 36% of all households within that same radius, earning

less than the $41,000 annual income requirement to afford the average rent within the area.


55


We note that a majority of households over the age of 24, who are unable to afford market rate

housing, are 55 years of age of older.

COAH - The Council on Affordable Housing (COAH), an agency of the state government within

the Department of Community Affairs (DCA) has historically been responsible for ensuring that

all 565 New Jersey municipalities provide their fair share of low and moderate-income housing.

2018 Estimate Age/Income Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 - 84 Age 85+ Total Total Households 106,099 100,448 99,018 101,025 72,656 37,526 17,420 534,192 % of Total Households 19.13% 18.11% 17.86% 18.22% 13.10% 6.77% 3.14% Median Household Income 58,832 74,767 76,201 66,053 47,476 34,238 25,086Income Less than $15,000 13,198 10,627 10,733 14,821 11,239 6,845 4,489 71,952 % Across Age Ranges 2.38% 1.92% 1.94% 2.67% 2.03% 1.23% 0.81% % Within Age Range 12.44% 10.58% 10.84% 14.67% 15.47% 18.24% 25.77%Income $15,000 - $24,999 8,610 6,834 6,461 8,249 9,306 7,352 4,195 51,007 % Across Age Ranges 1.55% 1.23% 1.17% 1.49% 1.68% 1.33% 0.76% % Within Age Range 8.12% 6.80% 6.53% 8.17% 12.81% 19.59% 24.08%Income $25,000 - $34,999 9,400 6,733 6,545 7,813 7,253 4,897 2,218 44,859 % Across Age Ranges 1.70% 1.21% 1.18% 1.41% 1.31% 0.88% 0.40% % Within Age Range 8.86% 6.70% 6.61% 7.73% 9.98% 13.05% 12.73%Income $35,000 - $40,999 5,719 4,188 4,140 4,139 4,032 2,313 922 25,453 % Across Age Ranges 1.07% 0.78% 0.78% 0.77% 0.75% 0.43% 0.17% % Within Age Range 5.39% 4.17% 4.18% 4.10% 5.55% 6.16% 5.29%Total Households <$41,000 36,927 28,382 27,879 35,022 31,830 21,407 11,824 193,271% Households <$41,000 35% 28% 28% 35% 44% 57% 68% 36%

LACK OF AFFORDABILITY BY AGE MATRIX - Average Rental PricingHousehold Income by Age of Householder 2018 - 10 Mile Radius of Subject Property

93,188

100,083

88,000

90,000

92,000

94,000

96,000

98,000

100,000

102,000

Less than 55 Years Greater Than 55 Years

Households 25+ within 10 mile radius


56

The COAH was created by the New Jersey Legislature in response to the Fair Housing Act of

1985 and a series of New Jersey Supreme Court rulings known as the Mount Laurel decisions.

The council is made up of 12 members appointed by the Governor of New Jersey and approved

by the New Jersey Senate. COAH defines housing regions, estimates the needs for

low/moderate income housing, allocates fair share numbers by municipality and reviews plans

to fulfill these obligations.

A recent decision by the New Jersey Supreme Court in March of 2015 declared the state’s

affordable housing process ‘non-functioning’ and transferred jurisdiction over low-income and

moderate-income housing from the executive branch back to the courts. While the implications

from this decision are not yet fully understood, most development projects are continuing to

apply COAH guidelines in determining the allocation and rental rates for any affordable-rate

housing units that are set aside within a project.

Those COAH guidelines, where were designed to implement the New Jersey Fair Housing Act

(N.J.S.A. 52:27D-301 et seq.), were intended to assure that low- and moderate-income units

created under the Act were occupied by low- and moderate-income households for an

appropriate period. According to COAH guidelines, the inclusion of affordable rate apartments in

a project was required to adhere to the following requirements:

• Median income limits for qualifying households are determined by the New Jersey Department of Community Affairs according to region. Haddonfield Borough is located in DCA Region 5.

• In each affordable development, at least 50 percent of the restricted units within each bedroom distribution shall be low-income units and the remainder may be moderate income units.

• Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:

o The combined number of efficiency and one-bedroom units is no greater than 20 percent of the total low- and moderate-income units;

o At least 30 percent of all low- and moderate-income units are two-bedroom units; o At least 20 percent of all low- and moderate-income units are three-bedroom

units; o And the remainder, if any, may be allocated at the discretion of the developer.

• Municipalities shall establish by ordinance that the maximum rent for affordable units within each affordable development shall be affordable to households earning no more than 60 percent of median income. The municipal ordinance shall require that the average rent for low- and moderate-income units are affordable to households earning no more than 52 percent of median income. The developers and/or municipal sponsors


57

of restricted rental units shall establish at least one rent for each bedroom type for both low income and moderate-income units, if at least 10 percent of all low- and moderate-income units shall be affordable to households earning no more than 35 percent of median income.

• Municipal ordinances regulating owner-occupied and rental units shall require that affordable units utilize the same type of heating source as market units within the affordable development.

• In determining the initial rents and initial sales prices for compliance with the affordability average requirements for restricted units other than assisted living facilities, the following standards shall be used:

o A studio shall be affordable to a one-person household; o A one-bedroom unit shall be affordable to a one and one-half person household; o A two-bedroom unit shall be affordable to a three-person household; o A three-bedroom unit shall be affordable to a four and one-half person

household; o And a four-bedroom unit shall be affordable to a six-person household.

• Low-income rental units shall be reserved for households with a gross household income less than or equal to 50 percent of median income. Moderate income rental units shall be reserved for households with a gross household income less than 80 percent of median income.

• The administrative agent shall certify a household as eligible for a restricted rental unit when the household is a low-income household or a moderate-income household, as applicable to the unit, and the rent proposed for the unit does not exceed 35 percent (40 percent for age-restricted units) of the household’s eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.16; provided, however, that this limit may be exceeded if one or more of the following circumstances exists:

o The household currently pays more than 35 percent (40 percent for households eligible for age-restricted units) of its gross household income for rent and the proposed rent will reduce its housing costs;

o The household has consistently paid more than 35 percent (40 percent for households eligible for age-restricted units) of eligible monthly income for rent in the past and has proven its ability to pay;

o The household is currently in substandard or overcrowded living conditions; o The household documents the existence of assets, with which the household

proposes to supplement the rent payments; or o The household documents proposed third-party assistance from an outside

source such as a family member in a form acceptable to the administrative agent and the owner of the unit.

• The applicant shall file documentation enough to establish the existence of the circumstances in (b) above with the administrative agent, who shall counsel the household on budgeting.


58

Based upon COAH guidelines for the mix of apartment types coupled with the 2018 HUD Utility

allowance and 2018 income guidelines published by the Affordable Housing Professionals of

New Jersey (AHPNJ), we have calculated the required mix of apartments and allowable rents

as follows:

Given that 36% of households over the age of 24 (193,271 within a 10-mile radius) have

insufficient income to afford the average rental cost within the local submarket, developing the

property with 80 townhomes as an inclusionary project with 10 affordable rental units, is a viable

and beneficial use of the property that will help the Borough to meet its affordable housing

obligation.

Monthly Housing

Allocation30%

COAH - LOW 1 Rental Apartment 1 Bedroom 10% 1 $65,550 30% $19,665 $492 $136.00 $356COAH - LOW 2 Rental Apartment 1 Bedroom 0% 0 $65,550 50% $32,775 $819 $136.00 $683COAH - MOD 1 Rental Apartment 1 Bedroom 10% 1 $65,550 60% $39,330 $983 $136.00 $847COAH - LOW 1 Rental Apartment 2 Bedroom 10% 1 $78,660 30% $23,598 $590 $177.00 $413COAH - LOW 2 Rental Apartment 2 Bedroom 20% 2 $78,660 50% $39,330 $983 $177.00 $806COAH - MOD 1 Rental Apartment 2 Bedroom 30% 3 $78,660 60% $47,196 $1,180 $177.00 $1,003COAH - LOW 1 Rental Apartment 3 Bedroom 0% 0 $90,896 30% $27,269 $682 $220.00 $462COAH - LOW 2 Rental Apartment 3 Bedroom 10% 1 $90,896 50% $45,448 $1,136 $220.00 $916COAH - MOD 1 Rental Apartment 3 Bedroom 10% 1 $90,896 60% $54,538 $1,363 $220.00 $1,143

10$830Average Base Monthly Rent (weighted)

Bancroft Redevelopment ProjectCOAH Project Mix & Base Selling Prices

Unit TypeApartment

Type Mix

Median HH Income

(DCA Region 5)

Income Stratification

%

Stratified Income Level

Calculation of Tenant Utilities

& Services

2018 Base Rent ($ per month)

Total Affordable Apartments


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PART VI -ADDENDUM

Limiting Conditions, Assumptions, and Hypothetical Conditions This study is subject to the following Limiting Conditions

• All statements in this market study that are not historical facts should be considered as forward-looking projections. Although we believe that the expectations reflected in or suggested by such forward-looking projections are reasonable, we can give no assurance that they will be achieved. Known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements expressed or implied by these forward-looking projections to be different from these projections. Such risks, uncertainties and other factors include, but are not limited to, changes in general and local economic and industry and business conditions; adverse weather and other environmental conditions and natural disasters; changes in market conditions; changes in market pricing; government regulation, including regulations concerning development of land, tax laws and the environment; fluctuations in interest rates and the availability of mortgage financing; shortages in and price fluctuations of raw materials and labor; levels of competition; utility shortages and outages or rate fluctuations; changes in tax laws; and geopolitical risks, terrorist acts and other acts of war. We undertake no obligation to update or revise any forward-looking projections, whether as a result of new information, future events, changed circumstances or any other reason.

• The legal description furnished to us is assumed to be correct. I assume no responsibility for the matters legal in character nor do I render any opinion as to the title, which is assumed to be held in fee simple. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear under responsible ownership and competent management.

• Title is assumed to be held in fee simple, unless otherwise noted, and no liens or encumbrances, except those noted, were considered.

• Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client and then only with proper qualification. Neither all nor any part of the contents of this report (especially conclusions as to value, identity of the appraisers or the firm) shall be used for any purposes by anyone but the client specified in the report nor shall it, or any part, be disseminated to the public through advertising media, public relations consent or approval of the appraisers. Further, the appraisers, or the firm, assume no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, the client shall make such party aware of all the assumptions and limiting conditions of the assignment.

• I have made no survey of the property and any sketches in this report are for illustrative purposes only.

• I believe to be reliable the information which was furnished to us by others, but I assume no responsibility for its accuracy.

• Unless otherwise noted herein, it is assumed that there are no detrimental encroachments, easements, zoning violations, use restrictions, or other conditions not evident upon surface inspection of the property. Description of the physical condition of the improvements is based on a visual inspection only. No liability is assumed for the


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soundness of structural members since no engineering tests were made by the appraiser.

• Testimony and court appearances in connection with this appraisal are limited to those situations for which prior arrangements have been made.

• I reserve the right to recall this report and make any amendments, corrections, or changes that I deem necessary.

• This report must not be used in conjunction with any other valuation analysis or report.

• On January 26, 1992, federal legislation entitled, The Americans with Disabilities Act (ADA) became effective. The appraiser has not been provided with a compliance survey nor has any analysis been made to determine whether the subject is in conformity with the requirements of the ADA. It is possible that compliance with the act will require expenditures for barrier removal construction. Such expense, if required, could have a negative impact on the value of the subject. This study is expressly made under the assumption that the subject is in compliance with ADA, or that there are no significant measurable required expenditures for compliance with ADA that would have a negative impact on the value or marketability of the subject.

• The appraiser is not qualified to test for the presence of Hazardous substances. The presence of such hazardous substances or environmental conditions may affect the value of the property. The valuation contained in this appraisal assumed that the property is not polluted or otherwise contaminated and does not reflect any diminution of value as a result of environmental conditions. This study is subject to change depending on the availability of information concerning the environmental condition of the property in question.

• The Freshwater Wetlands Protection Act restricts the use and development of freshwater wetlands. Effective July 1, 1988 the DEP was established as the reviewing and approving authority for all development within or adjacent to freshwater wetlands. This legislation established certain development criteria including, but not limited to, variable buffers around authorized development adjacent to freshwater wetlands. The identification and delineation of freshwater wetlands on the subject property, if any, has not been brought to our attention nor did we become aware of any such delineations during our inspection of the subject nor during our investigations for this report; however, the appraisers are not qualified to render a professional opinion as to the presence or extent of freshwater wetlands. The reader is advised to seek competent, professional advice in identifying any such potential freshwater wetlands since identification and delineation of any freshwater wetlands within the subject boundaries could have significant impact upon values thereby requiring study revision.

• The subject site may have underground fuel storage tank(s). The underground tank(s) could be a liability. Neither the composition nor the conditions of such tanks, to the extent they exist, are known to the appraiser. The typical life expectancy of an underground tank is 15 to 20 years; (federal guidelines suggest a 10-year life span). Soil contamination could occur if a tank leaks and would be costly to clean up. Without a detailed physical inspection of the tanks and the surrounding soil, it is impossible to estimate potential clean-up costs. Therefore, this analysis does not cover such contingencies.


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Extraordinary Assumptions reflect an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. This study is subject to the following Extraordinary Assumptions:

• Our study has not been based upon any extraordinary assumptions. Hypothetical Conditions reflect an assumption that is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

• Our study has not been based upon any hypothetical conditions.


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Demographic Analysis

% % % %Population2000 Census 11,669 321,897 1,346,003 2,754,7262010 Census 11,593 323,806 1,396,417 2,799,8962018 Estimate 11,172 320,256 1,429,252 2,842,828Percent Change: 2000 to 2010 -0.65 0.59 3.75 1.64Percent Change: 2010 to 2018 -3.63 -1.10 2.35 1.53

2018 Est. Population by Sex 11,172 320,256 1,429,252 2,842,827Male 5,347 47.86 153,959 48.07 693,454 48.52 1,357,566 47.75Female 5,825 52.14 166,297 51.93 735,798 51.48 1,485,261 52.25Male/Female Ratio 0.92 0.93 0.94 0.91

2018 Est. Population by Age 11,172 320,256 1,429,252 2,842,826Age 0 - 4 678 6.07 19,068 5.95 91,169 6.38 180,674 6.36Age 5 - 9 679 6.08 19,489 6.08 89,039 6.23 177,097 6.23Age 10 - 14 824 7.38 19,953 6.23 85,441 5.98 170,905 6.01Age 15 - 17 534 4.78 12,305 3.84 52,848 3.70 105,000 3.69Age 18 - 20 479 4.29 11,290 3.52 60,810 4.25 116,367 4.09Age 21 - 24 615 5.50 15,455 4.83 76,061 5.32 149,813 5.27Age 25 - 34 1,025 9.18 42,088 13.14 238,382 16.68 447,880 15.76Age 35 - 44 925 8.28 40,347 12.60 189,113 13.23 363,788 12.80Age 45 - 54 1,604 14.36 42,811 13.37 178,746 12.51 356,392 12.54Age 55 - 64 1,763 15.78 43,478 13.58 171,748 12.02 357,988 12.59Age 65 - 74 1,217 10.89 30,209 9.43 114,274 8.00 241,681 8.50Age 75 - 84 554 4.96 15,707 4.91 55,672 3.90 118,345 4.16Age 85 and over 275 2.46 8,056 2.52 25,949 1.82 56,896 2.00Age 16 and over 8,814 78.89 257,709 80.47 1,146,297 80.20 2,279,731 80.19Age 18 and over 8,457 75.70 249,441 77.89 1,110,754 77.72 2,209,151 77.71Age 21 and over 7,978 71.41 238,150 74.36 1,049,944 73.46 2,092,783 73.62Age 65 and over 2,046 18.31 53,972 16.85 195,894 13.71 416,922 14.67

2018 Est. Median Age 43.42 40.09 36.01 36.902018 Est. Average Age 40.80 40.33 38.03 38.64

2018 Est. Median Age, Male 40.81 38.15 34.74 35.252018 Est. Average Age, Male 39.60 38.85 36.81 37.21

2018 Est. Median Age, Female 45.33 41.91 37.31 38.502018 Est. Average Age, Female 42.00 41.67 39.13 39.88

2018 Est. Pop Age 15+ by Marital Status 8,991 261,747 1,163,602 2,314,151Total, Never Married 2,031 22.59 95,897 36.64 531,845 45.71 1,029,081 44.47Males, Never Married 1,061 11.80 49,302 18.84 270,967 23.29 511,576 22.11Females, Never Married 970 10.79 46,595 17.80 260,878 22.42 517,505 22.36Married, Spouse present 5,493 61.09 112,381 42.94 395,316 33.97 792,571 34.25Married, Spouse absent 197 2.19 11,253 4.30 61,288 5.27 128,298 5.54Widowed 551 6.13 18,035 6.89 69,587 5.98 146,226 6.32Males Widowed 104 1.16 3,594 1.37 15,356 1.32 31,058 1.34Females Widowed 447 4.97 14,441 5.52 54,231 4.66 115,169 4.98Divorced 719 8.00 24,181 9.24 105,566 9.07 217,975 9.42Males Divorced 223 2.48 9,699 3.71 42,873 3.69 86,019 3.72Females Divorced 496 5.52 14,481 5.53 62,693 5.39 131,956 5.70

POPULATION DEMOGRAPHICS0 - 5 Miles 0 - 15 MilesHaddonfield Borough 0 - 10 Miles


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% % % %Households2000 Census 4,498 122,616 512,550 1,050,0692010 Census 4,437 124,655 536,291 1,078,9732018 Estimate 4,299 124,444 554,565 1,104,336Percent Change: 2000 to 2010 -1.36 1.66 4.63 2.75Percent Change: 2010 to 2018 -3.11 -0.17 3.41 2.35 2018 Est. Households by Household Type 4,299 124,444 554,564 1,104,336Family Households 3,078 71.60 82,336 66.16 332,628 59.98 679,843 61.56Nonfamily Households 1,221 28.40 42,108 33.84 221,936 40.02 424,493 38.44

2018 Est. Family HH Type by Presence of Own Child. 3,078 82,335 332,629 679,843Married-Couple Family, own children 1,326 43.08 24,539 29.80 85,140 25.60 169,656 24.95Married-Couple Family, no own children 1,322 42.95 32,704 39.72 117,155 35.22 238,541 35.09

Male Householder 94 3.05 6,160 0.07 30,247 0.09 61,208 0.09Male Householder, own children 42 1.36 2,635 3.20 12,835 3.86 25,559 3.76Male Householder, no own children 52 1.69 3,525 4.28 17,412 5.24 35,649 5.24

Female Householder 336 10.92 18,932 0.23 100,087 0.30 210,438 0.31Female Householder, own children 176 5.72 9,694 11.77 53,296 16.02 108,018 15.89Female Householder, no own children 160 5.20 9,238 11.22 46,791 14.07 102,420 15.06

2018 Est. Households by Household Size 4,299 124,444 554,565 1,104,3341-person 1,083 25.19 35,724 28.71 175,731 31.69 343,746 31.132-person 1,350 31.40 37,278 29.96 160,265 28.90 319,882 28.973-person 695 16.17 20,802 16.72 89,087 16.06 182,118 16.494-person 737 17.14 17,350 13.94 69,632 12.56 139,469 12.635-person 300 6.98 8,149 6.55 34,866 6.29 69,717 6.316-person 101 2.35 3,202 2.57 14,832 2.67 29,413 2.667-or-more-person 33 0.77 1,939 1.56 10,152 1.83 19,989 1.812018 Est. Average Household Size 2.60 2.55 2.50 2.51

Households with 1 or More People under Age 18: 1,579 36.73 41,304 33.19 174,649 31.49 353,773 32.03Married Couple Family 1,342 84.99 26,176 63.37 92,273 52.83 184,925 52.27Other Family, Male Householder 44 2.79 3,217 7.79 15,844 9.07 31,811 8.99Other Family, Female Householder 189 11.97 11,644 28.19 65,162 37.31 134,225 37.94NonFamily Household, Male Householder 4 0.25 194 0.47 958 0.55 1,836 0.52NonFamily Household, Female Householder 0 0.00 73 0.18 411 0.23 977 0.28

Households with No People under Age 18: 2,720 63.27 83,140 66.81 379,916 68.51 750,563 67.97Married Couple Family 1,308 48.09 31,085 37.39 110,042 28.96 223,270 29.75Other Family, Male Householder 49 1.80 2,931 3.52 14,380 3.79 29,388 3.92Other Family, Female Householder 147 5.40 7,287 8.77 34,934 9.20 76,252 10.16NonFamily, Male Householder 448 16.47 17,975 21.62 102,814 27.06 190,426 25.37NonFamily, Female Householder 768 28.23 23,862 28.70 117,746 30.99 231,227 30.81

2018 Est. Average Number of Vehicles 1.90 1.68 1.32 1.34 Family Households2000 Census 3,257 83,313 323,262 674,0122010 Census 3,180 82,770 325,492 669,2212018 Estimate 3,078 82,336 332,628 679,843Percent Change: 2000 to 2010 -2.36 -0.65 0.69 -0.71Percent Change: 2010 to 2018 -3.21 -0.52 2.19 1.59



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% % % %2018 Est. Pop Age 25+ by Edu. Attainment 7,363 222,696 973,882 1,942,971Less than 9th Grade 30 0.41 9,418 4.23 55,428 5.69 91,356 4.70Some High School, No Diploma 88 1.20 13,547 6.08 87,092 8.94 169,710 8.73High School Graduate (or GED) 770 10.46 63,969 28.73 302,494 31.06 628,459 32.34Some College, No Degree 907 12.32 42,683 19.17 160,281 16.46 345,076 17.76Associate's Degree 381 5.17 14,793 6.64 58,559 6.01 130,337 6.71Bachelor's Degree 2,719 36.93 48,479 21.77 189,755 19.48 354,409 18.24Master's Degree 1,362 18.50 19,897 8.94 77,839 7.99 151,147 7.78Professional Degree 756 10.27 6,880 3.09 29,351 3.01 46,889 2.41Doctorate Degree 350 4.75 3,030 1.36 13,083 1.34 25,588 1.32

2018 Est. Civ. Employed Pop 16+ by Class of Worker 5,510 156,326 644,838 1,269,163

For-Profit Private Workers 3,088 56.04 109,347 69.95 447,041 69.33 864,453 68.11Non-Profit Private Workers 619 11.23 13,674 8.75 73,356 11.38 153,183 12.07Local Government Workers 478 8.68 10,627 6.80 39,796 6.17 86,322 6.80State Government Workers 342 6.21 7,362 4.71 22,152 3.44 43,227 3.41Federal Government Workers 110 2.00 3,322 2.13 15,959 2.48 35,482 2.80Self-Employed Workers 871 15.81 11,600 7.42 45,392 7.04 84,681 6.67Unpaid Family Workers 2 0.04 394 0.25 1,142 0.18 1,815 0.14

2018 Est. Civ. Employed Pop 16+ by Occupation 5,510 156,325 644,837 1,269,160Architecture/Engineering 67 1.22 1,689 1.08 9,066 1.41 16,511 1.30Arts/Design/Entertainment/Sports/Media 224 4.07 2,489 1.59 13,829 2.15 24,265 1.91Building/Grounds Cleaning/Maintenance 41 0.74 4,604 2.94 22,233 3.45 47,307 3.73Business/Financial Operations 437 7.93 8,499 5.44 34,435 5.34 63,345 4.99Community/Social Services 72 1.31 3,692 2.36 13,764 2.13 32,656 2.57Computer/Mathematical 168 3.05 4,693 3.00 18,291 2.84 32,460 2.56Construction/Extraction 111 2.02 5,515 3.53 24,103 3.74 46,338 3.65Education/Training/Library 647 11.74 11,683 7.47 42,879 6.65 82,540 6.50Farming/Fishing/Forestry 0 0.00 154 0.10 1,182 0.18 1,909 0.15Food Preparation/Serving Related 169 3.07 8,612 5.51 38,357 5.95 70,824 5.58Healthcare Practitioner/Technician 618 11.22 12,247 7.83 46,797 7.26 92,162 7.26Healthcare Support 40 0.73 4,338 2.77 19,181 2.98 45,989 3.62Installation/Maintenance/Repair 74 1.34 3,561 2.28 13,580 2.11 28,302 2.23Legal 342 6.21 3,379 2.16 13,441 2.08 21,871 1.72Life/Physical/Social Science 92 1.67 1,477 0.94 6,936 1.08 13,158 1.04Management 956 17.35 15,812 10.12 60,881 9.44 112,453 8.86Office/Administrative Support 510 9.26 21,965 14.05 86,303 13.38 173,722 13.69Production 61 1.11 6,896 4.41 28,560 4.43 54,309 4.28Protective Services 127 2.31 4,113 2.63 18,314 2.84 40,975 3.23Sales/Related 574 10.42 16,658 10.66 67,338 10.44 129,415 10.20Personal Care/Service 127 2.31 5,225 3.34 24,749 3.84 54,206 4.27Transportation/Material Moving 53 0.96 9,024 5.77 40,618 6.30 84,443 6.65

2018 Est. Pop 16+ by Occupation Classification 5,510 156,326 644,838 1,269,161White Collar 4,707 85.43 104,282 66.71 413,961 64.20 794,558 62.60Blue Collar 299 5.43 24,996 15.99 106,860 16.57 213,393 16.81Service and Farming 504 9.15 27,048 17.30 124,017 19.23 261,210 20.58

2018 Est. Workers Age 16+ by Transp. to Work 5,380 152,247 630,028 1,239,923Drove Alone 4,088 75.98 117,952 77.47 396,919 63.00 798,816 64.42Carpooled 211 3.92 12,425 8.16 50,083 7.95 96,604 7.79Public Transport 471 8.76 11,864 7.79 96,650 15.34 209,945 16.93Walked 153 2.84 3,159 2.08 45,257 7.18 65,955 5.32Bicycle 12 0.22 217 0.14 11,154 1.77 14,846 1.20Other Means 36 0.67 1,342 0.88 8,028 1.27 13,528 1.09Worked at Home 409 7.60 5,288 3.47 21,937 3.48 40,229 3.24

2018 Est. Workers Age 16+ by Travel Time to WorkLess than 15 Minutes 1,202 24.35 36,098 24.59 123,046 20.25 218,868 18.2515 - 29 Minutes 1,941 39.31 58,445 39.81 217,725 35.83 389,801 32.5030 - 44 Minutes 874 17.70 30,070 20.48 143,998 23.69 308,448 25.7145 - 59 Minutes 487 9.86 11,686 7.96 59,488 9.79 136,675 11.3960 or more Minutes 433 8.77 10,521 7.17 63,480 10.45 145,728 12.15

2018 Est. Avg Travel Time to Work in Minutes 30.00 28.03 32.25 34.24

EDUCATION & EMPLOYMENT DEMOGRAPHICS0 - 15 Miles0 - 5 Miles 0 - 10 MilesHaddonfield Borough


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% % % %2018 Est. Households by HH Income 4,299 124,445 554,566 1,104,337Income < $15,000 135 3.14 12,828 10.31 79,226 14.29 159,047 14.40Income $15,000 - $24,999 152 3.54 9,840 7.91 54,229 9.78 111,477 10.09Income $25,000 - $34,999 191 4.44 9,061 7.28 47,221 8.52 98,496 8.92Income $35,000 - $49,999 245 5.70 13,400 10.77 66,012 11.90 139,393 12.62Income $50,000 - $74,999 422 9.82 19,101 15.35 85,092 15.34 176,381 15.97Income $75,000 - $99,999 392 9.12 15,143 12.17 62,265 11.23 124,636 11.29Income $100,000 - $124,999 388 9.03 12,945 10.40 48,077 8.67 93,095 8.43Income $125,000 - $149,999 383 8.91 9,809 7.88 33,557 6.05 63,882 5.79Income $150,000 - $199,999 616 14.33 10,577 8.50 35,997 6.49 66,183 5.99Income $200,000 - $249,999 405 9.42 4,945 3.97 17,473 3.15 30,128 2.73Income $250,000 - $499,999 580 13.49 4,815 3.87 17,791 3.21 29,306 2.65Income $500,000+ 390 9.07 1,981 1.59 7,626 1.38 12,313 1.11

2018 Est. Average Household Income $184,909 $97,897 $85,256 $80,3732018 Est. Median Household Income $139,408 $72,106 $58,097 $55,438

2018 Median HH Inc. by Single-Class. Race or Eth.White Alone $142,943 $82,581 $72,412 $71,187Black or African American Alone $70,885 $43,898 $36,628 $39,685American Indian and Alaska Native Alone $6,375 $32,851 $32,138 $35,893Asian Alone $86,304 $84,588 $61,376 $58,068Native Hawaiian and Other Pacific Islander Alone -- $22,160 $39,198 $41,305Some Other Race Alone $58,275 $43,230 $31,873 $34,261Two or More Races $104,115 $58,653 $45,661 $46,188Hispanic or Latino $134,879 $44,997 $34,472 $37,812Not Hispanic or Latino $139,548 $76,835 $63,560 $57,933

2018 Est. Families by Poverty Status 3,078 82,336 332,628 679,8432018 Families at or Above Poverty 3,016 97.99 74,745 90.78 280,918 84.45 580,903 85.452018 Families at or Above Poverty with Children 1,449 47.08 33,116 40.22 122,569 36.85 257,267 37.842018 Families Below Poverty 62 2.01 7,591 9.22 51,710 15.55 98,940 14.552018 Families Below Poverty with Children 50 1.62 5,721 6.95 39,187 11.78 74,735 10.99

INCOME DEMOGRAPHICS0 - 15 Miles0 - 5 Miles 0 - 10 MilesHaddonfield Borough


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% % % %2018 Est. Occupied Housing Units by Tenure 4,299 124,444 554,565 1,104,336Housing Units, Owner-Occupied 3,538 82.30 83,174 66.84 330,193 59.54 676,094 61.22Housing Units, Renter-Occupied 761 17.70 41,270 33.16 224,372 40.46 428,242 38.78

2018 Owner Occ. HUs: Avg. Length of Residence 19.60 19.45 18.03 18.99

2018 Renter Occ. HUs: Avg. Length of Residence 6.00 6.96 6.79 7.01

2018 Est. Owner-Occupied Housing Units by Value 3,538 83,177 330,194 676,093Value Less than $20,000 22 0.62 1,164 1.40 5,882 1.78 11,901 1.76Value $20,000 - $39,999 5 0.14 830 1.00 7,098 2.15 15,255 2.26Value $40,000 - $59,999 3 0.09 930 1.12 9,621 2.91 21,815 3.23Value $60,000 - $79,999 3 0.09 2,563 3.08 15,502 4.70 33,548 4.96Value $80,000 - $99,999 13 0.37 3,868 4.65 19,119 5.79 43,438 6.42Value $100,000 - $149,999 71 2.01 10,042 12.07 54,100 16.38 113,957 16.86Value $150,000 - $199,999 96 2.71 17,299 20.80 60,096 18.20 127,722 18.89Value $200,000 - $299,999 539 15.23 25,781 31.00 76,832 23.27 160,047 23.67Value $300,000 - $399,999 666 18.82 11,294 13.58 38,164 11.56 70,331 10.40Value $400,000 - $499,999 636 17.98 4,548 5.47 18,437 5.58 33,652 4.98Value $500,000 - $749,999 999 28.24 3,414 4.11 15,680 4.75 27,575 4.08Value $750,000 - $999,999 372 10.51 916 1.10 5,410 1.64 9,305 1.38Value $1,000,000 - $1,499,999 105 2.97 333 0.40 2,578 0.78 4,419 0.65Value $1,500,000 - $1,999,999 1 0.03 27 0.03 666 0.20 1,283 0.19Value $2,000,000 or more 7 0.20 168 0.20 1,009 0.31 1,845 0.27

2018 Est. Median All Owner-Occupied Housing Value $453,472 $215,707 $194,363 $187,784

2018 Est. Housing Units by Units in Structure 4,587 134,960 610,413 1,215,4481 Unit Attached 373 8.13 20,723 15.36 238,899 39.14 499,777 41.121 Unit Detached 3,508 76.48 74,087 54.90 179,166 29.35 343,698 28.282 Units 233 5.08 6,548 4.85 34,793 5.70 81,326 6.693 to 4 Units 140 3.05 5,716 4.24 34,541 5.66 67,616 5.565 to 19 Units 95 2.07 11,171 8.28 49,834 8.16 89,132 7.3320 to 49 Units 82 1.79 4,844 3.59 17,820 2.92 36,914 3.0450 or More Units 156 3.40 11,168 8.28 52,686 8.63 91,250 7.51Mobile Home or Trailer 0 0.00 703 0.52 2,591 0.42 5,474 0.45Boat, RV, Van, etc. 0 0.00 0 0.00 83 0.01 261 0.02

2018 Est. Housing Units by Year Structure Built 4,587 132,848 587,631 1,178,239Built 2014 or Later 15 0.33 2,111 1.56 22,782 3.73 37,208 3.06Built 2010 to 2013 12 0.26 1,011 0.75 5,616 0.92 8,206 0.68Built 2000 to 2009 158 3.44 7,419 5.50 39,486 6.47 64,622 5.32Built 1990 to 1999 111 2.42 5,995 4.44 35,254 5.78 65,897 5.42Built 1980 to 1989 133 2.90 10,974 8.13 47,895 7.85 85,061 7.00Built 1970 to 1979 294 6.41 19,043 14.11 63,022 10.32 124,070 10.21Built 1960 to 1969 282 6.15 22,288 16.52 63,482 10.40 144,207 11.87Built 1950 to 1959 848 18.49 26,559 19.68 84,337 13.82 195,277 16.07Built 1940 to 1949 384 8.37 13,757 10.19 57,276 9.38 138,586 11.40Built 1939 or Earlier 2,350 51.23 25,802 19.12 191,263 31.33 352,313 28.99

2018 Est. Median Year Structure Built 1940 1961 1957 1956

HOUSING DEMOGRAPHICS0 - 15 Miles0 - 5 Miles 0 - 10 MilesHaddonfield Borough


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Glossary of Definitions

The following definitions apply to the terminology utilized in this report: Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Average Rental Rate is defined as: “the calculated average rental rate for the proposed dwellings based upon the consultants recommended unit sizes. Average Unit Size is defined as: “the calculated average size of a real estate space based upon market data or developer projections. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B & C: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. These buildings typically have lesser maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including location, site appeal, or physical factors. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Developer: The company, entity or individual that transforms raw land to improved property, or converts an existing building to an alternative use, by use of labor, capital and entrepreneurial efforts. Economic Feasibility is defined as: “the ability of a project or an enterprise to meet defined investment objectives; an investment’s ability to produce sufficient revenue to pay all expenses and charges and to provide a reasonable return on and recapture of the money invested. In reference to a service or residential property where revenue is not a fundamental consideration, economic soundness is based on the need for and desirability of the particular purpose. An investment property is economically feasible if its prospective earning power is sufficient to pay a fair rate of return on its complete cost (including indirect costs) i.e., the estimated value at completion equals or exceeds the estimated cost.” Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.


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Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets). Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price, asking sales price, rental price, or asking rental price) by the Rentable Building Area (RBA) or Gross Building Area (GBA).


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Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area). Region: Core areas containing a large population nucleus that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally, RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Rent-Up Velocity is defined as: “the projected pace at which prospective renters will enter into a contract-of-lease for individual apartment units within a project. This is also referred to as Absorption Pace or Rent-Up Velocity. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF or Ft2: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant)


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Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.


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Professional Qualifications


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