Competition matrix for residential tower

1 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®

ADAM GREENFADER

COMPETITION

SUMMARY

Urban Residential

Tower

Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico

October 15, 2008 Doral Financial Corporation


TABLE OF CONTENTS

SECTION 3: The Competition

Housing Supply …………………………………………56

New Home Projects: The Competition …………………………………………61

Buena Vista …………………………………………62

ElMaria …………………………………………70

Plaza Del Palmar …………………………………………76

Casa Maggiore …………………………………………83

San Juan Tower …………………………………………90

Portales de Arcobaleno …………………………………………95

Regency Park …………………………………………102

RidgeTop Luxury Apartments …………………………………………106

Executive Summary

Tiffany Tower is located in the San Juan Metropolitan Area off of road #844 in Cupey,

Puerto Rico. Its principal linkage is road 199 and all of the city’s principal highways are

within a few miles. The location is considered to be one of the best in its competitive

market group.

Tiffany Tower is located on 3,969 square meters or approximately 1.01 Cds. The land is

sloped and has no natural vegetation. The project consists of a residential condominium

and a mixed use commercial area. The mixed use commercial area has approximately

13,180 S.F. and 58 parking spaces. The parking spaces are stacked on two floors which

are located above the residential parking. The residential parking lot has 88 spaces not

including visitor and handicap spots. The parking lots share the same structure and access

ramp but have separate vehicular entrances and pedestrian circulation.

The residential tower is 12 stories and has 44 residential units. The apartments have two

and three bedroom configurations that vary in size from 1,196-2,360 S.F. The units have

modern finishings and are well designed. The project includes an electrical generator,

cistern, two elevators, pool, storage units, covered parking, and children’s play area.

The project’s principal strengths are its location, access to highways, a large master

bedroom, storm shutters, bathroom finishings, window placement, and smart home




technology. The project’s principal weaknesses include the construction finishings,

maintenance, vehicular circulation, and the commercial parking area, air conditioning

compressors on the balcony, poor kitchen counter top and cabinets.

There are currently 8 projects that compete with Tiffany Tower. All the projects are

located within a 30 minute drive of each other. The projects are all 3 bedroom units. The

prices range from $244,000 to $355,000. The average price of the homes after non

government discounts is $303,287. The average price per square foot is $202 (total area).

Tiffany Tower’s average price is $337,000 or $229 per S.F.

The competition’s apartments range in size from 1,136 S.F. to 1,770 S.F. The Tiffany

Tower apartment is approximately 31 S.F. smaller in size than the average 3 bedroom

apartment. Unlike Tiffany tower, 42% of the competition has a powder room or an

additional half bathroom. The competition’s finishings can be characterized by granite

kitchen counter tops, over the sink sanitary equipment, and 9’ ceilings. Overall, the

Tiffany Tower unit is equal or inferior to the competition.

The competition’s facilities include a club house, gymnasium, pool (showers and

bathrooms), Jacuzzi, and children’s play area. In general, these facilities are superior to

those at Tiffany Tower.

The total housing demand for the five year period (2007-20012) is projected at 49,887

units or 11,022 units annually (non-subsidized). The Tiffany Tower market area (San

Juan and Guaynabo Region) makes up approximately 15.6% of the total demand of all

Puerto Rico. Hence, the total demand for this region is 7,782 unit or 1,566 units per year.

Multi-family units account for 29% of the total units demanded. Using the weighted

average from the past sale activity, the market demand is estimated at 451 units per year.

52% of the demand is for homes in the $260,000 or more range, or 234 units per year.

There is a total inventory of 468 units in the Cupey-Guaynabo Market Area. This

inventory includes apartments that are completed and under construction. The average

absorption rate for this market group is 2.44 units per month. Based on this slow

absorption rate, many projects have curtailed their development plans. If we assume that

the proposed project can capture an equal market share to its percentage of the total

supply, it should command a capture rate of 5.4% (44 units of the proposed project / 468

assumed total available units + 336 new units). The proposed project’s absorption rate

should approximate 12.6 units per year or a total project sell out in 3.4 years (44 units).

The principal target market demographics consist of empty nesters (60%) and young

professionals (40%). The sales strategy should be to reduce prices to competitive levels,

improve project merchandizing, and control inventory. The total monthly payment for the

3 bedroom unit should fall below $2,000.00 per month. The 2 bedroom unit should be

around the $1,500.00 per month.

One of the project’s principal challenges is to buffer the commercial parking area that

abuts to the residential lobby and units. The commercial parking is two stories in height




and detracts significantly from the aesthetics and perceived security of the residential

project. This nuisance can be mitigated by separating the commercial and residential

vehicular traffic with a guard house. The guard house structure can be retrofitted from an

existing auxiliary room in Tiffany Tower. Moreover, the commercial parking area can be

landscaped with plants and trellis to block unsightly views. The project should also

purchase gymnasium equipment, lobby and patio furniture.

Several units may be rented so that the project does not look abandoned. All price

discounts should be obfuscated by special closing bonuses or incentives in order to

maintain the appraisal values. The competition offers both cash incentives, furniture

packages, and mortgages with interest only payment for the first five years.




Competition Table

In the above noted table, you will find 9 projects that comprise the market area projects

and competition for Tiffany Tower. As noted previously, the pries range from $250,000

to $450,000.

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Bu

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Net Price

Multi-Family Project Table Cupey-Guaynabo Market Area




When viewing the competition by price per square foot, Tiffany Towers is the second

most expensive project. Incidentally, the first project, Ridge Top, has not delivered units.

It is thus expected that they will provide discounts shortly.

$150

$175

$200

$225

$250

Bu

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Price Per S.F.

Multi-Family Project Table

Cupey-Guaynabo Market Area




Market Area Competition Map




BUENA VISTA KEY FACTS

City San Juan

Location Highway 844- KM 5.4

Access Ave. Las Cumbres

Neighborhood Characteristics Sub-urban, 50% Built Up, Middle-Class.

Key Location Amenities Señorial Plaza & Los Paseos

Proximity to Tiffany Tower 8 Minutes

Proximity to Metro Area Just on the fringe of Metro Area

Location Summary Adjacent to major highway, easy access.

Location Grade 2 ( 1 being lowest and 5 being best in market)

Developer Citadel Corp.

Developer Experience Many projects in similar locations and

product type.

Financial Institution Firstbank

Mortgage Institution First Mortgage

Total Units 100

Project Phases 3 phases for a total 400 units

Project Type Multi-family mid-rise

Community Excellent ambiance and landscaping

Curb Appeal Excellent

Model Units 4 Models: Garden, Balcony, Sub PH, PH

Units per Floor 2

Design Style Contemporary

Actual Age New Construction

Total Room Count 5

Bedrooms/Bath 3/2.5

Total Construction Area (S.F.) 1,645

Observable Easements None

Sales Price $280,000

Sales Incentives $10,000 + $6,000 for Appliances

Sales Price/Total Construction Area $161

Reported Sales 23

Delivery Date 8/1/2007

Absorption Rate 1.6 units per month

Ownership Fee Simple

Product Staging Very Good – full model house

Sales Team Very good understanding of sales cycle

Energy Efficient Items None

Data Sources Filed Inspections

Date of Inspection 10/1/08

Legal Infrastructure HOA, Architectural guidelines, &

Restrictive Covenants




Buena Vista Apartment Yes No

Building Configuration Yes No

2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X

Penthouse w/ Elevator Access X

Walk-Up X

Garden w/ Elevator Access X

Multiple Apartment Models X

8’ Ceilings X

Apartments Per Floor 2

9’ Ceilings X

Elevators Per Floor 1

Powder Room X Emergency Staircase Per Floor 1

Intelli-Home System X Trash Room X

Wall A/C Units X Outdoor Apartment Lobby X

Central Air Conditioning X Enclosed Apartment Lobby X

Split Air Conditioning X Door Bells X

Intercom System X Apartment Signs X

Lamps Included X 100% Covered Parking X

Ceramic Floor Tiles X Semi-Covered Parking X

Side by Side Laundry X Non- Covered Parking X

Independent Laundry Room X 2 Car Parking Side to Side X

Covered Terrace Area X 2 Car Parking Back to Back X

Security Windows X Green Technologies X

Hurricane Shutters X

Interior Garden X

Carpet in Bedrooms X

Water Tank Heater X

Electrical (In-Line) Heater X

Kitchen Yes No Community Facilities Yes No

Granite Counter Tops X Guard House X

Adjacent Family Room X Security Gate X

Adjacent Outdoors X Tele-Entry at Entrance Door X

Walk-in Pantry X Lobby with Concierge X

Alternative Eating Area X Full Electrical Generator X

High Quality Cabinets X Water Cistern Facilities X

Master Suite Yes No Club House with Bathrooms X

Whirlpool & Shower X Independent Storage Rooms X

Toilet & Bidet Room X Basketball Courts X

Double Sink X Racquetball or Tennis Courts X

Vanity Area X Volley Ball X

Walk-In Closets X Children's Play Area X

Additional Closet Area X Gymnasium X

Master Den X Pool X

Private Balcony X Kid's Pool &/or Jacuzzi X

Walking/Jogging Trail X

Garden and or Green Areas X

Street Signage X

Community Signs X




Buena Vista Competition Evaluation

Product

1. Location – Buena Vista is located off of road # 844 in Trujillo alto. The project is

located far from any principal highway. The surrounding neighborhood is picturesque.

Buena Vista is approximately 8 minutes from Tiffany Tower. The location of Buena

Vista is inferior to Tiffany Tower.

2. Apartment - The Buena Vista unit is larger in size (1,645 S.F.) and has better

finishings than Tiffany Tower. Most notably, the apartment has a kitchen with a granite

counter top, ample cabinets, an area for both a dish washer and wine cooler, and powder

room. Overall, the apartment of Buena Vista is better than Tiffany Tower.

3. Community - The Buena Vista community includes a guard house and non-covered

parking. The community is well maintained and has excellent landscaping. The Buena

Vista community is more than double the size of Tiffany Tower with 100 units. The

facilities include a pool, Jacuzzi, children’s play area and walking trails. An additional

300 units are scheduled for construction after the current inventory has been sold.

Price

Buena Vista is priced very competitively in the market area. The net price after non

government discounts is $264,000. The price per square foot is the lowest at $161. This

number is significantly lower than Tiffany Tower.

Placement & Positioning

Marketing Efforts – Buena Vista began delivering units at the end of 2007. It has over

75% of its inventory still available or 77 units. Special financing is being offered by

FirstMortgage whereby the client pays interest only for the first five years.

Buena Vista will be thus competing directly with Tiffany Tower for the foreseeable

future (24-36 months). Due to the size of the community, Buena Vista will most likely

continue to invest a considerable amount of money in media and other advertising. This

will pose a direct threat to Tiffany Tower.

Conclusion

Buena Vista location is inferior to Tiffany Tower. Although located on the same road as

Tiffany Tower, it substantially farther from the main highway. Buena Vista compensates

by offering a very attractive apartment, strong security, and very well maintained

recreational and green facilities. The price of the units is very competitive. Because of its

size, it will invariably outspend Tiffany Tower in marketing & advertising. Its current

absorption rate is 1.64 units per month. Buena Vista should be a project to follow closely.




Buena Vista Floor Plan




Buena Vista Site Plan




Buena Vista Entrance

Buena Vista Buildings (Back)




Buena Vista Kitchen

Buena Vista Family Room




Financing Offer FirstMortgage




EL MARIA KEY FACTS

City Cupey

Location Highway # 844

Access Via highway 199




Proximity to Metro Area In Metro Area



Developer ELMARIA Homes Corp.

Developer Experience Limited with product type and market

Financial Institution First Bank

Mortgage Institution First Mortgage

Total Units 64

Project Phases 2

Project Type Mid Rise with elevator

Community Fair- large open parking lot view

Curb Appeal Fair

Model Units I

Units per Floor 2 units


Actual Age New

Total Room Count 5

Bedrooms/Bath 3 bedroom and 2 baths

Total Construction Area (S.F.) 1,440 S.F.



Sales Incentives $10,000 (3.9%)


Reported Sales 14




Product Staging Good- model house with decoration

Sales Team Good

Energy Efficient Items/Tech Facilities Intelligent homes system

Data Sources Field Inspection







Elmaria Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X















Interior Garden X


Water Tank Heater X







Alternative Eating Area X Full Electrical Generator 4 outlets X









Master Den X Pool X




Street Signage X

Community Signs X




Elmaria Competition Evaluation

Product

1. Location – Elmaria is located off of Road #844 in Cupey. The project has various

other road linkages. Elmaria is approximately 3 minutes from Tiffany Tower. The

location of Elmaria is equal to Tiffany Tower.

2. Apartment - The Elmaria unit is approximately the same size (1,440 S.F.) and has

equal or worse finishings than Tiffany Tower. Most notably, the apartment has a kitchen

with walk-in pantry/laundry room, a large covered terrace (20’ x 7’), and double closets

in the master bedroom. Overall, the apartment of Elmaria is equivalent to Tiffany Tower.

3. Community - The Elmaria community includes a guard house and no covered parking.

Moreover, almost all the parkings are back-to-back. The Elmaria community has 64

units. The facilities include a pool, Jacuzzi, gazebo with bathrooms and shower and

children’s play area.

Price

Elmaria is priced less than the market area. The net price after non government discounts

is $249,000. The price per square foot is $173. This number is significantly lower than

Tiffany Tower.


Marketing Efforts – Elmaria has commenced the delivery of units in the 3rd

Quarter of

2008. It has 78% of its inventory still available or 50 units. It will be thus competing

directly with Tiffany Tower for the foreseeable future (12-24 months). As of present, its

advertising has been mainly in the print press - El Nuevo Dia.

Conclusion

Elmaria is located in a comparable location to Tiffany Tower. While the Elmaria

apartment has adequate finishings, it does offer a good design and plenty of storage

space. The principal draw back of Elmaria is its parking configuration. Elmaria has an

absorption rate of 1.4 units per month which is below the market area’s average.




ElMaria Buildings

ElMaria Recreational Facilities




Elmaria kitchen

View of Bathroom (Separate Toilet Room)




PLAZA DEL PALMAR KEY FACTS

City Guaynabo

Location Avenida Las Cumbres & Expreso Martínez

Nadal

Access Excellent directly of highway.


Key Location Amenities Centro de Bellas Artes de Guaynabo

Proximity to Tiffany Tower 20 minutes

Proximity to Metro Area Inside Guaynabo Metro Area

Location Summary Very Good


Developer Plaza del Palmar Development, Inc

Developer Experience Knowledgeable with product and market

Financial Institution

Mortgage Institution

Total Units 98

Project Phases 1

Project Type Apartment, Mid Rise

Community Parking lot centered. Poor location of

recreational facilities

Curb Appeal Good.

Model Units 3 bed / 2 baths and penthouse units.

Units per Floor 2


Actual Age New

Total Room Count 5

Bedrooms/Bath 3/2




Sales Incentives Appliances + 1% Legal Fees


Reported Sales 85 (87%)

Delivery Date 2006

Absorption Rate 3 units per month


Product Staging Decorated model house

Sales Team Fair, no discovery questions


Data Sources Field Inspections







Plaza del Palmar Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X















Interior Garden X


Water Tank Heater X
















Master Den X Pool X




Street Signage X

Community Signs X




Plaza del Palmar Competition Evaluation

Product

1. Location – Plaza del Palmar is located off of Ave. Las Cumbres in Guaynabo. The

project has various other road linkages. Plaza del Palmar is approximately 15 minutes

from Tiffany Tower. The location of Plaza del Palmar is equal to Tiffany Tower.

2. Apartment - The Plaza del Palmar unit is smaller (1,350 S.F.) than Tiffany tower and

has equal or better finishings. Most notably, the apartment has a kitchen with granite

counter top, and 9 foot ceilings. Overall, the apartment of Plaza del Palmar is equivalent

or better than Tiffany Tower.

3. Community - The Plaza del Palmar community includes a guard house and some

covered parking. Many of the parking spaces are back-to-back. The Plaza del Palmar

community has 98 units. The facilities include a club house, pool, Jacuzzi, gazebo with

bathrooms, showers and children’s play area.

Price

Plaza del Palmar is priced less than the market area. The net price after non government

discounts is $270,000. The price per square foot is $200. This number is lower than

Tiffany Tower.


Marketing Efforts – Plaza del Palmar began delivering units in 2006. The majority of its

inventory (87% has been delivered.) The remaining 13 units will be competing directly

with Tiffany Tower in the short term (12 months). As of present, Plaza del Palmar’s


Conclusion

Plaza del Palmar is located on the far end of Guaynabo in a comparable location to

Tiffany Tower. The Plaza del Palmar apartment has good finishings and the community

offers adequate recreational facilities. The principal draw back of Plaza del Palmar is its

parking configuration.

Plaza del Palmar has an absorption rate of 3 units per month. This absorption rate is

higher than market average. This is principally a result of coming on-line prior to the

economic recession.




Plaza del Palmar Site plan




Plaza del Palmar Floor Plan

Plaza del Palmar

Recreational facilities




Compact Hallway

Large Walk-In Closet




CASA MAGGIORE KEY FACTS

City Guaynabo

Location Calle Unión

Access Expreso Martínez Nadal


Key Location Amenities Cento Bellas Artes Guaynabo


Proximity to Metro Area In Metro Area



Developer Creative Developments

Developer Experience Many projects in similar locations and

product type.

Financial Institution FEMBI


Total Units 90

Project Phases 1

Project Type Mid-Rise Apartment

Community Good facilities.

Curb Appeal Strong, Lush Landscaping

Model Units 4-Garden Villa, Balcony, Sub PH, PH

Units per Floor 2

Design Style Caribbean Mediterranean

Actual Age New Construction

Total Room Count 5

Bedrooms/Bath 3/2.5

Total Construction Area (S.F.) 1,670- 3,020 S.F.



Sales Incentives Appliances & cash bonus

Sales Price/Total S.F. $200.00

Reported Sales 18

Delivery Date 3rd

Quarter 2008

Absorption Rate 6 Units per month ( Initial delivery group)


Product Staging Excellent, good model house

Sales Team Good, use of some discovery questions.


Data Sources El Nuevo Dia Sección de Construcción,

Site Visit







Casa Maggiorie Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X



Intelli-Home System X Trash Room 1












Interior Garden X


Water Tank Heater X
















Master Den X Pool X




Street Signage X

Community Signs X




Casa Maggiore Competition Evaluation

Product

1. Location - Casa Maggiore is located off of the Martinez Nadal Highway in Guaynabo.

Immediately adjacent to the project is the highway and other multi-family projects. The

units all face the highway and are exposed to both noise and air pollution. Casa Maggiore

is approximately 15 minutes from Tiffany Tower. The project is principally for the

Guaynabo target market. The location of Casa Maggiore is equal to Tiffany Tower.

2. Apartment - The Casa Maggiore unit is larger in size (1,670 S.F.) and has better

finishings than Tiffany Tower. Most notably, the apartment has a kitchen with a granite

counter top, over the counter sinks, and a walk-in closet with a wood organization

system. The split air conditioning compressors are stored in the master balcony. Overall,

the apartment of Casa Maggiore is significantly better than Tiffany Tower.

3. Community - The Casa Maggiore community includes a guard house and covered

parking for over 85% of all the units. The Casa Maggiore community is almost double

the size of Tiffany tower with 90 units. The facilities include a pool, Jacuzzi,

gymnasium, children’s play area and walking trails.

Price

Casa Maggiore is priced competitively to the market area. The net price after non

government discounts is $334,000. The price per square foot is $200. This number is

significantly lower than Tiffany Tower.


Marketing Efforts – Casa Maggiore commenced the delivery of units in the 3rd

Quarter of

2008. It has over 80% of its inventory still available or 72 units. It will therefore compete

directly with Tiffany Tower for the foreseeable future (12-24 months). Due to the size of

the community, Casa Maggiore will most likely continue to invest a considerable amount

of money in media and other advertising. This will pose a direct threat to Tiffany Tower.

Conclusion

Casa Maggiore is located in a comparable location to Tiffany Tower. The adjacent

highway is a disturbance. The project compensates by offering a very attractive

apartment, strong security, and abundant recreational facilities. The price of the units is

competitive. Because of its size, it will invariably outspend Tiffany Tower in marketing

& advertising.




Casa Maggiore Building Facade

Casa Maggiore Covered Parking Entrance




Hallway Detail

Kitchen and laundry Room




Shower in Master Bedroom (notice towel branding)

Closet Organizing System




SAN JUAN TOWER KEY FACTS

City Cupey

Location Off Road #199 and #844

Access Adjacent to Highway

Neighborhood Characteristics Sub-urban, 50% Built Up, Middle Class.

Key Location Amenities Los Paseos Mall

Proximity to Tiffany Tower 1 minute

Proximity to Metro Area Within city center

Location Summary 4 ( 1 being lowest and 5 being best in market)

Location Grade Excellent location many amenities nearby

Developer Same Development team as Tiffany Tower

Developer Experience Much experience with similar product and

location.

Financial Institution N/A

Mortgage Institution N/A

Total Units 48

Project Phases 1

Project Type Condominium Apartments

Community Very good facilities and natural ambiance

Curb Appeal Excellent

Model Units 3 bedroom units

Units per Floor 2


Actual Age New

Total Room Count 5

Bedrooms/Bath 3/2




Sales Incentives N/A






Product Staging None, empty apartment

Sales Team Developer









San Juan Tower Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X















Interior Garden X


Water Tank Heater X
















Master Den X Pool X




Street Signage X

Community Signs X




San Juan Tower Competition Evaluation

Product

1. Location – San Juan Tower is located off of road #199. The project has very good

access and road linkages. San Juan Tower is approximately 1 minute from Tiffany

Tower. The location of San Juan Tower is equal to Tiffany Tower.

2. Apartment - The San Juan Tower unit is much larger (1,770 S.F.) than Tiffany tower

and has equal finishings. The unit has an independent laundry room, an outdoor storage

for the a/c compressors, and a large kitchen. The project was started in 2004. Overall, the

San Juan Tower Apartment is better than Tiffany Tower.

3. Community - The San Juan Tower community includes a guard house and both

covered and non-covered parking. The San Juan Tower community has 48 units. The

lobby areas are well designed and finished. The recreational facilities are extraordinarily

ample for such a as small community. The gymnasium and lounge are particularly grand.

The community facilities of San Juan Tower are better than Tiffany Tower.

Price

San Juan Tower’s net price is $360,000. The price is the highest in the market category.

The price per square foot is on par with the market average at $203. San Juan Tower is

finalizing its sales with the remaining 2 units.


Marketing Efforts – San Juan Tower’s sales are 96% complete and will thus not be

competing directly with Tiffany Tower.

Conclusion

San Juan Tower is located about 1 minute from Tiffany Tower. Its surrounding

community is greener and thus superior. The apartment is larger and the recreational

facilities are ample. The project is offering its last two units and will thus not be direct

competition.




San Juan Tower Parking

Kitchen Detail




Pool Area

Gym and Lounge


PORTALES DE ARCOBALENO KEY FACTS

City Cupey

Location Highway 8176, Ave. Víctor Labiosa

Access Very good directly of main road.




Proximity to Metro Area Inside Metro Area

Location Summary Very Good


Developer Lopez Homes Corp.

Developer Experience Track record with product but not location

Financial Institution Banco Popular de Puerto Rico

Mortgage Institution Popular Mortgage

Total Units 52

Project Phases 1

Project Type Condominium (sub-urban)

Community Parking lot centered.

Curb Appeal Adequate.

Model Units 7 different models (all 3 bedroom units).

Units per Floor 4 per floor


Actual Age New

Total Room Count 5

Bedrooms/Bath 3/2




Sales Incentives $10,000-$15,000 (4%)


Reported Sales 18




Product Staging Excellent-

Sales Team Very knowledgeable









Arcobaleno Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X















Interior Garden X


Water Tank Heater X
















Master Den X Pool X




Street Signage X

Community Signs X




Portales de Arcobaleno Competition Evaluation

Product

1. Location – Portales de Arcobaleno is located off of Highway 8176 on Ave. Víctor Labiosa.

The project has various other road linkages. Portales de Arcobaleno is approximately 5 minutes

from Tiffany Tower. The location of Portales de Arcobaleno is equal to Tiffany Tower.

2. Apartment - The Portales de Arcobaleno unit is larger (1,532 S.F.) than Tiffany tower and

has better finishings. Most notably, the apartment has a kitchen with a granite counter top,

ample cabinets, Jacuzzi in the master bath, and an interior garden area. Overall, the apartment

of Portales de Arcobaleno is better than Tiffany Tower.

3. Community - The Portales de Arcobaleno community includes a guard house and no covered

parking. Many of the parking spaces are back-to-back. The Portales de Arcobaleno community

has 98 units. The building has elegant hallways with stone wall coverings, open glass railing

staircase, and an excellent design for storage area and emergency staircase. The facilities

include a club house, pool, Jacuzzi, gazebo with bathrooms, showers and children’s play area.

The most impressive recreational element in Portales de Arcobaleno is its roof top gymnasium

and track. With the exception of the parkings, the community of Portales de Arcobaleno is better

than Tiffany Tower.

Price

Portales de Arcobaleno is priced slightly higher than the market area. The net price after non

government discounts is $316,000. The price per square foot is $206. This number is lower

than Tiffany Tower.


Marketing Efforts – Portales de Arcobaleno began delivering units in March of 2008. Only 35%

of its inventory has been delivered. The remaining 34 units will be competing directly with

Tiffany Tower in the foreseeable (12-24 months). As of present, Portales de Arcobaleno’s


Conclusion

Portales de Arcobaleno is located within a few minutes and in a comparable location to Tiffany

Tower. The Portales de Arcobaleno apartment has good finishings and the community offers

better than market recreational facilities. The principal drawback of Portales de Arcobaleno is

its parking configuration.

Portales de Arcobaleno has an absorption rate of 2.57 units per month. This absorption rate is

higher than market average. It will be direct competition to Tiffany Tower.




Building Facade

Parking Area




Main Stair

Club house with pool




Hallway (stone wall detail)

View of kitchen




REGENCY PARK KEY FACTS

City Guaynabo

Location Avenida Martínez Nadal, Exit 169

Access Near Highway but no direct access

Neighborhood Characteristics Sub-urban, 50% Built Up, Mid/low-Class.

Key Location Amenities None


Proximity to Metro Area Within 5 minutes of city center

Location Summary 2 ( 1 being lowest and 5 being best in market)

Location Grade Fair location, not many amenities nearby

Developer Israel Koppel

Developer Experience Much commercial experience, limited

residential


Total Units 148

Project Phases 1

Project Type Condominium

Community Fair

Curb Appeal Fair

Model Units 2 & 3 bedroom units

Units per Floor 8


Actual Age New

Total Room Count 5

Bedrooms/Bath 3/2




Sales Incentives $25,000




Absorption Rate 3 units per month


Product Staging Fair

Sales Team Poor









Regency Park Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X







Intercom System X Apartment Signs N/A








Interior Garden X


Water Tank Heater X
















Master Den X Pool X




Street Signage X

Community Signs X




Regency Park Competition Evaluation

Product

1. Location – Regency Park is located off of Martínez Nadal Highway. The project has adequate

access and road linkages. Regency Park is approximately 30 minutes from Tiffany Tower. The

location of Regency Park is equal to Tiffany Tower.

2. Apartment - The Regency Park unit is much smaller (1,136 S.F.) than Tiffany tower and has

worse finishings. The unit was delivered in 2005 and it is clearly out dated. Overall, the

Regency Park Apartment is inferior to Tiffany Tower.

3. Community - The Regency Park community includes a guard house and semi-covered

parking. The Regency Park community has 148 units. It is the second largest community in the

market area. The community facilities include a club house, pool, Jacuzzi, gymnasium, and

tennis/basketball court. The recreational elements in Regency Park are abundant yet not

luxurious. The community facilities of Regency Park are better than Tiffany Tower.

Price

Regency Park’s net price is $244,000. The price is the lowest in the market category. The price

per square foot, however, is above the market average at $215. Regency Park has had sales

problems since its inception. The project has been plagued with construction and permitting

issues. The project has sold over 89% of its units and is liquidating its inventory by offering

discounts of upwards of 9%.


Marketing Efforts – Regency Park has aggressively been marketing its project since 2006.

Assuming that Regency Park can continue its 3 unit per month absorption rate, the project will

thus be competing directly with Tiffany Tower for the next 12 months.

Conclusion

Regency Park is located about 30 minutes from Tiffany Tower. Its location is fair and the

apartment is dated. The project is offering aggressive discounts in order to liquidate its

remaining 16 units. Regency Park will thus not be direct competition.




Regency Park Building Facade




RIDGETOP LUXURY APARTMENTS KEY FACTS

City Guaynabo

Location Martínez Nadal Highway( PR 19, KM 0.3)

Access Fair small road access to project.


Key Location Amenities Guaynabo Area


Proximity to Metro Area Inside Metro Area

Location Summary Good


Developer Omega Engineering

Developer Experience Much large scale engineering experience


Total Units 160

Project Phases 3

Project Type Mid-Rise Apartments

Community Under Construction

Curb Appeal Fair – below road grade

Model Units Multiple units (all 3 bedrooms)

Units per Floor 2 Apts. Per Floor


Actual Age New

Total Room Count 6

Bedrooms/Bath 3 bedrooms and 2.5 baths




Sales Incentives None (pending delivery of units)

Sales Price/Total Construction Area $231 – highest in Market Area

Reported Sales Developer reports 35% options (56 units)

Delivery Date 1 Quarter 2008

Absorption Rate N/A


Product Staging None

Sales Team Fair – No sales personnel









RidgeTop Apartment Yes No


2 Bedroom Model X

Mid-Rise X

3 Bedroom Model X

Condominium X


Walk-Up X



8’ Ceilings X


9’ Ceilings X







Intercom System X Apartment Signs N/A








Interior Garden X


Water Tank Heater N/A

Electrical (In-Line) Heater N/A


Granite Counter Tops N/A Guard House X





High Quality Cabinets n/a Water Cistern Facilities X








Master Den X Pool X




Street Signage N/A

Community Signs N/A




RidgeTop luxury Apartments Competition Evaluation

Product

1. Location – RidgeTop Luxury Apartments is located off of Martínez Nadal Highway.

The project has poor access. However, the development is representing that a new road will

begin construction shortly and that it will connect the project directly with the Martínez Nadal

Highway. RidgeTop Luxury Apartments is approximately 20 minutes from Tiffany Tower. The

location of RidgeTop Luxury Apartments is inferior to Tiffany Tower.

2. Apartment - The RidgeTop Luxury Apartments unit is larger (1,538 S.F.) than Tiffany tower

and has better finishings. Although the model has not opened yet, the most notable design

features are the 9’ ceilings powder room, and large terrace with breakfast nook. Overall, the

Ridge Top Luxury Apartment is better than Tiffany Tower.

3. Community - The RidgeTop Luxury Apartments community will include a guard house and

semi-covered parking. The RidgeTop Luxury Apartments community has 160 units. It is the

largest community in the market area. The community facilities include a club house, pool,

Jacuzzi, gymnasium with sauna, and four gazebos. The most impressive recreational element in

RidgeTop Luxury Apartments is the lounge area with cooking facilities and wine cellar. The

community facilities of Ridge Top Luxury Apartments will presumably be better than Tiffany

Tower.

Price

RidgeTop Luxury Apartments net price is $355,000. The price per square foot is the highest in

the market area at $231. The reason for this is that RidgeTop Luxury Apartments does not offer

developer discounts. It is more than likely that when the project begins delivering units, it will

lower its prices to increase its absorption rate. If the project offers the market area average 4%

discount, its prices ($340,000) would be lower than Tiffany Tower.


Marketing Efforts – RidgeTop Luxury Apartments has not started to aggressively market its

project. The developer claims that it has the majority of its first phase is optioned.

Notwithstanding, the eventual closing of said options, the project will still have a considerable

inventory available- around 100 units. RidgeTop Luxury Apartments will thus be competing

directly with Tiffany Tower for the next (12-36 months). As of present, RidgeTop Luxury

Apartments has done some advertising in the print press and most likely will aggressively attack

the market in 2009.

Conclusion

RidgeTop Luxury Apartments location is fair, but if the new road is built, it will be in a

comparable location to Tiffany Tower. The RidgeTop Luxury Apartments apartment has good

finishings and the community offers better than market recreational facilities.




Ridge Top Site Plan




Ridge Top October 2008

First Deliveries Projected 1Q 2009




Artistic Rendering Recreational Facilities

Artistic Rendering Living Room




Recreational Facilities Tables

Below is a table with each project’s recreational facilities. Today, the industry standard sub-

urban multi-family product offers a gymnasium, pool with bathroom and shower, and child’s

play area. Because of land costs, only a small percentage (33%) has either a basketball or tennis

court.

Maintenance costs range from $148.00 to $350. The maintenance costs are usually derived by

using a pro-rata calculation based on the size of the apartment. The maintenance cost usually

covers the security guard, landscaping of common areas, and waste disposal.

It should be noted that Tiffany Tower is deficient in both the recreational facilities and the

security element. The majority of the market area (62%) has a fully equipped gymnasium.

These gyms usually include anywhere between 5-10 training machines and free weights. In

addition, 100% of the competition has a pool area with a shower and bathrooms.

As for security, which has been noted previously, all of the competition has a security guard

house that curtails vehicular traffic. Buena Vista, because of it size, also has an independent

security gate. Tiffany tower does not have either a security guard house or any other method to

curtail cars entering the premises.




Comparative Room Dimensions

Below is a table with each project’s key room dimensions. The main rooms were analyzed in

order to compare size and design efficiency.

In the master bedroom, Tiffany Tower competes favorably with 12’6” x16’.

Although the room has a comparatively small walk-in closet (3’ x 9’), it does have an

additional closet as only 1 other project can claim (33%).

The master bathroom is equal or inferior to the competition.

Tiffany Tower’s kitchen is smaller than the competitions with 8’4” x 11’.

The living room is about the same size and 71% of the competition has laundry closets

rather than rooms.

Tiffany Tower’s balcony is the second largest with 18’x 7’6”.

Competition matrix for residential tower

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Transcript of Competition matrix for residential tower