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Show The Enterprise Review , November 17, 1976 Page 14b Ivory, Partner Speculate on Capitol Hill Properties Investment Summary Chuck Akerlow One of the key elements in making a decision to develop a commercial prop- erty is the feasibility study. There are many companies around town and in the intermountain area which claim to be experts in doing feasibility studies for commercial shopping centers or other retail projects. This report will give the reader an insight into what to took for when determining the competency of someone who purports to be able to do a feasibility study which will be regarded by the banks or other lenders as sufficient to support financing. A prospective developer should be concerned first with the track record of the individual or company proposing to do the study. See some of their past reports. Inquire of your lender if he has ever heard of them or done business with them. Examine the projects which came about as a result of the Check feasibility studies. the credentials of the principal staff of the company. Then look at the report itself. Most companies will dazzle you with pages and pages of population figures and graphs. While all of these things are important, most of them arc extracted from the 1970 census. Look to determine whether the information carefully i i being supplied is merely a repetition of all that is found in the census or has the information been scientifically selected to bear on the point of whether a retail development can be supFor ported at that site. example, be certain that the company proposing to do a 1) feasibility study has: defined a primary trade area no more than two miles in radius from the site; 2) included the present population figures of that trade area by census tract and projected them five years into the future (any projections beyond five years are largely hypothetical); 3) include by census tract a summary of Two Salt Lake City men have formed a partnership called Capitol Hills Proper- ties for the purpose of buying properties in the historical area surrounding the Utah State Capitol Building. Ellis Ivory and Clark Hinkley have purchased five old homes along Almond St. (about 100 West running north and south) and plan to buy four more properties in the same area. The two men, both of Ivory and Company, the largest developer of residential in the state, plan to sell the homes in about two years, Hinkley said. All homes were purchased on contract from repair and substantial cleanup work on the homes, he said, and we will rent 11 units in the five homes already purchased until we sell them in a few years. We believe all purchases we make in this area will be highly profitable. Although we havent determined the rate of increase in the value of the homes, we are anticipating substantial profits because of the historical status of the area, he added. the median and mean income and compares that to the income of the county as a whole or what might be considered the total trade area as a whole. The oldest home purchased by Hinkley and Ivory was built in 1872 by Ebenezer Insure that the feasibilBeesley, founder of Beesley Music Co., Salt ity study previously done by Lake. The Almond Street area was once Mormon owners. the company proposing to do referred to as the Beesley district. We plan to do some minor structural your work includes a definition of the primary trade area which would include not only population and income statistics, but a narrative distribution of the character of the neighborhood, shopping facilities presently available, schools, churches and other cultural activities within the A 39 percent increase in properties a week earlier trade area. Check to be sure selling for $7,176,926. multiple unit sales accounted that the study included a A total of 161 residential for an increase of 11 percent report on the traffic counts Verner Zinik of Zinik in real estate sales for the units sold during the week of around the primary site and Goods Co. week ending November 12, November 12 for a total of Sporting expects that the traffic counts show to Reala new Board Lake of Salt the $6,141,015. Average home begin operating some history to them. Zinik of at tors the close firm, manufacturing price was $38,143, compared reported The real key to whether to an average price of the week. Manufacturing Co., within the company is professional two weeks. The sale of eight large $42,402. The week prior 142 is the extent to which the He said the firm w'ould homes sold for $6,021,155. apartment complexes acmanufacture down-fille- d company analyzes the market Five commercial propercounted for $723,000 of the potential in the area. For outerwear of all types. He total multiple unit dwelling ties sold for $383,500, for an declined to estimate the volume for the week, raising example, is there a distribuaverage price of $76,700, up tion of the types of stores number of employees or the that total $259,050 above last only slightly over sales of found in the area compared size of the operation. weeks sales in that cata-gor$375,300 a week earlier with to the total square footage The location of the new an average price of $75,060. which could be supported by 1638 is South Redwood for week Total sales One farm sold for the plant in the population living the Road. came to $7,977,877 on 193 $164,000 and 12 vacant lots trade area. This is a key properties compared to 169 totaled sales of $358,062. The point. feasibility study must analyze how much square footage is presently devoted to retail activity in the primary trade area and Vt VA 8.0. FIIA 8.0 by computing the dollars available for retail purchases in the primary trade area a conclusion should be drawn as to how much unmet demand there is for retail square footage. This is the nut of the report. Some companies will do this in a general way. A good company will break up this analyses by different types of retail stores. Feasibility studies are Before a usually costly. decision is made to undertake one, the proposed developer should be certain in his own mind that the product he will get from the report will enable him to attract tenants and to finance his center or retail activities. sub-divisio- ns Apartment Sales Up; Realtors Report Gains Zinik to Begin Manufacturing y. MORTGAGE RATES Twelfth Federal Reserve District Loan Volume Large Commercial Banks ($ Million) t Week ending 10-20-- I I , ! T These rates were obtained by telephone conversation with the above institutions. The rates are correct to the best of our knowledge but their accuracy cannot be guaranteed. 4-- ; |