How to Beat the Competition
Location: Lehigh Valley, PA
Client: Private Developer
The Challenge: Marketlogics was retained to research the regional market and identify what type of single-family product could be designed and built that would corner the market and produce a sales pace well above the local norm.
The Resolution: Marketlogics researched the demographics and supply / demand by product type, style and price range. We then looked deeply into the current competition to find out what markets were not being fully served. The end result was recommending single-family floor plans and exterior styles that gave the impression of a much more expensive home that could still be built for cost that allowed for an affordable alternative missing from the market. Net result equaled 3.5 sales per month in a market that was lucky to get 1 to 2 sales per month.
Positioning for Occupancy
Location: Rahway, NJ
Client: Private Developer
The Challenge: Marketlogics scope of work was to analyze the competition to determine rents that could be charged in a large apartment complex yet to be constructed.
The Resolution: To fully understand what is currently on the market AND what new product is already scheduled to be added prior to the client's building. That understanding allowed for recommendations on pricing and features that do not overstate what the market can afford, but will yield a strong net income along with a relatively quick initial lease up pace.
To Revive a Master Planned Community
Location: North Central, PA
Client: Private Developer
The Challenge: To revive a large 10 year old master planned golf community that was struggling as a result of the Great Recession.
The Resolution: This part of Pennsylvania was hurt by the 2008 recession much more than most. The only way to revive the client's community was to carefully research the market to find who would be most likely to purchase there and what product and price point would fit that buyer. Market evaluations determined that the likeliest candidates were either first time buyers who were price conscious or an empty nester that did not care about the poor performing school district. The right targeted product has produced the best-selling community in the region.
Flexibility may be the Key
Location: Vineland, NJ
Client: Private Investment & Management Company
The Challenge: To find a viable & profitable use for a large undeveloped parcel that client has owned for several years in this slow-growth market.
The Resolution: Marketlogics looked at several market segments both from within and from outside of the box. The final recommendation was to create a blending of solutions that complement each other and fuel each other's success. This became a blending of market rate residential, student housing, some medical office and a self-storage facility.
Uncovering an alternate product line with better ROI
Location: Wichita, KS
Client: Private Developer
The Challenge: Marketlogics was asked to determine the probability for success of a high-rise luxury condominium to be built in a transitional infill location.
The Resolution: We identified local demographic trends compiled using market housing data. Based on our expert evaluation, we recommended an alternate product line that could be built at a lower cost and would offer a more affordable price point to the demographic base, thereby helping to maximize return on investment.
A successful change for a struggling project
Location: South Orange, NJ
Client: Private Developer
The Challenge: We were brought in to determine why a luxury condominium project was selling slowly and then recommend steps to create a better return on investment.
The Resolution: Based on encroaching demographic patterns and competitive environment, we determined that converting the building into a luxury rental complex would create a better financial return during a challenged market for condominiums. This resulted in a building lease-out in less than a year's time.
Reviving a property in a bear market
Location: Absecon, NJ
Client: Bank Owned Property
The Challenge: Marketlogics was brought in to determine the best course of action for a failed age-restricted project that had been partially built and sold before running into market resistance.
The Resolution: This project was a typical case of planning and building for a bull market when a bear market was just around the corner. We recommended a product modification from age-restriction to all ages that allowed multiple demographic markets to be targeted, allowing flexibility between a for-sale and for-rent community.
Finding a way to recover an investment
Location: Seaside Heights, NJ
Client: Bank Owned Property
The Challenge: We were asked to identify the highest and best use of a failed and partially started luxury townhouse project in a resort New Jersey shore community.
The Resolution: The property was planned under better market conditions with accelerating prices. With a downward spiraling market, the original product was too rich for the new market. We evaluated a wide variety of alternate uses based on both market and financial considerations. Our conclusion was that a lower cost, higher density condominium/apartment product type would better meet market absorptions and provide an acceptable return on the bank's investment while also providing for market flexibility.