1. Edina Real Estate Market Update
Edina Chamber of Commerce
August 28, 2017
9/19/2018

2. June 2017 Commercial Real Estate Survey

3. June Homebuilders Sentiment Survey

9. Recent Apartment Development Activity in Edina
Name
Developer
No. of units
City
Type of Units
Status
Envi Edina
Doran Cos.
210
Edina
Market rate
Approved
Lincoln Drive Residences
Opus
244
Under construction
Millennium at Southdale
DLC Residential
375
Proposed
Unknown
Lennar Multifamily Investors
242
71 France
Schafer Richardson/Investors Real Estate Trust
246
Complete
Source: Finance & Commerce Apartment Tracker
Total
1317
Condo Development Making a Comeback
Most recent project Westin at the Galleria units
Proposed Estelle development condos and six brownstones including 50 affordable units with retail on 1st floor
40 Condos for Sale in Edina in July 1.7 month supply
24 Condos were sold in Edina in July

10. Senior Housing in Edina Aging Demographics Will Create Future Demand Opportunities

11. Affordable Housing Information
MSP 7 County Metro, Minnesota
FY 2017 MTSP Income Limit Area Median Income FY 2017 MTSP Income Limit Category
MSP Metro Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
Area Median Income $90,400
50 % Income Limits $31,650 $36,200 $40,700 $45,200 $48,850 $52,450 $56,050 $59,700
60 % Income Limits $37,980 $43,440 $48,840 $54,240 $58,620 $62,940 $67,260 $71,640
Affordable Housing at 50% of Area Median Income
Area Median Income (MSP metro) for a family of 4
$90,400
50% of AMI
$45,200
30% Max. Expense for Rent
$13,360
Monthly Rent
$1,113
Less Utilities
($50)
Net Income Available for Rent
$1,063
Prevailing 2 Bedroom Rents in Edina
$1,100 - $1,400
Vacancy is very low - few units are available
Affordable or Workforce Housing is Different Than Section 8 Housing

12. Affordable Housing in Edina
Most affordable housing programs determine eligibility based on the percent of AMI a given household's income is. Among the programs that determine eligibility based on the AMI are Section 8, HOME, LIHTC, Section 515, 202 and 811.
Edina, MN Affordable Housing Snapshot
Total Affordable Apartment Properties 5
Total Low Income Apartments
289
Total Rent Assisted Apartments
283
Source: Minnesota Compass.org
Edina’s Affordable Housing Policy
New rental developments with more than 20 units must have 10% to 20% of their units be affordable
Depends on the level of affordability
New for sale (condo) developments must have 10% of their units be affordable
1 Bedroom up to $250,000
2 Bedroom up to $300,000
3 Bedroom up to $350,000

13. Minneapolis / St. Paul Office Vacancy Q1 2017
Source: Colliers International
Look for little new traditional office development:
Little demand – users are trying to do more with less space
existing rents can’t justify new construction costs
Medical office is exception:
Medical Office Vacancy in the SW submarket is 2.8% compared
to the metro rate of 6.8%
Twin Cities Orthopedic 70,000 SF expansion