Upload
adam-greenfader
View
248
Download
2
Embed Size (px)
DESCRIPTION
Citation preview
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
2 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
3 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
4 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
5 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
ena
Vis
ta
ElM
ari
a
Pla
za P
alm
ar
Ca
sa M
ag
gio
re
Sa
n J
ua
n T
ow
er
Arc
ob
ale
no
Reg
ency
Pa
rk
Tif
fan
y T
ow
er
Rid
ge
To
p
Net Price
Multi-Family Project Table Cupey-Guaynabo Market Area
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
6 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
ena
Vis
ta
ElM
ari
a
Pla
za P
alm
ar
Ca
sa M
ag
gio
re
Sa
n J
ua
n T
ow
er
Arc
ob
ale
no
Reg
ency
Pa
rk
Tif
fan
y T
ow
er
Rid
ge
To
p
Price Per S.F.
Multi-Family Project Table
Cupey-Guaynabo Market Area
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
7 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Market Area Competition Map
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
8 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
9 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
10 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
11 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
12 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Buena Vista Floor Plan
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
13 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Buena Vista Site Plan
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
14 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Buena Vista Entrance
Buena Vista Buildings (Back)
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
15 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Buena Vista Kitchen
Buena Vista Family Room
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
16 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Financing Offer FirstMortgage
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
17 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
EL MARIA KEY FACTS
City Cupey
Location Highway # 844
Access Via highway 199
Neighborhood Characteristics Sub-urban, 75% Built Up, Middle-Class.
Key Location Amenities Señorial Plaza & Los Paseos
Proximity to Tiffany Tower 3 Minutes
Proximity to Metro Area In Metro Area
Location Summary Adjacent to major highway, easy access.
Location Grade 4 ( 1 being lowest and 5 being best in market)
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
Design Style Contemporary
Actual Age New
Total Room Count 5
Bedrooms/Bath 3 bedroom and 2 baths
Total Construction Area (S.F.) 1,440 S.F.
Observable Easements None
Sales Price $259,000
Sales Incentives $10,000 (3.9%)
Sales Price/Total Construction Area $173
Reported Sales 14
Delivery Date 12/1/07
Absorption Rate 1.4 units per month
Ownership Fee Simple
Product Staging Good- model house with decoration
Sales Team Good
Energy Efficient Items/Tech Facilities Intelligent homes system
Data Sources Field Inspection
Date of Inspection 10/7/08
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
18 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Elmaria 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 4 outlets 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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
19 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Placement & Positioning
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
20 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
21 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
ElMaria Buildings
ElMaria Recreational Facilities
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
22 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Elmaria kitchen
View of Bathroom (Separate Toilet Room)
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
23 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
PLAZA DEL PALMAR KEY FACTS
City Guaynabo
Location Avenida Las Cumbres & Expreso Martínez
Nadal
Access Excellent directly of highway.
Neighborhood Characteristics Sub-urban, 75% Built Up, Middle-Class.
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
Location Grade 3 ( 1 being lowest and 5 being best in market)
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
Design Style Contemporary
Actual Age New
Total Room Count 5
Bedrooms/Bath 3/2
Total Construction Area (S.F.) 1,350
Observable Easements None
Sales Price $277,000
Sales Incentives Appliances + 1% Legal Fees
Sales Price/Total Construction Area $200
Reported Sales 85 (87%)
Delivery Date 2006
Absorption Rate 3 units per month
Ownership Fee Simple
Product Staging Decorated model house
Sales Team Fair, no discovery questions
Energy Efficient Items None
Data Sources Field Inspections
Date of Inspection 10/08/08
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
24 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Plaza del Palmar 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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
25 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Placement & Positioning
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
advertising has been mainly in the print press - El Nuevo Dia.
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
26 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Plaza del Palmar Site plan
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
27 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
28 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Plaza del Palmar Floor Plan
Plaza del Palmar
Recreational facilities
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
29 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Compact Hallway
Large Walk-In Closet
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
30 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
CASA MAGGIORE KEY FACTS
City Guaynabo
Location Calle Unión
Access Expreso Martínez Nadal
Neighborhood Characteristics Sub-urban, 75% Built Up, Middle-Class.
Key Location Amenities Cento Bellas Artes Guaynabo
Proximity to Tiffany Tower 15 Minutes
Proximity to Metro Area In Metro Area
Location Summary Adjacent to major highway, easy access.
Location Grade 2 ( 1 being lowest and 5 being best in market)
Developer Creative Developments
Developer Experience Many projects in similar locations and
product type.
Financial Institution FEMBI
Mortgage Institution
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.
Observable Easements None
Sales Price $349,000
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)
Ownership Fee Simple
Product Staging Excellent, good model house
Sales Team Good, use of some discovery questions.
Energy Efficient Items None
Data Sources El Nuevo Dia Sección de Construcción,
Site Visit
Date of Inspection 10/05/08
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
31 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Casa Maggiorie 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 2
Powder Room X Emergency Staircase Per Floor 1
Intelli-Home System X Trash Room 1
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
32 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Placement & Positioning
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
33 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
34 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Casa Maggiore Building Facade
Casa Maggiore Covered Parking Entrance
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
35 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Hallway Detail
Kitchen and laundry Room
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
36 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Shower in Master Bedroom (notice towel branding)
Closet Organizing System
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
37 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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
Design Style Contemporary
Actual Age New
Total Room Count 5
Bedrooms/Bath 3/2
Total Construction Area (S.F.) 1,770 S.F.
Observable Easements None
Sales Price $360,000
Sales Incentives N/A
Sales Price/Total Construction Area $203
Reported Sales 46 (96%)
Delivery Date 9/6/2006
Absorption Rate 1.8 units per month
Ownership Fee Simple
Product Staging None, empty apartment
Sales Team Developer
Energy Efficient Items None
Data Sources Field Inspection
Date of Inspection 10/07/08
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
38 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
San Juan Tower 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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
39 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Placement & Positioning
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
40 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
San Juan Tower Parking
Kitchen Detail
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
41 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Pool Area
Gym and Lounge
42 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
PORTALES DE ARCOBALENO KEY FACTS
City Cupey
Location Highway 8176, Ave. Víctor Labiosa
Access Very good directly of main road.
Neighborhood Characteristics Sub-urban, 75% Built Up, Middle-Class.
Key Location Amenities Señorial Plaza & Los Paseos
Proximity to Tiffany Tower 5 minutes
Proximity to Metro Area Inside Metro Area
Location Summary Very Good
Location Grade 4 ( 1 being lowest and 5 being best in market)
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
Design Style Contemporary
Actual Age New
Total Room Count 5
Bedrooms/Bath 3/2
Total Construction Area (S.F.) 1,532
Observable Easements None
Sales Price $330,000
Sales Incentives $10,000-$15,000 (4%)
Sales Price/Total Construction Area $206
Reported Sales 18
Absorption Rate 2.57 units per month
Delivery Date 3/1/2008
Ownership Fee Simple
Product Staging Excellent-
Sales Team Very knowledgeable
Energy Efficient Items None
Data Sources Field Inspections
Date of Inspection 9/15/08
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
43 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Arcobaleno 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 4
9’ Ceilings X
Elevators Per Floor 2
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
44 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Placement & Positioning
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
advertising has been mainly in the print press - El Nuevo Dia.
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
45 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
46 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Building Facade
Parking Area
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
47 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Main Stair
Club house with pool
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
48 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Hallway (stone wall detail)
View of kitchen
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
49 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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 Tiffany Tower 25 minutes
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
Mortgage Institution
Total Units 148
Project Phases 1
Project Type Condominium
Community Fair
Curb Appeal Fair
Model Units 2 & 3 bedroom units
Units per Floor 8
Design Style Contemporary
Actual Age New
Total Room Count 5
Bedrooms/Bath 3/2
Total Construction Area (S.F.) 1,136 S.F.
Observable Easements None
Sales Price $269,000
Sales Incentives $25,000
Sales Price/Total Construction Area $215
Reported Sales 132 (89%)
Delivery Date 3/1/2005
Absorption Rate 3 units per month
Ownership Fee Simple
Product Staging Fair
Sales Team Poor
Energy Efficient Items None
Data Sources Field Inspection
Date of Inspection 7/12/07
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
50 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Regency Park 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 8
9’ Ceilings X
Elevators Per Floor 2
Powder Room X Emergency Staircase Per Floor 2
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 N/A
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
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
51 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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%.
Placement & Positioning
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
52 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Regency Park Building Facade
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
53 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
RIDGETOP LUXURY APARTMENTS KEY FACTS
City Guaynabo
Location Martínez Nadal Highway( PR 19, KM 0.3)
Access Fair small road access to project.
Neighborhood Characteristics Sub-urban, 75% Built Up, Middle-Class.
Key Location Amenities Guaynabo Area
Proximity to Tiffany Tower 20 minutes
Proximity to Metro Area Inside Metro Area
Location Summary Good
Location Grade 2 ( 1 being lowest and 5 being best in market)
Developer Omega Engineering
Developer Experience Much large scale engineering experience
Mortgage Institution
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
Design Style Contemporary
Actual Age New
Total Room Count 6
Bedrooms/Bath 3 bedrooms and 2.5 baths
Total Construction Area (S.F.) 1,538
Observable Easements None
Sales Price $355,000
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
Ownership Fee Simple
Product Staging None
Sales Team Fair – No sales personnel
Energy Efficient Items None
Data Sources Field Inspections
Date of Inspection 10/03/08
Legal Infrastructure HOA, Architectural guidelines, &
Restrictive Covenants
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
54 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
RidgeTop 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 N/A
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 N/A
Electrical (In-Line) Heater N/A
Kitchen Yes No Community Facilities Yes No
Granite Counter Tops N/A 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 n/a 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 N/A
Community Signs N/A
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
55 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Placement & Positioning
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
56 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
57 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Ridge Top Site Plan
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
58 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Ridge Top October 2008
First Deliveries Projected 1Q 2009
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
59 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Artistic Rendering Recreational Facilities
Artistic Rendering Living Room
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
60 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
61 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
62 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®
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”.
Diagnostic Analysis Tiffany Tower – Cupey, Puerto Rico
October 15, 2008 Doral Financial Corporation
63 AXYON - Advanced Solutions For Real Estate Development All Rights Reserved®