PROPOSED: Holliday Micro Units

The Holliday Micro-Unit project represents an opportunity for a developer to build a groundbreaking new concept for Central Oregon. Popular in other west coast markets, the micro-unit concept offers modern yet efficient unit layouts and encourages the use of both internal and external community spaces. This site is one of the last remaining sizable parcels directly adjacent to St. Charles Hospital in northeast Bend. This location should command extreme demand for long and mid-term renters seeking a more simple, communal and flexible living space. 
The ideal concept for operations given the design and location would be to rent approximately half of the units as furnished “mid-term” rentals (leases between 1 and 12 months), and the remaining units as market-rate, longer-term rentals. Premium rents would be achieved with the furnished mid-term units and are identified in the ProForma section of this memorandum.  
Proposed unit floor plans range in size between 300 and 405 square feet. Units include efficient living space, full size bathroom, large closet, sink, under counter refrigerator, large countertop with small appliance branch circuits and dedicated bike storage system. Each unit also offers private balcony or patio space.
Each of the three floors include approximately 465 square feet of centralized shared kitchen and living space. The common space design includes full-size oven and range top, large island with double sink, generous countertop surfaces and 200 square feet of lounge area. All centralized common spaces also include large bathroom and laundry facilities for tenant usage. 
Estimated project valuation at time of completion is $5,750,000 with a 6.02% capitalization rate. Valuation based on stabilized occupancy of 95% with in-place market and mid-term rents and realistic operating expense projections. This valuation is an estimate and considers an 18-month max construction timeline and improved market fundamentals at time of completion.