Marketlogics Analysis Helps Redesign MF Project

MOUNTAIN LAKES, NJ—Before Legacy of Mountain Lakes could become the successful townhome community that it is today, the project required an assessment and repositioning for it to reach its full market potential, says Michael A. Kehl, president of Marketlogics, an independent firm that specializes in property development research.

Three years ago HornRock Properties of Paramus acquired the partially completed development in Morris County from a bank. HornRock saw an opportunity to develop a new signature residential project in a prestigious community that could produce high returns. To properly position the project, the developer turned to Builder Marketing Services, which provided target marketing, merchandising and sales.

Marketlogics, a wholly owned subsidiary of Builder Marketing Services, was brought in to evaluate market conditions and determine what type of product would best fit homebuyers' needs.

“We helped HornRock make the decision as to whether to buy the property and then made recommendations on what they should build so the project could succeed with minimal risk,” says Kehl.

As a result of Marketlogics' in-depth market analysis, the developer reworked the existing plans and created an entirely new product line known as the Carriage Home Series, which complemented the higher-end Signature Home Series. The 47-home development opened in 2013, composed of two separate housing collections with numerous upscale design elements.

“Originally, plans called for townhomes and condominium flats, which were targeted to retirees,” says Kehl. “After looking at market conditions, we determined that it wasn't what the market needed at that point in time. So we replaced the condominium flats with more Millennial-based townhomes. We kept the higher-end townhomes and added a less expensive product that would appeal to young couples and families looking for homes.”

The research firm's findings also suggested modifying the floor plans. “For the Carriage Series, we went from two bedrooms to three,” says Kehl. “We also created an open concept for all the townhomes whereby the kitchen area flows into a spacious great room and dining room space. The original plans called for small separate rooms. Typically, an open concept works best for townhomes because it allows more light to flow through. We saw this trend of open concept living as being what the market would prefer.”

Another factor that resulted from Marketlogics' competitive market analysis was pricing of the units. “We did a market study and competitive analysis, which we combined with the demographics of the area to really come up with recommended pricing and feature levels for the townhomes,” Kehl says. “We found Mountain Lakes to be an affluent community that could easily support the luxury townhomes that were proposed.”

Construction of the townhome development is in its final phase, with just 10 units to be completed.

“With the last building under construction, we are on target with sales and should be sold out by the end of the year,” says Kehl. “Working with a developer during the early stages of planning and design, as in the case of Mountain Lakes, allows us to determine the appropriate product type, size and number of units to build so that the entire development is a success.”