Low Rise

IDENTIFICATION of MODEL AREA

The Multi-Residential model is an income model that values all the multi-residential properties in Regina.  Multi-residential properties include non-condominium properties with four or more units, and apartment units typically located on upper floors of office and retail properties.

The Multi-Residential model is a city-wide model in application.  There are seven distinct multi-residential neighbourhoods located within the City of Regina municipal boundaries, each with varying types and ages of multi-residential buildings, land sizes and locational characteristics.  These neighbourhoods are defined on the enclosed map and are individually described below.

Zoning Descriptions

Properties valued by the Multi-Residential model reflect numerous zoning classifications, including contract zoning, commercial zoning and the majority reflecting residential zoning.  The following are the predominant residential zonings found throughout the various multi-residential neighbourhoods in Regina.  These are cursory generalized descriptions only and not meant to reflect complete details concerning these classifications:

• R1/R1A/R2 – Residential Detached; Residential Older Neighbourhood – Detached and Residential Semi-Detached; planned group of dwelling units
• R3/R4 – Residential Older Neighbourhood; planned group of dwelling units
• R4A – Residential Infill Housing; planned group of dwelling units; low rise apartments; seniors assisted living low rise apartments
• R6 – Residential Multiple Housing; apartments, low rise apartments, high rise apartments, seniors assisted living – low and high rise apartments

Neighbourhood 2610

Neighbourhood 2610 is located in Northwest Regina and is bordered on its south side by 9^th Avenue North between Pasqua Street and Courtney Street, and by CP tracks between Courtney Street and the western municipal boundary of the city.  Between Pasqua Street and Albert Street, the south boundary lies behind the subdivision known as Argyle Park; between Albert Street and Winnipeg Street, the south boundary wraps around north boundary of the Uplands subdivision.  The east boundaries are Pasqua Street, 12^th Avenue North and the city’s municipal boundaries north of 9^th Avenue North; south of 9^th Avenue North, the east boundary is Courtney Street.  The north and west boundaries are the city’s municipal boundaries.

There are 19 multi-residential developments in this neighbourhood, just over half falling under the residential zoning R6, the remainder falling under commercial zoning PUD or MS.  The majority of these developments are low rise apartment buildings (89%), with the remaining being townhouse developments.  These buildings were constructed between 1977 and 2014, reflecting an average year built of 1997.  Developments range in size from 12 units to 78 units, with an average unit count of 43.

Neighbourhood 2620

Neighbourhood 2620 encompasses properties located in north and west Regina.  This neighbourhood is located east and south of Neighbourhood 2610 and is bordered on its south side by the CP tracks west of Lewvan Drive to Courtney Street, and the CN tracks east of Lewvan Drive to Winnipeg Street.  The west boundaries are Catherwood Crescent south to 12^th Avenue North, then Pasqua Street south to 9^th Avenue North, then Courtney Street from 9^th Avenue North south to the CP tracks.  The east boundary is Winnipeg Street from Kowalchuk Crescent south to the CN tracks and then Lewvan Drive from there to the CP tracks.

There are 158 multi-residential developments in this neighbourhood, predominantly falling under residential zoning, the majority of which is R6.  The vast majority of these developments are low rise apartment buildings (85%), with a scattering of townhouse developments (15%).  These buildings were constructed between 1950 and 2012, reflecting an average year built of 1969.  Developments range in size from 4 units to 224 units, with an average unit count of 22.

Neighbourhood 2630

Neighbourhood 2630 encompasses properties located in north central Regina.  This neighbourhood is located east and south of Neighbourhood 2620 and is best described in three parts.  One part lies west of Broad Street to Lewvan Drive, bordered on the south by Saskatchewan Drive and on the north by the CN tracks.  The second part lies between Broad and Winnipeg Street, bordered by Victoria Avenue to the south and the CN tracks to the north.  The third part lies east of Winnipeg Street, with McDonald Street being the east boundary, again between Saskatchewan Drive and 4^th Avenue.

There are 51 multi-residential developments in this neighbourhood, predominantly falling under residential zoning, the majority of which is R4A.  Approximately 75% of these developments are low rise apartment buildings, with the remaining being townhouse developments.  These buildings were constructed between 1909 and 2013, reflecting an average year built of 1974.  Developments range in size from 4 units to 51 units, with an average unit count of 14.

Neighbourhood 2640

Neighbourhood 2640 encompasses properties located in central Regina, encompassing the downtown area, the Cathedral area and the Transitional area.  This neighbourhood is bordered on the south side by Wascana Lake and Wascana Creek, which also provide the west boundary to Saskatchewan Drive.  The north boundary is Saskatchewan Drive between Wascana Creek and Broad Street, then Victoria Avenue from Albert Street to Winnipeg Street, which is the east boundary for the neighbourhood.

There are 150 multi-residential developments in this neighbourhood, predominantly falling under residential zoning, the majority of which is R4A.  The vast majority of these developments are low rise apartment buildings (73%); the remaining 28% is fairly evenly split between townhouse developments and high rise developments.  These buildings were constructed between 1910 and 2013, reflecting an average year built of 1961.  Developments range in size from 4 units to 320 units, with an average unit count of 33.

Neighbourhood 2650

Neighbourhood 2650 lies immediately east of central Regina.  This neighbourhood is bordered on the south side by Wascana Lake between Winnipeg Street and the Ring Road, and Victoria Avenue East from the Ring Road to Brown Street

The north boundary is the CP tracks, the west boundary is Winnipeg Street, and the east boundary is the Ring Road from Wascana Creek to Victoria Avenue East and Brown Street from Victoria Avenue East to the CP tracks.

There are 71 multi-residential developments in this neighbourhood, all falling under residential zoning. The vast majority of these developments are low rise apartment buildings (89%); the remaining 11% are townhouse developments.  These buildings were constructed between 1945 and 2015, reflecting an average year built of 1969.  Developments range in size from 3 units to 150 units, with an average unit count of 21.

Neighbourhood 2670

Neighbourhood 2670 is located in south Regina and is bordered entirely on the north side by Wascana Lake and Wascana Creek.  The city’s municipal boundary forms both the south and east boundaries of this neighbourhood.  The west boundary is Lewvan drive from the creek to 25^th Avenue, and thereafter the city’s municipal boundaries.

There are 163 multi-residential developments in this neighbourhood, all falling under the residential zone R6.  The vast majority of these developments are low rise apartment buildings (98%); the remaining 2% are townhouse developments.  These buildings were constructed between 1954 and 2015, reflecting an average year built of 1963.  Developments range in size from 3 units to 170 units, with an average unit count of 20.

Neighbourhood 2680

Neighbourhood 2680 is located in southeast Regina and is bordered on the north by Victoria Avenue East from the Ring Road to Brown Street, and the CP tracks from Brown Street to the city’s municipal boundaries.  The south boundary is Wascana Creek and the city’s municipal boundaries.  The west boundary is the Ring Road from Wascana Creek to Victoria Avenue East and then Brown Street from Victoria Avenue East to the CP tracks.  The east boundary is the city’s municipal boundaries.

There are 15 multi-residential developments in this neighbourhood, predominantly falling under the residential zone R6, with the remaining development falling under an institutional or commercial zone.  The majority of these developments are low rise apartment buildings (60%); the remaining are townhouse developments.  These buildings were constructed between 1977 and 2014, reflecting an average year built of 1991 Developments range in size from 4 units to 96 units, with an average unit count of 41.

MAP

EXECUTIVE SUMMARY

Multi-Residential Model

Appraisal Cycle Date – January 1, 2017 to December 31, 2020

Effective Date of Valuation – January 1, 2015

Date of Report – May 17, 2018

Low Rise Rent Model

Vacancy

Overall Effective Gross Income Multipliers

Assessment to Sale Ratio Summary Results

SCOPE of DATA and ANALYSIS

Prior to 2016, the City Assessor requested copies of 2012, 2013, 2014 and 2015 rent rolls for all non-residential properties.  The data for the development of the mass appraisal net rent model came from these returned rent rolls. 

A total of 10,653 multi-residential rents were analyzed using multiple regression analysis. The rent model is an additive model that predicts rents based on the type of unit and other factors such as the effective age of the building, location of the building, location of the unit within the building. 

Multi-Residential Summary Results

The following table provides specific breakdown of the Low Rise rents along with statistical measurements.

Low Rise Rent Model

Vacancy

The typical 2015 vacancy was estimated from the returned rent rolls and indicated an adjustment of 6.9% for the inner city; 5.1% for the suburbs (Study Area 2610;2620;2670;2680)

Gross Income Multiplier and Adjustments

Gross income multipliers were estimated by dividing the predicted 2015 gross rental income generated from the rent model by adjusted sale prices.  The 62 sales used in the analysis occurred between January 1, 2011 and December 31, 2014.  The sales were verified by mailing questionnaires to both vendors and purchasers.  Sales were adjusted for chattels as reported; an analysis of 49 sales reporting chattels indicated an average of 1%, which was then applied to those sales where no adjustment was reported.  The sales were also adjusted to reflect the market as of the base date January 1, 2015. 

The reconciliation process for the resulting income multipliers involved reviewing multiple regression analysis results and reviewing results based on actual reported incomes.

The effective gross income multiplier analysis involved 62 sales, detailed in the following table.

The reconciliation process for determining economic gross income multiplier strata primarily involved multiple regression analysis, supported by a consultation process with individuals active in the Regina real estate market.  Recognized published gross income multiplier data were also reviewed.  The economic gross income multipliers are as follows:

MODEL TESTING

In mass appraisal, the most effective means of evaluating the accuracy of appraisals is a ratio study.  A ratio study compares the appraised values produced by the valuation models to arm’s length sale transactions in the marketplace.

The legislated statistical requirement affecting the assessment of multi-residential properties in Saskatchewan is for the median ratio of a city-wide assessment-to-sale ratio study to be within the range of 0.95 to 1.05.

The median assessment-to-sale ratio and Coefficient of Dispersion for this Multi-Residential model is provided below: