District of Columbia Housing Authority

Washington,

Community Recreation Center Market Analysis, Programming, And Financial Analysis

In 2014 B&D was selected by the District of Columbia Housing Authority to conduct a planning study for a proposed community building. This building was slated to become part of a new mixed-income community developed on the site of a former public housing project and was envisioned by the Authority as a multifaceted enrichment center and hub for activities and positive civic interaction. Due to community members’ significant concerns about the proposed program, the Authority delayed the design process and retained us to develop a new building program that would carefully balance community needs with market fundamentals while working within the constraints of the existing building footprint. Our work would be used to modify existing floor plans and help solicit of a third-party operator. Our scope of work included a market analysis of the half-mile area around the proposed site that contained the population to be served. We also analyzed participation trends expected in that target market area. Additionally, we oversaw two large community meetings, several smaller working group meetings, numerous conversations with interested neighbors, and a Web-based survey of area residents. A competitive set analysis was then performed that examined various municipal and private recreational, community, fitness, educational, and daycare facilities in the area. We also developed a financial model for the building that included a 10-year operational pro forma, and presented three scenarios to project a range of financial outcomes.

Our primary findings revealed that the target market for the building, although small, had the ideal characteristics for driving membership and class participation revenue. Furthermore, based on our review of the competitive marketplace, we found an inadequate supply of fitness activities and enrichment classes and believed the proposed project could fill a defined market gap. Programming for the 18,000 SF building included space for day care, sports leagues, aerobics, yoga, dance, education, tutoring, cardio, and indoor play. From a financial perspective, we anticipated the project’s revenues could cover over 90% of its operating expenses. Groundbreaking on the new facility occurred on schedule in 2014, and the Authority used our plan to facilitate procurement of a third-party operator. The $11 million New Community Center at Capper/Carrollsburg opened in 2016.