book 2: market perspectives

MARKET INSIGHTS, SEGMENTATION AND MEASUREMENT

MARKETPERSPECTIVES

• STERLINGRANCH

2 | Sterling Ranch | Market Perspective

Preface

KNOWLEDGE OF THE MARKETPLACE is a powerful and necessary asset

to be used in a variety of ways. Presented here are market perspectives

specific to Sterling Ranch, Colorado.

In these pages are 1) a Market Overview of Douglas County, 2) demographic

and psychographic profiles of prospective residents, 3) future migration

trends of the area, 4) lot and product segmentation, and 5) the continuous

process for measuring and monitoring assumed segments measured against

actual inquiries and data captured from prospects.

The raw data for psychographic profiles and projections, as well as demographic

projections, is from Claritas, a Nielsen Company. Raw demographic data is gleaned from

the Census FactFinder tool. Other statistical and figure references have been culled from

various state, regional and national data aggregators.

Sterling Ranch | Market Perspective | 3

Table of Contents

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Demographic Profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Population Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Psychographic Profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Providence Village Lot and Product Segmentation . . . . . . . . . . . . . . 32

Measuring, Monitoring and Refining . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37


MarketOverview


The legacy of Colorado offers so much to appreciate and sustain today and going forward. It’s

outdoor opportunities and consistent job growth provide a strong foundation for those moving to

Colorado from other states, and for Coloradans migrating throughout the state. Sterling Ranch, CO,

located in the northwest quadrant of Douglas County, offers the amenities, lifestyles and balanced

commute that new and long-term residents of Colorado desire.

Situated between Roxborough and Chatfield State Parks with main access to downtown Denver via

Santa Fe Blvd (Highway 85), Sterling Ranch expects hard-working, educated and active residents

spanning from first-time buyers to move-down active adults. The orientation of the site sits adjacent

to Highlands Ranch, a 22,000-acre master-planned community with approximately 93,000 residents.

M A R K E T OV E R V I E W :

Perspectives on the Market


COLORADO AND DOUGLAS COUNTY’S POPULATION IS EXPERIENCING DYNAMIC GROWTH.

Stated in the January 2003 Census report, Endogenous Growth and Entrepreneurial Activity

in Cities, entrepreneurial activity and economic growth are positively associated. That is why

entrepreneurial activity in Colorado is an important factor for generating and continuing

economic growth.

According to the Ewing Marion Kauffman Foundation, Colorado ranked 5th in the nation for

entrepreneurial activity between 2000 and 2010.

• Colorado’s population increased by 17 percent, compared to a 10 percent increase for the

United States during the same period.

• Colorado employment grew by 8 percent, compared to 5 percent in the United States. • Personal income grew by 15 percent in Colorado, compared to 14 percent in the United States. • Colorado added 228,893 new jobs, a majority of which came from service-related industries.

The fastest growing sectors included health care, professional and technical services, finance

and insurance, and government.

The estimated population of Douglas County at the beginning of 2014 was 302,464 persons.

• 2.3% increase from the previous year’s estimate of 295,682.


Perspectives on the Market


Between 2000 and 2010, the population of Douglas County increased 62.4%

• Douglas County was the fastest growing county in Colorado.

• 16th fastest growing county in the nation.

In 2014, seniors make up 7.1% of the population in Douglas County, compared to 4.2% in 2000.

• By the year 2030, seniors are expected to be 20% of the total Douglas County population.

• The population age 65 and over increased 177.8% between 2000 and 2010.

In 2014, average household net worth of Douglas County residents was $1,014,651 compared to

Colorado’s average household net worth of $590,480.

• Median household income for Douglas County was $95,324.

• Douglas County ranked 9th in the nation for highest median household income among

counties with populations of 65,000 or more.

In 2013, 24% of Douglas County residents have moved.

• 22% of Douglas County residents have lived in their homes for five years or more.


THE HOME PRICES OF STERLING RANCH’S SURROUNDING AREAS ARECONSISTENTLY INCREASING.

HIGHLANDS RANCH The median sales price for homes in Highlands Ranch, CO for October 2014 to

January 2015 was $362,000.

• 13.1% increase compared to the prior year.

• Sales prices have appreciated 20.7% over the last 5 years in Highlands Ranch.

CASTLE ROCKThe median sales price for homes in Castle Rock, CO for October 14 to

January 15 was $325,750.

• 4.6% decrease compared to the prior year.

• Sales prices have appreciated 32.7% over the last 5 years in Castle Rock.

LITTLETON

The median sales price for homes in Littleton, CO for October 2014 to

January 2015 was $300,000.

• 14.5% increase compared to the prior year.

• Sales prices have appreciated 25% over the last 5 years in Littleton.


Perspectives on Home Values for Surrounding Towns


Perspectives on Home Values for Surrounding Towns


DemographicProfiles


CORE DEMOGRAPHIC INFORMATIONThe demographic data for Gender, Age and Ethnicity is taken from the 2009-2013 American

Community Survey 5-Year Estimate: Demographic and Housing Estimates.

The total population of Douglas County in 2010, the year this data was taken from, was: 285,465

GENDER Male: 49.6% of population

Female: 50.4% of population

AGEDominant

25-34 years: 11.2%

35-44 years: 17.5%

45-54 years: 16.5%

62 years and over: 10.9%

65 years and over: 8%

Median Age

36.9 years

ETHNICITYOne Race: 97.4%

White: 90.2%

Black or African American: 1.2%

Asian: 3.8%

Hispanic or Latino (of any race): 7.5%

Not Hispanic or Latino: 92.5%

D E M O G R A P H I C P R O F I L E S : D O U G L A S C O U N T Y, C O

Perspectives onthe People


The demographic data for Relationship, Households by Type and Housing Occupancy is taken

from the 2010 Demographic Profile Data: Profile of General Population and Housing Characters.

RELATIONSHIP (WITHIN HOUSEHOLD)

TOTAL POPULATION IN HOUSEHOLDS: 284,814

Homeowner: 35.7% of population

Spouse of Homeowner: 24% of population

Child: 34.2% of population

Child Under 18 Years: 29.3% of population

HOUSING OCCUPANCY

TOTAL HOUSING UNITS: 106,859

Occupied Housing Units: 95.5%

Vacant Housing Units: 4.5%

For Rent: 1%

Rented, not occupied: .1%

For sale: 1.5%

Sold, not occupied: .3%

Seasonal, recreational or occasional use: .8%

HOUSEHOLDS BY TYPE

TOTAL HOUSEHOLDS: 102,018

Family Households: 77.5% of population

Family Households with Children Under 18

Years: 43.1% of population

Husband-wife Family: 67.1% of population

Husband-wife with Children Under 18 Years:

36.1% of population

Male householder, no wife: 3.4% of population

Male householder with

Children Under 18 Years: 2.2% of population

Female householder,

no husband: 7.1% of population

Female householder with

Children Under 18 Years: 4.7%

Nonfamily Households: 22.5% of population

Male Living Alone: 8% of population

Male Over 65 Years: .9% of population

Female Living Alone: 10% of population

Female Over 65 Years: 2.8% of population

Households with individuals under 18 years: 44.7%

Households with individuals 65 years and over: 14%




The demographic data for Employment Status, Occupation and Income & Benefits is taken from

the 2009-2013 American Community Survey 5-Year Estimates: Selected Economic Characteristics.

EMPLOYMENT STATUS

POPULATION 16 YEARS AND OVER: 214,419

In labor force: 74.2% of population

Civilian labor force: 74%

Employed: 69.9%

Unemployed: 4.2%

Armed Forces (Non-civilian): .2%

OCCUPATION

CIVILIAN EMPLOYED POPULATION 16 YEARS AND OVER: 149,780

Management, business, science and arts:

54% of population

Service occupations: 10.9% of population

Sales and office: 26.2% of population

Natural resources, construction and

maintenance: 4.2% of population

Production, transportation and material

moving: 4.7% of population

INCOME

TOTAL HOUSEHOLDS: 103,780

$35,000-$49,999: 7.7% of population

$50,000-$74,999: 14.4% of population

$75,000-$99,999: 15.2% of population

$100,000-$149,999: 25% of population

$150,000-$199,999: 12.9% of population

$200,000 or more: 13.2% of population

Median HHI: $101,591

Mean HHI: $121,999

TOTAL FAMILIES: 81,035

Less than $34,999: 7.5% of population

$35,000-$49,999: 5.9% of population

$50,000-$74,999: 12.7% of population

$75,000-$99,999: 15.2% of population

$100,000-$149,999: 27.8% of population

$150,000-$199,999: 15.2% of population

$200,000 or more: 15.7% of population

Median Family Income: $112,930

Mean Family Income: $135,267




PopulationMigration


Three ZIP codes have been selected to gauge migration trends in and around Sterling Ranch

based on the economic activity of cities, towns and communities within.

80125 - The ZIP code of Sterling Ranch, CO.

80129 - The ZIP code of Highlands Ranch, CO; directly adjacent to Sterling Ranch.

80130 - The eastern ZIP code of Highlands Ranch, CO and Lone Tree, CO.

Based upon demographic migration trends of ZIP codes listed above, projected through year

2020, all within Douglas County, the following criteria have been gleaned:

The median age of the population is getting older. On average between the three ZIP codes

listed, the median age in 2020 will become 39 years old, a 3.47% increase from 2015.

• Within the Sterling Ranch ZIP code: Ages 55-64 increase from 13.56% of the population

in 2015 to 15.20% in 2020.

• Within the Sterling Ranch ZIP code: Ages 65-74 increase from 6.67% of the population

in 2015 to 8.79% in 2020.

The median age of the householder is getting older. On average between the three ZIP codes

listed, the median householder age in 2020 will become 52 years old, a 5.2% increase from 2015.

• Within the Sterling Ranch ZIP code: Householder ages 55-64 increase from 21.53% of the

population in 2015 to 24.17% in 2020.

• Within the Sterling Ranch ZIP code: Householder ages 65 to 74 increase from 11.07%

in 2015 to 14.60% in 2020.

The median household income is increasing. On average between the three ZIP codes listed, the

median household income will become $120,473, a 10.2% increase from 2015.

• Within the Sterling Ranch ZIP code: The median household income increases from

$112,434 in 2015 to $124,955 in 2020.

• Within the Sterling Ranch ZIP code: Household incomes between $200,000-$249,000

increase from 6.15% in 2015 to 8.74% in 2020.

*A householder is defined as the owner or primary occupant of a home, also known as

“the head of a household.”

P O P U L AT I O N M I G R AT I O N : S E L E C T Z I P C O D E S

Future Projections of Demographic Data


35.0

36.0

37.0

38.0

39.0

40.0

41.0

Median Age

2000* / 2010** 2015 2020

40.338.737

P O P U L AT I O N M I G R AT I O N : 8 0 1 2 5 L I T T L E TO N , C O

2010 2015 2020

8.82%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

0 - 4 yrs

5 - 9 yrs

15 - 17 yrs

18 - 20 yrs

10 - 14 yrs 21 - 24 yrs

25 - 34 yrs

35 - 44 yrs

45 - 54 yrs

55 - 64 yrs

65 - 74 yrs

85 yrs +

75 - 84 yrs

2010 2015 2020

8.82%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

0 - 4 yrs

5 - 9 yrs

15 - 17 yrs

18 - 20 yrs

10 - 14 yrs 21 - 24 yrs

25 - 34 yrs

35 - 44 yrs

45 - 54 yrs

55 - 64 yrs

65 - 74 yrs

85 yrs +

75 - 84 yrs

2010 2015 2020

8.82%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

0 - 4 yrs

5 - 9 yrs

15 - 17 yrs

18 - 20 yrs

10 - 14 yrs 21 - 24 yrs

25 - 34 yrs

35 - 44 yrs

45 - 54 yrs

55 - 64 yrs

65 - 74 yrs

85 yrs +

75 - 84 yrs

2010 2015 2020

8.82%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

0 - 4 yrs

5 - 9 yrs

15 - 17 yrs

18 - 20 yrs

10 - 14 yrs 21 - 24 yrs

25 - 34 yrs

35 - 44 yrs

45 - 54 yrs

55 - 64 yrs

65 - 74 yrs

85 yrs +

75 - 84 yrs

2000/2010 2015 2020

Age Projections

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Householder Under 25

Years

Householder 25 to 34 Years






Householder 85 Years and

over

2000* / 2010** 2015 2020

Total Pop: 11,674 HHTotal Pop: 10,519 HH Total Pop: 12,758 HH

HOUSEHOLDER AGE



Ethnicity Projections

2010 2015 2020

0.57%

0.36%

1.79%0.05%

0.20%1.95% 0.63%

0.30%

1.82%0.06%

0.18%2.07% 0.69%

0.23%

1.83%0.08%

0.20%2.21%

95.08% 94.94% 94.77%

White Alone

Black or African American Alone

American Indian and Alaska Native Alone

Asian Alone

Native Hawaiian & Other Pacific Islander Alone

Other Race

Two or More Races

White Alone



Asian Alone


Other Race

Two or More Races

2010 2015 2020

0.57%

0.36%

1.79%0.05%

0.20%1.95% 0.63%

0.30%

1.82%0.06%

0.18%2.07% 0.69%

0.23%

1.83%0.08%

0.20%2.21%

95.08% 94.94% 94.77%

White Alone



Asian Alone


Other Race

Two or More Races

White Alone



Asian Alone


Other Race

Two or More Races

2010 2015 2020

0.57%

0.36%

1.79%0.05%

0.20%1.95% 0.63%

0.30%

1.82%0.06%

0.18%2.07% 0.69%

0.23%

1.83%0.08%

0.20%2.21%

95.08% 94.94% 94.77%

White Alone



Asian Alone


Other Race

Two or More Races

White Alone



Asian Alone


Other Race

Two or More Races

2010 2015 2020

0.57%

0.36%

1.79%0.05%

0.20%1.95% 0.63%

0.30%

1.82%0.06%

0.18%2.07% 0.69%

0.23%

1.83%0.08%

0.20%2.21%

95.08% 94.94% 94.77%

White Alone



Asian Alone


Other Race

Two or More Races

White Alone



Asian Alone


Other Race

Two or More Races

2000/2010 2015 2020

RACE

Total Pop: 10,635 HH Total Pop: 11,488 HHTotal Pop: 9,694 HH

2010 2015 2020

White Alone



Asian Alone


Some Other Race Alone

Two or More Races

Hispanic or Latino

Not Hispanic or Latino

$76,079 $112,955

$105,357

$62,500

$123,438

$30,000

$112,500

$83,654

$90,051

$113,412 $126,031

$107,813

$62,500

$134,375

$35,000

$117,500

$89,063

$102,232

$126,203

$32,500

$46,500

$62,500

$69,318

$75,000

$81,597

$74,932

2010 2015 2020

White Alone



Asian Alone



Two or More Races

Hispanic or Latino


$76,079 $112,955

$105,357

$62,500

$123,438

$30,000

$112,500

$83,654

$90,051

$113,412 $126,031

$107,813

$62,500

$134,375

$35,000

$117,500

$89,063

$102,232

$126,203

$32,500

$46,500

$62,500

$69,318

$75,000

$81,597

$74,932

2010 2015 2020

White Alone



Asian Alone



Two or More Races

Hispanic or Latino


$76,079 $112,955

$105,357

$62,500

$123,438

$30,000

$112,500

$83,654

$90,051

$113,412 $126,031

$107,813

$62,500

$134,375

$35,000

$117,500

$89,063

$102,232

$126,203

$32,500

$46,500

$62,500

$69,318

$75,000

$81,597

$74,932

2010 2015 2020

White Alone



Asian Alone



Two or More Races

Hispanic or Latino


$76,079 $112,955

$105,357

$62,500

$123,438

$30,000

$112,500

$83,654

$90,051

$113,412 $126,031

$107,813

$62,500

$134,375

$35,000

$117,500

$89,063

$102,232

$126,203

$32,500

$46,500

$62,500

$69,318

$75,000

$81,597

$74,932

MEDIAN HOUSEHOLD INCOME BY RACE



2010 2015 2020

8.82%

5.01%2.38%

3.22%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

10.91%

28.08%

20.49%

11.90%

7.59%4.27%

2.58%2.63%

0.94% 2.97%1.29%

4.79%

8.04%

9.42%

11.10%

13.47%

14.01%

12.06%

14.19%

6.15%

7.51%

2.60%1.20%

3.49%

4.62%

7.58%

10.66%

11.88%

12.61%11.97%

15.64%

8.74%

9.01%

Less than $15,000

$15,000 - 24,999

$35,000 - 49,999

$50,000 - 74,999

$25,000 - 34,999 $75,000 - 99,999

$100,000 - 124,999

$125,000 - 149,999

$150,000 - 199,999

$200,000 - 249,999

$250,000 - 499,999

$500,000 +

2010 2015 2020

8.82%

5.01%2.38%

3.22%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

10.91%

28.08%

20.49%

11.90%

7.59%4.27%

2.58%2.63%

0.94% 2.97%1.29%

4.79%

8.04%

9.42%

11.10%

13.47%

14.01%

12.06%

14.19%

6.15%

7.51%

2.60%1.20%

3.49%

4.62%

7.58%

10.66%

11.88%

12.61%11.97%

15.64%

8.74%

9.01%

Less than $15,000

$15,000 - 24,999

$35,000 - 49,999

$50,000 - 74,999

$25,000 - 34,999 $75,000 - 99,999

$100,000 - 124,999

$125,000 - 149,999

$150,000 - 199,999

$200,000 - 249,999

$250,000 - 499,999

$500,000 +

2010 2015 2020

8.82%

5.01%2.38%

3.22%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

10.91%

28.08%

20.49%

11.90%

7.59%4.27%

2.58%2.63%

0.94% 2.97%1.29%

4.79%

8.04%

9.42%

11.10%

13.47%

14.01%

12.06%

14.19%

6.15%

7.51%

2.60%1.20%

3.49%

4.62%

7.58%

10.66%

11.88%

12.61%11.97%

15.64%

8.74%

9.01%

Less than $15,000

$15,000 - 24,999

$35,000 - 49,999

$50,000 - 74,999

$25,000 - 34,999 $75,000 - 99,999

$100,000 - 124,999

$125,000 - 149,999

$150,000 - 199,999

$200,000 - 249,999

$250,000 - 499,999

$500,000 +

2010 2015 2020

8.82%

5.01%2.38%

3.22%

9.26%

7.73%

4.03%

2.06%2.15%

12.24%

18.79%

16.68%

11.42%

5.05%1.45%

0.32%

6.80% 6.42%

6.30%

8.12%

4.91%

4.29%

5.38%

7.04%

14.03%

15.62%

15.20%

8.79%8.07%

8.36%

4.37%

3.51%

3.61%

8.87%

17.09%

16.47%

13.56%

6.67%

2.13%0.49%

3.01%0.63%

10.91%

28.08%

20.49%

11.90%

7.59%4.27%

2.58%2.63%

0.94% 2.97%1.29%

4.79%

8.04%

9.42%

11.10%

13.47%

14.01%

12.06%

14.19%

6.15%

7.51%

2.60%1.20%

3.49%

4.62%

7.58%

10.66%

11.88%

12.61%11.97%

15.64%

8.74%

9.01%

Less than $15,000

$15,000 - 24,999

$35,000 - 49,999

$50,000 - 74,999

$25,000 - 34,999 $75,000 - 99,999

$100,000 - 124,999

$125,000 - 149,999

$150,000 - 199,999

$200,000 - 249,999

$250,000 - 499,999

$500,000 +

2000/2010 2015 2020

Income ProjectionsHOUSEHOLD INCOME

MEDIAN & AVERAGE HOUSEHOLD INCOME

$0

$50,000

$100,000

$150,000

$200,000

Average Household Income Median Household Income

2000* / 2010** 2015 2020

$95,259

$75,484

$136,164

$112,434

$152,944

$124,955


2010 2015 2020

2- Person

3 - Person

4 - Person

5 - Person

6 - Person

7 - Person +

1- Person

2 - Person

3 - Person

4 - Person

5 - Person

40.25%

21.74%

24.72%

8.81%

3.27%1.21%

39.92%

22.35%

23.43%

9.45%

3.54%1.31%

40.29%

22.09%

22.84%

9.64%

3.69%1.45%


Household Projections

2000/2010

2010 2015 2020

2- Person

3 - Person

4 - Person

5 - Person

6 - Person

7 - Person +

1- Person

2 - Person

3 - Person

4 - Person

5 - Person

40.25%

21.74%

24.72%

8.81%

3.27%1.21%

39.92%

22.35%

23.43%

9.45%

3.54%1.31%

40.29%

22.09%

22.84%

9.64%

3.69%1.45%

Total Pop: 567 HH

Total Pop: 3,086 HH Total Pop: 3,419 HH Total Pop: 3,735 HH

Total Pop: 627 HH Total Pop: 683 HH

2015

NON-FAMILY HOUSEHOLDS

FAMILY HOUSEHOLDS

20202010 2015 2020

2.47%0.53%

75.84%

1- Person

2 - Person

3 - Person

4 - Person

20.99%

1.75%0.80%

82.14%

15.31%

1.76%0.59%

0.15%

82.14%

15.31%

1- Person

2 - Person

3 - Person

4 - Person

1- Person

2 - Person

3 - Person

4 - Person

6 - Person

83.60%

13.91%

2010 2015 2020

2.47%0.53%

75.84%

1- Person

2 - Person

3 - Person

4 - Person

20.99%

1.75%0.80%

82.14%

15.31%

1.76%0.59%

0.15%

82.14%

15.31%

1- Person

2 - Person

3 - Person

4 - Person

1- Person

2 - Person

3 - Person

4 - Person

6 - Person

83.60%

13.91%

2010 2015 2020

2- Person

3 - Person

4 - Person

5 - Person

6 - Person

7 - Person +

1- Person

2 - Person

3 - Person

4 - Person

5 - Person

40.25%

21.74%

24.72%

8.81%

3.27%1.21%

39.92%

22.35%

23.43%

9.45%

3.54%1.31%

40.29%

22.09%

22.84%

9.64%

3.69%1.45%

2010 2015 2020

2- Person

3 - Person

4 - Person

5 - Person

6 - Person

7 - Person +

1- Person

2 - Person

3 - Person

4 - Person

5 - Person

40.25%

21.74%

24.72%

8.81%

3.27%1.21%

39.92%

22.35%

23.43%

9.45%

3.54%1.31%

40.29%

22.09%

22.84%

9.64%

3.69%1.45%

2010 2015 2020

2- Person

3 - Person

4 - Person

5 - Person

6 - Person

7 - Person +

1- Person

2 - Person

3 - Person

4 - Person

5 - Person

40.25%

21.74%

24.72%

8.81%

3.27%1.21%

39.92%

22.35%

23.43%

9.45%

3.54%1.31%

40.29%

22.09%

22.84%

9.64%

3.69%1.45%

2010 2015 2020

2.47%0.53%

75.84%

1- Person

2 - Person

3 - Person

4 - Person

20.99%

1.75%0.80%

82.14%

15.31%

1.76%0.59%

0.15%

82.14%

15.31%

1- Person

2 - Person

3 - Person

4 - Person

1- Person

2 - Person

3 - Person

4 - Person

6 - Person

83.60%

13.91%


PsychographicProfiles


Projected residents in the Douglas County market area consist of affluent, active families both

with and without kids. This includes upscale families with dual incomes seeking the latest in

technology, varied home opportunities and easy access to activities and recreation.

The following pages present the top 10 PRIZM segments* that are projected to become

prospective residents of Sterling Ranch.

1. UPWARD BOUND

Median HHI: $88,455

Age Ranges: 35-54

2. BRITE LITES, LI’L CITY

Median HHI: $77,320

Age Ranges: <55

3. SECOND CITY ELITE

Median HHI: $79,563

Age Ranges: >55

4. MIDDLEBURG MANAGERS

Median HHI: $59,981

Age Ranges: 55+

5. COUNTRY SQUIRES


Age Ranges: 35-54

6. UP AND COMERS

Median HHI: $53,521

Age Ranges: 25-44

7. MOVERS AND SHAKERS

Median HHI: $70,940

Age Ranges: 45-64

8. WINNER’S CIRCLE


Age Ranges: 35-54

9. HOME SWEET HOME

Median HHI: $70,940

Age Ranges: <55

10. YOUNG INFLUENTIALS

Median HHI: $52,931

Age Ranges: <55

P S Y C H O G R A P H I C P R O F I L E S :

Psychographic Overview and Profiles

*PRIZM segments are based on national averages; the median household income does not

directly correlate to household incomes in Colorado.


ESTIMATED CURRENT HOUSEHOLDS 20.78%; PROJECTED 2019 HOUSEHOLDS 20.44%

Upscale Middle Age With Kids

More than any other segment, Upward Bound appears to be the home of those legendary Soccer

Moms and Dads. In these small satellite cities, these ethnically diverse, upscale families boast

dual incomes, college degrees, and new homes. Residents of Upward Bound tend to be kid-

obsessed, with heavy purchases of computers, action figures, dolls, board games, bicycles, and

camping equipment. They spend big on digital and wireless technology, business and cultural

media, casual dining restaurants, upscale retailers, foreign travel and luxury cars.


1 – Upward Bound

Age Ranges: 35-54

Median HHI: $88,455

Income Producing Assets: High

Employment: Management

Education: Graduate Plus

Ethnic Diversity: White, Asian, Hispanic, Mix

LIFESTYLE & MEDIA TRAITS • Order from zappos.com

• Vacation at National Parks

• Read Outside

• Watch America’s Funniest Home Videos

• Drive Mazda SUV

PRODUCT AMENITY CUES • Home is a long-term investment

• High-quality and good value are key

• Lifestyle focus with kids is central



Upscale Middle Age Without Kids

Not all of America’s chic sophisticates live in major metros. Brite Lites, Li’l City is a group of

well-off, middle-aged couples settled in the nation’s satellite cities. Residents of these typical

DINK (double income, no kids) households have college educations, well-paying business and

professional careers, and swank homes filled with the latest technology. This group is home

to many white, college-educated residents who make six-figure incomes at executive and

professional jobs but also extends to more middle class segments. This segment is found in

suburban and exurban communities, and consumers here are big fans of the latest technology,

financial products, aerobic exercise, and travel.


2 – Brite Lites, L’il City

Age Ranges: <55

Median HHI: $77,320

Income Producing Assets: High

Employment: Management

Education: Graduate Plus

Ethnic Diversity: White, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Shop at Costco

• Gamble in Las Vegas

• Read Runner’s World

• Watch The Simpsons

• Drive BMW M1

PRODUCT AMENITY CUES • Quality and good value are key

• Spend a lot of time entertaining at home

• Interested in home technology to make life easier



Upscale Middle Age Without Kids

There’s money to be found in the nation’s smaller cities, and you’re most likely to find it in Second

City Elite. The residents of these satellite cities tend to be prosperous professionals who decorate

their homes with multiple computers, large-screen TV sets, and an impressive collection of wines.

With more than half holding college degrees, Second City Elite residents enjoy cultural activities-

-from reading books to attending theater and dance productions. This segment features upscale

couples who are college educated, hold executive and professional positions and are over 45.

While their neighborhoods are found across a variety of landscapes--from urban to small-town

areas--they all share a propensity for living in large, older homes. With their children out of the

house, these consumers have plenty of disposable cash to finance active lifestyles rich in travel,

cultural events, exercise equipment, and business media. These folks are also community activists

who write politicians, volunteer for environmental groups, and vote regularly in elections.


3 – Second City Elite

Age Ranges: 45+Median HHI: $88,946Income Producing Assets: EliteEmployment: White Collar, MixEducation: Graduate PlusEthnic Diversity: White, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Shop at Neiman Marcus • Collect art • Read Smart Money • Watch Live from Lincoln Center • Drive Lexus ES

PRODUCT AMENITY CUES • Want a home for entertaining friends • Quality and performance are important attributes • Willing to spend on expenditures that enhance lifestyle



Upper Mid Older Without Kids

Middleburg Managers arose when empty nesters settled in satellite communities, which offered

a lower cost of living and more relaxed pace. Today, segment residents tend to be middle class

with solid white-collar jobs or comfortable retirements. In their older homes, they enjoy reading,

playing musical instruments, indoor gardening, and refinishing furniture. This segment offers a

portrait of quiet comfort. These childless singles and couples live in older suburban homes with

two cars in the driveway and a wooden deck out back. For leisure at home, they enjoy gardening,

reading books, watching public television, and entertaining neighbors over barbecues. When

they go out, it’s often to a local museum, the theater, or a casual-dining restaurant like the Olive

Garden or Lone Star Steakhouse.


4 – Middleburg Managers

Age Ranges: 55+Median HHI: $59,981Income Producing Assets: Above AverageEmployment: White Collar, MixEducation: College GraduateEthnic Diversity: White, Black, Mix

LIFESTYLE & MEDIA TRAITS • Shop at Pottery Barn • Vacation on cruise • Read Travel + Leisure • Watch Washington Week • Drive Hyundai Elantra Touring

PRODUCT AMENITY CUES • Wants backyard with a lot of space • Views home purchase as a long-term investment • Health conscious



Upscale Middle Age With Kids

The wealthiest residents in exurban America live in Country Squires, an oasis for affluent Baby

Boomers who’ve fled the city for the charms of small-town living. In their bucolic communities

noted for their recently built homes on sprawling properties, the families of executives live in six-

figure comfort. Country Squires enjoy country club sports like golf, tennis, and swimming, as well

as skiing, boating, and biking. These large family segments are filled with upscale professionals--

the group’s median income is nearly six figures--who have the disposable cash and sophisticated

tastes to indulge their children with electronic toys, computer games, and top-of-the-line

sporting equipment. The adults in these households are also a prime audience for print media,

expensive cars and frequent vacations--often to theme parks as well as European destinations.

Age Ranges: 35-54Median HHI: $108,749Income Producing Assets: HighEmployment: White Collar, MixEducation: Graduate PlusEthnic Diversity: White, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Order from amazon.com • Vacation at ski resorts • Read Shape • Watch The Biggest Loser • Drive Chevy Suburban Flex Fuel

PRODUCT AMENITY CUES • Leisure time is key• Cherish the tradition of a simpler life• Country living with city conveniences


5 - Country Squires



Upper Mid Younger Without Kids

Up-and-Comers is a stopover for younger, upper-midscale singles before they marry, have

families, and establish more deskbound lifestyles. Found in second-tier cities, these mobile

adults, mostly age 25 to 44, include a disproportionate number of recent college graduates

who are into athletic activities, the latest technology, and nightlife entertainment. Their incomes

range from working-class to well-to-do, but most residents are still renting apartments in cities

or close-in suburbs. This segment contains a high percentage of Asian singles, and there’s

a decidedly progressive sensibility in their tastes as reflected in the group’s liberal politics,

alternative music, and lively nightlife.


6 – Up and Comers

Age Ranges: 25-44Median HHI: $52,931Income Producing Assets: ModerateEmployment: ProfessionalEducation: College GraduateEthnic Diversity: White, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Order from priceline.com • Travel to South America • Read Cigar Aficionado • Watch South Park • Drive Nissan Altima Hybrid

PRODUCT AMENITY CUES • View home purchase as a Return on Investment • Highly active and interested in amenity-rich

community



Wealthy Older Without Kids

Movers & Shakers is home to America’s up-and-coming business class: an affluent suburban

world of dual-income couples who are highly educated, typically between the ages of 45 and

64, and without children. Given its high percentage of executives and white-collar professionals,

there’s a decided business bent to this segment: members of Movers & Shakers rank near the

top for owning a small business and having a home office. This group is home to many white,

college-educated residents who make six-figure incomes at executive and professional jobs but

also extends to more middle class segments. These segments are found in suburban and exurban

communities, and consumers here are big fans of the latest technology, financial products,

aerobic exercise, and travel.


7 - Movers and Shakers

Age Ranges: 45-64Median HHI: $70,940Income Producing Assets: EliteEmployment: ManagementEducation: Graduate PlusEthnic Diversity: White, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Shop at Nordstrom • Play tennis • Read Yoga Journal • Watch NHL games • Drive Land Rover

PRODUCT AMENITY CUES • Home is a symbol of their life achievements • Low-maintenance lifestyle is very appealing • Desire latest and greatest technology



8 – Winner’s Circle


Wealthy Middle Age With Kids

Among the wealthy suburban lifestyles, Winner’s Circle is the youngest, a collection of mostly 35-

to 54-year-old couples with large families in new-money subdivisions. Surrounding their homes

are the signs of upscale living: recreational parks, golf courses, and upscale malls. With a median

income over $100,000, Winner’s Circle residents are big spenders who like to travel, ski, go out

to eat, shop at clothing boutiques, and take in a show. The segments here are predominantly

white with significant concentrations of well-off Asian-Americans. Befitting their lofty salaries,

they are big consumers of large homes, expensive clothes, luxury cars, and foreign travel. Despite

representing a small portion of the U.S. population, they hold a large share of the nation’s

personal net worth.


8 – Winner’s Circle

Age Ranges: 35-54Median HHI: $112,580Income Producing Assets: EliteEmployment: ManagementEducation: Graduate PlusEthnic Diversity: White, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Shop at Ann Taylor • Visit theme parks • Read Inc. • Watch American Idol • Drive Mercedes-Benz SUV

PRODUCT AMENITY CUES • Appreciate convenience • Expect “red carpet” customer service • A need to “keep up with the Joneses”



Upper Mid Middle Age Without Kids

Widely scattered across the nation’s suburbs, the residents of Home Sweet Home tend to be

upper-middle-class married couples living in mid-sized homes without children. The adults in

the segment, mostly under 55, have gone to college and hold professional and white-collar

jobs. With their upper-middle-class incomes and small families, these folks have fashioned

comfortable lifestyles, filling their homes with exercise equipment, TV sets, and pets. This group

is home to many white, college-educated residents who make six-figure incomes at executive

and professional jobs but also extends to more middle class segments. Most of these segments

are found in suburban and exurban communities, and consumers here are big fans of the latest

technology, financial products, aerobic exercise, and travel.


9 – Home Sweet Home

Age Ranges: <55Median HHI: $70,940Income Producing Assets: Above AverageEmployment: ProfessionalEducation: College GraduateEthnic Diversity: White, Black, Asian, Mix

LIFESTYLE & MEDIA TRAITS • Order from buy.com • Download music • Read Wired • Watch The Amazing Race • Drive Mazda CX-7

PRODUCT AMENITY CUES • Look at home purchase as investment opportunity • Desire the latest and greatest technology



Midscale Middle Age Without Kids

Once known as the home of the nation’s yuppies, Young Influentials reflects the fading glow of

acquisitive yuppiedom. Today, the segment is a common address for middle-class singles and

couples who are more preoccupied with balancing work and leisure pursuits and who live in

apartment complexes surrounded by ball fields, health clubs, and casual-dining restaurants. Their

incomes range from working-class to well-to-do, but most residents are still renting apartments

in cities or close-in suburbs. This segment contains a high percentage of Asian singles, and

there’s a decidedly progressive sensibility in their tastes as reflected in the group’s liberal politics,

alternative music, and lively nightlife.


10 – Young Influentials

Age Ranges: <55Median HHI: $52,931Income Producing Assets: Above AverageEmployment: White Collar, Service, MixEducation: College GraduateEthnic Diversity: White, Black, Asian, Hispanic, Mix

LIFESTYLE & MEDIA TRAITS • Shop at Best Buy • Play racquetball • Read Details • Watch American Dad • Drive Mazda 3

PRODUCT AMENITY CUES • Have a focus on amenities and events of community


58% of the migration into Douglas County is from other counties in Colorado with Arapahoe,

Denver and Jefferson being the top three. Relocation from other states continues to be an

ongoing source of growth, with Californians and Texans being the top out-of-state migrators.

The psychographic profiles of current residents in surrounding areas generally represent the

future residents of Sterling Ranch. According to Nielsen and Claritas psychographic profile

projections, the top three PRIZM Psychographic Profile segments will continue to be the

dominant profiles in 2019.

The following projections are based upon the following ZIP codes:

80125*80129801268012480130

8012780128804658022880123

1. Profile: UPWARD BOUNDIn 2014, this segment makes up 20.78% of households.

In 2019, this segment is projected to be 20.44% of households.

2. Profile: BRITE LITES, LI’L CITYIn 2014, this segment makes up 12.14% of households.


3. Profile: SECOND CITY ELITEIn 2014, this segment makes up 9.81% of households.


* 80125 is the primary ZIP code of Sterling Ranch.

Who’s HeadedOur Way



Providence VillageLot and ProductSegmentation


Combining the current and projected PRIZM segments with household incomes of potential

residents, the Sterling Ranch lots have been segmented and are aptly named in accordance with

the prospective residents who are most likely to purchase.

DEFINING THE LOT SEGMENTS

ATTACHED-TOWN CENTER/TRADITIONAL: Low-maintenance, attached living- primarily for

first-time and second-time buyers.

TOWN CENTER/TRADITIONAL#1 ONWARD AND UPWARD: First-time and second-time buyers with or without children who have

dynamic careers and upward mobility.

#2 ONWARD AND UPWARD: Primarily second-time buyers with or without children who have

dynamic careers and upward mobility.

#3 ONWARD AND UPWARD: Move-up buyers with or without children who have dynamic careers

and upward mobility.

#2 FORWARD FAMILIES: Active adult buyers and mature families with discretionary spending.

#3 FORWARD FAMILIES: Active adult buyers and mature families with discretionary spending.

#1 PARK LIVING: Primarily move-up buyers with children seeking convenient parks and

open space.

#2 PARK LIVING: Move-up buyers with children seeking convenient parks and open space.

#1 MODERN FAMILY/PARK LIVING: Move-up buyers with and without children who have an affinity

to clean lines, contemporary design and modern living with convenient parks and open space.

#3 MODERN FAMILY: Second-time move-up buyers with and without children who have an affinity

to clean lines, contemporary design and modern living.

#1 NEW MILLENIAL: Tech-savvy, second-time/move-up buyers born from 1980 onward.

Perspectives onSegmentation

P R OV I D E N C E V I L L A G E L OT A N D P R O D U C T S E G M E N TAT I O N :


Upward Bound

Median HHI: $88,455 Age Ranges: 35-542014 ESTD HH 20.78%2019 PROJ HH 20.44%

Brite Lites, Li’l City

Median HHI: $77,320 Age Ranges: <552014 ESTD HH 12.14%2019 PROJ HH 12.07%

Country Squires


Second City Elite

Median HHI: $79,563 Age Ranges: >552014 ESTD HH 9.81%2019 PROJ HH 9.72%

Winner’s Circle


Home Sweet Home


Movers and Shakers


Young Influentials


Up and Comers


Middleburg Managers

Median HHI: $59,981 Age Ranges: 55+2014 ESTD HH 4.71%2019 PROJ HH 4.70%

Lot S

ize

Pros

pect

Seg

men

ts

PR

IMA

RY

SEC

ON

DA

RY

TER

TIA

RY

Perspectives onSegmentation


#1 Onward & Upward Town Center Traditional50’x110’ 375,000 425,000 50 1,500 - 2,500 Cardel

Various Model Complex 35

60’x110’ #1 New Millenial 500,000 600,000 28 2,500 - 3,500 TBD

60’x110’ #3 Modern Family 500,000 600,000 42 2,500 - 3,500 Wonderland Homes

55’x110’ #2 Modern Family 475,000 525,000 66 2,000 - 3,000 Century Homes

60’x90’ #1 Modern Family Park Living 650,000 800,000 16 2,800 - 3,800 Infinity

60’x110’ #2 Park Living 650,000 800,000 10 2,500 - 3,800 Parkwood

50’x110’ #1 Park Living 450,000 500,000 29 1,800 - 2,800 TBD

80’x110’ #3 Forward Family 800,000 950,000 35 3,000 - 5,000 Ryland



#3 Onward & Upward Traditional Family 60’x110’ 525,000 600,000 110 2,200 - 3,500 Meritage


Attached Town Center Traditional 300,000 350,000 144 1,000 - 1,800 Cardel

Prod

uct S

egm

ents


Avera

ge S

ales

Pric

e

Numbe

r of L

ots

Estim

ated

Squ

are

Feet

LOI t

o Con

tract


#1 Onward & Upward Town Center Traditional50’x110’ 375,000 425,000 50 1,500 - 2,500 Cardel

Various Model Complex 35

60’x110’ #1 New Millenial 500,000 600,000 28 2,500 - 3,500 TBD

60’x110’ #3 Modern Family 500,000 600,000 42 2,500 - 3,500 Wonderland Homes

55’x110’ #2 Modern Family 475,000 525,000 66 2,000 - 3,000 Century Homes

60’x90’ #1 Modern Family Park Living 650,000 800,000 16 2,800 - 3,800 Infinity

60’x110’ #2 Park Living 650,000 800,000 10 2,500 - 3,800 Parkwood

50’x110’ #1 Park Living 450,000 500,000 29 1,800 - 2,800 TBD






Attached Town Center Traditional 300,000 350,000 144 1,000 - 1,800 Cardel

Base

Sale

s Pric

e

The following chart describes the propensity of prospective residents to purchase home product

based upon lot specification, potential product, age-based needs and income thresholds.


Sterling Ranch, Colorado, with its forward-focus and longevity of development, requires

consistently updated market knowledge of future residents’ demographics and psychographics.

The measuring and monitoring of actual prospect inquiries and data capture ensure

real-time information to be measured. Through prospect data capture opportunities,

necessary information will be stored to accurately refine the most likely prospects

initially reported. Data that is necessary for refinement are full names and physical

addresses (Street, City, State and ZIP).

Initially, refinement to the psychographic and demographic data of prospective residents will

be disseminated on an annual basis. Depending on the tempo of prospect sign-ups and the

expeditiousness of developing new villages within Sterling Ranch, refinement updates may be

disseminated more frequently.

Please refer to Book 5: Builder Program for more information on how to receive

psychographic and demographic updates, and to understand what is needed from

each builder to assist in real-time reporting.

M E A S U R I N G , M O N I TO R I N G A N D R E F I N I N G :

An Ongoing Process


Conclusion

DATA IS NOTHING WITHOUT CONTEXT. Market knowledge is powerful,

but not without purpose. The context of capturing data to continually and

consistently update the market knowledge for Sterling Ranch is a powerful

and necessary asset that can be utilized in a variety of ways. This book is

for builders, developers, commercial representatives, and most importantly,

for ensuring the prospective residents are marketed to appropriately and

provided the type of community that is most compelling to them.


303.202.6800

©2015 Sterling Ranch Development Company All pricing, product specifications, amenities and landscaping is subject to change without prior notice.

book 2: market perspectives

Documents

market insights

highlands ranch

legacy of colorado

colorado employment

market perspectives

entrepreneurial activity

economic growth

demographic profiles