Winston-Salem Investment Group Finds Fertile Ground…in Burlington

A newly-formed investment group in Winston-Salem is finding some happy hunting for apartment communities…in Burlington. From an article in the Triad Business Journal:

Luke Chung and his new Winston-Salem-based VIP Syndicate have purchased the first of what he hopes will be several multifamily communities in the Triad.

Chung started in the city where he hopes to acquire many more properties: Burlington. VIP paid $4.48 million for Clifton Place Apartments at 2575 Eldermont St. to a Burlington LLC managed by Jason DeBoer and Jeffrey Gabriel.

“I’m looking to buy as much as I can in that area,” Chung told Triad Business Journal. “I’m very bullish on the Burlington market. I think there’s potential for a boom there in the near future.”

As the article points out, Burlington is one of the highest growth areas for apartments in the Triad. In fact, according to Real Data’s latest report (Oct, 17) Alamance-Burlington has more units under construction (628) than any other sub-market in the Triad. The next two closest are downtown Greensboro (372) and downtown Winston-Salem (344). With it’s proximity to both the Triad and the western edge of the Triangle market, Alamance-Burlington is uniquely positioned for immediate growth.

Rents Up, Vacancies Down in Piedmont Triad Apartment Market

Real Data’s October, 2017 market report for the Piedmont Triad was just published and the trends look good. Here are the highlights:

  • Vacancy rate: 5.2% (was 5.6% in October, 2016)
  • Average rent/SF: $0.876 (was $0.843 in October, 2016)
  • # of units: 67,560 (was 64,196 in October, 2016)
  • 1,814 units have been absorbed in the last year
  • 2,646 units are under construction, and another 1,870 are proposed

Real Data expects vacancies to remain around 5.0% over the next year.

Also of interest is how the various submarkets are performing. Most notable:

  • Highest rent per SF: Guilford-Central ($1.131) and Forsyth-Central ($1.056)
  • Lowest vacancy rate: Guilford-High Point (3.3%)
  • Highest vacancy rate: Guilford-Southwest (7.8%)
  • Most units under construction, as a percentage of all units surveyed: Alamance-Burlington (10.79%)

To get a full copy of Real Data’s Triad market report visit www.aptindex.com

Burlington Planning Commission Approves Two Apartment Projects

Burlington’s Planning and Zoning Commission recently approved two new apartment projects in the city. From the Burlington Times-News:

Walter Parks Architects of Richmond, Va., and Chad Porterfield, the owner of the former May Hosiery Mill in downtown Burlington, want to renovate the dilapidated mill into loft apartments. The first step in the project was get planning board approval to rezone the building at 612 S. Main St. to allow residences…

The project calls for 49 one-bedroom apartments that would average 632 square feet, and 21 two-bedroom apartments that would average 927 square feet. Rents would range from $875 to $1,260…

The other apartment project that the board approved is for an upscale 120-unit complex on the north side of Bonner Bridge Road in west Burlington. The complex would be geared to “upwardly mobile” younger professionals. It would include a clubhouse, fitness center and car wash bay.