Jon’s Extra Mile for Second Harvest Food Bank

Sending in the Pinch Hitter

Thanks to everyone who has been participating in our 2019 Summer Food Drive, we’ve raised more than 415,000 meals for Second Harvest Food Bank this summer, and we’re on track to pass the total we raised last year.

Every dollar raised for the food bank can be used to provide at least seven meals to kids in need. How does that work? Through their partnerships with grocery retailers and the USDA, the food bank is able to source nutritious food, including fresh meat, dairy, fruits and vegetables. The food bank’s culinary program uses some of the ingredients to prepare hot meals, and they are distributed along with fresh food to local pantries, summer feeding locations and soup kitchens across 18 counties.

Our goal for 2019 is to raise half a million meals, and we’re looking for that last boost to get us to the goal by July 31.

It’s time for Jon to step in! We’re offering him up for auction to help us reach our goal. The winner of the auction will have Jon all to yourself at your corporate office or chosen property for one day! Jon has maintenance skills, salesmanship skills, and a wealth of industry knowledge and experience, and we’re happy to share him with you for a day.

The Details

You can place your bid by donating to the team “Jon Lowder” on our donation page (click the button below). If you haven’t used the page before, just click “Donate Now,” then “Search for a Participant or Team,” then begin typing “Jon Lowder.”

  • The MINIMUM bid is a donation of $500, which equals 3,500 meals!
  • The donation must be made between today and July 31
  • ALL DONATIONS will go to the food bank and are NONREFUNDABLE – regardless of whether or not you win the auction
  • Whichever company has made the highest donation by 11:59pm on July 31 will win the grand prize: Jon Lowder for a day!
  • The company with the second-highest donation will win 2nd prize: Jon Lowder for half a day (half the day, all the awesome)

Once the auction is over, Jon will follow up to arrange a day to spend on your property, and PTAA will be sure it is well covered in our social media and other publicity!

Questions? Contact Jon with any questions you have before you donate.

DONATE TO BID!

Yardi Reports Triad’s Year-to-Year Rent Growth for June 2019

Yardi released its June Yardi Matrix Multifamily Report, its monthly summary of rental market conditions throughout the US, and found that the Triad’s rent growth is among the ten highest in smaller US metro markets. As you can see in the table below the Triad’s overall rent growth over the last year was 4.8%; “Lifestyle” rents increased by 6.2% and the “Renter-by-Necessity” sector of the market increased by 3.7%

You can download Yardi’s report by clicking here,

Developer Plans to Build Apartments in Opportunity Zone

A local developer is planning to build a 116-unit apartment community in an Opportunity Zone in Greensboro. From the Triad Business Journal:

Developer Jerome Myers has submitted a zoning application to the city of Greensboro for Technology Row, a 116-unit apartment community at 402-404 Penry Road, just west of the Interstate 840 urban loop in east Greensboro. Myers said the property is zoned for 72 units...

The property is in one of 12 Guilford County opportunity zones. An investor who holds an opportunity fund investment for 10 years can qualify for permanent exclusion from capital gains taxes…

The plan is for 96 flats – half to be two bedrooms and two baths – measuring 950 square feet, and the other half to be three bedrooms and two baths, measuring 1,150 square feet.

The remaining 20 units will be townhomes –11 with two bedrooms and 2 1/2 baths, measuring 1,050 square feet, and the others with three bedrooms.

Organization That Owns 10 Triad Shopping Centers Buys First Apartment Community

A New Jersey-based company currently owns ten shopping centers in the Piedmont Triad and has now entered the apartment market with the purchase of a Winston-Salem property. From the Triad Business Journal:

The Bedrin Organization, which owns 10 Triad shopping centers, has purchased Hilltop House Apartments in downtown Winston-Salem for $17.75 from retired Wachovia Corp. CEO and chairman L.M. “Bud” Baker in a deal that closed Monday…

The 169-unit community at 241 S. Cherry St., includes three buildings, and has an interesting history. The first building was built in 1962 as a Holiday Inn, later became a Best Western and was converted into 54 units in 2011 and 2012. The 50-room North Tower was built in 2012. The 65-unit South Tower was built in 2014 using pre-fabricated pod components.

“We are excited about where downtown Winston-Salem is going, with the arts and the culture that is there, with the Innovation Quarter,” said Garret Bedrin, who oversees acquisitions, leasing and investor relations for the New Jersey-based family company. “We want to make sure that there is a reasonably priced option for housing downtown.”

May 2019 Apartment Jobs Snapshot

The National Apartment Association has a nice infographic showing the apartment jobs outlook as the leasing season kicked into high gear. You’ll notice that Raleigh is on the list for metro areas with the largest concentration of job postings and it has the longest time to fill open positions.

Source: National Apartment Association

At Least 15 Apartment Communities in Forsyth County Have Been Sold in 12 Months

The Winston-Salem Journal ran a story in its June 8 edition highlighting the sale of 15 apartment communities in Forsyth County, and just today (June 20) another two were announced. The June 8 article does a nice job summarizing the many factors that contribute to the spike in transactions – demographics, lifestyle, costs – but one facet of the transactions that they pick up on is something that has been observed over the last year by apartment industry observers: a significant increase in out-of-town buyers of apartments. From the June 8 article:

Yet, there have been six apartment-complex purchases in Forsyth over the past three months, all by out-of-region and out-of-state buyers.

“Investors are trying to find what few pockets of value there are left in the apartment market,” said Mark Vitner, a senior economist for Wells Fargo Securities.

“Prices have been bid up so much in larger markets, such as Charlotte, Raleigh and Nashville, that investors are increasingly looking to markets that have been overlooked and show great potential for growth.

“Winston-Salem and Greensboro are at the top of the list of overlooked markets.”

If you’re wondering what the price points were for the transactions, we did a little “back of the napkin” calculating using the information from the article and some data we have in our membership files and found the following;

Those 15 communities have a total of 2,349 units and the combined total of sales prices was $136,640,000, or $58,169 per unit.

237-Unit Class-A Greensboro Apartment Community is Sold

Carlisle Residential has sold its Encore North community in Greensboro to Grimley Residential. The 237-unit community sold for $34.3 million, or $144,725 per door. Here are more details from an article in Multi-Housing News:

Carter-Haston will manage the community on behalf of the new owner. Built in 2017, the apartment property offering one- and two-bedroom homes is located at 3619 N. Elm St., less than 5 miles north of downtown Greensboro.

The community was built by Lomax Construction and comprises five three-story buildings, with an occupancy rate of nearly 94 percent, according to Yardi Matrix data. Amenities include a fitness center, swimming pool, resident lounge and dog park…

Grimley Residential’s Southeast portfolio is growing. Early last year, the company bought Preserve at Hardin Valley, a 296-unit community in Knoxville, Tenn., for $48 million from a joint venture between Crescent Bend Development and Cumberland Advisors, according to Yardi Matrix.

100-Unit Apartment Community in NW Greensboro Sold for $162,000 per Door

Apartment transactions in the Triad are continuing at a steady pace, the most recent example being a 100-unit community in northwest Greensboro. From the Triad Business Journal:

A luxury apartment community in the Piedmont Triad International Airport submarket has sold for $16.2 million...

Piedmont Place at 5817 Garden Village Court has 100 units with either one or two bedrooms, and garages. Amenities include hardwood floors, granite countertops, a tankless hot water system, garden tubs and a community clubhouse and pool.

The new owner has hired Hawthorne Residential Partners to manage the community, built in 2015. 

Enough About the Millennials – Let’s Talk About How Gen Z Will Impact the Apartment Market

Millennials have dominated the attention of the business world for so long that we’ve almost forgotten that there are other markets out there to conquer. (As a member of GenX you don’t want to get me started about how my whole generation was forgotten because we were squeezed between the Baby Boomers and the Millennials). Wouldn’t you know it, the successors to the Millennials, GenZ, are entering the rental housing market in a big way and they are starting to have an impact. Bob Pinnegar, NAA’s CEO, recently wrote about these changes for the Washington Post. Here’s an excerpt:

By 2020, Gen Z will represent 40 percent of all consumers. While most of the business insight into this generation (those born between the mid-1990s and early 2000s) has been focused on its spending habits as teenagers, its oldest members are now graduating college, entering the workforce and seeking apartment homes of their own…

Gen Z has never lived in a world without the Internet or social media. More than any previous generation, it takes for granted the availability of technology. An iPhone isn’t a technological achievement; it’s simply a part of daily life…

Gen Zers’ social media savvy also makes it critical to differentiate marketing and messaging for various channels… Gen Z uses Twitter more often than millennials, and that platform is an ideal way to reach them with real-time, immediate marketing messages such as sales offers and stories about new amenities. Instagram is for inspiration, so compelling images are essential, and Snapchat is perfect for storytelling through images…

Gen Zers were raised by the skeptics of Generation X and grew up during a recession. They are quick to fact-check claims and, as the IBM and NRF report found, “their focus is on quality and authenticity — not on marketing hype.” For property owners and managers, this means actively engaging with residents and taking a transparent approach when providing community information. Negative reviews online are not deleted; they are thoughtfully addressed.

Click here to read the entire article.

PTAA Members Visit the NC General Assembly

On May 22, 2019 a record number of representatives from the Piedmont Triad Apartment Association visited the North Carolina General Assembly and visited with over 30 state legislators as part of the Apartment Association of North Carolina’s 2019 Lobby Day. Here’s a link to AANC’s Legislative Packet which will provide you with an overview of the issues we discussed with legislators, and below you’ll find just a few of the many pictures we took with our state Representatives and Senators.

PTAA Members Ready to Meet with Legislators
Rep. Jerry Carter, District 65
Rep. Ashton Wheeler Clemmons, District 57
Rep. Jon Hardister, District 59
Rep. Ray Russell, District 93
Sen. Michael Garrett, District 27
Sen. Paul Lowe, Jr. District 32