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.

Carolina Woods Latest in a String of Winston-Salem Apartment Transactions

The Winston-Salem Journal ran a fairly in-depth article on the sale of Carolina Woods and the plans the new owner has for the community. Here’s a taste:

The Carolina Woods apartment community near Bethabara Park will go through a major renovation initiative as part of its new owner’s push into the North Carolina and Southeast metro markets…

Weiss owns and manages more than 600 multifamily units, more than 20,000 square feet of commercial space, and an 89-room boutique hotel, banquet hall and restaurant.

However, until it closed on the Carolina Woods community, all of its investments were in New Jersey and New York.”

The article also had an interesting bit of info about all of the apartment transactions in Winston-Salem over the last six months:

“The others include: 213-unit Loxley Chase in Winston-Salem selling for $16.25 million; 234-unit Morgan Place in Clemmons for $14.3 million; 204-unit Twin City Townhomes in Winston-Salem for $10.15 million; 144-unit Salem Crest in Winston-Salem for $7.5 million; 96-unit Woodlawn in Winston-Salem for $3.5 million; and the 49-unit apartment complex at 1976 Maryland Ave. in Winston-Salem for $1.45 million. “

Madison Hall Apartments (Clemmons) Sells for $9.5 Million

Colorado-based Interurban Companies recently closed on its purchase of Madison Hall Apartments in Clemmons from Ginkgo Investment Co. The 128-unit community sold for $9.5 million ($74,218 a door) and Interurban is in the process of making some upgrades to the property.

Interurban Companies of Centennial, Colo., closed on its $9.5 million acquistion of Madison Hall Apartments in Clemmons on Jan. 11, and began what CEO Bill Doogan termed “light upgrades” to the exterior of buildings, landscaping and amenities…

Interurban came into the Triad for the first time in January 2016 when it purchased Stadler Place, a 144-unit complex in Greensboro.