Canadian Company Continues Piedmont Push

A fairly recent entrant to the Piedmont Triad apartment market is bullish on the region and has decided to invest in another property. According to the Triad Business Journal, Living Well Homes has purchased Hunt’s View Apartments, adding to a portfolio that already includes Ashley Oaks Apartments and Hidden Lakes Apartments. From the article:

Living Well Homes, a Canadian-based company, acquired its third Greensboro apartment community since 2015, buying Hunt’s View Apartments at 3901 Battleground Ave. for $20.5 million, with plans to make $2 million in improvements…

Living Well bought Hunt’s View from a Raleigh-based LLC, which had owned it since 2011.

Driscoll said upcoming projects will include renovations to the leasing office and clubhouse with improvements to the business center, resident lounge and fitness center; new poolside pergolas and resort-style sundeck furniture; renovations of units with upgraded design features; repainting and repairs to building exteriors and added landscaping; new signage and color scheme; enhancements to the dog park and the addition of a pet washing station; and improvements to the car care center.

Also mentioned in the article is the purchase of Market Sation Apartments for $15 million by two LLCs managed by Eric Richelson of White Plains, NY. Richelson Management will manage the community.

Highlights from Just Released Real Data Report for Triad Apartment Market

Real Data just released their April, 2016 report from their March surveys for the Piedmont Triad and here are the highlights:

  • Average rents are up 2.1% since Mar, 2015
  • Vacancy rate is 7.5%, up from 6.7% in Sep, 2015
  • Demand has weakened in last 6 months, with only 355 units absorbed out of 929 completed over that time
  • Development pipeline includes 3,040 units under construction and another 3,220 proposed
  • Alamance is most active development sub-market with 630 units under construction
  • Average rents are: 1 BR-$673, 2BR-$760, 3BR-$973
  • Real Data projects vacancy to grow to 8% over next year, and rents to rise 2-3% as well.
  • Sub-market with highest overall rent: Guilford Central (Downtown Greensboro)
  • Sub-market with highest rent per SF: Forsyth Central (Downtown Winston-Salem)

For detailed reports, sub-market specific data, direct comps and more you can purchase a copy of the report from Real Data at www.aptindex.com.

New Owners Putting $500K Into Rehab of Cornwallis Manor

The new owners of 51-year old, 66-unit Cornwallis Manor are spending about $500,000 to upgrade the community they bought for $1.9 million last November. The Triad Business Journal has the story:

 Built in 1965, the complex includes one- and two-bedroom units ranging in size from 616 square feet to 927 square feet. There are 40 one-bedroom apartments and 26 two-bedroom apartments, Sloop said…

Common areas have been refurbished, and a fitness center and storage cages have been added for residents. In the spring, the owners will paint the building’s exterior and seal-coat the parking areas, Sloop said. About $500,000 will be invested in the overhaul, he said.

Units will be upgraded as they turnover, and will rent for $895 to $1,095 monthly, he said. Wrenn Zealy Property Management is the leasing agent and property manager.

Ashley Oaks Undergoing Renovations

Ashley Oaks, which was recently purchased by Living Well Homes, is undergoing renovations according to this article in the Triad Business Journal:

Living Well already has work underway on the landscaping, including cutting down overgrowth and trimming trees for enhanced views, but the firm also is planning a major overhaul to other areas of the complex, including its exterior, which is expected to get a new color scheme and logo.

Each of the 252 apartments will be renovated with updated cabinets, bathrooms, flooring and finishes, according to Living Well spokeswoman Andee Shuster. Plans are also in place to update the leasing office and clubhouse with new flooring, furniture, a flatscreen TV, coffee bar and modernized business center.

Living Well also expects to expand the pool deck and repurpose an unused tennis court, as well as update the fitness center, relocate and expand a kids’ zone and add smart card technology to the laundry rooms…

One- and two-bedroom apartments, at 730 square feet and 1,000 square feet, rent for $650 to $750, respectively.

Triad Apartment Market Still Rockin’ & Rollin’

If you’re looking for bad news in the Triad apartment market then you’re going to have to wait a while. Real Data’s latest report, out this week, shows that things are still very good for multifamily providers here:

The Triad’s apartment vacancy rate has improved during the last six months, dropping from 6.9 percent to 6.7 percent, according to the latest report from Charlotte research firm Real Data.

That’s a change from the April report, when the rate had ticked up to 6.9 percent from last October’s 6.5 percent, which was the lowest rate recorded in more than a decade, according to Real Data…

Real Data surveyed 63,210 units within Forsyth, Guilford and Alamance counties, up from 61,163 surveyed in April. Those units, on average, had a monthly rental rate of $760. That’s up from $741 in April and $728 last October.

The submarket with the highest average rent is downtown Greensboro, with rents rising 8% since April to $1,079.

If you’d like to purchase a full copy of the report you can do so at Real Data’s site.

Economic Factors Boosting Triad Apartment Market

A couple of stories in the local press explore the burgeoning local apartment market. Here’s an excerpt from one of those stories in the Winston-Salem Journal:

During the past five years, thousands of new apartments have opened in the Piedmont Triad, and the number of people moving into them is growing.

Changes in the way people live and improvements in the economy are driving a steady, slow growth, local apartment experts say, but soft spots could stall that progress in the next couple of years.

One thing has worked in favor of the industry so far: slow home sales.

Although the real estate market is slowly picking up, banks are still tight with credit and families are reluctant to commit to mortgages until they feel confident that jobs are here to stay.

Apartment developers are taking more chances this year and will continue if they see good signs, said Carrie Langley, the Piedmont Triad Apartment Association’s director of education and membership…

At the moment, things are looking good for the local apartment business.

Ultimately, job growth could be the single most important unknown that could help — or hurt — even more.

The Piedmont Triad Apartment Association’s Langley tempers her optimism with a little superstition.

“There’s been economic and employment growth and it seems to be continuing,” she said. “I’m going to knock on wood.”

The Greensboro News & Record had a similar article focused on the Greensboro market.

Solid Rent Growth for Triad Apartment Market in 1Q15

In this video from MPF Research, they look at the 1Q15 numbers for the Triad and find that year-over-year rent growth was – finally – on par with the rest of the country:

BSC Breaks Ground on Mixed Rental Community in Greensboro

BSC Holdings recently broke ground on the most recent iteration of it’s “mixed rental” development concept. From the Triad Business Journal’s story about the development:

Construction began recently on Greensboro developer Barry Siegal‘s new residential project, which includes 83 rental homes and a 120-unit apartment complex.

Lafayette Landing Apartments and Villas will sit on 40 acres on a mostly vacant swath of land at Guilford College and Ruffin roads…

Construction will take 18 months, Williams said, but the first phase — which will include 17 detached single-family homes, three apartment buildings, a clubhouse and garage building — is expected to be ready for occupancy by August.

The second and third phases, including the remaining 66 houses and 12 apartment buildings, will wrap up by late summer or early fall 2016, Williams said. Each apartment building will be two floors and will have eight units. The community will include amenities such as a pool and clubhouse.

The apartments will be one-, two- and three-bedroom units, and rental rates will start at $850 and $1,200, depending on size, Williams said. Rental rates for the homes will range from $1,100 to $1,750.

 

Raleigh Investment Company Bullish on Triad Apartment Market, Winston-Salem’s Downtown

The Triangle Business Journal has an interview with Chaucer Creek Capital’s Billy McClatchey after the firm made $43 million in apartment acquisitions in the last few months. Some highlights:

Chaucer Creek bought Gallery Lofts at a rate of $176,341 per unit. Why was the investment worth it? The Winston-Salem acquisition was very different. It’s a very definite bet on the downtown growth, and the investment that they’re making there. (Bell Brassfield) is a very suburban location, but what we consider to be a very, very good location.

Why make that bet on downtown Winston-Salem? It’s just so rare to be able to have the amount of land that they’ve been able to set aside to really start from scratch, and remodel the downtown, both for living, for retail, and for jobs, and to be able to thoughtfully approach that. Not many cities have been able to do that, or have that opportunity. I think it’s a brilliant strategy on the part of the city. There are countless cities across the Southeast who would not have had the forethought or energy to do what they’re doing downtown. The only town we’ve seen it work in as well is Durham in the past 10 to 15 years. Durham has done a great job, and I think Winston-Salem is next.

 

Triad Business Journal’s Rundown of 2013 Apartment Projects

The headline says it all – Year in Review: Triad apartment market burned bright in 2013 – and it would be impossible to dispute reporter Catherine Carlock’s assertion that 2013 was a very good year for the Triad apartment market. What you might find most interesting is the list of over 20 articles the TBJ ran in 2013 about the apartment projects being proposed and built in the Triad.

Let’s hope 2014 is even better.