Partners Buy Second Greensboro Apartment Community

The two companies that partnered to buy Westborough Apartments last year have made a second apartment purchase in Greensboro. From an article in the Triad Business Journal:

Blackfin Real Estate Investors LLC, based in Arlington, Virginia, and GMF Capital LLC of New York City, bought The Hamptons at Country Park in Greensboro for $18.7 million from Johnston Properties of Greensboro. The deal was recorded Aug. 13 by Guilford County…

The Hamptons, l4515 Lawndale Dr., is a 264-unit multifamily property on 22.8 acres adjacent to Country Park. The property, last sold in December 1999 for $9.13 million, is listed as Class C and being built in 1979 in Guilford County records.

Last year, Blackfin and GMF purchased Westborough Apartments, a 502-unit, Class B garden-style community at the corner of West Friendly Avenue and Guilford College Road in Greensboro for $28.1 million, and renamed it The Avenue

Something interesting to note here: a Class C property in Greensboro sold for $70,833/door in 2019 and a Class B property in Greensboro sold to the same partners the previous year for $55,976/door.

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.

RealPage Reports Rent Increases for Triad

RealPage released its rent report for the first quarter of 2019 which showed that the Triad had the fourth highest increase in the country. From an article in the Triad Business Journal:

Rent prices in the Greensboro/Winston-Salem metro area saw a 5.2 percent increase in the first quarter, with an average rent price of $830.

Greensboro/Winston-Salem ranked No. 4 in rent price increase among large metros, according to a first quarter apartment market report by RealPage Inc. (NASDAQ: RP). Phoenix, Arizona (up 8 percent), nabbed the top spot, followed by Las Vegas, Nevada (up 7.9 percent), and Atlanta, Georgia (up 5.3 percent). Charlotte ranked No. 11, with a 4 percent increase in rent prices.

Greensboro/Winston-Salem outpaced the national average, with U.S. apartment rents increasing by about 3.2 percent on an annual basis. 

Texas Company Buys Greensboro Apartment Community

Continuing a recent trend of companies based outside of the Piedmont Triad purchasing local apartment communities, a Texas company has purchased a 336-unit Greensboro property. From the Triad Business Journal:

A Texas real estate company has purchased a large Triad apartment complex for $16.3 million, with plans to make more than $3 million in renovations over the next two years.

Artesia Real Estate of Austin, Texas, bought Mallard Lake Apartments in Greensboro. The seller was an LLC managed by Robert Canham, president of Sunchase American of Greensboro, which also manages the community.

Artesia principal Colin Brothers told Triad Business Journal that 3 Points Property of Raleigh will take over management of the 336-unit development at 2905 Cottage Place, just northeast of Greensboro Science Center off Lawndale Drive, in mid-December. The apartments are only a few minutes from various retailers on the Battleground Avenue corridor…

Brothers told TBJ that renovations would begin soon, starting with exterior improvements. Interiors will be upgraded units become available. Brothers said plans are still under development. He said various subcontractors would be hired. The community has two pools and a clubhouse.

Five-Story Office Building in Greensboro to be Converted to Apartments

The Triad Business Journal is reporting that former PTAA board member, Seth Coker, and his partner Nathan Isner, will be redeveloping a downtown Greensboro office building into 24 efficiency apartments. From the article:

Developers Seth Coker and Nathan Isner will make $2 million in renovations to a five-story, downtown Greensboro building, utilizing the first floor as its office, and transforming the remaining floors into 24 “efficiency apartments.”

Coker said demolition of much of the interior of the 22,000 square foot building at 127 N. Greene St. — now occupied by Investors Title Insurance Co. — will begin on Oct. 30, and should be completed by January. Coker said the target for completion of the project is October 2018…

One of the “cool” features planned for the apartments, which Coker said would be “500 to 600” square-foot units with one bedroom, is heated floor title in the bathrooms. He said existing elevator, steps and standing support columns would be preserved.

Coker said he expected the apartments to rent in the $700s per month, and attract tenants from nearby Elon University School of Law and Lincoln Financial Group.

PTAA’s Leaders Meet With Greensboro Candidates Over Coffee

On Thursday, September 28, PTAA hosted a “Coffee with the Candidates” at Greenway at Fisher Park Apartments in Greensboro. This was an opportunity for leaders from PTAA to get to know the folks running for Greensboro’s City Council and to share with them the economic impact that PTAA’s members have in the city.

Special thanks to the team at Greenway for hosting us, and to all the volunteer leaders who made it out first thing in the morning to meet with the candidates.

Here is a link to a copy of the data sheet we shared about the impact our members have in the city:

Economic Impact of Apartment Industry in Greensboro

Apartments Proposed for Existing Condo Development

A local developer is seeking a rezoning in Greensboro that would allow him to add apartments to an existing condo development. From the Triad Business Journal:

Graham developer and builder Dennis Euliss wants to add 72 apartments to a 24-unit condominium building along Old Battleground Road in north Greensboro, to form one community with shared amenities.

Euliss’ request on the agenda for Monday’s Greensboro Zoning Commission would change zoning at Landon Creek condominiums from Conditional District Residential Multifamily-18 and Single Family Residential-3 to Planned Unit Development. The change would allow the developer to build 72 apartments — in addition to condos — on the undeveloped 7.83-acre property at 4493 Old Battleground…

The original three-story, 24-condo building was built in 2008.

Isaacson said Euliss believes apartments would be the best option. He said shared amenities would include an office, swimming pool and fitness center, and would require an agreement with condo owners.

“It’s more efficient to develop the property with one owner than with 72 owners,” said Isaacson.

Report Shows Triad Rents Up, Vacancies Down in Past Four Quarters

According to a report from Marcus & Millichap, rents in the Triad have risen over the past four quarters thanks in part to investors looking for fertile territory after the Charlotte and Raleigh markets became a bit saturated. From the Triad Business Journal:

Rent for apartments increased 7.7 percent in the improving Triad market over the past four quarters, according to a Third Quarter 2017 report released by Marcus & Millichap (NYSE: MMI), a California-based, commercial real estate firm that provides research and advisory services in the U.S. and Canada.

The effective rent — the remaining cash after paying operating expenses — for landlords in the market was up 8.3 percent to $811. The vacancy rate dropped from nearly 6 percent to 4.5 percent over the past year.

By comparison, effective rents in Charlotte averaged $1,090 and in Raleigh they averaged $1,109

Apartment List Data: Winston-Salem Had Fastest Nationwide Median Rent Growth Last Month

According to data released by Apartment List, median rents (July,2017) in Winston-Salem and Greensboro were among the lowest in the 100 largest US metro areas, but they are growing. Winston-Salem came in at the 94th slot, with median 1BR rents of $640 and 2BR rents of $780. Greensboro came in at the 85th slot, with median 1BR rents of $710 and 2BR rents of $840.

Source: Apartment List

While the rents are low in the Triad, Winston-Salem’s rent growth is actually among the strongest in the country. Median rents there grew 1.8% from June to July (1st in the country), and 4.6% from July, 2016 to July, 2017 (26th in the country). Greensboro’s rent grew 0.5% from June to July (50th in the country), and 3.3% from

Greensboro’s rent growth wasn’t as spectacular as its neighbor to the west, but 0.5% from June to July (50th in the country), and 3.3% from July, 2016 to July, 2017 (43rd in the country) still beats a stick in the eye.

You can read the full report here.

 

Carroll at Bellemeade (Baby) Booming

The Triad Business Journal has a story about Greensboro’s newest downtown apartment community, Carroll at Bellemeade, and how it is attracting more Baby Boomers than you’d expect. From the article:

Carroll at Bellemeade tenants all won’t be millennials, a.k.a. young professionals. In fact, millennials might be in the minority, according to Carroll, who told Triad Business Journal that baby boomers have shown more interest as the project approaches an anticipated early 2018 opening.

The apartments at Carroll at Bellemeade will range from 679 square feet to 1,403 square feet with monthly rent ranging from about $1,000 to about $1,800.

“Seventy percent of the people who have inquired about Carroll at Bellemeade are older than me,” the 54-year-old Carroll told Triad Business Journal. “They like the idea that it’s going to be gated parking and convenient to things downtown. It’s a rental. When they get to the end of the lease term, they can do whatever.”

That supports a trend that’s been developing in the apartment world over the past couple of years: empty nesters opting for the convenience (or necessity) of apartment rental living, and living shoulder to shoulder with folks their kids’ age or younger.

Mr. Carroll ends with this observation: “We love the empty-nesters,” he said. “They’ll stay there as long as they enjoy it and as long as we treat them right — they won’t leave for a $10-a-month rent increase.”