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.
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.
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:
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.
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
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.
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.
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.”
Providence Management Co. purchased Ashebrook Pointe Apartments in Greensboro in September, 2016 and they are now close to completing 24 new units and a new fitness center.
Providence Management said completion on the new units at 2828 Vanstory St. — split between one-bedroom and two-bedroom apartments — is expected in the next three weeks.
The expected rental price range is $630-$795, according to Providence Management, which said the new units would be similar to the original 216 units, though slightly smaller with different floor plans. Existing units range from 800 square feet to more than 1,100 square feet.
The expected rental prices would be $80 to $100 more expensive than current units.
The total cost of the project is estimated at $1.1 million.
Downtown Greensboro Inc. (DGI) is retaining a consultant to study the depth of market demand for downtown Greensboro. From an article in the News & Record:
Downtown Greensboro Inc. has hired a consultant to begin doing an eight-week study to find out how many people want to live downtown but can’t find apartments.
The consultant will take that information and recommend to the economic development agency steps to encourage developers to beef up their efforts in the city’s core.
“To me, we’ve got fabulous restaurants, we’ve got some great merchants, but we really need 24/7 residents. Residents help make a sustainable downtown,” said Zack Matheny, the president of Downtown Greensboro Inc.
Matheny said roughly 2,600 people live downtown, but he believes two, three, even four times that many would move if they could find a place…
Matheny said the consultant will interview real estate agents, city planning officials, economic developers and others to compile a thorough report.
For years Koury Corp. has been in a holding pattern with its proposed apartment project near its Grandover resort, but now it’s begun developing the site. From the Triad Business Journal:
Koury Corp.’s long-awaited push to develop the west side of its Grandover property has begun with the start of construction of Millis and Main, a 192-unit, luxury apartment community, at the intersection of Millis Road and Main Street, near Millis Road Elementary School.
Steve Showfety, president of the Greensboro-based development company, said Koury had endured a “holding period” of about a decade as road construction and territorial jurisdiction questions between Greensboro and Jamestown bogged down its development plans. The site, perched between Greensboro and Jamestown, is at the confluence of several roads that straddle municipal jurisdictions and that have been renamed, realigned or reconfigured in recent years: West Gate City Boulevard, Guilford College Road, East Main Street and Jamestown Parkway.
Showfety said construction began near the end of October. Showfety said some units and a 6,000-square-foot clubhouse should be completed by the spring, when Koury expects pre-leasing to begin. Koury is handling construction, with Greensboro-based Hawthorne Residential Partners handing property management.