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. 

Construction of Apartments Near Friendly Center to Begin Soon

Hawthorne Residential Partners is set to begin construction of an 188-unit apartment community near Friendly Center in Greensboro:

Greensboro developer Hawthorne Residential Partners plans to build apartments on a long-vacant area beside The Shops at Friendly on Hobbs Road…

The nearby intersection of Hobbs and Friendly Avenue has also been one of the most high-profile sites in the city after Atlanta developers Halpern Enterprises won rezoning for a 6.4-acre mixed-use development despite forceful community opposition.

How Hawthorne Grew

The latest issue of Triad Business Journal has an interview with Hawthorne Residential Partners’ chief investment officer, and PTAA board member, Phil Payonk about how Hawthorne has grown to manage 17,555 units in 76 properties since its founding in 2009. From the interview:

What is the appeal of apartments?

The short-term and long-term fundamentals for apartments look good — there’s some construction coming online, and demographic trends in the U.S. show a tendency to rent for longer as you come out of school. You even see an older generation beginning to downsize and look to renting rather than owning a home…

What is Hawthorne’s core business?

Finding stabilized apartment properties that aren’t performing to their fullest potential. We handle the overall development of a site and the property, but we utilize a general contractor to handle the construction. We’ve partnered with several different builders; we like to utilize the small, local guys to kind of help keep costs down. Now, of our 17,555 units, Hawthorne and its partners have an ownership stake in about 45 percent of those. The balance is owned by a third party but managed by Hawthorne…

The Triad has seen a lot of apartments come online very quickly. Do you think it’s approaching over-built status?

We’re seeing in North Carolina markets in particular that a lot of the supply is being absorbed. As long as we see that at a measured pace, we’re going to hopefully not see too many problems. Even though there’s been a lot of product coming online, it’s been pretty hard to get a loan. The banks have the appetite, but there’s just a lot that has to go into it, from documentation and planning and identifying the site and getting everything together to getting a commitment and a building.