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. 

Charlotte Builder Looking at North High Point Multi-Housing Project

North High Point is experiencing a significant amount of growth, and now it looks like the area might be getting a 600-unit housing development, including apartments. From an item in the Triad Business Journal:

The report says that Bunker Land Group LLC filed zoning applications with the city to build the units on about 80 acres near N.C. 66 and North Main Street, just south of Interstate 74.

Bunker wants to build 350 multifamily units, filling in the rest with single-family homes, twin homes and townhomes.

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

Carroll Purchases NorthPoint Apartments for $26.5 Million

The Carroll Cos. has once again expanded its local apartment portfolio with the purchase of Signature Property Group’s NorthPoint Apartments in north High Point:

Developer Roy Carroll announced today that his company has purchased NorthPoint Apartments, located at 4375 Regency Drive in north High Point, for nearly $26.5 million, or $91,965 per unit.

The 288-unit upscale community was completed this summer and sits on 16.74 acres near I-40 and the Piedmont Triad International Airport along N.C. 68. Guilford County tax records indicate that it has a total assessed value of nearly $16.9 million.

Real Data Report Shows Triad Occupancy Over 93%

Today Real Data released the results of its latest market report for the Piedmont Triad and the numbers remain strong:

  • Vacancy – 6.9% (up slightly from 6.5% in Sep, ’14)
  • Average rent – $741 (up from $728 in Sep, ’14)
  • Average rent per SF – $0.788 (up from $0.744 in Sep, ’14)
  • Same-store rent change $ – $8.87 (it was $10.60 in Sep, ’14)
  • Same-store rent change % – 1.2% (it was 1.5% in Sep, ’14)

The sub-market that saw the greatest growth was the Central Forsyth market which added 322 units which helps explain the 12.5% vacancy rate in the area. Central Forsyth also has 397 units under construction, which is impressive but Central Guilford has 595 under construction. Long story short, the downtown Winston-Salem and Greensboro markets are exploding in terms of units. Rent per SF in those markets are by far the highest with Greensboro coming in at $1.018/SF and Winston-Salem coming in at $0.979/SF – the next closest is the NW Guilford sub-market at $0.809/SF.

Other highlights of the report include the fact that Alamance/Burlington has 401 units under construction and that the sub-markets with the lowest vacancy rates are Northern Guilford (4.4%) and Eastern Forsyth (4.5%).

You can buy a full copy of the report, which includes extensive demographic data and property-specific reports, at www.aptindex.com

Brentwood Crossing in High Point Sold for $5.5 Million

The Triad Business Journal is reporting that the Brentwood Crossing apartment community in High Point has been sold to a New York-based company for $5.5 million:

A New York-based real estate development company has purchased a High Point apartment complex for $5.5 million.

Brentwood Residences LP, an entity controlled by Omni New York LLC, bought the 138-unit complex at 306 Brentwood St. from Brentwood Crossing LLC last week.

The property, which has 130,256 square feet of living space in 18 buildings, sits on 10.781 acres and is valued at $2.4 million, according to tax records.

PTAA is 35 Years Young!

Last night, March 31, 2015, PTAA marked the 35th anniversary of its founding on the same date in 1980. We did it in fine fashion by holding our largest Diamond Awards banquet ever, with over 400 of our industry’s best and brightest in attendance to recognize the exceptional performance of some of their peers in 2014. If you weren’t able to attend then you missed the 35th Anniversary video that our Public Relations committee produced to commemorate the occasion, but thanks the wonders of YouTube you can see it now. Enjoy!

Coy Willard Sells Swathmore Court Apartments

An investment firm managed by Greensboro attorney Marc Isaacson has purchased Swathmore Court Apartments (High Point) from long-time High Point apartment developer/manager Coy Willard’s company. From the Triad Business Journal:

A New York-based real estate investor bought the 104-unit Swathmore Court Apartments in High Point for $5.9 million, according to public record…

The apartments and 6.5-acre property was sold by High Point Holdings III LLC, an entity managed by High Point businessmanCoy Williard Jr. of Williard-Stewart Inc.,according to the deed.

The complex is at least 10 years old and is 95 percent occupied, said Swathmore Courts Apartments representative Susan Cobb.

Swathmore Investors LLC will take on the $4.6 million balance due on the mortgage to Prudential Huntoon Paige Associates LLC, the deed shows. The $5.9 million sale closed on May 1.

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.

The Crossing at Chester Ridge Apartments Sell for $6.1 Million

From the Triad Business Journal:

The Crossing at Chester Ridge apartments in High Point have been sold for $6.1 million, according to public records.

The apartments, located on 13 acres at 2122 Cross Creek Court, were sold by North Pointe Partners III LLC. Longtime High Point businessmen Maurice Hull andCoy Williard are listed as managers of that entity. The buyer is identified as Crossing at Chester Ridge LLC, the registered agent of which is listed as Patrick Johnson, a real estate attorney with Greensboro’s Isaacson Isaacson Sheridan Fountain & Leftwich.