The Winston-Salem Journal ran a story in its June 8 edition highlighting the sale of 15 apartment communities in Forsyth County, and just today (June 20) another two were announced. The June 8 article does a nice job summarizing the many factors that contribute to the spike in transactions – demographics, lifestyle, costs – but one facet of the transactions that they pick up on is something that has been observed over the last year by apartment industry observers: a significant increase in out-of-town buyers of apartments. From the June 8 article:
Yet, there have been six apartment-complex purchases in Forsyth over the past three months, all by out-of-region and out-of-state buyers.
“Investors are trying to find what few pockets of value there are left in the apartment market,” said Mark Vitner, a senior economist for Wells Fargo Securities.
“Prices have been bid up so much in larger markets, such as Charlotte, Raleigh and Nashville, that investors are increasingly looking to markets that have been overlooked and show great potential for growth.
“Winston-Salem and Greensboro are at the top of the list of overlooked markets.”
If you’re wondering what the price points were for the transactions, we did a little “back of the napkin” calculating using the information from the article and some data we have in our membership files and found the following;
Those 15 communities have a total of 2,349 units and the combined total of sales prices was $136,640,000, or $58,169 per unit.