Carolina Woods Latest in a String of Winston-Salem Apartment Transactions

The Winston-Salem Journal ran a fairly in-depth article on the sale of Carolina Woods and the plans the new owner has for the community. Here’s a taste:

The Carolina Woods apartment community near Bethabara Park will go through a major renovation initiative as part of its new owner’s push into the North Carolina and Southeast metro markets…

Weiss owns and manages more than 600 multifamily units, more than 20,000 square feet of commercial space, and an 89-room boutique hotel, banquet hall and restaurant.

However, until it closed on the Carolina Woods community, all of its investments were in New Jersey and New York.”

The article also had an interesting bit of info about all of the apartment transactions in Winston-Salem over the last six months:

“The others include: 213-unit Loxley Chase in Winston-Salem selling for $16.25 million; 234-unit Morgan Place in Clemmons for $14.3 million; 204-unit Twin City Townhomes in Winston-Salem for $10.15 million; 144-unit Salem Crest in Winston-Salem for $7.5 million; 96-unit Woodlawn in Winston-Salem for $3.5 million; and the 49-unit apartment complex at 1976 Maryland Ave. in Winston-Salem for $1.45 million. “

Highlights from Just Released Real Data Report for Triad Apartment Market

Real Data just released their April, 2016 report from their March surveys for the Piedmont Triad and here are the highlights:

  • Average rents are up 2.1% since Mar, 2015
  • Vacancy rate is 7.5%, up from 6.7% in Sep, 2015
  • Demand has weakened in last 6 months, with only 355 units absorbed out of 929 completed over that time
  • Development pipeline includes 3,040 units under construction and another 3,220 proposed
  • Alamance is most active development sub-market with 630 units under construction
  • Average rents are: 1 BR-$673, 2BR-$760, 3BR-$973
  • Real Data projects vacancy to grow to 8% over next year, and rents to rise 2-3% as well.
  • Sub-market with highest overall rent: Guilford Central (Downtown Greensboro)
  • Sub-market with highest rent per SF: Forsyth Central (Downtown Winston-Salem)

For detailed reports, sub-market specific data, direct comps and more you can purchase a copy of the report from Real Data at www.aptindex.com.

Triad Apartment Market Still Rockin’ & Rollin’

If you’re looking for bad news in the Triad apartment market then you’re going to have to wait a while. Real Data’s latest report, out this week, shows that things are still very good for multifamily providers here:

The Triad’s apartment vacancy rate has improved during the last six months, dropping from 6.9 percent to 6.7 percent, according to the latest report from Charlotte research firm Real Data.

That’s a change from the April report, when the rate had ticked up to 6.9 percent from last October’s 6.5 percent, which was the lowest rate recorded in more than a decade, according to Real Data…

Real Data surveyed 63,210 units within Forsyth, Guilford and Alamance counties, up from 61,163 surveyed in April. Those units, on average, had a monthly rental rate of $760. That’s up from $741 in April and $728 last October.

The submarket with the highest average rent is downtown Greensboro, with rents rising 8% since April to $1,079.

If you’d like to purchase a full copy of the report you can do so at Real Data’s site.

Economic Factors Boosting Triad Apartment Market

A couple of stories in the local press explore the burgeoning local apartment market. Here’s an excerpt from one of those stories in the Winston-Salem Journal:

During the past five years, thousands of new apartments have opened in the Piedmont Triad, and the number of people moving into them is growing.

Changes in the way people live and improvements in the economy are driving a steady, slow growth, local apartment experts say, but soft spots could stall that progress in the next couple of years.

One thing has worked in favor of the industry so far: slow home sales.

Although the real estate market is slowly picking up, banks are still tight with credit and families are reluctant to commit to mortgages until they feel confident that jobs are here to stay.

Apartment developers are taking more chances this year and will continue if they see good signs, said Carrie Langley, the Piedmont Triad Apartment Association’s director of education and membership…

At the moment, things are looking good for the local apartment business.

Ultimately, job growth could be the single most important unknown that could help — or hurt — even more.

The Piedmont Triad Apartment Association’s Langley tempers her optimism with a little superstition.

“There’s been economic and employment growth and it seems to be continuing,” she said. “I’m going to knock on wood.”

The Greensboro News & Record had a similar article focused on the Greensboro market.

Solid Rent Growth for Triad Apartment Market in 1Q15

In this video from MPF Research, they look at the 1Q15 numbers for the Triad and find that year-over-year rent growth was – finally – on par with the rest of the country:

Raleigh Investment Company Bullish on Triad Apartment Market, Winston-Salem’s Downtown

The Triangle Business Journal has an interview with Chaucer Creek Capital’s Billy McClatchey after the firm made $43 million in apartment acquisitions in the last few months. Some highlights:

Chaucer Creek bought Gallery Lofts at a rate of $176,341 per unit. Why was the investment worth it? The Winston-Salem acquisition was very different. It’s a very definite bet on the downtown growth, and the investment that they’re making there. (Bell Brassfield) is a very suburban location, but what we consider to be a very, very good location.

Why make that bet on downtown Winston-Salem? It’s just so rare to be able to have the amount of land that they’ve been able to set aside to really start from scratch, and remodel the downtown, both for living, for retail, and for jobs, and to be able to thoughtfully approach that. Not many cities have been able to do that, or have that opportunity. I think it’s a brilliant strategy on the part of the city. There are countless cities across the Southeast who would not have had the forethought or energy to do what they’re doing downtown. The only town we’ve seen it work in as well is Durham in the past 10 to 15 years. Durham has done a great job, and I think Winston-Salem is next.

 

Reynolds Building Will House 130-ish Apartments, Open in Late ’15

In an interview with the Triad Business Journal the executive VP of Kimpton Hotels outlined some of the details for the redevelopment of the Reynolds Building in Winston-Salem:

What’s the estimate for how you’ll split up the building? The hotel portion will be approximately 175 rooms. I think the apartments are roughly 130 units. I’m not sure exactly how that’s split but it’s probably somewhere in the vicinity of 50/50. It kind of helps make the numbers work.

Will both the hotel and apartments come online at the same time? Yes, somewhere in the latter part of next year (2015). End of summer or early fall.

Triad Business Journal’s Rundown of 2013 Apartment Projects

The headline says it all – Year in Review: Triad apartment market burned bright in 2013 – and it would be impossible to dispute reporter Catherine Carlock’s assertion that 2013 was a very good year for the Triad apartment market. What you might find most interesting is the list of over 20 articles the TBJ ran in 2013 about the apartment projects being proposed and built in the Triad.

Let’s hope 2014 is even better.

 

Winston-Salem 6th Worst Market for Effective Rent Growth in September

Fast on the heels of the very positive vacancy rate news for the Piedmont Triad apartment market comes this list from Axiometrics showing the top 10 and bottom 10 apartment markets for effective rent growth in September, 2013:

Bottom 10 Effective Rent Growth Markets

1. Little Rock, Ark., -2.28 percent

2. Washington, D.C., -1.5 percent

3. Albuquerque, N.M., -1.28 percent

4. Chattanooga, Tenn., -1.01 percent

5. Augusta, Ga., -0.58 percent

6. Winston/Salem, N.C., -0.54 percent

7. Philadelphia, -0.23 percent

8. Bethesda, Md., 0.17 percent

9. Montgomery, Ala., 0.07 percent

10. Birmingham, Ala., 0.18 percent

 

Piedmont Triad Apartment Vacancies at Ten Year Low

Real Data just released it’s latest Greensboro/Winston-Salem report and the numbers show that the market continues to strengthen. Here are the basics:

Vacancy rate: 7.3%
Average rent overall: $705/month
Average rent in units <5 years old: $950/month
Average rent in units >30 years old: $600/month

The report also highlights the relatively light activity in new development considering the demand. From the report:

Despite strong demand, new development has been modest, with construction starting on less than 500 units over the past six months. Currently, there are more than 1,100 units under construction throughout the region and another 3,500 units proposed. Many developers plan to start construction in the next year, but financing remains tight.