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. “
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.
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.
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.
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.
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.