At Least 15 Apartment Communities in Forsyth County Have Been Sold in 12 Months

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.

The Edge Flats Sells for Over $207,000 Per Unit

The Edge Flats, a luxury apartment development in Winston-Salem targeted towards medical students at the Wake Forest Baptist Medical Center, was sold for over $207,000 per unit. To put that number in perspective, CityView Apartments in Greensboro sold earlier this year for a little over $94,000 per unit.

Construction began in fall 2013 for 171 luxury flats among two buildings off West First Street. The $20 million development by Pennsylvania-based Vision Development Inc. is known as The Edge and was aimed at medical students.

S2S Meadow Edge LLC/The Edge Associates LLC and S2S Arbors Edge LLC purchased the two-building community and the 6.3 acres it sits on for $35.4 million. Those entities are affiliated with Shore to Shore Properties, a real estate investment firm based in Sausalito, Calif., that specializes in multifamily housing investment.

The seller, West Highland Acquisitions LP, is an entity managed by Vision Development owner Rick Shaffer.