Apartment REP Multifamily Blog

Raleigh-Cary is #1 Real Estate Market to Watch in 2012

Mike@ApartmentREP.com — Thu, 02 Feb 2012 17:06:00 GMT

Written by Andrea V. Brambila | INMAN NEWS

While national home prices and sales may not recover to their historical levels until 2013 at the earliest, some local housing markets always outperform others in any given year.

In this second annual report (see last year's report: Top 10 Markets to Watch in 2011), Inman News examined housing, economic and demographic data for metropolitan areas nationwide to identify 10 housing markets to watch in 2012.

These markets are showing signs of strength in several key metrics, including above-average price appreciation, a flourishing job market, a high rate of sales in proportion to population, a high level of home affordability, low foreclosure activity, a below-average share of distressed sales, a low vacancy rate, and other characteristics indicating a healthy housing market.

While real estate markets in the Midwest and Northeast made up the majority of markets on last year's list of 10 markets to watch, this year the Midwest and the South dominated. Two Northeastern markets, both in New York state, also made the list; and no markets in Western states are on the list.

The 10 markets are, in order: Raleigh-Cary, N.C.; Wichita, Kan.; Rochester, N.Y.; Des Moines-West Des Moines, Iowa; Chattanooga, Tenn.-Ga.; Peoria, Ill.; Amarillo, Texas; Binghamton, N.Y.; Waterloo-Cedar Falls, Iowa; and Bloomington-Normal, Ill. The Des Moines and Bloomington-Normal metros are on the list for the second year in a row.

Nationwide, unemployment is high, though trending down; the median price of an existing home fell over 4 percent in 2011; and existing-home sales rose a modest 1.7 percent last year, according to the National Association of Realtors.

Stan Humphries, chief economist for Zillow, said 2012 will be a "transitional year" in the housing recovery, with an improvement in home sales and prices anticipated to fall to a long-awaited "bottom."

Zillow identified some markets that are "undervalued" on a historical basis in a chart provided for this report, and Inman News reached out to a range of other real estate research and information companies for their insight on those real estate markets expected to outperform others in the year ahead. Those companies' findings were not considered in the review and selection process of the top 10 markets featured in this report.

"While home values are expected to fall further (another 2 to 4 percent) in 2012 with a definitive bottom probably a year away, encouraging precursors to a true stabilization of home values are falling into place as the new year begins," Humphries said in a forecast Tuesday.

"Home sales will show a more consistent upward trend this year, slowly reducing the amount of vacant housing inventory. This increased demand will eventually start to put a floor under home values later this year."

U.S. foreclosure activity hit its lowest level since 2007 last year, though experts largely expect it to ramp up this year, putting downward pressure on home prices.

"There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010," said Brandon Moore, CEO of RealtyTrac, in the company's year-end foreclosure report. RealtyTrac also provided a chart for this report.

To compile the list of 10 markets to watch this year, Inman News looked for markets with above-average median sales price growth, a low unemployment rate, a high rate of sales per population, high affordability, low and falling foreclosure activity, a low share of distressed sales, above-average projected job growth, median household income growth, low and falling vacancy rates, growth in the number of building permits issued, above-average population growth, high projected population growth, and a rise in in-migration from other states.

While no markets on the list fulfilled all of these ideal economic characteristics, they did meet most of them.

Contrary to last year's list, in which most of the resulting markets had populations under 250,000, half of the metros on this year's list had populations above 500,000. This may be partially a result of only considering metros with a population of 150,000 or above, while last year's list did not limit the list by population size.

Among the findings in this report:

Three of the 10 markets on this list are state capitals, and both Illinois markets benefit from proximity to that state's capital, Springfield.
Four of the markets: Bloomington-Normal and Peoria in Illinois as well as Des Moines-West Des Moines and Waterloo-Cedar Falls in Iowa, are no more than 300 or so miles from each other.
Nine of 10 markets had median sales prices below the national median in the third quarter of 2011.
Where affordability rankings were available, the markets on the list had no less than 73.6 percent of homes affordable to those households earning the area's median income in the third quarter.
All had unemployment, foreclosure, and vacancy rates lower than the national average. None of the markets had unemployment rates higher than 7.9 percent. All had lower shares of distressed sales than the national average.
Only two of the markets had populations above 1 million, and three had populations above 500,000. The remainder had populations below that figure, but above a minimum 150,000.
As in last year's report, jobs in the public sector as well as the health care industry were major employers in most markets. This year, however, nine out of 10 markets also counted manufacturing companies among primary employers. Technology companies, energy providers, and universities also boosted many markets.

The 10 markets are ranked according to population, sales volume, and median sales price appreciation. Population was weighted most heavily in the rankings, followed by sales volume in proportion to population, and rate of price appreciation.

To read more and see the report in its entirety, please visit the following weblink:

http://www.inman.com/reports/markets-watch2012

Durham Parcel Sold for $35.25M

Mike@ApartmentREP.com — Tue, 17 Jan 2012 19:25:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

Federal Capital Partners announced Friday its purchase of the first phase of the West Village development in downtown Durham.

The purchase includes 241 apartments and 10,000 square feet of retail and parking.

Washington-based FCP purchased the property for $35.25 million, which is considerably more than The News & Observer reported Tuesday in an article. The deed filed with Durham County shows a purchase price of $18.125 million, but that number is incorrect, an FCP spokeswoman said Friday.

FCP's partner in the deal is Greensboro-based Bell Partners.

West Village was developed by Duke basketball stars Christian Laettner and Brian Davis. Laettner's and Davis' company, Blue Devil Ventures, led a $170 million revitalization effort in Durham that converted an abandoned tobacco factory into a mix of restaurants, offices and apartments.

The two have since run into financial trouble, and owe millions to creditors.

West Village has continued to thrive despite Laettner's and Davis' financial difficulties. Nearly all of the 453 apartments are occupied, and much of the 140,000 square feet of commercial space is leased.

Northwood Ravin buys Aboretum Apartments in Cary for $32 million

Mike@ApartmentREP.com — Tue, 03 Jan 2012 21:21:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

Northwood Ravin, the joint venture between Crosland's former multifamily development arm and Northwood Investors, has bought The Apartments at the Arboretum in Cary for $32 million, according to Wake County property records.

Crosland developed the 205-unit complex, which opened in 2008. Last summer, Crosland, the Charlotte developer that has been among the most active in the Triangle during the past decade, announced that it would divest its retail, multifamily and residential development arms to focus exclusively on managing existing assets.

Crosland's multifamily team became Ravin Partners, led by David Ravin. Ravin Partners and Northwood announced their joint venture in October. The company will both develop and manage apartment projects.

Northwood Investors was founded in 2006 by John Kukral, the former head of Blackstone Real Estate Advisors. Northwood Ravin is developing the 134-unit St. Mary's Square project in Raleigh's Glenwood South area and has also taken over three other Crosland projects in the Triangle: Trinity Commons at Erwin in Durham and Chapel Hill North and Chapel Watch Village.

Northwood Ravin expects to provide property management services for a portfolio that includes 16 properties with a total of 3,100 units.

The Arboretum deal capped a busy year in apartment sales, with nearly $900 million worth of transactions being completed.

Apartments have been far and away the best performing commercial real estate sector in recent years. The turmoil in the residential housing market has increased demand for apartments as more and more people lose their homes to foreclosure or find that they can no longer qualify for a mortgage.

Triangle Market Apartment Deals Close Out 2011

Mike@ApartmentREP.com — Tue, 20 Dec 2011 21:33:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

The year in Triangle commercial real estate is ending much the way it started - with a bunch of apartment deals.

The Preiss Company, the Raleigh-based firm that specializes in student housing, paid $26.5 million for The College Inn, a 121-unit complex on the south side of Western Boulevard near N.C. State University, according to Wake County property records. The seller was the N.C. State Student Aid Association, also known as the Wolfpack Club.

The other deal involved the Mariner's Crossing apartments in North Raleigh, which sold for $29.95 million to Sillman Enterprises, a real estate firm based in Birmingham, Mich., according to property records.

The 306-unit complex was built in 1995.It's located at the intersection of Creedmoor and Millbrook roads.The seller was LaSalle Investment Management, which paid $23.2 million for the property in 1997.

Mariner's Crossing was 97 percent occupied in October, according to data from the Triangle Apartment Association and Karnes Research.

The heavy volume of apartment deals this year is being driven by strong fundamentals in the apartment sector, which has benefited from the turmoil in the single-family housing sector and a general lack of new apartment construction during the economic downturn.

That will change soon, as developers have begun construction on a number of new projects and more are scheduled to break ground next year.

The apartment vacancy rate in the Triangle was 6 percent in September, down from 6.7 percent a year ago, according to data from the TAA and Karnes.

Lender-approved Short Sale of 32-unit Multifamily in Fayetteville NC sells for $750K

Mike@ApartmentREP.com — Thu, 15 Dec 2011 16:28:00 GMT

Apartment REP, a multifamily commercial real estate brokerage and advisory firm headquartered in Raleigh, just completed the sale of the HAYMOUNT COURT in Fayetteville, North Carolina.

Here are the details of the sale:

• PROPERTY NAME: Haymount Court
• TOTAL UNITS: 32
• YEAR BUILT: 1947
• LOCATION: Fayetteville, NC
• SALE DATE: November 17, 2011
• SALE PRICE: $750,000
• SALE PRICE PER UNIT: $23,437
• SALE TYPE: Lender-approved Short Sale
• SELLER REPRESENTED BY: Calhoon Real Estate
• BUYER REPRESENTED BY: Apartment REP

Feel free to contact Apartment REP directly at 919.866.9984 to learn more.

TEAM & CONTACT INFORMATION

Jim Scofield / Wayne Braren / Mike Siciliano

919.866.9984

www.ApartmentREP.com

Oberlin Court in Raleigh Sold for $72.25M

Mike@ApartmentREP.com — Tue, 22 Nov 2011 17:01:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

Oberlin Court, the apartment and retail center at Wade Avenue and Oberlin Road in west Raleigh, has been sold for $72.25 million, according to Wake County property records.

It's the latest in a string of major apartment acquisitions by institutional investors in the Triangle.

The buyer was Atlanta-based Prudential Real Estate Investors. The seller was Northwestern Mutual Life Insurance Co.

Just last month Prudential bought the Woodland Terrace senior living complex in Cary for $53 million.

Developed by Crosland, Oberlin Court opened in 2008. It includes 370 apartments and 30,000 square feet of retail shops.

It was 95 percent occupied in September, according todata from the Triangle Apartment Association and Karnes Research.

The flurry of recent apartment deals is being driven by strong fundamentals in the apartment sector, which has benefited from the turmoil in the single-family housing sector and a general lack of new construction during the economic downturn.

The apartment vacancy rate in the Triangle was 6 percent in September, down from 6.7 percent a year ago, according to data from the TAA and Karnes.

PRICE REDUCED: Now 81% Loan-to-Value with 6.05% Interest on Assumable Loan

Mike@ApartmentREP.com — Mon, 14 Nov 2011 18:34:00 GMT

CREEKSIDE APARTMENTS
60-Unit Multifamily Property in Fayetteville, North Carolina
REDUCED PRICE: $3,250,000

HIGHLIGHTS
• PRICE JUST REDUCED!
• Assumable Loan in place at 81% loan-to-value with a 6.05% interest rate
• Built in two phases for a total of 60 units, with newer phase completed in 2005
• Located within the booming Fayetteville and Fort Bragg MSA
• About two miles from Wal-Mart Supercenter and I-95
• Option 1-acre parcel available to add 15 additional units

LEARN MORE

Visit http://www.apartmentrep.com/PropertiesForSale.aspx

Apartment REP
5640 Six Forks Road - Suite 101
Raleigh, NC 27609
919.866.9984
ApartmentREP.com

MAJOR PRICE REDUCTION on 216-unit "Class A" Multifamily in Fayetteville NC

Mike@ApartmentREP.com — Tue, 25 Oct 2011 15:42:00 GMT

ADAMS LAKE APARTMENTS
216-Unit “Class A” Multifamily Property in Fayetteville, North Carolina
REDUCED PRICE: $18,550,000

HIGHLIGHTS
• PRICE JUST REDUCED!
• Assumable Loan in place at approximately 70% loan-to-value with a 5.91% interest rate
• Beautiful “Class A” multifamily near Fort Bragg with full amenities and a 20-acre lake
• Stable operations with outstanding short and long-term growth potential
• Near shops, restaurants and services, and only minutes from downtown Fayetteville
• Excellent opportunity to capitalize on the booming Fayetteville and Fort Bragg market

LEARN MORE

Visit http://www.apartmentrep.com/PropertiesForSale.aspx

Apartment REP
5640 Six Forks Road - Suite 101
Raleigh, NC 27609
919.866.9984
ApartmentREP.com

Three Cary Apartment Complexes Sold for More than $90 Million

Mike@ApartmentREP.com — Wed, 19 Oct 2011 18:16:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

Another week. Another flurry of apartment deals in the Triangle.

Three complexes in Cary have sold in recent days for a total of just over $90 million.

The most noteworthy was the sale of the Preston Reserve apartments in Cary for $40.5 million, according to Wake County property records.

That price was $6.5 million more than the seller, Centennial Holding Co., a private Atlanta real estate firm, paid for the 360-unit complex in February 2010.

The buyer was a group of investors led by Greensboro-based Bell Partners.

The other two apartment deals involved Chancery Village at the Park in Cary and Boundary Village.

Chancery Village sold for $35.9 million, according to property records. The 276-unit complex opened last year. The buyer was Simpson Housing of Denver, which bought it from the developer, Woodfield Investments of Ashburn, Virginia.

Boundary Village, built in 1999, was purchased for $13.7 million by an LLC with a Raleigh address. The complex opened in 1999 and has 186 units.

The sales are further proof that investors strong appetite for multifamily properties is showing no signs of waning. The apartment market is one of the few commercial real estate sectors to bounce back quickly following the recession.

The turmoil in the single-family housing market, combined with the lack of new construction in recent years, is causing both occupancy and rental rates to rise in the Triangle and elsewhere.

The Triangle apartment market had an occupancy rate of 95.3 percent in the third quarter, up 1.8 percentage points from a year earlier, according to MPF Research, which analyzes apartment data in 64 U.S. metro markets.

The average monthly rent in the Triangle was $851, up 4.6 percent from the same period a year ago and up 3.1 percent from the previous quarter.

The quarterly increase was the largest seen in the Triangle in the two decades that MPF has been tracking the market, the firm reported.

RARE OPPORTUNITY: 694-unit Multifamily Portfolio in Wilmington NC (by UNC Wilmington)

Mike@ApartmentREP.com — Thu, 06 Oct 2011 16:08:00 GMT

This WILMINGTON MULTIFAMILY PORTFOLIO (4 Properties, 694 Units) offers an incredible opportunity for a multifamily investor to nearly dominate a market overnight!

WILMINGTON MULTIFAMILY PORTFOLIO
694-Unit Multifamily Portfolio in Wilmington, North Carolina
CALL FOR OFFERS – Due October 28, 2011

HIGHLIGHTS

694-unit portfolio in high-demand coastal market
3 of the 4 communities within walking distance to UNC Wilmington and the 4th is only 1.8 miles from campus
Prime locations in the heart of Wilmington convenient to shopping and entertainment
Huge upside potential from below-market rents in strong rental market with rising occupancy and increasing rental rates
Call For Offers - Due October 28, 2011

EXECUTIVE SUMMARY

· View Executive Summary

CONFIDENTIALITY AGREEMENT

· To access the full details, please complete and return the Confidentiality Agreement at this link: Click Here for Confidentiality Agreement

CONTACT US

Jim Scofield / Wayne Braren / Mike Siciliano
919.866.9984

Visit www.ApartmentREP.com for more details!

Durham inspires 123 West Franklin Mixed Development in Chapel Hill

Mike@ApartmentREP.com — Tue, 13 Sep 2011 15:24:00 GMT

Written by Mark Schultz | TRIANGLE NEWS & OBSERVER

CHAPEL HILL -- The developers of the University Square property on Franklin Street are taking a lesson from one of the Triangle's most successful downtown makeovers: Durham's American Tobacco Campus.

At a meeting Thursday, John McColl, executive vice president of development for Cousins Properties, said the company plans a grass quad inside the Chapel Hill site "similar to the American Tobacco interior."

The American Tobacco Campus across from the Durham Bulls Athletic Park has a long courtyard with a waterway and stage surrounded by a lawn and outdoor dining.

McColl told about 30 people at Chapel Hill Town Hall that the grass quad idea grew out of public meetings Cousins Properties and the UNC-Chapel Hill Foundation have held since the foundation bought the property for $45.75 million from US/GT, LLC, a company affiliated with the Kenan family, in 2009. The foundation is private, and the property will remain on the tax roll.

The current project covers half the 12-acre site. The Granville Towers dormitories are not part of the project and "are staying right where they are for now and the foreseeable future," McColl said.

The project would raze the retail/office buildings now standing between a parking lot and the Franklin Street sidewalk.

New buildings, including one rising 118 feet but only three stories along the sidewalk, would include 40,000 square feet of retail space; 300,000 square feet of office space, up from 80,000 square feet now; 90,000 square feet of "flex space" that could house an entertainment venue; and 150,000 square feet of rental housing, McColl said.

An underground parking garage doubling the number of spaces to about 1,000 would replace most of the surface parking.

Questions Thursday included how Cousins will connect the property to its surroundings, how much office space would cost, and whether the property, now marked by fences and sometimes driveway chains, would become more open.

"Anything you can do to enhance people cutting through this property would be really great," said Will Raymond.

McColl said the developers plan two Franklin Street entrances and a new entrance off Cameron Avenue.

Office space will rent for $30 to $33 per square foot, slightly higher than downtown rates now but in line with newly constructed space.

And yes, McColl said, the goal is to make the property "permeable," with people walking through 24/7.

"Our goal is to make this a place," he said, meaning a destination spot like American Tobacco with its restaurants, concerts and movies on the lawn.

Ruby Sinreich, a former member of the town's planning board, echoed that.

"Durham has been kicking our (expletive)," she said. "Chapel Hill has to catch up."

Jim Scofield Rides Again!!! (for Multiple Sclerosis, that is)

Mike@ApartmentREP.com — Fri, 09 Sep 2011 15:15:00 GMT

The cure for MS can't be found fast enough!

The world is really struggling, the U.S. economy remains difficult with nagging high unemployment and economic uncertainty is at an all-time high.

But as difficult as these troubles are they aren't even in the same universe as the challenges of those suffering from multiple sclerosis. Having multiple sclerosis means that you may suddenly have blurry vision. Or that your memory will fail you for no apparent reason. Or that you may not always be able to walk, let alone ride a bike. The symptoms of MS are different, and devastating, for everyone - the only certainty is that it will affect yet another person every hour of every day.

That's why your donation is so important! In fact it's a matter of life and death for many of those with MS! Ongoing research is certainly making a difference and will speed the day when we have a cure. But research and trials cost lots of money.

How about helping the fight against MS anyway. I guarantee I'll finish the ride if you'll support me.

By renewing your pledge or making one for the first time you'll be part of an exceptionally loving and generous group of people who have loyally supported my MS 150 rides through the years.

Click here to pledge and help cure MS!

Since I began riding in these events in 1996 you've donated $32,758.75 for the 2,225 miles I've ridden!

This year I'd like to add at least $3,000 to that total and another 150 miles.

The 150 miles are a "Done Deal". With your help we can say the same for this ride's $3,000 fundraising goal.

CO-PILOTS NEEDED

The more I ride for MS the more people I meet who suffer from this insidious disease or who have family members and friends who suffer from it.

I never want to forget these courageous people so I wear a laminated placard like the one in the photo below during the ride to encourage and commemorate their fight.

Please send me the names and photos of those you know with MS and I will gladly add them to my placard and take them on the ride as my honorary "Co-Pilots".

SPONSOR ME TODAY & HELP CURE MULTIPLE SCLEROSIS

Click here to help cure MS!

Thanks so much for your support. Words can’t explain how much my friends with MS appreciate it.

Gratefully yours,

Jim Scofield

JUST LISTED: 216-unit "Class A" Multifamily in booming Fayetteville NC / Fort Bragg market!

Mike@ApartmentREP.com — Thu, 08 Sep 2011 18:20:00 GMT

Apartment REP just listed ADAMS LAKE APARTMENTS, a 216-unit "Class A" multifamily property in the booming Fayetteville NC / Fort Bragg market!

An overview of the property is shown below, and you can access the full details online at http://www.apartmentrep.com/PropertiesForSale.aspx

ADAMS LAKE APARTMENTS
216-Unit “Class A” Multifamily Property in Fayetteville, North Carolina
PRICE: $19,500,000

HIGHLIGHTS

Assumable Loan in place at approximately 70% loan-to-value with a 5.91% interest rate
Beautiful “Class A” multifamily near Fort Bragg with full amenities and a 20-acre lake
Stable operations with outstanding short and long-term growth potential
Near shops, restaurants and services, and only minutes from downtown Fayetteville
Excellent opportunity to capitalize on the booming Fayetteville and Fort Bragg market

Visit www.ApartmentREP.com for more details!

PRICE REDUCED for 96-unit Multifamily in Durham, North Carolina

Mike@ApartmentREP.com — Tue, 06 Sep 2011 15:46:00 GMT

The price was just reduced for COUNTRY SCENE APARTMENTS in Durham, NC.

An overview of the property is shown below, and you can access the full details at
http://www.apartmentrep.com/PropertiesForSale.aspx

COUNTRY SCENE APARTMENTS
96-Unit Multifamily Property in Durham, North Carolina
REDUCED PRICE: $6,500,000

HIGHLIGHTS

Excellent “turnkey” multifamily opportunity for new owner to enjoy immediate cash flow
Upside on rents and revenues with 99% occupancy
Well-maintained property in solid rental market
Good location near Research Triangle Park, RDU Airport, I-40, Downtown Durham and more, with easy access to all points in North Carolina

Contact Apartment REP at 919-866-9984 or visit www.ApartmentREP.com for more information.

Just Listed: 3 Multifamily Properties (332 Total Units) in Fayetteville, NC

Mike@ApartmentREP.com — Tue, 16 Aug 2011 13:58:00 GMT

Apartment REP just listed THREE MULTIFAMILY PROPERTIES in the Fayetteville / Fort Bragg market of North Carolina. An overview of the properties are shown below, and you can access the full details for each property online at

http://www.apartmentrep.com/PropertiesForSale.aspx

Total of 332 Apartment Units in Fayetteville, North Carolina
(These can be purchased individually or as a portfolio)

ADAMS LAKE – 216 Units

• Assumable Loan in place at approximately 70% loan-to-value with a 5.91% interest rate
• Beautiful “Class A” multifamily near Fort Bragg with full amenities and a 20-acre lake
• Stable operations with outstanding short and long-term growth potential
• Near shops, restaurants and services, and only minutes from downtown Fayetteville
• Excellent opportunity to capitalize on the booming Fayetteville and Fort Bragg market

RIM CREEK – 56 Units

• Pristine “Class A” multifamily in booming Fayetteville, NC market
• 100% occupied with extremely stable operations
• Detached garages and storage units for additional revenue
• Luxury apartments with upgraded kitchens, bathroom and fixtures
• Down the street from Wal-Mart Supercenter and only minutes from Fort Bragg

CREEKSIDE – 60 Units

• Assumable Loan in place at 75% loan-to-value with a 6.05% interest rate
• Built in two phases for a total of 60 units, with newer phase completed in 2005
• Located within the booming Fayetteville and Fort Bragg MSA
• About two miles from Wal-Mart Supercenter and I-95
• Option 1-acre parcel available to add 15 additional units

LEARN MORE

Visit

http://www.apartmentrep.com/PropertiesForSale.aspx

for details on each property.

CONTACT

Jim Scofield / Wayne Braren / Mike Siciliano
919.866.9984

Visit

www.ApartmentREP.com

for more information!

Just Listed: 152-Unit Multifamily Property with Full Amenities in Asheboro, NC

Mike@ApartmentREP.com — Wed, 27 Jul 2011 13:41:00 GMT

Apartment REP just listed HANOVER COURT. An overview of the property is shown below, and you can access the full details at www.ApartmentREP.com

HANOVER COURT

152-Unit Multifamily Property in Asheboro, North Carolina
$5,700,000

HIGHLIGHTS

Very well-maintained property in a stable rental market within the Triad region of NC
Plenty of amenities including two swimming pools, fitness center, tennis courts, children’s playground, onsite laundry facilities and more
Down the street from Randolph Hospital and only minutes from the North Carolina Zoo
Just off I-73/I-74 with a short commute to Greensboro and High Point

Visit www.ApartmentREP.com or contact us at 919-866-9984 for details.

For Sale: 96-Unit "Turnkey" Multifamily in Durham, North Carolina

Mike@ApartmentREP.com — Tue, 26 Jul 2011 15:54:00 GMT

Apartment REP just listed COUNTRY SCENE APARTMENTS. An overview of the property is shown below, and you can access the full details at www.ApartmentREP.com

COUNTRY SCENE APARTMENTS
96-Unit Multifamily Property in Durham, North Carolina
$6,500,000

HIGHLIGHTS
• Excellent “turnkey” multifamily opportunity for new owner to enjoy immediate cash flow
• Upside on rents and revenues with 99% occupancy
• Well-maintained property in solid rental market
• Good location near Research Triangle Park, RDU Airport, I-40, Downtown Durham and more, with easy access to all points in North Carolina

Contact Apartment REP at 919-866-9984 or visit www.ApartmentREP.com for more information.

The Next Big Boom Towns In The U.S.

Mike@ApartmentREP.com — Wed, 20 Jul 2011 18:18:00 GMT

Written by Joel Kotkin | FORBES

What cities are best positioned to grow and prosper in the coming decade?

To determine the next boom towns in the U.S., Forbes, with the help of Mark Schill at the Praxis Strategy Group, took the 52 largest metro areas in the country (those with populations exceeding 1 million) and ranked them based on various data indicating past, present and future vitality.

We started with job growth, not only looking at performance over the past decade but also focusing on growth in the past two years, to account for the possible long-term effects of the Great Recession. That accounted for roughly one-third of the score. The other two-thirds were made up of a a broad range of demographic factors, all weighted equally. These included rates of family formation (percentage growth in children 5-17), growth in educated migration, population growth and, finally, a broad measurement of attractiveness to immigrants — as places to settle, make money and start businesses.

We focused on these demographic factors because college-educated migrants (who also tend to be under 30), new families and immigrants will be critical in shaping the future. Areas that are rapidly losing young families and low rates of migration among educated migrants are the American equivalents of rapidly aging countries like Japan; those with more sprightly demographics are akin to up and coming countries such as Vietnam.

Many of our top performers are not surprising. No. 1 Austin, Texas, and No. 2 Raleigh, N.C., have it all demographically: high rates of immigration and migration of educated workers and healthy increases in population and number of children. They are also economic superstars, with job-creation records among the best in the nation.

Perhaps less expected is the No. 3 ranking for Nashville, Tenn. The country music capital, with its low housing prices and pro-business environment, has experienced rapid growth in educated migrants, where it ranks an impressive fourth in terms of percentage growth. New ethnic groups, such as Latinos and Asians, have doubled in size over the past decade.

Two advantages Nashville and other rising Southern cities like No. 8 Charlotte, N.C., possess are a mild climate and smaller scale. Even with population growth, they do not suffer the persistent transportation bottlenecks that strangle the older growth hubs. At the same time, these cities are building the infrastructure — roads, cultural institutions and airports — critical to future growth. Charlotte’s bustling airport may never be as big as Atlanta’s Hartsfield, but it serves both major national and international routes.

Of course, Texas metropolitan areas feature prominently on our list of future boom towns, including No. 4 San Antonio, No. 5 Houston and No. 7 Dallas, which over the past years boasted the biggest jump in new jobs, over 83,000. Aided by relatively low housing prices and buoyant economies, these Lone Star cities have become major hubs for jobs and families.

And there’s more growth to come. With its strategically located airport, Dallas is emerging as the ideal place for corporate relocations. And Houston, with its burgeoning port and dominance of the world energy business, seems destined to become ever more influential in the coming decade. Both cities have emerged as major immigrant hubs, attracting on newcomers at a rate far higher than old immigrant hubs like Chicago, Boston and Seattle.

The three other regions in our top 10 represent radically different kinds of places. The Washington, D.C., area (No. 6) sprawls from the District of Columbia through parts of Virginia, Maryland and West Virginia. Its great competitive advantage lies in proximity to the federal government, which has helped it enjoy an almost shockingly ”good recession,” with continuing job growth, including in high-wage science- and technology-related fields, and an improving real estate market.

Our other two top ten, No. 9 Phoenix, Ariz., and No. 10 Orlando, Fla., have not done well in the recession, but both still have more jobs now than in 2000. Their demographics remain surprisingly robust. Despite some anti-immigrant agitation by local politicians, immigrants still seem to be flocking to both of these states. Known better s as retirement havens, their ranks of children and families have surged over the past decade. Warm weather, pro-business environments and, most critically, a large supply of affordable housing should allow these regions to grow, if not in the overheated fashion of the past, at rates both steadier and more sustainable.

Sadly, several of the nation’s premier economic regions sit toward the bottom of the list, notably former boom town Los Angeles (No. 47). Los Angeles’ once huge and vibrant industrial sector has shrunk rapidly, in large part the consequence of ever-tightening regulatory burdens. Its once magnetic appeal to educated migrants faded and families are fleeing from persistently high housing prices, poor educational choices and weak employment opportunities. Los Angeles lost over 180,000 children 5 to 17, the largest such drop in the nation.

Many of L.A.’s traditional rivals — such as Chicago (with which is tied at No. 47), New York City (No. 35) and San Francisco (No. 42) — also did poorly on our prospective list. To be sure, they will continue to reap the benefits of existing resources — financial institutions, universities and the presence of leading companies — but their future prospects will be limited by their generally sluggish job creation and aging demographics.

Of course, even the most exhaustive research cannot fully predict the future. A significant downsizing of the federal government, for example, would slow the D.C. region’s growth. A big fall in energy prices, or tough restrictions of carbon emissions, could hit the Texas cities, particularly Houston, hard. If housing prices stabilize in the Northeast or West Coast, less people will flock to places like Phoenix, Orlando or even Indianapolis (No.11) , Salt Lake City (No. 12) and Columbus (No. 13). One or more of our now lower ranked locales, like Los Angeles, San Francisco and New York, might also decide to reform in order to become more attractive to small businesses and middle class families.

What is clear is that well-established patterns of job creation and vital demographics will drive future regional growth, not only in the next year, but over the coming decade. People create economies and they tend to vote with their feet when they choose to locate their families as well as their businesses. This will prove more decisive in shaping future growth than the hip imagery and big city-oriented PR flackery that dominate media coverage of America’s changing regions.

Raleigh Tops Forbes' Best Places for Business 2011

Mike@ApartmentREP.com — Mon, 11 Jul 2011 14:18:00 GMT

Written by Kurt Badenhausen | FORBES

The recession spared few U.S. cities, wiping out 9.4 million jobs between November 2007 and August 2009. Many will never return, and those that do you probably won’t find on the East or West Coast. For the most active areas of job creation (and lower costs of doing business) you have to go to the heartland, home to 80 percent of the top 25 regions on our list of Best Places for Business.

In most of these hot hubs you’ll find a strong university or two, providing rich cultural life and the kind of technology transfer that sparks entrepreneurial activity — giving that educated population lots of reasons to stick around.

Topping our 13th annual list of the Best Places for Business and Careers is Raleigh, N.C. It is one of those locales with a strong university presence helping fuel growth in the area (albeit in an East Coast state, a rarity in the upper part of the list). Raleigh and nearby Durham (ranked No. 31) get a strong boost from three elite schools in the surrounding area in University of North Carolina, Duke University and North Carolina State.

Raleigh ranks No. 1 after dipping to third last year. Low business costs (18 percent below the national average) and a smart labor force (42 percent have a college degree) make North Carolina’s capital an attractive spot for employers like First Citizens Bank and Progress Energy. Job seekers get it: The net migration rate to Raleigh was the second highest in the U.S. over the past five years.

Our look at America’s Best Places for Business showcases the stark contrast between Texas — with its low-cost, pro-business regulatory environment (5 cities among the top 25, led by Austin at No. 7) — and overregulated and wildly expensive California (home to 8 cities that rank in the bottom 25, including No. 200 Merced). Texas was one of the last economies to succumb to the recession and one of the first to bounce back, while California is limping along with an unemployment rate of 11.7 percent (only Nevada’s is worse).

Besides Austin, Texas also placed San Antonio and Dallas in the top 10. San Antonio, ranked No. 8, is among the fastest-growing metro areas in the U.S. (the population increased 25 percent since 2000). It has been buoyed by defense spending and hiring at Toyota Motor’s truck assembly plant. Dallas (No. 10) has been one of the most resilient economies during the recession and could add 190,000 jobs in the next three years.

It’s not all bad in the Golden State. Aside from nice weather, California does have bright spots in San Jose (No. 35) and San Francisco (No. 37), both of which made the top 40 thanks to a rich arsenal of educated and talented workers.

Demographer Bert Sperling argues that much of the recent success of the heartland can be attributed to “extractive industries” like oil, gas and mining as well as record-high crop prices that have provided jobs and revenue to the center of the U.S. “These economies run in cycles, and these booms and busts are often decades in the making,” he says.

Our ranking of Best Places looks at the 200 largest metropolitan statistical areas in the U.S. These range in size from the New York City metro, with to 11.6 million people, to Laredo, Texas, home to 252,000 people. We consider 12 metrics relating to job growth (past and projected), costs (business and living), income growth, educational attainment and projected economic growth.

We also factor in quality of life issues like crime rates, cultural and recreational opportunities and net migration patterns. Lastly we included the number of highly ranked colleges in an area per our annual college rankings. A tip of the cap to Moody’s Economy.com, which provided much of the data, including the economic forecasts. Bert Sperling, founder of Sperling’s BestPlaces, put together a culture and leisure index for Forbes and also crunched the crime numbers for us. College attainment data is compiled by the Census Bureau.

Des Moines, Iowa, last year’s No. 1 dropped one spot as employment fell 0.9 percent in 2010. The area still has plenty to offer with business costs 16 percent below the national average and household incomes that are expected to increase 4.2 percent annually through 2013, eighth best in the U.S. Workers at big employers like Principal Financial and Wells Fargo enjoy cheap housing (median price $148,600) and 20-minute average commutes.

Another big metro that made the top 10, in addition to the three Texas locales, is Denver, which ranks No. 9. U.S. economic growth has been tepid since the recession ended, but Denver’s economy grew 3.9 percent last year and is expected to grow 3.9 percent annually through 2013 according to Economy.com. Denver’s great quality of life and educated workforce make it a favorite with companies in industries from aerospace and bioscience to energy, financial services and information technology. Major employers include IBM, Lockheed Martin and Wells Fargo.

A big mover in the rankings this year is the New York metro, which ranked No. 45, up from No. 99 in 2010. Yes it is still the most expensive place to do business in the U.S. at 51 percent above the national average, but the job and economic forecasts are much improved for the area. The economy is forecast to expand 4.5 percent per year and household income are expected to increase 4.1 percent annually the next three years, 12th best in the U.S.

New York also scores well on quality-of-life issues. It ranks first on Sperling’s index among cities for culture and recreation, and its crime rate is 11th-lowest in the country. The biggest draw might be its talented, educated work force with 36 percent having a college degree–only Washington, D.C. is higher among the 10 largest metros. The concentration of big firms is unmatched as well. It is the corporate home for 80 public companies with more than $1 billion in sales.

The Investment Sales Market for Triangle Apartments Shows No Signs of Cooling Off

Mike@ApartmentREP.com — Wed, 22 Jun 2011 18:30:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

This week, a New Jersey firm, Heritage Capital Group, paid $51.5 million for two communities in Raleigh and one in Cary, according to Wake County property records.

The purchase price was $7.45 million more than the seller, The Embassy Group of Airmont, N.Y., paid for the properties in 2008 and 2009.

All three communities - The Lakes and Arden Woods in North Raleigh and Williamsburg Manor in Cary - were built in the 1970s.

Representatives for Heritage didn't return a call seeking comment late Wednesday.

Embassy specializes in investing in apartment communities that are between 20 and 30 years old. Its purchase of The Lakes and Arden Woods in late 2008 was one of the first signs indicating how far apartment values had fallen in the Triangle.

Values have recovered faster than many expected.

The three communities Heritage purchased comprise 964 units.

The purchase price, about $54,000 a unit, is impressive even when you factor in the money Embassy spent improving the properties, said Jim Scofield, CEO of the Raleigh real estate company Apartment REP.

Investors have been flocking to multi family properties, which offer strong cash flow and are improving much faster than other commercial real estate sectors.

"Multifamily, many will say, offers the best risk-adjusted return in the market compared to office and retail," Scofield said. "And real estate is a great hedge against inflation."

The turmoil in the single-family housing market, combined with the lack of new construction in recent years, is causing both occupancy and rental rates to rise in the Triangle and elsewhere.

The Triangle apartment market had an occupancy rate of 93.5 percent in the first quarter, up 1.6 percentage points from a year earlier, according to MPF Research, which analyzes apartment data in 64 U.S. metro markets.

The average rent was $820, up 3.9 percent from a year ago.

Though new office construction remains at historically low levels, developers are moving ahead with numerous new apartment projects across the Triangle.

A Bull Market in Rental Housing (article from The Wall Street Journal)

Mike@ApartmentREP.com — Mon, 02 May 2011 15:52:00 GMT

Written by Anna Maria Andriotis | SMART MONEY SMALLBIZ

Five years into the real-estate bust, the market for single-family homes seems weaker than ever. According to the most recent S&P/Case-Shiller housing data, prices fell 3.3% nationwide in February from a year earlier.

The ongoing malaise, paradoxically, is only boosting the opportunities for investors in multiunit rental properties.

The days of buying and flipping a property for quick profit are long gone. But investors who purchase apartment buildings, perhaps as part of a retirement portfolio or estate plan, are seeing better deals now than at any time in the past decade, says Dan Fasulo, managing director at Real Capital Analytics, a real-estate research-and-consulting firm. On the cost side, housing prices are low and falling in many areas, while mortgage rates are near historic lows. On the income side, apartment rents are near all-time highs.

"As an asset class, it looks awfully attractive," Mr. Fasulo says.

Nationwide, rents now average $991, compared with $930 in 2006, and are expected to rise to about $1,025 by 2012, according to Reis Inc., which tracks rental-performance data. In part, that is because there are fewer units: The national vacancy rate for apartments dropped to 6.2% during the first quarter of 2011, from 8% a year ago.

Rental demand should remain strong for several years, experts say. The housing-market crash and shaky job market have made more would-be homeowners gun-shy about buying, says Paula Poskon, a senior research analyst at R.W. Baird, a wealth-management company.

Demographic trends also are favorable. Roughly 3 million young adults had been living with family during the past five years, according to data from the Census and real-estate investment brokerage firm Marcus & Millichap, and housing experts estimate that they now generate about one-third of rental demand.

Still other renters have no alternative. Some 2.8 million homes were foreclosed on since 2008, with another 5 million expected to enter foreclosure or be repossessed by the banks by the end of 2012, according to RealtyTrac.com. Many of those former homeowners will have to rent until their credit score recovers, which typically takes seven years.

Such factors have sparked a bull market: Sales of multifamily units priced at $500,000 or above surged by 28% in the first quarter of 2011 from a year earlier, according to Marcus & Millichap. The dollar volume surged 44% to $11.2 billion.

The key for investors, of course, is to find a property that generates enough rent to cover the operating costs. Annual expenses, including property taxes, insurance, water, heat, maintenance and occasional repairs, shouldn't eat up more than 40% of a property's annual rental income, says Jim Scofield, senior investment adviser at Apartment REP, a multifamily brokerage and advisory firm in Raleigh, N.C.

Factoring in maintenance costs and other variables, an investment property should produce at least a 6% return on the initial cash investment in the first year after it is purchased, Mr. Scofield says. For example, an investor who puts down $250,000 in cash on a $750,000 property would need to clear at least $15,000 in the first year.

There are, to be sure, drawbacks to this kind of investing, from repairs to delinquent tenants. Laws vary by state, but typically tenants could end up staying for up to four months without paying rent before the eviction process is completed, says Hessam Nadji, managing director of research and advisory services at Marcus & Millichap.

Investors who don't want to fix a broken toilet on a Saturday night can pay a property-management company to handle everything from leasing apartments to making repairs. Fees, which generally run about 5% to 6% of total annual rents, often decrease as the number of units increases, says Tony Drost, president of the National Association of Residential Property Managers.

The big payoff from property investing comes when the mortgage is paid off. For a conservative investor, assuming a 15-year mortgage, the influx of extra income could arrive just in time to subsidize retirement, rising health-care costs or children's college tuition.

That has been William King's strategy for some time now. The 43-year-old owner of an audiovisual production company in Morrisville, N.C., has used real-estate investments to save for college tuition for his two children, ages 9 and 13, accumulating more than 20 properties.

In March, Mr. King dipped into his savings to buy a $550,000 multi-unit dwelling nearby, this time with an eye on retirement. The property generates about $50,000 a year after expenses and financing, and Mr. King plans to own it outright before he is 60. At that point, he says, it will probably yield about $80,000 at today's rate.

For investors who want exposure to income-producing properties without getting their hands dirty, there are alternatives. Real-estate investment trusts, or REITs, pass along at least 90% of their taxable income, typically rent from tenants, to shareholders in the form of dividends. They perform better when the rental market picks up—in 2010, the average REIT returned 27.5%—and during inflationary periods, since rents tend to increases with inflation.

Investors also can pool their money—the minimum investment required is typically $250,000—into private-equity groups that in turn buy large properties, many of which are distressed, and hold them for five to 10 years with the aim of selling at a profit, says Jack McCabe, a housing analyst in Deerfield Beach, Fla., and consultant to private-equity groups.

But these options don't offer leverage. An investor can buy a property outright with a mortgage and a down payment of around 25% to 30% in cash. Any capital appreciation magnifies the returns on that investment.

"You can't beat the real-estate angle right now," Mr. King says. "I'm more excited about it than I've ever been."

Hottest Multifamily Markets for 2011

Mike@ApartmentREP.com — Fri, 15 Apr 2011 15:29:00 GMT

Written by Boyce Thompson | BUILDER MAGAZINE

Monthly multifamily permit activity has been gyrating like a teenage pop singer of late--rising 17% one month, only to fall 8% the next. Clearer patterns emerge from an analysis of year-long, 2010 permit data. That analysis shows where 2011 development activity is likely to be concentrated.

Based on sharp permit increases in many major markets, it looks as though the long-vaunted rise in demographically favored multifamily construction may be close at hand. Some of the largest household growth in this country over the next ten years will be in the 25 to 34 age cohort that's most likely to rent apartments.

On the other hand, multifamily construction has been running at such depressed levels that an increase in activity shouldn't be a surprise. "Multifamily construction activity declined so sharply over the last two years that the current rate of increase is inevitable even in a period of weak employment growth," reads Hanley Wood Market Intelligence's U.S. Housing Market's February 10th Flash Report.

In either case, apartment fundamentals are so strong that Marcus & Millichap, a research and brokerage firm, forecasts that vacancies and rents will increase this year in each of the 44 apartment markets it covers. It says that several years of very light construction activity, which makes apartments scarce and allows landlords to charge higher rents, will help owners recover lost value in their apartment portfolios.

With balance sheets improving and investors eager to make deals, the industry would appear to be in an ideal position to start new projects. If only the decision to build apartments were that easy. Owners and developers continually weigh the cost of building new apartments against buying older buildings and remodeling them, or even investing in their current buildings to potentially raise rents.

The availability of financing, particularly construction debt, is another critical component in decisions to develop new apartments. Despite this challenge, investor interest in building new apartments and repositioning existing properties is extremely high right now, according to senior multifamily executives who spoke at the 2011 Vail Leadership Summit hosted by Multifamily Executive, a sister magazine to BUILDER. Optimism pervaded the conference—companies who didn’t put shovel to dirt in all of 2009 laid out plans to ramp up their 2011 pipelines again.

Given that the big players in the multifamily market, publically held REITs, prefer to build in Class A coastal markets, it's no surprise that metro areas such as New York City, Los Angeles, and Washington, D.C. top the list of development hot spots in 2011. But activity is clearly picking up in other traditionally large apartment markets with strong business centers such as Houston and Chicago.

An analysis of preliminary 2010 permit data, courtesy of U.S. Housing Markets, shows where developers are already placing their chips. Here's a list of the 20 largest markets for multifamily permit activity in 2010, along with percentage increases or decreases.

Rank / Metro / 2010 Permits / Increase/Decrease

1 / New York-Wayne-White Plains NY-NJ (Div.) / 8,305 / +2%

2 / Houston-Baytown-Sugar Land, TX (MSA) / 5,169 / +4%

3 / Los Angeles-Long Beach-Glendale, CA (Div.) / 4,784 / +63%

4 / Dallas-Plano-Irving, TX (Div.) / 3,852 / 15%

5 / Seattle-Bellevue-Everett, WA / 3,692 / +57%

6 / San Jose-Sunnyvale-Santa Clara, CA (MSA) / 3,327 / +622%

7 / Washington-Arlington-Alexandria, DC-VA-MD-WVA (MSA) / 2,501 / +16%

8 / Chicago-Naperville-Joliet, IL (Div.) / 2,361 / +73%

9 / Miami-Miami Beach-Kendall, FL (Div.) / 2.265 / +331%

10 / Indianapolis, IN (MSA) / 2.128 / +15%

11 / Tampa-St. Petersburg-Clearwater, FL (MSA) / 2.105 / -32%

12 / Baltimore-Towson, MD (MSA) / 2,067 / +7%

13 / Fayetteville, NC (MSA) / 1,967 / +131%

14 / Minneapolis-St. Paul-Bloomington, MN-WI (MSA) / 1,921 / +85%

15 / Edison, N.J. (Div.) / 1,811 / +167%

16 / Boston-Quincy, MA (Div.) / 1,792 / +13%

17 / San Antonio, TX (MSA) / 1,733 / +242%

18 / Little Rock-North Little Rock, AR (MSA) / 1,715 / +38%

19 / Oakland-Fremont-Hayward, CA (Div.) / 1,634 / +137%

20 / El Paso, TX (MSA) / 1,588 / +188%

Arbor Park Townhomes in Greensboro sells for $2,525,000

Mike@ApartmentREP.com — Wed, 06 Apr 2011 15:10:00 GMT

Apartment REP, a multifamily commercial real estate brokerage and advisory firm headquartered in Raleigh, just completed the sale of the ARBOR PARK TOWNHOMES in Greensboro, North Carolina.

Here are the details of the sale:

• PROPERTY NAME: Arbor Park Townhomes
• TOTAL UNITS: 94
• YEAR BUILT: 1967 (Renovated in 2007)
• LOCATION: Greensboro, NC
• SALE DATE: March 31, 2011
• SALE PRICE: $2,525,000
• SALE PRICE PER UNIT: $26,862
• SALE TYPE: Listed by Apartment REP
• SELLER REPRESENTED BY: Apartment REP
• BUYER REPRESENTED BY: Apartment REP

Feel free to contact Apartment REP directly at 919.866.9984 to learn more.

TEAM & CONTACT INFORMATION

Jim Scofield / Wayne Braren / Mike Siciliano

919.866.9984

www.ApartmentREP.com

Indiana Company Pays $27.3M for Two Raleigh Apartment Complexes

Mike@ApartmentREP.com — Thu, 10 Mar 2011 16:25:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

An Indiana real estate firm has purchased two apartment complexes in Raleigh for $27.3 million.

The Sterling Group of Mishawaka, Indiana paid $12.4 million for the 156-unit Strickland Farms Apartments in North Raleigh, according to Wake County property records.

The company also paid $14.935 million for the 268-unit Lenoxplace Apartments in southern Raleigh near Tryon Road and U.S. 401.

Lenoxplace was built in 2001; Strickland Farms in 2000.

Both apartment complexes were once owned by J.P. Realty IV, an investment vehicle owned by Raleigh developer John Politis, according to documents on file with the N.C. Secretary of State's office.

The properties were placed into receivership, and Harbor Group Management Co. of Norfolk, Virginia handled the sale.

The Sterling Group owns 58 multi-family properties in 14 states. Lenoxplace and Strickland Farms are the company's first assets in North Carolina.

Richmond Hills Rehab Opportunity in Raleigh sells for $1.65M

Mike@ApartmentREP.com — Tue, 01 Mar 2011 15:52:00 GMT

Apartment REP, a multifamily commercial real estate brokerage and advisory firm headquartered in Raleigh, just completed the sale of the RICHMOND HILLS REHAB OPPORTUNITY in Raleigh, North Carolina.

Here are the details of the sale:

• PROPERTY NAME: Richmond Hills
• TOTAL UNITS: 71
• YEAR BUILT: 1971
• LOCATION: Raleigh, NC
• SALE DATE: February 25, 2011
• SALE PRICE: $1,650,000
• SALE PRICE PER UNIT: $23,239
• SALE TYPE: Listed by Apartment REP
• SELLER REPRESENTED BY: Apartment REP
• BUYER REPRESENTED BY: Apartment REP

Feel free to contact Apartment REP directly at 919.866.9984 to learn more.

TEAM & CONTACT INFORMATION

Jim Scofield / Wayne Braren / Mike Siciliano

919.866.9984

www.ApartmentREP.com

Cameron Village Apartment Project's Preliminary Site Plan Approval

Mike@ApartmentREP.com — Fri, 25 Feb 2011 18:09:00 GMT

Written by Chelsea Kellner | TRIANGLE NEWS & OBSERVER

RALEIGH -- An ambitious central Raleigh development cleared its final hurdle Tuesday, when the Raleigh City Council unanimously approved preliminary site plans for The Residences at Cameron Village.

The $45 million project will place 282 apartments, 16,000 square feet of retail and a 450-space parking deck on a 2.6-acre site at the northeast corner of the intersection of Oberlin Road and Clark Avenue.

Although the project exceeds a 50-foot height limitation on new construction in Cameron Village, developer Crescent Resources supplied evidence that the site plan met city code criteria.

Construction is expected to begin in early May.

Class “A” Apartment Sales are THE STORY for Raleigh-Durham-Chapel Hill Apartments in 2010

Mike@ApartmentREP.com — Tue, 26 Oct 2010 18:23:00 GMT

The Raleigh-Durham-Chapel Hill or “Triangle” investment apartment market has certainly heated up in comparison to 2009’s dismal performance. So far this year 25 apartment communities have sold for more than $428,200,000 compared to only 21 sales and $279,783,000 in all of 2009. That’s a 53% increase with more than 2 months left to go!

But that’s not the story. THE STORY is how the Class “A” apartment communities have totally dominated 2010 investment sales in the Triangle. Consider this:

• 44% of the total communities sold so far this year have been Class “A” deals
• Class “A” deals make up 76.7% of the total YTD sales $’s
• Class “A” deals comprise 54.1% of the total YTD 2010 units sold
• Because of the Class “A” deals, the $83,178 average price per unit for ALL Triangle apartment sales in 2010 is 37% higher than it was in 2009
• The 2010 Class “A” average price per unit YTD is 25.2% higher than it was in 2009

Average Class “A” CAP rates are 15.1% lower YTD than they were in 2009, and have compressed the average CAP rate for all 2010 apartment sales by 5% from 2009.

There are two significant takeaways from these facts: With apartment interest rates at all-time lows,

1. If you have a Class “A” apartment community and you’re considering selling, now is absolutely the best time to sell with the voracious demand the market is experiencing, and
2. Class “A” apartment sales and improving market fundamentals are influencing demand for “B” and “C” communities and it’s an equally beneficial time to sell them too.

Call Apartment REP if you would like to confidentially explore what your apartment community might be worth in today’s market. As apartment specialists who breathe, eat and drink only apartments we maintain encyclopedic market knowledge and a proprietary database that will be harnessed to achieve your objectives.

Housing Slump Offers Opportunity In Apartment Market

Mike@ApartmentREP.com — Tue, 19 Oct 2010 16:16:00 GMT

Written by Sara Clemence | CNBC.com

The property in Fort Lauderdale, Fla. was originally valued at $285,000. Clint Gordon, a private investor in multifamily properties, offered the bank $50,000 cash—and within 10 days had closed the deal. A few days after that, he began renting it for $15,000 a year.

"Anybody that’s getting into this business now, you get a whole lot of return if you’re paying cash for properties," he says. "You're just buying them so cheap."

Prices are “incredible” in Indianapolis as well, says Barb Getty, who owns 27 apartment properties in the downtown area. "You can start small like I did—20 percent of 40 thousand bucks isn’t a lot of money.”

Just as there have been massive price drops for single-family homes over the past three years, there have been big declines for apartment buildings. That suggests that it’s a good time for investors who want to be landlords to start buying.

But as with all investments, the story isn’t quite so simple.

Where’s the Flood?

Investors who thought that a tsunami of dirt-cheap multifamily properties would wash over the U.S. market in the past two years have been largely disappointed.

The distress was limited to certain places and property types, says Hessam Nadji, managing director at real estate investment services firm Marcus & Millichap.

"The pain was concentrated where we had gross overbuilding in overall housing: Florida, Phoenix, Las Vegas, Southern California, and to some degree smaller markets like Tucson, Charlotte and Atlanta," says Badji.

Marc Solomon, whose Solomon Organization owns 10,000 garden apartments in New York, New Jersey, Connecticut and Pennsylvania, says that it is difficult to find opportunities that make good business sense in his markets, which still offer slow, steady returns. "There’s a lot of dollars out there chasing these deals," he says.

While there were big price cuts in North Carolina's research triangle, competition is driving down yields, says Jim Scofield, senior investment advisor at multifamily real estate broker Apartment REP.

Last October, an investment firm “got a steal” on a community in Raleigh called Autumn River, with a cap rate of about 7.75 percent. The most recent transaction in the area involved a community called Southern Oaks, which had a 5-percent cap rate.

"This is not just a phenomenon in the triangle, but in all the major markets—and especially all the apartment markets," Scofield says. "Manhattan, Washington D.C., Los Angeles, Denver, Chicago, Boston."

Risk and Return

There is less competition in markets where the supply is more fluid, but the risks are also higher.

"We landlords are happy," says Getty, adding the only thing preventing her from buying more properties is the ability to manage them on her own. Still, she hasn't been able to increase rents as much as she normally would.

Gordon says that his vacancies used to average three to five days. “Now I can have a vacancy of up to 60 days,” he says.

Despite all of the qualifiers, there is opportunity to be had in rental apartments because the timing is good, Nadji says. Average cap rates are still around 6.5 percent.

“I don’t think you’re going to get fire-sale prices,” he says. “But you can get that kind of return ahead of the job growth and ahead of the economic recovery.”

Rental occupancy rates contracted dramatically during the recession, as people doubled up to save money and young adults boomeranged back home. Vacancies nationwide hit a high of 8 percent in the last quarter of 2009, according to real estate research company Reis.

But industry insiders argue that rentals will bounce back quickly and dramatically as well. Indeed, in the third quarter of this year, vacancies dropped to 7.2 percent, according to Reis.

"Apartment rents are short term they adjust to market conditions very quickly," Hessam says. "We’ve seen a record demand for rental apartments so far this year—the strongest in over 10 years.”

Owning vs. Owning

Apartment buildings can also be attractive because investing in residential real estate seems similar to owning a home. But rental properties are different—starting from the purchase decision.

Homebuyers tend to look for a place they love that fits their needs and budget. But you have to see investment properties through the eyes of your tenant, Getty emphasizes. If your tenants won’t have cars, is it near public transportation?

Randall Gorman, president of La Jolla Capital Group in California, says prospective investors need to take the emotion out of their purchases.

"I don’t care if you’re buying a condo, a duplex or a ten-unit building," Gorman says. "Just because you’ve always loved that cottage-style apartment building that you drove by taking your kids to school, doesn’t mean the cash flow fundamentals work at a given price."

If considering a property, Gorman advises making sure you can run a cash flow model. Go beyond the cap rates the owner discloses, and figure out property rents by doing research online and in the neighborhood.

Calculate your annual revenue, and thoroughly survey costs like maintenance, taxes, utilities and incentives. (Property managers typically charge about 10 percent of a month’s rent.)

Add in a couple of months of vacancies—and don’t disregard the higher interest rates for commercial properties. According to PricewaterhouseCoopers, the national average interest rate for apartments in the third quarter was 5.68 percent. For the first week of October, Fannie Mae reported that the average 30-year fixed rate for a primary home was 4.27 percent.

If your final net income is $16,000 annually, aiming for a 10-percent cap rate puts the purchase price at $160,000.

"Don’t buy on what might happen, but on what is happening,"Scofield says. "Only buy a property if it is cash flowing to meet your investment return requirement on day one."

Even once you buy, it’s not a smart idea to treat your investment like a home.

"Investors make a huge mistake when they spend a lot of money on bells and whistles in their rental property," Getty says. "For instance, crown molding. A rental needs to compare well to others in the neighborhood, but don’t make it a palace—you won’t get that money back."

Visit CNBC.com at http://www.cnbc.com/id/39342303

South Durham Apartment Complex Fetches $29.5 Million

Mike@ApartmentREP.com — Thu, 07 Oct 2010 16:12:00 GMT

Written by David Bracken | TRIANGLE NEWS & OBSERVER

Southern Oaks at Davis Park, a 287-unit apartment complex in South Durham, has been bought for $29.5 million by Prudential.

The seller was Atlanta-based Wood Partners, which opened the property in 2007.

The sale continues the trend of quality Class A apartment buildings fetching high prices.

A total of 23 apartment complexes have sold in the Triangle this year, according to Apartment REP, a Raleigh real estate company. Those sales have totaled $388 million, which is more than double the amount recorded in 2009.

Southern Oaks was 93 percent occupied in March, according to data from the Triangle Apartment Association and Karnes Research.

Wood Partners paid $3.98 million for nearly 13 acres at Davis Drive and Hopson Road in 2006.

JUST LISTED: 66-unit Multifamily in Raleigh, NC at $49K/unit with Assumable Loan

Mike@ApartmentREP.com — Tue, 28 Sep 2010 15:07:00 GMT

MALLARD PARK APARTMENTS
66-Unit Multifamily Property in Raleigh, North Carolina
PRICE: $3,295,000

HIGHLIGHTS

• Only $49,924 per unit in prime Raleigh, NC market
• ASSUMABLE LOAN IN PLACE at approximately 86% Loan-to-Value
• Major renovations in 2005 including new roofs, siding, railings, paint and more
• Pond-side property in an excellent rental market just outside of downtown Raleigh
• Easy access to Research Triangle Park, RDU Airport and entire Triangle region

Visit http://www.apartmentrep.com/PropertiesForSale.aspx to learn more!