Posts filed under ‘PTAA Members in the News’
The latest issue of Triad Business Journal has an interview with Hawthorne Residential Partners’ chief investment officer, and PTAA board member, Phil Payonk about how Hawthorne has grown to manage 17,555 units in 76 properties since its founding in 2009. From the interview:
What is the appeal of apartments?
The short-term and long-term fundamentals for apartments look good — there’s some construction coming online, and demographic trends in the U.S. show a tendency to rent for longer as you come out of school. You even see an older generation beginning to downsize and look to renting rather than owning a home…
What is Hawthorne’s core business?
Finding stabilized apartment properties that aren’t performing to their fullest potential. We handle the overall development of a site and the property, but we utilize a general contractor to handle the construction. We’ve partnered with several different builders; we like to utilize the small, local guys to kind of help keep costs down. Now, of our 17,555 units, Hawthorne and its partners have an ownership stake in about 45 percent of those. The balance is owned by a third party but managed by Hawthorne…
The Triad has seen a lot of apartments come online very quickly. Do you think it’s approaching over-built status?
We’re seeing in North Carolina markets in particular that a lot of the supply is being absorbed. As long as we see that at a measured pace, we’re going to hopefully not see too many problems. Even though there’s been a lot of product coming online, it’s been pretty hard to get a loan. The banks have the appetite, but there’s just a lot that has to go into it, from documentation and planning and identifying the site and getting everything together to getting a commitment and a building.
Although many communities have been doing the “doggie doo DNA” thing for a while, it’s still news to the general populace. That helps explain the interest in Blue Ridge’s adoption of the practice at one if its Wilmington communities:
A Wilmington apartment complex will soon be running DNA tests on dog poop to identify owners who don’t clean up after their pooches do their business.
The StarNews of Wilmington reports The Reserve at Forest Hills will ask the complex’s 100 dog owners to have their pets swabbed for a DNA sample.
Then, if poop found in the complex matches a pet, the owner will be fined and also will have to pay for the DNA testing which can cost up to $50.
In every issue of the Triad Business Journal there’s a Q&A with a local business executive and a couple of weeks ago they featured PTAA member Chris Parr:
You have two apartment projects planned in Kernersville right across the street from one another. Why the proximity? Because somebody else would buy it. They would see what I saw in it, and just know that it was a great location and has the lowest vacancy rate in the Triad. So I outsmarted them; I bought both of them. That way I didn’t have anybody messing with me…
Why not contract with another company for property management? I don’t think I’d be able to deal with an apartment management company managing my stuff, never knowing who’s going to be in the office or in control of expenses. After I built my first complex, I threw myself into apartment management quickly, which was definitely a learning curve. Property management, for the most part, is a good, stable business, and that was one of the key reasons I got into it. I wanted residual income.
What kind of lessons were there on that learning curve? There have been times when I shook my head thinking, ‘this is crazy.’ When the fire alarm rings in the middle of night, those calls will come to me. I just love it because it’s chaotic, and it’s unique; you meet so many different people. It’s really been enlightening for me, and it’s opened my eyes to a lot of different types of people and how people live and act…
Do you think the Triad’s apartment market is approaching being overbuilt? We’re possibly getting near the peak. But each submarket is different. Kernersville needs apartments; Clemmons is a prime location. The apartment market is always going to be there. We’re actually seeing a lot of older people coming to rent now; we’re seeing this huge shift in people who are preferring to rent rather than own.
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.
Greensboro-based Bell Partners has hired two operations executives:
Recent hire Gwyneth Coté, currently Bell’s senior vice president of property operations, in January will assume the role of chief operating officer. Current COORobert Slater will become chief administrative officer.
Janice Miner has been hired as senior vice president of operations, and she will also manage Bell Fund and Legacy assets. Current Senior Vice President of Operations Kristin Stanton will continue to manage Bell Joint Venture and Fee-Managed assets. Both will report to Coté.
The changes were prompted as Bell Partners moves into the second phase of its strategic plan, which is designed to shift the company’s focus solely on apartments and become “one of the country’s leading apartment companies,” said Jon Bell, president of Bell Partners.
PTAA member Chris Parr recently announced a new 312-unit development in Clemmons that will be part of the Village Point multi-use development off of Lewisville-Clemmons Road:
Chris Parr said Friday that grading will begin Monday on a 22-acre parcel of the Village Point site that borders Interstate 40, Lewisville-Clemmons Road and Clemmons Town Center.
Parr bought the property for $2.1 million in February. He plans to build 312 apartments at a total cost of $22.5 million. His goal is having the apartments available for rent within a year.
It would be the fourth developmental piece of the overall Village Point campus that includes Clemmons Medical Center, Morgan Elementary School and the first phase of Clemmons Town Center anchored by Panera Bread and a Capital Bank branch. There also are greenways and a lake on the campus…
Parr said the Clemmons apartments will range from 800 to 1,300 square feet, with monthly rents ranging from $769 to $1,150.
The Board of Directors of the Piedmont Triad Apartment Association is pleased to present the following members of its inaugural Leadership Lyceum Program class:
- Michelle Chesson, Community Manager – Hodgins Retreat & Marketing Director – Burkley Communities
- Nikol Edwards, VP Marketing & Promotions – Blue Ridge Companies
- Shana Golladay, Community Manager – Hawthorne Residential Partners, Stonesthrow Apartments
- Leigh Hayworth, Corporate Account Manager – Central Wholesalers
- Ben Kramer, Business Development Representative – Disaster One
- Andra Padgett, Market Sales Manager – Apartment Guide
- Linda Wendelken, Owner/President – Corporate Accommodations/Executive Furniture Leasing
The Leadership Lyceum Program is designed to groom future leaders of PTAA. The purpose of the program is to get people involved in, and to impart knowledge of, the PTAA and the multifamily industry. Requirements for Program participants include:
Attendance at three half-day courses including an Introduction to PTAA, a session dedicated to learning about PTAA’s education offerings and a session devoted to learning about PTAA’s government affairs initiatives. Class members are also required to attend AANC’s Legislative Days in Raleigh in 2014 and are encouraged to volunteer 12-15 hours with a community-based nonprofit organization such as Second Harvest Food Bank.
We at PTAA are very excited to kick off this program and look forward to welcoming a second Lyceum class in 2014.
The Triad Business Journal has a nice feature article about the growing number of historic redevelopment projects in the Triad, and the potential impact if North Carolina’s tax credit program sunsets:
Developers in the 12-county Triad have worked on a total of 235 projects using state historic tax credits since the program began in 1998. That represents $32,285,317 in eligible investment, according to a Triad Business Journal analysis of research from the N.C. State Historic Preservation Office.
With 165 projects representing $24,521,723 in eligible investment, Forsyth and Guilford counties combined represented more than half of those Triad projects…
None of those projects would have been possible without the use of state and federal historic tax credits, those developers say. But the state historic tax credits are due to sunset next year.
The state credits are on a cyclical schedule, with renewal required every couple of years. The credits have been renewed for a new cycle every time since their introduction in 1998…
Barry Siegal, co-developer of the Southeastern Building at 102 N. Elm St. in the heart of downtown Greensboro, said there’s no question the project would not happen without state and federal historic tax credits.
The building, which is nine stories tall and spans 100,000 square feet, has qualified for about $4 million in state and federal historic tax credits, said Siegal, who is developing the building with Willard Tucker. Demolition started earlier this spring, and construction is anticipated to take about a year to convert the building into retail, office and apartments.
From the Triad Business Journal:
Utah Holdings Group LLC has purchased the Hunters Glen Apartments in Greensboro for $7.1 million.
The 260-unit Class C apartments are located at 3128 Utah Place, northeast of the intersection of U.S. 29/North O’Henry Boulevard and East Cone Boulevard.