Archive for January, 2015

Guilford Leaders Explore Joint Economic Development Structure

Leaders from the cities of Greensboro and High Point, along with leaders from Guilford County, met on January 27 with representatives of local businesses – the development community in particular – to discuss how they might build a joint economic development structure. From the Triad Business Journal story on the meeting:

Officials from Greensboro, High Point and Guilford County continued conversations this week about creating an alternative approach to economic development efforts within the county.

While such a structure has yet to be defined and no decisions have been made, Greensboro Mayor Nancy Vaughan said there was a “very productive meeting” held Tuesday with members of the development community and other stakeholders to get their input and feedback on how a new economic development structure could be defined…

The talks are aimed at finding a way to better align various economic development efforts within Guilford County and make them more unified and effective.

There is some question how existing non-public economic development groups might fit into the mix:

But how exactly existing economic development groups like the Greensboro Partnership, which is narrowing its searchfor a new CEO, could potentially be part of the proposed joint effort is yet to be determined…

While he (former Greensboro Mayor Robbie Perkins) thinks that bringing the governments in Guilford County together is a good thing, he would caution against a potential new entity that has more public sector control than private. He said economic development is a team sport and the team has to include both the private sector and the public sector. “You have to leverage off those private-sector relationships to make it work,” he said.

He added that the area is already home to private-sector driven economic development groups in High Point and Greensboro that should be continually involved.

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January 31, 2015 at 9:35 pm Leave a comment

Marcus & Millichap in the Triad

From the Triad Business Journal:

Calabasas, Calif.-based commercial real estate brokerage firm Marcus & Millichap recently opened an office in Greensboro and hired two local industry veterans —Richard Montana and Hal Kern — to increase sales of apartment projects across the Carolinas.

M&M (NYSE: MMI) recruited Montana and Kern, who previously worked together within the multihousing group of CB Richard Ellis‘ Triad office, to help the company capitalize on multifamily investment sales at a time when interest rates remain historically low, apartment demand remains hot, and lenders are competing for deals, M&M officials said…

Raj M. Ravi, regional manager for M&M’s North Carolina, South Carolina and southern Virginia offices, said the two will focus on investment sales for high net-worth private investor clients that typically spend between $8 million and $30 million on assets. The team also will focus on building a base of private investor clients that spend between $1 million and $8 million, he said.

January 30, 2015 at 9:05 pm Leave a comment

Looking for a Solid B

Tru-America Multifamily, founded 18 months ago, is strategically targeting “B” properties in the western part of the US in hopes of developing a portfolio that can generate higher than average rent gains in coming years:

The company says its strategy is to buy lower-grade buildings, renovate the units and “reposition” the properties as slightly more modern and higher-end in hopes of charging higher rents. The company estimates it will be able to raise rents an average of 6.4% a year, about 1.4 percentage points higher than it expects average rents to rise in Southern California submarkets…

Like most of its previous acquisitions, TruAmerica’s newest assets in Southern California were built in the 1980s. The 2,669 units in the region are spread out in lower middle-class neighborhoods, such as San Pedro and Santa Clarita in Los Angeles County, El Cajon in San Diego and Ontario and Riverside in the Inland Empire.

TruAmerica says it plans to invest approximately $40 million in upgrades, including the installation of new cabinets, new floors and, in some locations, modern fitness centers and common areas. Those improvements will “make it a more Class-A feel,” says TruAmerica Chief Executive Robert Hart, who holds a 20% stake in the company.

January 28, 2015 at 4:45 pm Leave a comment

Why Millennials Rent

From the NAA:

Millennial Branding and EliteDaily, the latter a Millennial-centric publication, recently released results from a 2014 survey of 1,300 millennials regarding, among other things, their consumer behavior. Not surprising, the results noted that nearly 60 percent of Millennials polled — would rather rent a home than buy one.  

Personal finance may be a factor, with many Millennials carrying the burden of student loans and a recession-laden job market. Another factor could be Millennials’ tendency to marry and have children later in life.

January 27, 2015 at 4:29 pm Leave a comment

Axiometrics Report: 2014 Was Banner Year for Apartments in US

Axiometrics is reporting that, nationally, 2014 ended strong for the apartment industry:

From Axiometrics Jan ’15 Newsletter

National annual effective rent growth in December 2014 reached 4.9%, the strongest monthly rate of 2014 (and even 2013 and 2012). The last time rent growth was this high was the 5.0% of August 2011. The rate has increased for 10 straight months and was higher than the previous month’s level for 11 of 12 months during 2014.

The December 2014 rate was 219 basis points (bps) higher than the 2.7% of December 2013. It was also a 21-bps increase from November’s 4.7%, which is interesting because the end of the year is usually when rents begin to decelerate because of seasonality. We just didn’t see that happen this year. 

And the national occupancy rate was strong as well:

Occupancy was 94.6% in December, compared with 94.8% in November and 94.2% in December 2013. Although occupancy is down slightly from the 95% seen in mid-2014, it did not drop below 94% during 2014, and has not gone below that mark since March 2012. Also, the December 2014 occupancy rate is the highest reported in any December since Axiometrics began tracking monthly in 2008.

The ability of existing units to maintain occupancy rates at this level, even with the amount of new supply, definitely demonstrates how much demand there is for apartments. Developers and landlords can thank expanding job growth for this trend. 

 

January 16, 2015 at 8:06 pm Leave a comment

Burkely Communities Sells Highland Crossing

The Winston-Salem Journal carried the story of Burkely Communities sold its Highland Crossing student community (Boone) to North State Capital Partners of Charlotte:

Highland Crossing opened in 2013 and consists of 204 beds. It offers a study lounge and fitness center, as well as outdoor amenities that include a pavilion with an outdoor fireplace, grills and sundeck, mountain bike rentals, a nature trail and a hammock garden.

January 16, 2015 at 4:52 pm Leave a comment

Apartments Could Be Part of Kisco Senior Living’s Project in Sedgefield

The Triad Business Journal is reporting that Carlsbad, CA-based Kisco Senior Living is planning to redevelop the old Jefferson-Pilot Campus property in Sedgefield, and their plans might include apartments:

Kisco has already filed a petition to annex the property into the city of Greensboro and will file for rezoning soon.

Mitchell K. Brown, chief development officer for Kisco, said the “Pilot at Sedgfield” project could include uses ranging from townhomes and apartments to a senior living community, hotels and retail that could include a boutique grocer (think The Fresh Market or Trader Joe’s). The project would be a collaboration among several developers, including Kisco as master developer, and take five years or so to build out.

January 16, 2015 at 4:37 pm Leave a comment

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