Archive for October, 2015

Converting a School to Apartments Euro Style

Here’s some Friday fun featuring pictures of a project in Amsterdam that converted a school into apartments.

 

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October 30, 2015 at 2:21 pm 1 comment

Two Greensboro Properties Sold for $11.3 Million

According to this article in the Triad Business Journal, Atlanta-based St. Clair Holdings has acquired two apartment communities near UNCG:

St. Clair Holdings acquired The Park at Greensboro at 2119 Spring Garden St. from 2119 Greensboro LLC for nearly $6.5 million and The Collegiate Courtyard at 1000 Bitting St. from Collegiate Greensboro LLC for $4.8 million…

Both The Park and Collegiate Courtyard, located within a stone’s throw of one another, are four-building, 48-unit communities.

If you do the math it looks like The Park at Greensboro sold for $135,000/unit and The Collegiate Courtyard sold for $100,000/unit.

October 29, 2015 at 8:47 pm 1 comment

AANC Introduces Will Brownlee as New Executive Director

At the end of 2015 Ken Szymanski will step back from his role as Executive Director of the Apartment Association of North Carolina (AANC), after serving as the chief executive of both the AANC and the Greater Charlotte Apartment Association (GCAA) concurrently for the last 28 years. He will continue as the Executive Director of GCAA after 2015, but AANC needed to find a new chief executive as of January 1, 2016.

So it was with great excitement last night at the PTAA trade show that Jody Longwill, President of the AANC, announced that Will Brownlee – who is familiar to so many apartment professionals in North Carolina through his legal work on behalf of the industry – will be the organization’s Executive Director starting January 1.

Here’s a video of the announcement last night. Unfortunately due to my fat thumbs I missed the early part of the announcement during which Jody lauded Ken’s incredible work on behalf of AANC for the last 28 years, but please take my word that it was a worthy tribute for a great guy. Here’s the announcement.

Here’s a press release from AANC:

For Immediate Release                                                                                                                 October 28, 2015

Apartment Association of N.C. names new Executive Director

The Apartment Association of North Carolina (“AANC”) is a trade association of multi-family rental housing developers, owners, managers, and suppliers.  It is affiliated with both the National Apartment Association and seven (7) local Apartment Associations throughout North Carolina.  AANC is pleased to announce its selection of Will Brownlee as its new Executive Director and General Counsel effective January 1, 2016.  “We are extremely pleased that Will will become AANC’s executive leader”, said its Board President Jody Longwill, of Greensboro-based Burkely Communities. “The Board, in making this selection, has expanded the Association’s commitment to its work, as the Executive Director position becomes full-time.  For the past 29 years, Ken Szymanski has served the AANC with distinction as its part-time Executive Director.  Ken will continue to serve in his role as Executive Director of the Greater Charlotte Apartment Association”.  

“Will brings a wealth of experience, energy, and commitment to the AANC’s work.  We look forward to Will’s joining and working with AANC and its associates to advocate for legislation that encourages affordable housing, quality construction and professional  management.”

Will Brownlee is an attorney licensed in North Carolina and South Carolina and is the founder of Brownlee Law Firm, PLLC and co-founder of Loebsack & Brownlee, PLLC.  He has served the apartment industry for the last 18 years, including serving on the AANC Board of Directors and as author of the AANC Lease and Legal Handbook.  He holds degrees from The Citadel and the N.C. Central University School of Law.

“AANC and its affiliate members have a rich and accomplished history of advocacy for the N.C. apartment industry, particularly through the tireless efforts of its Board of Directors, its volunteer members, and the consistent leadership of Ken Szymanski over the past 30 years,” said Mr. Brownlee.  “I am proud to be part of such an organization and look forward to the opportunity to work with the AANC Board of Directors and the diverse affiliate and volunteer members of AANC in continuing their advocacy for the apartment industry and finding new ways to serve the AANC membership.”

For further information: Ken Szymanski, (704) 334-9511 x- 108

October 28, 2015 at 1:29 pm 1 comment

Another Massive Apartment Deal

According to this article in the Wall Street Journal, Sam Zell’s Equity Residential has sold a 23,000-unit portfolio to Starwood Capital Group for $5.4 billion. From the article:

This deal is Mr. Zell’s biggest since 2012. Back then, Equity Residential was a buyer. The firm teamed with AvalonBay Communities to purchase apartment giant Archstone for $6.5 billion, not including about $9.5 billion in debt.

But Equity Residential has become “less aggressive as buyers of assets” in recent years, Mr. Zell said in an interview late Friday. Instead, it is getting out of suburban markets and into downtown urban centers, where young people are moving and where it is more difficult to build, he said.

Most of the 23,300 apartment units in the deal, roughly a quarter of Equity Residential’s total, are low-rise and mid-rise units in suburban markets in and around southern Florida, Denver, Seattle, Washington, D.C., and Southern California. Analysts expect a significant amount of new supply to be concentrated in those markets in coming years.

“There’s an awful lot of apartments under construction,” Mr. Zell said, “and the majority of them are garden apartments in suburban areas.”

Meanwhile, on the other side of the deal sits Starwood, which is betting big on the apartment market. In the last year it has purchased or put under contract 67,800 units. Why? Here’s the money quote from the firm’s CEO:

“This is the healthiest U.S. apartment market in my lifetime,” Mr. Sternlicht said in an interview Friday. “We don’t see that trend reversing.”

 

October 26, 2015 at 8:55 pm 1 comment

Triad Apartment Market Still Rockin’ & Rollin’

If you’re looking for bad news in the Triad apartment market then you’re going to have to wait a while. Real Data’s latest report, out this week, shows that things are still very good for multifamily providers here:

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.

If you’d like to purchase a full copy of the report you can do so at Real Data’s site.

October 23, 2015 at 7:21 pm 1 comment

Package-gate

A front page story in the 10/21/15 issue of the Wall Street Journal highlights the increasing challenge that property managers face in handling package deliveries for their residents:

The biggest landlords in the U.S. are being crushed under a mountain of packages, leading one large apartment operator to stop accepting deliveries and others to experiment with ways to minimize the clutter.

The moves are at the center of two colliding trends: an increase in apartment living and a surge in online shopping. The result is a rising tide of packages with no good place to go…

Camden Property Trust, the 14th-largest U.S. apartment operator by number of units, stopped accepting parcels at all of its 169 properties nationwide this year. Executives said the Houston-based landlord, which has roughly 59,000 units in 10 states and the District of Columbia, had received almost a million packages in 2014, and the rate was increasing by 50% a year.

Each package results in about 10 minutes of lost productivity, Camden executives estimated. At a rate of $20 an hour for employee wages, that amounts to about $3.3 million a year, they said.

“Ultimately, this was going to eat our lunch,” said Keith Oden,president of Camden. He refers to the situation as “package-gate.”

Camden’s approach to the issue of package handling is probably the most extreme, but others are sure to follow if they don’t experience too much of a backlash.

We’d love to hear from our members about this issue. Are you dealing with an increasing number of package deliveries and, if so, how is it impacting your operation? How do you handle package deliveries on your properties?

October 21, 2015 at 3:01 pm 1 comment

Lincoln Green Sells for $44.1 Million

Bell Partners recently sold Lincoln Green for $44.1 million but will continue managing the property. From an article in the Triad Business Journal:

A Texas-based firm has purchased one of Greensboro’s largest apartment complexes for $44.1 million.

Lincoln Green, a 616-unit complex located at 2205 New Garden Road, was purchased Thursday by Elite Street Capital, a real estate investment firm located in Houston and Tel Aviv, Israel…

“This disposition is another example of how Bell is rotating out of older assets in smaller markets and targeting newer assets in larger markets,” said Bell Partners spokeswoman Laurenn Wolpoff.

Last month, Bell purchased a 164-unit complex in Marlborough, a suburb of Boston, for an undisclosed price, bringing the total number of units it owns and manages in the Greater Boston suburbs to 844.

October 12, 2015 at 8:42 pm 1 comment

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