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raleigh nc

Southeast Multifamily Outlook Holding Strong

Several Southeast markets continue to top national lists for job and population growth, causing investors to pour capital into the region’s multifamily sector as they chase a new wave of demand that’s driving the current market expansion.

ARA and Berkeley Point Capital’s 2Q 2018 United States Multihousing Market Report includes several Southeast hubs among its top 25 for sales volume in the past 12 months: Atlanta ($7.3 billion); Orlando, Fla., ($5.6 billion); South Florida ($4.5 billion); and Charlotte/Raleigh–Durham, N.C., ($4.2 billion).

The Southeast also notched the largest per-unit pricing gains of any other region, at 8.6% year over year. Additionally, its key metros benefit from migration fueled by high income-tax–rate states, including New York, New Jersey, Connecticut, and California.

Full article HERE

Source: Multifamily Executive

The U.S. Apartment Sector Would Continue to Remain Strong Even in a Recession

Even if there is an economic downturn in the near future, the apartment sector is likely to hold up, according to industry experts.

“Apartments are still resilient against a possible recession,” says Andrew Rybczynski, senior consultant for CoStar Group Portfolio Strategy.

Though the high end of the market may be feeling the strain of overbuilding, the sector overall is benefitting from long-term trends that should continue to fill apartment units for the foreseeable future.

“In 2005 and 2006, we knew we were living on borrowed time. We knew the fundamentals didn’t makes sense,” says John Sebree, director of the national multi housing group with real estate services firm Marcus & Millichap. “Today, the apartment industry fundamentals are so strong, I don’t think a potential recession would affect us that much.”

Full article HERE

Source: National Real Estate Investor

Blue Heron Closes Construction Loan for NC Property

Raleigh, N.C.-based private equity real estate investment and development firm Blue Heron Asset Management has closed a construction loan for Foster on the Park, a boutique mixed-use project to be developed in Durham, N.C. The loan was closed with First National Bank, the largest subsidiary of FNB Corporation.

Adjacent to Durham’s Central Park, Foster on the Park will be a 164-unit apartment community featuring ground-floor retail and restaurant space overlooking the park. The site is adjacent to the 1.7-million-square-foot Durham Innovation District. It is also situated steps from the Historic Durham Athletic Park, for decades the home of Minor League Baseball’s Durham Bulls and the filming location for the movie Bull Durham.

The existing building on site is functionally obsolete and underutilized and we didn’t see a whole lot of minuses pertaining to the redevelopment,” Blue Heron Asset Management partner Benjamin Grinnell told MHN.

The original plan was for an urban condominium project . . . While we believed in the urban living, for-sale thesis in Durham, there were some challenges in terms of certain pre-sale requirements, especially for a larger-scale condo project in the Durham market. Once we decided to switch o a mixed use—apartments and ground floor retail—project, the financing markets were much more receptive.”

Grinnell added that the entire Blue Heron Asset Management team worked diligently over several years to collaborate with the City of Durham, Durham Central Park, Downtown Durham Inc. and other local stakeholders.

Our focus has been on thoughtful place-making and trying to create a vibrant community with great walkability and access to downtown Durham’s growing job base, renowned dining, and its many lifestyle, recreation and entertainment amenities,” Grinnell reported. “Foster on the Park represents the types of infill re-development opportunities that we hope to continue to pursue and invest in.”

THRIVING DESTINATION

Added Chris Moore, president of FNB’s Raleigh-Durham Region: “We are pleased to provide the financing for Foster on the Park under the experienced leadership of Lewis Bass, our regional manager of investment real estate banking.

Contributing to our communities is part of our mission at FNB, and it is a privilege to partner in a project that builds on downtown Durham’s momentum as a thriving destination for residents, businesses and visitors alike.”

Financing was arranged by the HFF team of Roger Edwards, Justin Good and Henry Sisson. “Blue Heron secured one of the best sites in downtown Durham and [has] created an amazing project that we expect will be hugely successful,” Edwards said

We are excited to be a part of the team and contribute to making this great project a reality.”

Full article HERE

Source: Multi-housing News