News
MULTIFAMILY IS HOT
September 20, 2012
| Don't let the office, retail, or industrial market fool you. Atlanta's multifamily market has grown hot. For investors and developers, the city with few barriers to entry has become ?a little bit of a darling,? we learned from panelists during yesterday's third annualBisnowAtlanta Multifamily Summit at the Cobb Energy Performing Arts Centre. | ||
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| Worthing Cos president Darin Collier says Atlanta has become a ?dynamic? market. ?In 2010, Atlanta was a little bit of a stepchild,? he says. But roll foward 20 months, and Atlanta has become the darling. (Why didn't we use the time machine back then? Oh, right, nobody wanted to skip a season of Breaking Bad.) | ||
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| Perennial Properties' Aaron Goldman (with The Reznick Group's Jonathan Bartlett, our moderator) recounts how his company delivered two apartment projects in 2009 at the depth of the recession: ?I had every reason to believe I should start looking for a new career.? Then by March of 2010, young people began to rent and his rent rolls jumped from $325k to $375k/month, as would-be condo and townhouse buyers flooded in. But Aaron cautions that capital coming in to buy today may have missed the boat. ?Whenever you see a lot of news stories… about this wonderful apartment market, that means the smart money is making moves? to exit the market. ?There's much more new capital coming to our field again. It's a little late.? | ||
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| Don't expect your rents to be any better if your apartment complex has LEED certification. Crescent Resources Benjamin Collins says LEED does little for the bottom line but does make the difference in marketing toward potential renters. ?We do believe LEED certification is important,? he says, but especially on the sales side, where he sees buyers paying a premium for such projects. For instance, Benjamin says Crescent just sold its Circle South apartment community in Charlotte for $206k/unit to Post Properties—a huge price for that market, achieved partly because it's LEED certified. Darin agreed with Benjamin but echoes that achieving certification is also helpful when seeking financing. ?LEED is a brand... but that's all it is,? he says. | ||
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| Mid-America Apartment Communities SVP Diane Chastain says her biggest concern is the one thing most are cheering for: a housing recovery that could ultimately pull renters away and into ownership. And Diane is seeing those signs. She says bankers and builders are ?getting anxious? at the first signs of improvement and are moving forward on new neighborhoods. To combat that, Diane says Mid-America keeps a stable of amenities on the properties. Benjamin also says the flagging economy can hurt new product, especially with a lack of job growth. | ||
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| Nobody likes being naked. Not even your building. Ask the signmakers at our sponsor DeNYSE, including Thesie Peacock and Corey Anderson. The company just completed signage work for Dinerstein Cos? 300-bed Sterling Fry Street student housing project. When it's done, it will feed into the University of North Texas. |
