CHARLOTTE: Multifamily Mojo Still Working
Multifamily in Charlotte and the Carolinas shows no signs of slowing, with both investors and lenders predicting upside for years to come. (We believe the children and Charlotte are our future.) Demand for multifamily loans in the Carolinas continues to be strong in all sectors, as job growth improves and population growth expands, Grandbridge Real Estate Capital SVP Michael Ortlip tells us. That doesn’t mean lenders have lost their standards, though, and they “may be more circumspect” this year about certain submarkets, he tells us. Grandbridge just closed a $33M fixed-rate first mortgage for The Beach Co’s 325-unit Boulevard Apartments (right picture) in Mount Pleasant, SC.
On the investment side, buyers from around the country are optimistic about the Charlotte area with its continued demand growth and low apartment supply, Legacy Partners Residential senior managing director Timothy O’Brien tells us. Fueled by growth in banking and energy, Charlotte is projected to add 25,000 jobs this year, he says, citing ISI Group’s February 2014 report. Recently, California-based KBS Legacy Partners Apartment REIT paid $28M for the 240-unit Legacy Grand at Concord in Concord (one of the area’s hot spots), which is 91% occupied. The REIT also owns the 301-unit Wesley Village in Charlotte.