2. 2 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
Dear TAA Bus Tour Participant,
Welcome to the Triangle Apartment Association’s 2015 Spring New
Apartment Construction Bus Tour! We have an afternoon packed full of
information and networking that we hope will be both educational and fun.
Today’s event features some of Durham’s newest and most innovative
apartment communities built to date. You will have the opportunity
to tour four of these communities on our tour route allowing each the
opportunity to showcase their unique product. We know you’ll be wowed
by the construction, features and amenities, and apartment interiors
each community offers to today’s renter.
Throughout the day you will hear from bus moderators who have a
wealth of knowledge and experience about the Triangle apartment
market. From market trends and conditions to economics and
demographics impacting our geographic region to multifamily new
construction and development trends to sales and finance… we’ve got it
all covered for you in one day.
We’d like to extend a special thank you to the Bus Tour Task Force for
their work planning today’s event; along with the event sponsors for
their support.
Finally, we’d like to thank you for being a part. We hope the time
you spend here today will be a beneficial networking opportunity
that provides valuable information you can apply and share with your
associates and your company.
Now sit back, relax and enjoy your ride as we hear and see how Durham
is ‘knocking it out of the park’ in the multifamily housing market.
Regards,
Barb O’Steen
Greystar
2015 TAA President
TABLE OF CONTENTS WELCOME
2
3
4
5
7
10
12
24
WELCOME LETTER
A THANK YOU
ITINERARY & BUS TOUR ROUTE
BUS TOUR NARRATORS
DEMOGRAPHICS / EMPLOYMENT
MARKET ANALYSIS
COMMUNITY PROFILES
APARTMENT SALES ANALYSIS
WELCOME & CONTENTS
3. 3 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURA THANK YOU
Bus Sponsors - 2015 Gold Level Visionary Partners
SPECIAL THANKS TO OUR SPONSORS, HOSTS, SPEAKERS, & NARRATORS
Host Communities
The Moore Building at West Village
Crescent Main Street
Heights at South LaSalle
300 Swift
Tour Narrators
Jeff Furman, Northwood Ravin
Jeff Glenn, CBRE
Brian Reece, Karnes
Julie Spencer, HHHunt
Reception Sponsor
Parking Sponsor
Speakers
Geoff Durham, Downtown Durham, Inc.
Courtney Duffy Coyle, Blackwell Street Management Company
Blackwell Street Management Company
4. 4 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURITINERARY & BUS TOUR ROUTE
11:30 AM TO 12:00 PM
12:00 PM TO 1:15 PM
1:30 PM
4:45 PM TO 6:30 PM
REGISTRATION
LUNCH AT BAY 7
BUSES DEPART
RECEPTION AT BASAN
1 Moore Building at
West Village
Stop
2 Crescent Main Street
Stop
Heights at South LaSalle
Stop
3
300 Swift
Stop
4
2015 Bus Tour Guide
map prepared by:
1
2
3
4
5. 5 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURBUS TOUR NARRATORS
Julie Spencer has been involved with the multifamily industry since 1996. Over the course of
her career she has gained experience in all aspects of apartment operations, development and
financing.
Today as Director of Business Development for HHHunt, she is responsible for identifying markets
and acquiring land for the development of market rate apartment and senior living communities throughout the Mid-
Atlantic and Southeast. She is also responsible for evaluating new investments to ensure they will meet return expectations,
and participates in the pursuit of equity and debt, including HUD insured financing.
She holds a Bachelor of Arts in Communication Studies from the University of North Carolina at Chapel Hill, has served on
the TAA Board of Directors, and participated with several committees for the Triangle Apartment Association.
JULIE SPENCER
Director of Business Development
HHHunt Properties
Brian Reece has been involved in the commercial real estate industry for over 20 years. In
addition to his research and analysis work with Karnes Research Company, Mr. Reece has been on
the opposite side of the industry while working with commercial real estate developers.
Mr. Reece joined Karnes Research in 1996 as the Director of Research Services. Mr. Reece has been in charge of the
research team tracking the Charlotte, Triangle, Triad, and Asheville commercial markets covering office, industrial and retail
properties, as well as the Raleigh-Durham apartment market. Mr. Reece has also consulted public and private sector clients
on issues such as economic development, housing, retail demand, office and industrial demand, apartment feasibility, and
demographics.
Mr. Reece is the Co-Founder of the Downtown Raleigh Living Advocates, a civic organization with over 1,000 members,
and served as its president between 2009 and 2013. Mr. Reece has also served as a committee member for the Research
Triangle Chapter of NAIOP. Mr. Reece served as the Chairman of the Raleigh City Museum between 2008-2009. Mr. Reece
has also served as a Champion Judge for the Triangle Commercial Real Estate Women (TCREW) since 2006. Mr. Reece is
a member of the Triangle Apartment Association (TAA) and has been a speaker for Triangle J Council of Governments, the
Institute of Real Estate Management (IREM), and the Triangle Apartment Association Economic Forum.
BRIAN REECE
Regional Director of Client Services / Mid-Atlantic
Xceligent / KARNES
6. 6 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURBUS TOUR NARRATORS
As head of the Raleigh regional office and Vice President of Development, Jeff is responsible for
the development, design, construction and stabilization of Northwood Ravin’s multifamily and
mixed-use developments. Working closely with the development, general contracting and property
management teams, he has been a key contributor to the successful development of over 4,400
residential units and 800,000 sq. ft. of commercial.
Jeff is a registered Professional Engineer, licensed Real Estate Broker in Charge and LEED accredited professional.
Affiliations include ULI, GBI, USGBC and the Triangle Community Coalition. He holds a BS in Civil Engineering from NC
State and a MS in Engineering from the University of Texas at Austin.
Based in North Carolina with offices in Charlotte, Raleigh, and Tampa, Fla., Northwood Ravin has eight projects under
construction totaling $300 Million in Tampa, Atlanta, Charlotte and Raleigh with three more projects planned in Dallas,
Nashville, Tenn., and Chapel Hill, N.C.
JEFF FURMAN
Vice President, Development / Director of Raleigh Operations
Northwood Ravin
Jeff is a commercial real estate broker with twenty years of experience advising private, public
and institutional investors in the disposition, acquisition and structuring of over $2 billion of large
scale investment property. Jeff’s areas of expertise include multi-housing sales, site acquisition
and the Raleigh-Durham marketplace.
Jeff joined one of Raleigh’s largest full-service commercial real estate firms upon graduation from East Carolina with a BS
in Urban and Regional Planning in 1992 as an associate responsible for leasing and sales in his hometown of Durham, NC.
In 1994, Jeff made the transition to full-time investment brokerage upon the completion of several notable multi-housing
sales throughout the Southeast on behalf of institutional clients. Jeff quickly gained recognition as one of the Carolinas’ top
investment specialists in the mid-1990’s, adding office and industrial product to his resume.
In 1998, Property Resources was purchased by CB Commercial, later to become CBRE through a series of global
acquisitions. In 2009, in an effort to better serve institutional and private clients in central and eastern North Carolina, Jeff
was integrated into CBRE’s Southeast Multi-Housing Group. In this capacity, Jeff and his team have represented numerous
private developers, investors, and institutional owners in the purchase and sale of over $1 billion of existing property,
presales, and ground-up development in the Raleigh-Durham market.
JEFF GLENN
Executive Vice President, Investment Properties
CBRE
7. 7 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
The Triangle region is known for a high quality of life, its
access to a highly educated workforce, and a healthy and
diverse economy. Durham County plays a vital role in the
region’s economy with its diverse employment base and
focus on fostering entrepreneurism and innovation. Every
day, a convergence of academia and product development
in the area of life sciences, biotechnology, and medicine, to
name a few, produce new technologies and therapies that
can and will change our way of life. The groundbreaking
discoveries occurring in Durham positively impact people
around the globe, expanding the story of Durham far beyond
its county borders.
Durham is much more than a thriving hub of innovation.
The revival of Downtown Durham, beginning with the
redevelopment of the American Tobacco Campus, has
attracted a confluence of cultural influences, which have
further defined Durham as a diverse and vibrant core for
entertainment, with inspired food offerings that will satisfy
the most persnickety palate.
The proof of Durham’s significance is also evidenced
by numbers. Year over year, the Durham-Chapel Hill
Metropolitan Statistical Area (MSA) saw a gain in nonfarm
payrolls (private sector employment) of 6,500 or a 2.3%
increase in private sector employment. The current
unemployment rate in the Durham-Chapel Hill MSA is a low
4.6%. The current estimated median income in Durham
County is a respectable $51, 276, albeit the lowest in the
three county area around Research Triangle Park, behind
Orange at $56,243 and Wake at $66,465. Between 2000
and 2010 the households in the Raleigh-Durham Combined
Statistical Area (CSA) grew by just under 160,000 and
Durham generated 21.3% of the overall growth. There are an
estimated 690,832 households in the Raleigh-Durham CSA
and it is projected to increase by 53,083 or 7.7% between
2015 and 2020. The Durham-Chapel Hill MSA alone is
projected to increase by 15,252 households or by 7%.
Sources: Sources: Bureau of Labor Statistics; Demographic
data provided by Nielsen Consumer Activation.
DEMOGRAPHICS / EMPLOYMENT
Durham County Major Employers Employees
Duke University & Health System 34,863
International Business Machines (IBM) 10,000
Durham Public Schools 4,600
GlaxoSmithKline 3,700
Blue Cross & Blue Shield of North Carolina 3,200
Durham City Government 2,437
Fidelity Investments 2,400
Quintiles Transnational Corp. 2,300
Research Triangle Institute (RTI) 2,300
Veterans Affairs (VA) Medical Center 2,162
Cree, Inc. 2,125
AW North Carolina, Inc. 2,000
U.S. Environmental Protection Agency 1,950
Durham County Government 1,720
National Institute of Environmental Health Sciences 1,372
North Carolina Central University 1,248
Walmart 1,150
Merck & Co., Inc 1,100
Lab Corp 1,000
BASF Corporation Agricultural Products Group 950
National Institutes of Health 860
Source: Durham Chamber (www.durhamchamber.org)
Durham-Chapel Hill MSA Unemployment Trends -
March Periods
7.3%
6.4%
5.2%
4.6%
2012 2013 2014 2015
8. 8 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
Year-Over-Year Change - Nonfarm Payroll
115,800
80,500
50,700
36,700
34,500
22,800
18,800
9,600
7,900
6,500
Dallas-Fort Worth-Arlington, TX
Atlanta-Sandy Springs-Marietta, GA
District of Columbia
Charlotte-Concord-Gastonia, NC-SC
Tampa-St. Petersburg-Clearwater, FL
Austin-Round Rock, TX
Raleigh, NC
Charleston-N Charleston, SC
Richmond, VA
Durham-Chapel Hill, NC
March 2015 Unemployment Rate
5.9%
5.4%
5.3%
5.3%
5.2%
4.7%
4.6%
4.5%
4.0%
3.3%
Atlanta-Sandy Springs-Marietta, GA
Charleston-N Charleston, SC
Tampa-St. Petersburg-Clearwater, FL
Charlotte-Concord-Gastonia, NC-SC
Richmond, VA
Washington-Arlington-Alexandria, DC
Durham-Chapel Hill, NC
Raleigh, NC
Dallas-Fort Worth-Arlington, TX
Austin-Round Rock, TX
Total Population
1,317,131 1,261,064
1,143,516 1,141,682
1,035,725 1,015,129 1,006,083 998,488
485,310
293,077
143,201
Hillsborough Orange (FL) Travis Fairfax Montgomery Mecklenburg Fulton Wake Greenville Durham Orange (NC)
The evolution of Durham is significant and will continue
to generate economic and real estate development
as the population grows. All of these factors will fuel
demand for the high end apartment development that is
occurring and create a more diverse apartment market as
the expansion phase of the apartment market continues
in Durham’s urban core.
A snapshot of employment indicators and demographic
trends for Durham County in the context of the Raleigh-
Durham Combined Statistical Area and the Durham-
Chapel MSA (Wake, Johnston and Franklin County), with
comparisons to selected Metropolitan Statistical Areas
are provided in the following pages.
Year-Over-Year Change in Nonfarm Payroll. The Raleigh-
Durham Combined Statistical Area experienced a
gain of 25,300 nonfarm payrolls between March
2014 and March 2015. The Durham-Chapel MSA
contributed 6,500 or 26% of the total payroll gains.
Nonfarm payroll represents private sector employment
and generally is a good indicator of real employment
growth. In addition, with an unemployment rate of
4.6%, the Durham-Chapel MSA and entire Raleigh-
Durham Metropolitan area has an unemployment rate
that ranks as one of the highest in the country, and
clearly the highest among major metropolitan areas in
the southeast.
Demographic Trends. With a total population just under
300,000, Durham County is small in size as compared
DEMOGRAPHICS / EMPLOYMENT
Source: Bureau of Labor Statistics
Source: Bureau of Labor Statistics
Data provided by Nielsen Consumer Activation
9. 9 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
Household Growth - Comparative Periods
384,174
278,804
189,905
178,596
141,957
124,139
59,617
52,034
33,775
422,649
Dallas-Fort Worth-Arlington, TX
Atlanta-Sandy Springs-Marietta, GA
Washington-Arlington-Alexandria, DC-VA-MD-
WV
Charlotte-Concord-Gastonia, NC-SC
Austin-Round Rock, TX
Tampa-St. Petersburg-Clearwater, FL
Raleigh, NC
Richmond, VA
Charleston-N Charleston, SC
Durham-Chapel Hill, NC
HHs 2015-20
HHs 2010-15
HHs 2000-10
2015 Estimated Median Household Income
$62,586
$59,762
$58,865
$58,706
$55,755
$52,846
$52,243
$51,413
$45,791
$92,441Washington-Arlington-Alexandria, DC
Raleigh, NC
Richmond, VA
Dallas-Fort Worth-Arlington, TX
Austin-Round Rock, TX
Atlanta-Sandy Springs-Marietta, GA
Charlotte-Concord-Gastonia, NC
Durham-Chapel Hill , NC
Charleston-N Charleston, SC
Tampa-St. Petersburg-Clearwater, FL
Total Population 21-34, % of Population 21-34
31,997
66,616
190,823
22%23%
18%
19%
22%
21%
17%
18%
25%
22%
20%
0
50,000
100,000
150,000
200,000
250,000
300,000
Hillsborough Orange (FL) Travis Fairfax Montgomery Mecklenburg Fulton Wake Greenville Durham Orange (NC)
0%
5%
10%
15%
20%
25%
30%Ages 21-34 Pop Ages 21-34 % of Total Pop
to major counties in other MSAs. Of the selected areas
shown, Hillsborough is the major County in the Tampa
MSA with the largest population. With just over 65,000
people between the ages of 21 and 34 (or those very
likely to rent), Durham County has a large share of the
population between the ages of 21 and 34, or those
very likely to rent, at 23%. Selected counties below are
in the Tampa, Orlando, Austin, Washington DC (Fairfax
VA and Montgomery MD), Atlanta, Charlotte, Raleigh-
Cary, Greenville-Spartanburg, and Durham-Chapel Hill
Metropolitan Areas (in order, as shown in the Total
Population chart).
Household Growth. The Durham-Chapel Hill
Metropolitan Statistical Area, increased by 33,775
households between 2000 and 2010 and an estimated
16,164 between 2010 and 2015 and is projected
to increase by just over 15,000 households between
2015 and 2020. Among the selected MSA’s, Durham
is a smaller area but it is only comprised of 4 counties
(Durham, Orange, Chatham, and Person Counties).
However, on a percentage basis, historical and
projected household growth rank high comparatively
with the other high growth metro areas.
Median Household Income. Durham County’s median
income is lower than that of either of the three primary
counties in the Combined MSA, but still respectable at
$51,276.
DEMOGRAPHICS / EMPLOYMENT
Data provided by Nielsen Consumer Activation
Data provided by Nielsen Consumer Activation
Data provided by Nielsen Consumer Activation
10. 10 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
Completions
Submarket Sept. '14 March '15 Last 6 Mos.* Last 6 Mos.* Last 12 Mos.** March '14 March '15
Cary/Morrisville/Apex 5.7% 4.8% 281 434 1,227 $997 $1,029
North 9.3% 7.0% 0 241 604 $891 $930
Northeast 7.4% 7.9% 288 213 651 $885 $917
Northwest 7.0% 7.5% 336 223 653 $902 $947
South 12.5% 10.5% 176 248 4 $833 $859
Southwest 8.5% 11.2% 715 355 738 $933 $1,030
Total 7.6% 7.5% 1,796 1,714 3,877 $923 $968
North 10.7% 12.2% 766 526 373 $902 $997
South 6.6% 6.5% 418 413 776 $891 $931
Total 8.1% 8.6% 1,184 939 1,149 $895 $955
Carrboro 11.5% 9.6% 0 74 -120 $765 $833
Chapel Hill 5.1% 6.7% 0 -81 -36 $1,002 $1,044
Hillsborough 2.4% 3.3% 0 -6 -4 $792 $833
Total 7.5% 7.6% 0 -13 -160 $892 $945
Triangle Total 7.7% 7.8% 2,980 2,640 4,866 $913 $963
* September 2014 to March 2015 **March 2014 to March 2015
Orange
Average Weighted Rents
DurhamWake
Vacancy Net Absorption
Triangle Apartment Vacancy Trends
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Triangle 6.0% 5.9% 5.5% 5.5% 5.9% 7.6% 7.7% 7.8%
Wake 5.7% 5.6% 5.0% 5.4% 6.5% 8.0% 7.6% 7.5%
Durham 6.4% 6.5% 6.5% 5.5% 4.7% 7.3% 8.1% 8.6%
Orange 6.7% 6.8% 5.8% 6.3% 4.3% 5.9% 7.5% 7.6%
Sept. '11 March '12 Sept. '12 March '13 Sept. '13 March '14 Sept. '14 March '15
Triangle Apartment Completion Trends (Units)
0
500
1,000
1,500
2,000
2,500
3,000
Wake
Durham
Orange
Wake 372 370 410 81 2,689 2,183 2,074 1,796
Durham 479 0 359 207 130 680 452 1,184
Orange 201 42 0 0 80 0 0 0
Sept. '11 March '12 Sept. '12 March '13 Sept. '13 March '14 Sept. '14 March '15
MARKET ANALYSIS
At 7.8%, the Triangle’s March 2015 vacancy rate was up 0.1% of a point
from the rate reported in September 2014 and was 0.2% of a point
higher than the rate reported in March of 2014. Despite the increase,
the rate remained below the high of 8.6% reported in March of 2010.
Supply-side pressure from new construction, which totaled 2,980 units
during the six-month period ending in March of 2015, was up from both
the 2,526 units delivered in the six-month period ending in September
of 2014 and the 2,863 units delivered in the six-month period ending
in March of 2014. Demand, as measured by net absorption, during the
six-month period ending in March of 2015 totaled 2,640 units and was
outpaced by supply-side pressures in the form of new unit deliveries,
resulting in the increased regional vacancy rate. Demand during the six-
month period ending in March 2015 was the highest level reported for
a fall-winter period since KARNES began tracking the market in 1996.
Completions. The completion level for the six-month period ending
in March of 2015 was the highest level reported during a fall-winter
period since 2001. Completions during the 12-month period ending in
March of 2015, which totaled 5,506 units, were down from the 5,762
units delivered over the 12-month period ending in March of 2014, but
were well above the 1,057 units delivered over the 12-month period
ending in March of 2013. The number of new units delivered over
the 12-month period ending in March of 2015 was above the 3,070
units averaged in each of the 12-month periods ending in March since
1998 and was also the third highest level ever reported by KARNES
during a 12-month period.
All but four of the eleven Triangle submarkets reported new unit
deliveries during the six-month period ending in March of 2015 with
North Durham leading the region with 766 units. All but one Wake
County submarket and all Durham County submarkets reported new
Source: KARNES
Source: KARNES
Source: KARNES
11. 11 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
Units Under Units
Submarket Construction Proposed
Cary/Morrisville/Apex 1,192 1,745
North 414 1,000
Northeast 1,367 418
Northwest 450 1,402
South 0 408
Southwest 1,890 368
Total 5,313 5,341
North 609 358
South 168 949
Total 777 1,307
Carrboro 0 0
Chapel Hill 0 1,144
Hillsborough 0 0
Total 0 1,144
Triangle Total 6,090 7,792
OrangeDurhamWake
Triangle Apartment Asking Rent Trends
$500
$600
$700
$800
$900
$1,000
$1,100
All $838 $851 $873 $879 $898 $913 $937 $961
Eff. $602 $614 $630 $624 $651 $680 $735 $798
One $740 $753 $773 $780 $799 $811 $833 $864
Two $874 $886 $911 $914 $935 $953 $978 $1,002
Three $838 $851 $873 $879 $898 $913 $937 $961
Sept. '11 March '12 Sept. '12 March '13 Sept. '13 March '14 Sept. '14 March '15
Triangle Apartment Net Absorption Trends (Units)
-500
0
500
1,000
1,500
2,000
2,500
3,000
Wake
Durham
Orange
Wake 741 434 746 -131 1,695 1,013 2,163 1,714
Durham 824 -39 312 458 347 -61 210 939
Orange 1,710 424 1,153 286 2,305 795 2,226 2,640
Sept. '11 March '12 Sept. '12 March '13 Sept. '13 March '14 Sept. '14 March '15
unit deliveries during the six-month period, while no new supply
was reported in Orange County during the period. The 1,303 units
completed in Southwest Wake during the 12-month period ending
in March of 2015 led all Triangle submarkets.
Demand. The Triangle market typically experiences seasonally weaker
demand during the fall-winter leasing period. Demand during the six-
month period ending in March of 2015 totaled 2,640 units and was
above both the 795 units reported in the six-month period ending in
March of 2014 and the 286 units reported in the six-month period ending
in March of 2013. Net demand during the six-month period ending in
March of 2015 was also above the 779 units averaged in each of the
March periods over the past 10 years. Despite reporting above average
net demand during the six-month period ending in March of 2015,
historically high supply-side pressures forced vacancy rates up in the
Triangle apartment market. While the regional vacancy rate increased, it
remained below the 8.6% reported in March 2010 and was still below
the 7.9% averaged in March periods over the past 10 years. The Triangle
vacancy rate, while not near 4.6% averaged in fall-winter periods during
the 1990s, remains below from the 9.7% averaged during the 2000s.
The upcoming spring-summer leasing period is typically a seasonally
stronger leasing period. Continued supply-side pressure from projects
under construction, which totaled 6,090 units as of March 2015,
will continue to test the apartment market over the next six months.
Continued uncertainty in the housing and credit markets should,
however, help to partially mitigate supply concerns in the Triangle
market. New proposed projects, which now total 7,792 units, are
queued for construction but will likely await the response to the
significant development currently underway prior to breaking ground.
Even without construction beginning on the proposed projects during
the next 12 months, the current development pipeline of projects
under construction should be too great for seasonal demand.
Forecast. The seasonally stronger leasing period during the next six
months will likely be outpaced by increased supply-side pressures,
that is forecasted to total over 3,000 units, resulting in a increase
in the average Triangle vacancy rate. Provided seasonal demand
over the next six months is in line with the historical average for
the spring-summer leasing period, it appears likely that the vacancy
rate in the Triangle will average between 9.1% and 10.1% in
September of 2015. This will likely vary by submarket based on
supply-side pressures through new construction. It is estimated
that approximately 6,000 units will be completed during the
12-month period ending in March of 2016. This level of new supply
is forecasted to exceed average annual demand, which averaged
2,656 units between 2003 and 2014, and will result in the vacancy
rate increasing to between 10.2% and 11.2% by March of 2016.
Source: Karnes Research Company
MARKET ANALYSIS
Source: KARNES
Source: KARNES
Source: KARNES
12. 12 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURCOMMUNITY PROFILES
Address
605 West Morgan Avenue
Durham, NC 27701
Details
Year Built: 2015
Total Units: 156
Units Proposed: 0
Units Under Construction: 0
1
THE MOORE BUILDING AT WEST VILLAGE - OVERVIEW
Description
Welcome to Moore at West Village, an upscale apartment
community in downtown Durham, North Carolina. We are
a walker’s paradise with scores of restaurants, shopping,
and nightlife all within a few blocks. We are also just a few
minutes from Duke and the Durham Freeway, with easy
access to the Research Triangle. We have five courtyards
to enjoy, as well as a pool, fitness center, outdoor kitchen,
game room, and more.
Premiums
Pool View: $30
Corner: $50
Balcony: $45 - $90
Elevator: $10
Upper Floor: $20
View: $30
Amenities
Pool Fitness Center
Clubhouse Business Center
Bus Line
Managed By Bell Partners
13. 13 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
1
THE MOORE BUILDING AT WEST VILLAGE - UNIT MIX
COMMUNITY PROFILES
Name Total Units Occupancy Type Beds Baths Rental Range Square Feet
A2 5 0.0% Garden 0 1 $1292 - $1302 638
A1 15 26.7% Garden 1 1 $1197 - $1272 588
B4 18 38.9% Garden 1 1 $1207 - $1474 711
B1a 5 20.0% Garden 1 1 $1369 - $1394 716
B1b 1 0.0% Garden 1 1 $1402 - $1402 718
C1b 1 0.0% Garden 1 1 $1428 - $1428 732
C1a 1 0.0% Garden 1 1 $1423 - $1423 732
B1 45 17.8% Garden 1 1 $1408 - $1508 738
B1HC 5 0.0% Garden 1 1 $1378 - $1403 750
B2 1 0.0% Garden 1 1 $1496 - $1496 863
B2a 1 0.0% Garden 1 1 $1491 - $1491 863
B5 5 80.0% Garden 1 1 $1556 - $1591 864
B6 5 80.0% Garden 1 1 $1594 - $1614 881
B3a 1 0.0% Garden 1 1 $1546 - $1546 957
C2a 1 100.0% Garden 1 1 $1607 - $1607 958
B3 5 100.0% Garden 1 1 $1550 - $1655 963
C1 24 12.5% Garden 2 2 $1904 - $1969 1,042
C1HC 4 0.0% Garden 2 2 $1941 - $1961 1,065
C3 9 66.7% Garden 2 2 $2219 - $2264 1,265
C6 4 75.0% Garden 2 2 $2501 - $2521 1,494
Total/Average 156 29.5% - - - $1,586 842
Managed By Bell Partners
14. 14 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
1
THE MOORE BUILDING AT WEST VILLAGE - PHOTOS
COMMUNITY PROFILES
Managed By Bell Partners
15. 15 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURCOMMUNITY PROFILES
Address
704 15th Street
Durham, NC 27705
Details
Year Built: 2015
Total Units: 208
Units Proposed: 0
Units Under Construction: 0
CRESCENT MAIN STREET - OVERVIEW
Description
Welcome to extraordinary living at Durham’s newest
apartment community. Just a short walk from Duke
University, Duke University Hospital, and the bustling
activity on Ninth Street. Crescent Main Street offers
residents a retreat from the ordinary while still providing
easy access to restaurants, coffee shops, entertainment,
shopping and more. Sophisticated interior design sets the
tone for a soothing space you can call your own, while
community luxuries such as a state-of-the-art health
club with separate yoga room, resort-style saltwater pool
and outdoor fireplace, and enriching social events in the
resident lounge create an atmosphere unlike any other.
Premiums
Upper Floor: $40
1st and 2nd Floors: $20
3rd and 4th Floors: $40
Loft: $50
View: $50
Pet Monthly: $20
Amenities
Pool Fitness Center
Clubhouse Business Center
Cable TV Hot Tub
Bus Line Storage Units
Internet
2
Managed By Greystar
17. 17 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
CRESCENT MAIN STREET - PHOTOS
COMMUNITY PROFILES
2
Managed By Greystar
18. 18 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURCOMMUNITY PROFILES
Address
500 South LaSalle Street
Durham, NC 27705
Details
Year Built: 2013
Total Units: 290
HEIGHTS AT SOUTH LASALLE - OVERVIEW
Description
Discover the finest apartments in Durham, North Carolina
at The Heights at LaSalle Apartments. When you live
at The Heights at LaSalle Apartments you’re not just
close by everything you need . . . you’re already in the
neighborhood. The entire campus of Duke University is a
three-point shot away. Miniscule minutes from your front
door is the Warehouse District featuring Brightleaf Square,
the premier shopping, dining and entertainment venue in
Downtown Durham. Performing Arts venues, the legendary
Durham Bulls baseball team and other attractions abound.
Twenty minutes tops puts the world at your feet at the RDU
International Airport. And even closer is the world class
Duke Medical Center.
Premiums
Pet Fee: $300
Pet Deposit: $250
Pet Monthly: $10
Amenities
Pool Fitness Center
Clubhouse Business Center
Bus Line Internet
3
Managed By The Worthing Companies
19. 19 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
HEIGHTS AT SOUTH LASALLE - UNIT MIX
COMMUNITY PROFILES
Name Total Units Occupancy Type Beds Baths Rental Range Square Feet
S2 8 100.0% Garden 1 1 $1230 - $1375 639
A1 116 94.0% Garden 1 1 $1195 - $1420 657
S1 4 75.0% Garden 1 1 $1200 - $1345 675
A2 12 100.0% Garden 1 1 $1275 - $1420 756
S3 8 100.0% Garden 1 1 $1315 - $1460 799
A4 8 87.5% Garden 1 1 $1430 - $1575 819
B1 118 94.9% Garden 2 2 $1585 - $1695 945
B4 16 81.3% Garden 2 2 $1850 - $2035 1,113
Total/Average 290 93.8% - - - $1,486 812
3
Managed By The Worthing Companies
20. 20 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
HEIGHTS AT SOUTH LASALLE - PHOTOS
COMMUNITY PROFILES
3
Managed By The Worthing Companies
21. 21 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURCOMMUNITY PROFILES
Address
300 Swift Avenue
Durham, NC 27705
Details
Year Built: 2014
Total Units: 202
Units Proposed: 0
Units Under Construction: 0
300 SWIFT - OVERVIEW
Description
Living in the desirable city of Durham is just the beginning
at 300 Swift. Once at home, residents of 300 Swift can
choose from an array of activities, from relaxing in the
saltwater pool to taking in a film in the private theater.
Premiums
Upper Floor: $100
Vaulted/High Ceilings: $175
View: $25
1st Floor: $45
Court Yard View: $25
Pool View: $50
Amenities
Pool Fitness Center
Clubhouse Business Center
Hot Tob Bus Line
4
Managed By Greystar
23. 23 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUR
300 SWIFT - PHOTOS
COMMUNITY PROFILES
4
Managed By Greystar
24. 24 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOURAPARTMENT SALES ANALYSIS
Property City/Town Units Age Class Price P/Unit P/Ft Date
1 Heights at South LaSalle Durham 290 2013 AA $53,300,000 $183,793 $229 6/1/2014
2 Howell Street Apartments Chapel Hill 12 1970 B $2,668,000 $166,750 $210 9/18/2014
3 Tryon Place at Cary Parkway Cary 205 2013 A $32,250,000 $157,317 $264 5/1/2014
4 Waterstone at Brier Creek Raleigh 232 2014 A $32,700,000 $140,948 $122 1/3/2014
5 Carrington at Brier Creek Raleigh 270 2003 A $37,850,000 $140,185 $128 3/14/2014
6 Legacy at Wakefield Raleigh 369 2012 B $50,525,000 $136,924 $139 8/20/2014
7 Estates at Wake Forest Wake Forest 288 2013 A $37,200,000 $129,167 $123 1/3/2014
8 Crest at Brier Creek Raleigh 291 2013 A $37,500,000 $128,866 $121 6/1/2014
9 Sedgefield Park Durham 23 1982 B $2,905,000 $126,304 $155 7/1/2014
10 Evergreens at Mt Moriah Durham 268 2001 A $33,050,000 $123,321 $123 6/1/2014
Property City/Town Units Age Class Price P/Unit P/Ft Date
1 Heights at South LaSalle Durham 290 2013 AA $53,300,000 $183,793 $229 6/1/2014
2 Legacy at Wakefield Raleigh 369 2012 B $50,525,000 $136,924 $139 8/20/2014
3 The Columns at Wakefield Raleigh 324 2003 A $39,161,625 $120,869 $108 6/1/2014
4 Carrington at Brier Creek Raleigh 270 2003 A $37,850,000 $140,185 $128 3/14/2014
5 Crest at Brier Creek Raleigh 291 2013 A $37,500,000 $128,866 $121 6/1/2014
6 Estates at Wake Forest Wake Forest 288 2013 A $37,200,000 $129,167 $123 1/3/2014
7 VIllage at Broadstone Apex 300 2013 A $35,550,000 $118,500 $104 3/18/2014
8 Evergreens at Mt Moriah Durham 268 2001 A $33,050,000 $123,321 $123 6/1/2014
9 Waterstone at Brier Creek Raleigh 232 2014 A $32,700,000 $140,948 $122 1/3/2014
10 Tryon Place at Cary Parkway Cary 205 2013 A $32,250,000 $157,317 $264 5/1/2014
Top Sales Transactions by Price Per Unit (2014)
Top Sales Transactions by Total Price (2014)
Raleigh-Durham Apartment Transaction Trend 2004-2014
$400
$755
$1,063
$964 $1,032
$251
$528
$966
$1,161
$1,422
$1,984
$0
$500
$1,000
$1,500
$2,000
$2,500
1905 1905 1905 1905 1905 1905 1905 1905 1905 1905 1905
Calendar Year Totals
TransactionTotalsinMillionDollars
Raleigh-Durham Apartment Buyer Profile
2010-2014
PENSION,
$815,814,000
EQUITY FUND,
$381,875,385
REIT, $577,841,667
LIFE, $87,435,000
FOREIGN, $3,500,000
OTHER DOMESTIC,
$8,100,000
PRIVATE,
$2,910,757,905
All sales information provided by Jeff Glenn, CBRE
25. 25 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015
SPRING 2015 NEW CONSTRUCTION BUS TOUREVALUATION FORM
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The Moore Bldg. at West Village
Crescent Main Street
Heights at South LaSalle
300 Swift
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