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Who is going to buy all the Condos, (Part II)


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I don't recall the specific details, but I know many design firms in North Carolina do not or cannot do condo work due to limits of professional liability. That is, many professional liability insurers won't let firms touch that work. I'm not aware of any other building type that has such extreme liability problems.

Edited by tozmervo
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It has to do with selling the apartment complex. Most developers are not long term owners of the real estate (so they dont want to raise rent because as you say it takes time). They develop the projec

this subscriber article story about apartment growth in Charlotte had all kinds of nuggets of information.   ""Likely coming as little surprise to local renters, metro Charlotte's rent growt

I put 3 properties on the market last Thursday, and 2 received multiple offers on Friday and the 3rd received 2 offers on Saturday. Things are flying off the shelf.

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44 minutes ago, tozmervo said:

I don't recall the specific details, but I know many design firms in North Carolina do not or cannot do condo work due to limits of professional liability. That is, many professional liability insurers won't let firms touch that work. I'm not aware of any other building type that has such extreme liability problems.

I mean, Durham and Raleigh are building a bunch.... Look at One City Center as a prime example in Durham, but there are other smaller condo buildings going up all over that city. 

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who is going to rent all those apartments?   Well actually last year of the top 20 markets which Charlotte was #12 in total units absorbed we were the 3rd fastest in absorbing the new apartments only after Denver and Inland Empire of SoCal.   Charlotte absorbed more apartments that much bigger metros such as San Diego, Twin Cities of MN and Philly to name a few.

Top 20 U.S. Markets for Apartment Net Absorption | Wealth Management

check out the skyline shot Getty must have updated their images 

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1 hour ago, Hushpuppy321 said:

How about that - CBJ is reporting on an Apartment Complex (221 Units) set to break ground around the July Timeframe adjacent/nearby the Tom Hunter Station.  I think this would be the first major Apartment Complex under construction near this Station unless anyone else know different?

 

You would be correct I drive this corridor several times a month. There is a new complex at the Old Concord station all affordable housing but nothing at Tom Hunter.  There are some new apartments closer to Univ City station the next station up and the Blu Northline is kinda in between the 2 stations. 

Edited by KJHburg
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On 4/8/2021 at 7:32 PM, Hushpuppy321 said:

How about that - CBJ is reporting on an Apartment Complex (221 Units) set to break ground around the July Timeframe adjacent/nearby the Tom Hunter Station.  I think this would be the first major Apartment Complex under construction near this Station unless anyone else know different?

0ABA476E-120E-46C6-9DBF-A80B9B0F6F76.jpeg

The Oliver at Tom Hunter. $40 million investment to deliver in Q1 2023. The developer is also opening an office here with plans for future projects. 

0935DBA7-1494-42FC-BBEC-4CA66CABD8BC.jpeg

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Hey Crowd FYI - Last night I looked through the City Zoning Agenda for fun (really looking for any details on the NWR Midtown Tower), checking on what projects were seeking approval and I was blown away by the sheer number of Apartments/Multifamily Projects.  I didn’t keep any specific count but it was like nearly 2000 Apartments up for approval.  Most of those were not along the LightRail Corridor like we all are so often happy to discuss.   I was very surprised indeed.

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Although the housing supply in the Charlotte market is very tight, I read somewhere that the housing supply in Uptown is not a problem. The Uptown housing market has a 3 month supply vs a 2 week supply on average for the rest of the city. Either Uptown is too expensive for the average person, or Uptown living isn't as desirable as it once was (or a combination of both)

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3 hours ago, The Real Clayton said:

I can think of 2 multifamily projects walking distance from Parkwood Station, 4 walking distance from 25th St Station and 4 within walking distance of 36th Street Station that are all in various stages of development. 

Dang that's a lot.  Do you (or anyone) know what a healthy balance of Multi-Family Units vs. Single Family Units for a City is?  Seems like there will soon be much more apartments in Charlotte City Limits than Single Family Home\Townhomes at this pace.   50\50 or 60\40?

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8 hours ago, norm21499 said:

Although the housing supply in the Charlotte market is very tight, I read somewhere that the housing supply in Uptown is not a problem. The Uptown housing market has a 3 month supply vs a 2 week supply on average for the rest of the city. Either Uptown is too expensive for the average person, or Uptown living isn't as desirable as it once was (or a combination of both)

a little bit of both.  I think the ghost town atmosphere on the last year (and it is beginning to change) did not help with restaurants closed and streets and activities non existent.  Uptown pricing is a bit higher but compared to markets like southend it is still less expensive.  

1 hour ago, Hushpuppy321 said:

Dang that's a lot.  Do you (or anyone) know what a healthy balance of Multi-Family Units vs. Single Family Units for a City is?  Seems like there will soon be much more apartments in Charlotte City Limits than Single Family Home\Townhomes at this pace.   50\50 or 60\40?

Land prices are so much higher in central Charlotte NoDa, Uptown, Southend etc. multifamily makes sense whether it is townhomes or apartment flats. SF homes are still being built on infill lots anywhere they can find them but mainly in the outer suburbs even within Meck county 

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Who is going to buy all those houses?  well quite a few people.  These are the hottest zip codes in Charlotte according to Opendoor.

mail?url=https%3A%2F%2Fmcusercontent.com%2F3a9823939a00705b46bd19ed9%2Fimages%2F98e8d796-15aa-a80b-d1d4-f978f65f2d70.png&t=1620216023&ymreqid=d07d9ac7-b224-7051-1c7c-37006501ac00&sig=S31Gnicz80bM2rkiZ9_6Gw--~D

from the daily Business NC email:

“We’re continuing to see lots of young families move to North Carolina," said Charlotte Manager Jon Enberg in a release. "Charlotte specifically is seeing more demand than even Raleigh-Durham and at a higher price point, up to $450K, particularly in surrounding suburbs where their dollar goes farther. We see this in south Charlotte, near the state line and toward Lake Norman to the north. Neighborhoods like Matthews and Mint Hill, which are southeast and east of Charlotte, are seeing demand from buyers looking for more space due to COVID-19, and families new to the Charlotte area."

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On 4/20/2021 at 12:27 PM, CarolinaDaydreamin said:

I posted this in the expansion thread so don't shoot me if its repetitive but it absolutely applies. We are second in the country for growth, and also had the second largest increase over 2019.

image.png.54ab6e19c73638ce32e62ddace661042.png

 

Happy to say I was part of the San Francisco exodus, and adding back to Charlotte's growth this last year.  Everyone I knew in SF left the city.  Most moved to LA, Palm Springs, Tahoe, Texas and Idaho.  The recovery will take years before SF is back to how it was pre-covid, and hopefully cleaned up and better.

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16 minutes ago, KJHburg said:

not surprising Charlotte has one of the highest percentage of newer homes being sold.  Our housing stock is much newer than most of the NE and Midwestern cities.

Which Cities Have Most Older or Newer Homes? | Realtor Magazine

 

^ a product of our history of being a ‘trifling place’

(plus we teach so much down, e.g. huge chuncks of Elizabeth for Independence blvd or Brooklyn for 277)

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from a Biz Journal article about the apartment market here in the Charlotte metro:

""The Charlotte metro could see nearly 10,900 apartments deliver in 2021, which would be a multidecade high, Couch said. That expected surge in inventory may moderate rental rate growth but, Couch said, he doesn’t expect the market to be oversupplied.“It would be a concern to me if it was a market like New York or the Bay Area, where you’re seeing a lot of net move-outs, but there’s a lot of people moving to these Sunbelt metros,” he said.""

""BY THE NUMBERS
92.6% occupancy
$1,248 average rent
952 average unit size, by square feet
5,386 units absorbed in past 12 months
4,459 units under construction
21,466 units proposed

Source: ApartmentData.com, April 2021 report""

Apartment development unfazed by lumber costs, pandemic - Charlotte Business Journal (bizjournals.com)

 

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On 5/15/2021 at 9:20 PM, KJHburg said:

from a Biz Journal article about the apartment market here in the Charlotte metro:

""The Charlotte metro could see nearly 10,900 apartments deliver in 2021, which would be a multidecade high, Couch said. That expected surge in inventory may moderate rental rate growth but, Couch said, he doesn’t expect the market to be oversupplied.“It would be a concern to me if it was a market like New York or the Bay Area, where you’re seeing a lot of net move-outs, but there’s a lot of people moving to these Sunbelt metros,” he said.""

""BY THE NUMBERS
92.6% occupancy
$1,248 average rent
952 average unit size, by square feet
5,386 units absorbed in past 12 months
4,459 units under construction
21,466 units proposed

Source: ApartmentData.com, April 2021 report""

Apartment development unfazed by lumber costs, pandemic - Charlotte Business Journal (bizjournals.com)

 

What is an absorbed unit? One that is now rented that wasn't before?

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I just do not understand why we do not have more true mixed use towers like what they are building in Austin: 

 

https://austin.towers.net/skidmore-owings-merrill-headed-for-rainey-district/

Apartment, Condo, Hotel, Retail

https://austin.towers.net/texas-tallest-tower-could-break-ground-on-waller-creek-in-2022/

Apartment, Condo, Hotel, Office, Retail, and supertall status. 

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