November 15, 2017
“Raleigh Ranked Among Top Cities for Annual Apartment Rent Growth,” Ari Abramson Tells Bisnow Audience
Speaking before attendees at the recent Raleigh and Durham “ State of the Market” presentation sponsored by Bisnow, Ari Abramson, Vice President of Acquisitions for Continental Realty Corporation discussed the dynamics of the local multifamily and retail marketplace. Abramson examined current drivers that are expected to fuel rent growth and expansion and provided perspectives on the types of investments the Baltimore-based company is seeking in the region.
“The population in the greater Raleigh metropolitan area has grown by approximately 15% over the past five years, with the downtown population doubling in size over the past decade,” Abramson explained. “The region has achieved consistent annual rent growth surpassing the national average during that time frame. Based on these drivers, Raleigh is now ranked among the top cities for annual rent growth as demand increases for Class “A” apartment product. We have tracked the trends that bring premium rents for walkability in downtown corridors, in areas that offer a true live-work-play environment. These submarkets typically attract young professionals, renters-by-choice and empty-nesters.”
Earlier this year, Continental Realty Corporation acquired The Edison Lofts, a seven-story 223-unit midrise apartment complex situated in the heart of downtown Raleigh, and within walking distance to the city’s central business district. The community offers studio, one and two bedroom floor plans ranging up to 1,870 square feet of space. Standard features include granite countertops, stainless steel appliances, nine foot and loft-style ceilings, European lighting design and wood plank flooring.
According to Abramson, when it comes to new vintage apartment properties, “the positive trajectory of effective rents, the decline of up-front concessions and consistent monthly leasing trends are the key factors to review when acquiring pre-stabilized or a recently-stabilized asset.”
Also, this year, Continental Realty disposed of Creekside Crossing, a 60,499-square foot neighborhood shopping center in Raleigh. The asset was 100% leased and occupied at the time of sale and anchored by Planet Fitness and Tuesday Morning. The company acquired the property three years ago and increased occupancy from 30%.
“When underwriting opportunities, we always seek to understand the real estate story behind the sale.” Abramson concluded. “Why is the owner choosing to exit now? What is my potential value-add business plan? Is the product differentiated? Is there a compelling reason to be in this location?”
Continental Realty Corporation (CRC), headquartered in Baltimore and founded in 1960, is a full-service commercial real estate investment and management company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of over 3.5 million square feet of space, as well as apartment communities featuring nearly 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the value of the portfolio exceeds $1.5 billion.