The News & Observer (Raleigh, N.C.), David Bracken column [The News & Observer (Raleigh, N.C.)]
By David Bracken, The News & Observer (Raleigh, N.C.) | |
McClatchy-Tribune Information Services |
The timing of when a project opens, in addition to its location and the quality of its units, will go a long way toward determining how well it does.
In the case of
In
In
The Lofts are the second multifamily joint venture that Highwoods has done at Weston -- it earlier developed the 332-unit Weston Lakeside apartments with Crosland -- and its location on the edge of
To stroll through The Lofts common areas and units is to be reminded of just how much of an arms race the apartment market has become. The complex is loaded with amenities that you would find in a high-end hotel: an expansive gym, club space suitable for hosting corporate functions, a rooftop deck and a saltwater pool.
The units feature 10-foot ceilings, granite countertops and stainless steel appliances -- all the finishings that tenants today have come to expect.
A 'hospitality influence'
Still, Ravin, who ran Crosland's apartment group for 14 years before it spun out and became
"It's a good market. I'm nervous it's not a great market," he said. "I think we're going to test that pretty quickly."
At Crosland, Ravin developed some of the Triangle properties -- 712 Tucker and Oberlin Court, to name two -- that helped fuel the apartment boom by selling for eye-popping sums. Since leaving Crosland, he has partnered with
Nervous about demand
Ravin agrees that demographic shifts now occurring in the country ultimately will benefit the apartment market. The percentage of the population that is age 25 to 34 is growing, and young people are waiting longer to get married and have children.
Rents also are still rising in the Triangle. The average monthly rent was
But in markets such as downtown
Ravin said the rapidly recovering housing market is perhaps the clearest sign that the apartment market is headed for a correction, one likely to be more severe than previous downturns.
He predicts that over the next 12 to 18 months the market will bifurcate into the haves and have-nots, with some of the new projects prospering while others struggle. As some communities founder, investors' willingness to finance new projects will cool.
"It will stop as fast as it started," Ravin said.
Bracken: 919-829-4548
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