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Accelerating success.
Research & Forecast Report
GREENVILLEQ4 2016 | Multifamily
RECENT SALES
Source: AXIOMetrics. RCA, CoStar
Market Survey Results and ForecastsSequential Month Annual
Single Family Units Permitted 3,066 3,488 3,721 3,862 686,576
Relative Change 18.9% 13.8% 6.7% 13.2% 8.7%
Multifamily Units Permitted 401 1,272 2,043 887 371,009
Relative Change 137.3% 217.2% 60.6% -61.7% -8.6%
Multifamily as a % of Total 11.5% 26.7% 35.1% 18.5% 34.1%
Demand/Supply Ratio Job Gain / Total Residential Units Permitted 3.9 2.6 2.7 1.2 2.1 1.3 1.0 0.8 1.3 1.9
Job Gain / Single Family Units Permitted 4.2 3.0 3.7 2.1 3.6
Job Gain / Multifamily Units Permitted 64.2 22.8 10.0 3.1 5.6
SUPPLY AND DEMANDAccording to the Bureau of Labor Statistics, job growth in Greenville-Anderson-Mauldin, SC Metro Area was 1.7% in November 2016, reflecting 7,100 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.6%.
Axiometrics forecasts Greenville-Anderson-Mauldin, SC Metro Area’s job growth to be 1.4% in 2017, with 5,653 jobs added. Job growth is expected to average 1.4% from 2018 to 2020, with an average of 5,950 jobs added each year.
On the supply side, permits for 1,198 multifamily units were issued in the 12 months ending in November 2016, down -845 units from the prior year’s sum. In terms of total residential housing, 5,429 units were permitted in the 12 months ending November 2016, a decrease of -385 units from the prior year’s total.
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 3www.ColliersMultifamilyEast.com
IDENTIFIED SUPPLYAs of October 9, 2016, Axiometrics has identified 998 apartment units scheduled for delivery in 2016, of which, 652 have been delivered. As a comparison, there were 1,597 apartment units delivered in 2015. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,125 per unit, or $1.17 per square foot. Effective rent has averaged $1,108, or $1.15 per square foot, resulting in an average concession value of $-16.75. As a comparison, existing properties in the market had an average asking rent of $869 per unit ($0.90 per square foot) and an average effective rent of $864 per unit, or $0.89 per square foot, in 3Q16. Concessions for existing properties averaged $-5.34.
Submarket Delivery Schedule
Pipeline Delivery Schedule Pipeline Lease Up Trend
Units Absorbed Asking Rent Effective Rent
Top Submarkets 2014 2015 2016 Total Totals PPM Per Unit PSF Per Unit PSF Central 291 291 259 20 $967 $1.01 $908 $0.96
*Based on 2016 deliveries *Trend based on a trailing 12 month period
“We were extremely pleased with the East Region team and its ability to attract an incredible amount of interest in our 3 assets. The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with. Their performance stands out against any of the groups we work with nationally.”
Nels Billsten, Vice President | CORE Realty Holding Management
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 4www.ColliersMultifamilyEast.com
PIPELINE DETAIL# Name Status Owner Address Market Units1 South Ridge Lease Up Berkson Asset Management 823 S Church St SE Outer Greenville/Berea 3502 Haywood Reserve Lease Up Daniel Corporation 826 Old Airport Rd Eastside 2923 Velo Verdae Lease Up Arlington Properties 205 Verdae Blvd Pleasantburg 2624 West Village Lofts Lease Up Progressive Consultants, LLC 25 Draper St N Outer Greenville/Berea 1825 Main & Stone Lease Up The Beach Company 644 N Main St Downtown Greenville 2136 Highlands at Market Point Lease Up Brand Properties 30 Market Point Dr Pleasantburg 2157 Greenville Lofts Under Construction Arlington Properties 450 S Academy St Downtown Greenville 2158 Ellison on Broad Under Construction Proffitt Dixon Partners 212 E Broad St Downtown Greenville 2019 The Enclave Phase II Under Construction McCall Capital LLC 101 Enclave Paris Dr N Outer Greenville/Berea 17010 Mosby Poinsett Under Construction Middleburg Management, LLC 6001 Hampden Dr N Outer Greenville/Berea 24411 Springs at Laurens Road Under Construction Continental Properties Company,
12 Main & Stone Phase II Under Construction The Beach Company 644 N Main St Downtown Greenville 8013 Ardmore at the Park Under Construction Ardmore Residential 805 Mauldin Rd Pleasantburg 35014 District West Apartments Under Construction Flournoy Companies 101 Reedy View Dr Downtown Greenville 36515 Link Apartments West End Under Construction Grubb Properties 25 River St Downtown Greenville 21516 Greenville Gateway Proposed Greenville Gateway Developers 400 N Church St Downtown Greenville 17617 Emerald Creek Proposed Edward Rose & Sons Fairforest Way &
Wenwood RdPleasantburg 330
18 Camperdown Multi-Family Proposed Centennial American Properties, LLC
Falls St Downtown Greenville 243
19 The West End Apartment Homes
Proposed Woodfield Investments 1100 S Main St West Greenville 271
20 Northpointe Proposed Central Realty Corporation 400 E Stone Ave Downtown Greenville 285Total Units 4,931
910
13
11
Key
Lease-Up
Under Construction
Proposed
17
2
63Downtown Greenville
Downtown Greenville
4
14
7
12
158
16
18
19
20
1
5
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 5www.ColliersMultifamilyEast.com
LEGACY AT SAND HILL | Columbia, SC
CHALLENGE: Significant prepayment penalty on the existing loan so buyer had to assume and put an additional supplemental loan on top. Capital Markets shifted and effected the supplemental loan proceeds after being under contract.
STRATEGY & RESULTS: The East Region team was the exclusive sales agent for Mesa Capital Partners. Our goal was to minimize exposure to the seller and generate the highest net number possible for them. We provided the clients with property marketing, and assisted through all negotiations, and due diligence up until closing. This is the second time in three years this team has sold this property, resulting in the highest price per unit trade in Columbia year to date.
CLIENT: Mesa Capital Partners UNITS: 240
OUR PROVEN TRACK RECORDRecent Closings
Greenhill Parish CrossingColumbia, SCUnits: 240
Villas at Spears CreekColumbia, SCUnits: 240
Legacy at SandhillColumbia, SCUnits: 240
Springtree ApartmentsColumbia, SCUnits: 152
WHO WE AREOne of the largest and most
experienced teams of multifamily
specialists in the industry
Units sold since 2011
33,500MORE THAN
Group gross transaction value in since 2011
$2.3B
Dedicated Multifamily Professionals & Advisors
50MORE THAN
Expansive geographic footprint
20COVERING OVER
STATES
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 6www.ColliersMultifamilyEast.com
WE CAN HELPAs an investor in multifamily properties, you need a firm that provides experience, broad reach and the ability to market an asset no matter how challenging the economic environment. You need a team that specializes in your market you need The East Region Multifamily Advisory Group.
Colliers International has one of the largest and most experienced teams in the industry, strategically located in key markets throughout North America. Our combination of market dominance, expertise, and singular focus, make us uniquely successful in helping our clients achieve their disposition objectives.
How are we able to bring together the skills and tools necessary to complete challenging assignments? Our East Region Multifamily Advisory Group is connected by purpose and focus. Our team is dedicated to sharing information on market opportunities, capital sources and buyers/sellers to achieve the best results for our clients.
www.ColliersMultifamilyEast.com
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