spotlight on greensboro, nc - greysteel · greensboro, nc overview october 2019 home to more than...
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© 2019 Greysteel / 1
GREENSBORO, NC UNIVERSITY OF NORTH CAROLINA AT GREENSBORO
SPOTLIGHT ON GREENSBORO, NCOCTOBER 2019
2,266units of positive net absorption since 2015
1,809units delivered since 2015 (1,300 units under construction as of Q4 2019)
Data courtesy of Greysteel Research, CoStar Realty Information, Inc. Survey includes multifamily properties greater than 10 units (32,242 units in aggregate). Fully affordable properties and the following asset types are excluded from the survey: senior, corporate, military and student.
4.3%average annual effective rent growth since 2015
$864average asking rent per unit as of Q4 2019
$1,074
$878
$793
$571
3 BDR
2 BDR
1 BDR
Studio
$0 $250 $500 $750 $1,000 $1,250
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
$0.90
$0.95
0
250
500
750
1,000
1,250
1,500
1,750
Effe
ctiv
e re
nt /
SF
# of
uni
ts
Under Construction Deliveries Effective Rent/SF
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
250
500
750
1,000
1,250
1,500
Vac
ancy
rat
e
# of
uni
ts
Net Absorption Vacancy %
Pipeline vs Effective Rental Rate PSF
Average Asking Rent Per Month
Market Overview
Net Absorption vs Vacancy
29
220840
40
40
73
© 2019 Greysteel / 2
Greensboro, NC Overview OCTOBER 2019
Home to more than 291,000 residents, Greensboro is a lively and bustling city located in the fast-growing Piedmont Triad region of north-central North Carolina. Greensboro boasts a well-educated workforce, with approximately 39% of its eligible residents holding a bachelor’s degree or higher. This education level is likely correlated to the presence of University of North Carolina at Greensboro, a public research university with an enrollment of over 20,000 students and one of the largest employers in the city. Greensboro’s diverse workforce is paid a fair salary, with a median household income of nearly $50,000.
Greensboro’s economy is primarily bolstered by the manufacturing and distribution sectors, with numerous high-profile companies operating or headquartered in the city. Stemming from this large concentration of firms in these industries, Greensboro’s top industries consist of Trade, Transportation and Utilities, Professional and Business Services, and Manufacturing. However, the city’s robust economy is diversified too, with a large number of healthcare, education, and financial institutions operating in the city.
Moses Cone Health System
• Encompassing more than 100 locations, Cone Health is an integrated not-for-profit network of health care providers serving people in the Piedmont Triad region
• Employs more than 9,400 staff and physicians in Greensboro, making it the city’s largest employer
• Located in Greensboro, Moses H. Cone Memorial Hospital is a 535-bed Level II Trauma Center that is the largest hospital in the four-county region and the medical center of Cone Health
University of North Carolina at Greensboro
• The University of North Carolina at Greensboro (UNCG) is a public research university that is part of the University of North Carolina system
• Accredited by the SACSCC, the school offers over 100 undergraduate, 61 master’s, and doctoral programs with an enrollment of 20,000 students each year
• UNCG is Greensboro’s third largest employer with 3,175 faculty and staff
Unifi, Inc.
• A manufacturing company headquartered in Greensboro that produces and sells commodity yarns, specialized yarns, and premier value-added yarns
• Unifi employs more than 2,150 workers in Greensboro, making it the city’s largest manufacturing employer and ninth-largest employer overall
• In fiscal year 2018, Unifi posted revenue of $679 million and net income of $31.7 million
ECONOMIC HIGHLIGHTS
MOSES CONE HEALTH SYSTEM
UNIVERSITY OF NORTH CAROLINA AT GREENSBORO
UNIFI, INC.
CONTINUE TO RENT COMPARABLES
© 2019 Greysteel / 3
Rent Comparables OCTOBER 2019
CONTINUE TO SALES COMPARABLESListed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc.
COUNTRY PARK AT TALL OAKS
HAWTHORNE AT HORSE PEN CREEK
MADISON AT ADAMS FARM
THE MOREHEADCUMBERLAND
COURTS
Property
Year Built 2017 2008 1987 1972 1965
Occupancy 99.1% 95.3% 91.6% 97.5% 100.0%
Avg. Unit Size 988 SF 1,055 SF 1,044 SF 1,002 SF 750 SF
Rental Rates
Unit Type Per Unit Per SF Per Unit Per SF Per Unit Per SF Per Unit Per SF Per Unit Per SF
1 BDR $1,245 $1.64 $915 $1.08 $845 $1.04 $710 $0.95 $515 $1.03
2 BDR $1,339 $1.33 $1,155 $1.06 $937 $0.89 $809 $0.82 $565 $0.81
3 BDR $1,606 $1.22 $1,369 $1.05 $1,229 $0.95 $950 $0.74 $628 $0.70
Amenities
Balcony/Patio • • • •
Ceiling Fans • • • •
Dishwasher • • • •
Fitness Center • • •
Pet-Friendly • • • •
Pool • • • •Premium
Countertops • •
Premium Flooring • • • •Stainless Steel
Appliances •
Walk-in Closets • • • •
Washer/Dryer • • • • •
The report below features a sampling of properties located in Greensboro, NC. Please note the different locations and adjust
comparisons accordingly.
© 2019 Greysteel / 4
Recent SalesThe report below features a sampling of properties sold since May 2019 in Greensboro, NC. Please note that different locations,
amenity base, asset vintage, unit sizes and mixes, and other variables contribute to variances in sales metrics, and adjustments
to comparisons should be made accordingly. Also note that sales comparables provide a snapshot of recent transactions and are
not a perfect predictor of future market movement and behavior.
THE LODGE AT LAKESHORE
5010 Hilltop RoadGreensboro, NC
THE HAMPTONS AT COUNTRY PARK
4515 Lawndale DriveGreensboro, NC
NEW GARDEN SQUARE 5402 Garden Lake Drive
Greensboro, NC
PIEDMONT PLACE 5800 Garden Village
CourtGreensboro, NC
PHILLIPS PLACE 303 N Mendenhall Street
Greensboro, NC
Property
Close Date September 2019 August 2019 July 2019 May 2019 May 2019
No. of Units 132 264 88 100 15
Year Built / Renovated 2004 1979 2014 2015 1966
Price $13,300,000 $18,700,000 $11,280,000 $16,200,000 $1,550,000
Price/Unit $100,758 $70,833 $128,182 $162,000 $103,333
Price/SF $116.23 $69.61 $67.14 $152.52 $91.53
Cap Rate 5.30% 5.50% 5.60% 6.07% --
SellerLocal Real Estate Investment Firm
Local Real Estate Investment Firm
Local Real Estate Investment Firm
Local Real Estate Investment Firm
Local Real Estate Investment Firm
BuyerRegional Real Estate
Investment FirmOut-of-Market Real Estate
Investment FirmRegional Real Estate
Investment FirmOut-of-Market Real Estate
Investment FirmPrivate Investor
OCTOBER 2019
Listed properties represent a small cross-sampling of the overall market. Data courtesy of Greysteel Research, CoStar Realty Information, Inc.
© 2019 Greysteel / 6
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