Apartment action continues: multifamily market draws buyers, builders and sellers.THE AVERAGE OCCUPANCY RATE Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time
pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) FOR Pulaski County Pulaski County is the name of several counties in the United States:
More than a dozen apartment sales, topping a combined $131 million, closed during the past 12 months. Sellers cashed out on properties while hungry investors bought a menu of projects that ranged from the high end to rehabs.
The same favorable fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. conditions of low interest rates and demand for income-producing real estate that are pushing sales activity also are driving continued development of new apartments.
"Quite honestly, our market is probably one of the most stable markets in the country," said Jerry Webster Webster, town (1990 pop. 16,196), Worcester co., S Mass., near the Conn. line; settled c.1713, set off from Dudley and Oxford and inc. 1832. The chief manufactures are footwear, fabrics, and textiles. , president of Little Rock's Webster Corp.
"There is no question there will be new projects next year. You can book that. The question is, who's going to build them and where are they going to build?"
How many new units?
"I'd be surprised if you didn't have 800 to 1,000," Webster said.
Nearly 1,400 new units opened in the Pulaski County market during 2006, and more than 1,600 are expected for completion this year.
"A story we're going to have next year is new construction," Webster said. "The market is very stable and borderline borderline /bor·der·line/ (-lin) of a phenomenon, straddling the dividing line between two categories.
borderline strong. There are developers looking to expand into new markets. I'd be surprised if you didn't see at least three projects built next year."
Two Maumelle projects opened during the past 12 months are 168 units in phase three of RiverPointe and 240 units at The Parc at Maumelle. Joining the conga line of new apartments are Foothills Phase II in North Little Rock, 300 units; Palisades Palisades, cliffs along the west bank of the Hudson River, NE N.J. and SE N.Y., extending from N of Jersey City, N.J., to the vicinity of Piermont, N.Y., with a general altitude of from 350 ft to 550 ft (107–168 m). at Chenal Valley, 248 units; HighlandPointe of Little Rock, 216 units; and ChapelRidge of Sherwood, 160 units.
Mixed in with the new is the conversion of old projects into condominiums. The 74-unit Riverview complex in downtown Little Rock went condo, a transformation that is in process at the 113-unit Riviera project in Little Rock's Riverdale area.
In the rental wars, those moves are removing competitors from the field.
Another variable at play is the interest-rate creep for single-family mortgages. That financing factor is said to be a good thing for converting would-be homeowners into tenants.
Apartment owners who took advantage of favorable refinancing Refinancing
An extension and/or increase in amount of existing debt. opportunities are positioned to reap a windfall windfall
An unexpected profit or gain. An investor holding a stock that increases greatly in price because of an unexpected takeover offer receives a windfall. sale for well-maintained properties.
"The low interest rates pushed debt service down and values up," said Richard Cheek, partner in Little Rock's Multifamily Group LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control . "Multifamily has always been a popular property type to invest in. The risk has been perceived to be lower because people need a place to live.
"Some of the owners we've dealt with in town who have held their properties for more than 10 years are looking at the value of their property and deciding to sell."
Multifamily Group helped broker the market's biggest apartment sale of the past 12 months, which some say is a record-setter.
The double-header sale to a Philadelphia-based investment group involved Chenal Lakes, a 456-unit complex in west Little Rock ($34 million) and Brightwaters ($16 million), a 256-unit complex in Little Rock's Riverdale area.
Some apartment investors have repackaged the properties into tenants-in-common projects. TICs allow as many as 35 investors to buy stakes in large apartment complexes.
Affiliates of Steven D. Bell and Co. of Greensboro, N.C., bought four Little Rock projects in a series of transactions totaling more than $49 million.
The sellers were affiliates of a Denver-based real estate investment trust: Apartment Investment & Management Co. (Aimco).
The properties are Riverwalk, 262 units for $18 million; Pleasant Ridge Pleasant Ridge may refer to:
political intrigue leading to resignation of Pres. Nixon. [Am. Hist.: EB, X: 568–569]
See : Conspiracy
scandals involving Nixon’s administration (1972). [Am. Hist. , 140 units for $7.7 million.
Lindsey & ERC (database) ERC - An extended entity-relationship model.
One of the largest players in the Arkansas Arkansas, river, United States
Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. apartment market is looking to buy, sell and build.
"It's been a pretty good sales market for the past several years," said Roy Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. , president of Lindsey Management Co. in Fayetteville. "Investors have been looking at real estate to get better returns. That tends to make the price of income-producing property go up."
Lindsey Management, which manages 32,162 units in seven states, expects the first of 624 units to come on line at The Links at the Rock project in North Little Rock during the first half of 2008.
Also in the development pipeline are 408 units in the second phase of The Fairways at Hurricane Creek Hurricane Creek is a tributary of the Black Warrior River located in Southwestern Tuscaloosa County in western Alabama. It is over 30 miles long and its watershed covers approximately 120 square miles. in Bryant, which will be followed by 324 units in the fourth phase of The Links at Eagle Hill in west Little Rock.
"We're averaging about 2,000 units a year, and that's not likely to change anytime soon," Stanley said.
Among Lindsey's new projects are additions to its out-of-state college-town markets that include Lincoln Lincoln, city and district, England
Lincoln, city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River. , Neb., Columbia, Mo., Starkville, Miss., and Tuscaloosa, Ala ALA aminolevulinic acid.
ala (a´lah) pl. a´lae [L.] a winglike process. .
The company's two Texas projects could be leaving its management portfolio through a sale, described as a first for Lindsey. The properties are the Greens at McKinney, 576 units completed in July 2002, and Timber Links Golf & Country Club, a 480-unit project completed in Denton in March 2005.
"We've never sold any [apartments], but since we don't have a large presence in Texas, we're looking at pulling back from there," Stanley said.
Four Arkansas properties also are on the sales block.
These include two Conway projects, Salem Park, 144 units, completed in May 1990; and Germantown, 132 units, completed in July 1991; Meadow Lake Meadow Lake can refer to the following inhabited places:
Stanley said the apartments, which all feature low-income tax credits, are completing a 15-year no-sale period. Under terms of the general partnership agreement, the other investors now want to sell the properties.
"It would be our wish that the Arkansas projects The Arkansas Project is the general name of a series of investigations (mostly funded by billionaire Richard Mellon Scaife) that were designed to damage and end the presidency of Bill Clinton. Scaife gave $1. would stay in the Lindsey portfolio," Stanley said.
"Are they for sale? Yes. We will find out in the next two months whether or not we continue to own those properties."
ERC Properties Inc. of Barling (Sebastian County) is more than a year into a corporate restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). that saw the closing of its property management subsidiary.
"We went through a major property management conversion," said John Clayton John Clayton may refer to:
We're shoring up Noun 1. shoring up - the act of propping up with shores
propping up, shoring
supporting, support - the act of bearing the weight of or strengthening; "he leaned against the wall for support" our existing portfolio in the market. We're seeing improvement in our net operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ."
A third of the company's 4,700 units are in Arkansas, with the balance in Oklahoma, Kansas, Tennessee Tennessee, state, United States
Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). .
As part of the restructuring, ERC sold its interest in ChapelRidge projects in Sherwood, North Little Rock and Springdale, as well as its managing position in its HighlandPointe projects in west Little Rock and Maumelle.
By George Waldon
Apartment Market Index First Quarter 2007 Units Avg. Unit Units Built Before 1980 Surveyed Occupancy Size (SF) Total 10,153 89.1% 843 Northwest LR 2,818 91.7% 870 North Little Rock 2,434 92.0% 814 Central LR 2,168 93.7% 869 Southwest LR 1,375 74.1% 815 Jacksonville 649 81.5% 772 West Central LR 591 89.3% 888 Sherwood 118 99.0% 780 Units Built in 1980s Total 6,347 94.0% 833 Northwest LR 3,398 93.1% 839 Central LR 725 94.8% 773 West Central LR 624 92.7% 808 North Little Rock 365 97.9% 887 Jacksonville 364 95.5% 716 Sherwood 357 97.6% 928 Southwest LR 272 93.7% 775 Maumelle 242 95.5% 1,010 Units Built After 1990 Total 4,463 96.2% 934 Northwest LR 1,657 92.9% 971 Southwest LR 1,012 99.8% 940 Sherwood 579 99.8% 793 Maumelle 456 96.1% 931 West Central LR 340 93.2% 994 Central LR 222 99.0% 917 Downtown LR 161 98.1% 894 North Little Rock 36 86.0% 1,036 Overall LR Area 20,963 92.1% 859 First Quarter 2007 Avg. Rent Rent Change Units Built Before 1980 (monthly) from 12-06 Total $583 3.4% Northwest LR $611 4.0% North Little Rock $587 3.4% Central LR $652 6.9% Southwest LR $474 1.7% Jacksonville $455 0.0% West Central LR $590 2.0% Sherwood $519 -0.8% Units Built in 1980s Total $609 -2.7% Northwest LR $645 -6.1% Central LR $657 -2.4% West Central LR $523 3.1% North Little Rock $631 3.8% Jacksonville $434 14.3% Sherwood $539 2.2% Southwest LR $558 -0.7% Maumelle $565 0.0% Units Built After 1990 Total $737 4.4% Northwest LR $854 5.7% Southwest LR $596 -0.7% Sherwood $552 2.2% Maumelle $708 1.7% West Central LR $752 0.0% Central LR $992 -27.4% Downtown LR $804 28.2% North Little Rock $646 NA Overall LR Area $624 1.8% Source: The Multifamily Group LLC of Little Rock Pulaski County Apartment Occupancy 1985-2006 1985 1986 1987 1988 1989 1990 89.0% 86.0% 82.0% 86.8% 91.4% 92.5% 1991 1992 1993 1994 1995 1996 93.4% 94.4% 95.7% 95.1% 95.0% 93.9% 1997 * 1998 1999 2000 2001 2002 92.9% 91.9% 92.3% 94.4% 93.7% 94.1% 2003 2004 2005 2006 93.9% 93.8% 93.8% 92.6% * 1997 data extrapolated from trend 1996-1998.