Raleigh October 2021 – Key Take Aways
- Terracon’s Joe Starr reported the NCEDA Fall Conference theme was economic development-related transportation and infrastructure. Wilmington + Morehead City Port Authority received federal approval to expand harbor. CSX Intermodal in Rocky Mount is an economic driver.
- AdVenture Development’s Sam O’Brien focused on the DOT/transportation aspect of Eastfield Crossing in Selma, NC. Building 100, 135K SF flex, has 3.15.22 delivery; tilt-up party in Nov/Dec.
- Avi Grewal of SINGH Development introduced Analyst Jacob Shermer. SINGH was selected as new downtown Morrisville developer. Avi struggles with Raleigh in assisted living rezoning.
- Marcus & Millichap’s John Daly is selling 100-unit apartment property in Oxford with HUD loan. Apartment market is strong; rent growth is cooling. 8000 units to come on market in Triangle in 2022 and will be absorbed. Occupancy is in the 95% range.
- Steve Brown of Investors Title said residential and commercial have not slowed down, with some cooling in the refi market. He thanked RPN for ATL connection leading to six new deals.
- CE Group’s Mark Ashness reported unprecedented growth in the Triangle’s outer-ring communities. He has an approved Smithfield 600-unit project (100 single-family, 100 townhomes, 300 apartments and commercial parcels). Current multi-family projects are 300+ units. Townhomes are being offered as a rental product. Municipalities on I-95 Corridor lack sewer. Mark sees potable water supply as a long-term issue for the Triangle. CE Group is opening second office at MOSAIC at Chatham Park.
- Kevin Scanlon of Lee-Moore Capital reported hotel occupancy is up 20-30% since Jan 2021. AC Hotel in Glenwood South in Raleigh opened; LMCC is an investor. MOSAIC events are this weekend. There’s interest in Northwood Landing outparcels, but inline retail is slow.
- Lee-Moore Capital’s Kirk Bradley said industrial, life science and distribution are strong, especially in Sanford and Moncure. In Chatham Park, 1K single-family + 400 multi-family are now occupied or under construction, will be 2500 in 2024. Thales Academy opens in 2022, YMCA in 2024, donated 10-acre park + greenway, and swim + pickle ball club coming.
- Scott Hadley of Lee & Associates reported uptick in the purchase of large parcels of land in Lee, Chatham and Harnett Counties. Hunter Stewart said office is a challenge.
- TradeMark Properties’ Vijay Shah works with Cycle Bar, who has 200 units and is looking in Apex and Cary. Retail looks to expand; landlords stick to rents and struggle with buildout timelines.
- NC State’s Tom White will attend the Fuji Film groundbreaking today, 750 jobs with $100K wages and $2B investment in Holly Springs. He noted a Stevia farm closing, 3 battery production for electric vehicle projects, a semiconductor fabrication project and high-tech textile potential.
- First Horizon’s Beth Harrelson said borrowers, investors, developers are putting properties under contract and want to close by EOY with financing in place. Tax law changes are a factor.
Recent Comments