High-end Community Planned for The Queen City

By Amalia Otet, Associate Editor

The Charlotte metropolitan area is currently seeing an improvement in home sales, indicating signs of a market rebound; numbers show a sound 9.7 percent increase in closings as compared to the same period last year—from 1,980 in July 2010 to 2,173 in July 2011—according to a report released by the Charlotte Regional Realtor Association. The median sales price also increased 2.8 percent, from $159,000 in July 2010 to $163,500 in July 2011. Average home sales prices for the month, however, were $213,354, dropping 1.5 percent from July 2010’s $216,528.

Having built a strong economy and enjoying a steady population growth, The Queen City’s future looks bright; many of the best investment opportunities today are presenting themselves in the multifamily industry where demand is continuously growing. “Charlotte was a middle-of-the-pack type of market up until the last few months,” Jay Denton, vice president of research with apartment market research firm Axiometrics, told MHN. “Its annual rent growth ranked 50th out of 88 markets in January. Now it has the 10th best annual rent growth in the country, at 8 percent. Presently, the average occupancy level in the city is a respectable 94 percent, the highest since 2007.”

Considering the favorable economic climate, Tampa, Fla.-based Phillips Development & Realty LLC decided to move ahead on its plans to develop a high-end apartment community along Mallard Creek Rd., which will include 328 residential units. The company secured financing for the project through a Housing and Urban Development program in the form of a 40-year, fixed non-recourse loan.

The upscale apartment community will occupy 30 acres near the University of North Carolina. With easy access to major thoroughfares like I-85 and Hwy. 29, and in close proximity to prominent employers such as AT&T, Carolina Medical Center, IBM and the University Research Park, the development is going to provide one-, two-, and three-bedroom units.