Charleston region’s apartment market riding high
Job growth and rising occupancies have labeled the Charleston region’s apartment market as one of the nation’s most robust, a new report says.
Real estate firm Colliers International said in its mid-year multifamily report that the Charleston market is “stable, growing and primed for mid- and long-term rental increases.”
The report said there was an occupancy of 94.9 percent amid the inventory of apartment units in June. The report says that essentially means the region’s apartment mix is “essentially at full capacity, which translates to the opportunity for current landlords to push rents.”
Landlords are doing just that since rents were pushed to an average of $858 in June. That’s up from $842 in March, according to the report.
The hot spots continue to be Mount Pleasant and downtown Charleston and surrounding islands, which averaged rates at $1,118 a month in June.
The lowest rates were in the North Charleston/Goose Creek area at $723 a month, according to Colliers’ report.
The silver lining for apartment hunters is that rates could subside at the end of year due to new developments coming online. That will mean some saturation in certain markets to push rates down to stay competitive.
New developments taking shape include the 276-unit Carolina Bay community in West Ashley, 76-unit East Central Lofts in downtown Charleston, 270-unit Rivers Edge in Mount Pleasant and 56-unit Central Heights in Summerville.
The Colliers report comes just as the local apartment front is heating up with a few ownership changes. Days ago, Florida-based real estate firm Trade Street Residential announced it acquired Daniel Island’s Talison Row high-end apartment community from Charlotte-based Spectrum Properties for $48 million, or about $175,000 a key.
The firm, which also owns St. James at Goose Creek apartment community, says it is looking to grow its local footprint with more acquisitions.
Investment firms Fairfield Residential and Brookfield Asset Management joined in the recent purchase of Mount Pleasant’s Paces Watch community for $96,552 for each of the 232 units and North Charleston’s Waverly Place community for $57,917 for each of the 240 units, according to Colliers report.
Earlier this year, HHHunt shed its local single-family operation to focus all of its efforts on growing its multifamily business in the area. Blacksburg, Va.-based HHHunt is developing the 320-unit Abberly Crossing apartment community across from Joseph R. Pye Elementary School on Patriot Boulevard in Ladson.
Reach Tyrone Richardson at 843-937-5550 and follow him on Twitter @tyrichardsonPC.