Multi-Fam Investing in Charlotte, NC

[D. McNabb]

Hi BP community, Im from NYC and thinking about moving to Charlotte, NC. Im interested in buying multifam properties in Charlotte or maybe Raleigh and was wondering if anyone has any insight on the North Carolina market and if it would be a good idea to invest there. Your feedback would be greatly appreciated.

[Jim Kittridge]

Charlotte and Raleigh are both very strong markets and equally as competitive. 

Yes, Charlotte has a lot of high end, class A supply coming to market, but most of it is concentrated Uptown and in South End. In my opinion, that is mainly a short-term concern for areas they are building them. Long term, Charlotte still needs an additional 72k units by 2030. We had ~135k units in May of this year.

The greater Charlotte metro has opportunities where there is are strong economic trends, a significant discount to replacement cost and therefore, well insulated from new supply. 

Also, I wouldn't conflate thin syndication deals with a market being strong or weak. There are more people going after fewer value add opportunities in strong markets which. Any syndicator can go to a risky market with higher cap rates and have a "great deal" on paper.