Downtown South Development

[Matt Piercey]

Hi BP!

Recently had a real estate agent send me some info on a new residential development that'll be located near the Downtown South Development telling me it's an obvious appreciation play. Trying to find more info on the Downtown South Development but its website online as very little to say. Looking for more info on buying in that area (typically a bit south of that area) as it seems like an obvious play for investors. Are investors already scooping up everything in the surrounding areas there or am I missing something since the agent didn't say a ton about it other than that? Thank you in advance for any feedback! 

[Pat Lulewicz]

A lot of apprehension and financial difficulty in purchasing in that area + East Downtown (inside the beltline) given the current demographics and economics. You have to have the cash to stick it out as you won't see much if any cash flow, the property will be management intensive, and the runway isn't 2-3 years but more like 10...development is great but remember that these companies are playing the long game of decades not years.

Just approved this week - 130 Kindley was changed from 20-story to 40-story and will be 2-3 high rises. This is a plot of land right next to 120 Kindley called City Gateway Apartments which is a 7-story apartment building with almost 300 units and 121 Kindley called Mira Raleigh which broke ground this month and is expected to bring about another 300 units. This entire area is primed for 5-10 year runway growth.

Don't sleep on the work happening down the SW corridor along US-1 into Apex, and between Apex and Holly Springs The Veridea project just had a new round of plans released and it continues to grow in scope. Lennar is building another few hundred units just north of Veridea. Grace Christian is consolidating campuses and building its new school next door.