Holly Grove native Jerry Webster, who now lives in Little Rock and is a successful commercial & industrial real estate developer, is featured in this Arkansas Business story. See 8th paragraph and below....
Pulaski Apartment Market Booms, 1,500 New Units to Come in 2006 11/21/05 By George Waldon, Arkansas Business
Occupancy hit 94.7 percent for Pulaski County apartments during the nine months ended Sept. 30. That’s the highest occupancy for the market since 1995 and comes on the heels of two successive years of ever-so-slight decreases.
Ted Bailey III, partner in Multifamily Group LLC of Little Rock, said a fairly tight market has gotten even tighter. He attributes some of the upswing to an influx of Gulf Coast residents displaced by Hurricane Katrina.
“We saw a good uptick, primarily in the class B and C occupancy,” Bailey said. “I don’t know how long term it is. But I have a suspicion that a good number of people will get a job and discover they like Little Rock and want to stay.
“If you’re an apartment owner, it’s an awfully good market to be in.”
During the third quarter, occupancy in 6,347 units built during the 1980s was 96.6 percent. For 10,332 units built prior to the 1980s, it was 92.8 percent.
Strongest of all is the 96.9 percent occupancy among 3,612 units at new projects. The numbers reflect that the market is more than holding its own amid an influx of new units and continued construction.
More than 1,500 units are scheduled to come on line between now and the end of 2006 as more investors get into the market or expand their presence.
Jerry Webster, president of Little Rock’s Webster Corp., expects to see more upper-end apartments and tax credit-driven projects enter the construction pipeline.
“The market is running true to form,” Webster said. “We never have any wild fluctuations, and that’s a tribute to the market. As far as new construction goes, we haven’t seen the end of it. The market is too good, and interest rates are too good.”
Helping attract others is the success of projects such as Stonebridge at The Ranch. More than 200 of the 260 planned luxury units have been leased with only minimal concessions, and 18 units are still under construction.
“It’s certainly a sign of a robust apartment market to see new projects lease up quickly,” said Richard Cheek, partner in the Multifamily Group LLC. “When Stonebridge came in, they offered superior amenities and three weeks free rent on a 13-month lease.
“It’s nice to see luxury apartments come to Little Rock and add diversity to the market.”
Embrey Partners of San Antonio brought a whole new level of apartments to the market with Stonebridge. The project features wider breezeways for ease of moving, 9-foot ceilings, crown molding, granite countertops and sculptured cutpile carpeting.
Multifamily Transactions
High apartment occupancies have prompted increased interest from buyers and sellers.
Apartment sales activity picked up during the past 12 months, with 10 projects changing hands in transactions of $1 million or more. Two of the sales featured properties undergoing redevelopment as condominiums.
The former Riverview Apartments at 810 North St. in downtown Little Rock will become a 73-unit condo project dubbed The Cliffs.
Riverrock LLC, an investment group led by Henry Jordan Jr. of West Helena, purchased the 2.5-acre development for nearly $5 million from Downtown Riverview Ltd., led by Dr. Rufas Thrower Jr.
The project, considered a pioneering effort for market-rate apartments in downtown Little Rock, was in the throes of foreclosure preceding the sale.
“It’s a classic case of a property getting built before its time,” Webster said.
A second condo conversion is the 56-unit Windsor Arms project in Little Rock. GK Properties LLC, led by Glen Kubezcka, acquired the 2.6-acre development at 1601 N. Bryant St. for $2.5 million from Windsor Arms Apartments LLC, led by David Henry.
The 20.2-acre McCain Park Apart-ments development in North Little Rock tops the sales list at $12.3 million. Trivest McCain LLC of Dallas bought the 320-unit complex at 3900 McCain Blvd. from McCain Development Co., led by Andy Collins.
The Pines Apartments, a 257-unit complex in southwest Little Rock, rang up a $6.6 million sale. An investment group from Bronxville, N.Y., 5813 Baseline Road Realty Co. LLC, purchased the 10.8-acre development at 5813 Baseline Road from Blue Valley Apartments Inc. of West Palm Beach, Fla.
The 242-unit Ridgeview Apartments in North Little Rock changed hands in a $4.8 million deal. NHDC Ridgeview Apartments Inc. of Rancho Cucamonga, Calif., acquired the 7.5-acre development at 1707 Arrowhead Road from Beal Bank of Dallas.
The 132-unit Plaza Towers Apart-ments project in Little Rock tipped the scales at $4.1 million. PT Apartments Ltd., led by David Henry, bought the 2.5-acre development at 6115 W. Markham St. from Plaza Towers Apartments LLC, led by Joe Selz.
The 112-unit Old Oaks Apartments complex in southwest Little Rock sold for $3.8 million. The Oaks Apartments Ltd., led by Deming Henry, purchased the 8-acre development at 7700 N. Chicot Road from Old Oaks Ltd., led by Lyndell Lay.
The 196-unit Shorter College Gardens Apartments in North Little Rock is under new ownership after a $2.8 million deal. Intrepid Investments Inc. of Hot Springs, led by Christopher Schultz, acquired the 10.3-acre development at 800 Beech St. from Wilshire Shorter Ltd., led by George Mays.
The 100-unit Rosewood Apartments complex in southwest Little Rock drew a $1.75 million sale. Marshall Property Management LLC, led by Don and Melba Marshall, bought the 5-acre development at 6600 Lancaster Road from MEE V LLC, led by Martin Edwards Jr.
The 100-unit Willow Bend Apartments complex in Jacksonville rang up a $1.5 million sale. Willow Bend Properties LLC, led by Patrick McGuire, purchased the 10.5-acre development at 300 Marshall Road from Willow Bend Inc., led by Loyd Walker.
-- Edited by Jane Dearing Dennis at 00:34, 2005-11-30
