Blu South
920 Blu Central Rd., Pineville, NC, 28134, US
365 units
Jones Lang LaSalle, a North Carolina licensed real estate broker (“JLL”), has
been retained as the exclusive sales representative for Ten05 West Trade
(“the Property” or “the Asset”), a 2003-vintage midrise property featuring 190
apartment units , most of which have not been renovated. The asset’s premier
location in Uptown Charlotte is walkable to an extensive mix of restaurants, bars
and shops, and is also just minutes away from the heart of Uptown Charlotte, the
largest employment hub in the MSA.
Ten05’s market rate units have, on average, effective rents that are 25% lower
than those of their competitive set. The majority of Ten05’s unit mix consists
of classic units, which presents potential investors with ample opportunity to
renovate the units and increase rental rates. This strategy can effectively narrow
the gap between Ten05’s effective rents and the rents charged by its competitive
set.
The Affordable Housing Crisis in Charlotte, NC leaves the city undersupplied
by 36,000 affordable housing units. This major deficit in affordable housing is a
strong driver for rental demand at Ten05, which is currently significantly below
the max allowable rents per its Land Use Restriction Agreement. 40% of the units
at Ten05 are affordable at 60% AMI. Given where the 2024 Fair Market Rents are
projected for this AMI restriction, Ten05’s affordable rents are on average 23%
below market, providing a clear mark-to-market opportunity for new ownership
to significantly increase affordable rental income.
Ten05 is located in the Third Ward neighborhood of Uptown, Charlotte, the
focal point for all of the major employment hubs in the MSA. Not only does this
centralized location allow its residents to commute to the majority of the MSA
in 20-minutes or less, it provides tantamount urban amenities, including several
entertainment venues, museums, universities, bars, restaurants, and parks,
bringing every amenity a renter would ever need. The competitive set confirms
that renters have a strong enough appetite for renovated product in this location
to execute a value-add program in order to drive higher rents.