Triangle Area Real Estate News & Information

Now is the perfect time for investment property seekers to looking into buying a rental home in Chapel Hill. Over the past three years, we have seen the value of Chapel Hill apartments nearly double. This upward trend is a good sign for those interested in investing in Chapel Hill property.

It Started with a Massive Renovation

Three years ago, some Chapel Hill neighborhoods were not as desirable as they are today. With rising crime rates and apartment buildings that had not seen any recent renovations, the value of select neighborhoods was low. However, that changed when prominent Chapel Hill real estate investor, Daniel Eller purchased then Timberlyne Village Apartments, as they were known back then.

Once acquiring the property, Eller set to work with an extensive renovation project. The building was completely renovated with new floors, windows, fixtures, appliances, and amenities. The building went from a common rental on the drab side to a modern apartment complex with fixtures and amenities in line with new builds in the area.

The 1980’s era building’s face-lift didn’t stop with renovating the 144 apartment units; the building was also renamed 86 North Apartment Homes. With an upgraded look and modern name, Eller then flipped the building, resulting in an astounding sale.

Chapel Hill Housing Values are Increasing

When Eller purchased the building three years ago, in 2013, he paid about $8.7 million. After the renovations, he was able to sell the building to a private real estate investor from Lakewood for an astounding $15. 65 million, almost doubling the original sale price.

What started as a neighborhood that was “falling into disrepair,” as Eller said, has now turned into a desirable neighborhood with features and amenities on par with new builds. According to Eller, “ Chapel Hill is a supply constrained market, and we believe strongly in its fundamentals.” Since the renovations, rental prices at 86 North range from $795 to $1,195.

Will the Trend Continue?

Although Eller sold 86 North to a private investor, he still owns several other apartment buildings in the neighborhood. Timber Hollow, Midtown 501, and 612 Hillsborough are still part of the Eller Capital Partners. For renters looking for value and security, renovated older buildings in Chapel Hill are a blossoming opportunity when it comes to investment properties.

For more information about setting up a rental property or purchasing an investment property in Chapel Hill, contact My NC Homes at 919-659-5173 today.