CWP in the News: Volusia-Flagler Area Seen as Up and Coming
Originally appeared in Daytona Beach News Journal, Published: Saturday, April 11, 2015 by Clayton Park
Signs of the Volusia-Flagler area’s rising economy are showing up in an increasing number of ways.
Unemployment and foreclosures are down, hiring is up, the population in both counties is growing, and new construction projects are springing up practically everywhere.
The area is also becoming a magnet for national and international retail and restaurant chains, including Swedish “fast-fashion” apparel giant H&M and the Texas-based Cheddar’s Casual Cafe Inc. — both coming to the Volusia Mall later this year.
And let’s not forget JetBlue’s plans to begin offering daily direct flights from New York to Daytona Beach early next year,
Now comes more good news: The recent sale of a luxury apartment complex in Port Orange for nearly $40.3 million.
The buyer is a Nashville, Tennessee-based company called Carter-Haston Real Estate Services Inc., whose website now lists the Whitepalm Apartments on Williamson Boulevard as its only community in Volusia County.
Why is that a big deal?
Let local real estate observers explain: “It shows that the national real estate investment community is looking at the Daytona Beach area as an up-and-coming area — an area that will support higher-end apartments,” said Charles Lichtigman, chairman of commercial real estate brokerage Charles Wayne Properties in Daytona Beach, who was not involved in the deal.
The sale of the 306-unit Whitepalm Apartments, across the street from The Pavilion at Port Orange shopping center, works out to more than $131,000 per unit.
That’s comparable to what similar properties might sell for in larger metro areas, but significantly more than what apartments in the Daytona Beach area have typically fetched, Lichtigman and other local observers say.
The sale comes on the heels of last year’s $45 million sale of another luxury apartment complex, the 360-unit Andros Isles in Daytona Beach, which works out to $125,000 a unit.
Luxury units filling up
Most of the units at Whitepalm are now occupied, with only 37 units remaining, according to Ilia Wolf, the complex’s property manager.
Rents for the 1-, 2- and 3-bedroom units at the complex now go for between $913 to $1,583 a month, up from when it opened.
That’s also an encouraging sign, Lichtigman said. “It’s indicative of the fact that we’re moving out of the recession,” he said of the apparent tenant demand for luxury apartments.
BETTING ON AREA’S FUTURE
With the Trader Joe’s distribution center along Interstate 95 and $400 million Daytona Rising renovation of Daytona International Speedway nearing completion and more projects in the works, Lichtigman said “the momentum is gathering.”
Roy Akins, vice president and manager of the commercial division for Adams, Cameron & Co. Realtors, said success tends to breed more success.
“I like to use the analogy of a truck stop,” Akins said. “If there’s a lot of trucks parked there, it must be a nice place to eat. It (the projects) gets more developers and investors to look at this market.”
Seeing national real estate investors snapping up properties here suggests locals aren’t the only ones thinking better times are ahead.