While the construction pipeline in Charlotte has encountered some hurdles, with vacancy remaining high and deals slowing, there’s still a positive outlook for the multifamily and build-to-rent markets. 

A growing population, a robust job market and increased demand for rentals have investors gaining more confidence in Charlotte’s strong fundamentals.

NFP, an insurance and advisory brokerage that provides specialized risk management to construction companies in Charlotte, is also noticing this shift.

“New construction starts have dropped significantly as developers are cautious amid high interest rates and inflationary pressures,” NFP Senior Adviser Peet Poillon said. “Despite this, Charlotte’s construction pipeline remains one of the largest nationally, particularly in multifamily and build-to-rent sectors.”

Poillon moderated a panel discussing how to make projects happen in today’s construction market at Bisnow’s Charlotte Construction and Development Conference on Nov. 4. 

Bisnow spoke with Poillon about the state of construction in Charlotte, his role at NFP and how the firm is helping advise construction clients.  

Bisnow: How would you describe the current state of the construction market in Charlotte?

Poillon: The current state of the construction market in Charlotte is characterized by a slowdown from the historic expansion highs of 2023 and 2024. Apartment completions peaked in 2024 with more than 16,700 units delivered, but 2025 is expected to see about a 30% decline in completions with approximately 12,000 units delivered.

While the market is currently in a “breather” phase after rapid growth, it’s expected to pick up as interest rates stabilize. The market is also absorbing these new units strongly, with absorption reaching record highs in 2024.

However, office vacancy rates are still elevated compared to national averages, and operating costs like taxes, insurance and maintenance continue to rise, squeezing operating income for property owners. The industrial and commercial construction sectors are experiencing a similar cautious slowdown, with developers focusing on completing ongoing projects and postponing new starts until demand rebalances. Labor shortages and material cost inflation remain key challenges.

Bisnow: Can you tell us about your role at NFP?

Poillon: My role involves advising construction companies on managing their insurance portfolios, mitigating risks related to labor, materials and project delays, and designing comprehensive coverage programs that fit the unique needs of builders and developers. NFP leverages its market expertise and broad carrier relationships to help firms maintain financial stability and protect against unforeseen claims.

Bisnow: What’s NFP’s place in the market, and how are you advising construction companies in the Charlotte area? 

Poillon: NFP has established itself as a trusted adviser and risk management partner for local reconstruction and development firms. We support clients by offering innovative insurance solutions, safety consulting and strategic advice on navigating the evolving construction marketplace, including adapting to regulatory changes, labor shortages and cost fluctuations. 

For construction clients, NFP provides tailored approaches to manage exposures related to workforce challenges, supply chain disruptions and project financing risks.

Bisnow: What were some of the hottest topics of conversation at Bisnow’s Charlotte event? 

Poillon: The current cautious but optimistic outlook for construction in Charlotte, impacts of rising interest rates on project financing, workforce challenges, sustainability and green building trends, and the future of urban development, including residential and commercial shifts postpandemic. 

We also discussed how developers are being strategic in timing groundbreaking and focusing on projects with strong preleasing or tenant commitments.

Bisnow: What were some of the key takeaways from the event? 

Poillon: Labor shortages remain a critical concern impacting construction schedules and costs, and developers and contractors must be agile in managing the supply chain and inflationary pressures. There’s a strategic focus on build-to-rent and multifamily housing due to strong local demand driven by population growth. Also, risk management and insurance advisory services are becoming more pivotal in navigating uncertainties.

While Charlotte’s construction market is moderating from recent highs, it remains active with strong underlying demand. NFP plays a crucial role in advising construction companies to effectively manage risk and adapt to market complexities, and Bisnow events provide valuable insights and networking to navigate these dynamics.

This article was produced in collaboration between Studio B and NFP. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.

Walker & Dunlop arranged a $176 million credit facility for seven single-family rental communities in various neighborhoods within the Atlanta, Georgia, MSA.

The Walker & Dunlop New York Capital Markets team, led by Jonathan Schwartz, Aaron Appel, Keith Kurland, Adam Schwartz, Michael Ianno, Jackson Irwin, and Christopher de Raet, arranged the financing on behalf of institutional investors advised by J.P. Morgan Asset Management. Brookfield Asset Management’s Real Estate Credit group provided the financing. 

The portfolio consists of 709 homes totaling 1.4 million rentable square feet across seven different communities, all situated within a 30- to 55-mile drive from Atlanta’s central business district. Located in Atlanta’s most sought-after suburbs, including McDonough, Loganville, Cartersville, Hoschton, Dallas, and Jefferson, the portfolio features a mix of 3-, 4-, and 5-bedroom homes with a variety of amenities.

Surging demand for build-to-rent projects has pushed Texas to the top of the nation for home rental construction in the pipeline, with Dallas-Fort Worth at No. 2 among all large metros based on the same metric.  

Courtesy NexMetro Communities

NexMetro Communities’ Avilla Boat Club rental community is located in Fort Worth.

The Lone Star State’s total of nearly 22,000 BTR projects on the way is over 56% higher than Arizona, which is the next closest state with nearly 14,000 projects in the pipeline.

The only metro to surpass DFW’s almost 8,500 home rental projects under construction was Phoenix, which has more than 13,000 BTR projects in the works, according to an analysis from Point2Homes using data from Yardi Matrix. 

Texas’ three other largest metros each placed in the national top 10 for under-construction projects of the multifamily housing option that feels more like single-family residential. Houston was at No. 5 in the nation with more than 4,600 BTR projects under construction, followed by Austin at No. 6 with 4,300-plus units on the way and San Antonio at No. 8 with nearly 3,000.

“As urban areas become more congested and expensive, there’s a growing trend towards suburban living,” Yardi Matrix Manager of Business Intelligence Doug Ressler said in a statement. “BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers.”

The biggest chunk of BTR projects under construction in DFW are Fort Worth’s more than 1,800 rental homes in the pipeline, CultureMap Dallas reported. More than a third of those will be part of Living Fully Orchard Farms development in Fort Worth.

McKinney has nearly 1,300 units on the way, the only other city close to Fort Worth’s total, though Princeton and Melissa also have huge BTR communities on the horizon. Oxenfree at Princeton will feature more than 400 BTR units, while Wolf Creek Farms will bring nearly 350 units to Melissa. 

The state’s strong job market, openness to remote work and business-friendly climate were cited as reasons for the growth of BTR in Texas. BTR’s affordability was also a factor, as Ressler said renters can save around $1,000 per month compared to elevated home prices and high mortgage rates. 

“The biggest hurdle to buying a home for BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market,” Ressler said. “On average, renting a BTR unit is cheaper than buying a starter home.”

Atlanta’s nearly 7,000 BTR projects on the way placed it at No. 3 in the nation, followed by Charlotte at No. 4 with more than 5,300 units in the pipeline. 

Crescent Communities will soon break ground on HARMON Jefferson Village, a 130-unit build-to-rent townhome project at 1500 Highwoods Blvd in Greensboro. It’s Crescent’s first BTR community in the area. They have built in Charlotte (photo).

The Triad Business Journal reports the project will cost $50 million. Move-in is slated for a year from now. Copper Builders will handle construction duties.

HARMON Jefferson Village will include three-bedroom and four-bedroom townhomes, ranging from 1,650 to 2,165 square feet. The company estimates that rents will be around $500 to $1,000 less than a monthly mortgage rate in Greensboro.

Outdoor amenities include a pool with nearby pavilion, grilling area and event lawn; an outdoor plaza area with outdoor seating; and a trailhead near an already existing walking trail and two ponds.

Crescent says it’s development portfolio has included more than 86 multifamily communities and 25 million square feet of commercial space since 1963. 

Chicago-based Core Spaces, a residential real estate developer, owner and operator, is now leasing at Oxenfree WeHo, a new rental community located in the Wedgewood-Houston neighborhood of Nashville, Tennessee.

Part of the company’s Build-to-Rent platform, Oxenfree WeHo spans nearly six acres and features a varied mix of 96 homes, including three—and four-bedroom multi-level townhomes. Over 20 homes are currently completed and move-in ready, with the first residents scheduled to move in July. With additional homes becoming available each week, all homes are slated to be completed by fall 2024.

Oxenfree WeHo will feature 18,700 square feet of indoor and outdoor amenities, including one of the largest private amenity lawns in Nashville. Core currently has approximately 3,000 BTR homes under development and in its pipeline in high-growth metros across the country, including Dallas-Fort Worth, Denver, Nashville, Austin, Charlotte and Florida’s Gulf Coast.

By now the duo of Novare Group and Batson-Cook should be pretty familiar with each other. A build-to-rent housing development in the works in Port Wentworth will be their 39th collaboration. The project will be on roughly 33 acres near State Route 21 and Interstate 95 near Savannah. This site is immediately adjacent to Wentworth Park Residences, a 328-unit multifamily community, which the joint venture partners also built.

Plans include five floor plans with three or four-bedroom units and attached one or two-car garages. Public amenities include an on-site clubhouse, pool and fitness center. 

The first phase of homes is scheduled for completion in late summer 2025. The project team includes ResiBuilt and Eagle Excavation as contractors. The development is capitalized by Ameris Bank as the lender, Marble Capital as the preferred equity provider, and BCDC and Novare Group as sponsors.

Tower Capital helped arrange a $19 million loan to refinance 99 townhomes developed in the first phase of Poplin Glen, a 268-unit BTR development in Charlotte. The loan replaced an original bridge loan Tower Capital arranged in July 2021 to acquire the townhomes at certificate of occupancy with the intention to lease all the units.

The sponsor, who has declined to be identified, will begin selling the individually platted homes in Phase 1 to homeowners individually as units become vacant. Redfin’s Jill Moyer has been brought on to handle the sales. The subsequent phases, including Phase 2 with 70 units and Phase 3 with 99 units, will remain rentals.

Tower Capital’s Kyle McDonough said, “Demand is increasing from buyers seeking to own a property and it made sense to adjust the plan to meet that homeownership market need.”

The initial phase of Poplin Glen, delivered in 2021 and 2022, consists of two-story, three-bedroom, 2.5-bath townhome units with one-car direct-access attached garages and backyards.

Crescent Communities’ Harmon Foxbank build-to-rent neighborhood on the outskirts of Charleston, South Carolina.

A major Southeast commercial real estate developer is teaming up with Chicago-based investment management firm Heitman to spearhead more than $200M in new single-family build-to-rent homes across four states.

Charlotte-based Crescent Communities and Heitman, along with an unnamed state pension fund, plan to start construction this spring on Harmon by Crescent Communities rental neighborhoods in North Carolina, Texas, Tennessee and Arizona, the company announced Thursday. 

The initial $235M investment will erect new three- and four-bedroom townhouses and single-family detached home communities full of amenities that will be offered for rent only, according to the press release.

“The expanding relationship with Heitman during a very challenging capital markets environment is a testament to this growing sector and the confidence in our brand,” Crescent Senior Managing Director Tony Chen said in the release.

Crescent is known for its Novel apartment brand and also develops and owns office, industrial and life sciences real estate. It first entered the build-to-rent category three years ago when it teamed up with Sumitomo Forestry’s DRB Group as its builder, with plans for communities in Atlanta, Charlotte, Raleigh and Charleston.

The Heitman partnership comes as build-to-rent is hitting a new peak. Developers unleashed 27,500 for-rent houses in 2023, 75% more than 2022, according to data compiled by RentCafe. More than 45,000 build-to-rent homes are underway in the U.S., with the bulk projected to deliver in 2025. Phoenix has the biggest pipeline with 4,000 units, followed by Dallas and Atlanta.

The industry is surging due to the high hurdle both prices and interest rates have placed on households to buy their own dwellings, along with the ongoing housing shortage. The build-to-rent platform gives households the space and features of single-family living without the capital outlay for maintenance and upkeep, industry experts say.

“We believe demand fundamentals for single-family rental housing will continue to grow at an attractive pace,” Brian Pieracci, head of North America private equity at Heitman, said in a statement. “Over the next decade, we expect a growing number of older millennials and retirees to rent as median home prices have grown at twice the pace of median incomes since 2000, making home purchasing less attainable and far less desirable.”

Canvas Residential is starting to release units for its 222-unit build-to-rent community in the Atlanta metro area. Center Park Group, the lead contractor, is finishing the buildout of The Rosemoor townhome community in McDonough, Georgia which kicked off in January of 2023. It’s the fourth time the two have combined efforts on BTR projects.

On 27 acres, The Rosemoor will feature two-story townhomes with one—and two-car garages. Residents will also have access to a playground, swimming pool, fitness center, and clubhouse.

Currently, 14 buildings are underway on site, with more scheduled for release this month.

Metro Atlanta trails only Phoenix and Dallas-Ft. Worth when it comes to build-to-rent homes constructed in 2023. The area saw 1,872 BTR residences that came onto the rental market. Phoenix had 3,806 and Dallas, 2,694, according to a report from the National Rental Home Council (NRHC) trade association.

Thompson Thrift Residential has sold Oakbrook Townhomes, an 89-unit build-to-rent community in Nashville’s suburb of Franklin, Tenn. Public records suggest the buyer, Arqitel, paid $44 million for the asset, nearly $500,000 a unit. Commercial Edge reports the sale involved a $19.8 million loan from State Farm Life Insurance Co. Walker & Dunlop brokered the transaction.

When the property was sold, the community was 91% occupied. Located at 1000 Legion Drive, the 6-acre property is near Interstate 65, roughly 17 miles south of downtown Nashville.

Completed last March, Oakbrook Townhomes comprises 18 buildings with two-, three- and four-bedroom floorplans ranging from 1,473 to 2,165 square feet. Residences feature private patios or balconies and attached two-car garages. Amenities include a heated swimming pool, spa, 24-hour fitness center, dog park and grilling stations.

For this year, Thompson Thrift is eyeing eight new residential developments. The firm also plans to expand in new markets in Georgia, Utah and Idaho.