New Hampshire Market Forecast 2018
According to most of the national models, the primary markets have peaked; therefore investors seeking higher yields continue to flock to outlying areas where opportunities exist. We continue to see countless examples of both local and outside developers, who are buying “value add” opportunities across New Hampshire.
Often times, these properties have been owned by the same families for multiple generations and therefore debt is low or nonexistent. They are often managed for the benefit of the family, and as a result the rents are below market and upgrades to the units are limited. For example, recently in Concord, New Hampshire Michael Charron and Tom Duffy brokered the sale of nearly a half a dozen, prominent downtown brick buildings. They sold to outside investors with redevelopment plans to revitalize the buildings, by renovating into modern apartments and offices. The City of Concord recently invested over $15,000,000 in the downtown, in an effort to modernize the city and its streetscape. The streets were reconfigured to allow for outside dining at local restaurants, and to encourage social spaces for tourists and locals to gather. Local developers like Steve Duprey and John Chorlian have been instrumental in promoting Concords progress and vision for many years.
There are robust opportunities to be had by investing in multifamily assets located in New Hampshire cities. Derrick Hawthorne, Vice President of asset management and acquisitions at Draper and Kramer noted the following in a recent article in the Multi-Family Executive: “The best add value opportunities are in rising markets where values in general are increasing.” As a result of increased fundamental drivers like job growth, technology, start-up companies, regional medical centers and long standing higher education institutions, renter demand is strong. Investors are confident investing in communities like Nashua, Manchester, Portsmouth and Concord due to the strong fundamentals. For instance, Michael Charron and Tom Duffy recently brokered the sale of over 90+ units in Nashua for $6,300,000. A prominent New Hampshire family had owned and managed the portfolio for many years.
As growth in New Hampshire spreads across the state, we continue to see groves of technology and startup companies coming into areas like Manchester, Portsmouth and Concord. Real Estate investors like WBC Properties, a Manchester company who owns hundreds of apartments, have recently purchased 1087 Elm Street in downtown Manchester. They have redeveloped part of the circa 1900’s building into WBC Office Suites. The co-working class A-space offers co-working flexible spaces for professionals like engineers, attorney’s, project managers, developers and entrepreneurs. They provide co-working spaces and flexible plans from hot-desks to private offices.
According to the fundamentals and by all measures, New Hampshire’s growth and prosperity has never looked better. National companies continue to invest in our towns and cities, and ambitious developers and entrepreneurs are reshaping our downtowns, according to how we want to live and play. The opportunities to invest in multi-family and downtown assets have never been greater.