Welcome to the

2013 Orange ChathamDevelopment Briefing

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Orange-Chatham County Development Briefing

The Residential Real Estate Market

September 11, 2013Mark Zimmerman

All data provided by Triangle Multiple Listing Service and 10K Research and Marketing

2012 Through 2013Do We Have Momentum Yet?

25

25 15

25 15 21

25Triangle

15OrangeCounty

21ChathamCounty

Consecutive Month Sales Growth Increase vs YA

2012 was a Good Year2013 is a Better Year

• Sales up• Prices up• Days on Market down• Inventory down

Bye, Bye Buyers Market

• Market Back to Equilibrium or Better– 6 months supply in Chatham

• vs 8 months YA

– 4 months supply in Orange• vs 6 months YA

Triangle Strong

Orange, Too.

And Chatham

Moving Through Inventory

Selling Faster, For More

Moving Through Inventory

Selling Faster, For More

Moving Through Inventory

Selling Faster, For More

1st Half 2013 - Sales vs YANew Construction

Triangle Orange Chatham

Total +28% +30% +29%

New +12% +63% +8%

Resale +32% +28% +40%

% New 19% 13% 39%

1st Half, 2013 Sales by Price

23%

42%

22%

14%

Orange County Price Points

0-200

200-400

400-600

600+

21%

50%

23%

6%

Chatham County Price Points

0-200

200-400

400-600

600+

Detached vs Condo/Townhouse1st Half 2013

72%

28%

Orange County

DetachedMulti

91%

9%

Chatham County

DetachedMulti

We Are Less Distressed

• TMLS distressed listings down – -38% below YA

• Only 3% of Listings– vs 5% YA

2013 Momentum Has Shifted

• Sales, Prices up• Inventory, Days on Market down

• Showings, Pendings Remain Strong

• Moving to a Seller’s Market• Coming Shortage of New Construction

2013 Momentum Has Shifted

COMMERCIAL REAL ESTATE

MICHAEL CLAYTON, OWNER, BIC

MARKET TRENDS FOR COMMERCIAL REAL ESTATE IN

ORANGE COUNTY

Overview of:

2012 4th Quarter Comparison;

Commercial Real Estate Categories, i.e. Office,

Retail, Industrial, & Flex Space;

Vacancy Rates & Pricing by Category;

Trends in Commercial Real Estate Vacancy,

Pricing, & Concessions

2012 4th Quarter

Review Source: The KARNES Report

Office – Orange County

Retail – Orange County

Industrial – Orange County

Market Overview

2nd Quarter 2013

Sources: The KARNES Report, Loopnet

Office

The Willowcrest Building

Vacancy Rates & Pricing

Office – Orange County

Vacancy Rates & Pricing

Office – Orange County

Vacancy Rates & Pricing

Office – Chapel Hill

Retail140 West Franklin

Vacancy Rates & Pricing

Retail– Chapel Hill

Vacancy Rates & Pricing

Retail– Hillsborough

Vacancy Rates & Pricing

Retail– Chapel Hill

Vacancy Rates & Pricing

Retail– Chapel Hill

Vacancy Rates & Pricing

Retail– Hillsborough

Industrial/Flex Space

Chapel Hill Industrial Park

Vacancy Rates & Pricing

Industrial – Orange County

Vacancy Rates & Pricing

Industrial – Orange County

Development Briefing:Chatham County

Brian BockVice Chair

Chatham County Board of Commissioners

Powerpoint prepared by: Dianne Reid, PresidentChatham Economic Development Corporation

PRESENTATION OVERVIEW

Background and Context for Focus on Commercial and Industrial Development in Chatham County Conceptual Land Use Plan

Recent Projects

Major Proposed Developments

BACKGROUND AND CONTEXT

Basic Facts:

• 709 Square Miles• Population: 63,564• Median Household Income: $55,424• Current Unemployment Rate: 6.1% (July 2013)

BACKGROUND AND CONTEXT

Chatham County as Bedroom Community:

• 55 percent of resident labor force commutes to other counties for work• $0.64 of every consumer dollar is spent in other counties

BACKGROUND AND CONTEXT

Tax Base

Residential $6.5 Billion 77.13%

Present-Use $1.2 Billion 13.92%

Commercial $0.6 Billion 7.49%

Industrial $0.1 Billion 1.46%

Other $0.0 Billion 0.00%

$8.4 Billion 100.00%

BACKGROUND AND CONTEXT

Cost of Community Services Study (2007)

Residential $1:$1.14

Commercial $1:$0.33

Farmland $1:$0.58

CONCEPTUAL LAND USE PLAN

RECENT PROJECTS

RECENT PROJECTS

RECENT PROJECTS

RECENT PROJECTS

MAJOR PROPOSED DEVELOPMENTS

MAJOR PROPOSED DEVELOPMENTS

Approved Commercial and Office Space on 15-501 Corridor

•510,000 SF- Briar Chapel•125,000 SF – Polks Village•348,500 SF – Williams Corner•81,000 SF – Fearrington Place

MAJOR PROPOSED DEVELOPMENTS

Proposed Industrial, Commercial and Office Space

•Moncure Megasite•Chatham-Randolph Megasite•Chatham Park

CHATHAM-RANDOLPH MEGA SITE

CHATHAMPARK

Contact

Dianne Reid, President Brian Bock, Vice Chair

Chatham Economic Chatham County

Development Corporation Board of Commissioners

dreid@chathamedc.org brian.bock@chathamnc.org

919-542-8275 919-533-9807

ORANGE COUNTY ECONOMIC DEVELOPMENT

Steve Brantley

Morinaga & Co., Ltd.

• 114-yr old company; founded in 1899 in Tokyo, Japan. • American subsidiary is based in Irvine, CA.• World-class confectionary & candy maker with nearly

$2 billion in annual global sales. • Has over 40 product lines.• Asia’s equivalent to a Hershey’s, Mars or Nestle; & ranks

equal to Kellogg Company in sales.• #1 candy company in Japan.• Japan is the world’s 2nd largest

confectionery market.

Recruitment of Project Rainbow

Recruitment began in February 2012

• Competition: Toronto, Portland OR, Philadelphia PA, Richmond VA, Atlanta GA, & 18 sites in 12 N.C. counties.

• Company made 11 visits to Orange County (including Chairman Gota Morinaga & President Toru Arai).

• Interstate visible site became a criteria during 3rd visit.

• BOCC held 3 closed session meetings to discuss the project.

• Governor McCrory & N.C. Department of Commerce’s Secretary Sharon Decker met company twice in 2013.

• January 2013 - Orange County & Atlanta became finalist sites.

• September 3, 2013 - Morinaga selected Orange County.

Morinaga’s Investment Plans

Investment: $48 millionEmployment: 90 - 120 jobsAverage Salary: $37,969Annual Payroll: $3.4 million + BenefitsBuilding Size: 120,000 ft²Type of Operation: Mfg. of “Hi-Chew” candySite Size & Location: 21 Acres (Buckhorn EDD)

The Company has not committed to making any additional investment at this time. However, an expansion of equal size may eventually occur, since the site acreage is large enough to allow for the facility to double.

Key Recruitment Partners

• Orange County Board of County Commissioners Manager’s Office Economic Development, Planning & Inspections Visitors Bureau, Public Affairs

• City of Mebane• NC Department of Commerce• NC Department of Transportation• Durham Technical Community College• InSpec Group

Hi-Chew

Bag & Stick Varieties

Hi-Chew

Site Photo

Planned Infrastructure to Site

Our Morinaga Success Story:• Highlights Orange County’s efforts to diversify our local

economy, tax base & employment opportunities.

• Creates more & better hi-tech jobs, with health & related employment benefits, for our residents.

• Demonstrates how the BOCC’s commitment to prepare our Economic Development Zones with utilities, zoning, incentives, & thoughtful use of the ¼ cent sales tax for economic development, has proven to be a winning formula for the long term.

• Highlights the public’s commitment to economic development by way of passage of the ¼ cent sales tax for economic development.

Conclusion

Chatham Park

Philip CulpepperConsulting Planner

Chatham Park

Chatham Randolph Megasite

Presentation by:NAT TAYLOR

Taylor & McChesney Commercial Properties

NC-54

US 15-501

Orange/Chatham Development Briefing

September 11, 2013

Process

Original Master Plan presented

2007

Community Forum

2008 2009 2010 2011 2012

Neighborhood Conservation District Petition Process

Glen Lennox Residents Meetings

NCD Development Committee Appointed

GP Vision Presentation #1

GP Vision Presentation #2

GP Vision Presentation #3

GP Vision Presentation #4

NCD Development Committee Meetings

Town Visioning Workshop

2013

NCD Approved (Rezoning)

Council Meetings on Dev Agmt

A for every meeting Grubb Properties participated in Chapel Hill meetings

Dev Agmt Technical Team Meetings

Guiding Principles

1. Value the history of neighborhood and the Glen Lennox apartment and commercial property

2. Preserve street network

3. Create & maintain open public space

4. Balance the new development with preservation of the trees and tree canopy

5. Keep a portion of the buildings

6. Transition and vary density and height of the buildings

7. Provide landscaped buffers for sensitive neighbors

8. Preserve Church of the Holy Family’s visibility and accessibility

9. Create an effective transportation strategy

10. Encourage community sustainability

11. Encourage and support community diversity

Concept Plan

Concept plan envisioned with community and created with careful attention to guiding principles

Master plan is a 50 year vision

Foresee multiple phases over 20 years

Phases based on market conditions and approval of transportation improvements. First phase likely to be at NC-54 & Hamilton Road

NC-54

15-501

Contact Rachel Russellrrussell@grubbproperties.com ▪ 704.405.1638

Hillsborough – Happenin’ Again

Our Vision for Hillsborough is a

prosperous Town,

filled with vitality,

fostering a strong sense of community, which celebrates

and preserves

its unique heritage

and small-town character.

100

A few facts for those unfamiliar…

• Established in 1754 – County Seat

• 5.5 square miles of city limits, 9.7 square miles of total planning jurisdiction

• 6,584 population per 2007 state estimate

• 94 town employees

• Treats own water and wastewater for 5,000 customers

Housing MarketFor the first time in 5 years, the town will soon have 3 subdivisions under construction in the city limits.

–Corbin Creek Woods – 18 lots near Town Hall

–Forest Ridge – 233 single family homes across from the Triangle SportsPlex

–Waterstone – 139 single family homes and 128 townhomes

Corbin Creek Woods

• 18 in-town lots adjacent to the Historic District

• Improves walkability access to 2 schools

Forest Ridge

• Lots sizes ranging from Townhome to 13,000 sf+

• Across US 70 A from SportsPlex

• Walking access to Speedway & downtown via Riverwalk

Waterstone

• Single Family portion (green area) proposed to contain about 139 lots

• Adjacent yellow pod approved for 128 townhomes

• Pending sale to Ashton Woods expected to close upon SAD bond sales

• Star indicated UNC Health Care location

UNC Health Care in Waterstone

• Professional offices opened in August.

• Construction continues on the main bed wing that will have 68 beds & emergency department.

• Full service expected in 2015.

Waterstone S.A.D.

• Bonds are sold to fund infrastructure improvements.

• Create special assessment or tax district benefitted by improvements.

• Land owners within the district pay extra tax to retire the debt.

• Bonds are currently being marketed to fund remaining infrastructure. This investment will make all parcels in Waterstone development ready.

What’s in the pipeline?

• Orange Grove Road townhomes– Annexation and development plan for about

100 townhomes

• NC 57 business park– Creates 11 lots 1-3 acre parcels zoned for light

industrial development; utilities in place

109

Riverwalk II

• Construction on the 1.8 mile paved greenway connecting downtown to surrounding attractions will be underway near the end of September.

• The town is following-up with the design and construction of Phase III that will connect to the Occoneechee Speedway Trails.

Downtown Access Improvements

Partnering with NCDOT to improve pedestrian safety and access in downtown

– Removing some on-street parking

– Widening sidewalks

– Improving ADA compliance at intersections

Hillsborough – Happenin’ Again

Our Vision for Hillsborough is a

prosperous Town,

filled with vitality,

fostering a strong sense of community, which celebrates

and preserves

its unique heritage

and small-town character.

CODE STUDIOLee Einsweiler

Regulating Plan

Building Heights

New Streets

Types of Frontage

Wall Sign

Awning Sign

Canopy Sign

Projecting Sign

Crown Sign

Shingle Sign

Large Ground Sign

Upcoming Events

• Sept 17 - Hampton Inn Hotel Ribbon Cutting

• Sept 18 – Dollars & $ense: Researching the Tax Base

• 12 noon, Chapel Hill Public Library• 6 pm, Extraordinary Ventures

Thank you for attending the

2013 Orange ChathamDevelopment Briefing

Presented by

Breakfast Sponsor

Gold Sponsors

Silver Sponsors

Bronze Sponsors

Greening Sponsor

2013 Community Champions

2013 Community Investors

2013 Platinum Sponsors

2013 Gold Sponsors

2013 Gold Sponsors

Our Newest Gold Master Sponsor

View the entire presentation on SlideShare

SlidesShare.com/carolinachamber