Northwest Arkansas Apartments Fill Up

Most new construction still aimed at university students

The Domain at Fayetteville is the newest student housing community serving University of Arkansas students. The complex is within walking distance of the university and Baum Stadium. The complex offers one, two-, and four-bedroom apartment flats and town-homes.
The Domain at Fayetteville is the newest student housing community serving University of Arkansas students. The complex is within walking distance of the university and Baum Stadium. The complex offers one, two-, and four-bedroom apartment flats and town-homes.

It is a good time to be an apartment owner in Northwest Arkansas.

Units are full and rents are increasing, according to a report by CB Richard Ellis, a commercial real estate brokerage firm.

“All signs point to a healthy apartment market in Northwest Arkansas,” said Brian Donahue, senior associate with the brokerage firm. “Any falloff from the recession seems to be over.”

By The Numbers

Apartment Rents

Below are the average rents for a two-bedroom, two-bath apartment.

Average Rent Average Square Footage Rent Range

Rogers $823 1,128 $395-$1,260

Bentonville $698 1,039 $525-$795

Fayetteville $662 1,007 $425-$1,281

Springdale $591 988 $490-$695

Source: CB Richard Ellis

Overall apartment occupancy at the end of 2012 in Northwest Arkansas averaged 97 percent, up from 95 percent at the end of 2011.

Average rents rose $6 per month between 2011 and 2012.

Vacancy rates are low, but investors are holding back on flooding the market with new units. Donahue said developers may be waiting for three new student-focused apartment projects in Fayetteville to be completed.

The three projects — Sterling Frisco, The Domain and The Vue — are all slated to be open before school starts next fall. The trio of projects have 591 units with 1,933 beds.

These projects rent bedrooms rather than units and rents typically include utilities, Wi-Fi and cable. The apartment communities have the feel of a resort, catering to a younger crowd. Amenities include gaming rooms, tanning beds, coffee bars, home theaters and study rooms.

Another rent-by-the-bedroom complex, The Grove, opened in Fayetteville last fall. Campus Crest, based in North Carolina, owns the 232-unit, 632-bed complex.

Blake Lee, a University of Arkansas student, moved into The Grove Apartments on South School Avenue in August.

He said although the complex is new, he’s not impressed with facilities.

“It’s not that nice and not great quality,” Lee said. “It seems it was built rather quick just to get it up.”

Katie Smith said she moved into The Grove this semester as a transfer student from Michigan State University.

“I needed somewhere to live,” she said. “It’s easy, and it’s furnished. It’s not managed very well, but I guess it’s nice that I have my own bathroom and stuff like that.”

Both Lee and Smith said thin walls make for loud living conditions at times. Lee said he planned to find a new place to live when his lease expires.

Hayley Cook, Campus Crest spokeswoman, declined to comment on occupancy rates or comments made by student residents.

Tom Reed, a partner with Streetsmart Data Services, said he is surprised there aren’t more projects being built now, specifically in Benton County.

“That may be an indication that we are smarter,” he said. “Even though vacancy is very low, developers may be taking a wait-and-see attitude to see if it stays at that level.”

Lindsey Management is moving forward with a Bentonville project. The company started construction on an expansion of a complex. Copperstone Apartments Phase 2 will add 84 units.

Scott Rogerson, Lindsey spokesman, said expansion will be completed in early fall.

Lindsey Management also began work with Bentonville to build a new phase of The Links at Rainbow Curve. The Bentonville Planning Commission voted to amend the city’s land use plan for the site, but plans must still go through the re-zoning and large-scale development phases.

Rogerson said there’s not a timeline yet for expansion of The Links, but the company wants things to be in place when they are ready to move.

“There is a lot of growth in Bentonville,” he said. “The Fayetteville market is served right now.”

Bentonville planning commissioners also approved a planned 104-unit complex at 2606 E. Central Ave. in December.

Annette Brightwell, special projects planner for Bentonville, said the city has not yet received any building permits for the project.

Donahue expects to see more construction in the near future.

“It’s just a matter of time,” he said. “As the year goes on we will see more plans for additional units in Northwest Arkansas communities.”

Tony Hernandez contributed to this report.

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