Enrollment growth at the University of Arkansas and an overall increase in Northwest Arkansas' population prompted construction of several new apartment complexes in recent years.
The university added more than 8,500 students between 2002 and 2012, ranking seventh on the Chronicle of Higher Education's list of the country's fastest-growing public institutions. The Fayetteville-Springdale-Rogers Metropolitan Statistical Area, which includes Washington, Benton and Madison counties in Arkansas and McDonald County in Missouri, grew by about 113,000 residents over the same time period, according to U.S. Census Bureau estimates.
Developers have responded to the university growth by adding more than 3,000 bedrooms in the past three years in Fayetteville. The complexes come furnished with utilities paid. Students rent by the bedroom and share a common living area -- much like a suite-style dorm.
The Cardinal at West Center, a 471-bedroom complex just south of the university's Harmon Avenue Garage, was the only complex with more than 50 units to open in 2014, according to a year-end market analysis by CBRE Northwest Arkansas.
Several more are on the way. Two complexes set to open in Fayetteville this fall will add another 900 bedrooms, Sterling Frisco Phase II and Harvey's Hill, across from The Cardinal.
It's not just student housing either. With vacancy rates well below 5 percent, developers of traditional, market-rate apartments are building or planning some big projects, too.
Specialized Real Estate Group's latest, across Steele Boulevard from Malco Razorback Cinema, will target young professionals. Tenants will rent by the unit -- not by the room. And Fayetteville planning commissioners approved the second phase of Lindsey Management Co.'s Links at Fayetteville earlier this year.
In Rogers, a luxury complex called the Pinnacle Point Apartments is scheduled to open by this fall. Planning commissioners permitted the Palisades at Pleasant Grove on 19.8 acres near Academy Sports, 3855 S. 26th St., in November.
And three market-rate apartment projects -- The Trails at Rainbow Curve, Thrive Bentonville and The Parc at Bentonville -- are in the works in Bentonville.
Northwest Arkansas planning offices issued 177 building permits for multifamily projects in 2014. That's up from 49 permits the year before. The 2014 projects were valued at $164.4 million compared to $41.1 million in 2013. The data includes duplexes and townhouses.
"The Northwest Arkansas apartment market continues to remain strong," Brian Donahue, CBRE senior associate, said in his commercial real estate company's year-end report.
Joel Walsh can be reached by email at [email protected] or on Twitter @NWAJoel.
NW News on 03/29/2015