WilmingtonBiz Magazine - 2022 Residential Real Estate by Greater Wilmington Business Journal / WILMA magazine

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blueprint Is there a

FOR

affordable

housing

THE BURBS ARE BOOMING REAL ESTATE MARKET SNAPSHOT

SPRING 2022

Published by

Greater Wilmington

BUSINESS JOURNAL

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(910) 405-1234

109 Pier Master Point, Suite 100

Wilmington, NC 28412

Newland is the largest private developer of mixed-use communities in the United States. With our partner, North America Sekisui House, LLC, we believe it is our responsibility to create enduring, healthier communities for people to live life in ways that matter most to them. newlandco.com | nashcommunities.com

NNP IV-Cape Fear River, LLC (“Fee Owner”) is the owner and developer of the Riverlights Community (“Community”). Fee Owner has retained Newland Real Estate Group, LLC (“Newland”) solely as the property manager for the Community. North America Sekisui House, LLC (“NASH”) has an interest in one of Fee Owner’s members. Homebuilders, unaffiliated with Fee Owner, Newland, NASH, or their affiliates (together, the “Released Parties”) are building homes at the Community. The Released Parties are not co-developing, co-building, guarantors of, or otherwise responsible for, nor shall they incur any liability as a result of, any of the obligations or representations made to buyers by any homebuilder or other third party. Fee Owner’s responsibility with respect to the Community is limited to certain infrastructure improvements (e.g., roads, sewer, etc.) and such obligations run solely to persons buying real property directly from Fee Owner. Buyers of homes waive, to the fullest extent allowed under the law, any and all rights, claims, causes of action and other rights whatsoever against the Released Parties arising from their purchase of a home or services, respectively, in the Community from homebuilders or other third party. Not an offering of the sale or lease of real property to residents of any jurisdiction where prior qualification of out-of-state real property is required unless the Community has been so qualified or an exemption is available. Any prices, sketches, renderings, and specifications contained herein are proposed only and subject, without notice, to change or withdrawal at any time. The maps contained herein are for illustrative purposes only and are based on current development concepts, which are subject to change without notice. © 2020 NNP IV-Cape Fear River, LLC. All rights reserved. EQUAL HOUSING OPPORTUNITY.

THANK YOU ANGELA AND CCU FOR BEING THE BEST IN WILMINGTON!

-Jodi H.

CORNINGCU.ORG ANGELA WILLIAMS CCU Mortgage Specialist (NMLS# 1692927) angela.williams@corningfcu.org

Our goal is simple - to provide the highest level of service from application through the life of the loan. Get in touch with Angela, or any of our local mortgage originators, today!

VOTED BEST CREDIT UNION THREE YEARS RUNNING BY READERS OF WILMINGTON MAGAZINE. 2

FEDERALLY INSURED BY NCUA. Membership eligibility required. Approval for financing subject to lending guidelines and credit qualifications. Equal housing lender. Wi

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CONTENTS Wi

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R E A L

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V O L U M E

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D E PA R T M E N T S

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LETTER FROM THE EDITOR BIZ BITES SOUND OFF BEHIND THE NUMBERS THE DIGEST THE TAKEAWAY

F E AT U R E S

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BEYOND WILMINGTON COVER STORY: HOUSING CONUNDRUM CORPORATE COLLABORATION IN PROFILE: ANNE GARDNER REAL ESTATE TRENDS IN PROFILE: DENISE KINNEY MARKET SNAPSHOT

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LETTER FROM THE EDITOR

new kids on the b lo c k

isclaimer: I’m not a native Wilmingtonian. I was born in North Carolina, but I’m not one of those you meet serendipitously around town who can boast about actually being from here. So, take all this with a grain of salt. But, adopted neighbors, have you noticed something – different lately? It seems every week, I run across someone who’s moved here recently (somehow lucking out on a home listing) from such far-flung places as L.A. and New York and Raleigh. I started noticing it online during the pandemic’s first year and now in-person at events. It’s déjà vu for anyone here during the arrival of Interstate 40 in 1990 and the housing boom in the mid-2000s. Out-of-state license plates appear, new housing developments spring up and online comments get crankier about traffic. I moved here 15 years ago from Atlanta, drawn by the possibility of after-work beach jaunts and short commutes. I have to remind myself of that every day at 5 p.m. on College Road. (When it gets really bad in the summer, I think about a trip back to Atlanta a few years ago when the main roadways saw lane shutdowns because of a bridge collapse, buckled interstate road and chemical spill – simultaneously. It grounds me for that third stoplight cycle onto Oleander.) The pandemic, rise in remote working and growth of certain employers in the area has fueled a new cycle of professional workers to Wilmington. That, coupled with the same soaring home sale prices that ushered in a wave of retirees here more than a decade ago, has put “So, where did you move from?” into heavy rotation at networking events. As always with growth and new neighbors, the discussion intensifies about development planning, job creation and housing costs – especially for middle-income workers.

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For this year’s annual Residential Real Estate issue, we explore several of those topics and how they are impacting not only the housing industry but the area’s economy and quality of life. We look at the spread of housing construction into the neighboring areas of Brunswick and Pender counties in “Outer Limits” on page 15. The ongoing discussion over solutions to address affordable housing is the topic of “Never Enough” on page 22. Low inventory for available homes is one of the trends the real estate market is seeing (read more about the others on page 32). And get a quick snapshot of the market overall starting on page 37. Flip the issue to get an overview of other commercial real estate and development news being talked about in the region. Whether you’re an OG, a longtimer or a recent transplant, consider this year’s issue an update on the Wilmington area and what to expect next.

VICKY JANOWSKI, EDITOR vjanowski@wilmingtonbiz.com

Wilmington B iz

CONTRIBUTORS

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2 0 2 2 R E A L E S TAT E I S S U E – $ 4 . 9 5

Publisher

J E N N Y CALLISON

Rob Kaiser

rkaiser@wilmingtonbiz.com

President

Robert Preville rpreville@wilmingtonbiz.com

Editor

Vicky Janowski vjanowski@wilmingtonbiz.com

A s s i s ta n t E d i t o r Cece Nunn

cnunn@wilmingtonbiz.com

JENNY CALLISON is a former Greater Wilmington Business Journal reporter who continues as a freelancer with the Business Journal and WILMA. Before moving to Wilmington in 2011, she was a university communications director and a freelance reporter covering a variety of beats. Callison looks Behind the Numbers at interest rate hikes (PAGE 11). She also checks in on residential growth in Brunswick and Pender counties (PAGE 14).

Reporters Johanna Cano

jcano@wilmingtonbiz.com

Johanna F. Still

T E R A H HOOBLER

jstill@wilmingtonbiz.com

Vice President

Carolyn Carver

Sales

ccarver@wilmingtonbiz.com

S e n i o r M a r k e t i n g C o n s u lta n t s Maggi Apel

mapel@wilmingtonbiz.com

Craig Snow csnow@wilmingtonbiz.com

TERAH HOOBLER is a Wilmington-based freelance photojournalist with over 16 years’ experience in photography and art. Hoobler photographed Kent Homes owner Ashley Kent and Compass Pointe for a feature on residential growth (PAGE 14). On the commercial real estate side, she photographed Grover Gaming’s offices and Brunswick Community College culinary students. terahhoobler.com

M a r k e t i n g C o n s u lta n t s Courtney Barden

cbarden@wilmingtonbiz.com

Marian Welsh

JOHANNA F. S T I L L

mwelsh@wilmingtonbiz.com

O f f i c e & A u d i e n c e D e v e l o pm e n t M a nag e r Sandy Johnson

sjohnson@wilmingtonbiz.com

Events Director Elizabeth Stelzenmuller

events@wilmingtonbiz.com

E v e n t s & D i g i ta l A s s i s ta n t Jamie Kleinman jkleinman@wilmingtonbiz.com

JOHANNA F. STILL is a reporter and photographer for the Greater Wilmington Business Journal who earned her bachelor’s degree from the University of North Carolina at Chapel Hill. A Wilmington native, she worked as assistant editor for Port City Daily before joining the Business Journal team. Still examines what’s happening – and not yet happening – to address affordable housing in the area (PAGE 22).

D e s i g n & M e d i a A s s i s ta n t Molly Jacques

production@wilmingtonbiz.com

M A R K WEBER

Contributing Designer Suzi Drake

art@wilmingtonbiz.com

C o n t r i b u t i n g P h o t o g r ap h e r s Daria Amato, Aris Harding, Terah Hoobler, Michael Cline Spencer

MARK WEBER is an illustrator and fine artist based in Wilmington. His work has appeared in many publications including Greater Wilmington Business Journal, WILMA, New York Times, The Atlantic, Wall Street Journal, Rolling Stone and Highlights for Children. Weber illustrated the affordable housing issue (PAGE 23) in this section and a future vision for downtown Wilmington’s west riverbank in the commercial real estate section. weberillustration.com and markweberart.com 2 0 2 2

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36TH ANNUAL

PARADE OF HOMES™ Find your way home this Spring.

APRIL 30-MAY 1 MAY 7-8

Free Admission

WilmingtonParadeOfHomes.Com @WilmingtonParadeOfHomes

BizBites SOUND OFF |

BEHIND THE NUMBERS

THE DIGEST

PARADISE FOUND

The seven-bedroom beachfront home at 704 Shoals Watch Way on Bald Head Island sold in 2021 for $6.15 million, one of four residential real estate transactions of $6 million or more that closed last year. “Everything about that house is just kind of a picture-perfect ideal of a beachfront property,” said Stephanie Blake, a Realtor with Intracoastal Realty Corp., who was the listing agent. In all, 558 dwellings priced at $1 million or more changed hands last year in New Hanover, Brunswick and Pender counties, and as a result, the tri-county luxury residential real estate market experienced its best year ever, according to a report compiled by Wilmington-based Just For Buyers Realty from the N.C. Regional Multiple Listing Service. photo c/o Intracoastal Realty Corp.

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DEFLECTING THE TRUTH DOESN’T MAKE WATER SAFER

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OOD NEIGHBORS CARE” IF YOU VISIT CHEMOURS’ YOUTUBE CHANNEL, THAT IS THE TITLE OF A VIDEO THAT WAS UPLOADED ON NOV. 30, 2021.

This advertisement eventually made its way into the rotation of local television commercials, drawing the attention of many in our community. Several area media outlets have talked with officials and community members for stories about the content of this ad, and, back on Jan. 27, I provided a statement about the video that you can view at News.NHCgov.com. Over the span of 30 seconds, Chemours talks about the work it is doing to protect the local environment and money they have spent to reduce pollutants being expelled from the plant. The piece ends with the following line: “Our quality of life begins with a quality environment. That’s our Chemours commitment.” Let me be as fair as I can to Chemours. After the company was exposed in 2016 for decades of knowingly dumping of chemicals, specifically the PFAS known as GenX, in the Cape Fear River, Chemours and the N.C. Department of Environmental Quality (NCDEQ) eventually agreed to a consent order that restricted what could be released into the river and addressed water needs for residents in the immediate area around the plant in Bladen County – this came about

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J U L I A OLSONBOSEMAN after a lot of local pressure, advocacy and lawsuits from Cape Fear River Watch. So anything they have done to reduce pollutants is a response to that legal mandate. Citizens in Bladen, Cumberland and Robeson counties have been provided with water filtration systems or alternative sources of drinking water by Chemours. The company has tested water aquafers in those areas and continues to monitor the plant’s output and impact on the local environment. Good neighbors care. Quality of life begins with a quality environment. Chemours says that is its commitment. So far, that commitment appears to end at the Bladen County line. And, unfortunately, the water Chemours has contaminated does not stop there. Back in November, NCDEQ announced it had determined that Chemours is responsible for contaminating well water supplies in downstream counties from the Bladen County plant through PFAS releases into the Cape Fear River. Within 90 days, Chemours was to submit a plan to the state that would create a comprehensive assessment of groundwater contamination in New Hanover County. On Feb. 1, Chemours sent its plan to NCDEQ. The company has

M A G A Z I N E

proposed to test private wells that are the primary source of drinking water on properties that are within half a mile of the Cape Fear River. There is data to prove their fingerprint chemicals are in local wells beyond within immediate proximity to the Cape Fear River, and yet they continue to refuse to take action and help our residents. Their plan begs the question: Do these good neighbors actually care? The terms laid out by Chemours are not acceptable and are a far cry from what our residents deserve. They are not in line with the requirements in the consent order that are afforded to residents who live near the plant. They are the latest in a long line of unaccepted responsibility by the company for the mess they have made. From the moment GenX was discovered in the Cape Fear River, Chemours has deflected responsibility and waited until it was legally forced to act to make any significant change to addressing the problem. Cape Fear Public Utility Authority is paying for new granular activated carbon systems at its Sweeney Plant that will effectively filter out the chemicals Chemours dumped in the river so New Hanover County residents can have safe drinking water. CFPUA is involved in ongoing litigation to try and recoup the $50 million spent on the system, and even then, there is no guarantee CFPUA will win. And that filtration system will only benefit residents hooked into CFPUA water. Those whose primary water source is a private well are still not being given the assurances they deserve. Instead of showing an eager-

BizBites

CROWDSOURCING REACTIONS, OPINIONS AND QUOTABLES FROM OUR ONLINE SOUNDING BOARDS

O N FA C E B O O K . C O M / W I L M I N GT O N B I Z DEVELOPERS WANT TO PUT HOTELS AND OTHER BUILDINGS ON LAND ACROSS THE CAPE FEAR RIVER FROM DOWNTOWN WILMINGTON. WHAT DO YOU WANT THE VIEW TO BE FROM THE DOWNTOWN WATERFRONT? “ BUILD IT TALL and build it fast. Too many years of looking across at trash and swamp.”– RYAN HTTR “ STATE PARK, almost anything else will disrupt the ecosystem, views of the sunset, and will be prone to flooding!” – MEGAN ROWE “ A CASINO hotel.”– PAUL NOGA “ HOW ABOUT SOME entertainment venues such as mini golf, go karts, things in that nature?” – CINDY JUSTICE “ I WANT THEM to leave it as is.” – BOBBI VAN NESS “ INTERESTING QUESTION. How come it's never asked about any other part of Wilmington?”– DARREN ANDERSON

T W I T T E R P O L L : @ W I L M I N GT O N B I Z

WHAT DID YOU DO WITH YOUR ECONOMIC STIMULUS MONEY?*

PAID BILLS

44.2%

yes

ness to fully understand the scope and spread of these chemicals, Chemours has limited the window for well water testing to a narrow frame. Let me offer some analogies, if I can. If you were backing out of a parking spot and crashed into another vehicle, knocking the bumper off, you would not offer the other car’s owner a new air freshener to fix the problem. If you were visiting a friend’s home and dropped a glass, you would not offer a Styrofoam cup as a replacement. If your lawn mower threw a rock through your neighbor’s window, a piece of cardboard over the hole would not be a permanent solution. For Chemours, there is a problem that they have only partially addressed. The chemicals being dumped in our water source are lessening. And, hopefully, their goal of 99% reduction does become a reality. Still, it does not change the fact that there is more recovery to be done. The people of New Hanover County deserve to know if the water they are providing for their families to drink is safe. The best way to do that is thorough testing, not just on wells close to the Cape Fear River but for everyone downstream from the Bladen County plant where these substances originated from. A 30-second commercial does not prove commitment to a quality environment. It only proves Chemours’ commitment to a self-serving message and deflection from the truth. Until the money for a misleading advertising campaign gets shifted to testing wells throughout New Hanover County for PFAS contamination, it’s obvious that our neighbors do not really care. Julia Olson-Boseman is chair of the New Hanover County Board of Commissioners.

*RESPONSES AS OF MARCH 8

SAVED IT

6.9%

19.2%

29.7%

GAVE IT AWAY SPENT ON FUN

W I L M I N GT O N B I Z T A L K

FROM THE PODCAST “IT'S LIKE FLOODING THE ENGINE. If you're not used to deploying the level of resources that we're going to be deploying, it can do more harm than good. And you get one chance to start.” – WILLIAM BUSTER, CEO AND PRESIDENT OF THE $1.25 BILLION NEW HANOVER COMMUNITY ENDOWMENT, ON THE PITFALLS OF USING TOO MANY RESOURCES TOO QUICKLY IN A SMALL AREA. SIGN UP FOR DAILY NEWS UPDATES AND SUBSCRIBE TO THE GREATER WILMINGTON BUSINESS JOURNAL AT WILMINGTONBIZ.COM

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“When I walk into Southern Bank, it feels like home. They are just so easy to work with.“ Tim Milam, President Coldwell Banker Sea Coast Advantage

We’re big on small business. We help small and mid-sized businesses become bigger businesses. That’s what we do. While the mega banks focus on the mega corporations, we see the value in building our local businesses. How do we do it? With mega service. And with all the tools and expertise every business needs to succeed. Visit us in Mayfaire Office III, or give us a call and we’ll bring the bank to you.

Colleen Hattingh, Lenny Smith, Paul McCombie, Leon Pruzan Mayfaire Office III 6752 Rock Spring Rd. 910.256.3657

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BEHIND THE

NUMBERS

3.25 %

U.S. PRIME RATE AS OF MARCH 8

RATE INCREASES EXPECTED TO HAVE FAR-REACHING EFFECTS

NEW HANOVER COUNTY 13.1% $451,831

2021

$399,609 2020 AVERAGE SINGLE-FAMILY HOME PRICES (DEC. 2020-2021)

WILMINGTON

PASSENGERS AT WILMINGTON INTERNATIONAL AIRPORT IN 2021

BY JENNY CALLISON

WITH THE 12-MONTH RATE OF INFLATION accelerating to 7.5% as of January, the Federal Reserve served notice Jan. 26 that its Federal Open Market Committee (FMOC, the Fed’s monetary policy-setting unit) will reduce its purchases of securities and treasuries and raise its prime interest rate starting in March. Since then, market watchers have been all over the map in predicting how many times the Fed will tick its rate upward in an effort to tame inflation, and how much the rate will inch up each time. Recent signals from the Fed indicate that the FMOC will be cautious and incremental in its approach. As of press time, March 8, the Fed was expected to raise interest rates by 0.25% by the following week. Rate increases of any kind at the top of the financial markets will have a far-reaching impact, including on efforts to obtain home mortgages and car loans. Financial adviser Robert Loweth compared current rates with those of the not-too-distant past. “Last year the 30-year mortgage rate was 2.87%; now it’s 3.87%. That’s still low, historically speaking,” he said, recalling the early 1980s when the average mortgage interest rate was about 17%. The bond market, he explained, will be hit as interest rates rise, because bonds’ low fixed-rate returns will look less attractive as investors are able to find more lucrative alternatives. “In this rapidly changing environment, investors are getting pickier,” he said. “Bondholders are getting a negative return, and they are going to ask for more money. Alternative investments include private real estate trusts, such as those that invest in student housing, office developments, warehouses and grocery chains. “The economists and fund managers are all saying long-term inflation is going to be about 3%,” he added, but cautioned that current conditions make predictions tricky. “We’re at an inflection point: All the (economic concepts) we have held dear are no longer true,” Loweth said. “We say the Fed increases interest rates until the economy slows down. But right now, corporate earnings are incredibly strong, despite the labor shortage, even though they took a dip in the fourth quarter (of 2021). It comes down to supply and demand.” w i l m i n g t o n b i z m a g a z i n e . c o m

905,630 BRUNSWICK COUNTY POPULATION ESTIMATES THROUGH 2027 2022

143,549

2023

146,824

2024

150,143

2025

153,460

2026

156,792

2027

160,125

PENDER COUNTY

$6.5 MILLION

FROM THE STATE & FEMA TO BUY FLOOD-PRONE PROPERTIES

Sources: Wilmington International Airport, Cape Fear Realtors, State of North Carolina, FEMA

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DIGEST THE

A R O U N DU P O F R E C E N T W ILMIN GTO N N E W S

PHOTO C/O NC PORTS

TRU COLORS GETS MAJOR PNC INVESTMENT

NEW PORT COMPLEX IMPROVES SOUTH GATE The Port of Wilmington officially opened its new South Gate Container Complex after months of beta testing new systems and processes. The $26 million project began three years ago. It reconfigured the port’s previous container gate layout used by truckers, increasing the outbound lanes from three to six and inbound lanes from four to seven. Several new technologies are incorporated in the new complex, including weigh-inmotion scales, scanning devices and other features intended to reduce turnaround times. The new facility modernizes and enhances the port’s truckbound efficiency, said N.C. State Ports Authority COO Doug Vogt. “All improvements to the container gate complex … enables NC Ports to not only meet the demand of increased container volume at the Port of Wilmington

but continue to improve on the best trucker turn-times on the East Coast,” Vogt wrote in an email. “In addition, these improvements enhance the level of service we provide to our trucking community and local port-user community.” For a single container, the port’s truck turnaround time as of December was about 20 minutes, according to port documents. Congestion at the gate was identified as a key constraint to the port’s growth in its strategic master plan in 2016, which prompted the planning and construction of the new facility. In August, the first phase of the project was completed, with port personnel implementing new technologies at the old truck gate complex. This included a new terminal operating system, Navis N4, used at more than 140 container terminals across the globe.

TO STAY IN THE LOOP ON THE LATEST AREA BUSINESS HAPPENINGS, CHECK OUT OUR DAILY AFTERNOON NEWSLETTER. SIGN UP AT WILMINGTONBIZ.COM.

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PNC Bank is pouring investment into a Wilmington-based beer company that employs active gang members. The infusion of $9.25 million from PNC Bank is helpingto transform an old textile factory into TRU Colors’ headquarters and brewery. “The financing, which includes a $6 million equity investment and a $3.25 million secured line of credit, augments the growth of the startup, which launched its first commercial product in 2021 and aspires to distribute nationwide,” company officials said in March. Located at 715 Greenfield St., the TRU Colors facility houses the company’s brewery, which has the capacity to produce more than 1 million cases of beer annually. “This financing,” said Jim Hansen, PNC regional president for Eastern Carolinas, “contributes to the revitalization and stabilization of a low- and moderate-income neighborhood, while enriching Wilmington’s dynamic startup community.”

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OUTER LIMITS BY JENNY CALLISON

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BR U NS W ICK , PEND ER CO U NT IES CO P E W IT H GR O W ING R ES ID ENTIAL D E VELO PMENT

A LEVEL OF RESIDENTIAL CONSTRUCTION IN PENDER & BRUNSWICK COUNTIES HIGH MEDIUM LOW

PLANNED HOUSING DEVELOPMENT APPLICATION WORKING ITS WAY THROUGH BRUNSWICK COUNTY’S APPROVAL PROCESS COULD BE AN EXAMPLE OF A RELATIVELY NEW APPROACH TO ADDRESSING THE DEMAND FOR HOUSING IN THE FAST-GROWING CAPE FEAR AREA.

Malmo Ventures LLC is proposing to build 1,875 housing units on 685 acres just off U.S. 74/76, across the highway from Compass Pointe. Unlike that master-planned golf community of mostly singlefamily homes, Malmo Ventures is proposing a mix of multifamily, duplexes, townhouse and singlefamily units. Some of the singlefamily homes would be intended as rentals.

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For Malmo Ventures to move forward with this development, Brunswick County would have to rezone the tract from low-density residential to high-density site-built residential. That kind of zoning reconsideration could become more common as high demand for suburban living meets a dwindling supply of housing. “Brunswick County has an extreme housing shortage,” said Brunswick’s director of planning Kirstie Dixon, while not commenting specifically on Malmo Ventures’ application. “We need affordable housing desperately, and we need middle-income housing for people like teachers, public service workers and government workers. We also need a variety of housing types for people at different phases of their lives.” That includes a big demand for what Dixon calls “estate lots”: large lots that accommodate a spacious home or even a mini-farm. “The challenge is land prices, whether it be for workforce housing or estate lots,” she added.

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“Developers have to make a living. Estate lots might not be the way to go.” Add to what might be considered normal demand for property, there is the pent-up demand from the past year-anda-half, said Ashley Kent, owner of Kent Homes, a residential builder in Brunswick County. “Land can’t be developed quick enough,” she said. “With our business model, we pretty much build on your lot. Most of where we build is in communities like Compass Pointe, The Bluffs in Leland, St. James Plantation and Brunswick Forest. In those four communities, the developers open a new section of lots, and they are sold out quicker than (the developers) expect. “It used to be people would want to build on their lot in six months to three years, but now we’re seeing people getting in as quickly as possible. That drives up land prices and certain projects in certain communities.” Some national homebuilders are also entering the local market, creating more competition for dwindling resources, Kent added, explaining that those builders are aggressive, and they have the means to buy up whole sections of newly available building lots. “People are moving here every day. Wilmington is a desirable area and is going to remain a desirable area,” said Cameron Moore, executive officer of the Wilmington-Cape Fear Home Builders Association. He agreed that the availability of developable land is the top challenge facing developers and would-be homeowners. In New Hanover County and its municipalities, where available land is truly at a premium, there is more focus on density through infill projects as well as mixed-use, multifamily developments such as Mayfaire and a couple of other projects in the works along Military Cutoff Road.

Homes in various stages of construction can be seen throughout Brunswick County master planned communities, including Compass Pointe.

“New Hanover County and the city of Wilmington are going through a kind of metamorphosis: they’re ready to see more vertical construction – one way to gain density,” he said. “To create affordable housing you can use density, diversity and height.” In the two counties adjacent to New Hanover, there is more land, but some areas may lack water and sewer, Moore continued. “The lack of sewer hurts (developers) in Pender County. It is changing: Some private companies are coming in to provide sewer or the developers themselves are bringing in water and sewer, but with septic, you must have larger lots so you’re not going to see efficient use of land. A standard subdivision lot is 7,000 to 10,000 square feet; in Pender, lots are more likely to be 15,000 to 20,000 square feet.” Water availability is one of two major limiting factors to development in Pender County, according to the county’s planning

director Travis Henley. The other is school capacity, which he says is always a county priority. Regarding water supply, Henley said, “The county has made some significant progress in building additional water capacity through the construction of a few wells, and is currently exploring more significant projects toward that end.” Moore said there are more areas with water and sewer service in Brunswick County. “There are a couple of sources of water and sewer: sanitary districts and municipalities themselves,” he said. “The completion of I-140 is opening up a lot of development moving into northeast Leland and Navassa.” Brunswick County, which saw rapid growth before the economic downturn of 2007-08 and is once again one of the fastest-growing counties in the U.S., began preparing for this growth several years ago, according to Dixon. Not only is demand coming from New Hanover County and people moving to the

Cape Fear area; it’s also coming from Horry County, South Carolina. Pender County is now one of the fastest-growing counties in the state and is seeing development demand from New Hanover as well as Onslow counties, Henley said.

Ashley Kent, owner of Kent Homes

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Moore pointed to the more than 30% jump in permits for housing projects in the Surf City area, near Pender’s boundary with Onslow County. Both Brunswick and Pender counties have a Unified Development Ordinance that lays out rules for new development, classifying most new subdivisions as major subdivisions or planned developments. Because of limited land supply and the costs of building new neighborhoods, even smaller-scale developers are looking for ways to gain density and keep costs down, according to Dixon. In planned developments, builders can cluster their housing and put half the tract in a conservation use. The result, she added, is a win-win for the developer and for the environment. “Clustering (homes) saves a lot of (infrastructure) costs, and maybe some of the land in conservation is wetlands,” Dixon explained. “Our ordinance is designed to balance everything. Planned developments require buffers on projects. Some back yards border buffers or conserved property. That really helps adjacent neighborhoods.” By contrast, standard lots in major subdivisions are 10,000 square feet, taking up more land with fewer homes. And there are no buffer requirements. And while a planned development can include a variety of housing types and even some appropriate commercial development, a major subdivision contains single-family housing only. “We really encourage planned developments. They are better for the community and better for the environment,” Dixon continued. “Developers won’t lose any housing possibilities. There are a lot of positives from development, such as community health and the local economy. We can’t stop most development in North Carolina, but we can help mold it.” Pender County officials are seeing more requests for higher-

density developments, but those are being scrutinized closely because of infrastructure concerns, Henley added. “We definitely encourage planned developments where they are appropriate, whether that is accomplished via our Planned Development zoning district or through a conditional rezoning,” he said. “Both have proven effective at yielding more positive development outcomes for property owners or developers as well as neighboring residents, while also increasing the conformity to the county’s longrange planning documents like the Pender 2.0 Comprehensive Land Use Plan.” Brunswick, meanwhile, is in the middle of creating Blueprint Brunswick 2040, which addresses land use, conservation and parks and recreation for the future. Dixon said that the plan, once approved, will help officials decide where the county should invest money. In gathering information for Blueprint Brunswick, county officials heard plenty about three issues affecting development: affordable housing, water and transportation, Dixon said. “Every focus group we held talked about affordable housing,” she said. “We’ve lost a lot of trailer parks, which provided affordable housing. Those properties are now being used for other things.” The big water issue, she explained, is flooding. Building homes in flood zones is discouraged in planned developments. Some major subdivisions, “probably have lots in the flood zone, so they may need emergency services in a hurricane.” Many developers, Dixon continued, are using more restrictive flood standards than are required because they realize the area’s increasing vulnerability to floods. “They are oversizing their infrastructure to hold storm water. Most developments are coming in

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WE REALLY ENCOURAGE PLANNED DEVELOPMENTS. THEY ARE BETTER FOR THE COMMUNITY AND BETTER FOR THE ENVIRONMENT. DEVELOPERS WON’T LOSE ANY HOUSING POSS IBILITIES. THERE ARE A LOT OF POSITIVES FROM DEVELOPMENT, SUCH AS COMMUNITY HEALTH AND THE LOCAL ECONOMY. WE CAN’T STOP MOST DEVELOPMENT IN NORTH CAROLINA, BUT WE CAN HELP MOLD IT.” KIR ST IE D I XO N Brunswick Co unty plann ing d irector

at 10- to 25-year flood standards – Leland has just updated its minimum to 25 years – while most bigger developments are developing voluntarily to 100-year standards.” Regardless of the size, scope and type of project a developer is planning, a huge sticking point these days is the rising cost of land, materials and labor and supplychain bottlenecks. “There’s no such thing as delivery on time anymore,” Moore said. Kent calls the delays in getting building materials “unprecedented and extremely challenging.” “We are ordering windows and doors three to four months before we start a home; garage doors months before,” she said, adding that delays extend to labor and even inspections. “Inspections departments are extremely overburdened,” she said. “And we had a whole crew out for weeks with COVID. Our base price for homes in the past year has probably gone up $100,000.”

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NEVER ENOUGH BY JOHANNA F. STILL

RESIDENTS, NONPROFITS, LEADERS CHIP AWAY AT AFFORDABLE HOUSING CRISIS

hen Kathy King moved to Wilmington, she had no intention of becoming a landlord. A retired Army veteran, King came across a ranch-style stucco home listed in a public auction that was in rough shape, located next door to her parents’ old home on Wilmington’s east side. Though she’d visited the area growing up, she was new in town and picked up a flyer on the city’s rental housing rehabilitation loan program as she was trying to get to know the city. “Wilmington is a beautiful place to live. But the housing, just say it: sucks in terms of its availability,” King said. “Wilmington is getting further and further behind because people are coming here to live and there’s just not enough.” The city program mostly attracts developers, King was told when she first got involved. It grants homeowners up to a $125,000 interest-free loan to rehabilitate their properties,

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Kathy King sits on the front porch of a home she is preparing to rent out at an affordable rate on Wilmington’s east side. PHOTO BY JOHANNA F. STILL

if they rent units to those making 80% or less of the Area Median Income (AMI); in Wilmington, that’s $42,700 for a single person, according to the U.S. Department of Housing and Urban Development (HUD). B

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“I just figured that it’s an opportunity, and I’m not looking to get rich off of this – at all,” King said. “The need is so great. And this is just a little bit that I can do, and I’m happy that I’m able to do it.”

King was awarded a roughly $67,000 loan in 2019, which she used to help fix and convert the dilapidated home into two one-bedroom units she rents to veterans for about $870 each. Behind the now-rehabbed home, she also acquired two units she will begin renting in March. Collectively, King owns over a half-acre within her growing mini-compound and dreams of building another house to provide more affordable housing to veterans. Her soon-to-be four affordable housing units represent just a sliver of the area’s overall need. A local governmentcommissioned housing needs assessment released in March 2021 projected a rental housing gap of roughly 7,400 units by 2030 in New Hanover County for rentals less than $1,575 a month. There’ll be another nearly 8,400-unit housing gap of for-sale stock over the next decade for under $300,000, the report estimates. As of Feb. 22, the N.C. Regional Multiple Listing

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Eileen O’Malley, Cape Fear Collective’s director of operations

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Service showed just 27 listings of single-family residences across New Hanover County priced at less than $300,000. Amid sluggish wages and historic inflation, the average rent for an apartment in Wilmington is $1,431, according to the latest RENTCafé analysis. A single person would have to earn at least $57,240 a year to afford that rate and not be cost-burdened (HUD defines this as spending more than 30% of income on housing). That’s well over what local entry-level and mid-career first responders, teachers, service workers and others earn. In New Hanover County, more than half of all renters are cost-burdened, according to 2019 U.S. Census data analyzed by Cape Fear Collective. Pressure is mounting on public officials to take swift action to address the region’s mounting housing affordability problem. After years of summits, committees, task forces and meetings spent diagnosing the issue, advocates and many business leaders have sharpened their tone to jolt officials. Last month, officials abandoned the previously proposed New Hanover County $50 million housing bond. As initially presented, it planned to create an estimated 1,333 new affordable units over five years; another 302 would have been acquired or rehabilitated.

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The forgone investment represented about onetenth of the new affordable housing stock required to fill housing gaps over the next decade, according to the latest estimates. Opposed to raising property taxes to finance the bond, the New Hanover County Board of Commissioners unanimously approved an alternative plan Feb. 24, pledging to spend at least $15 million over the next five years. It’s not immediately clear how many units the investment will support, especially amid ballooning construction costs. Officials said they hope the private sector will step up to reach the previously discussed $50-million investment goal. As stakeholders sort out a big-time solution, smallerscale local efforts to preserve the area’s affordable housing stock – from an individual landlord like King to a high-level social investment model – are underway. Cape Fear Collective first entered the housing sphere in late 2020 and has since expanded its portfolio of affordable units, which it’s working to rehabilitate and preserve. “Our main goal overall is affordable homeownership,” said Eileen O’Malley, Cape Fear Collective’s director of operations. “We all know that housing is not getting any cheaper, especially in this area, and one of the biggest generators of familial wealth is homeownership.” The nonprofit has acquired 92 properties with 113 units, according to O’Malley. Cape Fear Collective purchased a

majority of these units (71) in January for $10.6 million, mostly single-family structures in and around downtown. The move to scoop up these properties was made possible through Collective Ventures, the nonprofit’s social impact investment program that promises modest 2-5% returns. Live Oak Bank is one of the primary sponsors of the initiative, having infused it with $7.5 million, according to a bank official. This year, the nonprofit’s plan is to assess its new slate of tenants, and eventually, work with them to determine whether they are interested in a path to homeownership or would prefer renting. In either scenario, Cape Fear Collective’s goal is to preserve the area’s naturally occurring affordable housing stock. The group is hiring two project managers this month to head up its assessment process before it focuses on adding any more to its portfolio, according to O’Malley. “We recognize the fact that it would be very difficult for one entity to pretty much solve everything,” she said, citing the critical work done by partners including the Cape Fear Housing Coalition (CFHC), the Cape Fear Community Land Trust, Habitat for Humanity, Good Shepherd Center, LINC Inc. and more. “We try to at least keep that in mind as we try to go and do as much as we can,” she said. At a recent CFHC event, Live Oak Bank President Huntley Garriott said the Collective Ventures model is already proving to be

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successful: “It’s actually working, and I think it’s scalable.” It’s “not going to solve 10,000 housing units – but it’s a hundred. And it’s going to be another hundred. And that’s a piece of it, right?” he said. “There is not one answer to this. It’s too big (of ) a problem, but it is solvable.”

with federal money, is the state’s largest resource, Gunter explained. The program provides financing to incentivize developers to build affordable housing. Paul Kennedy serves on the N. C. Housing Finance Agency responsible for making recommendations on LIHTC awards. Statewide, the program’s

”

OUR MAIN GOAL OVERALL IS AFFORDABLE HOMEOWNERSHIP. WE ALL KNOW THAT HOUSING IS NOT GETTING ANY CHEAPER, ESPECIALLY IN THIS AREA, AND ONE OF THE BIGGEST GENERATORS OF FAMILIAL WEALTH IS HOMEOWNERSHIP.” EILEEN O' MA L L E Y directo r o f o peratio ns, Cape Fear Co llective

Garriott was among a group of business leaders that urged public officials in a January op-ed to commit serious capital to address the issue, arguing more piloting would just further “exacerbate an already dire situation.” A lack of affordable housing can stunt economic prosperity, according to the National Low Income Housing Coalition; constrained options can eat at families’ earnings potential and slow GDP growth. Samuel Gunter, executive director of the N.C. Housing Coalition, said at the CFHC event he’s trying to get people to understand affordable housing as “privately held public infrastructure.” When it comes to new construction, the LowIncome Housing Tax Credit (LIHTC) program, managed by the state and funded 2 0 2 2

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roughly $250 million budget turns into about 2,800 new affordable units annually according to Kennedy. “That's a drop in the bucket,” he said. Local loans or grants can provide a boost of financing to help see these projects through, an option that is looking increasingly more desirable as construction costs have created gap financing needs. Katrina Knight, CFHC chair, has asked leaders to dedicate at least $100 million this year in both public and private funds. “We have studied and discussed and made recommendations only to be asked to research some more,” Knight said. “The only outstanding question is what we have the political and moral will to make happen for our community, and truly for the benefit of us all.” E

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PHILIP BROWN Novant Health

RUSTY CARTER Atlantic Packaging

HUNTLEY GARRIOTT Live Oak Bank

CHIP MAHAN Live Oak Bank

JOHN MONTEITH Monteith Construction

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GEORGE TAYLOR TRU Colors

LANDON ZIMMER Zimmer Development Co.

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N INFORMAL GROUP NAMED THE “BUSINESS ROUNDTABLE,” CREATED BY SOME OF WILMINGTON’S MOST INFLUENTIAL BUSINESS LEADERS, AIMS TO SHED LIGHT ON SOME OF THE AREA’S MOST IMPACTFUL SOCIAL ISSUES. In January, the group authored an editorial on affordable housing. “The state of housing in New Hanover County has reached crisis levels, and as business leaders and major employers in this community we believe that immediate catalytic funding is a critical component to solving this crisis,” the editorial stated. The piece was signed by leaders with Monteith Construction, Live Oak Bank, Novant Health, Zimmer Development Co., Atlantic Packaging and TRU Colors.

BY CECE NUNN

Some of those same leaders had already begun discussions about change through Initiative 1897, an effort focused on diversity, equity and inclusion. The initiative’s name refers to the year before Wilmington’s thriving Black community was struck down by a white supremacist coup d’etat. The corporate partners in Initiative 1897 last year commissioned nine large-scale portraits of prominent Black men and women living in Wilmington during the post-Reconstruction era for display to the public. “The art was meant to be kind of the welcome to the conversation – let’s have the conversation, let’s celebrate these people. And then phase two, let’s get to work on doing the work to change some things,” said John Monteith, founder of Monteith Construction. “So this (the Business Roundtable) is kind of the outcropping of that

initiative.” During a Zoom meeting with WilmingtonBiz Magazine in February, Monteith talked in more depth about the Business Roundtable, along with members Huntley Garriott and Philip Brown. Garriott, president of Live Oak Bank, agreed with Monteith about the origins of the roundtable, saying, “Some of the discussions following the 1897 project were around the state’s Healthy North Carolina 2030 framework that says, ‘Here are all of the metrics we all think are important for us as a community to improve upon.’ And one of the stark ones was housing.” Garriott pointed out that Cape Fear Collective, a Wilmington-based nonprofit social impact organization supported by Live Oak, has been gathering data and working on housing crisis solutions (read more about Wilmington-area affordable housing efforts on page 22). The area’s lack of affordable housing “really felt like one that made a lot of sense for us all to spend time thinking about and seeing how we could play a part,” Garriott said. Brown, chief community impact officer for Novant Health and former chief physician executive for NHRMC, said housing can have a major impact on health as well as the economy. “Much like our letter said, the main thing is that our firefighters, our police officers, our school teachers and the first responders ... need to be able to live in the communities where they serve,” Brown said. “And so our commitment is to continue to shine a light on this issue, until we really begin to make significant progress to solve it.” In addition to Monteith, Garriott and Brown, the editorial signers included Live Oak Bank Chairman and CEO Chip Mahan; Landon Zimmer, managing partner at Zimmer Development (read more about Zimmer on page 34); Rusty Carter, CEO of Atlantic Packaging; w i l m i n g t o n b i z m a g a z i n e . c o m

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and tech entrepreneur George Taylor, founder of TRU Colors. “When we all identify the same root causes, and we all have the same goals and objectives, we’re all working in the same direction, generally speaking, things work better and are more productive,” Garriott said. “And so when everybody in the boat rowing the oars in the same direction, the boat really does move much more efficiently and forward. That, I think, is point No. 1.” No. 2, he said, “We all lead companies and think about the world from a corporate lens. … And sometimes I think it’s healthy to take that lens and that frame of reference to public-sector problems and to think about how ‘the business community’ would work toward solving those.” Garriott used the example of how Live Oak and Cape Fear Collective have worked together on purchasing housing units to make them affordable housing permanently. In the end, Monteith said, it’s about accountability. “We are all part of the same community; our employees are in this community. And even if it’s not our direct employees, it could be someone we trade with, we partner with through our work. And there’s no scenario where we should be doing anything other than feeling accountable and really bothered by data that paints a really stark picture of disparities around these discussions. So it’s a conscious effort to really lean into this with an accountability,” he said. Monteith said Novant and Live Oak “have a lot of employees, a lot of impact. But they’re also known as disruptors. They’re also not afraid of anything, they’re bold, and they don’t let things just go away. They stick with things until they’re perfected. And to Huntley’s point, it’s bringing that kind of mentality that we really kind of takes some accountability

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TH E MA IN TH IN G IS TH AT OUR F I R EFIGH TER S, OUR P O L IC E OFFIC ER S, OUR S C H OOL TEAC H ER S A N D TH E FIR ST R ESP ON DER S ... N E E D TO BE A BL E TO L IVE I N TH E COMMUN ITIES W H ER E TH EY SER VE. A N D S O OUR COMMITMEN T IS TO CON TIN UE TO SH IN E A L I GH T ON TH IS ISSUE, U N TI L WE R EA L LY BEGIN TO MA K E SIGN IFICA N T P R O GR ESS TO SOLVE IT.” P H ILIP B ROW N N o vant H ealth

and even ownership, if you will, to the point where we don’t get distracted, we don’t move on, we get to the core of these things, and we see it through.” WilmingtonBiz Magazine asked the trio why they themselves don’t just “pay everybody a whole lot more?” “That’s a great question. I think I can speak for ourselves (Monteith Construction) on that. We always start by taking a look inside our company,” Monteith said. “And we committed as a company to paying a living wage that’s measured by county, by individual circumstances in our company and not paying what the market would bear. Because we’ve seen what happens when you leave it 100% to the market – it’s a race to the bottom. And of all the things that 2020 and COVID showed us, it’s that it doesn’t always treat people fairly. Just because it’s an open market doesn’t mean it’s going to be fair; often that race to the bottom leads to some very unintended consequences, and many of those were exposed by essential workers during COVID and

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scenarios like that. “Are we saying we’re perfect? No, absolutely not. We have to constantly have our eye on these things, and be aware and aspire to do better.” Garriott added, “We similarly spend a fair amount of time thinking about what that level ought to be. … and you’re right, none of us is perfect. And we all have various constraints, right? And we’re all operating within those, but we try really hard to get to the right place.” When Novant Health completed its purchase of New Hanover Regional Medical Center in February 2021, one of the first items of business was “the healthy living wage, which elevated the income of our lowest-paid employees, and we’re actually right now in a multi-market market adjustment … everyone is being looked at from a market adjustment of their pay,” Brown said. But wage adjustments alone at one company here or there won’t be enough. “We have to keep this discussion at the forefront in such a way that that multi-part solution can come together from different stakeholders,” Brown said. “And that’s really what this (the Business Roundtable) is about.” Monteith said he and other members of the roundtable find themselves at events and meetings on a lot of different topics with the same people, “with shared interests, concerns and motivations. And this (the Business Roundtable) is trying to give a little bit of form to that so that we can move with some certainty, but also be kind of nimble, and move quickly on something.” The group may include different members for different topics or projects, Monteith said, “but for the time being, this is just taking people you’re seeing all the time anyways, and saying, ‘Hey, let’s push this forward in a little more formalized way.’”

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BY SAMANTHA KUPIAINEN | PHOTO BY MICHAEL CLINE SPENCER

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PROFILE

ANNE GARDNER BRINGS DECADES OF LEADERSHIP EXPERIENCE

nne Gardner had one goal she wanted to achieve before turning 40: become a chief executive officer. Today, she’s far surpassed her goal and has been in various CEO positions for more than a decade. Nearly three of those years have been in Wilmington as the CEO of Cape Fear Realtors. Gardner joined Cape Fear Realtors in July 2019 after being recruited from Virginia, where she served as CEO of the Charlottesville Area Association of Realtors. Prior to that, Gardner spent many years near the Washington, D.C., area as the vice president of education and business specialties for the Northern Virginia Association of Realtors, which is where she got her first taste of working in the real estate industry in 2001. “The thing I love about local Realtor associations is we know that the work we’re doing is affecting people that live, work and play in our community,” Gardner said. “I love the fact that the people I’m doing the work for, I’m going to run into them at the grocery store. I’m going to see them in the community. You develop a much stronger connection to the members you’re serving and the work you’re doing at your desk every day.” In her role at Cape Fear Realtors, Gardner focuses on being w i l m i n g t o n b i z m a g a z i n e . c o m

a voice for private property rights and advocating for building diverse communities. “We really do have a firm foundation in the fact that we should have private property ownership and equal housing as fundamental rights,” she said. “That’s where we’re spending a tremendous amount of our effort and time now going forward.” On a larger scale, she and her team have worked to make the homebuying process easier, especially during the disruptions caused by the pandemic. “A huge focus that we have right now is making sure that we’re partnering with organizations in the community on issues of diversity, equity and inclusion,” Gardner said about current efforts. “Really, just bringing ways that we can help grow businesses, whether it be partnering with chamber activities or other institutions and not-for-profits. I think being a partner in the community is how you can bridge past all of the various pathways to homeownership and say, ‘This is how we can make this better for everyone.’” Since joining the association, Gardner has established a handful of goals she’d like to achieve, all of which tie into community building and leadership. To start, she’s a member of Leadership Wilmington 2022, which strives to “educate, challenge, and motivate leaders and future leaders to utilize their leadership skills to work for the betterment” of the community. Through that course, she hopes to focus on building more connections and making an impact on her surrounding community. “Anytime there is an opportunity to learn about our community and contribute, that’s what I’m looking forward to doing,” she said. 2 0 2 2

To be someone that others can count on and climb the ranks into a leadership position required Gardner to put in a lot of work on her end. For starters, she had to be diligent, curious and open to learning new skills. She described always being willing to take on new challenges from time to time in her early 20s while she was fresh out of school from earning her bachelor’s degree in international studies from George Mason University. Whenever she was afforded the opportunity to learn or take on a new challenge, she would “swallow, take a deep breath, and say ‘yes.’” “It doesn’t mean you’re not intimidated by the idea of doing something you’ve never done or something new,” she said. “I just anchored my feet and said, ‘I’m going to learn, and I’m going to grow because if I want to take on more in life, I’m going to have to learn that.’” Looking ahead to her future with Cape Fear Realtors, Gardner looks forward to continuing to partner with the community and enjoying the Carolina coast. “I love this life, and it is absolutely positively a dream come true,” she said. “The opportunity to blend both where I love to live in coastal North Carolina with the career that I’ve built since 1993, it truly is a win-win.”

Anne Gardner was part of the most recent WilmingtonBiz 100 as an Influencer. Look for this year’s nominations to open in the fall and the new group to be announced in the December issue of WilmingtonBiz Magazine. R

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ompetition for homes in the Wilmington area has been steep for a long time, reaching a fevered pitch in the past few years. This ongoing story is playing out in home sale statistics throughout the Cape Fear region of New Hanover, Brunswick and Pender counties, as Realtors continue looking to reach sellers and buyers throughout the market and developers find ways to capitalize on the area's demand for housing.

EXPANDING COMPANIES

LOW INVENTORY

Residential real estate firms in the Cape Fear region continue to grow their footprints with additional office locations. For example, Coldwell Banker Sea Coast Advantage opened new offices in 2021 in Boiling Spring Lakes and St. James in Brunswick County. Another example: Nest Realty’s Wilmington branch recently opened an office in the Pender County community of Hampstead. Construction on the office, located on the second floor of the April Jones Insurance building, 15 South End Court in Hampstead Village, wrapped up in January. “Hampstead is in highdemand for people willing to trade the conveniences of living in Wilmington for a bit more space, water access and affordability,” said Ryan Crecelius, principal broker at Nest Realty in Wilmington.

Brunswick County’s residential real estate market saw fewer homes sold in January because inventory is at an all-time low, according to the county’s association of Realtors. The number of units sold in Brunswick declined 17.4% during the first month of 2022, from 465 to 384, compared to January 2021. New listings dropped nearly 30%, from 552 to 387, BCAR noted, citing statistics pulled from the N.C. Regional Multiple Listing Service. But the total sales volume last month was only down 1.5%, thanks to higher average sale prices fueled by low inventory, strong demand and strong luxury sales, according to the report. BCAR CEO Cynthia Walsh said, “Inventory is extremely low, which makes it harder for buyers to find the right home ... The market is positioned to remain in a seller’s market for the foreseeable future."

BY CECE NUNN

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TRENDS

HIGHER PRICES

MORE MIXED-USE

FINDING MORE HOUSING

Also in the BCAR report for January: The average sale price increased a little over 19%, from $352,452 to $420,409, compared to January 2021. For the tri-county region of New Hanover, Brunswick and Pender counties, “Sales prices reached new heights, inventory remained record low, and homes sold in record time, often for well above asking price,” officials with Cape Fear Realtors said in a January release. With fewer single-family homes, townhouses and condominiums on the market, prices were up, Cape Fear Realtors reported. “Median sales price continued to increase in the double-digit territory … throughout the year, ending 2021 with another recordbreaking high of $325,000, an increase of 14%,” according to CFR. That compared with a national median sales price of $375,000, a year-over-year increase of 10%, according to realtor.com.

Plans to build mixed-use projects with residential and commercial space continue to remain on the list of upcoming construction in the Wilmington area. Just two of those are Paseo on South College Road (read more about Paseo and developer Mariana Molina on page 30) and The Proximity, planned on vacant land in the New Hanover County beach town of Carolina Beach. On property that at one time was supposed to hold a Harris Teeter grocery store, developers want to build apartments, office space and commercial areas, including retail establishments and restaurants at Lake Park Boulevard and St. Joseph Street. The Proximity “will contribute to the town’s tax base and is a unique opportunity to enhance lifestyle offerings in the Carolina Beach community with a thoughtful blend of residential, retail, office, and live-work, all of which will be in keeping with the coastal design and the fabric of Carolina Beach,” according to officials with the project’s development firm, GHK Cape Fear Development.

With housing of all types in high demand, especially affordable housing (see more on the topic on page 22), some developers are coming up with creative ways to provide it. A California-based firm in December paid $11 million for 4903 Market St. in Wilmington, a property with 8 acres and two motels. Vivo Investment Group is turning the motel rooms into more than 230 efficiency apartments. Vivo will upgrade the property with amenities seen in class A apartments, including new kitchen appliances, a gym, a tenant-amenity lounge, coworking space, high-speed internet, laundry facilities, a pool and green space. The property was rezoned to a multifamily designation in October, and Vivo agreed to designate 10% of the units as affordable housing. Vivo, headquartered in El Segundo, California, has developments throughout the U.S., including another one in North Carolina, in WinstonSalem.

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AGENTS

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PRESIDENT OF TOP REAL E S TAT E F I R M FOCUSES ON S U P P O RT, G R OW T H BY LYND A VAN K UR EN P HO T O BY MI CHAEL CL I N E SPEN C ER

PROFILE

enise Kinney, president of Coldwell Banker Sea Coast Advantage, is somewhat shy and prefers working behind the scenes to being in the limelight. Nevertheless, she is a powerhouse in the Wilmington real estate industry.

As the head of one of the region’s top real estate firms, Kinney oversees a company that brings in more than $3 billion in sales with 23 offices and more than 800 agents. Kinney’s career in real estate began in 2001 soon after she was laid off from Corning. As she likes helping people, Kinney thought real estate would be a good career move. Unfortunately, she wasn’t a very good salesperson, Kinney laughs. But Kinney liked the field, and when she transitioned into a real estate management position, she found her milieu. As a managing broker, Kinney could put her relationship-building skills to work and fulfill her desire to help others. She spent her days in ways many would avoid: troubleshooting difficulties, solving contract snafus and dealing with customer complaints. “I enjoy working through problems,” Kinney said. “I want to take them off the agents’ plates, so they can go out and sell real estate.” When Kinney joined Sea Coast Advantage in 2008, one of her responsibilities was to head up its Internet Leads Program. Although internet marketing was a new enterprise for the company, and a position for which Kinney had no experience, she took it on. w i l m i n g t o n b i z m a g a z i n e . c o m

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“I didn’t know what I was doing,” said Kinney. “I started qualifying leads, generating a lot of internet lead, and launched software to manage the leads. I also created a sales team to work those leads.” Kinney may have been a rookie when it came to internet sales leads, but she made the division a success, and it continues to be one of the company’s most profitable departments today. Kinney was eager to move up in the company and quickly assumed new leadership roles. After serving in various uppermanagement positions, she was promoted to vice president and then senior vice president. She was responsible for a myriad of duties including ensuring new offices got off the ground, recruiting and transitioning agents into the company and maintaining Sea Coast Advantage’s family-friendly culture. One of the hallmarks of Kinney’s work ethic was making herself available to agents at all times, day or night – a commitment she continues to honor. “They (the agents) can call or text me any time,” Kinney said. “I am available to them.” When Tim Milam, the company’s founder, decided to transition from the presidency to become CEO, Kinney was tapped last year to take over the role. Although Kinney said doing so was frightening, it was a position she was prepared for. In addition to her vast managerial experience, Kinney had taken the Ascend Executive Leadership program for real estate professionals. During the year-long program, Kinney tackled subjects like creating a positive business culture, dealing with diverse personalities, conflict management, working with financials and refining her personal leadership style. “It was one of the best things R

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PROFILE

JANE MARR & ASSOCIATE

30 + YEARS

PROVIDING A BOUTIQUE EXPERIENCE WITH WILMINGTON’S MOST TRUSTED FIRM Jane Marr

Broker/REALTOR® (910) 231-3343

Grace Taylor

Broker/REALTOR® (704) 726-3225

JMARR.INTRACOASTALREALTY.COM @JANEMARRHOMES

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I’ve done for my career,” Kinney said. “I met so many people, learned about myself and built confidence.” The company also developed a transition period, during which Kinney gradually took on more responsibility and became more comfortable handling the duties that came with the position. “It was important to make sure I could do the job and that I wanted to do the job,” Kinney said. “The last thing I wanted was to let Tim or his family down.” Kinney was formally made president of Sea Coast Advantage in May 2021. One of her biggest challenges in today’s booming housing market is ensuring the agents have the assistance they need to do their jobs and that they have time to be with family, Kinney said. In addition to her many other responsibilities, Kinney resolves problems agents encounter and ensures they always have backup – that someone can help them complete a transaction or perform another business function when client obligations conflict or they want to attend a child’s soccer game or dance recital. Kinney is also working to ensure that Sea Coast Advantage retains its No. 1 status in the area. In addition, she hopes to grow the company’s market share and increase the number of megaproducers in the firm. Sea Coast Advantage currently has more than 80 agent/teams who sell $10 million a year or more, and Kinney wants to help more agents achieve that level of success. “We focus on building each agent’s business individually,” she said. Throughout her trajectory in the real estate world, Kinney has remained true to herself. Kinney knew she wanted to be in management, was good at it and always did the best job she could. And above all, she has always worked to help others.

M A R K E T SNAPSHOT W I L M I N G T O N A R E A R E S I D E N T I A L R E A L E S TAT E H I G H L I G H T S

TOP10 H O M E S A L E S 0 F 2 0 2 1 1 2 3 4 5

PRICE

ADDRESS

SQ FT

$6,422,686

513 S. LUMINA AVE., WRIGHTSVILLE BEACH

4,480

915 S. LUMINA AVE., WRIGHTSVILLE BEACH

5,570

704 SHOALS WATCH WAY, BALD HEAD ISLAND

5,207

831 S. LUMINA AVE., WRIGHTSVILLE BEACH

4,000

8 BEACH ROAD S., FIGURE EIGHT ISLAND

4,212

$6,400,000 $6,150,000 $6,000,000 $5,712,000

PRICE

ADDRESS

SQ FT

$5,207,960

7817 PINE AVE., WILMINGTON

3,280

27 SANDY POINT, FIGURE EIGHT ISLAND

6,307

1121 HARBORWAY PLACE, LANDFALL

7,781

2340 OCEAN POINT DRIVE, LANDFALL

7,440

807 S. LUMINA AVE., WRIGHTSVILLE BEACH

4,660

$5,050,000 $5,000,000 $4,800,000 $4,500,000

SOURCE: N.C. REGIONAL MULTIPLE LISTING SERVICE

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BY VOLUME IN 2021

SIDES*

VOLUME $

AVERAGE $

6662

$2,227,471,886

$334,355

4,033.5

$1,897,673,406

$470,478

KELLER WILLIAMS REALTY

3,268

$1,084,317,425

$331,798

CENTURY 21 SWEYER & ASSOCIATES**

1,917

$568,637,118

$296,629

423

$339,543,692

$802,704

NEST REALTY

761.5

$313,174,454

$411,260

EXP REALTY

901

$298,172,404

$330,935

742.5

$280,322,867

$377,539

806

$266,874,038

$331,109

695.5

$236,148,981

$339,538

MARGARET RUDD & ASSOCIATES

580

$186,983,156

$322,385

COASTAL REALTY ASSOCIATES

491

$172,525,395

$351,376

PROACTIVE REAL ESTATE

532

$157,603,599

$296,247

COASTAL PROPERTIES

434

$146,584,140

$337,751

ART SKIPPER REALTY INC.

420

$92,448,885

$220,116

COLDWELL BANKER SEA COAST ADVANTAGE

INTRACOASTAL REALTY CORP.

3 4 5

LANDMARK SOTHEBY'S INTERNATIONAL REALTY

6 7 8

BLUECOAST REALTY CORP.

TOP15

RESIDENTIAL

REAL ESTATE FIRMS

MARKET SNAPSHOT

RE/MAX AT THE BEACH

RE/MAX ESSENTIAL

11 12 13 14 15

SOURCE: N.C. REGIONAL MULTIPLE LISTING SERVICE FOR NEW HANOVER, BRUNSWICK AND PENDER COUNTIES FOR 2021 AS OF FEB. 9, 2022

* SIDES COUNT THE BUYING OR SELLING SIDE OF A REAL ESTATE TRANSACTION **CENTURY 21 SWEYER & ASSOCIATES IS NOW BERKSHIRE HATHAWAY HOMESERVICES CAROLINA PREMIER PROPERTIES.

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TOP15

MARKET SNAPSHOT

AGENTS in 2021 BY VOLUME for

NEW HANOVER, BRUNSWICK & PENDER COUNTIES

VANCE YOUNG, INTRACOASTAL REALTY CORP.

KEITH BEATTY, INTRACOASTAL REALTY CORP.

THE RISING TIDE TEAM, INTRACOASTAL REALTY CORP.

SIDES*

232

366

264.5

VOLUME $

SIDES

THE JENNIFER BULLOCK TEAM, RE/MAX EXECUTIVE

231

$83,598,540

TEAM HARDEE HUNT & WILLIAMS

$79,911,000

KIM ANDERSON, ART SKIPPER REALTY INC.

362

$79,412,283

KBT REALTY TEAM, KELLER WILLIAMS REALTY

252

$76,082,407

THE CRONICK TEAM, COLDWELL BANKER SEA COAST ADVANTAGE

196

$63,471,459

NICK PHILLIPS, LANDMARK SOTHEBY’S INTERNATIONAL REALTY

$62,169,795

WENDY WILMOT, WENDY WILMOT PROPERTIES

70.5

$61,926,000

NOLAN FORMALARIE, DISCOVER NC HOMES

153

$59,496,760

$214,349,714

$163,768,439

$115,629,632

VOLUME $

HANK TROSCIANIEC & ASSOCIATES, KELLER WILLIAMS REALTY

329

$107,251,613

JOHN HAMILTON, BETTER BEACH RENTALS & SALES

85.5

$58,933,811

JERRY HELMS, BRUNSWICK FOREST REALTY

269.5

$102,657,737

GRAND VISIONS, COASTAL REALTY ASSOCIATES

193

$54,025,185

* SIDES COUNT THE BUYING OR SELLING SIDE OF A REAL ESTATE TRANSACTION

SOURCE: N.C. REGIONAL MULTIPLE LISTING SERVICE

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TOP20

2021*

MARKET SNAPSHOT

1 2 3 4 5 6 7

2021* CLOSINGS

601

AVERAGE PRICE

2021 CLOSINGS

D.R. HORTON

251 $369,764 BILL CLARK HOMES $378,742 PULTE GROUP

169 $390,858 STEVENS FINE HOMES 168

$269,208 LOGAN HOMES

146

$446,489 H & H HOMES

128

2021 CLOSINGS

AVERAGE PRICE

MCADAMS HOMES

$287,381

CLAYTON PROPERTIES GROUP

208

RESIDENTIAL BUILDERS BY CLOSINGS N& EPWE NHDAENROCVOE RU,NBT IREUSN S W I C K

$273,159 MCKEE HOMES

AVERAGE PRICE

LGI HOMES

$305,526 ROBUCK HOMES

$420,959 PYRAMID HOMES

88 $329,776 HARDISON BUILDING CO.

77 $462,145 AMERICAN HOMESMITH

35 $238,286 HERRINGTON CLASSIC HOMES

12 13 14

$411,938 TRUSST BUILDERS

32 $295,258 SEVENTY WEST BUILDERS

$361,825 REALSTAR HOMES

31 $364,532 A SYDES CONSTRUCTION

$283,407 CAVINESS & CATES

$283,180

$328,209

$340,750

SOURCE: ZONDA COVERAGE: NEW HANOVER, BRUNSWICK & PENDER COUNTIES (EXCLUDES ONSLOW COUNTY) * DECEMBER 2020 THROUGH NOVEMBER 2021

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Since 1965

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CUSTOM SOFTWARE DEVELOPMENT MOBILE APP DEVELOPMENT DIGITAL MARKETING UI/UX DESIGN

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UNCW.EDU/CIE 910.962.2206

THE TAKEAWAY

Out &

About photo by DARIA AMATO

nuggled inside a ’69 Shasta Loflyte camper is Wilmington’s first and only mobile design boutique, otherwise known as Bea. The 7x14-foot camper is operated by Big Sky Design, which is owned by Jennifer Kraner. After Big Sky Design, which marks its 25th anniversary next month, moved in 2020 to a larger space on Oleander Drive, Bea’s role shifted. “We have more square footage on the floor for furniture and merchandise, so Bea’s no longer used as a mobile boutique as she once was,” Kraner said. “But she is used as a real attention-getter in front of our space when we do have events. So, she is just sort of a well-loved part of Big Sky.” - SAMANTHA KUPIAINEN

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WilmingtonBiz Magazine - 2022 Residential Real Estate

Articles inside

COVER STORY: HOUSING CONUNDRUM

BIZ BITES

THE TAKEAWAY

THE DIGEST

CORPORATE COLLABORATION

IN PROFILE: ANNE GARDNER

REAL ESTATE TRENDS