Real Estate

Fairfield Residential Returns to Charlotte with 307 Units in Opportunity Zone

Fairfield Residential returns to Charlotte with 307-unit project in opportunity zone, valued at $4.12 million.

By Doug Elli

7/10, 14:03 EDT
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Key Takeaway

  • Fairfield Residential is developing a 307-unit project in Charlotte's Lockwood neighborhood, with completion expected by 2026.
  • The project is located in an opportunity zone and follows a $9.15 million land purchase and rezoning approval.
  • Charlotte's multifamily market has seen over 14,300 new units in the past 18 months, keeping average rents down to $1,445 per month.

Fairfield Residential's Return to Charlotte

San Diego-based Fairfield Residential is making a notable comeback in Charlotte's multifamily market with a new 307-unit project in the Lockwood neighborhood, just north of uptown. This development marks Fairfield's re-entry into the market after selling its previous holdings just before the pandemic. The project, located at 2300 North Tryon, is strategically positioned in an opportunity zone near the NoDa district, a factor that significantly influenced Fairfield's decision to invest. The first phase of units is expected to be delivered by late next year, with full completion anticipated by 2026.

Project Details and Financials

Fairfield Residential has filed a building permit valued at $4.12 million with Mecklenburg County for the new development. The project will feature a mix of studio to two-bedroom units and will include amenities such as a pool, fitness center, co-working lounge, rooftop lounge, community dog park, and outdoor kitchen space. Fairfield is serving as the general contractor, with Dwell Design Studio as the project architect and Bolton & Menk as the civil engineer. The company acquired the 3.6-acre parcel for $9.15 million in October 2023 from Charlotte-based Flywheel Group, following a rezoning approval by the Charlotte City Council in November 2022.

Charlotte's Multifamily Market Dynamics

The Charlotte metro area has seen a significant influx of new apartment units, with over 14,300 units coming online in the past 18 months and another 10,000 expected by the end of the year, according to MRI ApartmentData. This surge in supply has contributed to a decrease in average rents, which currently stand at $1,445 per month, down 3.7 percent from a year ago, as reported by Apartmentlist.com. Fairfield's project is poised to enter the market on the other side of this supply wave, aligning with the area's continued growth and investment.

Broader Implications for Real Estate Investment

Fairfield's strategic investment in the Lockwood neighborhood underscores the growing appeal of opportunity zones for real estate development. These zones offer tax incentives that attract significant investment, fostering both residential and commercial growth. The Lockwood project is part of a larger trend of increased multifamily and commercial development in Charlotte, particularly in areas like Camp North End. This trend highlights the city's potential for sustained growth and the attractiveness of its real estate market to national developers.

Management Quotes

  • Michael Gribble, Vice President of Fairfield’s Carolinas region:

    "The amount of investment driven by the opportunity zone is really interesting to us. You can see that investment on the single-family and multifamily sides, but also the commercial side. Camp North End is a great example. The area is poised for continued investment and growth, and that’s what got us excited about the location."
    "We were able to take a longer term view with this project and believe we’re going to be delivering on the other side of the current supply wave into the area’s continued growth."