MULTIFAMILY HOUSING MARKET BOOMING IN LAKE CHARLES

Karla Wall Thursday, August 20, 2015 Comments Off on MULTIFAMILY HOUSING MARKET BOOMING IN LAKE CHARLES
MULTIFAMILY HOUSING MARKET BOOMING IN LAKE CHARLES

By Karla Wall

West M

West M

The coming economic expansion will impact all areas of life in SWLA — indeed, the effects are already beginning to be seen and felt. And one of the biggest signs of what’s to come has been the increase in multifamily housing in the area. With up   to 22,000 workers expected in the area over the next two or three years, housing is one of the biggest issues facing the area. And developers are scrambling to fill the need.

“Almost every apartment complex in the area is expanding, and we’re not talking about expanding by one or two units; we’re talking about major expansions,” says local developer Drew Hoffpauir, who’s developed several new complexes in the area. He mentions the significant expansion at West M Apartments on McNeese St. as a case in point. “And there’s been a lot of new construction.”

If you drive down any major thoroughfare in the area, you’re likely to see townhomes or apartments either going up, being renovated, or being constructed out of an existing building.

Charleston Point: New townhomes on Pithon/Clarence.

Charleston Point: New townhomes on Pithon/Clarence.

That’s a sign of the coming economic expansion, but it’s also a sign of a growing national trend. The rental market nationwide has far outgrown the permanent housing market over the last couple of decades. The rental population in the U.S. has increased by 8 million during that period of time; the number of homeowners has grown by only 2 million — a 20-year low.

Here in Lake Charles, construction of new multifamily housing complexes is booming, and Hoffpauir says that the market will be able to absorb the increase.

“I have a waiting list of two months for nearly all my properties,” says Hoffpauir. “I haven’t had to turn a vacancy in months now.”

Jeremy Snider’s company, JC Homes and Development, has developed several new properties, including a new townhome complex called Charleston Point in downtown Lake Charles, on the corner of Pithon and Clarence Streets. While Snider doesn’t build rental properties (his luxury townhome units are sold, not rented), he says his multifamily buildings are filling up, as well.

“We’ve sold every unit in the Pithon/Clarence construction,” he says.

“There’s a huge number of apartment complexes going up in this area,” says Chris Khoury of the PAR Group, which is completing construction of a new 24-unit complex called Benoit Place, near the intersection of Sale Rd. and Nelson St. “And there’s an overwhelming need for that type of housing here.”

Cypress Point

Cypress Point

That kind of demand is just the tip of the iceberg, and area developers are building to meet the even greater need that will be occurring in the next couple of years.

Repurposing And Renovating

There are several major complexes going up in the area — there are plans for a huge complex in Sulphur (to be called Cypress Point); Khoury’s Benoit Place; Charleston Park, a 30-townhome complex on Michael Debakey Dr.; Charleston Point; Snider’s new townhomes on Clarence and Pithon Streets; to name just  a few.

But, says Jody Guidry, of Jody Guidry Realty, the trend, which perhaps began with the renovation of the old Muller building downtown into loft apartments, seems to be turning older buildings into small multi-unit housing complexes.

“We’re seeing a lot of developers buying older buildings and turning them into apartments over the last year,” he says.

A case in point: Hoffpauir’s apartment complex at 517 Michael Debakey Dr. The eight-unit complex was formed from an old mansion, says Hoffpauir, into high-end corporate rental apartments. Fully furnished, complete with cookware and linens, cable and electric, and optional housekeeping services, the apartments offer luxury accommodations for stays of 90 days or more.

And these new apartments and townhomes will offer luxury. People, says Hoffpauir, are looking for high-end dwellings.

“There’s a need for housing across the spectrum,” he says. “But more people are looking for high-end places, and they’re willing to pay more than $1,200 per month for it.”

Location, Location …

Cypress Point

Cypress Point

While permanent housing development, and real estate sales, are expanding outward from Lake Charles into outlying areas such as Iowa and Lacassine, Vinton, and north of Lake Charles into Ragley and Longview, multifamily construction is mainly in the central and downtown regions of Lake Charles.

“I like the Garden District of Lake Charles, and the McNeese area, as far as duplexes, townhomes and apartments,” says Guidry. “You don’t get as good a return on investment (in multifamily housing) if you build in outlying areas.”

While Snider says JC Homes is building a new 44-unit complex called Maison de Ville off Prien Lake Rd., near Country Club, he says the decision to build Charleston Point downtown was an easy one; though Charleston Pointe is not rental property, he says the area needed new housing options.

“We really wanted something downtown; there’s really no housing in that area,” he says. “We were the first residential construction in that area since the Muller lofts.”

“I like Central Lake Charles,” says Hoffpauir. “Lots of people are looking to locate in a centralized area.”

Hoffpauir’s properties in Central Lake Charles include two complexes on W. LaGrange St., a new 28-unit complex, called Elmwood, on Elm St.; off Sallier St.; two complexes on 11th St.; Common St.; 10th St.; Kirkman St.; and East St.

Guidry has duplex and townhome properties on the corner of Common and Sale Sts.; Common St.; and Hodges St.

New apartments at Common and West Sale.

New apartments at Common and West Sale.

New developments are going up elsewhere in the city, of course, with South Lake Charles being an extremely popular site. Snider is constructing a 100-plus-unit complex on Lake St., south of the post office, and will also soon begin construction on a 20-unit complex on Heard Rd., just off W. Prien Lake Rd.

Apartments and townhomes won’t be the answer to the area’s need for worker housing, perhaps — worker villages, corporate housing and extended stay facilities will be needed, as well — but the coming influx of families and workers into Lake Charles, and the growing trend toward renting, will keep developers of multifamily housing busy for some time.

A Look At Three Of The Area’s Newest Apartment And Townhome Developments

 

Charleston Park

Charleston Park

Charleston Park

155 Dr. Michael Debakey Dr., Lake Charles

Hoffpauir Properties

30 units

Rent: $1,600/month

Completion: First 18 units preleasing now, available Oct. 1. Remaining units scheduled for completion by end of 2015.

Charleston Park offers luxury townhomes designed and situated in one of the most desirable neighborhoods in Lake Charles. Each two-bedroom, one-and-a-half-bath unit is approximately 1,850 sq. ft., and features open floorplan, oversize bedrooms and two-car garage.

 

Benoit Place

Benoit Place

Benoit Place

South Lake Charles, Near The Intersection Of Sale And Nelson

PAR Group Development

24 units

Rent: $1.295/month

Completion: September.

These luxury apartments are located near Barbe School, with easy access to shopping, casinos, restaurants and hospitals.

Each two-bedroom, two-bath unit features wood floors, granite counters and open floor plans. In-unit washers and dryers are included for a small upgrade fee.

 

Charleston Point

Clarence and Pithon Sts., downtown Lake Charles

JC Homes And Development

24 units

Rent: These units are not rentals; they’re selling for $150,000-$175,000. Five units are under contract.

Completion: September.

These two- and three-bedroom downtown townhomes are 1,444 sq. ft., and include luxurious touches, such as granite countertops, crown molding, open floor plans, island kitchens and stainless appliances.

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