STRATEGIC BLUEPRINT
Executive Summary
The Novus is poised to enter the Downtown Durham multifamily market at a pivotal time. Located in the vibrant Five Points District at 115 Morris St, this 27-story development with 188 rental apartments and over 22,000 square feet of ground floor retail will be competing in a market characterized by moderating rents, elevated construction activity, and strong but uneven absorption.
This executive summary provides an overview of the complete strategic blueprint. Navigate through the sections on the left to explore detailed market intelligence, competitive analysis, and our recommended strategies for The Novus's successful lease-up.
Project Overview
Key performance indicators and project details for The Novus
KEY METRICS
Projected Lease-Up
12 mo
To stabilization
Competitive Rents
15%
Premium to market
Concessions
1.5-2 mo
During lease-up
Height Advantage
27 stories
Tallest in downtown
*12-month projection based on standard generic approach.
**DISRVPT projects 9–9.5 months with proprietary strategy.
Location
Five Points District
115 Morris St, Durham
Unit Mix
188 Units
Studio to 2-bedroom units
Delivery
Q2 2025
$2,150 to $8,732 rates
Absorption Forecast
Projected lease-up velocity by floor plan type with detailed financial modeling
Financial Projections
Standard projections show 12 month stabilization period with traditional approach
Proprietary strategy projects 9–9.5 month stabilization with our recommended approach
Studio and 1BR configurations projected to absorb 35% faster than larger unit types
Market Opportunity Overview
Strategic opportunities for The Novus in Downtown Durham's multifamily market
MARKET INSIGHTS
COMPREHENSIVE OPPORTUNITY ANALYSIS
Our detailed market opportunity analysis examines current market dynamics, projected absorption rates, and target demographic profiles to identify key areas of competitive advantage.
KEY MARKET INSIGHTS
- •The Durham multifamily market is experiencing a period of adjustment with moderating rents (-12.8% year-over-year for one-bedrooms) and elevated construction activity.
- •Developers delivered 12,002 units in Raleigh-Durham in 2024 (a decade high) with an additional 20,272 units under construction as of January 2025.
- •The Downtown Durham submarket, particularly Five Points District, offers stronger absorption potential due to its walkability and urban amenities.
- •The Novus's distinctive high-rise format (27 stories) provides significant differentiation in a market with limited high-rise luxury inventory.
- •Target demographic analysis reveals three high-potential segments: Urban Professionals (25-40, income range), Empty Nesters/Downsizers (55+), and Remote Workers seeking work-from-home friendly environments.
CURRENT MARKET CONCESSIONS
Downtown Durham
- •
1-2 months free on 12-month leases
Avg. effective discount: 8-16%
Five Points District
- •
Up to 1.5 months free on 12+ month leases
Avg. effective discount: 8-12%
Ninth Street Area
- •
Up to $1,000 off select units + gift cards
Avg. effective discount: 6-10%
Market Position Analysis
SWOT analysis identifying The Novus's position within the competitive landscape
STRENGTHS
- •Prime location in the Five Points District with superior walkability
- •Tallest residential building (27 stories) offering unmatched views
- •Distinctive amenity package including outdoor movie theater and golf simulators
WEAKNESSES
- •Entering a market with moderating rents and elevated concessions
- •Premium pricing ($2,150-$8,732) in a price-sensitive market
- •Unproven property with no established reputation
OPPORTUNITIES
- •Growing demand for remote work-friendly apartments
- •Limited true high-rise competition in downtown Durham
- •Enhanced technology integration to differentiate from competitors
THREATS
- •Aggressive concessions from competitors (up to 2 months free)
- •Continued rent moderation affecting luxury rental demand
- •Competition from established properties with resident bases
The Novus can leverage its distinctive height advantage and premium amenities to overcome market challenges, targeting the underserved luxury high-rise segment while strategically addressing Durham's market rate moderation through value-focused positioning.
Strategy Pillars
Strategic approach categories based on our market position analysis
RECOMMENDATIONS & ROADMAP
High-Rise Positioning
Leverage 27-story vertical living experience with unparalleled views and premium amenities
Tech-Forward Living
Smart home integration and premium connectivity for Durham's education and tech professionals
Vertical Neighborhood
Authentic connection with Durham's community through technology integration and local partnerships
IMPLEMENTATION ROADMAP
Our tactical roadmap converts strategies into actionable steps with clear timelines, responsible parties, and success metrics.
PRE-LAUNCH PHASE
Building foundations for a successful launch
- Establish premium brand identity across all touchpoints
- Launch digital presence with distinctive content strategy
- Develop strategic local partnerships for resident benefits
- Design pre-leasing incentive structure with early-bird benefits
LAUNCH PHASE
Maximizing initial interest and momentum
- Implement premium service model with hospitality-trained staff
- Execute high-visibility marketing campaign with digital focus
- Launch signature community events and programming
- Activate artist residency program with public installations
STABILIZATION PHASE
Optimizing for long-term success
- Transition to targeted marketing for remaining unit types
- Optimize pricing strategy based on absorption analytics
- Implement resident retention program with loyalty benefits
- Initiate premium service add-ons for ancillary revenue
PRE-LAUNCH PHASE
6 months pre-opening
- Establish premium brand identity across all touchpoints
- Launch digital presence with distinctive content strategy
- Develop strategic local partnerships for resident benefits
- Design pre-leasing incentive structure with early-bird benefits
LAUNCH PHASE
Opening to 6 months
- Implement premium service model with hospitality-trained staff
- Execute high-visibility marketing campaign with digital focus
- Launch signature community events and programming
- Activate artist residency program with public installations
STABILIZATION PHASE
6-12 months post-opening
- Transition to targeted marketing for remaining unit types
- Optimize pricing strategy based on absorption analytics
- Implement resident retention program with loyalty benefits
- Initiate premium service add-ons for ancillary revenue
FINANCIAL IMPACT PROJECTIONS
Comparing standard market approach to our proprietary strategy
| Metric | Standard Approach | Recommended Strategy | Improvement |
|---|---|---|---|
| Stabilization Timeline | 12.5 months | 9-9.5 months | ~25% faster |
| Concession Value | 6-8 weeks free | 4-6 weeks free | ~30% savings |
| Year 1 Revenue | $14.2M | $16.8M | +$2.6M (+18.3%) |
| Renewal Rate | 55-60% | 70-75% | +15% higher |
The Novus's premium positioning strategy is projected to achieve stabilization 25% faster than industry standards while generating an additional $2.6M in first-year revenue through our specialized high-rise differentiation approach.