The last apartment complex sale which yielded a higher price per apartment unit was for a mid-rise development, rather than a garden-style apartment complex like The Apartments at Meadowmont, which is 10 years old, says Smith.

The Chapel Hill submarket is truly unique because of its barriers to entry, says Smith. "Only one or two developments were built in this sub-market in the last two years," he says. "Only 827 units have been added to the market since 2000, largely due to the city's planning department wanting to protect the college-town charm," says Smith.

Chapel Hill is part of the Research Triangle market, which is comprised of Chapel Hill, Raleigh and Durham. The area is also dominated by universities. Investors like the area because it has a diverse and stable employment base created by University of North Carolina, the Duke Medical Center, North Carolina State, Duke University and, of course, The Research Triangle Park. Over 50,000 people are employed at the park alone, which is about 10 miles away from Meadowmont, says Smith.