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Lennar to Develop Carolina Row Mixed-Use Project; Dilweg Completes $22M Refinancing Loan for Capital Center Office Complex

17 Dec 2014, 9:47 pm

By Adriana Pop, Associate Editor

Lennar Commercial is the new developer of the 10-acre Carolina Row at Crabtree Valley retail complex on Glenwood Avenue in Raleigh.

According to the NewsObserver, the company has taken over the project from Trademark Property, which first unveiled its plans in May.

Carolina Row will include up to 150,000 square feet of retail and restaurant space, as many as 175 apartments on the upper levels and a pedestrian/bicycle bridge over Glenwood Avenue connecting Carolina Row to Crabtree Valley Mall.

The new development will compete for occupancy with Glenwood Place, Grubb Ventures’ recently announced mixed-use project in the city’s same neighborhood. Carolina Row will be built just a mile north from Glenwood Place.

Lennar has scheduled the grand opening of the project for the fourth quarter of 2016.

Upon completion, Carolina Row will be part of a 30-acre master plan that also includes the Raleigh Marriott Crabtree Valley property and land where the Richmond Hills apartment community is located.

In other local news, the Triangle Business Journal reports that The Dilweg Companies investment firm has secured a $22 million loan refinancing with Goldman Sachs to regain full ownership of the Capital Center office property at 5511 Capital Center Drive in west Raleigh.

Dilweg has owned the seven-story office building since 2003, but in 2011 it entered into a joint venture agreement with Trinity Partners of Charlotte in order to refinance the property loan and make renovations.

Dilweg was assisted in the financing deal by Howard Brooks with Medalist Capital’s Raleigh office.

The 156,000-square-foot, Class A corporate campus was 94 percent occupied at the time the transaction closed. Spectraforce Technologies and the University of Phoenix, as well as MetLife and Plexus are among the property’s tenants, which also features a lake, walking trails and outdoor seating.

Photo credits: loopnet.com

For our most recent multifamily, office and industrial market snapshot for the Triangle area, click here.

Grubb Ventures Plans $500M High-Density Mixed-Use Revitalization Project in Raleigh

11 Dec 2014, 10:42 pm

By Adriana Pop, Associate Editor

An aging office park along one of the busiest stretches of Glenwood Avenue in Raleigh could soon be transformed into a mix of high-end shops, apartments, offices and a hotel.

According to the NewsObserver, Grubb Ventures is planning to invest as much as $500 million into the new development known as Glenwood Place, which would be built in multiple phases over the course of several years.

Preliminary plans call for 140,000 square feet of retail and more than a half-million square feet of office space, a 292-unit apartment complex, as well as additional apartments or condominiums.

The company has partnered with Lincoln Harris of Charlotte to build the project, which would cover a 42-acre site currently home to a handful of office buildings that were constructed in the 1970s.

Besides the residential portion, Grubb’s investment includes a significant office and retail component, which would have been unlikely a few years ago but now makes sense with the recovery of the economy.

“It’s been apartments for the last three or four years and now office is starting to come in,” Brian Reece, a partner with Karnes Research, a Raleigh firm that tracks commercial real estate trends, told the newspaper.

The developers will now seek to rezone the property from office and industrial to planned development, a new zoning category that would give them more flexibility in how the retail is positioned and how the density within the project is dispersed. It will also allow for the construction of higher buildings of up to 195 feet or about 12 stories.

Grubb expects the first phase of the project to include the retail and hotel components. The company, which specializes in redeveloping older infill residential and office properties, has also developed the recently opened 401 Oberlin apartments at Cameron Village (pictured).

Photo credits: Grubb Ventures

For our most recent multi-family, office and industrial market snapshot for the Triangle area, click here.

Sherman Residential Acquires Raleigh Multi-Family Complex for $48.5M; The Carroll Organization Buys Apartment Community in Chapel Hill for $30M

5 Dec 2014, 10:56 pm

by Adriana Pop, Associate Editor

The 298-unit Manor Six Forks apartment community in Raleigh now has a new owner.

According to the NewsObserver, Deerfield, Ill.-based Sherman Residential has recently bought the complex for $48.45 million. The acquisition also included a retail center and an adjacent 16-acre parcel at the corner of Atlantic and Hodges Road.

Located at the intersection of Atlantic Avenue and Six Forks Road, the property was completed in 2010 by Raleigh real estate company The Boylan Cos. It was later foreclosed upon and acquired by a Massachusetts investor for $37.1 million at a foreclosure auction in 2012. The following year, Aspen Square Management, also of Massachusetts, bought the complex for $30.9 million.

The community offers a variety of one-, two-, and three-bedroom apartment homes with luxury features including private balcony or patios, quartz countertops and walk-in closets. Amenities include a swimming pool, clubhouse with Internet Café, a high-energy fitness center, theater room, dog park, putting green and outdoor terrace. The community is also situated within two miles of North Hills and within walking distance to Holly Park Shopping Center, Costco, and Kroger.

In other news, the Triangle Business Journal reports that the Carroll Organization of Atlanta has purchased the 200-unit Notting Hill apartment community in Chapel Hill from Texas investor Crow Holdings. Located near the Durham County line, the property sold for $30.5 million.

To complete the acquisition, the Atlanta investment company has partnered with AIMS Real Estate, a business unit within Goldman Sachs Asset Management.

The companies will now continue the renovation project initiated by the community’s previous owner. About 80 percent of the units still need to be upgraded with new stainless steel appliances, resurfaced countertops, wood flooring, new lighting and hardware fixtures.

Carroll Management Group will manage the property.

In 2013, the Carroll Organization also acquired the 369-unit New Haven at the Park community in Durham, which it renamed Arium Research Triangle Park. So far this year, the firm has purchased a total of 14 multifamily properties valued at more than $570 million.

Photo credits: www.manorsixforks.com

Halle Cos. Plans 300-Acre Mixed-Use Residential Development off Durham Freeway

26 Nov 2014, 9:32 pm

by Adriana Pop, Associate Editor

A new mixed-use residential development could soon rise on a 300-acre site just off the Durham Freeway at the Ellis Road exit.

According to the NewsObserver, the Halle Cos. has recently completed the acquisition of the largely vacant land from 12 different owners for a total of $10 million.

Plans call for 600 single-family houses and townhomes, 600 apartments and about 60 acres of retail space.

To develop the project, the Silver Springs, Md.-based Halle Building Group has once again partnered with Apex First Development. The two companies have also built the Villages of Apex (pictured), a 202-acre residential development consisting of a mix of retail, single-family homes and apartments.

Construction on the residential component of the new project is expected to span over five years. It is scheduled to begin next spring and will initially involve a first batch of apartments.

Work on the retail component will depend on the market, Halle’s vice president, Stephen Fleischman, told the newspaper.

The company’s other projects in the region include the Veterans Affairs outpatient clinic in Charlotte, the Eaton’s Crossing residential community at Lake Gaston, the Ford’s Colony residential development in Rocky Mount and the Foxborough Crossing development in Wendell.

In Raleigh, Halle owns property on Buffaloe Road, where it plans to build several hundred apartments and is also in the process of purchasing a site on Raleigh Beach Road.  Furthermore, its portfolio in Holly Springs includes 336 completed apartments, while another 174 units are in the planning stages.

According to Fleischman, the Triangle and North Carolina markets are particularly attractive because the cost of land in these areas hasn’t risen as much as it has in other parts of the country where Halle has been active.

“In the Washington metropolitan area the price of ground is just so prohibitive that it’s very difficult to buy property and make the numbers work,” he added.

Photo credits: The Halle Companies via www.villagesofapex.com

For our most recent multi-family, office and industrial market snapshot for the Triangle area, click here.

Crescent’s $700M Multi-Family Portfolio Sale Includes Three New Triangle Apartment Communities

13 Nov 2014, 5:33 pm

by Adriana Pop, Associate Editor

Crescent Communities has announced plans to sell a portfolio of nine new apartment communities in North Carolina, Florida and Georgia, for a total of approximately $700 million.

Three of the properties included in the sales transaction are located in the Triangle: the 282-unit Crescent Cameron Village in Raleigh that recently opened; the 303-unit Crescent Ninth Street in Durham that opened in July; and the 208-unit Crescent Main Street in Durham, currently under construction.

According to the Triangle Business Journal, these communities are valued at about $250,000 per unit. The Triangle’s current record-holder is the Park & Market apartment property at North Hills that sold in 2012 for $200,489 per unit.

The buyer of the three Triangle communities is an unnamed private institutional investor. The entity is also purchasing Crescent Dilworth in Charlotte, as well as Crescent Howell Mill and Crescent Terminus in Atlanta.

A fund advised by UBS Global Asset Management is the buyer of the remaining three properties included in the portfolio sale. The entity has already closed on the acquisition of the 367-unit Crescent Bayshore property in Tampa for $111.5 million, or $303,814 per unit, and will also be purchasing Crescent Central Station in Orlando, and Crescent SouthPark in Charlotte.

Upon closing within the next 12 to 18 months, the entire sales agreement, which was finalized prior to completion of property construction, will be the largest transaction to date of a multifamily portfolio within Crescent’s markets in the Sunbelt and Mid-Atlantic area.

A CBRE team led by Malcomb McComb, vice chairman of CBRE’s Investment Properties Group in Atlanta, represented Crescent in the transaction.

“This portfolio was more than four years in the making and entailed thoughtful, deliberate selections of location and design for each community,” Brian Natwick, president of the Crescent Communities Multifamily Group, said in a news release. “As demonstrated by this very successful transaction, investors recognize that our strategic investments in creating superior multifamily properties can provide significant long-term capital growth opportunities.”

“Crescent Communities’ landmark transaction is a reflection of the company’s position as an industry leader in developing world-class communities that capture the housing and lifestyle preferences of today’s consumers,” added CBRE Vice-Chairman Malcolm McComb. “Buyers have found that the opportunity to invest in quality properties in some of the nation’s highest growth markets makes Crescent’s properties especially appealing.”

Photo credits: Crescent Communities

For our most recent multi-family, office and industrial market snapshot for the Triangle area, click here.

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