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Taft Sells Apartment and Retail Building in Raleigh to TriBridge JV for $65M

29 Jan 2015, 5:07 pm

by Adriana Pop, Associate Editor

Taft Family Offices, a 30-year-old real estate development firm in Greenville, recently sold the 401 Oberlin apartment and retail building across from Cameron Village in Raleigh.

According to the Triangle Business Journal, a joint venture partnership led by TriBridge Residential of Atlanta paid $65 million or $267,000 per unit to acquire the 244-unit property at the northwest corner of Oberlin Road and Clark Avenue. The five-story complex, which opened in 2014, also features about 9,000 square feet of ground-floor retail space anchored by the new Tupelo Honey Cafe restaurant. The property was about 62 percent leased at the time of the sale.

Another remarkable transaction of a multi-family property in the same area occurred in December, when the Crescent Cameron Village apartment community across the street sold for $76.8 million, or a record-breaking $272,000 per unit.

“Raleigh has become very much a ‘core’ market for investors now,” Tom Taft Sr., the company’s owner, told the newspaper. “Five years ago, you couldn’t say that. It’s pretty exciting for the Triangle.”

The CBRE investment market team from Atlanta, along with Jeff Glenn from CBRE’s Raleigh office, represented Taft and his partners in the transaction.

The pace of the market determined other apartment developers to invest in the area. Wood Partners for instance is planning a 215-unit luxury apartment community on a site of nearly 3 acres at 616 Oberlin Road.

Taft Family Offices is now planning to invest a portion of the proceeds from the sale into a new multi-family complex in Charleston, S.C.

Photo credits: Grubb Ventures

Concord Hospitality, Kane Realty Partner to Create North Carolina’s First AC Hotel

22 Jan 2015, 10:29 pm

by Adriana Pop, Associate Editor

Local developers Concord Hospitality Enterprises and Kane Realty Corp. have partnered once again, with plans to build and operate the state’s first AC Hotel. Scheduled for completion in 2016, the new 133-key property will be located in Raleigh’s North Hills section, near the LEED Gold-certified CAPTRUST Tower.

According to the Triangle Business Journal, the AC Hotels brand is similar to Starwood Hotels’ Aloft brand. It offers a staffed lounge, but no room service and focuses on contemporary design, style and technology. AC Hotels was founded in 1998 and has nearly 100 hotels located mostly in Europe. In 2011, the chain formed a joint venture with Marriott International, with the purpose of further expanding abroad. So far, the only AC Hotel property in operation in the United State is located in New Orleans. Within the next three years however, more than 30 such new hotels are set to open throughout the U.S. and Latin America.

Concord and Kane have developed two other lodging facilities in Raleigh – the 223-room, full-service Renaissance Hotel that opened at North Hills in 2008 and the 137-room Hyatt House extended-stay property that opened in 2013.

“It is clear to us that this flourishing urban center can support and will benefit greatly from the addition of another well-respected Marriott brand that speaks to a slightly different demographic than the existing hotels.”

Kane Realty’s other projects in the area include the new North Hills Tower Two office building currently under construction at the corner of Six Forks and Dartmouth roads and an apartment project planned next to the upcoming AC Hotel.

Photo credits: Concord Hospitality

North Carolina and Raleigh Reach $52M Agreement on Former Dix Hospital Campus

16 Jan 2015, 11:31 pm

by Adriana Pop, Associate Editor

After months of negotiations, state and municipal leaders have reached a deal that paves the way for the creation of the city’s own Central Park.

On Jan. 12, the Raleigh City Council announced it will pay $52 million for the acquisition of the state-owned Dorothea Dix campus near downtown Raleigh. According to the Triangle Business Journal, the purchase price is the middle point of the two property appraisals that had been commissioned by both the state and the city.

Located on the south side of Western Boulevard east of Centennial Boulevard, the 307-acre property contains the site of the former Dorothea Dix psychiatric hospital and dozens of administrative buildings currently used by state agencies. The mental health treatment facility has been operational from 1856 until 2012, when its services were transferred to the Central Regional Hospital in Butner. That was when Raleigh’s pursuit of a world-class destination park began. Most recently, former Gov. Bev Perdue’s long-term lease for the grounds that was proposed in 2012 was rejected by Republican lawmakers, who said the state wasn’t getting enough.

Under the terms of the new agreement, the City of Raleigh has until Dec. 31, 2015 to identify a source of funding. Furthermore, a lease-back deal will allow the state to continue to use the buildings that currently host the offices of the Department of Health and Human Services.

“This agreement allows the creation of a destination park in our state capital, protects state taxpayers and continues to honor the legacy of Dorothea Dix,” Gov. Pat McCrory said in a prepared statement.

The final terms of the transaction will need to be approved by the North Carolina Council of State and the Raleigh City Council.

Photo credits: twbuckner via Flickr

Crescent Communities Completes Sales of Two Multi-Family Properties to Berkshire Group Affiliate

8 Jan 2015, 5:16 pm

By Adriana Pop, Associate Editor

Charlotte-based Crescent Communities recently sold the 303-unit Crescent Ninth Street apartment complex in Durham.

According to the Triangle Business Journal, a Berkshire Group affiliate paid $77 million, or approximately $254,000 per unit, to acquire the property. In another recent transaction, the company purchased the 282-unit Crescent Cameron Village apartment community on Oberlin Road in Raleigh, also from Crescent Communities. This asset sold for a record $76.8 million, or $272,000 per unit, which equates to about the same amount for which a single-family home sold in Wake County during the month of November.

The two transactions are part of a nine-property portfolio sale of sustainable, amenity-rich apartment complexes developed by Crescent Communities in the Southeast. Berkshire’s affiliates are expected to acquire six of these assets, including Crescent Main Street in Durham later this year.

These deals in fact mark the third and fourth transactions of Crescent’s portfolio sale and the second and third acquisition by Berkshire’s affiliates, which closed on the purchase of Crescent Terminus in Atlanta’s popular Buckhead neighborhood in December. Another buyer, UBS Global Asset Management, purchased Crescent Bayshore on Tampa’s premier waterfront Bayshore Drive in October.

Crescent’s remaining five multi-family properties included in the portfolio sale are:

  • Crescent Central Station, Orlando, Fla.
  • Crescent Dilworth, Charlotte, N.C.
  • Crescent Howell Mill, Atlanta, Ga.
  • Crescent Main Street, Durham, N.C.
  • Crescent SouthPark, Charlotte, N.C.

“Our vision as a real estate development company is to build properties that offer long-term value to our investors and residents,” Crescent Multifamily President Brian Natwick said in a news release. “Our continued focus on dynamic high-growth markets such as Raleigh-Durham is a reflection of our strategic plan and the opportunities we see for sustainable community building.”

Photo credits: Crescent Communities

Lexerd Buys 354-Unit Foxfire Apartments in Durham; Berkshire Group Breaks Record with $76.8M Apt. Purchase from Crescent Communities

26 Dec 2014, 10:28 pm

By Eliza Theiss, Associate Editor

Private Equity Firm Lexerd Capital Management LLC has announced the purchase of Foxfire Apartments, a 354-unit apartment community in Durham, N.C.

The acquisition is Lexerd’s first for its new Lexerd Capital Partners High Yield Fund II. The terms of the transaction were not disclosed. First Communities Management will take over management duties.

Located only four miles from Duke University, the garden-style community comprises 44 two-story apartment buildings, two clubhouses,  fitness center, leasing office,  two laundry facilities, two storage facilities and two maintenance shops.

“With attractive submarket vacancy rates and same-unit rental growth, as well as over $1 billion in new commercial development just four miles away at Duke University’s Medical Campus, we believe Foxfire is poised to build on its recent capital improvements, market repositioning, recent operational success, and top line revenue growth,” said Albert Lord III, CEO of Lexerd.

Crescent Cameron Village

The sale comes hot on the heels of the record-setting sale of the 282-unit Crescent Cameron Village. According to the Triangle Business Journal, the luxury Raleigh community broke all apartment sale records in the Triangle area with its $76.8 million sale.

Boston-based Berkshire Group picked up the apartment community, including the ground-floor retail spaces. CBRE’s Charlotte Capital Markets Group advised seller Crescent Communities on the deal.

Located in Raleigh’s historic Crescent Cameron Village, the mixed-use luxury community opened in early November 2014. The community comprises 282 studio, one- and two-bedroom luxury apartments and 17,900 square-feet of street-level retail, occupied by best-in-class retailers such as Brixx Wood Fired Pizza, Flywheel Sports, Faire and Benelux Coffee. Community amenities include a resort-style saltwater pool, outdoor kitchen and grilling area, state-of-the-art fitness center, wine-tasting room and wine cellar with private lockers, demonstration kitchen and rec room with shuffleboard, poker tables and flat-screen TVs.

Click here for further Triangle market data

Image credit: Crescent Communities

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