Kane Realty Pays $72M for Raleigh Property
This asset previously traded for just $37 million.
Kane Realty has acquired a 28-acre site dubbed Midline Raleigh, which comprises The Pointe at Midtown, a 365-unit community, and the 115,413-square-foot Grove Towers office asset in Raleigh, N.C., for $72.3 million, as reported by The Triangle Business Journal. FCP sold the property, having paid just $37.1 million for it five years ago.
Subdivision plans filed by Kane reveal the intention to demolish the multifamily and office properties, to be replaced by a new mixed-use project. The city has yet to decide on these plans.
What the city council did pronounce on, however, is Kane’s other redevelopment at North Hills, a site adjacent to Midline Raleigh. The council approved a rezoning that allows the construction of 37-story towers, according to several sources, while Midline may include just 20-story structures.
READ ALSO: What’s Next for the Capital Markets?
The North Hills redevelopment can consist of up to 2,521 multifamily units, 1.7 million square feet of office and medical space and 263,465 square feet of retail space.
Kane’s newly acquired site is roughly 5 miles north of downtown Raleigh and about 2 miles from the North Hills redevelopment. Interstate 440 runs less than 1 mile away.
The company owns upward of 4,200 multifamily units in metro Raleigh across all stages of development, according to Yardi Matrix data. Last year, it broke ground on The Strand, a 362-unit tower developed in a joint venture with Mitsui Fudosan America. Completion is expected in 2027.
Raleigh sales see minor drop year-over-year
Sales across the Research Triangle dropped 2.9 percent year-over-year to more than $1.1 billion in 2025, according to Yardi Matrix data. However, the average price per unit reached $220,444 up 15.9 percent from the $190,147 recorded in 2024.
Some of the largest deals of last year also involved Kane. The firm sold the 417-unit Cortland Glenwood South to Cortland for $152 million and the 286-unit Park Central to Fairfield Residential for $132.5 million.
Raleigh-Durham’s advertised asking rents witnessed negative growth in December, down 0.7 percent year-over-year, according to the latest Yardi Matrix report. The national multifamily market didn’t fare much better throughout 2025, marking the first year with zero annual average rent growth since 2020.
Demand across the metro remained moderate, with the average occupancy rate clocking in at 93.8 percent in November, up 10 basis points year-over-year. Meanwhile, completions made up 5.2 percent of the market’s stock in 2025, the same source shows.
