After redeveloping a former warehouse site into a mixed-use property, FCP and Kane Realty Corp. have sold The Dillon in Raleigh, N.C. The partnership sold the building to an institutional client that was advised by MetLife Investment Management for $236 million. JLL’s Matthew Lawton, Ryan Clutter, Coleman Benedict, Andrea Howard, Jeff Glenn, Chris Lingerfelt, Allan Lynch, Tom Kolarcyzk, John Mikels, Daniel Flynn and Sara Wagman represented the sellers.
To help build the project, FCP brought in Kane as development partner and the duo completed The Dillon in 2018. The 18-story mixed-use property in downtown Raleigh offers residential units, 221,300 square feet of office space and 52,600 square feet of retail space. The residential portion of The Dillon is made up of 271 units that are split into two six-story buildings. According to Yardi Matrix data, the community is 93 percent occupied.
Alex Cathcart, vice president at FCP, told Multi-Housing News that the community offers studios, one-, two- and three-bedroom units that average 777 square feet. He also told MHN that the property’s amenities include a pool, courtyard, clubroom, secured entry, parking and direct access to the ninth floor that features a gym and large deck.
Located at 401 W. Hargett St., The Dillon was built adjacent to Union Station, a new transit center in Raleigh that accommodates multiple forms of transportation including the intercity passenger rail, commuter rail, buses, taxis and bicycles. Residents also have nearby access to interstates 440 and 40 that gives them a short commute to other parts of The Research Triangle.
PRESERVING WAREHOUSE HISTORY
While The Dillon may be a newly built mixed-use development, its previous life as a 100-year old warehouse building was showcased in the building’s design. The site was formerly home to Dillon Supply, an industrial supplies distributor and steel service center, and was still being used as material storage up until recently.
”We retained the south facade and we incorporated a lot of the original steel as part of the architectural elements on the ninth floor terrace and elsewhere around the property,” Erik Weinberg, principal at FCP, told MHN. “We also retained large machinery from the warehouse and turned them into art and furniture to add to the aesthetic.”
Weinberg said in prepared remarks that FCP will continue to be active in the Raleigh/Durham market even after concluding its business plan for The Dillon. FCP has also made acquisitions in other southeastern U.S. states, including a 652-unit portfolio in Atlanta in March and a 208-unit community in suburban Orlando in November 2019.