Big Deal! Durham Mixed-Use Community Sells for $187M
- Feb 15, 2016
An affiliate of Ohio-based The Connor Group acquired the development, which consists of 609 apartments, including 453 urban lofts in the historic tobacco warehouse buildings and 156 new luxury apartments and 104,000 square feet of office, restaurant and retail space.
Federal Capital acquired the first phase of West Village in 2011, expanded its investment in 2012 by purchasing the majority interest in the project’s second phase, and completed the development of the new, luxury apartments in 2014.
The initial West Village development team was made up of a partnership led by former Duke University basketball stars Christian Laettner and Brian Davis and Tom Niemann, a Duke business school graduate.
“We compliment our venture partners, Bell Partners, for their exceptional work leasing and managing this one-of-a-kind community as well as Tri Properties for their work making the commercial space such a success. Our business plan was executed extremely well, and we are proud to see West Village finally completed and contributing fully to Durham’s vibrant downtown,” Bryan Kane, FCP vice president, said in prepared remarks.
Located along W. Main and Morgan streets, the community underwent several improvements along the years. The renovation work included new branding, signage and improved access to the courtyards and amenity areas, Wi-Fi hotspots, outdoor grilling kitchens and game rooms. The fitness center was expanded and relocated and now features state-of-the-art equipment, yoga room and a juice bar. West Village residents also have access to a Zipcars® program that complements the walkable nature of the community and the commercial spaces have been repositioned and leased.
Federal Capital managing partner Alex Marshall told the Triangle Business Journal that the community’s commercial component, which is currently 100 percent occupied, is valued at approximately $25 million.
Meanwhile, the apartments, which hover between 93 percent and 96 percent leased year-round, can be valued at about $266,000 per unit, ranking West Village among the most valuable apartment communities in the Triangle.
Federal Capital has been one of the most active investors in the Triangle area, with over $1 billion in investments and deal value over the past four years. The company’s recent property deals include the January purchase of the Venable Center office complex in downtown Durham for $18 million and the sale of its ownership stake in the Allister at North Hills apartment community in midtown Raleigh for $93.5 million.
Images courtesy of Federal Capital Partners