Hines JV to Build 2.5 MSF North Carolina Project
- May 10, 2019
A joint venture of Hines, Columbia Development Group and USAA Real Estate is developing Fenton, a 2.5 million-square-foot mixed-use project in Cary, N.C. The first phase of the development will include 350 residential units, a 99,000-square-foot Wegmans supermarket, 263,000 square feet of retail, nearly 150,000 square feet of office space and a 175-key hotel.
Located on Cary Towne Boulevard and Interstate 40, about a 12-minute drive from downtown Raleigh, the Fenton development is around the corner from Wake Med Soccer Park and major retail centers like Cary Towne Center and Cary Village Square Shopping Center, both of which offer a variety of shopping, dining and entertainment options.
HFF worked on behalf of the developers to raise capital for the project, the terms of which were not disclosed. Construction is expected break ground this summer with a slated opening for fall 2021.
Last year, the Town Council of Cary approved the rezoning of 92 acres to allow the Fenton development to rise. As part of the development agreement, all office space at the project will be designed to achieve an Energy Star score of 75 or higher, according to the Town of Cary.
RALEIGH-DURHAM ON FIRE
The Raleigh-Durham metro’s multifamily market has had another strong year so far in 2019, spurred by job growth and a diversifying economy, according to a Yardi Matrix report. As of February, 9,000 rental units were underway, with rents expected to rise 3.4 percent by the end of 2019.
Last month, Wood Partners opened its 298-unit luxury property, Alta Blue, in Chapel Hill, N.C., financed with a $33.8 million loan from TD Bank, while nearby in Durham, Fairfield Residential picked up the 266-unit Magnolia Pointe Apartments from NRP Group for $26.5 million.