Raleigh-Durham Multifamily Wrap-Up – July 2020

Wood Partners starts two luxury projects. Alliance Residential sells property for $87 million. Catch up on our July list of Raleigh-Durham must-reads.
Alta Davis. Image courtesy of Wood Partners

As COVID-19 continues its spread, North Carolina’s economy has taken a major hit. More than 1.2 million people had filed for unemployment benefits in the state since the crisis began through the end of July, according to the North Carolina Department of Commerce. Following a spike in new cases, Governor Roy Cooper announced that the state will remain in phase two of its reopening plan until, at earliest, August 7, a delay of three weeks. Despite these challenges, however, multifamily investors and developers were active during the past month, as a handful of major new projects were unveiled and several sizable deals closed. Here is our July selection of Raleigh-Durham must-knows: 

1. DEAL – Alliance Residential sells Durham community for $87 million.

Cortland acquired the 342-unit Broadstone Durham, according to Yardi Matrix, rebranding the asset as Cortland Bull City. The sale was subject to a $48 million loan provided by Metropolitan Life Insurance. Completed earlier this year, the property has one- and two-bedroom apartments. Common-area amenities include a business center, clubhouse and swimming pool. Located on 3.7 acres at 600 Willard St., the community is half a mile from Durham’s Amtrak station.

2. DEVELOPMENT – Wood Partners breaks ground on two luxury projects.

The developer began work at the 403-unit Alta Davis in Morrisville and the 250-unit Alta Wren in Cary. Public records show First Citizens Bank is providing Wood Partners with $45.2 million in construction financing for the Morrisville project at 4701 Hopson Road, some 10 miles south of downtown Durham. The second project, located at 1109 Morrisville Carpenter Road, will have one- to-three-bedroom units and a range of amenities including a pool, a fitness center and coworking space. Both developments are slated to open in 2021.

3. DEVELOPMENT – Joint venture to develop 700,000-square-foot mixed-use project.

Hines, Capitol Broadcasting Co. and USAA Real Estate announced plans for the 11-acre project in downtown Durham. The development’s first of two phases will include a 14-story, 350-unit multifamily building, two mass-timber creative office structures and a 90,000-square-foot retail component. Construction is anticipated to start in late 2021 or early 2022.

4. DEAL – Cary luxury community trades for $69 million.

Eaton Vance acquired the 302-unit Marq at Weston from an affiliate of CWS Capital, according to Triangle Business Journal. Located on 8.5 acres at 3000 Rise Drive, the asset has one- to three-bedroom units and a swimming pool, fitness center and game room. Newmark Knight Frank represented CWS, which acquired the property in 2016 for $60.4 million.

5. DEVELOPMENT – Hines JV reveals plans for Cary mixed-use development.

Plans for The Canopy at Fenton call for a six-story building with 357 luxury apartments above street-level retail near the intersection of Interstate 40 and Cary Towne Boulevard. The project team, which includes Columbia Development and USAA Real Estate, plans to begin vertical construction later this year, with residences slated to deliver in 2022. Work on the wider, 92-acre Fenton mixed-use development began in 2019, and its first phase—some 345,000 square feet of retail, 170,000 square feet of office and a 175-key hotel—is expected to open in fall 2021.