Raleigh-Durham Multifamily Wrap-Up – November 2020

The Dillon. Image courtesy of FCP and Kane Realty Corp.

Raleigh-Durham’s multifamily sector was very active in November, with most of the action focused on investments. Some big transactions closed, including the largest apartment sale recorded in the Triangle this year. The metro’s development activity saw a slight uptick compared to October, with more than 8,500 units under construction at the end of the month, according to Yardi Matrix. Check out our November list of Raleigh-Durham must-knows: 

1. DEAL – FCP, Kane Realty close $236 million sale near Raleigh’s Union Station.

The joint venture sold the 2.5-acre, mixed-use The Dillon to an institutional client advised by MetLife Investment Management, with the assistance of JLL. Encompassing 271 units across two six-story buildings, the asset’s residential component offers studio to three-bedroom floorplans averaging 777 square feet. The property at 401 W. Hargett St., delivered in 2018, also includes 221,300 square feet of office space, 52,600 square feet of retail and a parking deck.

2. DEAL – Blackstone Group makes $110 million Raleigh buy.

Magnolia Capital sold the 409-unit Park & Market in the largest Triangle apartment deal this year, according to Triangle Business Journal. Magnolia bought the Class A community for $88 million from Crow Holdings in 2017, Yardi Matrix shows. Completed in 2009, the property occupies nearly 6 acres at 141 Park at North Hills St. Featuring 45,000 square feet of retail, the five-story building in North Hills has studio, one- and two-bedroom floorplans averaging 936 square feet. Amenities include a swimming pool, clubhouse and pet park.

3. FINANCING – Novare Group lands $28.8 million for Raleigh project.

The company, in partnership with Batson-Cook Development Co. and Marble Capital, plans to build a 248-unit community at 5715 Glenwood Ave., on an 11-acre site which presently houses an AT&T operations center. Cadence Bank originated an $18.8 million loan and Atlantic Bank provided a $10 million mortgage for the project’s construction. The joint venture will begin site work in December, with completion expected by the third quarter of 2022.

4. DEAL – Cary community changes hands for $57.6 million.

PassiveInvesting.com acquired the 288-unit Hudson Cary Weston from Hudson Capital Properties. Berkeley Point Capital provided a 10-year, $42.9 million acquisition loan through Freddie Mac. Situated on 33 acres at 1000 Heathmoor Lane, the 1996-completed property has one- to three-bedroom floorplans in 27 three-story buildings. Amenities include a fitness center, business center, tennis court and swimming pool.

5. DEAL – Terwilliger Pappas sells Durham asset for $58.2 million.

Zaremba purchased the 192-unit Solis Brightleaf, according to Triangle Business Journal. The Class A community at 1005 W. Main St. sold two years after opening. The unit mix includes one-, two- and three-bedroom apartments ranging from 416 to 1,545 square feet. The 1.5-acre property is in the Brightleaf District, less than 1 mile from Duke East Campus. Newmark represented the seller.