Category / New Construction

by Leo Suarez

New Affordable Housing Plans in 2020

Affordable housing isn’t a typical topic of the blog but this year, I’ve been following two initiatives that may provide atypical housing at a lower price point in Raleigh. These include:

  1. The City of Raleigh wants to sell a plot of land in East Raleigh for $1 (one dollar) in exchange for affordable housing.
  2. On election day, you’ll see an option to approve, yes or no, an $80 million housing bond. Jump to more on this on the city’s website.

Lane-Idlewild Affordable Housing

The city wants to leverage over an acre of land on East Lane Street to get some affordable housing units built. The proposal on the table is that the land, valued at over $1.4 million, would be sold for $1 (yes, one dollar) in exchange for more affordable housing.

Click for larger

One of the key criteria here is having at least 51% of the proposed residential units being affordable. In this case, affordable means that it is targeting individuals at the 80% area median income level. (see more about AMI here)

The proposal submission date was in August and the city was flooded with around 32 proposals. This week, the city council moved ahead and the list of applicants has been reduced to four.

Here is a brief overview of the four applications.

Archive Development

  • Rendering shown above
  • proposes 10 lots, each with a duplex and an Accessory Dwelling Unit (ADU).
  • mix of rental units available to <50-60% AMI, <70-80% AMI and <80-100% AMI
  • affordability preserved for a minimum of 20 years.

CASA

  • proposes 11 rental units across duplexes and quadraplexes
  • all units will be available to <40% AMI
  • tenants will pay a maximum 30% of their income for rent
  • minimum of 30 years of affordability
  • will provide a community garden and on-site management services

Merge Capital

  • proposes a mixture of 44 rental suites and units across detached, attached and ADUs
  • the single-family building types include 1 and 2 bedroom living options arranged as a co-living layout
  • propose a mix of 50% of affordable suites for <50% AMI and 50% for <80% AMI, or 40% of units at <50% AMI and 60% of units at <80% AMI
  • a 25-year initial term of affordability.

Raleigh Area Land Trust

  • proposes 16 Cottage Court units for sale across 8 duplexes
  • propose 50% (8) of the units be sold to <50% AMI
  • 25% (4) units to <60% AMI
  • 25% (4) units at Market Rate.
  • RALT would retain ownership of the land while leasing it to the homeowners through a 99-year, inheritable, renewing ground lease, while limiting equity accrual in order for the homes to be resold to other income-qualifying households.

This is such an interesting project and some good proposals are on the table.

Affordable Housing Bond 2020

With voter approval in November, $80 million would be used to fund affordable housing in a variety of ways. From a July 2020 update, the breakdown of those funds are shown below.

What has me most interested in this bond is that money will go directly into purchasing land around transit. We already know where that land is going to be as we’ve been undergoing a Wake Transit Plan since adoption in 2017. I wouldn’t be surprised if the BRT routes are the areas where land purchasing will take place.

In response to concerns about getting the needs from this bond to the ones that need it most, those at the lowest income scale in Raleigh, I’d like to borrow Councilor Melton’s update after the council’s September 1 meeting.

We also adopted the recommendation to produce more housing units affordable at 30% area median income (AMI). At the meeting this week, staff presented policy recommendations for producing more housing affordable at 30% AMI.

Staff recommended allocating $10 million from the bond funds for permanent supportive housing for very low income (30% AMI or lower) chronically homeless individuals, $10 million from the bond funds for non-profit partners to create or preserve small scale projects where not less than one-third of total units serve 30% AMI or lower, and $8 million from the bond funds plus regulatory incentives for new rental developments where not less than 20% of the units are affordable for not less than 30 years. Staff also recommended requiring 25% of units in 9% tax credit projects and 10% of units in 4% tax credit projects to target creating housing affordable at 30% AMI.

We voted to adopt and approve all of these recommendations.

9/1/2020 meeting summary: Affordable Housing Bond, micromobility (scooters!), big rezoning – link

It’s a pretty large initiative that certainly attempts to close the gap on Raleigh’s housing needs and deserves your consideration when voting this Fall.

by Leo Suarez

New Residential Coming to 615 West Peace Street

The latest iteration for the property at 615 West Peace Street is now a residential building named 615 Peace. One and two bedroom units are planned for an empty site that has gone through a few proposals over time, including a hotel with a controversial rezoning.

Even with the ongoing pandemic, downtown residential occupancy is very strong according to the Downtown Raleigh Alliance’s latest State of Downtown Raleigh report.

The project’s site also mentions ground-floor retail which is refreshing to see on a busy street like Peace. The plans look pretty decent so I’m hoping the condo market makes it happen as rentals still seem to dominate downtown.

by Leo Suarez

Seaboard Station Block B Plans Show more Mixed-Use, Underground Parking

During the Aug 20 meeting of the Raleigh Appearance Commission, a request for an alternate design came up for what’s being called Block B of Seaboard Station. The six-story building planned for this site is a mixed-use building with residences over retail. Above is a concept rendering

A bit unique to the building, and very welcome in my opinion, is that the plans show parking being underground. You don’t see too much of that with the development of the last few decades as a plethora of new buildings have been built over a parking deck or have the deck wrapped in the interior.

The site of Block B at Seaboard Station would loosely be over the current tennis courts along Halifax Street between Seaboard Avenue and Franklin Street.

It doesn’t look like the building would go all the way to Abe Alley so perhaps the remainder of that block is still being worked on.

The plans show about 180 units and all four sides of the building have an active use for either retail or residential. There’s just one parking entrance along Halifax.

Those are some of the high-level takeaways about this project from this request. If you’re curious about the request itself, the summary says:

The building meets the build-to requirement for much of the site but is missing build-to requirements along Halifax Street. A major Duke Energy 115kV transmission line and easement extends through the property along the entire Halifax Street frontage. Buildings and other permanent, above ground structures are not allowed within Duke Energy’s transmission line easements.

Doesn’t seem like a big deal to me.

by Leo Suarez

Pic of the Week

One of my favorite projects looks to be wrapping up. The construction at 107 West Hargett, the historic Lumsden Bros. Building, has been slowly being polished up throughout the year.

If you’ll recall, there was an announcement previously that FastMed Urgent Care’s new corporate office would be relocating here. A clinic is also planned to be opening here.

by Leo Suarez

Salisbury Square Plans to Bring Mixed-Use Development to Downtown Raleigh

Rendering of Salisbury Square

In March of this year, Dominion Realty Partners and the North Carolina Association of Educators (NCAE) announced a major deal. The NCAE would sell their land at the corner of Salisbury and South Streets and plans for mixed-use development are now underway.

The 4.9 acre parcel is zoned for up to 20-stories and it looks like the plans will maximize on that. The current offices here of the NCAE are one-story with suburban-style parking around it. The new development would greatly intensify the site and add a variety of uses. The new plans would include:

  • A 20-Story Mixed-Use Tower – 175,000 SF of Commercial Office & Retail Space
  • A second 20-Story Multifamily Tower – 270 Luxury Apartments
  • A 6-Story, 150-Room Hotel
  • A 4-Story Building for Workforce Housing

The architects, JDavis Architects, have more on the project:

We’re thrilled to lead the design on the recently announced project named Salisbury Square. The site has historically been the home of the NC Association of Educators and is adjacent to the Duke Energy Center for the Performing Arts.

Plans call for a 20-story mixed-use tower, a 20-story multifamily tower, a 6-story, 150-room hotel and a 4-story building for workforce housing with an attached parking deck. The mixed-use tower will feature 242 upscale apartments on top of 175,000 square feet of commercial office and retail space. The residential tower will feature 270 luxury apartments complete with a rooftop pool.

Finally, plans also include 63 workforce housing units wrapping around a shared parking structure. These units will feature below-market rates and will be reserved for lower-income tenants. In the middle of the development will be the NCAE park, which will provide green space between the towers and structures. The park will be dedicated to the legacy and history of NCAE. Construction is expected to begin in the fourth quarter of this year.

Salisbury Square – JDavis Architects – link
Click for larger

A lot has certainly taken place since the announcement in March with regards to the COVID pandemic but if planners behind this one can stick to it, the developments here would add so much for the southern end of downtown including Fayetteville Street.

Plans are being tossed around the Planning Commission to also consider an extension of Kindley Street. The street to the south of the property currently dead ends but perhaps connecting it to MLK Jr Blvd could be beneficial.

Comprehensive Plan Amendment CP-12-19 Kindley Street – link

This is such a good location for some density as Bus Rapid Transit routes are planned nearby and it’s an easy walk to so much that nearby areas like Fayetteville Street have to offer. The new R-Line route is also a block away so connectivity is high.

Still, you can’t help but lower expectations a bit due to the uncertainty around 2020 so far. The announcement did say the development would be rolled out over multiple phases but, as always, I’ll stay positive and hope the team delivers on this one.

by Leo Suarez

Pic of the Week

The McDonald’s at the corner of South and Wilmington Streets has been demolished. The plans are to rebuild it to modern standards as has been common around the country.

The fast-food rebuilds usually turn around in no time. Before the end of the year perhaps?

Sitting right on the edge of the downtown mixed-use zoning district, I feel there could have been a lot more done here especially with the city trying (but now on hold) to maximize the development potential right across the street.

by Leo Suarez

Pic of the Week

Raleigh Crossing has been slowly rising up. The crews at 301 Hillsborough Street are still working on the parking deck portion of the office tower. You can’t help notice this project when walking or driving through the area as it is starting to show its presence.

There are some details that can be picked out from seeing the site. The lobby will have some nice tall ceilings. There will also be plenty of retail along Hillsborough and Dawson. The building should add some great sidewalk activity all around it.

This has been a great development to watch go up and while the office market has some question marks due to the COVID-19 pandemic, I’m hoping Raleigh Crossing still commands some attention in the future.

by Leo Suarez

Pic of the Week

Smoky Hollow is looking pretty nice these days. With some gorgeous May weather, the building at the corner of Peace and West Streets, Peace Apartments, looks good from the top of the Capital Boulevard bridge.

If not already, residents will be moving in to Peace soon. Work on the Publix on the bottom floor continues as well. There’s no firm opening date for the grocery store yet.