Tucked just off to the side, but not hidden away, is the newest apartment building to downtown Raleigh. Mira Raleigh brings around 280 homes to Kindley Street. Not familiar with Kindley Street? That’s because it’s basically a dead-end street off Salisbury Street. More plans for the area are in the works which could see this spot have even more development in the future.
Continue reading →Kindley Street is not mentioned all that much in the news. Mainly because it is a dead-end street that branches off Salisbury Street. In this section of downtown, there have been one-story, suburban style office buildings probably since the 1980s. (or even earlier) That dynamic is already starting to change.
Zooming in, I am mostly talking about some land that is southwest of the train tracks crossing Kindley Street. A collection of properties have been acquired and there is a new rezoning on the table to raise the height limit from the current 20 stories up to 40 stories. In addition, construction of a building with 288 apartments is already taking place. Finally, we may see Kindley Street connect to Martin Luther King Jr Blvd in the future.
You can see the site in the google map aerial above, highlighted in orange. Again, it’s probably not an area most go to as Kindley dead ends and there isn’t much there to begin with. (more so now after all the recent demolition nearby)
A new apartment building, named Mira Raleigh, is already constructing some future homes. It’s a tough location to photograph but you may have seen the building come up if driving down MLK. Here’s one photo, in addition to others, on the Community.
Rezoning case Z-088-22 has a majority of the property wanting to go taller. What’s also interesting is a separate subdivision case that may connect Kindley Street to MLK. The way I’m reading things, it actually looks like they own the northbound ramp from MLK to McDowell Street so I feel this may be removed if this new street configuration is put in place. I’m sure an alternate route will be put in place.
The rezoning case is still in the early stages and has yet to go before the planning commission. I’d like to think this is an easier rezoning to approve as no existing structures are impacted, there’s no traffic increase for anyone to complain about, and the location is very close to the downtown core.
If interested in this area, make sure to also check out nearby Salisbury Square.
Collaboration happens in all kinds of ways and in development, it’s great to see a sharing of space and resources. Two local developers, Williams Realty & Building Company Inc. and Summit Hospitality Group, are planning to build a seven-story apartment building and adjacent 138-room hotel. The site of the new development is at 415 South Blount which currently sits as a parking lot between Blount and Person Streets.
The property cuts the block in half with one side facing Blount and the other Person Street. On the Person Street side, the eastern side, will be the The Acorn apartments, shown in the rendering above. There will be 106 units on floors four through seven.
Facing Blount Street will be the hotel. A Marriott TownePlace Suites branded hotel will have rooms on all floors. The hotel and residents will share a 200-space parking deck on floors one through three below the apartments.
There’s not much to say about the property in it’s current state. It’s a surface parking lot surrounded by a chain-link fence. That’s it.
Construction is planned to start this December with the hotel portion coming later, planned Summer 2022.
The Gramercy Apartments in Glenwood South is marching along and is planning to open in late June. In addition to the apartments, the retail space at the corner of Glenwood and North Street will have a grocery store and pharmacy. The plan is to open that close to the building’s opening so work inside that space is taking place now.
As always parking will be a concern to most folks but there is a plan for that. The parking lot across North Street, behind the building with Plates, Sushi Blues, and Thaiphoon, will be converted to a public lot run with Passport Parking. The first 30 minutes are free and you can use it any time for stopping by in the area.
It’ll be great to see some real resident-based services like this. The 7,000 square-foot grocery, the entirety of the retail space in The Gramercy by the way, will also have weekend farmer’s markets.
The Gramercy Apartments in Glenwood South is taking shape for their projected Spring 2016 opening. There isn’t much info posted yet but their website, as of today, allows you to sign up for future emails.
It’s not confirmed but I’m putting my money that the reported Glenwood South pharmacy (see tweet below or here if you can’t see it) is going here. Just a guess though.
Exciting news for Glenwood South a pharmacy/convenience store coming next year. Adding #DTretail and making glenwood more livable! #goodnews
— Downtown Raleigh (@DowntownRaleigh) October 19, 2015
The Edison Lofts, corner of Blount and Davie Streets
The Edison Apartments, or more officially the Edison Lofts (official website), are coming along. No reason this project isn’t wrapped up this year, hopefully in the first half. They are now pre-leasing units.
The Edison Apartments, corner of Wilmington and Davie Streets
Earlier in the week, I highlighted the next downtown apartment building to open, The Lincoln. Today, I wanted to step back a bit and share some thoughts about the general downtown apartment landscape and the market around them.
Here are some quick thoughts on the state of new developments that cater to the rental market.
Many more to come?
The downtown apartment mid-rises that have been built over the last few years seem to have a specific formula to them. There are several hundred units wrapped around a parking deck and courtyard. If you add in amenities like a gym, pool, and lounge then you can now, most likely, make a profit providing rental housing.
This isn’t specific to downtown however. Apartment complexes all over the city apply the same formula. The difference is in the built environment. For example, a 200+ apartment complex in North Raleigh may be spread among several buildings (3 or 4 stories) surrounded by surface parking and all the amenities built into a clubhouse.
It’s built this way because it is most likely cheaper and purchasing the available land to accommodate this is cheaper compared to downtown land. Projects are more compact in downtown because of this.
Nothing terribly new or shocking here but to me, it sounds similar to another development model.
Cheap land and a very large footprint is the model behind the big-box retail store. Lots of inventory under one roof and cheap surface parking further keep costs down. This is why there are no big-box stores in downtown, the environment doesn’t fit to the model.
So how are “big-box apartment” projects cropping up?
My thoughts start out with the fact that downtown land is expensive but not expensive enough for these projects. If a nice square or rectangle plot can be acquired (a less complex building is cheaper most likely) then a several hundred-unit building can be profitable.
You also have to consider construction materials. I’ll let any engineers chime in but from what I understand it to be, there’s a threshold around the 6 or 7 story limits of a building. Higher than that, steel construction has to be used and therefore is far more expensive. If you can stay under that threshold and build with wood, then the project is viable.
So if you wanted to build another apartment project, here’s the formula in a nut shell:
The point I want to make here is that between all four corners of downtown, there is a lot of available land to play with. A plethora of surface parking lots that are more valuable than they seem are waiting to be built on.
I’m not an expert on the economics here but it really feels like we’ll be seeing many more mid-rises in coming years. Just take a look at all the available surface parking in downtown Raleigh in the graphic below.
Click for larger. Yellow indicates surface parking in downtown Raleigh. Data is dated 2011.
The graphic is a few years old and only a few lots need to be changed but it still makes my point. We have lots of room to grow within.
As far as affordability goes, there is definitely a premium to pay with these new apartments only because they are located in downtown Raleigh. The supply is trying to catch up with demand so right now, the prices are high. (compared to the rest of the city) This seems to happen in other industries also. Prices drop when things have been out for awhile and access is easier.
What people are forgetting is that before 2005, maybe even later, renting in downtown Raleigh was an extreme niche. There were only a few hundred units (if that) spread across random buildings and in small clusters. We essentially had a seedling of a rental community at the time. Then, downtown living become a thing real fast and developers are trying to meet that demand. In the grand scheme of things, everything is still so early. The prices should fall once supply increases and some of the first units to come out start being dated.
If you are a fan of Jane Jacobs then you should believe that to create affordability, you want a mix of housing with a mix of ages. New apartment buildings can command high prices because they are new, have the latest amenities, and styles. Buildings that have a few years on them, may be a little dated but are perfectly fine places to live and priced a little less. Buildings older than that may be even cheaper because they only have one of something or don’t have such and such amenity. You get the picture.
It takes time which is tough for some to realize and puts downtown Raleigh in a awkward position because all this rental housing is really just starting to be built. We don’t have that history and those range of options like the rest of the city has.
Still, I don’t think it should surprise anyone that the development will keep coming (my prediction anyway) until land prices increase or market preferences change. I say we continue to cheer on these developments because what we really want is a vibrant residential community with a variety of living options.
We also need some of that available land to be built on so that newer project have to be more creative.
I don’t feel like these mid-rise projects, with their “big-box” footprints and lack of design, are that urban in nature. However, what they are doing is moving Raleigh up just a few more notches on the urban scale. I believe a few less car trips will be taken by these residents and that is the path we must take as we approach a true urban center in the future. It’s transitional and reflective of the current market preferences and political climate that we live in today.
I’d love to keep this conversation going with anyone who has insight on topics like this.
The Lincoln Apartments
I was fortunate enough to be invited on a tour of The Lincoln Apartments recently. The 224-unit apartment building that is located one block east of Moore Square brings luxury studio, 1, and 2 bedroom apartments with plenty of amenities to keep residents happy.
I wanted to write about the tour and, in a separate post, mention some thoughts and trends I’m noticing about the wave of rental buildings that have really hit our downtown. Think of this post as an introduction to that analysis.
The Lincoln will have its grand opening on September 10 but that shouldn’t stop anyone interested to get in touch with them now. I was told people are already moving in.
The clubroom, The Lincoln Apartments
The tour started us in the clubroom, an open space with kitchen, lounge, and billiard table with contemporary flair. Small groups could socialize comfortably here and there was easy access to the outdoor courtyard. The courtyard had the pool, a sundeck, outdoor TV and couches, built-in gas grills with high-top tables, and a shuffle board table. Sprinkled around these were a variety of fireplaces. The clubroom and courtyard should be the social center of The Lincoln.
The courtyard, The Lincoln Apartments
Walking back inside, we saw the fitness center, outfitted with brand new equipment. Attached was a yoga studio. While not large in size, the access and equipment probably rivals any public gym out there.
Transportation was next as each bedroom, not unit, gets a parking space. We took a brief peak at the parking as a way to show off the electric charging stations. The highlight, in my eyes anyway, was the bike storage room. A small room for storing bikes was easily accessible from the street. In addition, a bike repair stand, similar to the one on Hargett Street, was available for residents. Kudos to The Lincoln for providing this.
Bike storage room, The Lincoln Apartments
Down the hall, the pet spa. Not yet finished for the tour but a large tub was installed for washing pets. A pet dryer was to be installed later.
The rest of the tour took us through some of the units. The layout of the studios and one-bedrooms were optimal to make it seem larger. All the units have high-ceilings (9′ or 10′) and great access to natural light in most cases. Flooring consisted of faux wood throughout the units with carpet in the bedrooms. The kitchens were up-to-date with granite countertops, modern fixtures, and stainless steel appliances. Everyone gets a washer/dryer. Trash chutes and recycling are available on every floor.
Modern kitchens at The Lincoln Apartments
Pricing depends on the floorplan but here is a general idea:
The bulk of units lean more towards the lower end of those prices. Only 7 units in The Lincoln are asking more than $2000. The units along Bloodworth Street have a great downtown Raleigh view, with most price points represented on that side of the building.
View from The Lincoln Apartments
On the inside, The Lincoln, like most downtown Raleigh apartment buildings, offer a great list of amenities to renters. Combine that with the stellar location of being close to downtown and today’s high-demand for rentals, you can’t really be shocked by those asking prices.
We’ll get more into the downtown Raleigh apartments scene in the next post. Overall, I enjoyed the tour and look forward to seeing people move in to The Lincoln.