Here’s what’s in store for North Hills in 2017
If 2016 was a big year for North Hills and John Kane’s Kane Realty Corp. with the opening of $120 million in new building projects, then 2017 is expected to be even bigger.
Close to $285 million in new building projects at North Hills are expected to be complete by late summer 2017 with several already nearing completion, according to a review of North Hills’ annual report released Monday by company President Mike Smith.
But even with all the activity happening at North Hills, Kane says he’s equally excited about the company’s newest projects coming to downtown Raleigh. Those projects include ongoing construction at the $125 million The Dillon mixed-use project in downtown’s Warehouse District and the proposed Smokey Hollow mixed-use project that’s in design for property at the corner of West and Peace streets on the northern edge of downtown.
“We had for so long been known just for North Hills, and we were getting pegged by some as being anti-downtown, and we’re not,” he says. “At Smokey Hollow, we’re working hard to make the numbers line up with the budget we have. That takes a long time, especially with a project as complicated like this one.”
In May 2016, Kane announced a new partnership with Raleigh-based Williams Realty & Building Co. with plans to build a $100 million, mixed-use, multifamily building project in downtown Raleigh that could also bring the first grocery store to the Downtown District. Real estate sources have identified Publix Super Markets as the likely grocery anchor at Smokey Hollow.
Kane says construction at Smokey Hollow could begin by late summer 2017.
“It was an interesting year,” Kane says, in retrospect. “It’s amazing as much office and residential is being built here and we’re still in high demand. We are in very good balance and not overbuilt in either. The lenders are … being more discerning, but our market has showed incredible resilience.”
Other North Hills and Kane Realty projects underway in 2017:
- The $85 million Cardinal at North Hills, a continuing-care retirement community being developed by and managed by California-based Kisco Senior Living. Residents have already started moving in;
- The $25 million AC Hotel, a project with Concord Hospitality Enterprises, expected to open by March;
- The $75 million Midtown Plaza office building and parking structures. Anchor tenants, Allscripts and SunTrust bank, will begin occupying the building in April and May. Midtown Plaza s a joint venture project with KBS Realty Advisors;
- The $100 million Park Central multifamily and retail building, slated to finish by mid-summer. “We’ve had the leasing office open for a couple of weeks, and we’ve even had a few people sign up, which is unusual for apartments since most people don’t usually start looking until they need it,” Kane says. “It’s a big building, and is going to be a great building to live in. If I were 25, I’d be moving in in a heartbeat.” KBS Realty Advisors is also a partner with Kane in the Park Central project;
- Marketing for a revamped design plans for Tower IV at North Hills; and
- Completion of site plans for a proposed extension of North Hills development along St. Albans Drive. The project received an endorsement from the Midtown Citizens Advisory Council on Jan. 23.