Kane secures financing to start next phase of construction at North Hills
Kane Realty Corp., developer and owner of much of the North Hills site in midtown Raleigh, has secured both construction and mezzanine financing for the construction of the next major apartment project at North Hills, the 171-unit 104 Dartmouth building.
SunTrust Bank will be providing a $24.5 million construction loan, and Federal Capital Partners of Maryland is providing $4.8 million in mezzanine debt to close the gap, according to CBRE, whose capital markets’ debt and structured finance team helped secure the deals on Kane’s behalf.
104 Dartmouth will be the fourth project in which FCP has partnered with Kane Realty in Raleigh. FCP is a joint venture partner in the ownership of the Allister North Hills apartment community. It also provided mezzanine financing for both the development of Midtown Green apartments at North Hills and the Stanhope Center student housing project on Hillsborough Street in Raleigh, both of which are being developed by Kane.
Construction of 104 Dartmouth has already started at the corner of Dartmouth Road and St. Alban’s Drive, near where construction is also under way for North Hills Tower Two at Dartmouth and Six Forks Road. The proposed new AC Hotel will be built between Tower Two and 104 Dartmouth.
The Dartmouth apartment project is the fifth apartment community within the 120-acre North Hills development. The building will stand seven stories tall, including two levels for parking.
The first units will be delivered in the third quarter 2016.