North Hills developer taps 34 acres for expansion
With Kane Realty Corp. coming close to maxing out its development potential at North Hills over the next few years, developer John Kane is working out a way to buy more land fronting the I-440 Beltline for future development.
Kane confirms that he’s under contract to buy another 34 acres to the east of North Hills’ newest building projects at Midtown Plaza and the Cardinal at North Hills senior community. The properties have been owned by the heirs of Charles W. Gaddy and Alex B. Andrews for more than two decades.
The two parcels targeted for purchase by Kane have a combined tax value of $4 million, according to Wake County records.
Kane says the property has its challenges with a large power transmission line running through it, plus several creek beds and protected tributaries that will limit how much development can be allowed, “but it’ll allow us to open up for greenway space,” he says.
His development firm formally filed a rezoning request with the city for the new property this week, he says.
Kane says the future plan for the property is still in limbo and will depend largely on what will be allowed through by Raleigh’s planning staff and elected leaders. The rough plan, he says, is to incorporate more office and residential structures – similar to what’s already underway at North Hills – with possible plans to add another hotel and some retail. The project would be incorporated into the overall planned development classification for North Hills.
“It will be much less dense than what we’re doing now,” he says.
Kane Realty has also filed a subdivision plan to incorporate a new medical office building next to the North Raleigh Hilton hotel that Kane and another partnership purchased in May for $42 million. The new building would take up a 1.6-acre corner of the hotel’s parking lot at the intersection of St. Albans Drive and Wake Forest Road, across from the main campus of Duke Raleigh Hospital where Kane serves as the hospital board chair.
About 60 percent of the the property is part of a 51-acre land assemblage along St. Albans Drive that the Andrews heirs have been marketing to potential buyers for the last several months, with marketing assistance by HFF. A 3.4-acre piece of the assemblage was sold in July in a separate deal to Raleigh-based Coastal Federal Credit Union, but the bulk of the remaining vacant land is under contract to Kane.
The 13.4-acre Gaddy family property is being sold separately.