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Empty downtown Raleigh condo project sold

Posted August 18, 2010

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— The Hue, a 200-unit condominium complex in downtown Raleigh that closed three months ago without a single unit sold, has been sold to a Memphis, Tenn.-based firm that plans to convert the building to apartments.

Mid-America Apartment Communities Inc. paid $33.6 million for Hue, which the developer had turned over to the lender. The seven-story building on Dawson Street, which is painted in hues of blue and yellow, has sat empty since it was completed last year.

The sale doesn't include street-level retail stores in the building.

"We are excited to expand our presence in the dynamic and growing Raleigh market. Hue boasts a superior downtown location with close proximity to a number of major employers," Al Campbell, Mid-America's executive vice president and chief financial officer, said in a statement.

Amenities in Hue include 9- to 12-foot ceilings, gourmet kitchens with stainless steel appliances, granite counter tops and hardwood flooring in the living areas. The property features a pool, fitness center, controlled-access entry and covered parking.

When city leaders helped break ground on the project in September 2007, it was billed as an affordable option for people looking to buy downtown, with units for prices at about $160,000.

Rents at Hue will range from $995 to $2,300 a month.

Mid-America also owns the Preserve at Brier Creek and Providence at Brier Creek complexes in Raleigh and the Hermitage-Beechtree and Waterford Forest complexes in Cary.


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  • Lickad Aug 18, 2010

    They wanted way too much money for those condos, I would have paid mid 100s for a 2 bedroom, nothing more.

  • timothycapwell Aug 18, 2010

    That location is terribly noisy. Who would want a balcony over looking a busy street? Apparently no one.

  • ncwebguy Aug 18, 2010

    Units didn't sell because developers held out for enough presales to qualify for loan guarantees. Meanwhile, the credit market dried up, and potential buyers went elsewhere.

    The market for less flashy Raleigh condos (no granite/steel kitchens) has not been filled recently. Units across the street in Park Deveraux have resold for a lot more than the original price.

    The condo to apartment conversion has not hurt the building on St. Mary's where Raleigh Office Supply used to be. When the market improves, they can convert this to condos if they want, or keep collecting rent.

    Not everyone wants to own, especially people who won't be in the area for long -- Campbell Law and NC State grad students, young professionals early in their careers, etc.

    It is in the middle of everything, roughly halfway between Fayetville Street and Glenwood South. Residents might need a car to get to the grocery store, but could easily walk to work and nightlife.

  • DahlingBella Aug 18, 2010

    Talk about a turn around...usually its apartments converting to condos...now its condos converting to apartments. I wonder what will happen to Bloomsbury Estates? They are sitting empty too. Of course who wants to pay 250K for a view of the prison.

  • debnamdavis Aug 18, 2010

    sorry Johnnie...another one bites the dust

  • town guy Aug 18, 2010

    Yes it's funny when people lose a lot of money. Haha indeed.

  • HappyGirl08 Aug 18, 2010

    Wonder why they didn't sell. OH well...surely they will rent though.

  • jrm576 Aug 18, 2010

    Hey WRAL - just a note that it's Hue, not The Hue. I worked on the marketing of this project and am glad to see that people will be able to enjoy it!

  • mpheels Aug 18, 2010

    Ah yes gingerlynn, all those unruly poor people paying $1000/month in rent... My guess is this building will fill up with grad students and young faculty members from NCSU, young Gen. Assembly staffers, young lawyers working... In other words, lots of well educated young people who want to live somewhere nice but don't want to commit to buying, yet.

  • rescuefan Aug 18, 2010

    Converting to apartments means they will be rented instead of sold. A lot of times, it happens the other way around and apartments are converted to condos.