North Hills East construction under way
Posted August 14, 2008 6:21 a.m. EDT
Updated August 14, 2008 7:57 p.m. EDT
Raleigh, N.C. — Construction of North Hills East is under way on 45 acres along the Interstate 440 Beltline at Six Forks Road.
The development is to include shops, offices, residences and a retirement community.
Developer John Kane planned to preview the project and plans for expansion on Thursday.
Kane said about $550 million in construction is already under way on portions that include the St. Alban’s residential building, which will contain retail stores below, and the Renaissance Raleigh Hotel, a 10-story Marriott facility set to open in December. Construction is also under way on the Captrust Tower, a 17-story, mixed-use office tower expected to be completed in fall 2009.
In total, the development will create more than 1 million square feet of office space, 450,000 square feet of retail space, 1,800 residential units and 800 hotel rooms.
All projects under way have been financed, Kane said.
Last year, Kane asked the city to underwrite a parking deck for North Hills East. The tax-increment financing Kane requested would have required the city's borrowing the money, then repaying the loan with revenue generated from higher tax valuations on the project and nearby properties. The city would have paid more than $140 million over the 20-year life of the loan.
At the time, Kane said that without the money, the project would end up like a typical strip mall. The city eventually rejected Kane's request, however.
Future projects for North Hills East include The Cardinal, a retirement community scheduled to open in 2010, and the Hyatt Summerfield Suites at North Hill, an all-suite hotel expected to be completed the same year.
In addition to the building projects, Kane Realty has partnered with Root Elementary Magnet School to provide a satellite campus. The corporation will provide acres of undeveloped land so the school can begin renovations on its 50-year-old facility during upcoming school year.