Developers of a major apartment, restaurant, retail and office project north of downtown Raleigh have secured additional land for the project’s second phase.
The second and larger phase of the $250 million East End Market development will consist of the 10-acre majority of the mixed-use project on Whitaker Mill Road between Wake Forest Road and Atlantic Avenue, east of Five Points.
The acquisition of the additional land cost around $18 million, developers told The News & Observer.
Located near the Five Points and Mordecai neighborhoods in an area developers have dubbed “East End,” the first phase began construction this spring. Plans call for redeveloping industrial warehouse space for the debut of 70,000 square feet of new restaurant and retail space by the end of this year.
The project is the work of Raleigh-based developers SLI Capital and Atlas Stark Holdings for the initial portion. The second phase is being developed by SLI Capital in partnership with Atlanta based-developer Regent Partners and Dallas-based Koch Real Estate Investments.
It’s the first investment in the Triangle by the Charles Koch-founded company.
East End Market’s second phase will have up to 465 apartment units, 235,000 square feet of office space and 40,000 square feet of retail and restaurant space. It will be built without any tenants pre-leased and is slated for a 2023 completion.
“The East End neighborhood is rapidly becoming one of Raleigh’s most dynamic areas,” said Bryan Kane, managing partner of SLI Capital in a news release. “We are moving forward quickly with phase two of East End Market on a speculative basis in order to take advantage of the neighborhood’s momentum.”
The project’s rezoning requests were approved by the Raleigh City Council in June despite a denial from the city’s planning commission. The rezoning hearing to allow for bigger development involved residents expressing opposition to its size, leading to the developers having to amend conditions for it, including its proximity to residences in the area and the maximum height of buildings.
The project will have buildings as high as 11 stories and others between five and six stories, according to the most recent plans filed with the city.
“Aligning with best-in-class partners like SLI Capital and Regent Partners in the development of East End Market is a natural fit for Koch Real Estate Investments’ continued, strategic expansion into unique, high-character projects in growth markets across the country,” said Ryan Ross of Koch Real Estate Investments in a news release.
Key tenants are already lined up for the debut early next year, such as Raleigh’s first cidery, Shady Grove, a new French restaurant called East End Bistrot from Triangle restaurateur Giorgios Bakatsias, and a location of the Texas-based coworking space chain Common Desk.
Raleigh-based firm Piedmont Capital and international finance firm Campion Capital have also signed onto space at the property.