Deal of the Week: Developer Bets on Raleigh, North Carolina's Effort to Create a Big Public Park
Real estate opportunities often arise when city leaders and planners agree on a new vision for a large swath of government-owned property.
When plans emerge, investors start gobbling up nearby properties to stake a claim on the future possibilities.
Raleigh developer Atlas Stark Holding is doing just that at one edge of Dorothea Dix Park, a 308-acre former mental hospital campus the city is in the midst of transforming into a "destination park." It's been described as the largest such park project in the country and dubbed the “Central Park of North Carolina.”
A week ago, the developer bought five properties along South Saunders Street and Hammell Drive southwest of downtown Raleigh for a total of $8.2 million. The cluster of 1940s- and 1950s-era buildings sit in a triangle formed by South Saunders, Hammell and Lake Wheel Road, one of the park's boundaries.
The developer paid $496,788 to $3.5 million for the various properties. Auto repair and body shops fill most of the buildings. A building materials company leases the priciest property at 1008 Hammell Drive.
For now, they will stay. But in time, each building could be converted into retail, office and residential through a mixture of renovation and new construction. Atlas Stark also is looking at buying additional properties in the area.
Trey Adams, an Atlas Stark co-founder, said his firm is still working through plans. But what is certain is “we’re betting on Raleigh continuing to grow out this way from downtown,” Adams said.
Raleigh, like many big cities, has seen a lot of urban redevelopment of late. Dorothea Dix Park could be a catalyst for more.
Dorothea Dix Hospital closed in 2010 after 154 years in operation. Raleigh bought the land from the state four years ago with the idea of creating a destination park and city planners unveiled an ambitious master plan in February
The park sits between downtown Raleigh and North Carolina State University’s Centennial Campus, a research park that also includes the school’s engineering and textiles colleges. In the mid-1980s, the land for the campus had been carved out of the hospital’s original 2,354 acres.
For now, the master plan focuses primarily on creating more activities inside the park boundaries. There are no immediate plans for the government-owned buildings on the property.
Adams said his firm would work with city planners to ensure whatever it plans complements efforts at the park.
The developer has redeveloped a half-dozen old buildings around Raleigh over the past couple of years. It’s currently working on one now in downtown Raleigh. Atlas Stark is converting a former auto upholstery shop it bought in January for $2.8 million into office and restaurant space.
LoopNet publishes new "Deals of the Week" every other Monday. Click here for the entire series.
