In $100M Transaction, Kane Realty Sells N.C. Multi-Family Complex, Refis Retail Portion
In an intricate, multi-faceted transaction valued at $100 million, Kane Realty has sold a segment of its Park & Market mixed-use residential property in the North Hills district of Raleigh, N.C., and recapitalized another.
The Class AA asset encompasses 409 luxury apartment residences spanning six floors and approximately 96,300 square feet of ground-level retail space, including a 48,000-square-foot Harris Teeter grocery store holding the anchor position. Kane developed the property in 2009, shelling out $125 million to complete the project, which was part of a $1 billion expansion endeavor in the mixed-use North Hills district.
It was CBRE Group Inc. that did the fancy footwork in the Park & Market disposition and recapitalization deal on Kane’s behalf. The commercial real estate services firm marketed the residential segment of the property and represented Kane in the sale to a fund managed by Crow Holdings Capital Partners. The parties involved are keeping mum on the price tag of the building which, according to Wake County records, has a current assessed value of just over $68.7 million.
But the sale was just for starters, in a concurrent deal, CBRE Group Inc. also secured a $22 million loan for Kane’s refinancing of the property’s retail section. Goldman Sachs Commercial Mortgage Capital L.P. provided the funding. And there’s more. CBRE capped off its activities pertaining to Park & Market by orchestrating financing for the buyer of the residential portion through a correspondent life insurance company.
“This transaction was unique, challenging and complex, requiring that all components of the combined deal be executed simultaneously in order for the deal to succeed,” said Phil Brosseau, Jr., vice president in CBRE’s Multi-Housing Group.