Final piece of land for Downtown South development in Raleigh sells for $38 million
Developers bought the final piece of land for the Downtown South project for $38 million just before 2020 ended, according to Wake County property records.
This purchase followed a Dec. 17 rezoning approved by the Raleigh City Council. The council’s 7-1 vote gave a green light to the $2.2 billion mixed-use development proposed for 140 acres in the southern entrance of downtown Raleigh.
The purchase by developing partners North Carolina Football Club owner Stephen Malik, Kane Realty Corp. and Raleigh-based Trademark Properties adds 45 acres at South Saunders Street and Penmarc Drive.
Construction is slated to begin by the end of 2021, developers said.
“This final announcement for the year is a significant moment for the district and the city as we move one step closer towards delivering critical infrastructure and community benefits to a widely underdeveloped area in Raleigh,” Malik told The News & Observer in a statement. “This parcel of land has the potential to shape South Raleigh for generations.”
Kane Realty told the Triangle Business Journal, which first reported the land sale, that this purchase will be followed by preparing for phase one of Downtown South and planning with community stakeholders in the project.
Kane Realty did not respond to requests for additional information by The N&O.
The council vote came after the city’s Planning Commission recommended denying the rezoning, citing a rushed process without enough time for community input.
Public funds will be necessary to build the project, according to the developers’ plans. The city will consider a tax increment grant to finance the project’s envisioned sports and entertainment stadium, as well as public amenities like affordable housing.
The council will review a tax increment grant policy next month.
The rezoning allows up to 40 stories to be built, though some areas are limited to five, 12 and 20 stories. The project can have up to 16,700 residential units, 12 million square feet of office space and nearly 1 million square feet of retail on the site.
The project could span nearly 21.5 million square feet on the roughly 140 acres but it’s unlikely the maximum would be reached, developers have said.
This story was originally published January 5, 2021 at 4:30 PM.
