A Maryland-based developer has acquired a .8-acre site at the corner of Hillsborough Street and Glenwood Avenue near downtown Raleigh.
Heritage Properties paid just over $4 million for the site, which includes four parcels and is directly across Hillsborough Street from the Snoopy’s restaurant.
Heritage plans to do a project with a mix of office and retail, said Ryan Blair, an associate with the company. He said the company won’t need to rezone the property.
“We’re entitled for what we want to do,” he said.
The site’s current zoning would allow for a 12-story building. Blair said Heritage expects to announce more details about the project next month.
Heritage was attracted to the location because it sits at the nexus of the thriving bar and restaurant scene and apartments in Glenwood South and the redevelopment activity now taking place in the warehouse district, Blair said.
The site is just a few blocks north of Citrix’s headquarters, the planned Union Station transit hub and where Kane Realty plans to build a 17-story tower.
Heritage’s downtown project is its second in the Triangle.
The developer has also acquired land in Brier Creek where it plans to build a 129,000-square-foot, 4-story office building. The company paid $2.6 million this week for a 9.5-acre site, which has room for a second building.
Blair said Heritage expects to begin construction on that project in the middle of next year.
The price Heritage paid for its Hillsborough site is the latest example of how land prices in and around downtown Raleigh are spiraling upwards.
Heritage paid about $117 per square foot for its site. That is just under the $123 per square foot that The Lundy Group has agreed to pay for a city-owned site at 301 Hillsborough Street that has a 20-story height limit under current zoning.
Marcus Jackson, managing director of urban investments for TradeMark Properties, said when his company began marketing the property for the sellers he expected an apartment developer to scoop it up. Instead, the final two bidders were both office developers.
Jackson said the recent land sales show just how intense developer interest in downtown has become.
“Downtown Raleigh is growing up into the big time,” he said.