Written by David Bracken | TRIANGLE NEWS & OBSERVER
RALEIGH — Developers plan to begin construction in the coming days on SkyHouse Raleigh, a 23-story luxury apartment tower to be built across from Moore Square in downtown Raleigh.
Novare Group, an Atlanta developer that is part of the group behind the 320-unit high-rise, announced Wednesday that the group had secured financing for the $60 million project.
The tower is the first phase of Edison, the ambitious office and residential project that local developer Gregg Sandreuter first proposed in 2007. Edison is expected to eventually occupy an entire block of downtown.
SkyHouse Raleigh will be the seventh SkyHouse apartment building. One has already opened in Atlanta, and others are under construction in Austin, Orlando, Houston, Dallas as well as a second tower in Atlanta.
SkyHouse Raleigh, which will occupy the now vacant southwest corner of Martin and Blount streets, is expected to be completed in the fourth quarter of 2014. It is targeted squarely at a younger generation of renters who desire to live in urban settings.
“This is a demographically driven program targeting younger residents who desire convenient, transit linked and efficient residences,” said Mark Stewart, director of investments for Batson-Cook Development Company, in a statement.
Batson-Cook, along with NGI Investments, are providing equity for the project.
SkyHouse Raleigh will include 5,400 square feet of retail, and a pool on the top floor that will be 230 feet above street level. (By comparison, the PNC tower across from where SkyHouse will be built is 33 stories.) Residents will park in the 1,224-space parking deck that divides the block where the tower is to be built.
Sandreuter had originally planned to build two office towers on the Edison property, but he revised the project after the recession sapped demand for new offices. The plans now include two apartment complexes and a 13-story office building at the corner of South Wilmington and East Martin streets.
SkyHouse Raleigh joins a growing list of new apartment complexes that have either recently opened or are now under construction in central Raleigh.
A total of 1,103 apartment units are now under construction in the downtown area, according to Karnes Research and the Triangle Apartment Association. Those units are all in Glenwood South or Cameron Village.
But several other projects are planned for closer in to downtown.
Chicago-based Banner Apartments expects to begin construction by early next year on The Lincoln, a 224-unit complex is to be built on a two-acre block just east of Moore Square. Charleston-based Greystar Real Estate Partners, another apartment developer, also recently paid just over $4.7 million for a 2-acre tract at the corner of Wilmington and Polk streets.
Given its cost structure and luxury amenities, SkyHouse Raleigh is likely to charge some of the highest rents in the city.