RALEIGH, N.C. — Commercial real estate owner and operator KBS has completed the disposition of Park Central Apartments, a luxury high-rise multifamily property located in Raleigh. San Diego-based Fairfield Residential acquired the asset for $132.5 million.
KBS developed Park Central Apartments in a joint venture with locally based Kane Realty Corp. Construction on the project began in 2015 and was completed in 2017.
Totaling 286 apartments, the building also features 36,000 square feet of retail space. Current tenants at the property include food-and-beverage concept Happy + Hale, fitness studios Midtown Yoga and Orangetheory, ice cream shop Kilwins and Jabala Coffee.
Amenities at the community include a sky deck with a saltwater pool, clubhouse, sauna, dog spa, fitness center, conference center and a dedicated parking garage.
Situated in the North Hills district, the property features access to I-440 and walkability to a grocery store, multiple fitness concepts and dozens of restaurants, entertainment venues and retailers. Park Central Apartments is also located in proximity to downtown Raleigh and North Carolina State University.
“Each project we’ve developed in North Hills has outperformed our underwriting, reinforcing our conviction to this live-work hub and our strategy,” says Allen Aldridge senior vice president at KBS and asset manager for Park Central Apartments. “Park Central Apartments embodies our approach consistently performing well year-over-year, and upon exit, returning approximately 2.4 times, the original investment to that fund.”
KBS’s adjacent office building project, the Bank of America Tower, is currently 95 percent occupied.
John Munroe of Newmark represented KBS in the sale. Attorneys Bruce Fischer and Howard Chu and paralegal Amanda Kennedy of Greenberg Traurig also assisted in the transaction.
Founded in 1992, KBS has acquired and operated a portfolio of roughly 1,700 multifamily, industrial, office and retail properties since its inception. The company is based in Newport Beach, Calif.
— Hayden Spiess