Wow all of a sudden the Dillon is full! Meanwhile 400H, 300H, Edison, N&O block etc are dragging their feet.
Fortune favors the bold
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and rich…Lol 
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You mean companies don’t want to wait 3 years to move into an office building? – Raleigh developers other than Kane, probably.
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Does this mean that Kane will start working on the land he owns between Peace (Sleepy Hollow) and West at North? Really hoping for some interesting office/residential buildings to fill that gap. Sleepy Hollow isn’t looking so sleepy anymore.
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Doubt it. Kane would need outside investors has I’m sure financially Kane Realty Corporation is tied up in many, many projects. The property Kane owns south of the railway tracks in DTR won’t be developed until 4 or 5 years from now. About the time KRC should be done with most announced projects.
I am actually learning not to underestimate or doubt anything that involves John Kane…
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As with the majority of John Kane projects, he seems to build, sale, then become the property manager. I think we will see a sale on the Dillon building in the near featue,
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It will be interesting to see how long it takes to develop the area between the West and Publix/Peace. I literally stare right at the site. At least one of the properties is brownfield I think … and quite honestly not sure what all that entails. While it would be nice to have things settled down over here after they finish Publix / Peace, part of me wishes he would just go ahead and get it all done. And to @RobertSanderlin , I agree, don’t underestimate Mr Kane.
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How much money (construction materials, laborers, retail, prop mngr) and jobs have all Kane projects provided Raleigh?
The Dillion makes all the difference in the warehouse district.
Here is an interesting quote from John Kane in TBJ:
“The leasing activity also underscores what Kane views as a fundamental truth of the Raleigh office market: you have to build before tenants will sign leases. Not the other way around.
“You really got to get the building going before you get through much leasing,” Kane says.”
So, does this mean you have to have full pockets in order to fill your pockets?
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Yes, and he filled a lot of pockets in building it and maintaining it. I wonder if he used free steel, free cement, free labor, free wood and everything else it took to build. Must be nice to build all these complexes for free and then reap the Benifits
What? Are you saying he should’t use what is at his disposal or that Kane is somehow gaming the system? I mean this guy is the only developer remotely getting things done.
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Must be nice to use spell check. 
I’m not even taking the bait and asking why you think everything he needs to build is free.
He’s the only developer that gets anything done. If he needed an interest free loan from the city, I’d vote for that too.
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Hi DTR Community,
I sincerely hope that everyone understands that I had no intentions of berating or disparaging JK?
The opposit, I was honestly surprised of his candor in regards to the office market. They will come, but you will have to build it first…
And as we all know how incredibly difficult it must be to obtain financial support for a building when there is no tenet at the time. Which lead me to my earlier statement/question: do you have to have deep pockets in order to obtain deep pockets? Otherwise most developers would have to wait until they get a tenet first… 
Oh, and I agree about JK a developer that admire more all the time. 
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Not to state the obvious, but I assume JK has easier access to capital for these kinds of projects since he has a proven track record of getting things built and leased. I would be curious to see how his financing model compares to those of other local developers and how that impacts their decisions.
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Same! Develop it so we can have some Peace! Ironically, we’re losing sight of Peace Street. LOL
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Signs of progress and growth in Raleigh, with the Dillon now built… One Glenwood and Origin Hotel being built…also FNB Tower built. Oh…and RUS now completed. And let’s not forget West/Peace, I just Pray that this building momentum continues and grows more quickly. John Kane is a Developer nothing more and see nothing wrong in what he does, Just look at North Hills ( Midtown )
This property flyer for the Dillon states that the retail space for the project is already 87% leased and the office portion is 100% leased. Right on!
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I’m sure when he first started out he couldn’t just build on spec like he does now, as he wouldn’t have been able to get the financing. His first projects are most likely funded via angels / equity investors However, after decades of credibility built up with his projects, not to mention collateral in terms of assets. The banks / real estate investors will finance his projects as he has a proven track record. I wonder what a deal like that actually looks like on paper. Would love to get a hold of a term sheet for one of these projects and take a look…
So long answer short, yes, you need to have deep pockets (either capital or credibility) to obtain deeper pockets and even more capital / credibility. It is absolutely true, in all industries, that the more money you have, the easier it is to make more money.
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The other point to consider here is that a bank will never loan you 100% of a project. 70% probably is about as high as it’ll go. So the other 30% will have to come from your own pockets or you and your investor’s pockets. Let’s say a project is $100M, you may have the credibility to get $70M from the bank on spec. But you still need to come up with $30M. That’s where your deep pockets come into play, or, you know a lot of investors with deep pockets and you can do a capital call. Even in the latter situation, no investor will put in money unless you have skin in the game. So on $30M, you’d probably have to put in $2-3M to get others to put their money in.
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