I, for one, have never driven there.
4 Likes
Kane mentioned on the Bottom Line Triangle podcast from Feb 19 that he didn’t want to sell Peace and others. Question at 8:15. “No. It’s funny. In my world of capitalization; we own part of all these properties, but our financial partners own much more than we do and we’re dictated by them. I didn’t want to sell Peace…”
2 Likes
ICYMI, Left Hook’s grand opening on E Hargett is August 1.
12 Likes
Not sure where to put this, but Raleigh Magazine has an article about developers buying up land and kicking out the businesses that were established there, then just letting the plots sit for years with no activity. We talk about this a lot, and it’s good to see it in the mainstream.
8 Likes
The prior company I worked at did this and I’m happy to explain the insight from a development standpoint.
When developers buy a site with existing tenants to build something else, the biggest concern is how long it will take have space vacant so that it doesn’t slow down the plan when all other things are ready. The lost rent is negligible from a project cost stand point. Often times because the landlord (developer) is asking the tenant to leave the space earlier they are paying them and relocation cost. It’s obviously a double edged sword for the tenant and they usually have the leverage - they are never forced out because leasehold estate means that the developer can’t just boot the tenant. It’s not ideal for the community during this phase as they lose a commercial space they may frequent, but one of the early questions lenders/equity will ask the developer is if the site is ready for construction and if a tenant that hasn’t vacated early is flagged as a risk.
9 Likes
And as a result of property acquisition, construction fees, loss of rent (negligible) equals much higher lease/rent price and ultimately more expensive for the community.
3 Likes
Commercial retail is a very complex asset in real estate. In Raleigh you mainly have “institutional” landlords and not so many small community operators (which I would argue is due to limited commercial zoning). A lot of these major landlords are looking exclusively at the math behind the deal which means not just the rent, but the tenant quality/mix, length of the lease, and what phase of ownership the landlord is in. For a developer like Kane they need tenants like Publixs and other credit worthy tenants with leases that give lenders confidence on the financing that the cash flow will be consistent.
If Raleigh wants more local, small retail with competitive rents, they need to revise the UDO and give more clarity to the accessory commercial units. This will increase the supply of retail space and allow landlord entrants that are focused on more than just quantifiable bottom line transactions. It’s very possible to be a small retail landlord and make a financial return if regulations are setup to encourage it.
10 Likes
I was going to ask what’s missing from the ACU regulations (I remember being so excited about them when they were first passed), but I just looked it up and was surprised by what it was whittled down to.
- No more than 2 non-resident employees may work there at one time.
- No more than 5 customers may be on-site at once.
- Hours are limited to 7:00 AM–7:00 PM.
- Drive-throughs, outdoor seating, and outdoor display areas are prohibited.
- Only limited signage is allowed.
Permitted business types include:
- Offices
- Personal services (with some exclusions)
- Dance, martial arts, and music studios
- Sports academies
- Graphic design
- Art, toy, textile, and apparel production
- Repair/assembly of items such as jewelry, computers, clocks, and musical instruments
- Limited sales connected to items produced or repaired on-site.
So… no walk up espresso bar or donut counter possible. No micro book-store. Raleigh basically just legalized a sole practitioner therapist/architect/photographer taking clients in their backyard. Nothing that gets people excited about walkability or mixed use neighobrhoods.
9 Likes
Where is that in Cary? I don’t recognize it.
1 Like
It’s the new parking deck by Taipei 101. You should drive out there and take a look 
2 Likes
it’s new, designed by Machado Silvetti (same architect behind the downtown park pavilions). Wild that they have world class architects designing parking decks.
2 Likes
Cary is the new Miami Beach.
3 Likes
It’s the new Manhattan if you believe the comments online. 
6 Likes
2 Likes
Last Tuesday I met a friend for Taco Tuesday in that part of Cary and decided to pop over to see Fenton for the first time. I enjoyed my 5 minute walk around the place to look at all the stores that closed at 8PM. I had a good time.
3 Likes
Where did you get tacos in DT Cary? Baja Grill isn’t open yet!
3 Likes
How long did it take you to walk to Cary? That’s quite a hike.
4 Likes