KBS Sells Raleigh, N.C., Apartment Complex for $132.5M

Fairfield Residential has acquired Park Central Apartments, a 286-unit luxury apartment complex in Raleigh, N.C., from KBS in a $132.5 million investment sale. 

John Munroe of Newmark arranged the transaction. 

KBS began developing the property in 2015 in a joint venture with Kane Realty. The joint venture opened the building in 2017, bringing not only the apartments but also 36,000 square feet of ground-floor retail to Raleigh’s downtown corridor. 

Marc DeLuca, KBS’s CEO and its regional president of Eastern U.S. operations, said in a statement that the joint venture with Kane Realty helped shape Raleigh’s “lifestyle hubs” like the North Hills neighborhood by delivering an asset with “long-term value.”

“Since delivering the property in 2017, North Hills has evolved into a vibrant, vertically expanding urban district,” said DeLuca. “Our strategy continues to prioritize alignment with best-in-class partners like Kane and long-term value creation in markets poised for outsized growth.”

Allen Aldridge, asset manager for the building and senior vice president at KBS, said in a statement that Park Central Apartments outperformed its 2015 underwriting and returned 2.4 times the original investment to the joint venture fund. 

“Park Central Apartments was envisioned as a cornerstone for the district’s next chapter for density,” said Aldridge, who noted that KBS owns nearby Bank of America Tower, an 18-story, 300,000-square-foot office building that’s now 95 percent occupied. 

Located at 200 Park at North Hills Street, Park Central Apartments features a sky deck with a pool, a clubhouse with a sauna, a dog spa, a fitness center, a conference center and a parking garage. The property is near Interstate 440 and provides easy access to North Carolina State University and the Raleigh-Durham International Airport.

Daniel McArthur, acquisitions officer at Fairfield Residential, said in a statement that KBS’s “active asset management” helped create a best-in-class asset that his firm sought to add to its portfolio. 

“As one of only a handful of true high-rises in North Hills, Park Central Apartments represented a rare opportunity to own a distinguished, high-density asset,” he added. 

Brian Pascus can be reached at bpascus@commercialobserver.com.