Month: November 2017

City of Raleigh Logo

Looking back at a few of our recent blogs, there is a common theme that we’ll call “all of the above”.

The recent municipal election cycle provided a sounding board for candidates to offer choices with each candidate offering his or her own set of priorities,  but what is special about Raleigh (and other cities and towns in the Triangle region) is that due to our outstanding position with Educational, Business, Government, and Non-Profit leadership, we have all of the above.

Below were the major issues we heard and how Raleigh has responded.

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Affordable Housing

Raleigh just began construction on the largest affordable housing development in Wake County history.  The Washington Terrace project, on Hill Street near St. Augustine’s University, includes 162 affordable apartments and townhomes, 72 apartments for low-income seniors, a community center and a child care center, all to be completed by early 2019.

Encouraging Economic Development

Raleigh benefits from being a business-friendly city.  Everyday it seems that Raleigh and the Triangle region make a list of the best places to start a business, get a job, rent an apartment, or make a major investment.

Improving Quality of Life

Raleigh is building Dix Park and refurbishing Moore Square Park.  Raleigh has grown from 270,000 people in 2000 to almost 450,000 people today. That 50% growth rate is a reflection of Raleigh’s economic vitality and quality of life.

Expanding Transportation

Raleigh passed a transportation bond to provide more transportation solutions – including walkable and bike-friendly communities, improved traffic calming designs, and more public transportation options.

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We were going to write about Raleigh’s new logo (top of blog on the left) which is planned to replace the classic logo (top of blog on the right), but we didn’t have anything nice to say.

In downtown Raleigh’s Warehouse District, Kane Realty Corp. is bringing the former Dillon Supply Co. building to life.  Now called The Dillon, it is the first mixed-use development of its kind in downtown Raleigh’s rapidly expanding, vibrant Warehouse District.  As you can see in the photo below, the shell of the landmark structure is preserved and rising out of the shell is a new 18 story tower for office space, two adjacent apartment buildings, 40,000 square feet of street level retail, restaurants, and even a signature rooftop dining destination. The development is scheduled for completion in mid-2018.

 

Amy Bush checking out the Dillon

The Dillon isn’t the only major development on the block, either.  Right around the corner is Raleigh’s Union Station development.

The Union Station project is an $87M multi-modal transit facility in Downtown Raleigh’s Warehouse District.  It is planned to open in January 2018 for Amtrak passengers.  It also includes a Civic Hall for large public events and Commercial space used for retail, office, and restaurants.

 

Arial view of the new Union Station

Brett Evans, a manager at The Flying Saucer Draught Emporium (also right around the corner from the Dillon and a favorite downtown meeting place for Amy Bush Commercial) told Spectrum News, “It’s insane how much is happening around here.”   We couldn’t agree more!

 

View from Dorothea Dix Park of downtown Raleigh.

When we think about how special the Triangle region is to live and work, we thank the amazing visionaries in the past who helped create the vibrant community that we live in today – the Universities, the Research Triangle, RDU Airport, the major museums, theaters, ballparks in the region.   And today, right now, we are creating one of these “once-in-a lifetime”  opportunities that will provide an amazing public amenity for future generations.

In July 2015, the City of Raleigh acquired of 308 acres of the Dorothea Dix Campus.   Currently, Raleigh is planning and developing a new destination park on the property.  According to their mission, “the master plan for Dix Park will encourage bold thinking, promote civic pride and become a new standard for the creation of urban parks.”

You can follow (and like) Dorothea Dix Park on Facebook:   https://facebook.com/DixPark/

 

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Moore Square Park in Downtown Raleigh

As we think about Raleigh’s newest park, we would be remiss if we didn’t shout-out for Raleigh’s oldest park.  As one of the original public spaces set aside when Raleigh was established, Moore Square is a 225-year-old park in the heart of Raleigh.  Ground breaking for the $12.5 million renovation project was on November 9, 2017.

We will continue to visit the shops, museums, restaurants, and city-life surrounding the park and will share in the excitement when Moore Square Park reopens in 2019!

The City of Raleigh is working on exciting improvements to the Six Forks Road Corridor.  The funding comes from a $200M transportation bond that passed a few years ago. The Six Forks Road plan makes major improvements from the I-440 Beltline to Lynn Road. It widens sections of Six Forks Road to six lanes and improves bicycle and pedestrian access.

At the Six Forks Road and I-440 Beltline, the North Hills mixed use development is one of the major commercial real estate areas that are driving the Triangle’s robust market.  Many businesses are seeking urban-like locations –  there are scores of restaurants, cafes, bars, shops, art galleries and yoga studies all within a short distance of North Hills.  That’s a huge appeal to many companies these days.  With its base at North Hills, the Six Forks Road Corridor extends northward through the heart of North Raleigh.  It is convenient and well-connected to were employers and employees want to be.

Maps from Six Forks Road Corridor Plan public meetings

The Six Fork Road Corridor Plan can be found on the City of Raleigh website.  One on the common comments and suggestions to the plan is to extend the coverage all the way to I-540.   The Six Forks Road corridor has been one of the most vibrant commercial real estate markets in the Triangle and we foresee that the improved transportation, enhanced walk-ability, and new amenities will continue to make Six Forks Road a premier place to do business.

 

Whether you are looking to invest, buy, or lease commercial real estate in the Triangle, contact us at Amy Bush Commercial and we look forward to assisting you.

We have blogged about 1031 Like-Kind Exchange in the past, but it is defiantly worth repeating.  Overall, about 1 out of every 4 Real Estate deals we are involved with are associated with a 1031 Like-Kind Exchange.   We recently gave a presentation at Preston County Club (for the Triangle Real Estate Investors Association) and many of the questions from the audience were related to 1031 exchanges.

As you probably know, there is a major effort underway in Congress to reform the tax code and reduce the tax burden. These reforms are complicated and while not specifically targeted in the current tax reform plans, the continuation of the Section 1031 like-kind exchange has been discussed as something that could be on the table.

What, exactly, is the 1031 Like-Kind Exchange? Section 1031 of the U.S. Tax Code lets those who reinvest proceeds from the sale of a non-homestead properties in similar (‘like-kind’) properties defer paying tax on the profit. It’s often referred to as the 1031 Like-Kind Exchange.

So why would any member of Congress want to reduce or even eliminate the 1031 Like-Kind Exchange?  The government could collect an estimated $40 billion in taxes over a ten-year period by repealing Section 1031, but the flip-side is that it would cost our economy in lost growth and opportunity.

The Commercial Real Estate community continues to monitor and lobby to protect the 1031 exchanges.

As with everything in the tax code, there are lots of requirements and “i’s” to dot and “t’s” to cross in order to quality for the 1031 Like-Kind Exchange.  So if you have any questions related to 1031 exchanges, let us know how we can help.