CBRE Quartet Closes $100M Sale, Recapitalization in Raleigh

Raleigh, NC—Sometimes it takes a village to do a commercial real estate transaction. Such is the case with Park & Market, a class A+ residential and grocery-anchored retail property in North Hills, Raleigh’s mixed-use district.

In a transaction valued at more than $100 million—and a deal that marks one of the largest multifamily transactions ever inked in North Carolina—CBRE professionals from five offices collaborated to arrange the concurrent recapitalization and partial sale the asset. The complex includes 409 luxury multifamily units and 96,257 square feet of retail space at its base.

CBRE represented the owner, Kane Realty Company, in the sale of the multifamily portion of Park & Market to a fund managed by Dallas-based Crow Holdings Capital Partners. The sale price was undisclosed. CBRE also arranged financing for the purchase via an undisclosed correspondent life insurance company.

“The Park & Market transaction shows that institutional capital believes strongly in the Carolina markets—specifically in North Hills, where Kane has constructed a best-in-class asset,” Phil Brosseau, Jr., vice president in CBRE’s Multi-Housing Group, tells GlobeSt.com. “CBRE generated interest in the property from potential buyers and lenders that are just now discovering Raleigh’s future growth potential and economic strength.”

Simultaneously, CBRE procured a $22 million loan from Goldman Sachs Commercial Mortgage Capital to refinance the retail portion of the property. This allowed Kane to retain that component while selling the multifamily part of the asset.
 
“This transaction was unique, challenging and complex, requiring that all components of the combined deal be executed simultaneously in order for the deal to succeed,” says Brosseau. “Park & Market is a case study in collaboration and creativity, and a testament to CBRE’s unmatched ability to execute highly complex transactions.”

The CBRE professionals who worked on this transaction include, from Investment Sales, Malcolm McComb in Atlanta, Brosseau and Mark Burkhard in Charlotte, and Jeff Glenn in Raleigh; and, from Debt & Equity Finance, Steve Heffner in Charlotte, Michael Riccio in Hartford and Mark Fisher in New York.

 
“CBRE worked on a number of iterations of this transaction, including the financing and then the sale of the entire property,” Mark Fisher, senior vice president of CBRE Debt & Equity Finance, said in a statement. “Working across business lines, we were ultimately able to devise a structure to sell and finance the multifamily portion and finance the retail, providing an executable solution.”

Developed by Kane Realty Company, Park & Market is situated within North Hills with access to the Raleigh - Chapel Hill - Durham Triangle. In 2010 it was named “Project of the Year: Mid-Rise” by Multifamily Executive magazine.