Can Miami Developers Learn From This Retail Project?

MIAMI—Kane Realty saw opportunity where others saw an aging retail area. Looking back, the company took a big risk and wound up with a bigger vision that it first imagined. The result is an award-winning 130-acre mixed use, multi-generational district in the heart of Midtown Raleigh, North Carolina called North Hills.

North Hills represents the transformation of what was the aging, first enclosed two-level mall between Washington, DC and Atlanta. Kane started the massive undertaking in 1999 when it purchased and redeveloped North Hills Plaza. Kane went on to purchase North Hills Mall and build one of the most comprehensive private redevelopment in-fill projects in the Southeast US.

Before North Hills, Raleigh residents that wanted to go out to dinner didn't have a cluster of options in one urban destination—much less a city within a city. Today, North Hills is home to luxury hotel rooms, class A office space, fine dining, salons and day spas, high-end boutiques, national retailers, a two-story grocery store, a 14-screen movie complex, a state-of-the-art athletic club, and plenty of public gathering places.

Of course, it didn't happen over night—or without challenges. For example, securing Target's approval for a store with its only customer entry located under a parking deck was a challenge. So was pre-leasing class A office space in a market with a close to 20% vacancy rate. And when Kane set its sights on the east side of Six Forks Road, the 50 acres of buildings that were purchased had no connectivity.

The acquisition of 19 separate separate parcels of land was the most high-risk undertaking of the North Hills redevelopment because the entire 50 acres had to be rezoned and deed restrictions had to be removed. Kane worked to win the community's approval with its grand vision and ultimately saw one fo the largest rezoning approvals in Raleigh history, paving the way for 1.5 million square feet of office space, 1,800 residences, 2,000 hotel rooms and 450,000 square feet of retail.

North Hills differentiates itself with hotel rooms, office tenants and residences located directly above a high energy and active first floor. The first floor is home to 120 merchants including Anthropologie, lulu lemon, REI, and Vineyard Vines, along with 30 restaurants like Ruth's Chris, Yard House, Chuy's and Bonefish. With vertical integration of retail, Kane has created an urban layout that is nearly 100% full in retail, office, multifamily and hospitality at the highest rates in the market.

In 2014, Business NC magazine named John Kane, chairman and CEO of Kane Realty, the Developer of the Year. The award recognized Kane for “hitting his stride” at North Hills.

Kane isn't resting on its laurels, though. Over the next decade, the developer is planning to bring online more apartments, hotels, retail, and class A office space that will add to the Midtown skyline and the Triangle's growing economy. North Hills will work to continue filling the void for Raleigh's newest employees, residents and guests who are looking for a 24/7 walkable environment with active streets, outdoor dining, late night activity and a multitude of events.