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MORRISVILLE, NC-Grace Park, the city’s first mixed-used development, is set to deliver 128 rental apartments and 58,000 square feet of retail this June. The $32-million project is being developed by a joint venture between Long Island, NY-based Kalikow Group and Raleigh, NC-based EYC Cos. at the corner of Morrisville Carpenter Road and Davis Drive. Approximately $25 million in financing for the project was provided by Capital Bank of North Carolina, and the remainder came from equity of the development partnership.

Development includes seven buildings, six of which contain ground floor retail and apartments above, and one full apartment building, explains Edward Kalikow, president and CEO of Kalikow Group. The retail portion is 45% leased to tenants including Starbucks, Quiznos Subs, Salon SOS, Buffalo Wings and Rings and Anytime Fitness. The apartments have already been 31% leased, with units averaging about 1,400 square feet and rental rates at approximately $1.07 per square foot per month.

Another six outparcels that have already been developed are located at the site, and have been sold to companies such as Pristine Auto Spa, Dairy Queen, Cardinal Bank, Kangaroo and a veterinary clinic. Phelps Dickson Builders is also in the process of constructing 52 townhomes with prices starting at $350,000 at the location.

“This is the first mixed-use development of its kind in the area, so it’s an opportunity to give people a chance to live and shop in a pedestrian-friendly environment,” Kalikow tells GlobeSt.com. He says they project to be 100% leased on both the retail and residential side by the third quarter of this year. Success with preleasing is attributed to the location of the development, less than 1.5 miles from major employment areas such as the Town of Cary and Research Triangle Park.

“In this economic climate, it is difficult for retailers to open up and expand locations. That makes us as developers work harder to be their advocates and their partners to try to get them open for business,” says Kalikow. “If we believe they have a good concept, we have to stretch a little further to help them.”

Grace Park is not the first project undertaking between Kalikow and EYC. One year ago, the joint venture completed a 192-unit rental apartment complex in Nebane, NC. That building is now fully leased, and is owned and operated by the partnership.

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