$50M apartment complex going up next to Drive Shack in West Raleigh

A developer is pushing ahead with a $50 million apartment complex after buying lots next to Drive Shack in West Raleigh.

New York-based KDM Development Corp. paid $6 million for 25.16 acres at 1101 Corporate Center Drive and Play Golf Way. The seller, AIS Forestry & Farming LLC, is an entity that belongs to the Stephens family of Raleigh.

The partially forested land sits on the eastern and southern boundaries of Drive Shack, an interactive golf-and-restaurant complex. Venues such as PNC Arena, Carter-Finley Stadium, and the N.C. State Fairgrounds are within a 2-mile walk.

Amid a long-running housing shortage, the deal paves the way to add more inventory to this fast-growing corridor of Raleigh, KDM said.

Plans include building a four- and five-story building with about 180 units of mostly one and two bedroom units. Rents will be market rate.

The development will also feature a clubhouse and swimming pool with a deck.

“The plans complement the surrounding developments, including Drive Shack,” said Chester F. Allen, executive vice president at CBRE|Raleigh, in a release.

Around the corner, District at 54 apartments rent for about $1,810 for a one bedroom and up to $2,924 for a two bedroom, according to Apartments.com.

Construction is slated to start in March 2024 after receiving rezoning approval in July, Triangle Business Journal first reported. Units are expected to be available by 2026.

KDM already has several projects under construction in the Triangle. They include Swift Creek Apartments, a 613-unit complex in Garner and Fox Crossing, a 168-unit development in Durham.

Construction boom

One of the fastest-growing cities in the country, Raleigh is seeing a major uptick in new rental construction.

Some 10,922 apartments are on track to be built in the Raleigh-Cary metro area by year’s end — hitting a six-year peak and surpassing large hubs like Seattle and San Francisco, according to new report from the listing service RentCafe.

However, headwinds remain. Among them: the rising costs of construction materials, labor and land, and the tightening of bank lending standards.

It’s making it harder to pencil deals, Allen told The N&O earlier this month. “Long term, we’ll be OK, but it’s making it difficult in the short-term.”

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