Love Chapel Hill’s Southern Village? Now there’s another option for living next door.

Tammy Grubb

Families will soon have a new neighborhood to consider when looking for a home in southern Chapel Hill, nearly 30 years after the town approved the Southern Village community across the street.

The Chapel Hill Town Council approved the South Creek development along U.S 15-501 unanimously Wednesday night after New York developer Beechwood Homes came back with a denser plan, better pedestrian connections to Southern Village and more commercial space.

Mayor Pro Tem Karen Stegman was absent for the 8-0 vote. No one from the public spoke, a sharp contrast to the years of planning and controversy that went into a previously approved plan for the site.

Beechwood Homes will build up to 815 apartments and for-sale condos and townhomes, plus commercial space on the undeveloped land east of the highway.

The community will have up to 101 units — 15% of condos and townhouses and 10% of the apartments — priced for sale and rent at below market rates. Over 54,000 square feet will be designated for ground-floor commercial space that is expected to complement the businesses on Market Street at Southern Village.

Developer Beechwood Homes will build hundreds of apartments, townhomes and condos on roughly 43 acres of land across U.S. 15-501 from Southern Village in Chapel Hill. The project also includes over 54,000 square feet of retail (shown in blue, green and red).
Developer Beechwood Homes will build hundreds of apartments, townhomes and condos on roughly 43 acres of land across U.S. 15-501 from Southern Village in Chapel Hill. The project also includes over 54,000 square feet of retail (shown in blue, green and red).

The retail node at South Creek will have a plaza for outdoor dining and a lawn. A terraced green surrounded by condos is planned near the Sumac Road intersection and also could provide co-working and pop-up business space, officials said.

Over 80 acres east of Wilson Creek, which cuts through the site, will be preserved and offer public trails.

Council members encouraged the developer to remain open to using more space for commercial tenants, particularly offices, and more landscaping between the highway and townhouses. They also praised the pedestrian improvements, the additional affordable units and the green spaces threaded through the development.

“I do love the gathering spaces,” Mayor Pam Hemminger said. “People want to come together, especially outside.”

Older folks also love green space where they can hang out, Council member Camille Berry said.

“That was something that the adults had not voiced, but really appreciated, so thank you,” she said.

An architect’s rendering from January 2022 shows ground-floor retail and offices at the main entrance to South Creek at the intersection of Market Street and U.S. 15-501, across from Southern Village.
An architect’s rendering from January 2022 shows ground-floor retail and offices at the main entrance to South Creek at the intersection of Market Street and U.S. 15-501, across from Southern Village.

Replacing Obey Creek

South Creek replaces the planned Obey Creek, a project with roughly 700 apartments and over 1 million square feet of retail, offices and hotel rooms that failed to get off the ground.

Like Obey Creek, a major issue for South Creek has been preserving land east of Wilson Creek and the density that could be built along the highway.

A 1992 Southern Small Area Plan marked the project site low-density in exchange for a denser Southern Village. South Creek will keep the preserve, but build closer to the western side of the creek and encroach on the steep slopes.

It will be built over several years, with buildings away from the highway up to five stories tall. The for-sale units could range from roughly $300,000 to $900,000, project officials have said.

The council wants more housing, especially in a range of types, prices and leasing rates. The council also asked about the possibility of a bridge or tunnel to help pedestrians cross the highway. The developer said the topography and additional time pedestrians would need to navigate the ramps to the tunnel or bridge made them unworkable.

A pedestrian crossing at Sumac Road will have signals and a refuge island, especially helpful for children walking and biking to school at Scroggs Elementary, located in Southern Village, Chapel Hill council members said.
A pedestrian crossing at Sumac Road will have signals and a refuge island, especially helpful for children walking and biking to school at Scroggs Elementary, located in Southern Village, Chapel Hill council members said.

Project details

▪ Developer: Beechwood Obey Creek LLC

▪ Location: 120 acres at 4511 S. Columbia St.

▪ Zoning: The vote replaced a pre-existing development agreement with a conditional zoning for a mixed-use village district

▪ Current use: Undeveloped, with a few vacant homes

▪ Approved use: 815 apartments, and for-sale condos and townhomes, plus over 54,000 square feet of commercial uses.

▪ Affordable housing: 101 units. Roughly half will be sold or rented to people earning 65% of the area median income and the other half will be sold or rented to people earning 80% of AMI — up to $53,520 a year for an individual or $61,120 for a couple. The rental units will remain affordable for 30 years; the for-sale units will remain affordable for 99 years. Housing vouchers will be accepted.

▪ Parking: Over 900 surface, on-street and parking deck spaces

▪ Amenities: Green spaces, including about 80 acres for a public preserve, a terraced area near Sumac Road, and an overlook and trail connections near Wilson Creek. A memorial to 1960s civil rights protests at the Watts Motor Court and Restaurant, which previously occupied the site.

▪ Getting around: Bus stops and the Southern Village park-and-ride lot are within walking distance. Three driveways include a full intersection at Market Street and a left-turn only intersection at Sumac Road. $100,000 for a future bus-rapid transit station at Market Street. A pedestrian refuge and activated traffic signals will be added to the Sumac Road intersection.

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