Raleigh giving away 1.17 acres downtown for affordable housing
Member since 2019 · 28 posts · 7 votes
Anybody know any good affordable housing developers in NC? A majority of the 10 units/acre (1.17 acres) would be for those making ~$44,000/year or less, which is roughly a $230k house according to affordability calculators. Lot of possibilities here.
See the agents BiggerPockets members work with in Raleigh, NC.
See agentsI have not read the city RFI but there is an incredible need for affordable housing and 12 units is not going to scratch the surface. If they could do a 5 over 1 in there like you are seeing everywhere for condos and apartments, it could help out more people and even add some retail space on the bottom to subsidize the development. Or how about that tiny home design contest Raleigh sponsored a year or so ago? Either would help more people get homes.
The parcel is zoned R-10 so your suggestions fail zoning, density, and the neighborhood consistency and character tests. It may help to read the RFI. Regarding "If they could do a 5 over 1 in there like you are seeing everywhere for condos and apartments..." could you cite a single example of a 5/1 in Raleigh? I've never seen one. I don't think they are everywhere here. Certainly not in Idlewild or any Oakwood infills.
Rant = ON
I managed property many years ago off N. Raleigh Blvd and frequently passed through Oakwood/Lane/Jones en route to greater NCSU property I also managed. I treated it like a little farm area, for those of you familiar with the term. I saw opportunity amongst the street dealing, prostitution, and property crime. While I am not a big fan of the city, I am ASTOUNDED at how this whole greater Oakwood/College Park area has transformed. For the most part, the city made this happen. Not the infill project (the subject of this post) but the project bordered by Oakwood/n. Raleigh Blvd./St. Augustine. The capital infusion of city money was the catalyst for the gentrification of College Park. I am glad for the owners there and am somewhat pissed at myself for not buying there when I had the opportunity a decade ago. I saw it happen. I saw the South Park transition happen, too. I posted about it on BP 4 years ago. This area was as I said then, indeed a 'home run' for investors.
In my investment career, I've realized you don't have to catch every opportunity. But it's better that you catch one every once in a while. The key is that you have the awareness that you have the opportunity. And my goal is to position myself so that I can have that 'opportunity experience'. Most of the time I believe it is better to have the opportunity and fail than to not have the opportunity to fail. I have made my partners millions. I have done ok myself and only complain because I am self critical... because I could have persuaded my partners in the College Park and South Park opportunities. LOL! Pitching is hard. It takes a lot of work and dedication. Kind of like the topic of this post.
RANT = OFF
The people/organization winning this 'grant' will spend the effort to actually understand the affordable housing issues in Raleigh, in the context of the neighborhood and community as it relates to this opportunity.
The houses on those lots were torn down 10 or so years ago. I would think any infill builder who can answer requirement 3 on page 9 of the city RFI would (or could) build your project. There is no requirement that the lots stay as they are, so the bidder could create 5 infill parcels (possibly 6) for 10 or 12 units. I would expect CASA, Habitat for Humanity, and similar organizations would compete with you. But if you have a better plan, there is no telling who will prevail.
I have not read the city RFI but there is an incredible need for affordable housing and 12 units is not going to scratch the surface. If they could do a 5 over 1 in there like you are seeing everywhere for condos and apartments, it could help out more people and even add some retail space on the bottom to subsidize the development. Or how about that tiny home design contest Raleigh sponsored a year or so ago? Either would help more people get homes.
I have not read the city RFI but there is an incredible need for affordable housing and 12 units is not going to scratch the surface. If they could do a 5 over 1 in there like you are seeing everywhere for condos and apartments, it could help out more people and even add some retail space on the bottom to subsidize the development. Or how about that tiny home design contest Raleigh sponsored a year or so ago? Either would help more people get homes.
The parcel is zoned R-10 so your suggestions fail zoning, density, and the neighborhood consistency and character tests. It may help to read the RFI. Regarding "If they could do a 5 over 1 in there like you are seeing everywhere for condos and apartments..." could you cite a single example of a 5/1 in Raleigh? I've never seen one. I don't think they are everywhere here. Certainly not in Idlewild or any Oakwood infills.
Rant = ON
I managed property many years ago off N. Raleigh Blvd and frequently passed through Oakwood/Lane/Jones en route to greater NCSU property I also managed. I treated it like a little farm area, for those of you familiar with the term. I saw opportunity amongst the street dealing, prostitution, and property crime. While I am not a big fan of the city, I am ASTOUNDED at how this whole greater Oakwood/College Park area has transformed. For the most part, the city made this happen. Not the infill project (the subject of this post) but the project bordered by Oakwood/n. Raleigh Blvd./St. Augustine. The capital infusion of city money was the catalyst for the gentrification of College Park. I am glad for the owners there and am somewhat pissed at myself for not buying there when I had the opportunity a decade ago. I saw it happen. I saw the South Park transition happen, too. I posted about it on BP 4 years ago. This area was as I said then, indeed a 'home run' for investors.
In my investment career, I've realized you don't have to catch every opportunity. But it's better that you catch one every once in a while. The key is that you have the awareness that you have the opportunity. And my goal is to position myself so that I can have that 'opportunity experience'. Most of the time I believe it is better to have the opportunity and fail than to not have the opportunity to fail. I have made my partners millions. I have done ok myself and only complain because I am self critical... because I could have persuaded my partners in the College Park and South Park opportunities. LOL! Pitching is hard. It takes a lot of work and dedication. Kind of like the topic of this post.
RANT = OFF
The people/organization winning this 'grant' will spend the effort to actually understand the affordable housing issues in Raleigh, in the context of the neighborhood and community as it relates to this opportunity.
Chris, Interesting post; my apologies, I probably should have prefaced my post that I am a beginner, not a land developer, just an idea. Looks like my first deal will close in a month for an SFR rental. My comments were merely suggestions for future developments and as you said, I thought they probably would not work on this property and may not work at all. There are quite a few 5 over 1's in Durham and I believe the new properties that went up on Hillsborough Road close to NCSU would be considered 5 over 1's or 4 over 1's. I think there is one in North Hills too across the street from where JC Penney used to be or still there? There is also one in West Cary as well. They seem to be in upscale neighborhoods/areas so maybe they are not suitable for my suggestion. They are prolific nationwide, not a bunch in Raleigh like you said though.
There is a developer building a small subdivision of SFH's starting in the 400K price range - this is right past N Raleigh Boulevard near the corner of Brighton and Millbank, along with so many new builds that have even started to cross the 500K mark. I think in 5-10 years this neighborhood will not have affordable housing any longer (with the exception of government assisted living on N Raleigh blvd).
@Account Closed It sounds like you're referring to the development happening in my neighborhood. I saw the preliminary design and it looks to be nine modern 2-unit townhomes (sold as SFH) in the middle of an established neighborhood of ranch-style SFHs. It will be an interesting dynamic as this new construction will likely drive up property values for the neighborhood as a whole. Home prices have already risen significantly in this neighborhood over the past 5 years, with no signs of slowing down.