Downtown Raleigh Apartment Construction

Apartment Under Construction in Downtown Raleigh

Development of large apartment complexes in downtown Raleigh continues at impressive levels. Driving though the area, one can see new construction on nearly every major street.  Multifamily projects currently under construction include:

Apartment Under Construction in Downtown Raleigh

Downtown Raleigh Apartment Under Construction

DevonFour25 – 261 Units

The Edison – 239 Units

Elan City Center – 213 Units

The Gramercy – 209 Units

The Lincoln – 224 Units

The Link Apartments – 203 Units

Skyhouse Apartments – 320 Units

Additional development sites in downtown are very limited.  However, several projects are pending including the West Apartments in the Glenwood South.

Through most of 2014, strong investor demand has compressed capitalization rates for new construction into the low 5.0’s.  Cap rates at these levels have undoubtedly contributed to the additional wave of new construction in the area.  Market wide vacancy seems to have increased a bit, but this is no surprise considering the amount of units that have been delivered.  Rental rates are stable to increasing, due primarily to strong job and population growth in the area.

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