A team of experienced developers is planning to create more than 1,000 units of affordable, mixed-income housing as part of an ambitious plan with the Durham Housing Authority (DHA) in North Carolina.
Two sites were awarded to Durham Development Partners, a joint venture team between F7 International Development, Greystone Affordable Development, and Gilbane Development Co. They were awarded the Fayette Place and the DHA office and Criminal Justice Resource Center (CJRC) sites as part of the DHA Downtown and Neighborhood Plan (DDNP).
The development partners are set to enter master development agreement negotiations with DHA and its development arm, Development Ventures, Inc. (DVI), for each site this year.
“We’re looking forward to working with each of our selected partners to create new and affordable living developments in Durham,” said DHA CEO Anthony Scott in a statement. “Implementing the DDNP will also generate additional job opportunities for our DHA residents, and we’re grateful to have selected partners who understand that vision.”
In addition to the housing, the team is proposing to build a six-story, 468-space parking garage, a 42,000-square-foot office building, and a 20,000-square-foot retail parcel across two sites. The proposal advances the DDNP’s goals of creating and preserving long-term housing affordability, integrating environmental sustainability practices, and ensuring equitable development that is inclusive, accessible, and community driven.
The total development cost is estimated to be about $250 million for all phases.
The plan for the DHA office and CJRC sites is to build a 258-unit affordable, mixed-income residential building and to demolish an existing parking deck and replace it with the new garage. In addition, there will be a new stand-alone office building adjacent to the CJRC site to replace the consolidated DHA offices.
The Fayette Place site is a 19.8-acre property that was once a public housing community but is now vacant. Plans call for the creation of 774 affordable, mixed-income units spread over four building types—garden-style walk-ups, an irregular-shaped building with structured parking, east and west L-shaped buildings, and a north L-shaped building. The north L-shaped parcel may alternatively be designed to provide a less dense residential community providing homeownership units and a smaller pocket park/green space for homeowners. The site also includes the 20,000-square-foot stand-alone retail parcel that fronts Fayetteville Street. The build-out of Fayette Place is expected to take place over three phases.
The joint-venture team brings a mix of local and national experience to the project.
“Our development team is grateful for the opportunity to partner with DHA/DVI, and we understand the historical significance of these sites and how crucial this redevelopment will be in reimaging these communities,” said James “Monte” Montague, president of F7 International Development, a local minority-led and owned firm. “We recognize our role as an economic engine in the local community, through creation of jobs, local and minority-owned business participation, and a shared prosperity plan. We look forward to partnering with community-based organizations to meet, listen, and assess community concerns and refine our concept plans to capture the community’s ideas, visions, and hopes accordingly.”
Headquartered in Raleigh, Greystone Affordable Development is among the largest developers and developer partners of affordable rental housing in the United States having successfully developed and/or repositioned more than 380 affordable housing communities with overall financing exceeding $1.7 billion.
“Our team is excited about this opportunity to work collaboratively with DHA/DVI and the broader Durham community to develop and build mixed-income affordable housing and purpose-built community and commercial space that will honor the city of Durham’s rich history and serve its citizens for years to come," said Will Eckstein, senior vice president at Greystone.
The real estate development, investment, and property management arm of Gilbane, Inc., Gilbane Development Co. has developed a wide range of real estate projects across multiple markets throughout the United States. It has financed and delivered multifamily, mixed-use, and public-private partnerships totaling more than $5 billion, with 15,000-plus units of housing developed/underway.
“As a developer who is committed to ‘developing dynamic communities’ by creating inclusive and affordable housing for all, Gilbane Development Co. understands the importance of engaging with residents and community stakeholders,” said Blaise Rastello, development director with the firm. “We look forward to working with our partners to deliver DHA/DVI and the community the best, most timely, and economically beneficial redevelopment.”
The team expects to exceed the city of Durham’s Shared Prosperity Plan by ensuring that minority/women-owned business enterprises (MWBEs), underutilized business enterprises, Section 3 Business Concerns, and individuals share in the economic prosperity generated from the projects, with a goal to surpass DHA’s 30% target for MWBE participation.
The DHA board also approved The Integral Group for the redevelopment of the Forest Hill Heights community. "We will bring our capacity and focus to redefining national standards for communities committed to cultural inclusivity, shared prosperity, and housing affordability," said Vicki Lundy Wilbon, president of Integral's real estate platform. "The Tribute Rising development will leverage the substantial excitement and energy in Durham while respecting, acknowledging, and honoring the history and heritage of the community." Integral's proposal includes 700 mixed-income residential units and 73,000 square feet of commercial space.
