Construction set to begin on Raleigh's next tallest residential tower
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Rendering: Courtesy of Turnbridge Equities
Construction is set to begin soon on what will be Raleigh's largest residential tower — a development that will add to the city's changing downtown skyline.
Why it matters: When completed, the Highline Glenwood tower will be 37 stories tall on the site of the historic Pine State Creamery building — edging The Eastern apartment tower in North Hills by one floor.
- The Highline's construction is also a sign that developers and lenders are still confident that downtown Raleigh's blistering growth will continue into the end of the decade.
Driving the news: The building's developer, Turnbridge Equities, said it will begin work on the $200 million project next month after finalizing financing for the project from Axos Bank and the managed accounts of Manulife Investment.
Zoom in: The building, expected to be finished in 2028, will have more than 300 apartments, a sky lounge, retail space on the first floor and a range of amenities, from a pool and padel court to a golf simulator room and sauna.
- The project will also preserve the historic Creamery building, which is set to be the future home of BuildOps 290-person office, according to Turnbridge.
Between the lines: Turnbridge, which also owns the Mutual Tower in Durham, is betting that Raleigh will enter the latter part of this decade still hungry for new apartments.
- The area, especially downtown, has seen a record number of apartments built in the past few years.
- But plans for future construction have already begun to slow, with interest rates remaining high and newly opened buildings competing for tenants.
- Turnbridge said in a statement that Raleigh's apartment construction pipeline has already declined by 70% since 2022. It believes it will continue to decline, despite the city's population growth continuing.
What they're saying: "Highline Glenwood will deliver into an ideal environment amid very limited new supply and continued population growth," Jason Davis, managing director of Turnbridge, said in the statement.
- In 2028, this tower "represents one of Raleigh's first projects in the next cycle of development, and by launching before the broader recovery, we have been able to lock in attractive construction costs that will be hard to replicate when activity picks back up," Davis added.
What's next: Turnbridge has room on the site for more construction, but what that will be remains unclear.
- The company says it retains flexibility for a second building that could hold 300 residential units or 300,000 square feet of office space.