A Minnesota developer has started construction on an affordable housing project in south Raleigh.
Oppidan Investment Co. started construction in October on The Pines at Peach, a 119-unit multifamily project where all will be dedicated to affordable housing. Developer Noah Wagner said this project was the first in a new asset class for the company and will be its first affordable housing project in the country.
“We initially began pursuing this project in 2021 and it had several ups and downs as the economic and development market shifted with increasing construction costs. At the end of the day, we finally got it to close back in September,” Wagner said.
“We’re really happy to finally have it under construction after all those years of hard work, it’s great to see it come to fruition.”
Units will be a mix of one, two and three bedrooms where 10 percent will be offered to those making 30 percent or less of the area median income and the remaining 90 percent will be for those making 60 percent or less of AMI.
The apartments will be in five 3-story buildings. Residents will also have access to a clubhouse with fitness center, game room and community room. Outside will be a playground and picnic area.
Wagner said construction should be complete on the $33.5-million project in the summer of 2025.
The Pines at Peach was financed via low-income housing tax credits from N.C. Housing Finance Agency, tax-exempt bonds from Raleigh Housing Authority, tax credit equity from Aegon, gap financing from the city of Raleigh and a loan from Redstone Federal Credit Union, according to a statement released by the company.
The project will also be on the future bus rapid transit line as part of its southern corridor, which will be the second corridor to be constructed. The city has said it anticipates starting construction on the southern corridor in 2026.
Oppidan brought Cline Design on board for design and BGE for civil engineering. Excel Property Management will manage the apartments.
This is the first of three affordable housing projects the company is planning in Raleigh.
“It’s no secret Raleigh has an affordable housing crisis and Oppidan responded in a huge way,” said Tim Brent, executive vice president of the Southeast.
Wagner also said the company will be closing on the property for Birch and Branch, 180 affordable units in Southeast Raleigh inside the Beltline. The company also has a rezoning application in for a property in northwest Raleigh for another affordable project, this one for 150 units.
The company is also behind the Wendell Commerce Center, a mixed-use industrial park in Wendell.
South Raleigh has gotten plenty of attention, especially in the form of affordable housing, after Kane Realty announced its Downtown South development. However, construction on Downtown South won’t be starting any time soon. Various properties south of Downtown Raleigh are seeking rezonings for 20 stories or have been approved, indicating the southern gateway into downtown could look drastically different in the coming years.
