North Hills 2017 Year End Review & 2018 Outlook

North Hills 2017 Year End Review & 2018 Outlook

Letter from the President Throughout our real estate market, we continue to hear that the Triangle has three distinct urban areas: downtown Raleigh, downtown Durham and Midtown Raleigh. While each of these three areas have their own distinctiveness, they have much in common--a variety of dense residential living adjacent to thriving office environments with walkable areas along grids of streets filled with activity around restaurants and retail.

Compared to markets such as Charlotte, Nashville or Austin where there is only one urban area, our market has three vibrant urban areas. Maybe our greatest distinction in the chase for Amazon’s HQ2 is that our market has three destinations for residents and guests to frequent for nightlife, entertainment, shopping and dining. And North Hills, as the heart of Midtown Raleigh, experienced tremendous momentum in 2017 with an outlook that has never been more exciting.

Over the past year, North Hills has continued to see the growth of the Park District with three new buildings opening and two more reaching full occupancy. The growth of the Park District at North Hills with the recently zoned 33 acres along St. Albans also gives us a glimpse of an outlook of more places to live, work and “be”. Throughout the entirety of North Hills in 2017, we added more employers in our office buildings, added new restaurants and retailers, opened additional hotel guest rooms, and added more residences: • 18-story Bank of America Tower reached 100% leased, with 300,000 square-feet of additional office space next door to the 100% full 17-story CAPTRUST Tower’s 300,000 square feet.

• The Dartmouth, North Hills’ newest urban-style apartment community, reached stabilization.

• Midtown Plaza, a 330,000 square foot 12-story office building, opened and reached 95% leased with anchor tenants Allscripts & Suntrust moved in.

• Marriott’s new and exciting upscale brand, AC Hotel, opened adding 135 hotel rooms along with one of the most popular venues in town, Level 7.

• Retail merchants Kilwin’s, Orange Theory, Copper Penny, Southern Tide, Marta’s, CycleBar, Arrow Haircuts, and Alladin’s opened with bartaco, Viva Chicken, Happy + Hale, Co, Lou Lou Boutique, South Moon Under & Midtown Yoga coming soon.

• Over 2,500 new parking spaces were added to North Hills throughout 2016 and 2017.

• Zoning approval by the City of Raleigh in which North Hills will expand an additional 30 acres adding more residents and workers along with outdoor parks, greenways, community fitness areas, and art.

In 2018, the largest project yet at North Hills will break ground with an additional 300,000 square feet of office space, 200 hotel rooms, 250 high rise residences and 1000 parking spaces. In the expanded area of the North Hill Park District, 330 residences will be added with plans finalized for new park and fitness space near additional offices. And Midtown Park 2.0 will be unveiled allowing this centerpiece to the Park District to experience numerous quality improvements.

Clearly North Hills is continuing to transform with great urban planning that’s focused on anticipating instead of reacting. It is a place that is positioning itself to accommodate the needs of tomorrow. And once again, this year brought exciting changes throughout the urban footprint of North Hills in all three districts with the addition of these new merchants, residents, events and workers.

As we often reflect upon the growing “skyline” of North Hills and also observe the strong economic activity of our region, we remain thankful for the support and confidence of those that live, work, and visit North Hills. The energy and vibrancy of our community is truly strong with people of all ages and stages of life eating, shopping, working, living and playing throughout North Hills. It is with tremendous gratitude that we strongly affirm the outlook for North Hills is as robust as ever.

• North Hills’ first high-rise residential project, Park Central, opened with almost 300 new residents living within the 16-story tower along Midtown Park.

• The opening of The Cardinal at North Hills (Continuing Care Retirement Community) bringing a wonderful mix of generations to North Hills.

Mike Smith, President Kane Realty Corporation

Table of Contents Retail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Leasing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Under Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Midtown Plaza . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Bank of America Tower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 The Offices at North Hills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 CAPTRUST Tower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Towers of North Hills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Hotels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

AC Hotel North Hills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Hyatt House Raleigh North Hills Hotel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Renaissance Raleigh North Hills Hotel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

The Alexan Apartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Park & Market Apartments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Midtown Green North Hills Apartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Allister North Hills Apartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Dartmouth North Hills Apartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Cardinal at North Hills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Park Central North Hills Apartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 18 19 19 20 20 22

Expansion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Tower 5 at North Hills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Gaddy Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Attractions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Art at North Hills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Parks at North Hills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Midtown Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Sponsors and Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Midtown. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Accolades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Raleigh Accolades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 John Kane. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Retail

Leasing - Recent Openings North Hills has 99% occupancy.

Kilwin’s • 1,400 SF Old-fashioned confectionery chain selling chocolates, ice cream, handmade sweets and gift baskets.

Aladdin’s Eatery • 1,916 SF Full-service restaurant specializing in healthy Lebanese-American cuisine.

CycleBar • 2,962 SF Indoor cycling studio.

StyleFinder • 1,964 SF A fashion boutique featuring upscale casual women’s apparel.

Arrow Haircuts • 1,460 SF Locally owned barbershop.

Orangetheory Fitness • 3,182 SF Premium fitness studio.

R

LASSITER DISTRICT

AN

LA

MIL

ER SSI T

L RO

AD

M PA

ST FIR ZENS I CIT ANK B ER W TO

LIC OD

RTM DA

OU

TH

AD RO

RIV T

G

TE STA

GE RA

ET

GS KIN WL BO

GA

PA M RK & APA ARKE RTM T ENT S

E AG AR

GA

E OV

LE IRC

Y

EC

IRC

GAR

LE

ST RU PT ER CA TOW

NS

ER

MI

NE

LA 432 SS 1 ITE R

EC

EN

LL

RO

OK

AD

RLO

TH

JCP

MO

SAIN

TA

LBA

K ST

REE

NS

DRIV

E

MID

TOW N

GRE

EN

T

GE RA

THE EET STR

L

CEN

TRA

L

DIN

PAR K

CAR

)

AL ST

REE

LE

T

EL

EC

EV

DINA

RK

T

EET

N PA

CAR

KET

STR

TOW

MAR

ZA

IRC

GE

RL

TH

PARK DISTRICT

IT 8A 8B

PARKING GARAGE

GARA GE GARAGE

5

CH

UR

CH GARAGE

EX EXIT

PAR GAR KING AGE

D OA

MAIN DISTRICT

MID T PLA OWN ZA

WE

PLA

MID

SR

THE CIRCLE

TA R

T

RK

GARAGE

RA GE

( LO

O

EE

FO

RA GE

GA

FR

TR

SIX

GA

R RA ENA LE ISS IG A H H NC OT E EL

4 MA120 IN

MA

IN

CIN REG EM AL AS 14

S NT

HYA HOU TT SE

TH

ST

RE

LAS

ET

EC

OM

SI T

E

AGE

PAR

GA

RAG

GARAGE

EE

RA GE

TR

LE

LA 4350 SS ITE R

K

RS

GA

E STR

R PA

ITE

NK BA F A O IC ER R M A OWE T

G

SS

IRC

EL OT

LA

EC

H AC

TH

GE RA

DO

H E TH OUT M RT DA

E GA

GARA GE

ET

LEX

EA

TH

TRE

HAR TEE RIS TER

NS

TH

WA

GARA GE

RO

Retail Under Construction

CO • 3,680 SF Vietnamese restaurant.

Happy + Hale • 2,234 SF Restaurant specializing in fresh juice, salads and smoothies.

Midtown Yoga • 2,261 SF Yoga studio.

Lou Lou Boutique • 1,841 SF Lou Lou boutique is a retailer of quality, affordable women’s fashion accessories, jewelry, scarves, bags, & more!

South Moon Under • 3,032 SF A leading fashion e-commerce and brick and mortar retailer, offering women’s and men’s clothing, swimwear, accessories and gifts.

6

Vita Vite • 6,000 SF A welcoming, comfortable wine bar complemented by craft beers, small plates, Southern art and local goods for purchase.

Bartaco • 4,480 SF A hip eatery specializing in tacos and rice bowls.

Viva Chicken • 3,674 SF A restaurant specializing in Peruvian rotisserie chicken.

Suntrust Bank • 3,825 SF Wholesale and consumer banking.

7

LASSITER DISTRICT

AN

LA

MIL

ER SSI T

L RO

AD

M PA

ST FIR ZENS I CIT ANK B ER W TO

LIC OD RIV

RT DA

MO

UTH

AD RO

EE

T

GA

TE STA

S

GE RA

ET TRE

GS KIN WL BO

GA

PA M RK & APA ARKE RTM T ENT S

GE RA

GA

E OV

LE IRC

Y

EC

IRC

GAR

LE

ST RU PT ER CA TOW

NS

ER

MI

NE

LA 432 SS 1 ITE R

EC

EN

LL

RO

OK

AD

RLO

TH

JCP

MO

SAIN

TA

LBA

K ST

REE

NS

DRIV

E

MID

TOW N

GRE

EN

T

GE RA

THE EET STR

CEN

AL ST

PAR K

TRA

L

DIN

)

CAR

EC

T

EL

TH

EV

L

REE

LE IRC

GE

RL

DINA

T

EET

CAR

RK

KET

STR

N PA

MAR

ZA

TOW

SR

PARK DISTRICT

IT 8A 8B

PARKING GARAGE

GARA GE GARAGE

8

CH

UR

CH GARAGE

EX EXIT

PAR GAR KING AGE

MAIN DISTRICT

MID T PLA OWN ZA

D OA

THE CIRCLE

WE

PLA

MID

RK

GARAGE

RA GE

TA R

ET

FO

RA GE

GA

( LO

F

N RO

RE

SIX

GA

R RA ENA LE ISS IG A H H NC OT E EL

4 MA120 IN

MA

IN

CIN REG EM AL AS 14

T TS

HYA HOU TT SE

TH

ST

RE

LAS

ET

EC

OM

SI T

E

AGE

PAR

GA

RAG

GARAGE

TR

LE

LA 4350 SS ITE R RA GE

RS

GA

K

ITE

NK BA F A O IC ER R AM OWE T

R PA

SS

IRC

G

LA

EC

TEL HO AC

TH

E AG

DO

H E TH OUT M RT DA

E R GA

GARA GE

ET

LEX

EA

TH

TRE

HAR TEE RIS TER

NS

TH

WA

GARA GE

RO

Office

Midtown Plaza 95% leased • Opened March 2017 • 309,260 SF of signed leases • 12-story, 330,000 SF, Class A office tower • Two, 7-level parking decks • Designed by LS3P architecture firm

Bank of America Tower 100% leased • New Leases: -- Benjamin Goetz Coaching – 1,739 SF • Expansions: -- Bank of America – 2,039 SF

10

The Offices at North Hills

Captrust Tower

Bank of America Tower

Captrust Tower

Midtown Plaza

The Offices at North Hills

CAPTRUST Tower

93% leased

100% leased

• New Leases -- Diveplane Corporation – 1,103 SF

11

Towers of North Hills Now pre-leasing The Towers of North Hills are currently in the design phase. This spectacular mixed-use project will truly be one-of-a-kind in the Triangle market. The 32-story residential tower will feature and 10 levels of boutique hotel rooms and 22 levels of luxury apartments. The 20-story LEED Certified office tower will feature 12 floors of Class A office space on top of 8 levels of integrated parking. This project will also include street-level retail as well as terrace level with a ballroom, outdoor areas, and many other amenities.

The building offers a prominent location along Six Forks Road and I-440.

32-story residential tower totaling 575,000 SF designed by SRSSA (Smallwoods, Reynolds, Stewart, Stewart Architecture) • 185 boutique hotel rooms • 308 luxury apartments • Grand porte-cochere entry, function level on the 7th floor, and rooftop residential pool with club room

12

20-story LEED Certified Class A office tower and integrated parking totaling 650,000 SF designed by Duda Paine

Located at the entrance of North Hills • Corner of Six Forks Road & Front at North Hills St

• 350,000 rentable square feet of Class A office

• Tallest building on I-440

• Conference center, outdoor terrace, and locker rooms

• Expansive glass design provides premier views of Raleigh

• Entry into parking deck through grand porte-cochere • 8,000 SF of street-level retail space

13

Hotels

14

AC Hotel Raleigh North Carolina’s first AC Hotel opened in North Hills in March with 135 rooms between Bank of America Tower and The Dartmouth Apartments. A destination for the art lover and sophisticated traveler, AC Hotel has a sleek European-inspired aesthetic and a rooftop bar.

Founded in 1998, with nearly 108 hotels located primarily in Europe, the international hotel brand is bringing more than 101 locations to the U.S. and Latin America.

15

Hyatt House Raleigh North Hills Hotel • David Press, AGM of HYATT house - 2016 Lodging Employee of the Year by NCRLA (North Carolina Restaurant Lodging Association) • 2015 HYATT Hotel of the Year • 2016 TripAdvisor GreenLeader • 2016 TripAdvisor Certificate of Excellence

Hyatt HouseRaleigh North Hills Hotel

Renaissance Raleigh North Hills Hotel Renovations completed end of May 2017, which included: guest room soft goods renovation, transformation of the lobby, lounge and restaurant, an expansion of the Inner Terrace to accommodate larger meal space for corporate meetings and additional reception/social event space. Additionally the Renaissance Ballroom and conference rooms have been updated to convey the Hotel’s new story that artfully taps into the newly desired guests’ wish to connect, engage, and insert themselves comfortably into their surroundings. This redesigned hotel brings the outside/in and work/play concepts into one beautifully chic, highly functional, truly Raleigh, experience which mirrors its ideal location centered within Midtown. Guests will discover this new contrast brought to life through the power of art and the abundant beauty of the outdoors.

Renaissance Raleigh North Hills Hotel

• Discover 41Hundred – the new concept located within the Hotel which offers simply sophisticated, international cuisine crafted by Executive Chef Dean Thompson and team.

• 2017 AAA Four Diamond Award Winner in Hotels • Host to National Hockey League competitors of Carolina Hurricanes

Renaissance Raleigh North Hills Hotel

Renaissance Raleigh North Hills Hotel

41Hundred

ROW

AN

STR

41Hundred

EE T

T HE

XA ALE

AL T O T NE WI

N

I L ASS

TER

MIL L

ROAD

PA M L IC OD RIV E

ON

H YA HOU T T SE

CHU

TOW

)

PL A

RES 8B

17 EXI

T8

A

DARY

NTR

T.

TIAL

S T.

EXIT

8A

AL

T C A R HE DIN AL GAR

DEN

S T.

RE

IT

BOUN

IVE

TU

EX

K CE

ZA S

IDE N

S DR

Y ’S M ID T O PA R W N K

PA R

ER 4

LBAN

G

FR

EL

S T. A

FU

T I- 44 0 W ES

CIN R E G EM AL AS 14

.

MID T GR E OW N EN

.

MA

TH ( L O TA W E RGE RL T EV EL

T TS

HO T

K ST

K IN

PA R

PA R

NS

ST TRU CAP OWER T

EC

OM

MO

ST IN MA

AD

EY

.

NN

RO

IL L RO AD

PA R M K& A PA A R K E T RTM ENT S

KS

LA SS IT ER M

S T.

F OR

PE

R CO FITN R A ENA NN E S L E ISS E S IGH A N G CT HO CE Y M ION TE L

440

TE

CAR DIN AL S MID T. TOW N PL A ZA

T.

S TA

.

RS

T HE U T H O TM

DAR

AC L E HO T

T ST

ITE

RD

SIX

JC

SS

K BAN OF C A ERI R M A WE TO

UTH

HAR T EE R IS TER

LA

T MO

RKE

DAR

PA RK ING C

EX

IT

8B

R HU

CH

STR

EE T

Residential The Alexan North Hills Apartments

Park & Market North Hills Apartments

The Alexan, located in the Lassiter District, is North Hills’ first high-end apartment community.

Residents enjoy a 24-hour fitness center with pool views and cold towel and water station, Salt water pool with multi-level sun deck and luxury apartment home upgrades like hardwood floors, granite countertops, and large walkin closets. The Alexan is within easy walking distance to nearby shopping, dining, and entertainment amenities.

The studio, one, and two bedroom apartments at Park and Market are located in the Park District, directly above a variety of retail and dining options, including a 24-hour grocery store. Last year, they began significant upgrades to their apartments as they became available. Upgrades include a Nest thermostat, hardwood flooring throughout, upgraded ceiling fan, tile backsplash in kitchen and frames around mirrors in bathroom with upgraded light fixtures. The heated saltwater swimming pool and covered parking make Park and Market a convenient and upscale living option in North Hills.

Midtown Green North Hills Apartments

Park & Market North Hills Apartments

Allister North Hills Apartments

The Alexan

18

Midtown Green North Hills Apartments

Allister North Hills Apartments

Midtown Green offers studio, one and two bedroom apartment homes with views of beautiful Midtown Park and surrounding neighborhoods. Luxury apartments include high ceilings (14’+ in penthouse residences), granite countertops, and plank flooring throughout. Residents of Midtown Green also enjoy a variety of community amenities, including: a putting green, second-story mezzanine deck with fireplace and outdoor TV, and saltwater pool with outdoor kitchen.

Allister North Hills continues to boast consistent stabilization amongst their studio, one, two, and three bedroom apartment homes. The apartments are well appointed with two distinct interior finish options, granite throughout, generous closet space, and balconies or extended sun rooms in every floor plan style.

Updates and additions to amenity spaces were complete in 2017. Highlights include: • Upgraded fitness center with new flooring and paint and updated equipment including a rowing machine and stair climber – New! • Community fire pit – New! • Life-size chess set – New! • Enhanced all outdoor furniture – New!

Midtown Green North Hills Apartments

Allister North HIlls Apartments

Park & Market North Hills Apartments

19

The Dartmouth

The Cardinal

The Dartmouth, located in the Park District, is a 171-unit community consisting of five residential levels atop a two-level parking deck.

A full-service rental Continuing Care Retirement Community (CCRC) on six acres in the Park District at North Hills offering multiple lifestyle choices designed to promote independence, dignity and an engaged way of life opened in April.

The modern design of the Dartmouth’s studio, one, two, and three bedroom homes includes Nest thermostats, hardwood plank flooring throughout, granite counters and built-in closets. Ample community amenities include a fully-equipped fitness and yoga studio, outdoor courtyard with saline pool, TV lounge, grills and firepit, with private gated parking.

• Mix of independent living, assisted living, memory care and skilled nursing care • Offering one-, two- and three-bedroom floor plans • Multiple dining venues • Healthy chef-prepared dining choices • Bar and lounge area • Wellness and fitness center • Spa and indoor pool • Social and recreational programs The 60 private residences in healthcare or Pines at The Cardinal, officially opened June 2017 and all 15 of the skilled nursing private residences are Medicare certified.

The Cardinal at North Hills Independent Living Residences

The Dartmouth

The Dartmouth Fitness Center

The Dartmouth Swimming Pool

20

The Cardinal at North Hills

The Cardinal at North Hills

Club Room at The Dartmouth

Mural & Crossfit Station at The Dartmouth

Courtyard at The Cardinal

21

Park Central Now Open Midtown’s most advanced mixed-use project and North Hills’ newest apartment community, Park Central, is now open! Located in the Park District and banked by Midtown Park, the 286 residential apartment homes have the highest market rents on the campus and in the Raleigh market. Complimented by 36,000 SF of retail space, residents are just steps away from Raleigh’s most sought after businesses including Vita Vite, Kilwin’s, Orangetheory Fitness, CycleBar, Midtown Yoga and Arrow Haircuts.

Residents enjoy the richest in amenities both inside their home and within the community.

Park Central’s incomparable community amenities include: • Dedicated Full-Time Concierge • Sky Deck with Saltwater Pool overlooking Downtown Raleigh • Three Courtyards with Turf Lawn, TVs, Grills, Fire Pits and Dining Areas • Two Clubrooms with Billiards, Smart TVs, Poker and Pool Tables • Fitness Center featuring Cardio, CrossFit, Strength Equipment and a Rowing Room

Park Central is beautifully designed with condominium-level interior finishes including:

• Eighth Floor Sauna

• Keyless Entry

• Work-From-Home Spaces

• Nest Thermostat

• Two Conference Rooms with Videoconferencing Capabilities

• Plank Flooring

• Gourmet Coffee Bar

• High-end kitchens with Quartz Countertops, Glass Backsplash, Undercounter Wine Coolers, Stainless Steel Energy Star Appliances and Upgraded Cabinets

• Concierge services with indoor package delivery lockers • Integrated, Covered Parking with Four Elevators

• 8-foot entry doors and 10-foot ceilings

• Professionally Equipped Dog Spa

• Floor-to-ceiling windows with sunshade blinds and views of Midtown Park and Downtown Raleigh

• Bike Center and Bike Share Program

• Glass Balconies

22

Pool Terrace

Fitness Center

Apartment Model

Club Room

Pool Terrace Bar

Apartment Model

23

AN

STR

EE T

T HE

A

AL T O T NE WI

AN LEX

IT L ASS

ER M

IL L R

OAD

L IC OD RIV E S T.

T

H YA HOU T T SE

TOW

)

PL A

RES BOUN

8B

DARY

T C A R HE DIN AL

AL

T.

GAR

TIAL

S T.

EXIT

8A

DEN

S T.

RE

PA RK ING CH

EXI

ALLIST ER NORTH HILLS APARTM ENTS

T8

A

EX

IT

8B

440

24 ST

IT

NTR

TU

EX

K CE

ZA S

IDE N

IVE

Y ’S M ID T O PA R W N K

PA R

ER 4

S DR

G

ON

CHU

LBAN

K IN

FR

EL

S T. A

FU

I- 44

0 W ES T

CIN R E G EM AL AS 14

.

ST

MID T GR E OW N EN

.

MA

( L O TA W E RGE RL T EV EL

HO T

K ST

EA

MO OM TH

EC

PA R

40

NS

.

ST IN MA

ST TRU CAP OWER T

AD

EY

PA R

RO

NN

CAR DIN AL S MID T. TOW N PL A ZA

PA R M K& A PA A R K E T RTM ENT S

KS

PE

R CO FITN R A ENA NN E S L E ISS E S IGH A N G CT HO CE Y M ION TE L

440

TE

I-4

T.

S TA

.

RS

T HE U T H O TM R A D

AC L E HO T

T ST

ITE

RD

F OR

JC

SS

K BAN OF C A ERI AM WER TO

UTH

RKE

LA

T MO

HAR T EE R IS TER

DAR

SIX

IL L RO AD

ROW

PA M

LA SS IT ER M

Residential Locations

C UR

HS

TRE

ET

Expansion

• Parks and shared outdoor open space showcasing the area’s natural appeal

Kane Realty Corporation acquired an additional 33 acres along St. Albans Drive immediately east of Church at North Hills Street. On April 18, 2017, the City Council unanimously approved to amend the original 50-acre North Hill East Masterplan, to include this additional 33 acres. The acquisition and amended zoning allows for additional mixed use development similar to what has been built to date.

• Enhancing community connectivity with one mile of new greenways and multi-modal paths • Fitness amenities for active urban lifestyles • Cultivating the creative class with integrated art • Improving roadways and access to Midtown Raleigh while planning for future transit implementation

The vision for the future development focuses on community building with parks, Greenway trails, outdoor fitness offerings and public art exhibitions within the context of an urban environment.

ROW

AN

STR

The Park District at North Hills will grow by an additional 33 acres.

EET

T HE

ALE

AL T O T NE WI

XAN

L ASS

IT E R

M IL L

ROAD

PA M L IC OD R IV E

GAR

T IA L

S T.

E X IT

8A

DEN

L

S T. CH

PAR KIN G

UR

ON T RD .

ID E N

DARY

T.

CH

CH

UR

CH

S T. RES

EXI

T8

A

EX

IT

8B

440

ALLISTER NORTH HILLS APARTMEN TS

HA RD IM

BOUN

8B

T C A R HE D IN A

AL

ID E N

R ES ID

T IA L

FRO

N TA

GE

PA

RD

.

RK

EN TI AL R ES ID

ING OF

FI

CE FI

CE

DE

NT

IA

L

OF

SI

IT

NTR

RE

EX

K CE

ZA S

G

RES

IV E

K IN

PL A

S DR

Y ’S M ID T O PA R W N K

PA R

NOR TH T O W H IL L S ERS

LBAN

PA R

)

CHU

ST

ST

O

H YA HOU T T SE

S T. A

EA

I-4 40 WE

FR

S NT

EL

M ID T GR E OWN EN

.

MA

( L O TA WE RGE RL T EV EL

CIN R E G EM AL AS 14

HO T

T.

K ST

CAR D IN AL S M ID T. TO PL A WN ZA

PA R

40

NS OM

MO

ST

ST TRU CAP OWER T

EC

IN

TH

MA

AD

EY

.

NN

RO

LL RO AD

PA R M K& A PA A R K E T RTM ENT S

KS

LA SS ITE R MI

S T.

F OR

PE

R CO FITN R A ENA NN E S L E ISS E S IGH AN G CT HO CE Y M ION TE L

440

TE

I-4

T.

S TA

.

RS

T HE U T H O TM

DAR

AC L E HO T

HAR T E E R IS TER

ITE

RD

SIX

JC

SS

K BAN OF A E R IC AM WER TO

UTH

T ST

LA

T MO

RKE

DAR

25

EN TI AL

Tower 5 Now pre-leasing Tower 5 is a 300,000-square-foot, 12 story, Class A office building in North Hills. Tower 5 is part of the expansion of North Hills Park District to the east which will feature additional office space, retail space and residential communities.

Tower 5 Plaza Features • Large open greenspaces & natural rock features • Food truck friendly parking • Variety of outdoor seating & eating areas

• Typical office floorplates are approximately 25,000 RSF

• Pavilion for small concerts, shows & presentations

• 20,000 SF of active ground-level retail

• Adjacent to restored tributary of big branch creek

• Private office lobby with direct access to 960-space parking deck

• Direct access to City of Raleigh greenway system • Adjacent to future office tower & planned food hall

• Walking distance from a multitude of restaurants, shops & other amenities • Daily access to North Hills’ GEM vehicle transportation service • On-site property management by Kane Realty

26

Gaddy Residential The Gaddy Residential project will be a mid-rise apartment building located in the highly anticipated, 33-acre expansion of the North Hills Park District. The building will incorporate +/- 325 apartments in a mix of studio, one, two and three bedroom units. Amenities will include the following:

Apartment Amenities:

Community Amenities:

• Designer lighting package

• Rooftop amenity space indoor/outdoor work from home center

• Upgraded, modern plumbing fixtures

• Two custom unit design options available, featuring quartz countertops and plank flooring throughout • Smart-key locking system • Neighborhood and city views

• Smoke-free community

• Indoor/Outdoor two-Story fitness center

The project is expected to break ground in the first quarter of 2018.

• Immediate to Raleigh greenway system • Naturally undulated courtyard with grills, great lawn, firepit and saltwater pool • Expansive clubroom with hospitality kitchen, lounge and game rooms

27

Attractions

Jessie + Katie Mural

28

Art “When artists give form to revelation, their art can advance, deepen and potentially transform the consciousness of their community” – Alex Grey Aurora by Mia Yoon

With a sustained commitment to Public Art, Kane added 37 original works by North Carolina artists at various locations within North Hills in 2017. Details on the artists and individual pieces can be found at NorthHillsArt.com. Notable Installations include:

Aurora • Park Central Inspired by the beauty and movement of the Northern Lights, this mixed-media installation by Raleigh artist Mia Yoon is located on the ceiling of the new Park Central Mews. Over 100’ long and 20’ wide, Aurora is comprised of 6,000 hand-made globes and took more than a year to create and install. It is North Hills’ largest public permanent art installation to date.

AC Hotel • Park District More than 20 original pieces were procured in partnership with ArtSource Fine Art for the new AC Hotel. The permanent art collection, which is open for all visitors to the Hotel to view, includes modern pottery, paintings, photography and mixed media. Artists from all points of North Carolina are represented, including Josh Copas, Thomas Sayre, Gerry Lynch, Ben Knight Sherry O’Neil, Charlotte Foust, Don Mertz and Jeff Chase.

Kelsey Montague Mural

Parking Deck Art Gallery • Main District In partnership with the North Carolina Museum of Art, a parking deck at North Hills received a colorful update as it transformed into an art gallery. The new art installation titled “Teens, Inspired” features 44 original works of art by 27 local teenagers.

Mural Initiative • All Districts Comprised of three distinct districts, North Hills sought to commission three distinct murals, one mural in each district. With the goal of commissioning one local muralist, one international muralist, and one community-comprised mural team, North Hills called artists and the outcome could not be more beautiful!

Scott Nurkin Mural

Parking Deck Art Gallery

• Scott Nurkin Mural • Kelsey Montague Mural • Jessie + Katie Mural 29

Paper Airplanes • Midtown Plaza

The Mark Brown Collection • Midtown Plaza

Asheville artist Grant Penny attributes his Paper Airplanes series to the anticipation he felt as he awaited birth of his daughter. By the time his daughter was born the theme evolved into more of a guiding wish, “May you soar in life… but don’t take it too seriously.” Three of Grant’s Paper Airplanes, “Your Turn”, “This Will Be the One”, and “Singing From the Other Room” are now flying, via 20’ banners, between the Midtown Plaza Parking Decks just off Church at North Hills Street.

You can find six beautiful pieces of artwork by Chapel Hill artist Mark Brown inside the Midtown Plaza lobby.

Taken from his series called October Red, the oilon-panel works were procured in partnership with ArtSource Fine Art. Brown has been an abstract painter for over three decades and describes his work as ‘reductive,’ in the spirit that “Truth that is naked is the most beautiful, and the simpler its expression, the deeper is the impression it makes.”

Sleeper • Bank of America Tower Lincoln Hancock and Mollie Earls’ Sleeper is a dynamic dreamscape along an urban thoroughfare. In the space between thought and expression, we locate pathways towards the actualization of the more ideal worlds we seek. Sleeper conjures ritual and magic; science and logic; systems thinking and design; art and music. This installation is a moment of stillness amidst flux — unperturbed by the synaptic pulse of activity outside, the dreaming figure suggests we all take a moment to look inward and imagine how we might chart our own course towards better realities.

The Art Box is an ongoing collaborative art project with the North Carolina Museum of Art.

Sleeper by Molly Earls & Lincoln Hancock

Paper Airplanes by Grant Penny

From the Mark Brown Collection

Paper Airplanes by Grant Penny

Parks North Hills Dog Park

Midtown Park

The North Hills Dog Park is an amenity for four-legged guests. The fenced-in dog park is 9,500 square feet and located on St. Albans Drive across from The Dartmouth and Park & Market North Hills Apartments.

Complete with waste stations and water bowls, the dog park is open for public use.

Bookended by Tex-Mex restaurant, Chuy’s, the 1.25 acre Midtown Park has become the backdrop for many events in just two short years: family and kids activities, concerts, walks/races, and community programs.

The Overlook Located between CAPTRUST and Bank of America Towers, The Overlook opened in March 2016.

Designed by renowned artist Thomas Sayre, The Overlook is a sculptural gateway that connects North Hills’ Main and Park Districts with a grand stair, meticulous landscaping, and multiple levels for gathering.

The Midtown Raleigh community has fully discovered and embraced this common green space, coupled with the interactive water fountains that surround the performance stage, making the space versatile and inviting for guests of all ages.

North Hills was thrilled to host the Carroll Middle School 8th Grade Awards Assembly on the last day of school, June 9th. Midtown Park served as the backdrop, while 8th graders were celebrated for their wonderful achievements throughout the school year.

Midtown Park is home to several highly successful programs: Wellness Wednesday Fitness Series, Midtown Bluegrass Series, Friday Night Tribute Series, Kickin’ It Country BBQ Cook-Off, National Night Out, and numerous community events.

Available for Naming Rights

Midtown Park

Dog Park

The Overlook

Midtown Park

Sustainability

EV Chargers Twelve (12) charging stations are available in North Hills: (7) level-2 charging stations in the Park District’s Midtown Green Apartments, Bank of America Tower and Midtown Plaza; and (4) level-2 charging stations and (1) DC Fast Charger (charges in 30 minutes) in the Main District.

Tesla Superchargers In October 2017, we added 12 Tesla Superchargers in the Main District near Target. The new Superchargers provide fast, reliable electric charging for Tesla vehicle owners. The Supercharging site will help grow the electric vehicle-charging network for customers, which can increase sustainable transport and provide a convenient destination for drivers to shop.

Energy Usage Energy consumption is decreased with LED lighting and by creating smart and efficient practices across the property with new technologies, such as automation and energy management systems.

Zipcar The carbon footprint continues to be reduced with the addition of Zipcar, a self-service, on-demand car-sharing program. The two vehicles are located in the Park District near the HYATT house Hotel.

Recycling Co-mingled recycling centers and clothing recycling stations are available onsite. Nearby restaurants participate in grease collections, which can then be recycled into biodiesel fuel, as well as food waste diversion and compost programs.

Walkability Walkability is emphasized with the WALK [Midtown] program, which aims to improve pedestrian mobility, safety, and health. The proximity to the Raleigh Greenway, also helps reduce the carbon footprint of the community.

Composting at North Hills In partnership with Food FWD, we have diverted over 40,000 lbs of food waste from the landfill to be turned into compost since August 2017.

By diverting food waste from the landfill, we are reducing greenhouse gas emissions. Food FWD was founded in 2014 by Noah and Sarah Marsh to make food waste diversion easy and economical for the Triangle food industry. Noah got the idea in 2013 while working as a kitchen manager trying to figure out ways to reduce food costs. Now, Food FWD diverts over 500 tons of food waste a year.

Food FWD is also Green-Plus certified (balancing profitability with our impact on the planet and the people in the communities we operate) and in the process of being Living Wage Certified.

Transit & Circulation Our fleet of electric shuttles transports guests throughout North Hills for shopping, dining, and special events. Two bus lines and a vanpool serve the community with stops in North Hills.

Solar Partnering with Baker Renewable Energy, North Hills utilizes rooftop solar panels to generate power for a range of services.

32

Initiatives Online North Hills continues to grow its impressive online presence through a thoughtful focus on fresh content, new relationships with community partners, and new marketing techniques. In 2017, North Hills social media accounts reach an audience of nearly 77,000, while the North Hills website attracted 326,640 users and generated over 1,692,575 page views.

Facebook: 38,908 Total Likes • North Hills: 28K Likes • North Hills Kids: 5,226 Likes • Midtown Farmers’ Market: 3,646 Likes • Midtown Park: 2,218 Likes Twitter: 18,520 Total Followers • @VisitNorthHills: 17.5K Followers • @MidtownFarmers: 1,020 Followers Instagram: 18,834 Total Followers • @VisitNorthHills: 13.9K Followers • @MidtownFarmers: 1,166 Followers

1,692,575 Views

• @MidtownEvents: 3,768 Followers Pinterest: 663 Followers With a mission to drive traffic into the doors of retailers and restaurants, followers have substantially increased in the last year. Attention grabbing collages, lists and high frequency of posting will grow engagement in this female dominated platform.

67,023 Plays 1,483,445 Views

North Hills YouTube: 67,023 video plays New videos of a variety of content helped to increase the number of views to our YouTube channel.

Continued effort in merchant interviews, product reviews, and chef demos will share the story of North Hills before guests arrive.

38,908 Likes 18,520 Followers

North Hills Google+: 1,483,445 page views With current and relevant content, the North Hills page provides an improved presence in search engines, getting the attention of new guests while they are in the decision-making process and before they arrive to North Hills.

18,834 Followers 663 Followers

33

North Hills Gives Back

Sponsorship & Property Branding

North Hills is proud to support and assist in creating awareness for many Triangle nonprofits.

Midtown Events is responsible for building community and creating memorable experiences through the planning and producing of events in Midtown Raleigh.

In addition to special events, Midtown Events is responsible for the ambiance, artful initiatives and branding throughout North Hills.

Property Branding Opportunities • Banners • LED Display Board • Vinyl wraps • Wallscapes

34

Events

Midtown Beach Music Series

Our Mission – To build community and create memorable experiences at North Hills in Midtown Raleigh.

35

Kickin’ It Country

Midtown Bluegrass Series

Midtown Music Fest

Wellness Wednesdays

Midtown Beach Music Series

2018 Event Calendar Midtown Farmers’ Market (30 weeks)

Midtown Bluegrass Series Spring: May 20, 2018 Fall: September 16, 2018

8am-Noon Every Saturday April 14 - November 3, 2018 Winter Market: Saturdays in the off-season November through April

Kickin’ It Country

Midtown Beach Music Series

June 1, 2018 - Whole Hog Cook-off Begins June 2, 2018 - Cook-Off Judging/Awards and Country Concert Event

6pm-9pm Every Thursday April 19 - August 16, 2018

Sunday FUNday June 10, 2018

Midtown Music Fest May 5, 2018

36

North Hills Kids

North Hills Tree Lighting

Reds, Whites, and Brews

Presenting, supporting and a la carte sponsorships available for all events.

Please contact info@visitnorthhills.com for more information.

Wellness Wednesdays (24 weeks)

National Night Out

Spring Season: 6:30-7:30pm March 28 - June 27,2018 Fall Season: 6:30-7:30pm August 1 - October 3, 2018

Tuesday, August 7, 2018

Friday Night Tributes

NH Kids Open Play in the Commons (8 weeks)

7pm-9pm Every Friday August 24 - October 12, 2018

9am-1pm Every Monday, Wednesday, and Friday Spring: May 14 - June 8, 2018 Fall: August 20 - September 14, 2018

North Hills Tree Lighting Saturday, November 17, 2018

NH Kids in Midtown Park (10 weeks) 10am-11am Every Tuesday June 12 - August 14, 2018

37

Additional Events

Friday Night Tributes

Triangle British Classic Car Show May 20, 2017

Race 13.1 - Midtown Race Series Spring & Fall 2017

Green Your Drive Event

Sunday Funday

Fall 2017

Children’s Business Fair Fall 2017

LUNGe Forward Race/Walk September 24, 2017

American Cancer Society Walk October 14, 2017

UNC Children’s “Walk for Children’s” November 4, 2017

Midtown Farmers’ Market

Wellness Wednesdays

38

Sponsors & Partners We are grateful for the sponsors and partners that helped make our events and programs possible.

39

Midtown

Since its redevelopment in 2001, North Hills has been the heartbeat of Midtown Raleigh.

40

Midtown Raleigh Alliance

Midtown Raleigh Alliance

Midtown CERT

Midtown CERT

Midtown Raleigh Alliance offered many opportunities to engage with members in 2017— socials, quarterly breakfast briefings, an annual forum, a community fundraiser and a holiday celebration. Members enjoyed exclusive events at The Cardinal at North Hills, AC Hotel at North Hills, Renaissance Raleigh North Hills and Park Central luxury apartments.

Midtown CERT was approved and established in 2015 by the Department of Homeland Security and Federal Emergency Management Association, and listed in the national database. Midtown CERT is one of only two CERT program in the City of Raleigh, one of 13 within the Triangle and 68 in the State of North Carolina.

The Midtown Raleigh Alliance Real Estate Summit provided first-hand information regarding new commercial and residential real estate trends, and quarterly breakfast briefings offered the opportunity to discuss NC’s political forecast and how the Transit Plan will affect Midtown.

CERT (Community Emergency Response Team) is a FEMA and DHS program that prepares citizens and community members for disasters and hazards that may impact their area and trains them in fire safety, light search and rescue, team organization, and disaster medical operations

Midtown Raleigh Alliance also joined other business and elected leaders in the RaleighTogether transit support program, which brings artistic expression to a number of new and existing transit facilities.

In 2006, Kane Public Safety became the first CERT program in a mixed-use development. KRC Risk Manager Herb Ubbens, Public Safety Major Jason Hunt and Chief Robert Batista became CERT program trainers in June 2015 and led the way in creating Midtown CERT. Currently all ground crew members for Midtown Property Services and Kane Realty Corp. have been trained and are active members of the Midtown CERT team. CERT Basic training classes will take place in the Spring, Summer and Fall of 2018.

The next topic of interest for the Midtown Raleigh Alliance includes a Transportation Forum featuring North Carolina Transportation Secretary Nick Tennyson to apprise members and community leaders about statewide policy changes and programming initiatives that affect our Triangle region.

41

Why Raleigh?

Accolades

We are fortunate to be in the Raleigh market.

Raleigh’s market continues its momentum through the diversity of high-paying jobs from the biotech, medical, pharmaceutical industries and growth of the professional service sector. Our city and region continues to garner numerous accolades from national organizations.

1

#

1

3

#

#

2

#

10 Best Cities for Startups

Best Big Cities in the Southeast

Sportiest Cities in America

Most Educated City in the Country

2017

2016

2017

2017

4

#

3

3

#

#

5

#

25 Best Cities for Jobs

Best Midsize Metros for Job Seekers

Best Cities for Young Families

10 Most Hospitable U.S. Cities

2017

2016

2016

2016

4

#

3

7

#

#

8

#

100 Best Places to Live in the U.S.

Best Places to Work for Veterans

City Secretly Great for Tech Grads

America's Friendliest Cities

2016

2017

2016

2016

42

John Kane

Kane Realty

Raleigh Hall of Fame

Triangle Business Journal | 2017

In 2017, John Kane was inducted into the Raleigh Hall of Fame. Celebrating the proud history of the Raleigh, the Raleigh Hall of Fame recognizes individuals and non-profit organizations, past and present, who have made significant and lasting contributions to the City of Raleigh.

• Top Office Development - Bank of America Tower • Top Hospitality/Entertainment Development AC Hotel Raleigh North Hills • Top Restaurant Project - The Capital Grille

Tar Heel of the Year On January 1, 2017, the News & Observer awarded John Kane with their top honor, Tar Heel of the Year. John Kane was recognized for his vision and for emerging “as one of the Triangle’s most successful dealmakers, a catalyst for growth and mass transit.”

43