Mid-Year Update 2013
Letter from the President Words like energy, momentum, electric, and active seem most appropriate when reflecting upon the last six months of 2013 at North Hills. New leases continued to be signed. New restaurants opened. New projects started and construction activity remains strong. New patterns for dining and gathering continue to be formed. New people continue to embrace North Hills as their place to go. In the shadow of construction cranes, there is more activity than ever in just about every area of North Hills: more residents living “above everything they need and want,” more office workers making North Hills their firm or corporate address, more guests filling up hotel rooms and restaurant seats, and more shopping bags of North Hills retailers being carried about. As our local economy continues to show tremendous gains, North Hills is an obvious beneficiary. So many of these “newcomers” to the Triangle are relocating from active and vibrant metropolises. These “tier one” metro cities are walkable, accessible and thriving day and night. Raleigh’s newest workers, residents, and guests have come to expect a 24/7 environment, and North Hills fulfills that expectation completely. Active streets, shops, outdoor dining, entertainment, and a multitude of events from the morning until late into the night create a walkable environment for all to enjoy. As a company, there is tremendous activity for Kane Realty in 2013 at North Hills: 700+ new residences under construction, the opening of another 140 hotel rooms, the opening of 24,000 square feet of new restaurant space as well as an additional 15,000 square feet of retail shops and continued demand for office space. Approaching $750 million in private investment over the past 10 years, it’s no wonder that North Hills has become Raleigh’s Midtown. Now being labeled “Raleigh’s Second CBD” (Central Business District), we dream about, and strive to create, a place that is welcoming to all, whether for value purchases or the occasional splurge. Like us, we hope that North Hills has become the place in the Triangle where you take your “out-of-town” friends, find the perfect outfit for an upcoming event, entertain your clients and prospective hires, and meet to work on the next deal. Energy….Momentum….Electric….Active…..the outlook for North Hills is very strong.
Mike Smith President, Kane Realty
North Hills has reached 97% occupancy in all phases in the last year, welcoming 21 new merchants in the last 18 months.
Retail
Cardinal Sales Office Retiring and Continuing Care Community
High Line Boutique
High Line
Clothing store for men and women, with an emphasis on classic and preppy styles
Boutique
The Cowfish Unconventional restaurant serving a robust menu of burgers, sushi, and a fusion called “burgushi’
Ideal Image A national leader in laser hair removal
RETAIL
North Hills has reached 97% occupancy in all phases in the last year, welcoming 21 new merchants in the last 18 months.
Retail
Office Depot A unique location with charging stations, tech experts, BluWire, and easy-to-locate products and services
Apricot Lane Boutique Women’s clothing store featuring affordable and unique, celebrity-inspired fashion
Fink’s Jewelers Fine jeweler selling Rolex, David Yurman, Cartier, and Breitling
A r t SOURCE
FINE ART GALLERY & FRAMING
ArtSource Relocating to a new location in August
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HYATT HOUSE
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Under construction. Opening Fall 2013.
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Saxby’s Coffee 1,219 SF
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Coffee bar offering more than coffee and tea: lattes, cappuccinos, Frolatte’s (frozen blended drinks), smoothies, frozen yogurt, salads, sandwiches and pastries.
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Office
Occupancy has reached 98% with office renewals and expansions, as leasing begins on a new office tower.
CAPTRUST Expanded additional 13,497 SF
ABA Moved into expanded space of 32,459 SF
Insight Global Expanded additional 1,244 SF for a total of 5,956 SF
Regus Executive office suites maintain 100% lease occupancy with waiting list
Office
Occupancy has reached 98% with office renewals and expansions, as leasing begins on a new office tower.
“Kane Realty Corporation to Develop 18-Story Office Tower in Midtown Raleigh” Triangle Business Journal, June 19, 2013
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Groundbreaking planned for late 2013 and opening 2015 Designed by Duda/Paine Architects, leasing by Synergy 10 stories of office space atop seven levels of parking adding 300,000 SF of office space Surrounded by hotels, restaurants, state-of-the-art gyms, and residential offerings
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Hotels RenaissanceRaleigh.com
• 2013 Four Diamond Award Winner in Hotels for AAA • Listed in 2013 Best Hotels in N.C. for U.S. News Travel • On Tuesdays, RLife LIVE brings the best new music, entertainment, food and drinks to each unique Renaissance property around the world
RaleighNorthHills.House.Hyatt.com
• Opening in July • 137 room extended stay hotel • Spacious studio, 1 and two bedroom kitchen suites • 24/7 workout room • Swimming pool • Meeting and training facilities • Outdoor grills
Residential AllisterNorthHills.com
Offering studio, 1, 2, and 3-bedroom options within the 14+ acre property, the amenities at Allister are endless: • Two resort-style swimming pools • Two club rooms • Playground Fully staffed with leasing agents and a maintenance team, 73% of available units at Allister are occupied. By the end of the summer nearly half of the 434-unit project will be complete, including the Manor building.
• Multiple outdoor gathering places • Grills • Conference Room • Fitness Center • Media Center
Residential
• Construction underway for Spring 2014 opening • Structured parking to be completed in October • 214 Mid-rise apartments • Two courtyards, including pool • Two-level clubroom • High-end interiors • Direct access and views of Midtown Park
Midtown Park • A hub of North Hills • Tree-lined 100’ x 350’ park • Site of events & community activities • Iconic design by Thomas Sayre • Performance Stage • Interactive fountains • Opening Fall 2013
Green
Our dynamic growth requires us to employ sustainable principles as we continue to provide urban-style developments.
G.E.M Vehicles
Charging Stations
14-passenger electric vehicle was added to our fleet of electric shuttles, used to transport guests throughout North Hills for shopping, dining, and special events.
North Hills now offers four (4) level-2 charging stations which use 240-volt circuit. Located near REI and Target.
Solar Power
Pedestrian-Friendly
Partnering with Baker Renewable Energy, North Hills uses rooftop solar panels to generate power for a range of services.
Using signs with arrows, QR codes, and estimated walking times for pedestrians, Walk [Midtown] was implemented late June 2013. The program aims to improve pedestrian mobility, safety, and health.
With its sixth season at North Hills, Midtown Events will produce more than 300 individual events in 2013, ranging from new programs to timeless favorites.
April 18 - August 15 This go-to event is on everyone’s social calendar as crowds of over 10,000 flock to the Commons on Thursday nights for this 18-week summer series.
April 13 – October 26 Back and better than ever with over 45 vendors each Saturday, this market has blossomed as one of the premier Farmers’ Markets in town. This growers’-only market provides Midtown residents with fruits, vegetables, meats, cheeses, flowers, baked goods, breads, family programs, fitness events and live music!
April 1 – August 30 This ever popular children’s set-up continues to provide entertainment for the youngest of North Hills patrons. During weekdays, children and parents enjoy arts and crafts, storytime, and of course, playtime with the colorful blocks out on the Commons.
May 19 With over 140 antique classic cars on display, a little bit of history was right in our midst bringing in over 5,000 car enthusiasts from across the region.
With its sixth season at North Hills, Midtown Events will produce more than 300 individual events in 2013, ranging from new programs to timeless favorites.
June 1 – 8 Its’ second year at North Hills, Art Week grew into a property-wide celebration of all things art, which started with a sand sculpture. Other activities include a Photography Competition, Wine & Design Painting, Live Music and Kids Arts & Crafts!
September 6 – October 11
A Feel G o od M usic se r i e s
Join us for the first season of another hit music series at North Hills! A feel good music series highlighting music we all know and love, from old favorites to current hit makers. The block party event appeals to young and old alike as an ideal place to celebrate the weekend to come.
November 23 The annual Tree Lighting Celebration kicks off the season with the lighting of the most magnificent tree in town. Throughout the holiday, guests have visits with Santa and his elves, enjoy festive cheer and the thousands of lights, ribbons, bows, and garland that enhance the seasonal festivities.
2013 Sponsors Include:
North Hills has partnered with the following non-profits to assist in telling their story and broaden their audiences.
HOPE FOR HAITI
Social Media Facebook
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North Hills continues to be a powerhouse in the Triangle, adding hundreds of followers each week. With contests, images, videos and sharing insider information, the NH timeline is not to be missed!
NH Kids’ continues to grow as engagement is driven through parent testimonials, tips, photos, and family-friendly topics and activities.
With a new website and social media strategy in 2012, Midtown Farmers’ has nearly doubled their followers since last season. More frequent posting before, during, and after each market provides constant engagement and traffic for the Market.
Twitter @NorthHillsRAL
Instagram @NorthHills_
Pinterest @NorthHills
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Actively engaging in discussion on Twitter helps to further the NH brand and mission of Kane Realty with photos, videos, and new insider information. Followers have increased by 50% in 12 months.
North Hills is off to a quick start after launching this photo sharing account 5 months ago. Using photos of food, fashion (for human and pets), spas, home decor, and events, NH is driving retail and restaurant traffic.
One year after joining Pinterest, North Hills gained 4x the amount of followers by following trends and engaging with followers.
R aleigh & The Triangle We are fortunate to be in Raleigh. The market fundamentals of Raleigh remain strong through 2013. The Raleigh market has maintained its momentum through the diversity of high-paying jobs from the bio-tech, medical, pharmaceutical industries and growth of the professional service sector. Our city and region is continually highlighted with numerous accolades.
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Urban
There is a strong demand for urbanstyle developments. North Hills sets the standard for the Triangle.
urban developments, allowing more time to enjoy the conveniences that North Hills provides after working hours. Among other accolades in the last year, Forbes has named Raleigh one of the Best Places for Business and Careers, one of the Easiest Cities to Find a Job, and one of the Fastest-Growing American Cities. In the heart of Midtown Raleigh, North Hills’ signature location not only provides easy access to the interstate, but it also provides direct access to the Triangle’s best shopping and dining. This alone makes it a premier location for companies and their employees.
Urban Self Sufficiency With its pedestrian-friendly and sustainable development, North Hills continues to breathe life into Raleigh. This urban lifestyle fulfills the Triangle’s need for a community of convenience with a wealth shopping, dining, and entertainment within numerous city blocks. Two-thirds of Generation Y desires to live in a walkable community that provides products they can afford, according to RCLCO Consumer Research. All demographics are welcome in North Hills, whether for value purchases or occasional splurges. They are willing to pay more for the convenience of being able to walk to work, shop, dine, and entertain. Since 2009, the demand for the urban lifestyle has been increasing, as there are more singleperson households without children than ever. At least half of the 77% that plan to live in urban developments, will rent for a minimum of three years in a place that affords them the convenience of living above or in walking distance of a mixeduse district, like that of North Hills. A third of the Triangle market is looking for mixed-use communities where they can live in close proximity to their workplace, increasing the demand for rental space, a void that North Hills also fills. The time saved on typical household maintenance and driving decreases drastically with those that are in
As more companies relocate their offices and headquarters to North Hills, the win-win scenario increases for everyone. The working environments are more attractive as employers recruit employees from large cities. Within walking distance, employees have access to gyms, a multitude of dining options for meetings, and gathering places after work. The health, happiness, and productivity of employees improve, as well. Worker retention rates increase because of the irresistible environment North Hills has created with all that anyone could ever want or need just steps from the door. This built-in support for mixed-use developments has been the heart of North Hills’ existence and sustainability. This convenient lifestyle entices more companies and more people to make Midtown Raleigh their permanent residence, with shopping, dining, and services in a pedestrianfriendly district, perpetuating North Hills’ success despite the broader economic challenges that we have faced nationally and in traditional centers of commerce. In the next 10 years, the cash flow of urban developments are expected to surpass that of traditional suburban developments, and districts like North Hills will continue to flourish with office, retail, and rental offerings in over 150 acres of city space.