Hines JV Tops Out Research Triangle Project

Fenton. Image courtesy of Hines

One of the largest mixed-use projects of its kind in the works today is closer to realization, now that Hines and Columbia Development have topped out their 69-acre undertaking in North Carolina’s Research Triangle.

READ ALSO: Urban Catalyst Lands Financing for Silicon Valley Makeover

Hines and Columbia recently joined stakeholders, community members and future tenants to the accomplishment, which comes less than a year after the joint venture partners boldly broke ground on the 2.5 million-square-foot project in the midst of the pandemic. Called Fenton, the new mixed-use destination is rising in Cary, N.C.

“We believe that Fenton is the right project at the right time in the right market,” Paul Zarian, a director with Hines, told Commercial Property Executive. “Cary is located squarely in the center of the Raleigh-Durham area, which is witnessing tremendous in-migration from employers and employees alike due to the area’s universities and deep talent pool, quality of life, already-strong tech presence and low cost of living. The past nine months alone have seen commitments from Apple, Google and Epic Games to build major office campuses in the region, the latter of which will be across the street from Fenton.”

Fenton. Image courtesy of Hines

Designed by Nelson Worldwide, Fenton will stand at the intersection of Interstate 40 and Cary Towne Blvd. The mixed-use district’s first phase, which is being financed with a $199.2 million construction loan, will feature 200,000 square feet of office space, a 175-key boutique hotel and a 357-unit luxury apartment community. The initial segment will also offer 345,000 square feet of retail offerings, including shops, restaurants and various eateries, as well as entertainment space.

“Fenton introduces walkability into a suburban market with excellent demographics, and the differentiated environment it provides was designed to appeal to our customers across retail, office and hospitality segments,” Zarian added.

Leasing activity is alive and well at Fenton

There is buzz for the office segment at Fenton. “Interest has been strong and has accelerated throughout the year,” noted Zarian. “As we emerge from COVID, employers are thinking differently about their real estate decisions. One of their main concerns is how to attract their new and existing employees back to the office. Because many employees no longer see physical office space as a necessity, employers realize that in order to recruit and retain talent, they have to offer an environment that reflects where their employees want to spend time.”

Retail isn’t dead in Cary. Eighty-two percent of Fenton’s retail segment has already been leased. News of the topping out follows a series of announcements of retail commitments. Home furnishings chain Ahaus was early to stake a claim, preleasing nearly 18,000 square feet for its store. Paragon Theaters, Williams Sonoma, Pottery Barn and Aveda Lifestyle Salon Spa will also be part of the lineup at Fenton, as will a host of other national chains.

Fenton will also be a breeding ground for culinary talent and local favorites. Chef Scott Crawford’s Crawford Brothers Steakhouse, Steve Palmer’s Italian restaurant Colletta, chef Michael Lee’s M Sushi, chef Ford Fry’s Tex-Mex restaurant Superica will be tenants. Triangle residents Drew Schenck and Kevin Barrett will open their Dram & Draught, a whiskey bar, at the site.

With the final I-beam having been placed at Fenton, façade work and window installation will now get underway. Additionally, Hoar Construction and Samet Corp. general contractors for the commercial and multifamily components of the development, respectively, can begin framing and interior work. If all goes according to plan, Fenton will open April 1, 2022.