King Properties has purchased Kelby Farms, a 277-unit multifamily community in Durham, N.C., from Woodfield Development for $84.7 million, or $305,957 per unit. Marcus & Millichap brokered the transaction, with Senior Associate John Daly representing the buyer.
Construction, which began in October 2021, is expected to be completed at end of next month when the last two of the property’s 10 buildings come online. The eight completed buildings were 70 percent leased at the time of the sale. PNC Bank provided a $35.3 million construction loan for the project in 2001, according to Yardi Matrix data.
The development encompasses 10 buildings with one-, two- and three-bedroom floorplans ranging between 689 and 1,497 square feet. Common-area amenities include a swimming pool, fitness center, business center, clubhouse, rooftop terrace and bicycle storage. The building is equipped with elevators and units feature washers and dryers, digital locks and patios or balconies.
Kelby Farms is located at 1122 Medlin Road in southwest Durham, between Duke University and University of North Carolina at Chapel Hill. The community is near the intersection of Interstate 40 and Route 501, which provide easy access across the Raleigh-Durham metropolitan area. The 10-acre site is within walking distance of Patterson Place shopping plaza and several dining options.
Improving fundamentals
The Raleigh-Durham multifamily market will see long-term growth as a result of increasing tech activity in the region, Daly noted in a statement. According to a recent Yardi Matrix report, developers had 25,140 units under construction as of April, with 91.9 percent concentrated in upscale projects and a transaction volume of $383 million within the first four months of 2023.
