North Carolina Construction News staff writer
Oppidan Investment Co., a Minnesota-based developer, has started construction on its second affordable housing project in Raleigh. This new development, named The Pines at Peach, will be a 119-unit multifamily project dedicated entirely to affordable housing. It marks the company’s first affordable housing initiative in the U.S.
Developer Noah Wagner explained that the project faced several challenges since its inception in 2021 due to fluctuating construction costs and market conditions. Despite these hurdles, the project closed in September, and construction commenced in October. Wagner expressed excitement about the project’s progress and the culmination of years of effort.
The Pines at Peach will feature a mix of one, two, and three-bedroom units. Ten percent of the apartments will be reserved for individuals earning 30% or less of the area median income (AMI), while the remaining 90% will be for those earning 60% or less of AMI. The development will consist of five three-story buildings and will include amenities such as a clubhouse with a fitness center, game room, community room, playground, and picnic area.
The $33.5 million project is slated for completion in the summer of 2025. It has been financed through a combination of low-income housing tax credits from the North Carolina Housing Finance Agency, tax-exempt bonds from the Raleigh Housing Authority, tax credit equity from Aegon, gap financing from the City of Raleigh, and a loan from Redstone Federal Credit Union.
The Pines at Peach will be located on the future bus rapid transit line’s southern corridor, with construction for this transit line expected to begin in 2026. The project benefits from the design expertise of Cline Design, civil engineering by BGE, and property management by Excel Property Management.
This initiative is just the beginning for Oppidan in Raleigh, as they plan to launch two more affordable housing projects in the area. The upcoming projects include Birch and Branch, a 180-unit development in Southeast Raleigh, and another project in northwest Raleigh with 150 units. The company is also working on the Wendell Commerce Center, a mixed-use industrial park in Wendell.
The focus on affordable housing in South Raleigh is gaining momentum, especially with developments like Kane Realty’s Downtown South. However, this area is also seeing numerous high-rise projects and rezonings, suggesting significant changes in the southern gateway to downtown Raleigh in the coming years.