Greater Baton Rouge Business Report: Commercial Properties Sells N.C. Development to Local Investors
Commercial Properties Realty Trust has sold the residential portion of 5401 North—a traditional neighborhood it is developing in Raleigh, N.C.—to Engquist-Level Development, a new entity formed by local businessman and developer John Engquist and local homebuilder Level Construction. The sale price for the 150-acre residential tract was $12.9 million, according to attorney Charles Landry, who assisted in the negotiations of the deal. "This is a much, much bigger development than River Ranch [TND in Lafayette] in a much, much bigger market," says Landry. Commercial Properties, which began developing the 400-acre TND in Raleigh more than six years ago, will continue to develop the retail, office and hospitality portion of 5401 North and will work closely with Engquist-Level in the development of its 1,000 or so homesites. "This isn't just selling off to a third party," Landry says. "This is the same thing John is doing in Zachary, and he fully supports the TND concept. That is why this is going to work so well." Engquist is currently developing the TND Americana in Zachary. Engquist-Level will assemble a coalition of builders, including Level Homes, and will begin construction on the first homes in the summer of 2014. "Our company believes that 5401 North is one of the most comprehensive and extraordinary developments in North Carolina, and we are delighted to be a part of it," Engquist says in a prepared statement. Landry says Commercial Properties decided to sell the residential portion of 5401 North because its expertise is in commercial development. "We are thrilled to have an experienced, quality residential developer like Engquist-Level join us at 5401 North," says Carolyn Martin, CPRT president and CEO. "This will expedite the launch of our project after comprehensive and detailed planning."