ULI Case Study: North Hills—Raleigh, North Carolina

A staid 1960s mall and its surroundings have been transformed into a $1 billion, 94-acre urban destination—located on two major parcels separated by an arterial street—for one of the fastest-growing metropolitan areas in the United States. At North Hills, a finely balanced mix of uses surrounds parks, plazas, and walkable streets.

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A staid 1960s mall and its surroundings have been transformed into a $1 billion, 94-acre urban destination—located on two major parcels separated by an arterial street—for one of the fastest-growing metropolitan areas in the United States. At North Hills, a finely balanced mix of uses surrounds parks, plazas, and walkable streets. In all, visitors will find 988,500 square feet of lifestyle and convenience retail, dining, and entertainment uses; 1,056,000 square feet of office space; 920 residential units; and 366 hotel rooms. The arrangement of uses—both vertically and horizontally—allows boutiques and fine dining to coexist at North Hills with parking garages, office space, and large-format retailers. In 1999, local developer Kane Realty began the project by repositioning a modest retail strip and then demolishing the mall and assembling adjacent parcels for redevelopment. In the years since, the project scope has steadily evolved to encompass a broad, long-term vision of a 24-hour, high-rise urban district.

The Site and Context | The Idea and Development Program | Site Assembly | Approvals | Planning and Design | Architecture and Urban Design | Financing | Performance and Impact | Management and Marketing | Observations and Lessons Learned | Project Information

The leadership’s initial vision for the combined districts was one of an active, vibrant, mixed-use environment with a focus on retail but with complementary entertainment, residential, office, and hotel uses. With the addition of the Park District across the street, the North Hills canvas vastly expanded. John Kane recalls, “We knew the area over there was going to get more valuable. We then said, ‘Okay, well, let’s create more.’ ”

Project Information | More Project Information

Development timeline
North Hills north site acquired1999
Lassiter District redevelopment started2001
Original mall site acquiredSpring 2001
Main District site plan approvalFall 2002
Mall demolishedSpring 2003
Main District grand openingFall 2004
Park District acquired2003 - –2007
Park District redevelopment started2007
Park & Market Tower opened2010
Two hotels sold to Abu Dhabi Investment Authority2015

Payton Chung is a director in ULI’s Center for Capital Markets and Real Estate in Washington, D.C.
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