Wood Partners, PGIM Expand Triangle Footprint with Amenity-Rich Multifamily Project

Event summary

  • Wood Partners and PGIM have commenced development of Alta Watkins, a 357-unit multifamily community in Morrisville, North Carolina.
  • Construction is slated to begin this month, with completion expected by the end of 2028.
  • The project represents Wood Partners’ third construction start in the Raleigh-Durham area within the past year.
  • PGIM, with $218 billion in assets under management, is providing capital for the development.

The big picture

This development underscores the continued investor appetite for multifamily assets in the Raleigh-Durham area, driven by population growth and a thriving life sciences ecosystem. PGIM’s involvement, with its substantial $218 billion AUM, signals confidence in the region’s long-term prospects. Wood Partners’ rapid expansion in the area, with three projects underway, suggests a strategic focus on capitalizing on this demand.

What we're watching

Demand Drivers
The project's success hinges on sustained demand from the life sciences sector and related industries in the Triangle region; a slowdown in this sector could impact occupancy and rental rates.
Construction Costs
Given current inflationary pressures and supply chain volatility, the project's profitability will be sensitive to any significant increases in construction costs beyond initial estimates.
Amenity Competition
The extensive amenity package positions Alta Watkins to compete aggressively; however, the long-term viability of these amenities will depend on resident adoption and the emergence of competing offerings in the market.