Development

Apartment project for sale at Kenilworth and Morehead

1301 E. Morehead: The Dillon, a 379-unit apartment building. Under construction, work is continuing as the property is up for sale.
1301 E. Morehead: The Dillon, a 379-unit apartment building. Under construction, work is continuing as the property is up for sale. ogaines@charlotteobserver.com

The developer of an apartment building under construction in Dilworth has put the property on the market as it seeks to simplify its business and sell non-essential assets.

Forestar, an Austin-based oil, natural gas and real estate development company, is slimming down and shedding many of its properties. During an earnings call last week, the company’s CEO said they’ve hired real estate brokerage HFF to sell the Dillon, a 379-unit apartment building under construction at Kenilworth Avenue and Morehead Street.

“We’re opportunistically exiting our multifamily portfolio,” said Phil Weber during the call. The company is selling other apartment properties in Nashville, Austin and Denver. “Interest is strong and we will provide updates as we execute transactions.”

Construction is still underway at the Dillon site, with trucks and earth-moving equipment grading the site. Forestar spokeswoman Anna Torma couldn’t immediately be reached to provide more details on the state of the Charlotte project.

According to Forestar’s most recent financial filing, the Dillon has a total estimated cost of $81.6 million. Forestar is 100 percent owner of the project. Thus far, the company has incurred about $20 million worth of costs on the Dillon, which has a projected completion target of the first quarter 2018.

Another apartment building is under construction on the opposite corner. Terwilliger Pappas is putting the finishing touches on Solis Dilworth, a 184-unit apartment development that is set to start leasing soon.

Forestar is trying to stabilize it business, which has been struggling. The company last week reported a $213 million loss for 2015, and is also selling oil and gas assets, a Radisson hotel and trying to reduce its expenses by $30 million this year.

Ely Portillo: 704-358-5041, @ESPortillo

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