Development

Developer finds a buyer for new apartments at Kenilworth and Morehead

1301 E. Morehead: The Dillon, a 379-unit apartment building. Under construction. Morehead Street is booming from Dilworth to west of uptown. with new office buildings and apartments.
1301 E. Morehead: The Dillon, a 379-unit apartment building. Under construction. Morehead Street is booming from Dilworth to west of uptown. with new office buildings and apartments. ogaines@charlotteobserver.com

An Austin-based developer that’s building a new apartment complex at Kenilworth Avenue and Morehead Street has found a buyer for the project.

Forestar Group said on an earnings call this week that The Dillon, a 379-unit apartment building under construction, is under contract to be sold. The transaction should close later this month.

“We also executed an agreement for the sale of our Dillon site in Charlotte,” said CEO Phil Weber, during a conference call with analysts.

Forestar didn’t disclose the sale price or the buyer, and executives couldn’t immediately be reached Thursday. The company, which also drills for oil and gas, develops single-family lots and manages timber land, said earlier this year that it was putting all of its non-core assets on the market, including multifamily developments. Forestar is seeking to simplify its business and improve financial results.

Crews have been at work on The Dillon for months now, excavating a large area and laying the foundations for the structure. The apartments are across the intersection of Kenilworth and Morehead from Solis Dilworth and up the street from Crescent Dilworth, two new apartment buildings that recently started leasing.

Forestar, which is a 100 percent owner of the Dillon, bought the property in 2013 for $5.8 million. The company has said the Dillon will have an estimated total cost of $81.6 million.

So far this year, Forestar has closed on the sale of a Nashville apartment building for $15 million and an Austin apartment building for $60 million.

Ely Portillo: 704-358-5041, @ESPortillo

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