Development

That big red-dirt hole at Kenilworth and Morehead? Sold for $14.4 million

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 apartment building under construction in Dilworth has been sold for $14.4 million, after the original developer decided to get out of the apartment business.

The Dillon, a 379-unit building under construction at Kenilworth Avenue and Morehead Street, has been on the market since Austin, Texas-based developer Forestar Group announced it was leaving apartment development to focus on its core oil and gas drilling business.

Mecklenburg County property records show a corporation affiliated with Dallas-based Lincoln Property Co. bought the property in a deal that closed last week. Cambridge Swinerton, the general contractor, has already dug a deep foundation for the building, and the base of a tower crane has been installed.

Lincoln Property Co., a real estate firm affiliated with Charlotte-based Lincoln Harris, couldn’t immediately be reached for comment Monday.

Forestar Group paid $5.8 million for the site in 2013. At the time, the 2.7-acre site was occupied by a vacant four-story office building and several houses. Forestar has estimated the total cost of building The Dillon will be almost $82 million.

The stretch of Kenilworth Avenue in Dilworth has seen a major building boom of new apartments in the past several years. Across the street from The Dillon, Solis Dilworth, a new building, recently started leasing apartments. And a block away, Crescent Dilworth, another new apartment building, opened recently.

Charlotte isn’t the only market where Forestar is unloading apartment developments. The company has closed this year 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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