Liberty Warehouse Apartments sell for $69.3 million

The Liberty Warehouse Apartments, pictured in May, opened earlier this year.
The Liberty Warehouse Apartments, pictured in May, opened earlier this year.

The Liberty Warehouse Apartments in downtown Durham have been sold for $69.3 million, according to Durham County records.

Chapel Hill-based developer East West Partners, which has overseen the construction of the project, sold the property to DPR Liberty Warehouse LLC, a subsidiary of the Melville, N.Y.-based Duck Pond Realty.

Liberty Warehouse Apartments — which opened earlier this year at 530 Foster St. next to Durham Central Park — is a 246-unit luxury apartment complex constructed from the remnants of a former tobacco auction warehouse. The project also has 24,693 square feet of retail space, which will include a bowling alley.

Rents at Liberty Warehouse range from $1,200 to $2,800 per month for studio, one-bedroom and two-bedroom units.

Liberty Warehouse Apartments sit on property that was once the home of the tobacco auction warehouse Liberty Warehouse. The 1940s-era tobacco warehouse was one of the last remaining outposts of the tobacco industry in Durham.

The original Liberty Warehouse structure collapsed from extensive water damage in 2011 after being neglected for several years. All but the facade of the building on Rigsbee Avenue was demolished in 2014 to make way for the apartment complex.

East West Partners, which is led by Roger Perry, purchased the former tobacco warehouse property from Greenfire Development in 2014 for $3.5 million. In April of 2015, East West Partners secured more than $36 million in financing for the project from Fifth Third Bank, according to county records.

The property had an appraised value of $33.5 million as of January 2016, according to county records.

East West Partners did not immediately return a request for comment. The firm owns a large portfolio of commercial and residential projects across the Triangle, including East 54 in Chapel Hill, Davis Park in Durham and the under-construction Station at East 54 in Chapel Hill.

In March, East West Partners, along with Trammel Crow Residential, sold the Alexan Chapel Hill apartments next to Whole Foods for $72.75 million. Similarly to Liberty Warehouse Apartments, the Alexan apartments were sold shortly after opening.

Zachery Eanes: 919-419-6684, @zeanes