One of the biggest housing developments planned for Chapel Hill in years formally began its construction on Tuesday morning.

South Creek, which will feature more than 800 residences, held a groundbreaking — or, more specifically, a potting — ceremony at the site of its future neighborhood with project leaders and local officials. Instead of the typical putting shovels into the ground, leaders of the master builder Beechwood Organization and the Town of Chapel Hill marked the occasion by potting some ferns relocated from the forest by the North Carolina Native Plant Society with fresh soil.

Eighty acres of that land will be kept as a nature preserve and park on one side of Obie Creek, while 40 acres will be used for a variety of for-sale and for-rent housing units.

Members of the Beechwood Organization, as well as Chapel Hill Mayor Jess Anderson (far left) and Lee Bowman of The Legion Company (second from right) take part in the potting ceremony for South Creek on Tuesday, September 10.

Steven Dubb, the principal and president of Beechwood, described South Creek as the “marquee” ongoing project of his organization and a stake in the ground for their operations in North Carolina. That is in part, he said, because of the Town of Chapel Hill’s cooperation and attention on housing during the approval process.

“A housing shortage is not a unique problem – that problem exists almost everywhere,” Dubb told Chapelboro. “Most municipalities pay it lip service and kind of kick the can, and really let it be other communities’ problems. But Chapel Hill has earnestly said, ‘Hey, we need more housing if we’re going to address affordability issues. If the people who work in Chapel Hill are going to afford to live in Chapel Hill, we’ve got to approve more housing.’ That’s not easy to [recognize.]”

South Creek initially began as a mixed-use residential community for those 55 and older in 2021, with Beechwood buying the land and entitlement from developers who had earned approval for a mixed-use project called Obey Creek – which died after it failed to attract box store retailers as the anchors to its buildings. In review sessions, the town council urged Beechwood to shift its planning to encompass more young professionals and first-time homeowners. The final product approved in June 2023 by the town saw an increase in density and housing types, improved pedestrian infrastructure, and more dedicated affordable units.

On Tuesday, Chapel Hill Mayor Jess Anderson said the project coming to fruition is an example of the town government’s Complete Community strategies at work.

“At its heart,” she said, “Complete Community aims to increase housing and housing types in town, ensure that amenities like neighborhood restaurants and high-quality parks are nearby, and create safe connections to existing neighborhoods. South Creek does all of this, and much, much more. It’s a huge win for Chapel Hill and an amazing model for what Complete Community is all about.”

“We are over the moon,” added Anderson, “that 15 percent of all housing units in South Creek will be designated for affordable homes, and our entire community will be able to enjoy an 80-acre park just across the creek.”

A rendering of the extension of Market Street from South Creek into Southern Village. (Image courtesy of Beechwood Carolinas.)

Unlike its predecessor project, South Creek is anchored by its housing. Around 52,000 square feet of commercial space will complement its residences, which will be roughly 600 condominiums, 100 townhomes and 90 apartments. Beechwood representatives said on Tuesday the market-rate, for-sale units will range from around $300,000 to more than $1 million.

And with its proximity to Southern Village, the developers’ goal is not to create a competitor, but instead a true neighbor. New stoplights, pedestrian infrastructure, and an entrance corridor designed for vibrant foot traffic will help connect South Creek to everything across the highway.

Lee Bowman with The Legion Company is serving as a lead consultant to Beechwood on South Creek. The Chapel Hill resident helped with the progression of the project through the town review and now is handling some of the development details. He said South Creek has no true comparison to existing developments around town but said it will be a combination of features at places like East 54, Glen Lennox and Meadowmont rolled into one neighborhood.

“We want to be complementary to Southern Village,” said Bowman. “I live in this part of the area, and I use all of the shops and restaurants over there. We want to be supplemental to what’s going on there and to complement [it.] So, we’re excited to break ground here and hopefully have some good retail, some good residences here in the next couple of years.”

Site development will progress more this fall in preparation for vertical construction on the first buildings in early 2025. The project will be completed in phases because of its size, said Dubb, with the first units expected to be available in 2026.

“We’re really excited to be starting work on this,” concluded Dubb. “It’s been years in the making, and we’re really proud of what we’re going to bring to Chapel Hill.”

What will happen to the plants repotted on Tuesday and relocated over the summer? According to organizers, the North Carolina Native Plant Society will be replanting them in the Sarah P. Duke Gardens in Durham for further preservation.


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