Duke Purchases Several Rental Properties Near Campus

The university intends to turn the properties into owner-occupied residences

Tuesday, February 28, 2006

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Durham, N.C. -- Duke University has purchased several rental properties in neighborhoods close to campus, with the intent of turning them into owner-occupied residences.

Duke paid Trinity Properties $3.7 million for a total of 12 houses and three lots, all of which are located in the Trinity Park, Trinity Heights and Burch Avenue neighborhoods, said John F. Burness, senior vice president for public affairs and government relations. The university plans to make minimal repairs and sell them to any family or single person who will agree to invest in renovations and live in the houses.

“Since the early ’90s, Duke has been helping stabilize neighborhoods near campus by increasing the stock of owner-occupied housing,” Burness said. “This is part of that overall effort. The university has also received complaints over the years about the noise caused by parties in the houses rented by multiple students. This should help decrease that problem.”

Eugene Brown, a member of the Durham City Council and a longtime resident of TrinityPark, said he was delighted with the news of the sale. “This is a win-win for everyone, including Trinity Park, Duke University and Durham,” Brown said. “Our neighborhood will become more residential, Duke will have fewer town-gown problems and the city will increase its tax base when these houses are purchased and renovated by new home owners.” 

Except for one vacant house, all of the houses are currently being rented -- and Duke students lease the majority of them. Allenton Realty is handling the property management responsibilities for Duke and is sending a letter to renters informing them of the change in ownership. Leases through the end of the school year will remain in effect, but no new leases are expected, Burness said. Renewals for next year will be honored with the few renters with lease extensions.

“Fortunately, there is a robust apartment and rental market near the campus that can accommodate students’ rental demand,” Burness said.

The three empty lots are in the Burch Avenue neighborhood near Campus Drive. They will not be developed but instead left as green space to buffer the campus perimeter, which is consistent with University Zone guidelines established with the City of Durham.

The purchase is in keeping with one of the major goals of the Duke-Durham Neighborhood Partnership, Burness said. The partnership was formed in 1996 to bring together residents and the university to help improve the quality of life in 12 neighborhoods near campus and to boost student achievement in seven public schools that serve those neighborhoods. Neighborhood stabilization has been a priority for these neighborhoods.

Duke is involved in several other housing initiatives, all of which have covenants requiring owner-occupancy as a means to stabilize neighborhoods. In 2000, the university sold vacant land adjacent to East Campus for the construction of 40 Trinity Heights houses and townhouses for faculty and staff. Duke sold an additional eight properties in Trinity Heights that have added to the stock of owner-occupied houses. The Trinity Heights projects have added more than $140,000 annually to the property tax rolls.

The City of Durham has the lowest ratio of home ownership of any major North Carolina city. In the area of affordable housing, Self-Help Community Development Corporation, with a $4 million affordable housing loan from Duke, has renovated or built more than 65 homes for first-time, low-income homeowners in Walltown, an historically black neighborhood north of East Campus. Duke also participates in a partnership with Self-Help, the City of Durham, Durham Community Land Trustees, Habitat for Humanity and the Southwest Central Durham Quality of Life consortium. The partnership is building new affordable housing on Pauli Murray Place in the West End and in other locations in Southwest Central Durham neighborhoods.

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 The properties purchased by Duke are at the following addresses: 203 Watts; 508 N. Buchanan; 601 Watts/1102 Monmouth; 610 N. Buchanan; 702 N. Buchanan; 704 N. Buchanan; 708 N. Buchanan; 710 N. Buchanan; 814 Lancaster; 1103/1105 Urban; 1107 Urban; 1111 Urban; 700 Maplewood; 913 Wilkerson and 921½ Wilkerson Ave.