#United States #Raleigh #Sumitomo Forestry #Tokyo Tatemono #Fairfield Residential

New Wooden Rental Apartment Project in Raleigh, North Carolina

A transformative development is underway in Raleigh, North Carolina, as Sumitomo Forestry Co., Ltd. (President: Toshiro Mitsuyoshi, headquartered in Chiyoda, Tokyo) and Tokyo Tatemono Co., Ltd. (President: Katsuto Ozawa, headquartered in Chuo, Tokyo) announce plans to develop a five-story wooden rental apartment complex comprising 267 units. This project marks the third collaboration between the two Japanese companies, following successful developments in Washington D.C. and Colorado's Vista Highlands. Partnering with U.S. developer Fairfield Residential Holdings LLC (CEO: Richard Boynton, based in San Diego, California), the project aims to promote wooden construction methods while contributing to a carbon-neutral society. Construction is anticipated to begin in June 2025, with leasing expected to commence around January 2027.

Features of the Development

This new apartment complex will boast a range of community areas, including conveniently accessible parking, an outdoor grilling zone, and a club room complete with kitchen facilities. Residents will also have access to a coworking lounge equipped with meeting rooms, a pet spa, and a dog park. Standing out on the top floor, a sky lounge will offer breathtaking views of downtown Raleigh, providing a luxurious atmosphere while the surrounding greenery creates a tranquil living environment within the heart of the city. The complex predominantly targets young professionals working in nearby areas, featuring a variety of studio and one-bedroom layouts.

The construction will utilize a wooden framing method using 2x4 lumber, which helps to lower building costs compared to reinforced concrete (RC) structures. Traditionally, wooden buildings generate less CO2 emissions during the construction process compared to steel or RC structures, and they store carbon absorbed from the atmosphere within the wood itself. As this development incorporates a significant amount of wooden materials for structural components and interior finishes, it aligns with efforts to realize a carbon-neutral society.

Regional Significance

Located in the state capital of North Carolina, Raleigh is strategically positioned in the East Coast's core. It is close to the Interstate 85, linking it to major cities such as Washington D.C. and Atlanta. Raleigh is also part of the renowned Research Triangle, noted for its strong educational and research institutions, including North Carolina State University, Duke University, and the University of North Carolina at Chapel Hill. With over 300 companies in the region, Raleigh offers a thriving business environment conducive to economic growth and robust job opportunities.

Background of the Partnership

The development is being spearheaded by a special purpose company (SPC) funded by a joint venture formed by Sumitomo Forestry's wholly-owned subsidiary, SFA MF Holdings, and Tokyo Tatemono's wholly-owned subsidiary, Tokyo Tatemono US Ltd., in collaboration with Fairfield Residential. As part of this joint venture, Sumitomo Forestry Asset Management Co., Ltd. (President: Narutaki Kisanuki, headquartered in Chiyoda, Tokyo) will oversee coordination with other participating companies, including Fairfield. This upcoming project marks Sumitomo Forestry's fifth collaboration and Tokyo Tatemono's third with Fairfield.

Since entering the real estate development business in 2018, Sumitomo Forestry has rapidly scaled up, with plans to start construction on 5,344 rental units in 2024, ranking among the top players in the sector. Their goal is to supply over 10,000 rental apartments by 2027. They regard Fairfield as an excellent partner in the U.S. market and aim for further collaboration to boost overall housing projects. Simultaneously, the Tokyo Tatemono Group is enhancing its relationships in the real estate development sector through this joint venture. It also plans to expand overseas business operations in the U.S. alongside other regions, including Australia, Thailand, and China.

Future Directions

The Sumitomo Forestry Group operates globally under its long-term vision titled “Mission TREEING 2030,” which focuses on promoting sustainable forestry management, the manufacturing and distribution of wood materials, residential construction, and biomass power generation. The strategy includes increasing carbon absorption by forests, promoting wooden structures to store carbon long-term, and contributing to the deck of carbon neutrality in society. Sumitomo Forestry is actively pushing for “evolution of global expansion” as part of its long-term vision, accelerating its decarbonization initiatives.

The Tokyo Tatemono Group has also emphasized expanding its overseas business as a key strategy in its mid-term management plan for 2025-2027. Currently, it is developing residential and office facilities across multiple markets, including the United States. The group will continue pursuing collaborations with local partners to acquire business opportunities in the overseas segment.

Project Overview

• - Project Name: 5200 Hillsborough
• - Location: 5200 Hillsborough, Raleigh, NC
• - Planned Rental Floor Area: 21,008m² (226,132 square feet)
• - Total Units (planned): 267
• - Structure/Construction Method: Wooden framing method (with concrete parking)
• - Planned Start of Construction: June 2025
• - Planned Start of Leasing: January 2027
• - Planned Completion: July 2027

About Fairfield Residential

• - Headquarters: San Diego, California
• - CEO: Richard Boynton
• - Employees: 1,480 (as of February 2025)
• - Business Outline: Founded in 1985, Fairfield is a leading multifamily real estate development firm in the U.S. It operates in nine locations nationwide, handling everything from land acquisition to construction and lease management, with a strong track record across 32 states.

About Sumitomo Forestry Asset Management

• - Headquarters: Otemachi, Chiyoda-ku, Tokyo
• - CEO: Narutaki Kisanuki
• - Established: November 2020
• - Business Outline: Consulting and investment advisory services for various investment funds formed by the Sumitomo Forestry group.