The Backstory

The Twins and Triplets project began with an off-market opportunity presented by one of our top real estate agents. We acquired a corner lot, originally home to a structure ready for demolition, for $100k. The seller, unaware of the potential for small lot development, mistakenly believed the property was a single lot when, in fact, it was five distinct lots. With no need for negotiation, we moved forward with the purchase. A survey confirmed the five lots prior to closing.

Thanks to Durham’s Expanding Housing Choice provisions, what would have otherwise been an unremarkable investment quickly became a valuable opportunity. This initiative not only increased the project’s worth but also paved the way for the creation of affordable housing, transforming a simple lot into a significant asset for the community.

Execution

The project was completed in two phases. Initially, only water and sewer lines were available on one street corner. To begin, a private lender provided the necessary funds to construct two single-family homes, which could be started immediately. These homes were successfully sold in 2023. With the sale of these homes, the remaining three lots were owned free and clear.

Utilizing a second private lender, water and sewer infrastructure were extended down the adjacent street, enabling construction to begin on the remaining three lots. By this time, interest rates had risen, prompting a strategic shift to a build-to-rent approach. The team developed small-lot duplex designs to maximize cash flow, pivoting to this more suitable strategy.

Given the evolving dynamics of East Durham, these duplexes feature standard rental-grade finishes, despite the project's focus on affordable housing. With anticipated rent increases in the neighborhood over the next few years, the upgraded finishes will enable the team to maximize rental income without the need for further improvements.

Property Photos

Financial Results

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