Durham Breaking Ground on New Lofts at Southside Phases

Durham city officials, developers, and community leaders will gather on Oct. 23 to mark the groundbreaking of Phases III and IV of the Lofts at Southside, a project aimed at adding 100 affordable housing units to the Southside neighborhood. The event, organized by the City of Durham and development partner McCormack Baron Salazar, Inc., is scheduled to take place from 9 to 11 a.m. at 703 South Roxboro Street.

The additional housing units are part of a broader effort to revitalize the Southside community, an area historically characterized by disinvestment and low rates of homeownership. The two new phases will target residents earning 60% or less of the area median income, which amounts to $44,520 for an individual or $63,540 for a family of four.

Event Speakers and Participants

Several key figures are expected to speak at the event, including:

• Leonardo Williams, Mayor of Durham.
• Reginald J. Johnson, Durham’s Community Development Director.
• Valerie P. Foushee, U.S. Congresswoman for North Carolina’s 4th District.
• Nida Allam, Durham County Board of Commissioners Chair.
• Richard Thomason, Acting Director, HUD Greensboro Field Office.
• Devin O’Connor, Senior Advisor for the American Rescue Plan Act Implementation.
• Vincent Bennett, President of McCormack Baron Salazar, Inc.
• Jasmine Johnson, Assistant Vice President of U.S. Bank Community Development Corporation.
• Adam Abram, Board Chair of the North Carolina Housing Finance Agency.
• Reverend Dr. Jonathan C. Augustine, St. Joseph AME Church.
• Oreta Byas, a resident of the Lofts at Southside.

The speakers are expected to highlight the importance of affordable housing, the collaboration between local and federal stakeholders, and the long-term goals of the project.

Background on the Lofts at Southside Project

Phases III and IV of the Lofts at Southside are part of a larger redevelopment plan that has been underway for over a decade. The goal is to replace vacant lots and underutilized properties in the Southside neighborhood with affordable housing, market-rate apartments, and other amenities. This mixed-income housing model has been financed through a combination of local and federal funds, including tax credits and money from the American Rescue Plan Act (ARPA).

Once Phases III and IV are completed, the total number of units in the Lofts at Southside will rise to 317, with 238 of those being affordable housing units. Construction is expected to be completed by April 2026.

The earlier phases of the project saw the construction of 132 units in 2014, of which 80 were designated as affordable housing. Another 85 units were added in 2016 during Phase II. The apartments range from garden-style homes to townhouses and live-work spaces, with a mix of market-rate and affordable units.

Southside’s Historical Context

The Southside neighborhood, located on approximately 125 acres on the southern edge of downtown Durham, was once a high-vacancy area with a low rate of homeownership. In recent years, the city and its partners have invested in revitalizing the area, which included both new housing developments and efforts to improve infrastructure. Despite these efforts, Southside remains an area with significant socioeconomic challenges, and critics have pointed to ongoing concerns about displacement and gentrification.

Proponents of the redevelopment argue that projects like the Lofts at Southside provide much-needed affordable housing and contribute to the overall growth and renewal of Durham. However, some community members and advocates have raised concerns that the mixed-income approach, which includes market-rate housing, may not fully address the needs of lower-income residents in the area.

Project Funding and Partners

Phases III and IV of the Lofts at Southside are financed through a combination of public and private funding sources. In addition to tax credits and ARPA funding, the project has received financial support from U.S. Bank and the North Carolina Housing Finance Agency. McCormack Baron Salazar, Inc., the private development partner for the project, has extensive experience in urban redevelopment across the country.

The City of Durham’s Community Development Department, which oversees affordable housing programs and housing assistance initiatives, has played a central role in coordinating the revitalization efforts. The department is also responsible for managing the city’s allocation of funds from the U.S. Department of Housing and Urban Development (HUD) and implementing the Forever Home, Durham program.

Event Logistics

The event will take place at 703 South Roxboro Street, with parking available off Memphis Street and Chestnut Street. St. Joseph Street will be closed to through traffic, and only elected officials and media will have access to parking on that street.

With the start of Phases III and IV, the Lofts at Southside will move closer to completion, but questions about the long-term effects of the redevelopment on the community remain. The project is one of several initiatives in Durham aimed at addressing the city’s affordable housing shortage, though balancing economic development with maintaining affordability for long-time residents continues to be a challenge.

Looking Ahead

As construction progresses, city officials, developers, and community advocates will continue to monitor the impact of the Lofts at Southside on the surrounding neighborhood. The project’s mixed-income model has been touted as a way to integrate affordable housing with market-rate units, but its success in maintaining affordability and preventing displacement will be closely watched as Durham’s housing market remains competitive.