A high-profile plan to bring 160 units of affordable housing to the edge of Moore Square has stalled out, with Raleigh officials confirming yesterday that the long-discussed downtown project is now on hold.
The city says the development team it picked to transform the city-owned land east of the park has effectively walked away, leaving one of Raleigh's most visible affordable housing efforts in limbo while leaders regroup.
City: Developer Withdrew, Option Expired
According to city officials, LODEN Properties has withdrawn from negotiations on both the Moore Square East and South parcels, and Harmony Housing, the nonprofit tapped to deliver the affordable units, allowed its option to lease the east parcel to expire in November. Julia Milstead, a city spokesperson, told staff that no lease was ever executed and that officials are now assessing next steps, according to WRAL.
What The Plan Included
City documents show the redevelopment focused on two city-owned sites bordering Moore Square. The concept called for a mid-rise, 160-unit affordable building, paired with market-rate development on adjacent parcels to help subsidize the below-market homes. The city’s request for proposals ultimately selected LODEN Properties and Harmony Housing as partners, and staff had projected construction would start in late 2025, per the City of Raleigh.
Financing Had Momentum
Before the deal unraveled, the money side looked like it was lining up. City leaders and housing advocates pointed to key approvals, including a $15.7 million commitment toward the Moore Square apartments and authorization for the Raleigh Housing Authority to issue up to $31.7 million in private-activity bonds to support construction. Those financing steps were reported last fall by North Carolina Construction News and covered in an earlier $31.7 Million Bond For Downtown Moore Square Apartments piece.
Why The Deal Collapsed
Developers had warned that the market backdrop had shifted. Rising interest rates and softer asking rents downtown made a large residential tower harder to finance, and by late 2025 the broader development proposal had quietly "fallen apart," local reporting found. Coverage in INDY traced the timeline and reported that the city was told LODEN had withdrawn and Harmony did not exercise its option before it expired, leaving the affordable component stuck, according to INDY Week.
What's Next For The Sites
The City of Raleigh says it will now take a step back and evaluate options for the East and South parcels. Possibilities include readvertising the east site for new buyers or partners and bringing in a consultant to run a market and design study that would guide how the land is ultimately used. The city’s planning page also notes that negotiations continue on the south site for a boutique hotel and that officials remain "committed to any vision for the combined sites, including an affordable housing component," per the City of Raleigh.
Why This Matters
Wake County faces a large affordable-housing gap, and local estimates put the deficit at roughly 66,000 units. The Moore Square parcels had been pitched as transit-adjacent, high-impact sites that could add homes close to downtown jobs and services. The city’s 2026–2030 Consolidated Plan frames projects like Moore Square as central to Raleigh’s strategy to create and preserve affordable housing over the next five years, according to the City's Consolidated Plan.
