Portsmouth Real Estate Partners, Marcus Partners Acquire 326-Unit Vine North Hills in Raleigh

Portsmouth Real Estate Partners, in partnership with Marcus Partners, announced Oct. 13 the acquisition of Vine North Hills, a 326-unit multifamily community at 500 St. Albans Drive in Raleigh, North Carolina. Newmark arranged the acquisition financing.

The property sits within North Hills, a mixed-use neighborhood in Raleigh. The deal is the first partnership between Portsmouth and Marcus Partners.

Vine North Hills Property Details

Completed in 2020, Vine North Hills offers studio, one-, two- and three-bedroom apartment homes with modern unit finishes, community amenities and structured parking. The property is part of the North Hills Innovation District, a 33-acre district that combines apartments, office space and retail with four acres of outdoor space.

The partnership plans to implement operational enhancements and a targeted capital improvement program. The property has not undergone a prior renovation, having been completed in 2020.

Statements From Portsmouth and Marcus Partners

"Vine North Hills reflects our multifamily strategy: acquiring high-quality, exceptionally well-located assets in high-growth markets with a clear path to adding value," said Bailey Jones, Co-Founder of Portsmouth Real Estate Partners. "Raleigh continues to benefit from strong job and population growth, and with new deliveries slowing after a period of record supply, we see the market entering an early stage of recovery."

Casey Barber, Senior Vice President, Investments at Marcus Partners, said the acquisition marks the firm's third investment in Raleigh and reflects its commitment to pursuing multifamily opportunities across existing communities and new development projects in high-growth Southeast markets. "Vine North Hills fits nicely into our portfolio as a high-quality multifamily asset acquired at an attractive basis with room to create value and we are looking forward to doing that alongside our new partner, Portsmouth," Barber said.

Raleigh Multifamily Market Context

Raleigh's apartment market is absorbing a large supply wave as new deliveries slow. Roughly 26,000 units were completed across Raleigh-Durham during 2024 and 2025, while about 1,300 units delivered in early 2026. Deliveries in 2026 are expected to fall more than 60% below 2025 levels.

Northmarq reported approximately 2,600 units of net absorption in the second quarter of 2026, more than twice the number of deliveries, and said every Raleigh submarket recorded lower vacancy over the preceding year.

Market measurements vary by provider. Lee & Associates reported 9.4% vacancy, $1,575 average asking rent per unit and a 5.3% market cap rate in the second quarter of 2026. SVN Raleigh reported 8.7% vacancy, $1,580 average market rent, 0.3% annual rent growth, 7,873 units of 12-month absorption and a 5.3% cap rate. Raleigh has recorded higher rents and tighter vacancy than Durham within the metro.

About the Buyers

Portsmouth Real Estate Partners is a real estate investment and development firm with operating capabilities across the residential and industrial sectors. Founded in 2025 by Bailey Jones and Patrick Keeley, Jr., the firm focuses on a small number of markets and has a growing portfolio in North Carolina and Virginia.

Marcus Partners is a vertically integrated real estate firm specializing in investment, management and development, with a focus on value-add strategies across industrial, multifamily and other property types. The firm and its affiliates own, control, operate or are developing more than 7 million square feet of real estate and more than 4,100 multifamily units. Marcus Partners is headquartered in Boston, with regional offices in Metro New York, the Mid-Atlantic and Atlanta.

Outlook

The acquisition gives Portsmouth Real Estate Partners and Marcus Partners ownership of a 2020-vintage asset in North Hills as Raleigh's supply pipeline narrows and absorption continues. The partnership's stated plan centers on operational enhancements and targeted capital improvements rather than a full renovation.

Sources

• Marcus Partners: Portsmouth Real Estate Partners and Marcus Partners Acquire Vine North Hills in Raleigh