Hue finally gets some residents

It's been nearly two weeks since the failed downtown Raleigh condo project Hue was sold and converted to rental apartments.

The new owner, Mid-America Apartment Communities, said today that 11 people have signed leases and four people have moved in to the building.

Jackie Melnick, a senior vice president with Memphis-based Mid-America, said 65 prospective renters have taken tours of the 208-unit building since it was reopened.

"We had no advertising or any collateral out in the market to tell people that it was going to be an apartment community," she said. "[The early response has] exceeded our expectations."

Mid-America hopes to have Hue fully leased within 12 months, Melnick said.

The company paid $33.6 million for Hue, a lofty price that showed Mid-America believes it can charge a premium for the units and still have it lease up quickly.

The rental rates for Hue range from $995 a month for a 653-square-foot studio to $2,300 for a two-bedroom with 1,337 square feet. Those rates include a parking space in Hue's parking deck.

Hue is currently offering a month and a half free rent on a 12-month lease, Melnick said.

Mid-America worked quickly to get the units ready for renters, a process that included a thorough cleaning of the building and the installation of refrigerators and shades and blinds in all the units.

The new owner has also met with representatives of Campbell Law School, which is located less than a block away and could be a source of tenants.

Hue sat dormant for months while the project's previously owner, CityView, tried unsuccessfully to sell the units as condos.

CityView, which borrowed $36 million to build the condo project, ended up handing it over to the lender without selling a single unit.