For years, people have called the northern end of New Hanover County “the last frontier,” because it’s one of the few parts of the county with large tracts of land still waiting for development. That’s changing. Two county decisions from this summer are now moving forward along the Blue Clay Road and Holly Shelter Road corridors near Castle Hayne: a 236-townhome workforce rental community at Blue Clay Road and I-140, and a roughly 300-acre industrial park off Holly Shelter Road. Here’s what’s planned, what the timelines look like, and what it means if you own a home in the area or are thinking about buying one.
Proximity Blue Clay: 236 Workforce Townhomes
On July 13, 2026, the New Hanover County Board of Commissioners unanimously approved a new $4 million Workforce Housing Investment Fund, drawn from the county’s Revenue Stabilization Fund, as WHQR reported on July 14. Half of that money, $2 million, went to Proximity Blue Clay, a 236-unit townhome rental community from Cape Fear Development on about 28 acres along Blue Clay Road, just south of I-140.
The county’s money is a loan, not a grant. According to WECT’s August 5 report, the county holds a note at 5% annual interest, expects about $100,000 a year in interest, and is scheduled to be repaid after 10 years. In exchange, all 236 townhomes will carry rent restrictions for 10 years for households earning roughly 60% to 90% of the area median income. County Manager Chris Coudriet shared projected rents of about $1,311 for a one-bedroom, $2,001 for a two-bedroom, and $2,345 for a three-bedroom, compared with projected market rents of $1,828, $2,339, and $2,795. WECT reported the project is expected to take about 18 months to build and doesn’t rely on federal housing tax credits.
One detail matters for neighbors: the StarNews noted on July 18 that the deal doesn’t change density. The site was already rezoned for multifamily residential use in 2022, and Commissioner Dane Scalise stressed that the loan doesn’t give the developer permission to build more.
Why it took a while
Back in October 2025, Cape Fear Development told WilmingtonBiz it was waiting on CFPUA water and sewer extensions along Blue Clay Road before starting construction. That’s a common story in northern New Hanover: utilities tend to arrive first, and homes and businesses follow.
I-40 Coastal Commerce Park on Holly Shelter Road
At the same July 13 meeting, commissioners approved a roughly $6.6 million contract with Carolina Civilworks for the first phase of infrastructure at the county-backed business park off Holly Shelter Road, and renamed it the I-40 Coastal Commerce Park. As WilmingtonBiz reported on July 14, the approximately 300-acre park is expected to hold more than 2 million square feet of industrial space at full buildout.
Phase 1 includes about 2,750 feet of new park roadway, a water main and fire hydrants, a sewer pump station and sewer lines, and a right-turn lane on Holly Shelter Road, along with drainage and traffic control work. The county engineer estimated about 18 months to finish. No tenants have been publicly announced, so it’s too early to say what kinds of employers will land there.
What This Means for Homeowners and Buyers
- More traffic, eventually. Blue Clay Road, Holly Shelter Road, and the I-140 and I-40 interchanges will likely see more trips as housing and jobs come online. If you’re buying, drive your commute at rush hour before you commit.
- Utilities bring options. Water and sewer extensions often open the door to more development nearby. If you’re looking at land or an older home on well and septic, ask whether public utilities are coming and what connection might cost.
- Jobs close to home. A new industrial park near I-40 could add employment options on the north side of the county, which can support demand for nearby homes over time. Because no tenants are named yet, treat that as a possibility rather than a promise.
- More rental choices. For renters saving toward a purchase, below-market townhome rents on Blue Clay Road could make it easier to live near Castle Hayne and Wilmington while building a down payment.
- Check plans before you buy. The county’s planning department posts rezoning and site plan cases. A quick look tells you what’s approved near any home you’re considering.
Frequently Asked Questions
Are the Proximity Blue Clay townhomes for sale?
No. They’re planned as a rental community, with rent restrictions for 10 years for households in the 60% to 90% of area median income range.
When will the commerce park open?
The Phase 1 infrastructure was estimated to take about 18 months after the contract started. Buildings would come later, once businesses sign on, and none have been announced yet.
Did the county rezone land for these projects this year?
Not for the townhomes. The StarNews reported the Blue Clay site was rezoned for multifamily use in 2022, and this year’s vote was about financing.
Thinking About Buying or Selling in North New Hanover?
Castle Hayne and the Blue Clay corridor are changing fast, and timing matters whether you’re buying land, a new home, or selling a property that’s suddenly closer to new growth. Talk with Aspyre Collective and we’ll walk you through what’s planned nearby and what it could mean for your next move.
