F7 Development: A New Era of “Meaningful” Real Estate

In Raleigh, North Carolina, F7 Development is reimagining urban spaces with a focus on community. Under the leadership of local entrepreneur James “Monte” Montague, the company has taken a pivot from prioritizing profit to people. His vision is deeply rooted in creating spaces that not only improve well-being but also instill a sense of pride in those who call Raleigh home.

Central to Montague’s strategy is a thoughtful approach to urban development, one that confronts the challenges of gentrification head-on. With a commitment to offering affordable housing solutions, F7 Development aims to safeguard Raleigh's communities, ensuring that the city's evolution benefits all its residents, especially those vulnerable to economic displacement.

Montague’s mission is not just changing the landscape of Raleigh but also setting a precedent for real estate development that prioritizes residents at every turn. Dive deeper into how this vision is coming to life.

F7's Blueprint: Building Beyond Profit

Montague’s journey into real estate started in the mid-90s when he launched his first company. At that time, he admits profit and growth were his initial motivations. However, he quickly faced a hurdle that would prevent him from getting his business off the ground. Montague says he received 18 rejections before he secured the financing he needed for his first shopping center. When he finally got the loan, the developer said it was a big deal.

“It was only $750,000 but in today’s money that’s a couple of millions.”

Not long after this career-defining moment, Montague’s life took an unexpected turn when a health scare prompted him to reevaluate everything. Confronted with mortality, he began a journey of reflection about his life purpose and legacy. It was this vulnerability that planted the seeds of F7, a company that would be rooted in his newfound commitment to serve and uplift the community that raised him rather than exploit it for financial gain.

The name F7 itself is a nod to Montague’s epiphany and subsequent transformation. Drawing from the biblical principle that "Faith without works is dead," he needed to believe is his ability to put his new vision into action.

Montague’s Take on the Challenges of the Housing Market

For Montague, making the numbers work is the biggest challenge. In order to fund his projects, he reinvestments profits from his market-rate housing. A second hurdle is getting the community to understand the mission of his business.

“We have a heart for the community, and we want to make sure that opportunities are created.”

He’s seen firsthand how neighborhoods transform — and not always for the better, expelling the people, the small businesses, and the resources that once made them vibrant and unique.

Inflation adds to the complexity of Montague’s mission to keep housing affordable. The squeeze is particularly tight in Raleigh where median rent has climbed a staggering 53%, over the past decade, while median incomes for Black families have inched up only 12%, according to recent census data.

For Montague, making the numbers work is the biggest challenge. Second is getting the community to understand the mission of his business. “We have a heart for the community, and we want to make sure that opportunities are created.”

Montague’s senior living development in Southeast Raleigh, Elders Peak, underscores his commitment to remedying this issue. He partnered with the city of Raleigh’s Community Development Department and the Community Affordable Housing Equity Corp, a non-profit that manages investment funds for low-income housing tax credit, to build the 48-unit property in 2004. Elders Peak provides affordable housing for residents aged 60 and older, allowing them to age in place.

“Seniors who have been here all of their lives and don’t want to move can’t afford to stay because the tax rates of their homes are so high,” explains Montague. “They can’t afford to leave because they can’t go anywhere where they can buy a home for $70,000 or $100,000 as they did in the ’70s and ’80s.”

Turning the Tide Through “Meaningful Development”

Montague and the F7 team are chasing their vision for a more inclusive Raleigh. They bring along partners who believe in their efforts, like Greystone Affordable Housing, Gilbane Development Company, and Bobbitt. With this support, they dive into each project with a combination of economic and social goals. Beyond keeping rents low, it's about building spaces that enhance the community's fabric rather than dilute it.

To that end, they don't just sign whatever businesses can pay the rent. Instead, they seek those who can meet the neighborhood’s needs and add real value for residents like Montague.

“I was born and raised in the projects of Southgate,” he says. “The same needs that we had when I was a kid, we still have right now.”

F7’s latest venture is Montague Plaza, a shopping center that sits on Rock Quarry Road in Southeast Raleigh, one of the busiest streets in the area — and just two blocks from where Montague grew up. The over 1,500-square-foot space will be home to 14 different businesses that provide much-needed services to Raleigh residents, including restaurants, doctors' offices, a STEM educational center, childcare, and more.

Montague’s Vision for a Reformed Industry

Montague contends that Black-owned companies like his, with their strong community ties, are primed to spearhead reform efforts within the real estate development industry.

"Because we have a different perspective, we will…have more empathy toward the people who are facing challenges such as finding quality affordable housing," he points out. “It's all about understanding what people really need and filling those gaps with something meaningful.”

He also advocates for a shift in perception toward affordable housing, sharing that he would like for the term not to be seen as a burden or required obligation to developers within the industry.

Final Thoughts

With Montague at the helm, F7 Development has developed several projects in Raleigh, pioneering a new approach to real estate, one with community as its central focus. His story is are a testament to the possibility of creating spaces that benefit everyone. It's about making a difference, one project at a time.

As Montague’s work lights the way, real estate emerges as a force for positive change, proving that with the right approach, we can all find a place to call home.