From OpenDurham.org:

Of all of Durham's neighborhoods' that evolved at the turn' of this century, Lakewood bore the most particular relationship to the trolley system and soon became the most popular area in Durham. This popularity was not generated by subdivision of land and home building, but by Lakewood Park, the entertainment center developed by Richard H. Wright on the tract also occupied by his Durham Traction Company's trolley sheds. This southern terminus of the trolley line, which also served as the transportation system's company shops, earned the distinction of being Durham's major recreation area until well into the 1920s.

You can read more about the history of Lakewood Park and our neighbors, Tuscaloosa-Lakewood at the OpenDurham.org Lakewood Page.

You can also read more about the neighborhood's namesake, Lakewood Amusement Park.