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Two Raleigh restaurateurs are resurrecting a hidden speakeasy below Fayetteville Street.
Tucked below Fayetteville Street is a time capsule of Raleigh history: an abandoned speakeasy located directly underneath Sir Walter Apartments, which formerly housed the famous Sir Walter Hotel. Now, the dust-covered den below the city’s oldest surviving hotel building is rising like a Phoenix thanks to Anthony Rapillo (of Flour & Barrel, V Pizza, Flask Cocktail Bar and The SideDoor fame) and Chopped champ Katsuji Tanabe.
A designated historic landmark, the hotel—which was constructed (and saw its heyday) in the 1920s—was a hub for political activity, earning it its famed “North Carolina’s Third House of Government” nickname. Because, naturally, what better politico hang for wheelings and dealings than a hidden speakeasy?
Long since forgotten, its unearthing a century later revealed beautiful bones complete with historic remnants a la original booths, tables, bartop and some light fixtures, enticing many Raleigh entrepreneurs to acquire the sacred slice of real estate. Alas, Rapillo and Tanabe were the sole proprietors to score an in-person meeting with the building’s owner, Capital Realty Group. And the rest, quite literally, is history.
With lease now in hand, the entrepreneurial pair plans to revive the speakeasy, retaining its signature red leather booths and wood details while bringing energy back to that once-thriving dance floor. And propelling the space into its new age, the duo will add mod touches to the downstairs den, including two bars and entertainment—think live DJs, dancing, and bottle/shots service.
“We want it to be a place where adults can go and let loose and have a really good time—and not feel super-restricted or like they’re somewhere fancy,” says Rapillo. Think very fun, very loud and very dark, he adds. In short, a total vibe.
Meanwhile, a separate side from the dance floor area serving subterranean sips and sushi will lean more into a restaurant atmosphere with loungey booth seating and a Japanese-inspired menu by Tanabe.
Taken together, the dark and moody space will tout a true speakeasy scene—down to the absence of signage or a bouncer checking people in at the exterior door upstairs). And it will remember where it came from—from the old photo mementos to the potential moniker… Rapillo even wants to name it The Third House. “If we’re not gonna dive into the history, why are we doing this here?” he says.
But the underground haven—now DTR’s fifth behind a bevy of outstanding below-ground bars: Foundation, Fox Liquor Bar, Watts & Ward, and Sous Terre—won’t just serve as an ode to Raleigh’s history, but a beacon of her future. It’ll stand on the shoulders of all the longstanding and newly bowing businesses securing DTR as a destination for the future.
“We feel like Downtown in five, 10 years is gonna be back to being the coolest place to be in Raleigh—and we want to be a part of it,” emphasizes Rapillo. “Downtowns are always vital to a city’s success. … And the space is so cool.” Ready to go back in time?

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