Big Changes Coming to DTR Node

Big changes are coming to a long-neglected junction of DTR.

A long-dilapidated pocket of Downtown Raleigh wedged between the Capital District, Warehouse District and Glenwood South is finally seeing a surge of activity—injecting new life into a stretch long defined by vacant buildings and abandoned surface lots.

Anchored by mixed-use development 400H and upcoming projects Garden West and 500 Hillsborough, the junction at West and Hillsborough streets is shifting from an eyesore into an emerging hub. And that narrative will only continue to unfold as the new projects gain traction. 

Commercial real estate firm HM Partners placed the first big bet on the area with 400H, a project years in the making before bowing in 2023. 

“I felt the center of gravity for Downtown activity was leaning west as opposed to east,” reflects managing partner Gregg Sandreuter. “It seemed like this block was the right spot and could become a pretty nifty location.”

The prediction has largely paid off: Today, the development is teeming with residents, office tenants, and popular destinations Press and Brass Tap. 

Building on that momentum, Sandreuter purchased the long-defunct CrossFit building across the street—an eyesore in its own right—where he plans to launch Garden West, a hospitality-driven concept that could see either one larger tenant or two to three smaller ones, he teases. 

Meanwhile, DC-based Dalian Development’s proximal 500 Hillsborough—which recently entered demolition—will add more than 220 modern residential units and 10K square feet of ground-floor retail space on a central block that previously housed Flex Nightclub and Montgomery Violins, among others. 

Taken together, the trio of developments could create what Sandreuter calls a new node of activity just beyond DTR’s traditional epicenters. “The more the merrier,” he says. “It’ll create a new sort of critical mass for Downtown.”

The area already benefits from nearby anchors like Taverna Agora, Second Empire and Jubala’s new Pendo building location, as well as a planned renovation of the iconic “hair-curler” Holiday Inn. 

“It’s hard to imagine this corner of Downtown not getting better.”

—Gregg Sandreuter, Managing Partner, HM Partners

Sandreuter envisions the district evolving into something a little different from neighboring Glenwood South—less late-night hot spot, more daytime-to-evening gathering place. “I think this spot is becoming Downtown’s new 8am to 9pm place: safe, clean, pleasant, and an easy walk to apartments, restaurants and offices,” he muses, predicting a polished mix of residential, office and retail energy that steers clear of late-night revelry—as long as spillover doesn’t occur. 

In short, the long-overlooked intersection is quickly becoming more destination than pass-through—and the perception is already starting to shift. “It’s a neat, improving part of Downtown that five years from now will be even better,” emphasizes Sandreuter. Proof that a once-overlooked corner can evolve into one of the city’s most dynamic nodes.

Street Cred
While Hillsborough Street may not carry the same clout as Fayetteville Street—aka Raleigh’s Main Street—it’s still a prominent Downtown thoroughfare, connecting the Capital to Glenwood South before extending through NC State and on to the fairgrounds. When Raleigh was first mapped out in 1792, the then-dubbed dirt Hillsboro Road served as a route to the small Orange County town of the same name. It wasn’t until 1910 that it evolved into a bustling corridor seeing thousands of vehicles each day—and gradually filling with businesses that have since called it home. Now, the stretch from Salisbury Street to Glenwood Avenue is entering yet another chapter in its evolution.

Westward Shift
On the western end of the junction sits thriving mixed-use development Bloc[83] and its One Glenwood and 621 Hillsborough buildings—recently acquired by local developer Highwoods Properties (also of 150 Fayetteville, PNC Plaza and Charter Square, to name a few). Adding to the vibrancy of the area and extending Hillsborough Street’s westward momentum, the complex is home to hot spots Dram & Draught, Incendiary Brewing, YogaSix and Simons Says Dip This, alongside a mix of office space—with DTR’s first Chipotle also on deck for May.