If approved, a new apartment building could replace Goodnights Comedy Club.
Bridging the gap between the Warehouse District and Hillsborough Street to wildly up DTR’s walk score is the just announced sprawling 865 Morgan, a grand new mixed-use property. Sitting on the site of longstanding laugh house Goodnights Comedy Club and slated to break ground in Q1 2022, the new development by HM Partners (of Edison Lofts, Dawson, Powerhouse Square fame, among others), if approved, will span 3 acres, complete with 401 apartments, 9,000 square feet of retail space and a parking deck. “My goal is not just to build, but to improve the community,” says Gregg Sandreuter, HM Partners managing partner.
And, live comedy fans, before your chuckles turn to tears, know that HM Partners reached an agreement with Goodnights, which will continue to operate at another unidentified location. “Regardless of where we are, Goodnights will continue its tradition of bringing the best comedy to the Raleigh area and will always support the local scene,” says Reven MacQueen, Helium’s senior manager of development and East Coast operations. Adds Sandreuter, “Goodnights will be in Raleigh for a long time to come.” So, not so much a goodnight (aka goodbye) as many more good nights ahead. goodnightscomedy.com
WEB EXCLUSIVE It’s not clear what 2021 will look like for commercial real estate. Many companies continue to work from home without a timeline on returning to the office. In a JLL Raleigh-Durham report released at the end of 2020, vacancies were continuing to inch up. It was also reported that rental rates were holding steady with landlords offering concessions instead of lowering rents to keep property values stable. That said, construction didn’t stop in 2020—setting the stage for delivery of big developments across Wake County.
By April 2021, Kane Realty Corp.’s second phase of Smoky Hollow will be complete. The Line Downtown Apartments is open, and the office building, 421 Harrington, will open later this month. The Hollow, the street-level restaurant and retail concept lining the cobblestone streets will open in April.
The Hollow
Tower Two at Bloc(83), the sister tower to One Glenwood, will open this year. The 300,000-square-foot building includes office space, retail and a parking garage.
Tower Two at Bloc(83)
The first phase of Raleigh Crossing, a two-tower project at 301 Hillsborough St., which will house the headquarters for local software company Pendo, will open at the end of 2021 with 300 apartments, 280,000 square feet of office space and 18,000 square feet of retail to boot.
Main Lobby and 301 Hillsborough Retail
Palisades III office building on Trinity Road near the NC State Fairgrounds is scheduled to open this year. Tenant amenities include a fitness center, lounge, plaza and sky terrace.
Palisades III
Grove 98, known more as the Wegman’s shopping center in Wake Forest, will open in May. The 70-acre mixed-use development will feature apartments, restaurants and retail.
WEB EXCLUSIVE North Hills is getting a huge makeover. Kane Realty Corporation released plans for a mixed-use revitalization project in North Hills Main District, which will include a 12-story high-rise residential building, 346,000 square feet of office space and 100,000 square feet of ground floor retail.
The master plan, drew up by Ci Design of Baltimore, features outdoor gathering spaces such as an active public plaza with a concierge center and event space, an expanded parking deck and improved access for cars, pedestrians, bikes and scooters to explore all of North Hills’ shops, restaurants, venues and community spaces. Kallie Walker, senior development manager for Kane Realty Corporation, says that one of the highlights of the project is to replace underutilized parking areas and replace them with a “more efficient and thoughtful use of space.”
“This is precisely how successful smart cities are growing today,” Walker adds. “And we are excited about what this means for the future of North Hills and all of Raleigh.”
One North Hills Tower
NHX Creative Office
Two office projects are also included in Kane’s North Hills revitalization project. One North Hills will be a 10-story tower designed by Durham’s Duda|Paine and will be one of Raleigh’s first post-COVID offices designed with touchless access points, enhanced air filtration and a 6,000-square-foot outdoor work space. NHX will be a five-story office creative office building designed by Ci Design that features flexible layout options, a walk bridge connection and a rooftop terrace. Both office spaces will include retail at the street level.
The Main District project’s 287-unit residential unit will offer both one-, two- and three-bedroom apartments for rent. The apartment building, designed by Cline Design Associates, includes amenities such as a coworking lounge, eighth-floor deck with fire pits, second-floor pool deck and an indoor/outdoor fitness center.
Additionally, North Hills Main District will get Raleigh’s first Restoration Hardware gallery, dubbed RH Raleigh. A glass-encased rooftop restaurant and barista and wine bar that open onto a scenic park are highlights of the three-level indoor/outdoor gallery.
North Hills Main District street view
Sean Hill, senior construction manager for Kane Realty Corporation, says that they are working with the City of Raleigh and their tenants to ensure any disturbances from construction are as mitigated as possibly, given the scale of construction that the project calls for. “We are excited for the North Hills Main District project and what it will bring to the North Hills community as a whole,” Hill says. “We look forward to sharing our comprehensive plan with our tenants and the surrounding community once it has been finalized.”
Construction is set to begin in early 2021 with an opening date of summer 2023.
WEB EXCLUSIVE Despite many Raleigh industries being on pause during the pandemic, the city continues to build up, with developments moving right along in an effort to keep the economy thriving. Smoky Hollow’s Publix at Peace opened earlier this month, construction on Tower Two, which will accompany the existing One Glenwood tower to form the Bloc[83] district project, is on the cusp of being finished and John Chavis Memorial Park is undergoing major improvements.
Most recently, Preferred Office Properties released final renderings and a 3D video tour of 121 Fayetteville Street, a 30-plus story tower that will include office spaces, outdoor terraces, a conference facility, street-level retail, a fitness center and more. Construction is expected to begin next year.
Designed by Duda|Paine Architects, the tower will certainly transform Raleigh’s skyline with its modern reflective exterior. It will also likely transform the way we think about office space, as offices will fuse effortlessly with upscale dining, a state-of-the art fitness facility and vibrant communal space.
“The building will also make a significant economic impact by providing a transformative location for companies looking to move their business to downtown Raleigh,” said Jason Frost, the executive vice president of development at Preferred Office Properties. That’s not to mention the amazing views from the top floors, which will encompass all of downtown Raleigh and beyond.
On the bottom floor, a variety of enhanced retail options for both office goers and passersby will bring the 100 block of Fayetteville Street to life.
Additionally, 121 Fayetteville Street’s pedestrian landscape will feature upgraded lighting and art installations for the Fayetteville Street parking garage and the corner of Wilmington and Hargett Streets. Preferred says that the transformation will “reinvigorate the area that touts our state’s historic Capitol, governor’s office and Supreme Court.”
121 Fayetteville Street is steps from some of the city’s best food and drinks spots, the recently renovated Moore Square and the retailers, museums, nightlife, events and other attractions that bring people to downtown Raleigh in the first place.
How COVID-19 is affecting the timelines for local development.
Before the coronavirus pandemic hit, Raleigh was booming with development projects all over the city, especially downtown. And while economic downturns, as are happening in the wake of this worldwide pandemic, typically spell bad news for commercial development markets, Raleigh’s, so far, appears to be continuing on its growth trajectory for the most part unscathed.
James Marapoti, the City of Raleigh’s manager for development projects advocacy, says city planners are not seeing a direct impact from COVID-19 in regards to implementing or furthering development projects. Planners guiding complex projects through the city’s approval process have not been slowed by working from home and city workers are still performing inspections, and awarding permits.
But Marapoti warns that if the supply chain for building and contracting materials is temporarily halted—as with what occurred with the meat production industry—it could cause an interruption in project timelines. So far, development-related manufacturers have yet to be affected and construction companies have been able to stay on track with projects.
Marapoti says deciphering “how we want Raleigh to be identified” is a key aspect of his job.“We are working to make Raleigh more visually identifiable as a city, so that when you drive into downtown Raleigh, you can know you’ve arrived,” he says.
Smoky Hollow
Photo courtesy of Leo Suarez | Raleigh Connoisseur
Peace Raleigh Apartments, part of phase one for the Smoky Hollow development project, welcomed its first tenants in May, and Publix, located on the ground floor of the apartment building, eyes an August opening. The other two components of Smokey Hollow—The Line and 421 N. Harrington, both multi-purpose spaces with offices, retail and residential units—are moving ahead with plans to wrap up this November.
A Much-Needed Hotel Boom
It’s no secret that downtown is in desperate need of more hotels and several projects—including Home2 + Tru, Courtyard Marriott and Hilton Garden Inn—are underway to address the shortage. The Willard, an AC Hotels project, is currently under construction at 21 Glenwood Avenue and will offer seven floors of rooms. And permits have been completed for Nash Square Hotel located on the corner of W. Martin and Dawson streets; the site has been cleared and construction should start soon.
West Cabarrus Warehouses
Though still in the design stages, West Cabarrus Warehouses will be one of the first multi-use structures made of heavy timber in North Carolina. Part of a revitalization that’s rapidly expanding downtown’s Warehouse District, the project’s unique design and striking architecture will set the West Cabarrus Warehouses apart from the typical modern steel building. There is no set date for groundbreaking but the plan is to transform two existing structures—a warehouse and former auto shop—to eventually house the largest outdoor seating and live entertainment courtyard in downtown Raleigh.
400H
Construction will begin soon on 400H, located on the corner of Hillsborough and West streets. The 20-story mixed use structure aims to forge together surrounding neighborhoods, offering high-end apartments and a ninth floor sky hub, with indoor and outdoor amenities including a pool.
A Setback for Dorothea Dix Park
Raleigh’s city council postponed a November bond referendum to support Dix Park (and other city parks). But Sean Malone, CEO of the Dorothea Dix Conservancy, the park’s independent fundraising body, says this is just a timing change and planners are moving ahead with park projects including the design for a children’s destination park within the park from Dix master plan design firm Michael Van Valkenburgh Associates.
Salisbury Square
Located directly across from the Duke Energy Center for the Performing Arts is the future Salisbury Square, a set of four structures including two 20-story towers, to be used for residential, hotel and parking space. Dominion Realty bought the space from North Carolina Association of Educators, whose headquarters are housed diagonally to the site. Unique to Salisbury Square particularly is a plan to include 63 housing units at below-market rates that will be reserved for low-income tenants. Plans are expected to be submitted to city officials in the coming months.
121 Fayetteville
At more than 30 stories tall, 121 Fayetteville, situated across from the Wells Fargo building, will help to frame the Capitol Building as you’re looking down Fayetteville Street. With soaring architecture and awe-inspiring views, this project will truly “change the landscape of our skyline,” says Marapoti. While there is no start date as of yet, plans are currently under review by city officials.
Tower II at Bloc 83
It’s no coincidence that most of the developments are within walking distance of Raleigh’s state-of-the-art transportation hub, Union Station, and Tower II at Bloc 83, located next to One Glenwood, is no exception. With its prime location on the corner of Hillsborough Street and Glenwood Avenue, Tower II will be a pedestrian friendly, multi-use facility for office, retail, hotel and parking space and will house Raleigh’s largest urban courtyard. Tower II is currently under construction, expected to be ready for occupancy late next year.
