Big Changes Coming to DTR Node

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.

downtown transformation
400H: Nick McLamb, Raleigh Real Estate Photography

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. 

downtown transformation
Garden West: HM Partners

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.

West at Peace Illustrations Revealed

West at Peace Illustrations Revealed

Raleigh’s next big build: West at Peace to break new ground Downtown.

Downtown Raleigh’s next skyline shaper is officially in motion. Following City Council’s fall approval, Raleigh Development Company’s much decried work-play-stay development West at Peace is slated to break ground in 2027. 

The controversial project facing backlash from nearby residents wary that towering heights could disrupt the character of the historic neighborhood was approved for a 30-story rezoning (up from 12)—though final caps limit heights to 24 stories on the north and 27 stories to the south. 

“We are honored to have City Council’s approval on this project and thank all of those involved for their careful consideration and diligence throughout the process,” says RDC VP Chris Carter. “We look forward to delivering a project that supports the city’s growth goals for Downtown and provides an exciting new amenity for the community.”

When complete, West at Peace will bring a mix of residential offerings and a significant ground-level retail experience bordering the future Smoky Hollow Park—plus allocate up to $1.2 million to the city’s affordable housing fund.

Carter emphasizes a mix of both local concepts and national brands, with a primary focus on placemaking along the park—also noting that retail is essential to curating a one-of-a-kind DTR experience.

But to make way for the new, current tenants of the 2.6-acre expanse between Capital Boulevard and North West Street—Endless Grind, Knuckle Up Boxing and Fitness Center, and Oak City Printing—must be demolished. Yet another reminder that in Raleigh, progress often comes with a price—a growing pain in our fair city’s relentless march toward future growth. 

Checking In

Checking In

Raleigh is back on track to getting the Triangle’s largest hotel.

We first dropped the news of DTR’s massive 500-plus-room hotel next to the Raleigh Convention Center in 2020 (ring a bell?)—but, you know the drill… the project was halted due to the pandemic and the city’s waning hospitality tax revenue. Now, Raleigh City Council is pressing play on the project—which would be the largest hotel in the Triangle—along with plans to expand the convention center. 

The decision comes after a report put out by commercial real estate agency JLL that detailed Downtown’s lack of hotel rooms. According to the report, the convention center lost about 45% of its business between 2018 and 2020 due to that lack of hotels, totaling a whopping $102 million in economic impact. 

Echoes Mayor Mary-Ann Baldwin, “Currently, we have a shortage of hotels close to the Raleigh Convention Center, which is hindering our ability to attract top-quality events. A new Convention Center Hotel will ensure future success and bring true economic impact, allowing us to compete against our peer cities in a more meaningful way.”

The city-owned lot where the hotel is planned—currently a parking lot in front of the Duke Energy Center for the Performing Arts—is about 1 acre and is zoned for up to 40 stories. The city had originally designated $30 million for the hotel, and $230 million for the convention center expansion, but City Council says those numbers may change.

Pre-pandemic, the project also included a mixed-use office tower (originally slated to serve as an HQ site for the convention center with offices, ground level retail, residential units and more—plus below-grade parking underneath Fayetteville Street), but at a meeting in mid-March, City Council debated whether or not it should instead be used as residential and retail tower. After all, that part of Fayetteville Street is already very office-heavy. 

“If we learned one thing during COVID, it’s that our restaurants and small businesses depend on visitors—as well as residents—for their success,” says Baldwin. “This is one way we can continue to build a
thriving Downtown.”