Stalled downtown Raleigh project gets new partner

dbracken@newsobserver.comApril 10, 2013 

A Raleigh developer is expected to announce Thursday a partnership with the city of Raleigh and the development group behind the long-delayed Charter Square project in downtown Raleigh.

Dominion Realty Partners provided few details about the partnership in a news release other than to say it will have a “major impact on downtown’s skyline.” Andy Andrews, Dominion’s CEO, didn’t immediately return a call late Wednesday seeking comment.

Raleigh Mayor Nancy McFarlane and City Manager Russell Allen are also scheduled to attend Thursday’s event.

Charter Square, a two-tower project slated to be built at the south end of Fayetteville Street, has been stalled since the credit markets froze and demand for new office space dried up. The development group behind the project, which includes Craig Davis Properties, White Oak Properties, East-West Partners and Beacon Street Development, has been unable to pre-lease enough space in either of the towers to secure financing.

The group paid the city $5.28 million for a 1.75-acre site in November 2008. The group also constructed a 550-space underground parking deck on the site, which the city purchased for $25.5 million.

Under its original deal with the city, the Charter Square development group had five years from the sale date of the land to build two towers valued at $100 million. If the group didn’t complete the project within five years, the city would have to buy back the property.

The Raleigh City Council later voted to amend the Charter Square development agreement to give the developers more time and flexibility.

Dominion is well known in the Triangle, having built numerous condominiums, apartments and office buildings. Among the company’s residential projects are the condominiums at the top of the PNC Plaza building in downtown Raleigh.

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