Developer plans 150-room hotel in downtown Raleigh

A Maryland-based developer wants to build a hotel at the corner of West Morgan Street and Glenwood Avenue on the edge of downtown.

Heritage Properties already plans to build a 10-story office tower with ground-floor retail space at Glenwood and Hillsborough Street. Last week, the company asked the city for permission to build a hotel with up to 150 rooms in addition to a planned parking deck as part of the roughly $100 million project known as One Glenwood.

The Glenwood South area will need a new hotel because it is close to the Union Station transit hub, which is set to open in January 2018, said Ryan Blair, a Heritage vice president. It is also near The Dillon, a tower that is under construction near the Citrix company headquarters in the warehouse district.

Blair said Heritage hopes to partner with a major hotel chain.

“We’re going to bring in someone who will bring in a modern, flag hotel that will benefit the office as well as the community,” he said.

Heritage bought a 1.5-acre site on West Morgan Street in June for about $7 million. A seven-story hotel and 800-space parking deck would be built in two phases on half of the site, which is currently home to Shelton’s Furniture.

Shelton’s plans to close by the end of the year and is moving to downtown Clayton, said sales associate David Jefferson.

The other half of the lot, which extends to West Hargett Street, will be paved as a parking lot and may be developed later, Blair said.

In December 2015, Heritage paid just over $4 million for a .8-acre site across Hillsborough Street from the Snoopy’s restaurant for the 227,000-square-foot office tower, which will include 14,500 square feet of retail space.

Blair said Heritage plans to pre-lease about 40 percent of the space before beginning construction and is currently talking to potential tenants, who could move in as early as May 2018.

This story was originally published November 28, 2016 at 6:23 PM with the headline "Developer plans 150-room hotel in downtown Raleigh."