A group led by local real estate developer Gregg Sandreuter has acquired control of a city block in downtown Raleigh that is zoned to accommodate a 20-story building.
Sandreuter, who was part of the development group that built the 23-story Skyhouse luxury apartment tower in downtown Raleigh that opened last year, said a specific plan for the site bordered by Hillsborough, Edenton, Harrington and West streets hasn’t yet been formulated.
“I’m in the formative stages of determining what this building will be,” he said. “We hope to have more clarity by the end of January.”
He added: “I think that it’s a terrific location for multi-family and office and retail.”
Sandreuter confirmed that a new development group he leads, BR Hillsborough Partners, paid $2.1 million to acquire two parcels on the Hillsborough block from a group led by Shiner Capital Partners of Chicago.
In addition, the group acquired a ground lease agreement for the remaining four parcels on the block from a local family, giving it the right to build on that property. The group also obtained the rights to purchase the property outright in the future, Sandreuter said.
Four buildings totaling nearly 35,000 square feet currently occupy the block, including a former A&P supermarket.
“I never saw it, but people tell me it was there,” Sandreuter said.
The Sandreuter group also has negotiated a deal to acquire the air rights above a nearby two-level parking deck, paving the way for constructing additional levels. Shiner Capital also owns the parking deck.