A group of developers has acquired nearly all of a 2-acre city block in downtown Raleigh – including the final piece of land needed to begin building two 20-story towers.
In December, the Raleigh-based Lundy Group and Hyde Street Holdings bought a .67-acre lot at the corner of Harrington and Hillsborough streets for $4 million, adding the parcel to an adjoining 1.18-acre parking lot at 301 Hillsborough St.
They plan to use the land for City Centre, a mixed-use project that includes a 20-story office tower along Dawson Street and a 20-story multi-family tower along Harrington Street. A site review application filed in November requested approval for retail space, 176 hotel rooms and a parking lot in addition to office and residential space.
“Surface parking lots add little to a vibrant urban core,” John Healy, principal at Hyde Street Holdings, wrote in an email. “Street-level retail and hotels are a real need downtown. Our vision is to create a true mixed-use live, give, work, play community on Hillsborough Street, the front door to Raleigh.”
The group now owns nearly the entire 2-acre block between Hillsborough and West Morgan streets, with the exception of a .17-acre site where the Flying Saucer Draught Emporium is located. The Flying Saucer, “a neighborhood landmark, will remain,” Gabe Guillois, a partner at Lundy, wrote in an email.
“It is a fantastic opportunity to be part of a development team that will provide both the infrastructure needed and the uses that will benefit downtown Raleigh,” Guillois said. “This location is the urban core of our own community, (which) makes the honor and responsibility even more meaningful.”
The City Centre project is less than a mile from the new headquarters of Spectraforce, an IT consulting firm that Lundy moved into a renovated building at 500 W. Peace St. The 13,000-square-foot space is one of five parcels fronting West Street that Lundy bought in 2015 for about $2.8 million. Lundy also owns a 9,000-square-foot building at the south end of West Street.
Madison Iszler: 919-836-4952; @madisoniszler