NC may sell millions in property downtown and on Wade Ave under spending bill
AI-generated summary reviewed by our newsroom.
- Legislature directs sale of two state properties in Raleigh pending signature.
- Department of Administration must market Dawson and Wade Avenue sites.
- Proceeds will fund State Capital Infrastructure projects and campus build.
The North Carolina General Assembly is getting into the real estate business. Again.
The small spending bill that passed the legislature this past week includes provisions that could get rid of two state-owned properties.
That’s usually a matter for the Council of State, the 10-person group of statewide elected officials including the governor who have few joint duties aside from property matters. Or for the Department of Administration, the Cabinet agency tasked with overseeing most, but not all, construction projects.
Senate Bill 449, which was passed amid the continuing stalemate among Republicans over the four-months-overdue comprehensive state budget, was quickly signed by Democratic Gov. Josh Stein. There was no debate over the measure, which received near-unanimous bipartisan support.
Here’s what the General Assembly wading into real estate means for Raleigh.
Entrance area to downtown Raleigh to be sold
The bill instructs the Department of Administration, which is in charge of state property construction and maintenance, to sell the property at 304 N. Dawson St., which is now occupied by grass and a tree buffer. Thousands of cars pass by it every day on the way into downtown off Capital Boulevard.
It’s a de facto entrance to Raleigh from all points north of downtown.
According to Wake County property records, the state has owned the land since 1953. The value of the property is assessed at $3.02 million.
The land is immediately adjacent to the Longleaf Hotel and Lounge. The money from the sale will go into a budget fund called the SCIF, which stands for State Capital Infrastructure Fund.
That fund is where the money comes from for major construction projects, including the massive Education Campus under construction across from the Legislative Building and the Museum of Natural Sciences. That building project was also taken away from Department of Administration jurisdiction, instead being overseen by the Legislative Services Office.
House Minority Leader Robert Reives, a Chatham County Democrat, said he gets “real uncomfortable with that because of some of the things I have seen happen with the budget, and so I don’t know, and have no information whatsoever, that tells me why that’s being done.”
“But I always get a little nervous when we start directing about how to dispose of property and things of that sort, especially when we’re telling somebody that they’ve got to sell something like a right of way, because it always feels like that, the next thing I hear is some company or some particular person, needed that to happen,” Reives said.
He said the legislature should “stick to our lane.”
Senate leader Phil Berger told reporters that the land parcel behind the Longleaf Hotel is “not being used for anything.”
Berger said he is not aware of any conversations with the owner of Longleaf, the closest property.
Old Rex Hospital land would be redeveloped, some state employees would move
The other property change in the spending bill would sell or lease the old Rex Hospital property at 700 Wade Ave. That process would be a little more complicated, as state employees currently work in the building that is now home to the Division of Employment Security.
The state bought the land for $2.45 million in 1981, according to county property records. The total assessed value now is $58.3 million.
The bill tells the Department of Administration to find a new location for the Division of Employment Security by April 1, and relocate staff by April 1, 2027.
Asked about both property provisions in the bill, House Speaker Destin Hall said that “as I understand it, there was not any pushback from any entity on that provision.”
“And you’ve got to sell some things to pay for the Senate tax plan, too,” Hall said, referring to the main issue holding up a big budget deal as Republican House and Senate leaders negotiate.
By April 15, which is less than six months from now, Administration would be required to seek proposals redeveloping the property, either by selling it or leasing it long-term. The redevelopment plan, including traffic and parking details, would also need to be submitted to the legislature’s Fiscal Research Division.
Money from the sale or lease would go into the State Capital and Infrastructure Fund.
This story was originally published October 22, 2025 at 2:35 PM.
