by William Needham Finley IV™

Development Beat: Another 20-story Tower Planned for Hillsborough Street

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Week of January 30, 2017

Another 20-story tower coming to Hillsborough Street

Real Estate Report: Super ITB Office Space

Lilly Pulitzer and Copper Penny coming soon to North Hills

Kickboxing chain coming to Raleigh

Glenwood is getting a new Sheetz

Gordon Grubb buys Peden Steel property for $10M

20-story Tower at 400 Hillsborough Street
If ever there were a section of Hillsborough Street that would actually be improved by the addition of yet another residential mixed-use project named after its address, it’s the 400 block.

Home now to a group of one and two-story commercial buildings built in the 1930s and 40s, site plans call for a 20-story, 540,867 square foot tower. Tentatively named “400 H”, the tower will include residential units, 129,000 square feet of office space, and 16,500 square feet of retail space. A development team led by Gregg Sandreuter filed the plans last week. We’re not sure whether current tenants C U Fitness or the long-standing Artcraft Sign Company Inc. will become tenants in the new space.

We’re sure the Lundy Group, which earlier this month unveiled renderings for their long-in-the-works City Centre that will include multiple 20-story towers and combine residential, office, retail, and hotel space at 301 Hillsborough, is thrilled.

301 Hillsborough

Sandreuter, a partner at Charlotte’s Beacon Partners and the president of Cary’s Hamilton Merritt, told the Triangle Business Journal that he wants 400 H to be a “smaller, newer” version of downtown’s PNC Plaza; a building that would foster a “vertical community.” Does that mean he hopes residents will work in the building’s office spaces? Unbeatable commute times for sure, but I think I’d start to feel a bit cooped up.

The 244′ high building will include 220 residential units: 120 one-bedrooms, 90 two-bedrooms, and 10 three-bedrooms. 674 parking spaces will be provided for the residents and building tenants. As the property is already zoned to allow for a 20-story development of this nature, the developers will be able to move forward as soon as the site plan is approved.

400 H

While project architect Gensler has designed a number of interesting projects across the globe, including the new headquarters for the Alfred Williams Furniture Company over at 201 S. Salisbury, our favorite has to be the Shimao Shenzhen Qianhai Canal City in Shenzhen, China. Hopefully, the design of 400 H will mimic the Shiamo. The architectural rendering could pass for a matte painting from the new Bladerunner movie, it’s that cool:

Shimao Shenzhen Qianhai Canal City

Real Estate Report

If you’re in the market for some premier office space, our friends at NAI Carolantic Realty have an outstanding ITB location for you. Located at 3515 Glenwood Avenue, this 75,000 SF, 3-story Class A office space is super ITB. How ITB is it? Well there’s an Audi in the rendering if that tells you anything.

Office may or may not come with an Audi

According to the TBJ, Raymond James and Associates Inc. just signed on to take up about 12,000 square feet on the second floor. William Needham Finley IV hinted on Twitter about expanding his media empire and leasing the top floor, but it turns out you have to rent more than 50 square feet and they don’t take La Croix as a form of payment. Contact the listing broker, Jimmy Barnes (919-832-0594), if you’re interested. Tell them you saw this post and they’ll give you the first 10,000 square feet for free. (No they won’t.)

Note: To feature listings here, contact wnfiv@itbinsider.com for options.

With Your Permit-ssion

Raleigh’s First Copper Penny
Permits were issued for Copper Penny, a high-end women’s clothier that will open soon at North Hills. We’re not sure about the etymology of the store’s name, although it seems an odd choice given that most of their clientele has likely never handled currency in denominations of less than $50. The North Hills location will be the first Triangle location. Cline Contracting will handle the $73,000 fit-out of a 2,492 square foot space next to Scout & Molly’s boutique.

North Hills wins Lilly Pulitzer Prize
As William Needham Finley IV reported in June, Lilly Pulitzer is coming soon to North Hills. The popular “resort wear designer” Lilly Pulitzer — not to be confused with the pharmaceutical company that was the first to mass-produce penicillin — will open in the former home of Learning Express Toys. The $175,000 renovation of the 2,428 square-foot space will be done by Horizon Retail Construction.

iLoveKickboxing is Coming
Fitness franchise iLoveKickboxing received permits to open their first Raleigh location at 8629 Glenwood Avenue. The $250,000 renovation of the 3,372 square foot space will be handled by Zachary Michael, Inc. Instead of using a portaband saw to cut the interior trim for the space, we heard the contractor chose instead to smash the Cherry Oak wood into pieces using only kickboxing moves. Just a rumor though. If the intense music in this video doesn’t scare 10 pounds off of you then we don’t know what will.

Night at the Museum of the Lost Ark
This one’s kind of interesting: in December, the State put out a bid for the relocation of about 500 artifacts for the Museum of History, which were being stored at a warehouse on Navaho Drive, to a space at the Hammond Road Business Park. Both spaces are probably too small for any kind of Ark of the Covenant/”Top Men” situation, but I wouldn’t rule out the possibility that the collection contains the Golden Tablet of Pharaoh Akhmenrah. That’s probably why the bid specifications stated very clearly that all work must be done during the day.

Self-Storage Sprawl
Site work permits have been issued for yet another Self-Storage facility, this one to be located off Glenwood Avenue on Doie Cope Road. The 4-story climate controlled Class A facility is being developed by Johnson Development Associates and the site work is being handled by Sitescapes. What is going on in Raleigh that we need so many Self-Storage units? I learned from Breaking Bad that they’re *not* a good place to cook meth, but there has to be some other nefarious purpose.

A rendering of JDA’s newest Self-Storage facility

Retaining Wall Permits Approved
Speaking of site work permits — well, retaining wall permits, to be exact — Oak City Contracting received a quintet of them for “City Walk”, a new townhome complex near Triangle Town Center. I covered this project back in December 2015, and I’m *still* not sure why something built eight miles from the downtown core is titled “City Walk,” but hey, there is a bowling alley within walking distance, which almost makes up for it. The development from the Lennar homebuilding company will consist of 132 attached townhomes, apparently separated into clusters of no more than five apiece.

Aw Sheetz
While I may be of the opinion Raleigh has far too many self-storage facilities, there’s one type of development the city could always use more of: gas station/convenience store hybrid Sheetz. As far as we can tell, there’s only seven of them located within city limits, and while that seems like a good amount — think about it, 7-Elevens, 7 dwarves, 7 chipmunks twirlin’ on a branch — there are approximately 121 self-storage facilities, which means Sheetz has a lot of catching up to do.

So I was very excited to see that demolition permits “For Future Sheetz” were issued last week for a space at 8101 Glenwood Avenue that previously housed Eatman’s Carpets Outlet and a City of Raleigh recycling drop-off site. In a pretty unusual twist, I was actually able to find some details on the construction bid for the new building. It looks like those bids are due either today or tomorrow, so if you’re a subcontractor who’s reading this, reach out to CBI General Contractors or Wimco Corporation ASAP.

Floor plans for the new Sheetz

Per the plans and specifications, Raleigh’s eighth Sheetz will be 6,407 gross square feet in size and stand 24′ 7″ (when you include the roof) high. Apparently, the bid does not include a gasoline distribution system or the canopy, so we’re not sure if that’s getting built separately or what. The plans were drawn up internally by Sheetz in-house architect Convenience Architecture & Design PC while the engineering work was done by Keller Engineers.

The demolition portion of the project — which involves tearing down a 22,941 square foot structure built in 1971 — will be handled for $50,000 by Bristol Environmental. As we mentioned, the construction portion of this job is still out for bid, but we’ll be sure to announce the winner here as soon as they’re issued permits. Try not to let the suspense kill you.

Eatman’s Carpet Outlet at 8101 Glenwood in the glory days of 1996

Who Recycles the Recyclers?
While it won’t be long before the former city-owned recycling facility is repurposed into a new Sheetz, it looks like the Waste Management recycling center on Atlantic Avenue could eventually be transformed into a new “creative class space.” Amanda Hoyle reported last week in the Triangle Business Journal that Gordon Grubb, who developed the Dock 1053 project on Whitaker Mill Road, recently purchased a 19-acre site at the intersection of Atlantic and Whitaker Mill. Known as the Peden Steel — not to be confused with our wonderful sponsor, Rufty-Peedin Design Builders — site, the property is now occupied by a 60,000 square foot exposed steel warehouse and an accompanying 7,500 square foot cinder block office building, both constructed in 1957.

Grubb purchased the property from the Peden family on January 19 for $10 million and intends to develop a project similar to Dock 1053, which houses a brewery, a distillery, a neon art studio, and more. A spokesman from Grubb Ventures told the TBJ that while Waste Management has a number of years left on its lease, Grubb worked out an agreement that allows for some flexibility, which means some Raleigh artisans may soon have a new place to call home.

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