What's up on North Tryon Street?
Apartments coming down; future of prime block is open
DOUG SMITH
A strategic block of Charlotte's center city is poised to become the
next big urban redevelopment project.
An investment group led by First Colony Capital's Hunt Broyhill and
Charles Campbell paid $10.75 million last week for just over 2.17 acres at
631 N. Tryon St. The price of nearly $114 per square foot is in line with
other big uptown development purchases, which have ranged from $110 to
$140 a square foot over the past two years.
The last of the residents will be gone, the former owners said, and the
new owners will start demolishing the old Renaissance Place Apartments on
the site this month. Then the new owners will spend the next several weeks
finalizing development plans.
Campbell, president of First Colony Capital, said his team wants to
talk to other uptown stakeholders and listen to ideas before deciding
exactly what the redeveloped block will include.
Uptown is experiencing a shortage of Class A office space at the same
time urban living is on the upswing and city center dwellers push for more
stores and services.
Real estate experts familiar with uptown say the project's location
between residential neighborhoods in Fourth Ward and First Ward make it a
prime site for a mix of homes, shops and offices.
The block is bounded on the Ninth Street side by the 525 North Tryon
Building and on the 10th Street side by the McColl Center for Visual Art.
The county-owned Hal Marshall Services Center block across Tryon is
expected to be redeveloped when the real estate services department
eventually relocates to Freedom Mall.
And Levine Properties has teamed with Faison to create an urban village
of offices, shops, civic buildings, residences and urban park nearby in
First Ward.
"The uptown market has become so dynamic we need to make sure we
understand it," Campbell said. "There's a tremendous need to
make sure we do it right."
An investment group managed by Charlottean David Kossove bought the
North Tryon property more than 10 years ago for $3 million and did some
renovating before selling it to First Colony Capital.
In a sense, Kossove said, the sale gives his investment team "the
opportunity to assist in the development of "the last major gateway
into the center city."
He said Renaissance Place's investors have received offers over the
years from real estate speculators and potential out-of-town purchasers.
"We have searched for the appropriate individual or party who
could share our ideas, and someone we could trust to have the resources
necessary to execute such a vision," Kossove said. "First Colony
Capital was the prefect match."
The company, an affiliate of 33-year-old First Colony Corp., was
co-founded by Campbell and Hunt Broyhill, CEO of Broyhill Asset
Management, to specialize in real estate investment.
The firms' principals signaled their interest in the center city in
2003 when First Colony Corp. bought the Charlotte Chamber building at 330
S. Tryon St.
Campbell said First Colony Capital is looking for more uptown
opportunities. "We see the vision; we believe in the center
city," he said. "It will be a focus for First Colony
Capital."
First Colony Capital's Ira Slomka and Bill Transou represented the
company in the real estate transaction.
Campbell said Transou is First Colony Capital's point person on
handling inquiries and suggestions concerning the Renaissance Place
redevelopment.
Development
About 631 N. Tryon St.
The nearly 50-year-old complex at 631 N. Tryon St. was once known as
the Manger Motor Inn. In its heyday it was an uptown flagship hotel.
The property was being operated as the Executive Inn when it closed in
November 1986 after years of declining occupancy.
An investment partnership headed by Faison Kuester Jr. acquired it in
1989 as blight was engulfing North Tryon Street.
Kuester operated it as Renaissance Place, an apartment and
assisted-care facility.
An investment group led by David Kossove bought Renaissance Place in
1996, made improvements to the apartments and added executive office
suites.
First Colony Capital completed its purchase of the property last week.
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