WINSTON-SALEM | Development Guide

[DCMetroWinston]

Originally Posted by SpikedCoffee

Is this the start? Heavy equipment at Byrum apartments project location.

Oooh! I was just about to ask if there are any updates about the start of construction on the Byrum Apartment complex. Great reporting, Spiked! Let’s get 930 Brookstown underway too!

[WSBornNBred]

There is a large residential apartment complex that has broken ground in Clemmons which should have first floor retail. Article is dated but I believe this is the project:

https://clemmonscourier.com/2022/06/14/new-project-like-nothing-youve-seen/

[yadkin]

Well, it seems as if NCDOT has decided to sign the orphoned part of I 74 as NC Route 192. This is most unfortunate and very shortsighted. One wonders why W-S does not seem able to do anything the way it ought to be or as it is done nationwide? Imagine, visitors unfamiliar with the area passing through from points south on I 74 to I 40 west thinking they will have to exit to a State Highway, possibly 2-lanes, on their way to I 40 west. Bummer, local officials should protest.

[DCMetroWinston]

Reports of the demise of Mike’s Vegan Grill in downtown Winston-Salem have been greatly exaggerated.

Posts on social media have suggested that Mike’s Vegan Grill is closing, citing reports that the building is for sale.

It is true that the building at 207 W. Third St. - previously the longtime home of Murphy’s Lunch – is up for sale, barely a year after Mike’s opened.

https://journalnow.com/life-entertainmen...75d8.html#tracking-source=home-top-story

[DCMetroWinston]

It’s good to hear they are still trying to bring a hotel to the IQ, but I will not get my hopes up until something is under tangible construction. I’ve just been rather disappointed by the lack of new construction in the IQ in general.

[yadkin]

Me too. I hope that does not translate to declining interest.

[DCMetroWinston]

Originally Posted by yadkin

Me too. I hope that does not translate to declining interest.

They need some new construction fast to dispel the notion the IQ is stalled or worse. It’s all good they have these grandiose renderings of the next planned phase of the IQ, but it smacks of wild fantasy images right now. Why not build a couple of speculative buildings now and use them to lure some big fish the way suburban developers do? Front Street Capital has had massive success at Union Cross building speculative buildings that ultimately have been occupied by major new industry.

[DCMetroWinston]

Doug Rice Photography

[B-V-R]

Originally Posted by DCMetroWinston

They need some new construction fast to dispel the notion the IQ is stalled or worse. It’s all good they have these grandiose renderings of the next planned phase of the IQ, but it smacks of wild fantasy images right now. Why not build a couple of speculative buildings now and use them to lure some big fish the way suburban developers do? Front Street Capital has had massive success at Union Cross building speculative buildings that ultimately have been occupied by major new industry.

Union Cross is an industrial park, so it’s a totally different kind of investment and company you are trying to lure. Industrial buildings like the one at Union Cross might cost somewhere between $120 to $150 psf, whereas the kind of lab space they are looking to build in the IQ is upwards of 3-4 times that and sometimes more. There are also many more industrial and distribution type companies that are looking for that kind of space than medical and research companies. Much different animal building spec lab and medical office buildings.

That sector has also been hit by the pullback in science and education we’ve seen recently from the federal government. Don’t forget they are also still filling the last remaining buildings such as the eye center and the conversion of the Linden Center into lab space. So investment continues and more people will be added to the ecosystem with the completion of those spaces. The IQ has changed downtown in so many positive ways and that will continue. Even RTP didn’t happen overnight.

[DCMetroWinston]

Front Street is attempting simultaneously to move forward on what could be the Triad's next potential quasi-megasite — combining 19 undeveloped parcels into an 848.8-acre property off N.C. 47 at Junior Order Home and Old Linwood roads.

The development would be a key component of what Front Street calls "the Carolina Corridor" in central North Carolina that it is marketing as “Southeast’s next major hub for economic growth.”

https://journalnow.com/news/local/busine...abd0.html#tracking-source=home-top-story

[Matthew]

I also didn't expect much from the IQ until recently. I'm going to admit that I thought they gave-up on the IQ and decided to try again around 70 miles/112.5 kilometres southwest. I have the document they are sending-out to prospective hotel developers through an Atlanta consultant and they are making a pitch to developers to build an upscale hotel on the IQ's P7 site. It will be one of two hotels inside downtown Winston-Salem's innovation district. It appears as if they are saying they will generate the demand for meeting space and rooms. This time, if the developer doesn't move forward in two years, they have a clause to buy the site back and seek another developer. The documents have interesting hotel stats to make their pitch.

I'm questioning if Wexford will have a role in the next phase or not? They are now seeking a new master developer and they want someone with the ability to build on spec. Yes, I have these documents, too. This (seeking new master developer) was lightly discussed in a State of Forsyth gathering, a few weeks ago. In the document, Advocate Health is saying they will provide financial backing for the development and would like to have all of Phase II built-out by 2040. They are also providing flexibility in uses, if office/lab demand isn't there. I will add the former Linden Center is seeing surprising demand for lab and bio-manufacturing space. The medical school will also sign a lease as the anchor tenant in the tallest and largest building proposed in the second phase, which is the 11-storey building next to Salem Parkway in the renderings. They want to start construction on that building in 2029, as the first new building in the development, with completion likely in 2031. Along with this building, they want the developer to start on a hotel (likely mid-level?) with roughly 180 hotel rooms (second hotel inside the Innovation Quarter) across the street and they also want to start on the parking deck with sports amenities for the 11-storey tower.

As for the next building (after the 11-storey building with parking deck and the hotel across from it) they would like to start on a second life sciences building in 2033 and a 330-unit apartment building. They are talking about a parking deck with grocery store on the ground floor in the third round of construction, but seem to acknowledge the difficulties in attracting grocery stores to downtowns and want a developer who can help make that happen. They want downtown's grocery store in this development. A vibrant street-level seems very important, too. They are saying everything is zoned, with infrastructure, and ready-to-go.

2029 could be a very exciting year for downtown. I haven't felt this optimistic about downtown Winston-Salem in a few years. I'm guessing the upscale hotel developer will sign that two-year agreement in 2027 and may start construction around the same time as this life science building, mid-level hotel, and parking deck.

[DCMetroWinston]

Davie County is the latest North Carolina community to hit pause on data center development.

At a packed meeting, the board unanimously approved a one-year moratorium on the facilities. Explaining his vote, Commissioner Mark Jones noted that Davie is one of North Carolina’s smallest counties.

“A 600-acre industrial campus of any kind in rural Davie County is not something that I think we need, whether it's the data center, whether they're making widgets," he said. "I don't oppose development, but there's a time and a place, and that is not the place”

https://www.wfdd.org/politics-government...y-passes-one-year-data-center-moratorium

[DCMetroWinston]

Originally Posted by Matthew

I also didn't expect much from the IQ until recently. I'm going to admit that I thought they gave-up on the IQ and decided to try again around 70 miles/112.5 kilometres southwest. I have the document they are sending-out to prospective hotel developers through an Atlanta consultant and they are making a pitch to developers to build an upscale hotel on the IQ's P7 site. It will be one of two hotels inside downtown Winston-Salem's innovation district. It appears as if they are saying they will generate the demand for meeting space and rooms. This time, if the developer doesn't move forward in two years, they have a clause to buy the site back and seek another developer. The documents have interesting hotel stats to make their pitch.

I'm questioning if Wexford will have a role in the next phase or not? They are now seeking a new master developer and they want someone with the ability to build on spec. Yes, I have these documents, too. This (seeking new master developer) was lightly discussed in a State of Forsyth gathering, a few weeks ago. In the document, Advocate Health is saying they will provide financial backing for the development and would like to have all of Phase II built-out by 2040. They are also providing flexibility in uses, if office/lab demand isn't there. I will add the former Linden Center is seeing surprising demand for lab and bio-manufacturing space. The medical school will also sign a lease as the anchor tenant in the tallest and largest building proposed in the second phase, which is the 11-storey building next to Salem Parkway in the renderings. They want to start construction on that building in 2029, as the first new building in the development, with completion likely in 2031. Along with this building, they want the developer to start on a hotel (likely mid-level?) with roughly 180 hotel rooms (second hotel inside the Innovation Quarter) across the street and they also want to start on the parking deck with sports amenities for the 11-storey tower.

As for the next building (after the 11-storey building with parking deck and the hotel across from it) they would like to start on a second life sciences building in 2033 and a 330-unit apartment building. They are talking about a parking deck with grocery store on the ground floor in the third round of construction, but seem to acknowledge the difficulties in attracting grocery stores to downtowns and want a developer who can help make that happen. They want downtown's grocery store in this development. A vibrant street-level seems very important, too. They are saying everything is zoned, with infrastructure, and ready-to-go.

2029 could be a very exciting year for downtown. I haven't felt this optimistic about downtown Winston-Salem in a few years. I'm guessing the upscale hotel developer will sign that two-year agreement in 2027 and may start construction around the same time as this life science building, mid-level hotel, and parking deck.

Whoa, Matthew, this may be the scoop of the year! Although I’ve been rather negative about prospects for further significant development and companies at the IQ, this has given me some hope. I hope we see some announcements and tangible construction soon to verify this hope. If this materializes, it would be the biggest thing to happen to Winston since the inception of RJR, WFU, and Wachovia.

[DCMetroWinston]

Jon Buttitta, one of the most popular players for the Twin City Thunderbirds over the last few years, has been named the next head coach.

[SpikedCoffee]

Byrum going up is the next step, warehouse going buh bye.

[DCMetroWinston]

Originally Posted by SpikedCoffee

Byrum going up is the next step, warehouse going buh bye.

Woot! This made my day.

[TwinCity]

This will look great from 52!

[DCMetroWinston]

Originally Posted by TwinCity

This will look great from 52!

Indeed! Improving the aesthetic of downtown from 52/285 is one of the reasons I am so stoked about The Byrum project. It also hope it will be few first of multiple developments in that northeast corner of center city.

[DCMetroWinston]

Matthew, now that construction on Byrum apartments is apparently underway, any word on the Brookstown Brookhyrst apartments project? It debuted with so much media attention early this decade, yet seems dormant now.

[Matthew]

It seems like The Byrum is moving ahead of Brookhyrst, likely due to being near the new proposals/construction in downtown? The reemergence of these two large apartment proposals is due to recent growth in downtown's housing demand and population over the past three or four years. Downtown's population dropped and inflation was on-the-rise after the pandemic, leading to these two apartment buildings being placed on-hold. That drop reached its bottom in 2022. From 2023-2026, downtown has gained an estimated 1,000 people and has growing demand again for more housing. Downtown now has a higher population than before the Pandemic and only a few small residential projects have entered the downtown market since that time. These two massive apartment projects are benefiting from being ready-to-go. After seeing them on-hold for so long and knowing inflation is still a little high, I'm concerned, but there are many positive signs saying they are starting. They were never cancelled. Just placed on-hold until conditions improved. Maybe this is the first sign of downtown returning to where it was in January 2020? I guess we shall see what happens. If it continues to move forward, The Byrum will likely enter the downtown market in early-2029, as those other big Innovation Quarter projects we discussed (11-storey Life Science Tower, two hotels, etc.) are starting construction. Great timing! Thank you for the photographs!