Duke Energy sells 2 uptown properties. Developers already know what they want there.
Two developers are expected to close on a deal to buy two decades-old Duke Energy-owned properties in uptown, transforming both into new office, apartments and retail space.
News of the sales, announced Monday, come as Duke Energy shrinks its real estate footprint ahead of moving into a new headquarters nearby next year.
Berlin, Germany-based Millennium Venture Capital will purchase Duke Energy’s property at 401 S. College St., according to a Duke Energy news release. MRP Realty, a Washington, D.C.-based developer, will purchase the 526 S. Church St. property — and eventually more than double its height.
The two sites have a combined appraised value of about $138 million, county records show, The Charlotte Observer reported in September. Duke Energy is not disclosing the sales prices now, spokeswoman Caroline Portillo said.
The deals are expected to close this year. Once that happens, Duke will leave 401 S. College.
The Charlotte-based power company will keep a presence at 526 S. Church until late 2023. That’s to ensure it has enough space for employees as the new headquarters, Duke Energy Plaza, is under construction.
The 40-story high-rise on South Tryon Street will house around 4,400 Duke employees and contractors, the Observer reported in September. Work on the exterior of the tower will be largely finished by the end of the year, Portillo told the Observer. Interior work will continue into next year when employees start moving in.
Duke Energy has been moving to a hybrid work schedule, Portillo said.
Once out of the Church and College street properties, Duke will go from having 2.5 million square feet of space in uptown to 1 million square feet. The move will save Duke an estimated $85 million to $90 million over five years, Portillo said.
New apartment tower planned
MRP Realty is calling its project at 526 S. Church an adaptive reuse development. The Duke Energy building has 12 floors, nearly 1 million square feet and spans 3.86 acres. It’s been serving as Duke Energy’s acting headquarters.
MRP plans to convert a portion of the existing building into 425 loft-style apartments, according to MRP’s founding principal Ryan Wade. A new 14-story tower on top of the existing office building will include 125 luxury apartments, Wade said.
The project will include between 50,000 and 70,000 square feet of ground-floor retail and 100,000 square feet of creative office.
MRP will work with Charlotte-based Asana Partners on the retail portion. There will be restaurant and beverage options as well as other retail, according to Liz Piccolo, an MRP spokeswoman. There are no confirmed tenants yet. Construction could begin later in 2023.
The site is bounded by Stonewall Street, just steps from Bank of America Stadium.
“Uptown is where the major employers reside and we believe Stonewall Street has the unique opportunity to become one of the best retail corridors in Charlotte,” Wade said in statement.
This would be MRP’s second project in Charlotte.
MRP is in a joint venture with White Point Partners and Barings, an investment management firm, to build a 24-story apartment tower at 1728 South Blvd. in South End.
German developer’s plans
The specifics on the development at Duke’s South College Street building are not as firmed up yet — at least publicly.
Duke’s building there sits on 2.3 acres and includes close to 327,000 square feet of space.
The German developer is planning a mixed-used development, according to Portillo. The development will include luxury apartments along with office, retail and a hotel.
Attempts to reach MVC were not successful Monday.
Other uptown development
More development is being planned or underway nearby.
Construction started this month on a 12-story, $166 million residential tower in the area of 315 W. Morehead St. Texas-based Aspen Heights Partners plans to build 393 townhome and apartment units.
The $600 million 7th and Tryon project will bring offices, a hotel, apartments, restaurants and retail around 6th and 8th streets. The project is expected to be completed in mid-2025, the Observer reported in October.
There are also plans to build a new Main Library and renovate Spirit Square. That project is expected to be complete in late 2025. The library, theaters and 7th and Tryon project will be connected by plazas, county officials have said.
This story was originally published May 2, 2022 at 3:02 PM.
