Wells Fargo, Pappas Properties to Develop Foreclosed Masterplanned Community
- Jun 08, 2012
by Adriana Pop, Associate Editor
Wells Fargo Bank and developer Pappas Properties of Charlotte are planning to restart a 24-acre master-planned development that the bank had earlier foreclosed upon.
According to the Triangle Business Journal, Pappas and the bank have jointly filed a a new master plan proposal and a rezoning request for the 24-acre site known as Crabtree Village. The project site is located on a portion of the Kidd’s Hill property behind Crabtree Valley Mall.
Before the downturn, York Properties of Atlanta – the site’s previous owner – was planning up to 749 residential units, more than 410,000 square feet of office, retail and shop space and a 150-room hotel. The city approved York Properties’ master plan in 2006, and the company bought the property for $10.2 million in 2007, the NewsObserver reports. Once the recession hit, the project was canceled, and Wells Fargo took ownership of the site in 2010 following foreclosure.
Pappas now has the property under contract and proposes a smaller project, with more hotel rooms, fewer apartments and less retail and office space. The new version includes a maximum of 525 apartment and condo units, a 200-room hotel, up to 250,000 square feet of office space and up to 60,000 square feet of retail space.
Peter Pappas, president of Pappas Properties, told the NewsObserver that the revised plans seek to limit the amount of grading in order to preserve as much of the hillside as possible. The case had a first public hearing before the city of Raleigh’s Planning Commission earlier in May.
Should the rezoning request be approved, the development would be Pappas Properties’ first venture in the Triangle. The company said it would first focus on the development of 315 apartment units in six buildings. It is estimated that the first phase of the project, requiring an investment of approximately $40 million, would be complete in about three years.
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