These Wilmington apartments damaged during Hurricane Florence will finally see renovations

An apartment building with nearly 100 years of history in downtown Wilmington could see building-wide repairs and renovations under a new owner.

A developer has plans to acquire and rehabilitate the Cape Fear Hotel Apartments, a nine-story building situated at the corner of South Second and Chestnut streets. Those plans include rehabbing the top three floors of the building, which have remained out of use since Hurricane Florence damaged the property four and a half years ago.

The Wilmington City Council recently approved a bond issuance of up to $13.7 million for the acquisition and renovation of the property. City money will not be used for this project but will be paid by the developer.

Under federal tax law, the council’s approval was needed to secure the bond’s tax exempt status, said Kristen Kirby, a partner with McGuireWoods, a law firm working with the developer.

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Widespread renovations planned

The developer, CFH Apartments, LP, has plans for substantial renovations across the building’s 91 apartments. The developer will first build out the top three floors of the building and then plans to renovate other apartments in the building, Kirby said. Each apartment could see an investment of up to $100,000.

Building out the unoccupied floors will allow the developer to move current residents to other units while their apartment is renovated to avoid resident displacement. A timeline for the build out and renovations is unclear.

Damage stems from hurricane

After Hurricane Florence hit the Wilmington area in 2018, Cape Fear Hotel Apartments remained closed for more than a year while the building underwent “extensive work” to its interior and exterior, according to past StarNews reporting.

In the weeks after the hurricane made landfall, more than 2,000 Wilmington residents were displaced from several complexes, including the Cape Fear Hotel Apartments, Jervay, The Glen and Market North.

Funded by millions in tax-exempt bonds

The complex’s purchase and rehab will be financed by multifamily housing revenue bonds issued by Wilmington Housing Authority in an amount of up to $13.7 million. The bonds will be paid by the developer and are tax-exempt, a status that allows the developer to qualify for low income housing tax credits, Kirby said.

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A rich history in Wilmington

Once a 150-room hotel, the building was converted into an apartment building in 1980. The structure, which opened in January 1925, is the only surviving major downtown hotel built before World War II.

The structure cost $400,000 to build in 1924 and was designed by G. Lloyd Preacher, an architect who designed other major hotels in Charleston, Atlanta and St. Petersburg, Fla.

Today, the apartment building provides affordable housing for seniors.

Reporter Emma Dill can be reached at edill@gannett.com.

This article originally appeared on Wilmington StarNews: Cape Fear Apartments to undergo renovations