Local News

Empty downtown Raleigh condo project closes

Posted May 27, 2010

— The Hue, a 200-unit condominium complex in downtown Raleigh, is "closed until further notice," according to signs posted on the Dawson Street building.

The seven-story building, which is painted in hues of blue and yellow, has sat empty since it was completed last year.

When city leaders helped break ground on the project in September 2007, it was billed as an affordable option for people looking to buy downtown, with units for prices at about $160,000.

According to The Hue's website, fewer than 20 units were under contract, but Wake County property transfer records indicate that no units have actually been sold. Sources familiar with the project told WRAL News that the developers had hoped  to have at least 45 units sold by now.

The building's nearby sales office also is closed, and a message on the answering machine refers callers to John Butler of Prudential York Simpson Underwood's New Home Division. He couldn't be reached Thursday for comment.

"This is sort of a good news, bad news situation," Downtown Raleigh Alliance President David Diaz said. "The bad news is they weren't able to meet their goals for sale of condos. The good news is the strongest demand we have downtown is for apartments. My hope is that The Hue is offered as apartments."

Investors have expressed interest in purchasing the building and converting it to apartments, sources said.


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  • superman May 28, 2010

    I hope the mayor has read this. I am sure that since he thinks downtown is so great that he can live across the street from where he sits all day. Do you really think they thought that people would actually spend that much to live downtown. Where do they park? There are no stores downtown where they can shop. They can live and work downtown-- but you can forget about the shopping. If you lived there-- after a couple months you would be going elsewhere to eat anyway.

  • Mugu May 28, 2010

    These units are priced at about double what they should be... get me a 2 for 1 deal and I am in.

  • manofjustice May 28, 2010

    I went there looking to buy a condo and they kicked me out. They weren't friendly to me at all. I told them I could pay them after I started working but they insisted I wasn't good enough. I am glad the place is going to rot.

  • shortcake53 May 28, 2010

    I really dont see the draw to living downtown. If I lived there I would be afraid to step out after dark, there is nothing there
    to do, its not a particularly attractive place, and there is nowhere to shop. So I'm not surprised to hear the places are not filling up.

  • RaleighRob May 28, 2010

    Demand for downtown living isn't tanking or anything. The problem is that this building is high-dollar condos, when most of the people who want to live downtown are looking for a reasonably-priced apartment. (And there are too few of those downtown, actually.)
    Convert the Hue to an apartment building, and price the rent to a reasonable level, and it'll fill up. With Campbell Law School across the street, it'll be full in a couple months, tops.

  • Adelinthe May 27, 2010

    whatelseisnew - "I have no idea why anyone would want to live in downtown Raleigh."

    Maybe that's what the problem is.

    These were to be geared towards young single professionals who worked downtown, wanted to live near where they work and be near the nightlife provided by the new Coliseum and the arts theater.

    Trouble is, many of those got laid off.

    Maybe that's what happened.

    God bless.


  • dahman May 27, 2010

    wow.........an entire complex vacant. thats amazing

  • Frank Downtown May 27, 2010

    The sales people were not too friend when I looked at them earlier in the Spring.

  • simracer68 May 27, 2010

    "222 Glenwood are doing reasonably well."

    Actually, they're not. 222 Glenwood is offering an "$8000 virtual tax credit" since April 30th came and went...this means they're throwing an extra $8000 "incentive" or whatever at each unit to sell it. This will drag the values down as appraisers have to adjust for those "perks" when they reconcile each unit's actual sale price devoid of any special seller contributions like an "$8000 virtual tax credit" out of their closed price - prior to being used as a comp against other sales in the development.

  • ThatGuyAgain May 27, 2010

    whatelse (and others), I've wondered that very thing myself. I have a fenced yard for my dogs, a two car garage, 3 bedrooms and 2 baths in the RTP area and my cost basis + two bathroom remodels + an upcoming kitchen remodel + new siding, roof and windows all totals less than the entry price for these glorified apartments. Trendy is good, but stupid is not.