What's next for South Hills development in Cary after failed sports venue impacts small businesses

Construction on Cary’s oldest mall is expected to start next year, according to developers.

The future of the South Hills project seemed uncertain after Cary residents voted against previous plans for a sports venue and community center.

WRAL Investigates got an inside look at what’s next for the development: renovating an old car dealership into a fine arts and shopping space.

The Carolina Ballet will own about half of the 70,000 square feet. CEO Zalman Raffael told WRAL News the ballet will convert its space into studios, administrative offices and storage.

“The first thing that crosses my mind is hope,” Raffael said. “I just believe that having these art forms more in the fabric is really transformative, and we see that in big cities. We see that in cities in other parts of the world; we don't see it that much in growing cities around the country yet, and I want to be a part of ensuring that it is here.”

He said ownership helps the company to save money in the long run. This partnership, he said, will also help with visibility and recognition.

“I would like the company to have some control over its future, which is really at the crux of owning the space,” Raffael said. “I've been looking for many years, on behalf of the ballet, to find a space for us to own for seven years, and they are the first people who were willing to sell us a property that wasn't inflated, like triple the cost of what it is on the books.”

Loden Properties partner Henry Ward said the studios will be separated from the rest of the building by floor-to-ceiling glass.

He said it will blend fine arts, retail and public gatherings and offer “an up-close view of the activities that go on within that space.”

The building is expected to be open and running in 2028.

Failed sports venue’s impact on small businesses

Ward said the building will be the “early anchor” of the district – a pivot from previous plans to anchor it with the sports venue.

Debra Barkett owns Déjà vu Thrift Store, which was once located just across the road. The store helps fund a nonprofit that supports survivors of abuse and addiction. 

Robert Brown, a spokesperson for the Loden Properties, told WRAL the business owners were originally provided estimates of construction beginning in 2024 or 2025. 

“Some tenants chose to proactively vacate but were never asked to leave,” he said in an email.

While developers did not ask businesses to leave, notices obtained by WRAL Investigates show that the landlord did not renew leases as is because of the planned redevelopment. Instead, business owners were offered short-term leases.

Barkett, along with several other businesses, moved out of their storefronts. Some businesses took the chance of staying.

In November 2024, voters rejected the bond package that would have helped pay for the sports venue.

While developers were clear that the project was not dead after the vote, questions lingered about new plans for more than a year.

“It's just a lot of empty buildings, and it's kind of sad, because your local businesses are getting pushed out by developers,” Barkett said. “Well, the comic shop and Thai Villa are a couple of the only ones left.”

WRAL Investigates took those concerns to Ward.

“In the world of delivering projects of this scale, things will change, timelines will change. In the case of a bond, voter sentiment will change,” he explained. “I think it's understandably frustrating from the tenant's perspective that many times we don't have the answer in terms of an exact start date of, 'this is the date that we know that this building might be demolished or might be repurposed.' It is a bit of the nature of the business.”

When asked if the buildings would still be demolished, Ward said they are working on the project in phases over the next five to 10 years.

“The one thing we won't do is go and proactively scrape a site, especially with it being a home for tenants,” he said. “Once you knock a building down, there's probably a three-to-four-year gap before a new building replaces it. Our goal across the street is, again, a phased development that is flexible in terms of timing.”

Ward said there could be opportunities for some of the small businesses to be a part of South Hills in the future.

“We're going to have space to lease, and then, like all projects, it's a matter of just finding the right match-up of tenants to available space in terms of size and timing,” he said.

Barkett worries that those opportunities will still price out small businesses.

“Local businesses can't compete with corporate,” she said. “We are at risk of going under because we lost our thrift store. Our thrift store was bringing in $8,000 to $12,000 a month in income. Not only did everyone lose their job, part of my salary came from there.”

Barkett worries about the future of her nonprofit, Hope Connection International, since it is no longer receiving revenue from the thrift store. 

Since Barkett moved out, Ultimate Comics took over her old space for storage and found a new storefront. Founder Alan Gill says sales have gone up since moving to the new location.

“The public, I feel they were already being conditioned that the shopping center was going away. So, traffic was down,” he said.

Gill said the relocation was stressful.

“It was a year of not sleeping and worrying about moving this store.”

However, he said it all worked out fine, and he understands his circumstance is the product of running a business.

“This space is much nicer, and our sales have been up because of the move, and we're still leasing that spot, so we're using it as a pop-up now. So, for us, it's kind of the best of both worlds,” Gill explained. “The landlord always reserves the right to move you or shift you.”