Two proposals could bring 300 apartment units to Petersburg

PETERSBURG More than 300 new upscale apartment units could be built along the South Market Street corridor in the next five years with hopes of establishing a vibrant residential community downtown.

Richmond developers want to convert the former Brown & Williamson tobacco manufacturing complex at 109 S. Perry St. and the adjacent Star Tobacco cigarette plant at 16 S. Market St. into oneand two-bedroom residential units. Plans also call for the development of town houses and office and commercial space.

The two developments combined, estimated to have an initial investment of about $60 million, would help meet an increasing demand for modern residential units in the Petersburg region, particularly as Fort Lee expands.

The projects need rezoning approval from City Council.

"These projects are elements of creating a residential village within the central part of the city," Petersburg City Manager B. David Canada said. "This is what you would expect in the downtown areas," he said, noting the projects reflect a trend for modern and upscale housing within walking distance to restaurants and shops, similar to Richmond's Tobacco Row.

Michael Glass, a partner in both of the redevelopment projects, agreed.

"The development of these buildings represents far more than just turning a few old buildings into apartments," Glass said.

"We are building a destination center that will allow you to leave your car and walk to shopping, employment and dining within walking distance from your home. Nothing like this is offered anywhere nearby," he said. "The architecture of these buildings is beautiful and we look forward to maintaining their beauty for generations to come."

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B&W Acquisitions LLC, a partnership formed by members from Richmond-based Franklin Development Group, is planning to build 240 units at the 6.76-acre Brown & Williamson complex.

The former cigarette plant closed in the 1980s.

The project in the block bounded by West Wythe, Perry, Brown and South Market streets is to be completed in several phases.

The first phase is expected to cost about $50 million, said Glass, one of the partners at Franklin Development.

Part of the first phase includes renovating two buildings for up to 150 apartment units. A restaurant or retail space is planned for the first floor of one of the buildings. Amenities would include a fitness center and swimming pool.

An additional 90 units would be built in the complex's Cameron building.

The units will have one or two bedrooms and be priced at about $850 to $1,200 a month.

Ten for-sale town houses on the South Market Street side of the block will be built in later years, depending on demand.

The developer envisions acquiring other nearby parcels for a total development of more than 15 acres.

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In the block north of the Brown & Williamson complex, 2J's and 1A LLC, a partnership of several Richmond developers, plan to build 75 luxury units at the 3.5-acre Star Tobacco property.

The $9 million project, bounded by East Washington, South Market, Davis and West Wythe streets, calls for apartments priced at $850 for a one-bedroom unit and $1,100 for a two-bedroom unit. Developers plan to add a fitness center.

A second phase would include space for retailers and restaurants and a four-story building for residential or commercial offices.

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The two proposed developments are in an area undergoing change, where numerous other residential and commercial developments are planned or under way.

The projects also are near an $18 million multilevel transportation hub on Washington Street that is set to open in June and is just a block away from the 3-acre site where the city plans to build a $16 million public library.

Across the street from the Star Tobacco property, for instance, a developer is building 22 units in the Harlow Hardy property. Another 90 units also are planned at the Hinton Street Apartments at Hinton and North Market streets.

The Old Towne, Halifax Triangle and other historic districts are nearby.

Developers and city officials said the demand for apartments is particularly high in this area.

Downtown Petersburg is expected to continue to see more redevelopment in the coming years particularly with the expansion of Fort Lee, which is expected to bring thousands of new residents to the area. The planned opening of a Rolls-Royce aircraft engine plant in Prince George County also should create about 500 jobs.

The new Southside Regional Medical Center and other commercial development along the South Crater corridor are considered key components of a downtown Petersburg redevelopment boom, Canada said.

Occupancy rates in other new developments downtown have been strong, he said.

"The city represents a terrific opportunity via its inventory of buildings, pent-up demand as well as a local government dedicated to sustained growth," Glass said.

"We believe that between our developments and the inventory of beautiful historic homes, a resident can move within the city throughout their entire home ownership and rental life cycle," he said. "Further, as Petersburg continues to develop its downtown, our projects will offer a perfect complement, much like [Richmond's] Tobacco Row or Shockoe Slip/Bottom."

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City Council will hold a public hearing April 21 to change the rezoning to allow for the redevelopment of the former Brown & Williamson complex and the Star Tobacco building.

City officials said they are confident the former tobacco buildings will be successfully turned into residential areas.

"I am encouraged that the anticipated revitalization of this property will bring additional businesses and market-rate housing to the downtown area, while maintaining the city's historic fabric through the renovation of existing buildings," Petersburg Mayor Annie M. Mickens said.

"These projects, along with other similar developments now under way, will change the footprint of downtown Petersburg," she said. "The city has been and will continue to work toward full revitalization of our downtown and Halifax Street Triangle areas in the next five to 10 years."

James Hillier, who lives on Perry Street across from the Brown & Williamson complex, hopes the projects will materialize in order to increase the area's property values and to beautify the neighborhood.

"It can't be negative," said Hillier, who has lived in Petersburg for 25 years. "It can't be anything but a plus."

Contact Luz Lazo at (804) 649-6058 or llazo@timesdispatch.com.