Asana, MRP Starting $250M Office-to-Resi Conversion in Charlotte

The office-to-residential trend that has begun to offer glimmers of hope in central business districts across the nation will get its first-ever turn toward mixed-use in Charlotte’s Uptown district, where developers plan to remake the former headquarters of one of the metro’s lynchpin legacy corporations.

A joint venture of Asana Partners and MRP Realty has filed for permission to tear down the lobby and atrium portion of the 800,000-square-foot former Duke Energy building at 526 South Church Street, at the corner of Brooklyn Avenue, the Charlotte Business Journal reported.

The $250 million redevelopment — known as the Brooklyn & Church project — is expected to bring 448 high-end apartments and 25,000 square feet of retail to the 1970’s-era building, along with a standalone retail building of 30,000 square feet.

The conversion plan includes a 60-foot wide pedestrian thoroughfare between the apartments and retail building, as well as other changes that will trim 230,000 square feet from the main structure.

Charlotte-based Asana and MRP, based in Washington, D.C., paid $35 million for the property in December 2022. Reed Kracke, a partner in Asana, said the developers have been working on pre-development over the past year as the building’s namesake tenant made the move into a 40-story tower, dubbed Duke Energy Tower, on nearby Tryon Street.

Kracke said the partial demolition of the Church Street building is expected to start in the fourth quarter.

“We don’t want to do the demolition then have to wait to start the construction, so we’ve aligned the demo work with being able to roll right into the reconstruction,” he said. “We submitted for full building permits in mid-June, and are waiting on that. Those reviews and approvals typically take longer than a demo permit.”

The average rent in Charlotte was $1,584 in May, up a fraction of a percent but way under the 2021 peak, according to Yardi Matrix. While investment sales are down, a solid economy and strong job growth mean the city remains a favorite of investors.