Hillsborough Street Project Headed to Arbitration
Construction stopped on the Hillsborough Lofts apartments and retail buildings in December, but many hope the project will begin again now that arbitration could settle the disputes surrounding the project. The project is taking place on Hillsborough Street in Raleigh at the site of the old Two Guys Pizza building. The concrete foundation and basement of the new structure is nearly complete, but there has yet to be any progress of the vertical construction of the new structure.
According to Raleigh developer Cary Joshi, who is the owner of the project, the significant delays led to the termination of the existing construction contract with Wright Construction Co. of St. Louis. They were the second general contractor hired by Joshi, after the first with Fountainhead Design & Build was ended because of delays.
Joshi claims the revised finished date for the project is now May 2017 and the budget is approximately $15 million. He estimates approximately seven months of construction remain. The building will feature 24 student housing units and street level retail. It is located across from North Carolina State University’s D.H. Hill Library and is one of several new housing projects along Hillsborough Street.
According to the attorney for Wright Construction, there is a mechanic’s lien against Hillsborough Lofts LLC, but no lawsuit. Many subcontractors have also filed liens against Wright Construction and Hillsborough Lofts for non-payment of services.
Joshi is hoping to find a new contractor, but the existing disputes will be settled through arbitration, hopefully making it possible for the project to move forward, regardless who is involved.