Nashville-based Fresh Capital Group plans to buy and redevelop the property at 1601-1609 Washington St. E. (right). Two new restaurants would go into the building.
CHARLESTON, W.Va. — A major development in the works for Charleston’s East End would bring four new restaurants to the neighborhood.
Last week, the Charleston Urban Renewal Authority signed off on a development agreement with Fresh Capital Group, a Nashville-based commercial real estate development company that also invests in fledgling restaurants looking to expand.
The company tentatively plans to rehab 1601-1609 Washington St. E., the long brick building across from Bluegrass Kitchen.
Two restaurants would go into the 7,500-square-foot space, which CURA purchased three years ago for about $145,000.
The company also plans to construct a two-restaurant building in the 1300 block of Washington Street East on an empty lot CURA owns next to Rite-Aid. It was previously the site of a Burger King.
“We invest primarily in the fast-casual food [concept],” said Fresh Capital spokesman Matt Bodnar.
It’s the same atmosphere one might find at a Chipotle or Panera — a step up from fast food, but still quick enough to grab on your lunch break.
“We invest in companies, [then] layer in our infrastructure and systems to enable them to scale and grow,” Bodnar said. To date, Fresh Capital has partnered with nearly 20 restaurant brands.
One of the largest of those is planned for the potential East End development. Taziki’s, a Mediterranean cafe, has more than 40 locations around the U.S.
The other three restaurants would include Little Donkey, a Mexican-style taqueria, Hugh-Baby’s BBQ & Burger Shop and Two Birds Chicken, selling fried and rotisserie poultry.
Charleston City Councilwoman Keeley Steele owns three establishments near 1601 Washington St. East, including Bluegrass Kitchen. For years, she’s had to look at the vacant storefronts across the street.
“I’m happy it will be occupied,” Steele said. “We’ve worked really hard to help develop this corner, and we’ll continue to do that.”
Steele added that she’d like to see more retailers invest in the East End to help complement the existing and future restaurants.
It’s also possible that Fresh Capital will renovate a few existing apartments on the second floor of 1601 Washington St., to return it to a mixed-use building.
CURA had advertised a request for proposals at least twice since acquiring the building in 2013, with few interested investors.
When they received a proposal from Fresh Capital earlier this year, “their explanation was that … in order to carry the overhead [costs], they needed more than that one location, so they asked about purchasing the 1300 Block of Washington,” said Jim Edwards, CURA’s former executive director.
Under the development agreement, Fresh Capital would pay $250,000 for 1601-1609 Washington St. E. and $350,000 for the property in the 1300 block.
“We decided we wanted to continue to own a piece of that [property] to possibly develop the block further over time,” Edwards said.
While a development agreement is a promising step, the company hasn’t yet fully committed to the project.
“Now that the agreement is signed, [they] have 180 days to evaluate the property and put the deal together,” Edwards said.
“After that, if they’re still prepared to go forward, they have to actually close on the property and have time limits to begin construction. They could still not pursue it, but I doubt that’s going to happen.”
The company has already paid CURA a purchase deposit of $60,000 and a performance deposit of $40,000.
Bodnar was reluctant to give any timetable as to when the company might start development.
He did say that a number of factors make Charleston an attractive city for the company, including the number of state employees who work at the Capitol complex nearby.
This wouldn’t be the first major project Fresh Capital Group has done in the Mountain State.
The parent company, Fresh Hospitality, completed a $25 million project through a public-private partnership at West Virginia University’s Evansdale campus late last year called Evansdale Crossing.
The 100,000-square foot building houses a half-dozen eateries that are partnering with the company.
Fresh Hospitality’s managing partners, Doug Van Scoy and Michael Bodnar, are WVU alumni. Both declined to comment for this story.
Despite two major projects at CURA-owned properties that fell through this year — the former Holley Hotel site on Quarrier St. and the former B&B Loans site at 170-178 Summers St. — city officials remain optimistic about this venture, including Mayor Danny Jones.
Jones said he’s known Van Scoy since he first got involved in the restaurant business decades ago.
“I know he has a great reputation. The fact that he’s involved makes me optimistic,” Jones said.
While the city’s business districts face their own challenges, Jones believes this deal could be the impetus for other interested investors to pursue their own projects down the road.
“In other words,” he said, “development begets development.”
Reach Elaina Sauber at [email protected], 304-348-3051 or follow @ElainaSauber on Twitter.
