The largest residential development in the city of Spartanburg’s history could soon clear its first hurdle.
Spartanburg City Council on Monday, Oct. 23, will vote on the first reading of a development agreement with Tampa-based Forge Capital Partners for a $30 million, 200-unit apartment community in downtown.
The proposed project site covers 7 acres of an 8.6-acre lot at 215 E. Daniel Morgan Avenue behind the Spartanburg Marriott.
City documents said Forge plans to build “multiple” three- or four-story buildings and on-site parking for 300 vehicles.
The developer hopes to complete the project by July of 2020.
“This project has been some time in the making, and we’re real pleased with the result,” said Assistant City Manager Chris Story. “We’re excited about having a large, modern apartment deal, which is something we’ve needed for some time. And we believe this one is it.”
The project has been in the works for many months.
Under the terms of the agreement, the city will convey the 7 acres to Forge at no net cost.
But should the city elect to sell the site to Forge, a competent commercial appraiser will determine the cost for the site. The city would offset that cost with a direct development grant or a payment to Forge on a “dollar-for-dollar basis,” according to documents.
Forge is responsible for all costs associated with soil remediation or mitigation.
The city has agreed to have the project qualified and designated by Spartanburg County prior to Feb. 1, 2019, to receive reduced property taxes.
In addition to the property, city will provide incentives in the form of an initial fee payment of $25,000 increasing to not less than $275,000 by the seventh annual fee payment.
The project would be situated near a new five-story 70,000-square-foot mixed-use office building by Spartanburg businessmen Andrew Cajka and Jimmy Gibbs that is planned for two lots totaling about 5.3 acres behind the Marriott adjacent to the St. John St. parking garage.
“This project is another clear example of how the quality of life in downtown Spartanburg is reverberating throughout the South,” said Jansen Tidmore, executive vice president of Spartanburg’s Downtown Development Partnership. “People want to live where every day is a positive experience and downtown Spartanburg provides that high level experience. With the addition of this first-class development, we continue to build the density of our core and that density will bolster the entire areas economy. It equates to another crucial piece to our long-term vision for our beautiful downtown.”
Tidmore said the city’s current inventory of apartment units downtown is 318.
Forge’s project in addition to several ongoing developments, including the Aug W. Smith Building renovation and redevelopment of the nearby historic Montgomery building, would boost that inventory to more than 700 units during the next three years.
James Bakker, principal of Greenville-based BF Spartanburg, which plans to add about 70 apartments as part of its renovation of the Montgomery Building, said a few weeks ago he would welcome a new large-scale apartment complex near his site.
Bakker said the demand for downtown housing, the differences in the developments, and the fact that the Montgomery Building will be completed before Forge’s development would not put the two projects into a direct competition.
“We need that 24/7 presence in downtown created by residential development to take us to the next level,” Tidmore said. “I think it will be a great complement to what we have going on in downtown.”
According to the company’s website, Forge is a diversified, commercial real estate investment and investment management company that has executed more than $1 billion in transactions during the past 10 years.
