New Owner Plans to Reignite Charleston 's Cigar Factory

By Christine Perez - Sep 1, 2007 12:00 PM

Charleston , S.C. , has been on The Simpson Organization's to-do list for about five years. The Atlanta-based real estate investment firm is finally getting its chance with the Cigar Factory, a 232,000 sq. ft. historic property it acquired in June. Simpson plans to redevelop the landmark into a mix of upscale condominiums, retail and office space.

The Cigar Factory is one of Charleston 's largest buildings, occupying an entire city block in the city's Upper East Side . It was built in 1881 as a cotton mill, but sold in the early 1900s to American Tobacco Co., which manufactured cigars there until the 1970s. The property was then redeveloped into office space and found relative success under various owners. But in 2006 the factory lost its largest tenant, Johnson & Wales University , leaving the building with a vacancy of roughly 70%.

The building was sold by a private group led by former Jupiter Realty Corp. executive J. Luzuriaga, one of the most active real estate investors in Charleston . Robert Rizzi, executive vice president and partner of New York-based Broad Street Advisors LLC, put the transaction together. “ Charleston is one of the stronger secondary markets on the East Coast, but there aren't a lot of deals large enough to draw regional or national investors there,” says Rizzi. “The Cigar Factory is one of the larger properties on the Charleston peninsula. That, along with its historical nature, combined to attract quite a bit of interest.”

Boyd Simpson, president of The Simpson Organization, says the firm beat out other contenders by paying just under $20 million. It plans to pump at least that much — likely more — into the building's redevelopment. Simpson says it took “about five seconds” to decide on a mixed-use approach. Plans call for 77 residential condominiums, roughly 35,000 sq. ft. of retail space and 30,000 sq. ft. of office space. The condos will range in price from $400,000 to $1.4 million.

Simpson's portfolio of approximately 35 properties in the Southeast is valued at about $600 million. Other historic properties the firm has redevelopment include The Georgian in Athens , Ga. and Tryon Plaza in Charlotte , N.C.

“There is terrific underlying value in buildings that were trophy properties when built, in good locations, but perhaps have become neglected over time,” Simpson says. “We bought the Cigar Factory for about $80 per sq. ft.; it would cost $300 per sq. ft. to reproduce it today.”

The real estate investor says Charleston meets his company's core requirement: a supply-constrained market that's showing demonstrable growth. He aims to start redevelopment of the Cigar Factory in the first quarter of 2008 and reopen the building in mid-2009.

The historic preservation involves replacing about 400 windows that measure 5-by-12 feet each, some of which had been covered up over time. Besides views of the city's downtown, Charleston Harbor and the Ravenel Bridge, other amenities will include a pool, health club, a private bar for residents and plenty of parking — a rare commodity in Charleston.

One component of the project that isn't changing is the name. “Everyone in Charleston has called it the Cigar Factory for more than 100 years,” says Simpson.“It's a grand, historic building in a city that loves its history.”

The Cigar Factory

Wednesday, June 13, 2007 The Charleston Market Report

Many of you are aware that The Cigar Factory was recently sold to The Simpson Organization, based out of Atlanta , GA. I actually had the fortunate experience of doing the Market Feasibility Analysis for The Cigar Factory before the sale was finalized. Boyd Simpson, President of the The Simpson Organization, has given me permission to discuss the project.

Anyone who has followed this website realizes I am very concerned about the inventory of homes/condos in certain parts of Charleston . I always get asked the question if I were going to buy property in Charleston where would I buy. My answer is I would buy a unique historic property in downtown Charleston and renovate it. The unique aspect about downtown Charleston and historic property is that there is a very low supply of these homes/condos and very strong demand. Low supply and high demand generally equals appreciation and that is why the housing market "Below the Crosstown" in downtown Charleston is one of the most stable in the Tri-County area, state and country.

Here are a couple reasons why The Cigar Factory project should succeed:
* The Cigar Factory has a rich history and is on the National Register of Historic Places.
* The Cigar Factory will be a "destination location" of urban style living in downtown Charleston .
* The City of Charleston is committed to redeveloping the Upper East side of Charleston .
* It is one of Charleston 's most recognizable buildings and is poised to play a major role in the redevelopment of Charleston 's historic Upper East Side .
* The building has a spectacular historic feel which includes exposed brick, hardwood floors, extra wide hallways, 14' and 30' ceilings with exposed ceiling beams, substantial on-site parking and great views of downtown Charleston , Charleston Harbor and the new Ravenel Bridge .
* The Charleston economy remains strong.
* Proposed improvements to the building will include more windows, a roof top deck, fitness center, pool, private courtyard and a business center.
* The weighted average pro forma price per square foot of The Cigar Factory is lower than the average price per square foot for downtown condo projects.
* Absorption of downtown condo projects has been strong.
* The Cigar Factory units will be higher quality than many of its competitors at a lower cost per square foot.

You just can not duplicate historic cotton/cigar factories with views in downtown Charleston . Add in some nice retail stores, a restaurant and office condominiums located next to the Ravenel Bridge and you have a very unique property. The Simpson Organization is very experienced with renovating similar types of buildings all over the country. Currently, The Cigar Factory is not being utilized to its highest and best use.

This will soon change and trust me when I say The Cigar Factory is going to be a "gem" and a building all Charlestonians can be proud of very soon.

Von Baumwolle über Zigarren zu Eigentumswohnungen

Von Katy Stech / The Post and Courier / Freitag, 8. Juni 2007

Die Zigarrenfabrik an der East Bay Street.

Die Zigarrenfabrik, eine ehemalige Baumwollspinnerei, die zu einem bedeutenden Wahrzeichen von Charleston geworden ist, hat den Besitzer gewechselt und ist von ihrem neuen Besitzer für eine andere Art der Nutzung vorgesehen.

Die Simpson Organization Inc., ein Immobilienunternehmen mit Sitz in Atlanta, hat das Gebäude mit Kultsymbolcharakter an der East Bay/Columbus Street für rund 20 Millionen US Dollar gekauft.

Die Firma beabsichtige, das Gebäude in eine Mischung aus Eigentumswohnungen, Ladengeschäften und Büros umzuwandeln, sagte Boyd Simpson, der Präsident des Unternehmens.

Simpson sagte, sein Unternehmen plane, die oberen Stockwerke zu 77 Eigentumswohnungen im Loftstil auszubauen. Für die Gewerbefläche im Erdgeschoss sei eine gemischte Nutzung vorgesehen, mit 26.000 Quadratfuß Bürofläche und 37.000 Quadratfuß Einzelhandelsfläche, wo auch ein Delikatessengeschäft und ein renommiertes Restaurant als Aushängeschild des Gebäudes untergebracht werden könnten.

Simpson zufolge könnten die ersten Bewohner ca. ab Jahresmitte 2009 einziehen. Der Preis für die Eigentumswohnungen werde sich zwischen ca. $ 380.000 und ca. $ 1.4 Mio. bewegen.

Bei den Wohneinheiten könne die überdimensionierte Architektur für die Ausstattung der Eigentumswohnungen mit Deckenhöhen von 15 Fuß genutzt werden und die breiten Fenster, durch die früher das Sonnenlicht in die überfüllten Fabrikhallen fiel, übernommen werden.

"Man hat einen Raum mit fantastischem Volumen, der durch diese breiten und attraktiven Fenster wunderbar mit natürlichem Licht durchflutet wird“, sagte Simpson.

Das Gebäude an der Straßenecke steht auf einem vier Morgen großem Grundstück in der Nähe der Auffahrt zur Ravenel Brücke. Der vorherige Besitzer des Gebäudes war ein Unternehmen, zu dem die in Chicago ansässige Jupiter Realty Corporation und mehrere ihrer Tochterunternehmen gehören, die sich von dem Unternehmen trennten, nachdem dieses 2005 die Zigarrenfabrik für $ 14,7 Mio. erworben hatte.

"Der Verkauf war sinnvoll”, sagte J. Luzuriaga, ehemaliger leitender Mitarbeiter bei Jupiter und nunmehriger Partner bei dem in Charleston ansässigen Unternehmen J.L. Woode Ltd.

In den letzten Jahren war die Fläche in der Zigarrenfabrik zu 100 % vermietet. 2006 verlor die Zigarrenfabrik aber ihren größten Einzelmieter mit der Schließung des Campus der Johnson and Wales Universität für kulinarische Künste.

Simpsons Immobilienunternehmen besitzt 36 Objekte im ganzen Südosten, darunter viele alte Gebäude, die umfassend modernisiert wurden.

So baute das Unternehmen z.B. vor kurzem eine frühere Maissirupfabrik im Stadtzentrum von Atlanta zu einem 85.000 Quadratfuß großem Bürogebäude für Künstler um.

Die Zigarrenfabrik ist eines von mehreren denkmalgeschützten Gebäuden der Simpson Gruppe.

Der Immobilienentwickler sagte, dass er über die nachlassende Nachfrage nach Eigentumswohnungen in Charleston nicht übermäßig besorgt sei. Er halte die Halbinsel für einen einzigartigen Markt, der auch weiterhin einen stetigen Strom von Käufern anziehen werde.

"Ich glaube nicht, dass unbedingt Zeiten des Booms erforderlich sind, um mit dem Projekt Erfolg zu haben – nur normale Zeiten”, sagte Simpson.

Women in the Arts Panel Luncheon

at 103 west – march 22, 2007

On Thursday, March 22, Synchronicity hosts the fifth annual Women in the Arts panel luncheon at 103 West, to connect Atlanta ’s most prominent women artists, funders and advocates with corporate leaders for a lively discussion about the key role women play in our community’s cultural organizations.  The theme for the 2007 luncheon is “Women Leaders in Performing Arts and Business – What Do They Have in Common?” and is focused on answering key questions:  Do women leaders in the arts and business face the same struggles and successes?  What can they learn from each other?  How can the arts inspire us to transcend the racial, cultural, economic, and political barriers that can separate our community?

Alston & Bird LLP, Atlantic Trust Private Wealth Management, Cbeyond and The Simpson Organization are the Presenting Sponsors for this event.  “This event is a wonderful opportunity to honor women leaders from both the arts and corporate sectors,” says event co-chair and Chief Information Officer at Cbeyond, Joe Oesterling.  “There are many misconceptions about artists and people in business, so we believe sharing successes and challenges from each can illuminate the commonality between these communities.”  This spirited and informative dialogue will be moderated by Synchronicity Producing Artistic Director Rachel May .  Luncheon guests also will be treated to a look into Synchronicity’s Playmaking for Girls program. 

The panel includes:

Helen Berg, CIO of IBM Internet Security Systems

Carolyn Cook, actress/producer

Laura Jackson, Assistant Conductor/American Conducting Fellow, Atlanta Symphony Orchestra

Celeste Miller, dancer/choreographer

Shirley Mitchell, Senior Vice President of Market Development, Bank of America

Individual tickets to Synchronicity’s Women in the Arts Panel Luncheon are available for $50 each ($40 for non-profit organizations and ACPA members).  Table sponsorships begin at $500.  Committed sponsors include Deloitte, Lamar, Archer & Cofrin LLP, Peg and Bill Balzer, Checkfree, Cisco, Deutsche Bank, Agile, Protiviti, Skirt Magazine and Leigh Hunter and Lucy Skelton   

For the listings editor:

Synchronicity Performance Group presents the fifth annual Women in the Arts Panel Luncheon - connecting Atlanta ’s most prominent women artists, funders and advocates with corporate leaders for a lively discussion about the key role women play in our community’s cultural organizations.

Thursday March 22 from 11:30 a.m. – 1 p.m.

103 West - 103 West Paces Ferry, Atlanta , GA   30305

Individual tickets are $50 and table sponsorships are available at $500, $1,000 and $2,500. 

All proceeds benefit Synchronicity’s 2007-2008 season.

For tickets – call (404) 523-1009 or visit www.synchrotheatre.com

 
About the Company

Synchronicity was founded in 1997, and is led by Producing Artistic Director Rachel May. Since arriving on the Atlanta scene, Synchronicity has produced gutsy, high-quality and entertaining plays that resonate with our audience, our community and our lives.  We support the work of women.  We take artistic chances to make our audiences think about important issues.   We partner with community groups to deepen the relationship between our audiences and the work.  Synchronicity is in residence at 7 Stages theatre.

Our Mission :  Through collaboration, Synchronicity Performance Group creates compelling, diverse and thought-provoking theatre.   We are dedicated to supporting women artists, forging community partnerships and developing new work. 

Wake County leases 44,000 square feet at One Bank of America

Plaza in downtown Raleigh C
FOR IMMEDIATE RELEASE – March 2, 2007
B Richard Ellis
 
Raleigh , NC –
CB Richard Ellis is pleased to announce that Wake County has signed a lease for 44,000 square feet of Class A office space at One Bank of America Plaza in downtown Raleigh . The Wake County offices of the Register of Deeds and Revenue Department will occupy the 2nd and 3rd floors of One Bank of America Plaza beginning in September.
 
CB Richard Ellis was the sole broker in the transaction. CBRE broker Mark Prevost, Senior Vice President, and Sales Associate, John Brewer, represented the landlord, TSO Fayetteville , LLC, an affiliate of The Simpson Organization, Inc. “One Bank of America Plaza ownership is very pleased to provide Wake County office space for relocation of the offices for the Register of Deeds and Revenue Department.” said Prevost. “They will be fine additions to the One Bank of America Plaza tenant
roster.”
 
One Bank of America Plaza is a Class A office building totaling 366,842 square feet. The building is located at 421 Fayetteville St. in the heart of downtown Raleigh and offers brilliant views of the city’s skyline. Recent renovations to One Bank of America Plaza include a complete re-design and remodel of the building’s first floor lobby, newly renovated retail space for lease, a new conference center complete with three separate conference rooms and a catering kitchen, and a new state-of-the-art fitness facility. CB Richard Ellis Press Release
 
About The Simpson Organization, Inc. The Simpson Organization, Inc. (TSO) is a real estate investment firm based in Atlanta , Georgia . TSO owns and manages a portfolio of approximately 30 commercial properties located in Georgia, Florida, North Carolina , South Carolina and Tennessee with an aggregate market value of approximately $500 million. The firm provides advisory, leasing, asset management, and property management services to high net worth individuals, families and institutional entities. TSO’s portfolio primarily consists of neighborhood and specialty centers, multi-tenant office buildings, and urban land located in primary southeastern markets.
 

Raleigh's premiere address

February 27, 2007

One Bank of America Plaza has experienced a renaissance, much like all of downtown Raleigh .  Under new ownership, by The Simpson Organization, One Bank of America Plaza has installed a new state-of-the-art conference center and a fitness facility for use by the tenants.  Also with a completion date at the end of February 2007, the first floor lobby is undergoing a complete renovation.

While continuing to offer an upscale environment with blue chip rent roll and convenient underground parking and the finest building amenities and services, the building is looking to include some exciting retail opportunities as well.

For tenants who want the entire downtown experience and convenience, One Bank of America Plaza is the place to be.

Council Approves City Plaza Schematic Design

February 6, 2007

The Raleigh City Council today voted 6-2 to approve a schematic design of the new City Plaza in the 500 block of Fayetteville Street . The design concept seeks to create a plaza, or public gathering place, that reinforces Raleigh ’s image as being one of the most livable cities in the country.

The schematic design was drafted using urban design parameters that were approved by the City Council last fall. Those parameters center around five major areas: accessibility/sociability, legibility/organization, safety, sustainability/maintainability, and programmability.

Key components or themes in the schematic design are:

• The plaza design should include creative infrastructure -- i.e., ample conduits/connections, pipes and foundations -- in the right locations that will allow a great deal of flexibility in discussions about future markets, arts and festivals;
• The plaza should be smartly designed to support opportunities for ground-level uses. For example, the schematic design proposes retail pavilions on the edge of the plaza that encourage people to linger. The Simpson Organization, the owner of the Bank of America building in the plaza area, has committed to design, build, lease and manage the pavilions;
• The plaza should be high tech in that it has wireless connections to the internet;
• The plaza design should “encourage” entrepreneurs because properties adjacent to the plaza potentially contain approximately 45,000 square feet of new retail and restaurant space. For those entrepreneurs who are not ready to lease built space, the plaza will allow for market tents and vendors without having to close the street to traffic;
• The plaza should be the outdoor entertainment heart of downtown in that it will be positioned and designed to a host a variety of events, including concerts, parades, markets and street performers; and,
• The plaza should be designed to function as “a meeting place, front porch and living room” for nearby residential, hotel and office developments. This recognizes that new residents and visitors are keys to the revitalization of downtown.

The schematic design was developed by a design team, with considerable input from the public at design workshops last fall. The design team consisted of consultant Kimley-Horn & Associates and representatives from Project for Public Spaces, a nationally known consultant on urban design and public spaces, and DesignBox, a local creative design collaborative. Also on the design team were representatives from the City’s Planning Commission, Appearance Commission, Arts Commission’s Public Art Committee, and the Parks, Recreation and Greenway Advisory Board.

To complete full design development drawings of the City Plaza based on the schematic design, the City Council approved a contract amendment with Kimley-Horn in the amount of $345,000. Council members also authorized the City’s Arts Commission to begin soliciting artist participation to refine certain aspects of the plaza design, and directed City Manager Russell Allen to develop agreements for public use of the plaza area and for private construction of the plaza’s retail pavilions.