Former Wells Fargo tower may become a historic landmark amid redevelopment plans
Besides the addition of housing and commercial space, a prominent uptown office tower may have one more change coming: It could become a local and national historic landmark.
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Parts of the former Two Wells Fargo Center at 301 S. Tryon St. may potentially become a historic landmark, according to the Charlotte-Mecklenburg Historic Landmarks Commissions. The 3.4-acre complex includes two office buildings, a glass atrium, plaza and parking garage.
The designation would apply to the 32-story tower and the 12-story hyphen, which connects the two office buildings. The 55-year-old building, under the designation, is going by its original name, Jefferson-First Union Tower.
The proposed designation stemmed from conversations between the commission and building owners Riverside Investment & Development and Singerman Real Estate LLC, according to historic commission Director Stewart Gray.
The Chicago-based duo purchased the complex in April for $36.5 million, a significant savings. The selling price was a $167.5 million decrease from the Mecklenburg County tax assessments value.
Riverside has redevelopment plans for the building that include residential and hospitality components.
A historic designation could limit what changes the developer makes. But according to Gray, Riverside is interested in preserving the parts of the building under the proposed historic designation.
The preservation effort is a change in development direction Charlotte has seen in recent years.
Development in Charlotte has often involved tearing down historic sites.
The 100-year-old Court Arcade building in uptown was demolished in September to make way for a larger data center. And the 94-year-old Midwood Elementary School at 1817 Central Ave. in Plaza Midwood was torn down for apartment buildings.
The Jefferson-First Union Tower was jointly constructed by First Union National Bank and the Jefferson Standard Life Insurance Company in 1971.
First Union was founded in Charlotte in 1908. And in the early 1960s, the bank was experiencing exponential growth. It built the Jefferson Standard Building at the corner of Tryon and Third streets.
But it needed more space.
First Union decided to set up its headquarters around the Jefferson Standard Building. That headquarters became the Jefferson-First Union Tower.
Architecturally, the building is historic because it was the first “late-modern skyscraper” in Charlotte. Late-Modern architect focuses on a sleek design with minimal ornamentals. The buildings were meant to stand tall and proud, according to a commission report.
And the late-modern buildings typically were built for corporate headquarters.
Besides the architecture, the idea behind the Jefferson-First Union Tower is what truly makes it historic.
The tower was the city’s first skyscraper and, at the time, was the tallest building to grace Charlotte’s skyline.
Jefferson-First Union Tower led the way for more skyscrapers to be built in the city. And it was Charlotte’s first development step toward becoming a banking hub, according to Gray.
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“In the late 1960s, there was a concerted effort by the city and business leaders to turn Charlotte into the center of banking in North Carolina,” Gray said. “They intentionally strived to bring all the headquarters and the presence to make Charlotte the center of banking.
“And I can tell you, they succeeded.”
Three more office towers emerged after Jefferson-First Union Tower:
With the construction of these four banking buildings, and in a four-year span, uptown office space square footage tripled.
“They transformed uptown,” Gray said. “It made the banking presence bigger. It changed uptown from being a city dominated by pre-World War II buildings to an uptown dominated by tall towers. What we see now in uptown started with those skyscrapers. That’s what makes them historically significant.”
Riverside declined to comment on the designation.
But the interest in a landmark designation could come from potential tax credits federal and state governments offer to preservation projects.
Developers are eligible to receive up to 35% of the preservation construction cost, Gray said. That would help finance the redevelopment.
Utilizing those tax credits has been one suggestion for revitalizing uptown office space, Gray added. And those revitalization efforts are focused on office vacancy.
The Charlotte metro’s office vacancy sits at 23.9%, according to a July report from Cushman & Wakefield. The real estate firm looks at office markets in Charlotte and the surrounding suburbs.
Some of that vacancy is concentrated in older uptown office buildings.
To remain viable, owners have two choices: renovate to appeal to office workers or convert the building into a different use.
One South owner’s Tourmaline Capital Partners spent more than $13 million on renovations. One South has an over 80% occupancy rate.
The former Wachovia building is going the conversion route. New York-based developer Spandrel Development plans to transform the building into approximately 399 apartments.
And the building will host Charlotte’s first Marriott Bonvoy’s W Hotel brand.
The conversion also includes more than 24,000-square-feet of retail, most of which will be dedicated to a restaurant.
Spandrel purchased the tower at an auction for $36 million last year, after the previous owners defaulted on the property’s loan and the building went into foreclosure. At the time it was about 23% occupied, the Charlotte Business Journal previously reported.
Spandrel did not apply for landmark designation. It’s unclear why.
But at least the building won’t be town down, Gray said.
The proposed landmark designation for Jefferson-First Union Tower will go before Charlotte City Council in September. No one spoke against the proposal during a Monday public hearing held by the commission.
If approved, Jefferson-First Union Tower would be the first historic landmark out of Charlotte’s first cohort of skyscrapers.
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