A 10-story downtown office building is headed to auction for the second time in recent years.
The nearly 99,000-square-foot 1220 N. Market Street building is now slated for an online auction that will be held at the end of July. Bidding starts at $900,000.
Colliers Vice President Rick Kingery said the auctions in short succession are actually a good sign. Owners have decided the time is ripe to see if investors want to tap into a turnaround in downtown that seems to be gaining momentum, he added.
The auction materials include design proposals to those who register. Details of the proposals were not disclosed to non-bidders.
Asked about whether the high rise could join the trend toward re-use, Kingery said apartments or a hotel are strong possibilities.
“It’s absolutely prime,” he said of possible residential uses. Kingery cited the building’s configuration, window lines and other features as pluses in future conversion.
Residential conversions are also seen as. way to deal with office space that has become obsolete in the current market.
A sale is also aided by a successful appeal that reduced property taxes on the high rise.In the mix are other incentives for developers.
The north portion of downtown has not seen the wave of redevelopment that has taken place on the other end, a notable exception being the massive Wilmington Hospital renovation and expansion project.
One positive sign was a long-vacant office building near the 1220 high rise opening earlier this year as a Residence Inn By Marriott.
Kingery says he has detected a “new vibe” with construction and conversion of existing structures to apartments adding more permanent residents to downtown. New restaurants are also opening.
Despite the views of some skeptics, landlords have been reporting occupancy rates of 90 percent.
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