Asheville.com news: Grove Arcade Financing

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Asheville.com community news
Grove Arcade Financing Scheduled to Close Week of May 8th.

Rick Skelton, the Grove Arcade developer, is scheduled to close on his financing package with Wachovia Bank the week of May 8, according to Aaron Zaretsky, executive director of the Grove Arcade Foundation. Securing the financing has been a long and frustrating process for Skelton due to the many complexities of the project. The closing next week of the financial package is still subject to approval of the final plans and specifications by Wachovia Bank.

The developer's share of the project includes the upper levels of the Grove Arcade. Skelton's plans include developing 52 apartments, 30,000 square feet of office space and the restoration of the common areas. The Grove Arcade Foundation is leasing the upper area of the Grove Arcade to Skelton. Skelton and the Grove Arcade Foundation will be working jointly on the restoration of the common areas. The Grove Arcade Foundation is developing the first level of the Grove Arcade. They plan to return the first level to its original use, which was retail space. The plans for the first floor include the development of 60 retail spaces.

The total cost of the project will exceed $15 million. Skelton's share of this cost is estimated to be $9 million and the Grove Arcade Foundation's share is estimated to be between $6 and $7 million. Carolina Power & Light has already closed on an agreement in which they will receive the restoration tax credits for the project in return for a lump sum payment. This was a key element in the financing package with Wachovia Bank because it provided a substantial cash down payment for the financing package.

If the financial package closes next week, Skelton hopes to begin construction immediately. Skelton has selected Beverly-Grant to handle his portion of the construction of the project. The Grove Arcade Foundation will be putting their work out for bid because of the involvement of federal funding. Zaretsky plans to publicize the bids in the next few weeks. Completion of the project is projected for the end of this year with a grand opening scheduled for the spring of 2001.

Zaretsky says that he has approximately 50% of the retail space preleased and interested parties for retail space can contact the Grove Arcade Foundation at 828-252-7799. Interested parties can also visit the Grove Arcade Foundation's website, www.grovearcade.com.

The restoration and reopening of the 260,000 square foot Grove Arcade is a long anticipated event for many WNC area residents. It is a significant historic building that is being returned to its original use, a downtown mall. In fact, when constructed in 1929, it was one of the first indoor malls built in the United States. The Grove Arcade is a classic example of Gothic architecture and will become a major attraction and destination for the downtown Asheville area.