Riverfront project took hard licks, but Spetrino still upbeat

It’s been an eventful, turbulent 18 months for David Spetrino’s dream project on the Cape Fear River.

Originally scheduled to be substantially completed and occupied by now, the project, like many others, fell victim to the real estate and banking crashes. Former partners David White and Steve Shuttlesworth pulled out, and Spetrino went from a 5 percent shareholder to a 95 percent shareholder with the remainder owned by Peter Fensel. Reservation monies were returned to potential residential buyers.

Never mind all that. Despite the issues, Spetrino is upbeat and enthusiastic about the future of this project, and his plans have not been scaled back.

In addition to the city’s involvement in the RiverWalk at that location, construction of the Saw Mill Point Marina is moving forward. “Right now, we’ve got the funding to complete the infrastructure: the roads, curbs, sidewalks, trees and the marina.

That includes some parking,” Spetrino said.
To accomplish this stage of development, Riverfront Holdings has teamed with SunTrust Bank for acquisition and development funding. The shareholders invested 20 percent with the bank providing the remainder.

At the moment, stormwater, sewer, water and electrical installation are all wrapping up. The next phase is curbing, which Spetrino said is exciting because it means the road is next. “To actually see curbing going in means our city is finally going to have some new riverfront property without having to tear down our heritage,” he said.

The possibility for further development on the north end of town “relieves some of the pressure off the redevelopment of the historic district and the existing structures,” he said.

Completion of the infrastructure brings with it access to the marina as well as to the future pad sites for the remainder of the mixed-use development. Infrastructure completion is targeted for Sept. 1, when the public can drive down Cowan Street and the Nutt Street Extension to the marina, he said. The roadwork, about $2 million worth, includes a traffic circle and a tree-lined median.
Additionally, “one great thing is that the city is thinking long term, and has funded the corresponding section of the RiverWalk,” he said.

Spetrino is managing that construction for the city. He said it’s more than 1,000 feet long and very wide. Scheduled to be complete in about five weeks, this portion of the RiverWalk from the Conlon Dock to the Isabel Holmes Bridge are like bookends for the entire walkway, which begins near Chandler’s Wharf. “The vision that came out about twenty years ago was a boardwalk from bridge to bridge,” he said, noting that a short stretch near Surry Street may not ever be constructed due to private ownership of the land.
As the convention center nears completion, the RiverWalk along that stretch will be integrated with the bulkhead.

“That marina is very nice,” Spetrino said. “You can tell the marina was designed and funded in the heyday. It’s as well-designed as anything in our region. The only thing that comes close is the concrete docks at Wrightsville Beach.” He recognizes the need, echoed by bank officials, to begin selling slips. “The bank is like ‘OK, you’ve designed a great Disney World,’” he said. He expects to begin “putting feelers out” for slip sales in July. Pricing will run from $3,000 to $3,500 per linear foot. Slips range from 30 to 100 feet long and only 40 are available. The city marina next door will have many more slips, but the ones at Saw Mill Point Marina are meant to enhance the livability of the residential properties which are yet to be built. Spetrino said SunTrust had noted an interest in financing the slips for prospective purchasers.

Finding funding for the vertical construction is another matter. While he sees the need to begin construction of Marina House this fall, Spetrino said he doesn’t know how that is going to happen. “All my cash is in the site,” so finding a lender is necessary, he said. Previous financing was cancelled and deposits were returned to buyers. “After dealing with the moratorium which delayed us for six months, we got caught in the economy. For Marina House, we need to borrow $2.5 to $3 million,” he said. While that isn’t much in the overall scheme, now, it’s a huge stretch, he said.

Banks that were previously interested “are bloodied from other projects. We’re at the mercy of making sure we find the right financial partner” whether it’s a bank or a private investor. Because construction costs are down now, he’d like to move forward.

“Logically, it could start this fall. Realistically, who knows?” he said. Describing financing in his blog as a “major bottleneck,” Spetrino writes: “Fortunately we have seen recent interest from lenders who recognize that the better located, better quality projects will be the best risks as the real estate market begins to recover.”

As originally planned, prices in the building will begin in the low $200s for a studio and go up to about $450,000. If a public park were to be integrated into the project (see sidebar), the building’s three ground floor studios would possibly be converted to public use-space. “If the park comes in, what you’ll see is probably the same number of living units, about 216, but in fewer buildings, and they’ll be taller,” he said.

Spetrino is a proponent of what he calls “cosmopolitan condos” with expansive outdoor views and dramatic combinations of indoor/outdoor space. Unlike some of his smaller units, urban loft-type properties on Fourth Street, much of the riverfront property is planned for permanent living in up to 1,800 square feet. For this property, he’s seeing interest from people who, “currently live downtown or want to, yet don’t want the expense of an old home,” he said. Nor do they want the inconveniences of parking, the lack of energy efficiency and other issues that go along with living in an historic building.

As the project evolves, Spetrino will update its progress on his blog. He’s also committed to adding placards or similar educational pieces along the property to point out the abutment from the original bridge that crossed the river and the ancient cypress trees that live in the area. The marina’s namesake saw mill of some 300 years may also get a mention. “We’ll tie it all together. This will evolve just like all good downtowns and cities do. Downtown is never done. Hopefully, you get more and more of the flavor of the people who want to live here,” he said.