A local development firm isn’t moving forward with plans to buy a city-owned property in downtown Wilmington to build a grocery store.

In December 2024, the Wilmington City Council approved a $1.7 million bid from Cape Fear Holdings LLC for a 1.65-acre site at 305, 315 and 319 Chestnut St. A provision included in the bid would have restricted the principal use of the property to a retail grocery supermarket for at least 10 years.

On Thursday, city spokesperson Amy Willis confirmed that Cape Fear Holdings LLC is no longer pursuing a purchase of the parcels. The limited liability company is registered to Vin Wells of Cape Fear Commercial and Cape Fear Development, according to North Carolina Secretary of State records.

In an email, Wells, the co-founder of Cape Fear Commercial, cited timing as a contributing factor.

“The timing for this opportunity was not aligned,” he wrote, “but our focus on downtown development isn't changing, and we remain focused on pursuing opportunities that reinforce its growth.”

Cape Fear Development is also the developer of Project Grace, New Hanover County's redevelopment of its downtown library branch and the Cape Fear Museum, located across North Third Street from the 305 Chestnut St. site.

Willis added that city staff are “pursuing a master downtown plan to ensure the City is using its holdings in the most strategic way that benefits the city’s future needs.”

A city-owned office building occupied the site for years before being demolished last November, following the city’s $68 million acquisition of Skyline Center. City leaders decided to demolish the buildings based on a market analysis that showed no interest in reusing the existing structure, officials said at the time.

While initial documents didn’t name the grocery store proposed for the downtown site, Cape Fear Development has constructed several Publix grocery stores in the Wilmington area, including the Publix at Pine Valley and Carolina Beach’s Publix Commons at Federal Point and in other North Carolina cities, including Kill Devil Hills, Wendell and High Point.