An apartment complex marketed to middle-income downtown workers, especially those interested in reducing or eliminating their personal vehicle use, has been repossessed. Capitol Quarters was returned to its lender due to a low occupancy rate that made it unsustainable, developer Weaver Buildings announced this week. The property at at 1108 Nueces Street underwent a deed-in-lieu transfer to North Carolina's Churchill Real Estate Holdings.
Capitol Quarters was originally announced in a co-living project in 2109, when group living in boarding-house or dorm-like buildings was being touted as a solution to soaring home prices. After the pandemic hit, the developer pivoted to a multifamily project, terminating the lease with the co-living group and finding new financing.
Builders broke ground on the 45,000-square-foot, five-story structure, which replaced a smaller office building on the site, in 2021. Capitol Quarters offered 30 three-bedroom, two-bathroom apartments for $1,200 per bedroom — a strategy meant to appeal to renters looking for shared workforce housing in traditional apartments.
The building has as 6,200 square feet of office space and no onsite parking facilities for personal vehicles, both to keep costs down and to appeal to tenants who want to live or work downtown car-free. The building was completed in May 2022, and the first tenants moved in that August.
