A New York-based developer who had planned to build a nine-story apartment tower on the site of a downtown Charlottesville shopping center has sold the property for $5.75 million.
Jeffrey Levien’s company Heirloom Development bought 218 W. Market St. in June 2020 for $4 million, but sold the property in mid-September to Cavalier Hospitality LLC. That entity is based out of Glen Allen, Virginia, and has not yet filed new plans for the property.
However, Levien says he will still be involved in the development of a hotel as a partner.
“I just couldn’t make the economics work for residential under the new zoning code,” Levien says.
Under the inclusionary zoning rules in the city’s new Development Code, one of every 10 units in any new development in non-residential areas must be guaranteed to be rented or sold to households below specific incomes. No such requirement would be necessary for a hotel, something that is an allowed use under the zoning that went into effect this past February.
Levien pursued the residential project at 218 W. Market under the older rules, which required a special use permit for additional height and density. City Council approved a permit in September 2020 despite concerns from former mayor Nikuyah Walker that the project did not address the need for affordable housing.
In August 2023, council agreed to a permit amendment to allow for a modification of the building’s massing. As part of that approval, Levien agreed to build a minimum of eight affordable units on-site or off-site with two units to be reserved for households making less than 50 percent of the area median income. That was above the minimum requirement but not enough to satisfy the concerns of City Councilor Michael Payne.
This spring, Levien brought a preliminary design to the Board of Architectural Review for a hotel with a design from Richmond-based NBJ Architecture. That body looked favorably on the concept, but it did not receive an official submission. No plans have been filed since.
So far there have only been a handful of new projects filed under the new zoning, which is intended to make it easier to build more housing units across the city and to eliminate the role of City Council in making decisions about what gets built.
One of these new projects, at 1609 Gordon Ave., would see an existing house razed to build a new structure with nine units. A 10th unit would need to be affordable.
Another new development at 2030 Barracks Rd. would see 12 affordable units built alongside 12 market-rate units.
Levien’s first development in Charlottesville was a luxury 56-unit apartment building that also redeveloped the buildings that contain Blue Moon Diner and a former convenience store. That project broke ground in 2018, nearly two years after council granted approval.
Another project that has not yet moved forward is the replacement of the University Tire building next door, at 612 W. Main, with another apartment building. Levien says he still plans to proceed with that project, which was approved by council on a 4-1 vote in October 2019. A final site plan has been approved but no building permit has been authorized.
If it proceeds, the new hotel would replace a shopping center that includes The Artful Lodger, The Livery Stable, and several other businesses. The BAR has approved a permit for demolition pending the issuance of a building permit.