The state’s construction industry remains robust. Our annual report spotlights prominent new structures, including Charlotte’s 110 East. HIGH
4 UP FRONT
6 POWER LIST INTERVIEW
Cecilia Holden explains myFutureNC’s 100-county strategy to close the state’s education gap by 2030.
8 NC TREND
Fresh start for historic Burnsville hotel; Politics bring changes to Utilities Commission; Mahjong’s new popularity; Precision helps Asheville slingshot company hit growth target; Three companies wear NC Chamber’s ‘Coolest Thing’ crown.
26
RURAL ROUTE
Alcohol use may be in the tank, but craft beer still has its believers.
84
BRICK & MORTAR
A historic N.C. courthouse blends history, unusual architecture and a paranormal reputation.
28
ROUND TABLE: TRAVEL & TOURISM
Five travel experts discuss their plans to keep North Carolina as one of the most visited destinations despite economic headwinds and recovery from natural disasters.
68 HIGHER EDUCATION LEADERS
Catawba College, Guilford Technical Community College and Pfeiffer University showcase their brand.
80
COMMUNITY CLOSE UP: HARNETT, LEE & CHATHAM COUNTIES
Three counties have discovered sharing resources and working together has made them a stronger economic region.
COVER STORY
BUILDING N.C.
Our 12th annual look at the best new and rehabbed structures that opened in the past year.
BY KEVIN ELLIS AND NATALIE BRADIN
HIGH TIMES
How a loophole has led North Carolina to drift into one of the South’s most permissive cannabis economies without ever legalizing marijuana.
BY SHANNON CUTHRELL
POWER TIME
While data centers proliferate across the state, some communities are raising concerns about their location and energy consumption.
BY MIKE MACMILLAN
SHOW ME THE MONEY
A handful of North Carolina’s private equity businesses have attracted more than $7 billion this year, providing fuel for lots of dealmaking.
BY DAVID MILDENBERG
UP FRONT David Mildenberg
OFFENSIVE INTERFERENCE
My rst memory of UNC Chapel Hill football was watching my alma mater, Northwestern, lose 41-7 to the Tar Heels in my college days. Carolina’s amazing freshman running back, Amos Lawrence, was way too fast for any Wildcat.
Northwestern went on to win two football games during my four years in Evanston. at proved unacceptable, so alums of the private school invested millions of dollars to help the team remain viable in the Big 10 Conference and occasionally win a few big games. Now it’s building an $850 million stadium, with more than half of the money coming from Chicago insurance billionaire Patrick Ryan and his family.
Back in Chapel Hill, UNC has had some gridiron success over the decades, but football never became a quasi-religion as in other Deep South states. Wise leaders, including William Friday, C.D. Spangler Jr. and Erskine Bowles, helped maintain that ethos.
Periodic football success was never enough for some alums at North Carolina’s agship school, however. at included some Chapel Hill trustees, including former Chairman John Preyer, who decided that superstar ex-NFL coach Bill Belichick, 73, was the answer to make UNC a perennial national title contender.
Preyer’s end run around UNC Athletic Director Bubba Cunningham to attract Belichick was as surprising as any trick play ever dreamed up at Kenan Stadium. “We don’t have a more capable, more experienced, more talented senior administrator here at Carolina,” Chancellor Lee Roberts said last year, referring to Cunningham.
But the end run worked, with a few nudges by Secretary of State Marco Rubio, U.S. Sen. om Tillis and N.C. Senate leader Phil Berger. Preyer got his man, lured by a pledge for $10 million a year, plus $29 million for sta and recruitment, and millions more for other costs. Lots of dough, but not unusual in today’s college football scene.
It was also such an obvious violation of “ e Carolina Way,” that UNC System President Peter Hans quickly threw a penalty ag, namely a memo blocking trustees from playing any role in similar negotiations with a future Belichick.
On the eld, the Belichick magic has yet to materialize. rough the season’s rst seven weeks, UNC ranked 99th among 136 teams, Athlon Sports estimates. Surely the famed coach can x that.
e excitement in Chapel Hill is just one of countless examples of how well-meaning adults allow football to become a distraction from the truly important work at universities. John Preyer is an easy mark, but similar foolishness occurs consistently at many other places.
It’s just so much more exciting to seek to attract a hot new coach than focus on the long list of challenging campus duties. ere’s almost always a group of wealthy, football-savvy donors circling university leadership. ere are always administrators and coaches, who are the key bene ciaries of the sports' explosion, emphasizing that football is the “front porch” of university marketing e orts.
at’s just baloney. e reality is that UNC remains a “transformational leader in education, research, technology, nance, athletics and healthcare,” according to a strength-and-weakness analysis from the Brunswick Group, an in uential marketing company that the trustees hired last year.
It will remain that way as long as state and university leaders commit to accessible, a ordable and innovative campuses focused on helping students achieve ful lling careers and develop admirable character. Nine years of at tuition at UNC System schools re ects that commitment. Given North Carolina’s incredible momentum, our public universities, and the equally invaluable community college system, are poised to remain a vital factor in the state’s success.
Let’s make sure that happens, no matter how many games Belichick wins or loses.
PUBLISHER
Ben Kinney bkinney@businessnc.com
EDITOR David Mildenberg dmildenberg@businessnc.com
MANAGING EDITOR Kevin Ellis kellis@businessnc.com
ASSOCIATE EDITORS
Ray Gronberg rgronberg@businessnc.com
Cathy Martin cmartin@businessnc.com
CONTRIBUTING WRITERS
Natalie Bradin, Shannon Cuthrell, Bill Horner III, Audrey Knaack, Page Leggett, Mike MacMillan, Kerry Singe
CREATIVE DIRECTOR Cathy Swaney cswaney@businessnc.com
MARKETING COORDINATOR Jennifer Ware jware@businessnc.com
EVENT DIRECTOR Norwood Teague nteague@businessnc.com
Anne Brundage, western N.C. abrundage@businessnc.com
CIRCULATION: 818-286-3106
EDITORIAL: 704-523-6987
REPRINTS: circulation@businessnc.com
OWNERS
Jack Andrews, Frank Daniels III, David Woronoff, in memoriam Frank Daniels Jr.
PUBLISHED BY Old North State Magazines LLC
PRESIDENT David Woronoff BUSINESSNC.COM
CECILIA HOLDEN
CLOSING THE EDUCATION GAP
Cecilia Holden joined High Point University President Nido Qubein in the Power List interview, a partnership for discussions with influential leaders. The interview was edited for clarity.
What does myFutureNC do?
MyFutureNC is an organization that is laserfocused on North Carolina’s educational attainment goal. Around the 2016-2017 timeframe, UNC System President Margaret Spellings and MC Belk Pilon, who is the leader of the John Belk Endowment, had a vision that we needed to close the attainment and skills gap in North Carolina that our employers have identified.
Cecilia Holden has been CEO of myFutureNC since the nonprofit’s creation in 2019. Its goal is to boost the quality of the state’s workforce to help North Carolina thrive in a global economy. She previously had a mix of roles in the private sector and state and local government. She was the legislative and community affairs director for the N.C. State Board of Education from 2017 to 2019 after previously serving as chief of staff for the N.C. Department of Commerce. She has also worked for a private investment firm and IBM. Holden received an undergraduate degree from UNC Chapel Hill and an MBA from Duke University. She grew up in Whiteville in Columbus County, near Wilmington.
So they brought together a commission of probably 50 different influential leaders across North Carolina. They did listening tours, looked at data and research, and after two years, in 2019, agreed on a state goal. By the year 2030, it was determined that North Carolina was going to need 2 million people between the ages of 25 to 44 to have either an industryvalued credential or a college degree.
So, the N.C. General Assembly codified that goal into state law. And then later that year, myFutureNC stood up as a nonprofit organization to move that goal into action.
Why was it important to reach for the 2 million North Carolinians between age 25 and 44 to have a post-secondary degree or industry-related credential?
We wanted to build a workforce in North Carolina to meet the demands of corporations and employers moving to the state. And also those that currently exist in the state or expanding in the state.
We started in 2019, and then COVID hit. And if anything that elevated the importance of hitting the goal.
How is the group funded?
We are funded by private philanthropy. We got two government grants in the middle of Covid. One came from Covid relief money. And then we were asked by the General Assembly to conduct a study around the opportunities to have interoperable data systems to benefit our students. And those are the only two investments that government has made in the work.
Otherwise, we’re 100% private philanthropy. We’ve got national funders, state funders, local funders. The John M. Belk Endowment was instrumental in this work being lifted off the ground. The Goodnight Educational Foundation is one of our key partners.
How is myFutureNC doing toward its 2 million goal?
We started out with a gap of 400,000 people who were lacking a degree or credential that we needed to close by the year 2030. The most recent census data from last year projected a shortage of about 55,000, so we’ve gone from a gap of 400,000 to a gap of 55,000. We’re closing the gap, thanks to institutions like yours and all of our many education partners across the state.
We’ve got 36 phenomenal private universities, 16 public universities, 58 community colleges and our workforce development boards.
We’ve got the assets, we’ve got the infrastructure, we’ve got some of the very best in the entire nation.
What are the top three assets in North Carolina besides climate and logistical, you know, access to highways and airports?
North Carolina has it all. We’ve got the natural assets, we’ve got the infrastructure, we’ve got the workforce. And at the same time, we know where we’ve got opportunities for growth. So we’ve got a basic foundation for success.
Additionally, North Carolina has a lot of good policies and a lot of good funding streams. For example, we’ve got an entire rural division in the Department of Commerce that has grants that are available to rural parts of the state. We look at it as we are one state, but we have 100 counties and we want to see all 100 thrive.
Since 2019, we’ve had an increased interest in North Carolina economically. Did the increase in companies moving to the state challenge your goals?
The answer is the 2 million by 2030 goal was a factor in the economic growth. So that’s the good news. The goal was set expecting that North Carolina would continue on the trajectory that it was on.
If anything, we are importing talent, but we are both an importer of talent and we’re a producer of talent. The percentage of population growth for our state has been five percentage points over the last five or six years. We love to see North Carolina grow. And, the people that are moving into our state do tend to be more educated than not. So, it actually helps to close the skills gap. We are also growing our own.
What are the specific steps myFutureNC is taking to move toward its goal?
You don’t know where you are and you don’t know how to improve if you don’t know what the data shows. We break it down county by county. And so every county understands how they are actually tracking toward a recommended local goal. But it’s a lot of different key performance indicators, everything from North Carolina pre-K all the way through to labor market alignment.
I will share that 79 of the 100 counties have increased in attainment. We have 21 counties that have not. That factors in population declining or growth.
Is there a correlation between the data looking better in metro areas than rural counties? If so, why?
All 21 counties that are not increasing are rural. As you know, we’ve got rural communities that are resourced very differently than our metro areas.
There are a lot of different things that factor in. Sometimes it’s a matter of people who just don’t know how to navigate the maze of higher education. They don’t think that it’s affordable. They don’t know how to even go about it.
And yet we have 58 community colleges spread all over the state.
That takes me to the next strand of our work, which is things like FAFSA completions, which leads to federal Pell Grants and state need-based grants. And we partner with the state Education Assistance Authority. Our goal is to push the word that college can be affordable.
Or perhaps, they’re virtual options today or even our private colleges have great scholarships. So there’s opportunity. Sometimes it’s a matter of telling the story.
What are some of the challenges keeping you from accomplishing your goals?
We know that there are limited fund buckets for the work that we do. Not for our purposes, but for our partners’ purposes to be able to get some of the work done, it does require some investments from the government. So I would say purse strings is one sometimes.
Politics get in the way in terms of just being able to have a budget, you know, making sure that the state is moving forward. And the third thing is personalities. In this space, different people have different perspectives on how best to go about the work.
But ultimately, everybody has rallied around the North Star of 2 million by 2030.
So 2030 comes, you’ve achieved your goals. What’s next?
We want to make sure that whatever we do is systemic change so that we leave a legacy so that future generations have higher levels of education as well. And so we will not shut down the shop. There may be a 2040 goal that we continue to rally around. We know that North Carolina is going to continue to need a workforce. It may be that we narrow our focus on a particular strand of the work.
We want to make 2 million by 2029 and then keep rolling.
You were the chief of staff in the Department of Commerce from 2015 to 2017, under Secretary John Skvarla. What was the greatest achievement you saw in Commerce in North Carolina?
We came in during the legislation that created the Economic Development Partnership of North Carolina, which spun off the economic development arm from Commerce. That was a big success. ■
By Page Leggett
BEVERYTHING OLD IS NEW AGAIN
A new generation is discovering why Jimmy Carter, Mark Twain and Elvis enjoyed visits at North Carolina’s oldest continuously operating hotel.
urnsville is a mountain town of about 1,600 in Yancey County with a charming downtown that has a movie-set feel. Surely, some studio honcho ordered up the charming square, complete with a historic inn with rocking chair- lled front porches on two levels.
at’s the NuWray Hotel, which opened in 1833 as an eight-room log structure called Ray’s Hotel. Julie Ray, the daughter of owner Garrett Deweese Ray, married William Brian Wray, and the couple inherited the hotel in 1932. Locals began referring to the inn as the NuWray to distinguish it from its predecessor, “the Old Ray.”
e Wrays added the now-iconic stone replace in the lobby in the 1930s. e inn remained in the family for four generations before being sold in the 1990s, changing hands frequently and falling into disrepair. at is until an enterprising Greensboro couple intervened.
THE ULTIMATE DIY’ERS
Amanda and James Keith discovered a penchant for historic preservation while renovating a home in Greensboro. eir second renovation became the Double Oaks Bed and Breakfast, which they ran from 2016 to 2024.
e Keiths had full-time jobs while running their B&B: James was a music minister at First Presbyterian Church in Greensboro, and Amanda ran the Wake Forest University Press. But they both loved hospitality and went looking for a project that would allow them to be full-time innkeepers. It helps that James has electrician skills.
When they discovered the NuWray, it appeared down and out. But the Keiths were undaunted. e inn had “good bones,” as Realtors say of ramshackle properties, and it had a pedigree.
“People from all over knew the NuWray in its heyday,” Amanda says. Jimmy Carter and Elvis Presley stayed here. e NuWray has hosted so many writers — Mark Twain, omas Wolfe, O. Henry, F. Scott Fitzgerald — that Amanda was inspired to name a room, “ e Writer’s Room.”
But the inn’s biggest fans may be the people of Burnsville.
“If you ask just about any local, they’ll have a story,” Amanda says. “ ey worked here, their mother worked here, they had their wedding here. I don’t think there are many locals the NuWray hasn’t touched in some way. It’s always been a point of pride for the town.”
e Keiths bought the inn in October 2021, moved to Burnsville that December and started renovating in January 2022. ey also bought the adjacent property and
James and Amanda Keith opened the renovated NuWray Hotel two months before Hurricane Helene hit western North Carolina.
converted it into Carriage House Sundries, an art-filled coffee shop by day and a wine and cigar bar by night.
They wanted a big project, and they found it. The couple has invested $7 million, including the inn’s first central air system. “With historic properties, nothing is straightforward,” Amanda says. “You have to do a lot of it on the fly; you never know what you’ll find when you open up a wall.” Amanda, who designed the interiors, found five layers of wallpaper in some places. There were more than 65 patterns made from the mid-1800s through the 1990s. “The wallpaper tells the story of the inn,” she says.
They kept what furniture was usable, and added pieces almost exclusively from area antique shops and Facebook Marketplace. The inn is filled with local art.
A TASTE OF HISTORY
In 1915, the Wrays started a restaurant, which really put the NuWray on the map, Amanda says. The Southern “country cooking” recipes had been passed down through generations. Meals were served family-style.
“That’s difficult to pull off nowadays,” Amanda says. “The health department doesn’t particularly like it, and it’s wasteful. It’s just not financially feasible to do regularly.”
But the revamped restaurant, open for breakfast, supper and Sunday brunch, honors the NuWray’s history with updated recipes from the hotel’s historic cookbooks, like “Will’s Sunday Cake” (custard-filled chocolate sponge cake with chocolate meringue frosting) and “smothered lettuce” (mixed greens with warm bacon vinaigrette).
While James Keith was the chef at their Greensboro B&B, the Keiths wanted someone with experience running a big kitchen. They lured chef Peter Crockett from Asheville. “He’s a strong leader and mentor,” Amanda says. “That was important to us because it helps attract and keep staff.”
POST-HELENE HUB
The hotel reopened to much fanfare last August. From the Aug. 1 opening through Sept. 26 of last year, the NuWray had an average occupancy of about 32%. But on Sept. 27, Hurricane Helene tore through western North Carolina. In its aftermath, the NuWray became a lifeline.
“Immediately after the storm passed, people began pouring into the square,” Amanda says. “No one had phone service, so this was the logical place to find out what was happening.
“Everyone was either looking for information or trying to pass information along. We started paper lists of what roads were passable, who’s missing, who’s looking for whom, what supplies are needed and where.” Those paper lists soon morphed into whiteboards.
The flooded restaurant was cleaned and the kitchen pressed into service. Townsfolk needed to be fed, and the NuWray needed to use food on hand before it went bad.
The staff of the nearby Carriage House Restaurant, which had been open for almost a year, “showed up ready to help,” Amanda says.
“Everybody jumped in and prepared what we could without electricity: Sandwiches. We smoked all the meat we had in our fridges and freezers on our outdoor smoker, the Smok-O-Motive. Then, people started bringing their meat for us to cook.”
Post-Helene occupancy rates through the end of 2024 were at nearly 90%, with lots of relief workers, displaced locals and FEMA agents. A “60 Minutes” crew, including correspondent Sharyn Alfonsi, stayed at the NuWray in October 2024 while documenting Helene’s devastation and recovery efforts.
This year has been up and down as the NuWray and most of western North Carolina seek a return to normal. “But we’ve averaged nearly 60% occupancy,” she says. A new push for hosting events is going strong.
“The movement in and out of town is hard to predict since people are coming here not necessarily for the usual reasons, but we’re making it through all right. We’ve just had to stay very flexible.”
The hotel reopened in May with a “Restoration Shindig,” a celebration of the hotel’s — and the town’s — resilience.
“This wasn’t the opening season we pictured,” Amanda says, “but I’m grateful we got as far as we did before the storm hit. If we hadn’t, there’s no way we could’ve contributed what we did. And I think it’s so poignant that this is now part of the NuWray’s history. It’s been a beacon for a long time.” ■
A version of this story previously appeared in SouthPark and OHenry magazines.
NC TREND ›››
Republicans gain more sway over the state’s key energy regulator, at the governor’s expense.
By Ray Gronberg
n July, Duke Energy had every reason to expect that the N.C. Utilities Commission would approve its plan to build a 245-megawatt solar project in Richmond County. The facility was in line with its Carolinas Resource Plan, the commission-approved framework for adding more power.
I POWER POLITICS
The Utilities Commission is ultimately beholden to the law as written by the General Assembly, says former state Rep. John Szoka, a Cumberland County Republican who now heads the Michigan-based Conservative Energy Network. That means balancing a decrease in carbon dioxide and other greenhouse gas emissions with keeping electricity prices as low as possible.
Ultimately, the commission approved the plan, but only after a sharp dissent from its newest member, Donald van der Vaart. The former state environmental-quality secretary downplayed the usefulness of solar power that lacked battery storage, and highlighted how North Carolina’s natural gas supply remains limited.
“These constraints necessitate extending coal-fleet operations to bridge to large-scale nuclear for carbon neutrality by 2050,” he says.
Van der Vaart’s dissent, and his presence on the commission, signals how the regulatory body’s outlook is in flux. It’s partly a function of a restructuring ordered by state Republican leaders, who have gained more sway over North Carolina’s regulatory agencies.
The governor had traditionally appointed all seven members of the Utilities Commission. Now, after a law passed in 2023, the commission is down to five members, with Gov. Josh Stein and legislators each picking two people and the state treasurer selecting the other seat.
The treasurer, Brad Briner, picked van der Vaart. He joined holdovers Karen Kemerait and Floyd McKissick Jr., who were gubernatorial picks, and Bill Brawley and Tommy Tucker, the legislative selections.
McKissick, a Durham Democrat, and Tucker, a Union County Republican, are former state senators. Brawley is a former Mecklenburg County Republican state representative. Kemerait is a Raleigh lawyer whose practice involved energy, water, wastewater and land-use matters. She is a registered Democrat.
Four other members left this year: former chair Charlotte Mitchell, Kimberly Duffley, Jeffrey Hughes and Steve Levitas.
Representatives of N.C. environmental groups have long been critical of van der Vaart, a chemical engineer who worked in Gov. Pat McCrory’s administration. He has cited his opposition to the Obamaera Clean Power Plan as a major career achievement.
“All five of them, and I think they’ve shown it so far, are administering the law as regulators are required to by the law, and they’re going to do that to the best of their ability,” Szoka says.
The commission’s regulatory process is “quasi-judicial,” meaning that it demands evidence-based argumentation from Duke Energy, its critics and other interest groups.
It’s “more important than ever that anybody who comes before the board really has their stuff together when they present whatever position they are representing,” he adds. “It’s not feelings; it’s facts, because these cases are decided on facts.”
The commission’s main job in 2026 is reviewing Duke’s revised Carolinas Resource Plan, which envisions pumping the brakes on solar development in favor of using more gas combustion turbines and operating the utility’s coal-fired power plants longer than previous projections.
The revision follows the General Assembly’s passage this year of Senate Bill 266, which retains the ultimate goal of making power production carbon-neutral by 2050. But the state is no longer asking Duke to get 70% of the way there by 2030.
While about half of Duke’s total generation capacity comes from nuclear, the utility is cautious about building new reactors. Its filing says the company will undertake planning work, but is noncommittal about following through. But Duke needs to start placing orders for reactor vessels and other equipment by 2028 to build more of the gigawatt-size facilities it now operates.
The slowdown on solar, meanwhile, partly stems from the Trump administration’s adamant opposition to tax credits and other incentives for renewables. That is forcing adjustments in long-term planning as some existing solar deals may fall though, Duke’s filing noted. ■
NC TREND ›››
DOTS, BAMS AND CRAKS
An ancient game gains popularity, boosting the fortunes of a Charlotte retailer.
By Kerry Singe
It’s late on a Wednesday a ernoon in October and the sta at Gourmand Market is busy preparing the mezzanine for the evening’s mahjong players.
Tables and chairs are moved to accommodate groups of four. Bartenders are making sure there are enough wine glasses on hand. Water, lemon wedges and freshly popped tru e popcorn are set up for self-service. No one will get out of their seats during the evening, however. ey’ll be too focused on the game.
Mahjong, the tile game that originated in 19th-century China, has been played in the United States since the 1920s. It has deep roots in many Asian and Jewish communities.
But its popularity has exploded nationally in recent years. A mahjong scene in the 2018 movie “Crazy Rich Asians” raised awareness. During the pandemic, new players discovered mahjong, attracted to the community fostered by the game. e frequency of mahjong events in San Francisco spiked nearly 150% between 2023 and 2024, the city’s main newspaper reported in September. Across North Carolina, several libraries and senior centers regularly host games.
In Charlotte’s SouthPark neighborhood, Gourmand Market has found the game to be a winning hand. Although the market and its restaurant and bar sit at one of the community’s busiest intersections, it’s tucked back o the road and not very visible from the street. People o en don’t realize the market exists, says Boyd “Bo” Phillips, who opened the market in 2023.
Mahjong has proven to be an ideal pairing with Gourmand Markets’ customer count gaining 40% since it started o ering lessons and events tied to the game at the beginning of the year. People who came for mahjong are now regulars who meet friends for drinks and swing by to grab ready-made meals or curated gi baskets. Upstairs space is o en rented for mahjong parties and to host lessons for friends.
“I hadn’t heard of Gourmand before, but it quickly became synonymous with comfort, creativity, and culinary joy,” says Carla Hamilton, a vice president at Wells Fargo who took a lesson in January and now returns o en.
“What started as a casual interest in mahjong turned into something much more,” Hamilton says. “I found myself surrounded by new friends, clinking glasses, immersed in strategy and laughter. e food is consistently delicious and beautifully cra ed, and the drinks make every visit feel like a celebration.”
A CONVENIENCE STORE WITH FLAIR
Phillips’ goal was to create a “convenience store with air.” She imagined “an upscale pit stop that has something to satiate many di erent needs.” She has always been a foodie with some of her earliest memories involving making her parents breakfast in bed during her pre-K years. She made “eggs in a hole,” which remains a favorite of hers today.
A er graduating from Duke University, she studied food writing and graduated from culinary schools in New York and Italy. While living in Washington, D.C., and New York City, Phillips regularly visited the Dean & Deluca gourmet grocery store chain. When the company shuttered its U.S. stores in 2018-19, including those in Charlotte, Phillips saw an opportunity for a similar concept.
In addition to its kitchen and bar service, Gourmand Market sells prepared meals and sides for take out. ere’s a butcher counter and co ee bar. e market also specializes in curated gi baskets and boxed o ce lunches.
e High Point native planned to open the market with her well-known father, Dave Phillips, a furniture company owner, philanthropist and civic leader. He was a former N.C. Secretary of Commerce and ambassador to Estonia. A er he died of cancer in 2022, Phillips continued with their plans.
“My dad was so excited about my entrepreneurial spirit and the
passion I have to jump in and take risks,” Phillips says. “He really wanted to do Gourmand with me. He wasn’t a foodie, but he wanted to do something fun and di erent to challenge him.”
BRAIN POWER
Jennifer Engel discovered the market when she started helping at informal sessions where experienced players meet to play and an instructor is available to offer advice. Engel is co-director of the Queen City Mahjong League, where teams play over eight weeks competing for prizes.
“It’s an intimate space, but you’re not on top of each other.” Engel says. “You’re able to have conversations and play the game the way it’s meant to be played.”
Jill Graham was among the first in Charlotte to offer formal mahjong lessons. She taught herself the game in early 2021. When people learned she could play the game, they asked for lessons. By early 2022, her classes with spots for 16 people had wait lists of 50 or more. The game has gained popularity ever since.
Graham believes the interest in mahjong will continue as people crave community, structure and take a break from their phones.
“Women are seeing how beautiful the game is, with the tiles and the mats and the cocktails and snacks people are serving,” Graham says. “It’s become the new book club.”
Another plus: studies show that mahjong helps prevent cognitive decline.
As more people learn to play, many welcome the chance to play outside of their homes and to meet other players, Graham says. “Some people don’t want to host. They want to get out of the house. Maybe get away from their husband and the kids.”
Phillips is leaning into the game. She’s expanded the market’s retail offerings to include mahjong tiles, mats and accessories. The market rents sets to those who aren’t ready to invest in tiles of their own.
She’s also curating a food and drink menu tailored toward players. Messy, handheld food that would leave the tiles greasy is a no-no.
“I want to provide not only a go-to mahjong environment, but a go-to eatery where you can find a cozy and welcoming environment that provides everything from soup to nuts,” she says. “Mahjong gives new customers a reason to walk in the door, and we are working to ensure they are delighted and keep coming back.” ■
MAHJONG FAST FACTS
Mahjong is played by two to four people and involves drawing and discarding tiles. It’s a combination of skill, strategy and luck.
There are more than 40 game variations. The most commonly taught variation in Charlotte is American mahjong, where players compete to form specific 14-tile combinations listed on an annual “Hands and Rules” card issued by the National Mah Jongg League.
Mahjong tiles include numbered suits, dragons, winds, jokers and flowers. The suits are referred to as “bams,” “craks” and “dots.”
“Mahjong” means sparrow in Chinese and is thought to refer to the click-clacking sound the tiles make when shuffled.
(Left to right) Four women play mahjong in a Washington, D.C., swimming pool in 1924; Boyd “Bo” Phillips owns Gourmand Market, which draws mahjong enthusiasts to Charlotte’s SouthPark area.
NC TREND
MASTERING PRECISION
Asheville’s SimpleShot is a global leader in slinging.
By Audrey Knaack
The moment a human figures out they can affect change outside their physical sphere of influence, they become a marksman.”
That belief, part philosophy, part origin story, is what launched Asheville’s Nathan Masters into trailblazing the modern slingshot movement.
While attending Clemson University, Masters became an avid archer. Before a big exam, he had a ritual: take his bow, fire a single arrow, and if it hit the mark, he knew he was ready to succeed. Precision brought him focus.
Years later, Masters combined his love for marksmanship with another passion, woodworking. In 2008, the earliest iteration of his company, SimpleShot, began as a handcrafted project made in his basement. After creating his first handle design, a functional work of art, he posted it on online forums. The move literally helped carve his path, right out of the gate.
SimpleShot now employs 10 and has customers globally, with more than 40,000 units sold annually. Beyond product design, marketing plays a key role in the company’s success, says Masters, who retains 100% ownership. The company has more than 100,000 email subscribers and a deep understanding of their behavior, he says.
TAKING HIS BEST SHOT
From the start, branding also mattered. The company’s logo, a simple “W” stacked over an “M”, was based on a maker’s mark passed down in his family. It was a practical nod to his initials — Nathan Wade Masters — and the tradition of marking one’s work, tying together craftsmanship and personal identity.
the future King David about 1,000 years before Christ’s birth. Most competitors in the slingshot world consisted of mass-market "wrist rockets," which are sold at both big retailers like Walmart or smaller toy stores.
Masters also picked slingshots as a venture because it doesn't require permits or other permissions such as other shooting sports. Over the years, SimpleShot’s offerings evolved from hand-carved one-offs to highly engineered, injection-molded plastic slingshots.
The designs also embraced flat latex bands over traditional tubing for a better shooting experience. The result is improved performance and a sleek, compact form easily fits in a pocket, Masters says.
Prices for the slingshots range from about $25 for a starter set to $120 for the all-aluminum Scout X Pro version, according to SimpleShot’s website.
More recently, the company has developed models and accessories to enter adjacent markets. Their slingbow design allows users to shoot arrows, and appeals to archers, bowfishers and outdoor survivalists.
Education is a key part of the brand’s growth. The company launched SimpleShot Academy as a digital platform to teach safety, technique and advanced skills to anyone interested in improving their aim.
When the Great Recession hit in 2008, Masters was working in commercial real estate in upstate South Carolina when he faced a big decision: should he pursue producing slingshots full time?
Using his life savings, Masters bootstrapped SimpleShot, starting in 2012. After getting accepted into the business incubator at Asheville-Buncombe Technical College, he moved operations from his basement to an Asheville building in 2013.
The entrepreneurial journey hinged on Masters’ notion that there was a place for a better-crafted precision shooting tool, made famous
As the sport continues to grow globally, Masters would love to see slingshot marksmanship added as an Olympic Games event. That is in sync with the Zug, Switzerland-based World Slingshot Association, whose objective is to develop the sport according to “the spirit of the Olympic principles.”
Mostly, Masters is pleased with how SimpleShot has helped develop a broad community of slingshot enthusiasts. “The joy of slingshots” has become a company tagline, Masters cites customers for whom the sport has provided relief, focus and healing. Veterans have found it therapeutic. Parents and children have bonded.
During the pandemic, it became an accessible outdoor activity, helping connect neighbors and others.
“It’s very approachable,” Masters says. “Ultimately, it’s fun. Fun is the core of what we do. We sell fun.” ■
NC TREND ››› Manufacturing
Large business winner
Winners of the NC Chamber’s ‘Coolest Thing’ contest reflect diversity in Tar Heel State manufacturing.
By Kevin Ellis
A TRAINS, BOATS AND GORGEOUS GLASS
er more than 45,000 votes, the NC Chamber handed this year’s “Coolest ing” trophies to Siemens Mobility, World Cat Boats and Ordway Glass Company in large, medium and small business categories, respectively. ere were 188 nominations.
While World Cat has been making boats in eastern North Carolina since 1998, Siemens Mobility started production of railroad cars this year at its $220 million plant in Lexington. Siemens is part of the Munich, Germany-based industrial conglomerate.
e husband-and-wife team of Bogdan and Nicole Ionescu launched Ordway in June 2024 in Fuquay-Varina and work in a home studio.
NC Chamber has promoted the contest for six years to promote awareness of manufacturing’s importance. More than 13.3% of gross state product and more than 10% of the state’s workforce are tied to making everything from giant turbines to tsotchkes.
Deer eld, Ill.-based Baxter sponsors the contest. Its McDowell County plant produces about 60% of the nation’s IV bags. Business North Carolina is the media partner.
SIEMENS MOBILITY
Location: Lexington
Employees: 250-plus
When did production start?
January 2025. A dozen Venture coaches are in production, with the first Lexington-built coaches delivering in 2026. Employment is expected to double in Lexington by 2028. Siemens Mobility employs 4,500 in the U.S. and almost 42,000 worldwide.
What is made in Lexington?
The site produces passenger coaches and supports maintenance and overhaul work for locomotives, coaches and bogies, a structure underneath a railway vehicle.
Its coaches for Amtrak are designed for speed, energy efficiency and comfort. Technology includes robotic welding, 3D printing and advanced software tools. Siemens declined to disclose the price of coaches.
Company comment on the "Coolest Thing" title?
This recognition celebrates not just the trains we’re building, but the people behind them — and the bright future of American rail manufacturing happening right here in North Carolina.
Production on two initial models started in Greenville in 1998, but operations were moved to Tarboro in 2002. Nine models are now built there. In 2020, World Cat purchased a plant in Greenville, where four more models are made. World Cat expects to build 400 boats this year, up from 300 last year.
What type of boats are produced?
World Cat builds 23- to 40-foot catamaran boats that cost between $100,000 to $1 million. Sales occur through dealerships globally. Its two-hull design helps the catamaran slice through the water with a smoother ride than most monohull boats.
Company comment on the “Coolest Thing” title?
It gave us the opportunity to engage with our friends and families, our customers and most importantly, our team members, who are the core of our business. Our design team is on-site every day. We do not use robots to build our boats. They are hand-built from start to finish.
MEDIUM BUSINESS FINALISTS
(under 1,000 employees):
1st Powered Catamaran boats – World Cat Boats (Tarboro)
2nd Bright Leaf Hot Dogs – Carolina Packers (Smithfield)
3rd Texas Pete Hot Sauce – TW Garner Foods (Winston-Salem)
4th Cheerwine – Cheerwine (Salisbury)
5th Regulator Boats – Regulator Boats (Edenton)
Small business winner
ORDWAY GLASS COMPANY
Location: Fuquay-Varina
Employees: Bogdan and Nicole Ionescu
What does the glasswork cost?
$250 to $300 per square foot for custom commissions. Most repair work is $500 to $1,000.
How is the work split up?
Nicole is the artist, while Bogdan oversees business and social media duties.
How long is the production process?
Custom pieces crafted from hand-cut glass usually take one to three months. Repairs often take longer because matching glass is a lengthy process. About 25 custom pieces are completed annually.
Company comment on the “Coolest Thing” title?
Stained glass art is going through a renaissance, with a lot of talented artists doing it as a hobby. There are not a lot of professional studios that do both custom commissions and repairs, so we decided to satisfy some of that need. We never imagined we’d get so busy so fast, and certainly never imagined we’d win a state-level contest after only being operational for a little over a year.
5th Atlantic Beach Sea Salt – Atlantic Beach Sea Salt Co. (Atlantic Beach)
CHARLOTTE
CHARLOTTE
Private equity company Patient Square Capital is acquiring healthcare service provider Premier for $28.25 per share, or $2.6 billion. Premier provides joint purchasing and other services for hospitals, nursing homes and other healthcare providers. The company went public for $27 in 2013.
Tether, the world’s largest stablecoin issuer, will base its new U.S.-regulated project, USAT, here. Former White House official and Charlotte native Bo Hines was named CEO. The company’s stablecoin currency is issued by Anchorage Digital Bank with Cantor Fitzgerald as custodian.
Tepper Sports & Entertainment will build a 4,400-seat indoor music and events venue next to Bank of America Stadium, funded by the company. The 89,000-square-foot facility is expected to open in 2030 and will host 80–100 events annually.
Austin, Texas-based Digital Realty Trust plans to demolish a 1920s office building on
East Trade Street in the center city to make way for a four-story, 12-megawatt data center. Digital Realty also plans a 3-million-squarefoot data campus in west Charlotte, which was approved earlier this year.
Carolina NeuroSurgery & Spine Associates, one of the nation’s largest independent neurosurgery groups, has been acquired by Atrium Health. Nearly 300 staff across seven area clinics will transition.
Germany’s Siemens Healthineers opened its first U.S. healthcare technology center in The Pearl innovation district, which includes the Wake Forest School of Medicine. The Experience Center USA gives healthcare professionals access to technologies in imaging, diagnostics, cancer care and advanced therapies. The company has a similar center in Germany.
The Charlotte Hornets’ jersey-patch partner this season will open an office expected to employ about 200 people over the next two years. New York City-based Judi Health has about 1,200 employees.
Party Reflections sold a majority stake to private equity firm Dubin Clark & Co. CEO Christian Eastman says the recapitalization positions the familyfounded event rental company to double revenue and expand its footprint. Party Reflections posted $34.5 million in revenue in 2024.
Proskauer became the latest New York law firm to add a Tar Heel office, hiring four lawyers from a Manhattan peer that opened a Queen City office in 1996. It marks Proskauer’s 12th office, including London and Paris. The firm employs more than 800 lawyers. The business had $1.39 billion in revenue last year, ranking 41st in the U.S., according to American Lawyer.
Citigroup Technology leased 58,000 square feet in the Ballantyne area for a new tech and operations hub. The $16.1 million expansion will shift New York-based Citi from a coworking space in the uptown area and is expected to add 510 jobs by 2027. The bank expects to employ 785 then. State and local incentives exceed $12 million.
Charlotte Douglas International Airport marked the completion of its $608 million terminal lobby expansion, the largest passenger-facing construction project in airport history. Construction began in early 2020, including expansion of lobby space by 175,000 square feet and renovations of 191,000 square feet.
A Superior Court judge ordered $50 million be paid to the family of WBTV meteorologist Jason Myers, killed in a 2022 Charlotte helicopter crash. The ruling found iHeartMedia subsidiaries liable for operational and maintenance errors. The total judgment was $126 million, though primary insurers will cover $50 million.
CHARLOTTE
LendingTree CEO Doug Lebda, 55, died Oct. 12 in an all-terrain vehicle accident at his farm in Tryon. He cofounded the online marketplace in 1996. Chief Operating Officer Scott Peyree was promoted to CEO, while Steve Ozonian is board chair.
TTI Floorcare will move its operations to Anderson, South Carolina, where it already employs more than 1,500 workers and has invested $500 million since 2019. Some of its 172 workers will be offered opportunities for jobs at the South Carolina site. The transition is expected to be complete by June 1.
KINGS MOUNTAIN
Walmart will invest $300 million in a 1.2-million-square-foot facility developed by the Keith Corp to create a fulfillment center that will employ 300 workers by 2028. Walmart employs more than 62,300 workers across the state. The company will receive about $13 million in state and local incentives if it hits investment and job creation targets.
SALISBURY
Illinois-based Packaging Corporation of America will close its plant here at the end of the year, resulting in the loss of 108 jobs. PCA manufactures containerboard and corrugated packaging material. The company says it will assist interested workers in transferring to one of its other 120 locations, including six in other North Carolina cities.
EAST
EDENTON
Chowake Investment bought the three-story Citizens Bank building here from Dogwood State Bank. Terms weren’t disclosed. The High & Crowe law firm is leasing the first floor, with the other floors featuring offices, conference rooms and break areas, with a goal of supporting small businesses and remote workers.
ELIZABETH CITY
The American Nurses Credentialing Center awarded nurses at Sentara Albemarle Medical Center its Magnet recognition, described as the “most prestigious distinction a health care organization can receive for nursing excellence and quality patient outcomes.”
FAYETTEVILLE
Blue Ridge Power, a construction solar company created by Asheville-based Pine Gate Renewables in 2021 will lay off 517 workers here and in Asheville by Nov. 18 as it ends its business. Solar and wind
power expansion have provided most of the additional capacity for U.S. electricity production over the past decade. The Trump Administration and Congress have stripped subsidies for solar and wind sectors.
Cape Fear Valley Health gave Fayetteville State University $2 million to expand its nursing school. The gift builds upon a $2 million grant the university received from the UNC System last year. Enrollment in the school’s nursing tracks rose from 844 in 2023 to 984 in 2025.
GOLDSBORO
Tennessee-based Sari & Co. plans to invest as much as $50 million on a mixeduse redevelopment at the former Borden Manufacturing mill, adding 120 to 144 housing units, retail, and amenities such as a gym and coffee shop. Financing is expected to close next year, followed by about two years of renovations.
KINSTON
flyExclusive was added to the Russell 2000 Indexes, raising flyExclusive’s visibility among institutional investors. The company also agreed to acquire Atlanta-based Volato’s aircraft sales division for $2.1 million in stock.
NC TREND ››› Statewide
Safeway Logistics will close its Amazon. com Services facility on Nov. 18, resulting in the loss of 72 jobs. Sixty-eight of the jobs involve drivers. Amazon confirmed Safeway was leaving its delivery service program.
OXFORD
Plantd, which has a technology to turn perennial grass into building materials, raised $22 million in its second major funding round. The company says it plans to disclose a commercial partnership that involves a second product. The company, formed in 2021, has 110 employees, including seven former SpaceX engineers, and had previously raised $20.6 million, according to its website.
SANFORD
City Council approved $4.4 million in incentives for Ohio-based Casto to redevelop the Riverbirch Shopping Center with a Target and regional grocery store by 2030. The $64 million project aims to revive the former retail hub. It marks Target’s first location in Lee County.
SOUTHPORT
A fundraiser at The Mullet Bar brought in $15,785 to support the American Fish Company, which closed indefinitely after a Sept. 27 mass shooting that killed three and injured five. Other fundraisers are planned.
WILMINGTON
nCino launched its Integration Gateway, an Internet-based software service acquired in its $52.5 million February purchase of Cambridge, Mass.based Sandbox Banking. The platform streamlines connectivity across bank systems, reducing manual data entry.
Novant Health New Hanover Regional Medical Center purchased a 9,934-square-foot building on 1.35 acres near the hospital campus. Novant has not disclosed plans for the former NCWorks Career Center building, but cited longterm healthcare needs.
TRIAD
GREENSBORO
Houston-based Griffin Partners acquired seven industrial and office buildings in West Wendover Business Park for $20.15 million. The purchase includes properties on West Friendly Avenue marking the developer’s first investment in the Triad market. The seller was Raleigh-based GSO Flex.
Causey Aviation unveiled an 18,000-square-foot hangar and maintenance center at Piedmont Triad International Airport, its first dedicated facility after 58 years in Guilford County. The family-owned company offers private-jet charters, aircraft management, and maintenance, with operations also in Raleigh, WinstonSalem and southern Virginia.
Food Express acquired Columbia, South Carolina, companies Food Service Solutions and Snacktime. Terms were not disclosed. Food Express, which is part of locally based GlobalConnect, provides breakroom services including smart coolers, vending machines and coffee and water machines.
Hawthorne Residential Partners acquired The Reserve at Bridford, a 232-unit apartment complex on 22 acres at 1404 Bridford Parkway, for $41.5 million. The sale marks the property’s second ownership change in six years, according to Guilford County deed records.
HIGH POINT
Exemplar Health purchased the former Richloom Weaving facility for $7.6 million, with plans to convert the 146,000-square-foot site into a medical distribution center. The expansion could create 150 to 200 jobs by spring 2026, offering opportunities for workers displaced by Richloom’s recent closure.
WHITSETT
Lenovo plans to expand operations with a $77 million investment and 420 jobs at a 520,583-square-foot facility in Rock Creek Industrial Park. The project will nearly double its Guilford County workforce, which began in 2007 at nearby Franz Warner Parkway. The manufacturer of computers, smartphones, televisions and wearables already employs more than 3,000 people in North Carolina.
WINSTON-SALEM
HanesBrands shareholders will vote on Nov. 25 on a proposed sale of the apparel company to Gildan Activewear for $4.4 billion. If approved, the transaction could close by late 2025 or early 2026. The company dates back to 1901. It was spun off as a separate public company by former owner Sara Lee Corp. in 2006.
ReAgent Chemical Services plans to invest $4.8 million in a plant that is expected to employ 30 workers within five years. The company makes laboratory and other specialty chemicals for a variety of industries. Jobs include management, sales, production, warehousing, and quality control.
Wake Forest University undergraduates whose families have annual income of less than $200,000 per year will not have to pay tuition, starting next fall. Undergraduates from North Carolina with an annual family income of less than $100,000 will also receive aid for standard living expenses. The school’s estimated cost of attendance this year is about $91,000.
TRIANGLE
BURLINGTON
Winston-Salem–based Monkee’s opened a boutique in the hometown of
NC TREND ››› Statewide
its owner, Rebekah Anne Allen. The women’s apparel and accessories chain, founded in 2005, now has more than 40 locations across the Southeast.
DURHAM
University Tower has been sold by Dilweg for $12 million to GM 150 , tied to Chapel Hill software CEO Gent Hito. Plans to convert the 17-story tower to residential were abandoned; the new owner will keep it as office space. The building is 33% leased and anchored by Duke University Health.
A new Garmin Marathon will take place on May 2, starting at the American Tobacco Campus and finishing at Duke’s Wallace Wade Stadium. The race is part of Garmin’s new three-city series, alongside Tucson and Toledo, and will include 5K, 10K and half-marathon options. The two-day event will also promote Garmin’s smartwatch and fitness technology.
Hallandale, Florida-based commercial property manager Accesso acquired 555 Magnum, an 11-story downtown office building, for $72 million. The 251,464-square-foot building at South Magnum Street and the Durham Freeway is surrounded by the Durham Bulls Athletic Stadium, the Durham Performing Arts Center and apartments, restaurants and other nightlife establishments.
United Therapeutics expanded its Research Triangle Park footprint with a $107 million purchase of five Research Commons buildings totaling 422,000 square feet. The biotech will use some space for administrative and employee amenities. The deal boosts its RTP holdings to 1.4 million square feet amid ongoing $500 million facility construction.
CNC Logistics, which delivered packages to people’s homes and businesses, closed after losing Amazon as a customer. The closure resulted in a loss of 75 jobs, mostly delivery workers.
ELON
After adding a part-time law school and other courses in Charlotte in recent years, Elon University is upping the ante by merging with smaller Queens University. It’s a lifeline for Queens, which has reported about $34 million in cumulative losses since 2020, according to its annual tax filings. Elon has about 7,300 students, while Queens enrolls about 1,800.
HOLLY SPRINGS
Fujifilm Biotechnologies opened the first phase of its $3.2 billion manufacturing site. The Japanese company now employs 700 there and eventually expects to have a 1,400-person staff by 2031, producing millions of doses of medicine each year for Johnson & Johnson and other businesses. The plant offers an average annual wage of $110,000, which is nearly 50% more than the Wake County average.
MONCURE
Georgia-based Southern Veneer Specialty Products will close its facility here in December, putting 130 people out of work. The company blamed an economic downturn for the decision.
RALEIGH
Commercial real estate firm KBS sold Park Central Apartments, a 286-unit luxury high-rise in North Hills, to San Diego-based Fairfield Residential for $132.5 million. Developed with Kane Realty in 2017, the property includes 36,000 square feet of retail space and amenities like a sky deck, pool and dog spa.
Doug Warf, president of Hurricane Holdings, resigned from the NHL team days before its season opener. Warf rejoined the team as president last year after working for the Hurricanes from 2000-17. Warf says he set up a consulting firm, Soundside Strategies, as he looks for a new opportunity.
ROBBINS
Nevada-based OA Defense has relocated to Moore County, opening a firearms manufacturing facility employing 25 people — mostly military veterans — with plans to add up to 15 more next year. The company, maker of the 2311 pistol, expects to produce 600 guns monthly by 2026 and invest up to $2.5 million to expand operations.
WEST
ASHEVILLE
The Big South Conference will play its baseball championship for the next two seasons at McCormick Field. The six-team, double-elimination tournament is expected to generate about $750,000 in direct spending throughout the area and involve about 275 student-athletes. A $38.5 million renovation of McCormick Field was completed earlier this year.
CHEROKEE
Five newcomers, including four women, won seats in the Eastern Band of Cherokee Indians’ 12-member Tribal Council, ending an all-male session. The council oversees legislative, executive, and quasi-judicial powers for the $2 billion tribal economy, including casinos and N.C.’s only legal marijuana dispensary.
HAYESVILLE
Amazon will close its Franklin delivery station on Dec. 10 and open a new site here. The move 31 miles west affects about 40 warehouse employees and 100 flex drivers. The company says deliveries won’t be impacted, but workers cite longer commutes and limited options. The move follows slowing e-commerce growth and network consolidation. ■
BANKING ON NEW ENERGY AND FINANCING SOLUTIONS
This is the fortieth in a series of informative monthly articles for North Carolina businesses from PNC in collaboration with BUSINESS NORTH CAROLINA magazine.
With data-rich innovation and technology contributing to North Carolina’s significant growth and success, a cost-effective and reliable source of energy is vital to the state’s competitive edge in business.
As conveyed in the NC Chamber Foundation’s August 2025 report, North Carolina’s Business-Driven Energy Vision, the success of the state’s economy and strength of its energy infrastructure are inextricably linked. And while North Carolina’s historical access to affordable and reliable energy has helped attract companies and contributed to growth across industries, advancements in innovation are increasingly dependent on energy-intensive automation and electrification, presenting unique challenges for various sectors.
One such sector is healthcare, which is rapidly expanding to serve North Carolina’s growing and aging population –and leveraging energy-heavy data, artificial intelligence and robotics to deliver the excellence for which the state’s health systems are known.
There’s little question energy and water are critical components of a health system’s operations, with a direct impact on quality of care, operational efficiency and sustainability. Yet while health systems have significant capital invested in property, plant and equipment, the management of energy and water resources is secondary to a health system’s core mission. Meanwhile, the technology to diversify energy sources and achieve efficiencies exists but can be an expensive investment.
Add to this the backdrop of a challenging operating environment, declines in operating margins across the industry and debt capacity limitations, and it becomes clear why some health systems are exploring ways to transfer the management of energy infrastructure to an outside organization and finance non-core projects “off-balance sheet” to preserve debt capacity for other strategic initiatives.
One solution that is gaining consideration among health systems throughout the country is Energy as a Service (EaaS),
a structure that allows owners of facilities to partner with an expert operator on efficiency improvements and cost reductions while transferring operational risk.
Additionally, in some scenarios, an organization could potentially monetize its existing energy assets and apply the proceeds to other capital projects and strategic investments or to strengthen liquidity.
As Charlotte-based Thomas Foster, director of PNC Healthcare and PNC Capital Markets LLC, explains in a white paper, the implementation of EaaS can help a health system address several priorities, from infrastructure resilience and reliability to cost management and capital investment.
Thomas Foster
“Depending on the unique needs of the health system, EaaS projects can be limited to a single facility or service – or span across multiple campuses and encompass several projects,” he says.
Project scopes may include heat pumps, centralized utility distribution systems, automated systems and controls, renewable energy implementation, lighting replacement and HVAC improvements, among others.
“Through an upfront capital commitment, a private developer can operate a project through a performance-based contract tied to the successful delivery of a service to a user – in this case, a health system,” says Foster. “Projects typically require limited investment from the user since the developer provides the capital.”
The finance component is embedded in an EaaS transaction and can be structured to be off-balance sheet for the user, depending on the organization’s objectives. Depending upon
the contract terms and transaction structure, the compensation to the developer can fluctuate based upon certain execution metrics and allow for liquidated damages to the user in the event of non-performance.
Among the potential structures for an EaaS deal is a nonrecourse availability payment transaction, wherein a special purpose vehicle (SPV) is created solely for constructing and operating the project, extending non-recourse to the equity sponsor, user and contractors.
Availability payments typically include a fixed “capital charge” to cover debt service and equity returns; an escalating “services charge” sized to cover operating, lifecycle and SPV costs (indexed for inflation); less any deductions for unavailability or performance failures (subject to a cap); plus any extraordinary items.
Financing mechanics may involve permanent financing issued through the capital markets. For example, nonprofit health systems are accustomed to using a public offering of municipal
securities (tax-exempt or taxable) for their capital needs, while for-profit entities can possibly use a taxable private placement to accredited investors.
Foster is quick to point out that every EaaS structure is unique and there are strategic, financial and accounting factors that need to be carefully considered by a health system.
Additionally, before undertaking an EaaS project or partnership, members of the management team and various stakeholders across the organization need to provide input to help ensure an EaaS arrangement solves for the challenges and opportunities the health system is looking to address.
“As North Carolina health systems continue to evolve, we expect to see continued efforts to optimize and improve energy and water infrastructure while leveraging unique financing structures with third parties,” says Foster. “Not only are these measures important for managing risk and achieving resilience for an essential sector, but they can help contribute to a sustainable future for innovation and care.”
To learn more, contact your
REGIONAL PRESIDENTS:
Weston Andress, Western Carolinas: (704) 643-5581
Jim Hansen, Eastern Carolinas: (919) 835-0135
Capital Markets Disclosure: www.pnc.com/en/corporate-and-institutional/capital-markets/disclosure.html
Public Finance Disclosure: https://www.pnc.com/en/corporate-and-institutional/capital-markets/public-finance/disclosure.html
Capital Markets LLC (“PNCCM”), member of FINRA and SIPC, is an affiliate of PNC Bank,
PNC Bank and PNCCM are subsidiaries of The PNC Financial Services Group, Inc. (“PNC”).
General Disclosure:https://www.pnc.com/en/corporate-and-institutional/pnc-general-disclosure.html PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”).
Devin Singley wrote so many beer-related papers while earning a master’s in library and information science at UNC Greensboro in 2008 that one professor said, “This seems like an obsession with you.”
So two days after his job at Charlotte’s public library was cut in 2009, Singley went to a brewery with friends and observed: people actually worked there.
Maybe he could, too.
Days later, Singley finagled an interview during a tour of Red Oak Brewery in Whitsett. Hired to manage Red Oak’s Facebook page, he made deliveries and worked the bottling line before learning to brew. After two and a half years, he made beer at a number of Triangle breweries, including Bombshell Beer Company and Fortnight Brewing, before joining Chris and Kelly Gallagher for Local Time Brewing’s launch in Holly Springs. Next, he’ll oversee the construction of a system in Lillington that will triple brewing capacity.
Their partnership clicks over a shared lack of affinity for trends.
“People buy new, right?” Singley says past employers admonished. “They’d say, ‘All right, Devin. Dance, monkey! Make something new!’ And I’m like, ‘Well, this is only new until it’s not.’ New is not a style. It’s not a flavor.”
A brewery doesn’t need a revolving door of hype-driven beers.
“Chris wanted a consistent brand,” Singley says. “He didn’t want it to be only one thing but he also didn’t want an ‘IPA of the month’ situation.” Meanwhile, Chris touts Singley’s “amazing balance between the art, the science, and the passion” of beermaking.
Like the Gallaghers, Singley thinks beer is a storytelling avenue; a brewer’s taproom, a place for people to connect. He recalls the roof-tarring scene in “The Shawshank Redemption,” where the wrongly imprisoned Andy Dufresne convinces the cruel chief guard to provide his fellow inmates “a couple of suds apiece” as they work under a broiling sun.
“He sits back, smiling, watching other people drink the beer and feeling like free men,” Singley says. “That’s the feeling I have every day.”
Declining alcohol use and backlash against ‘bad beer’ have shaken the industry. In Lillington, a craft-brewing couple see an opening.
HOPEFUL IN HARNETT
BY BILL HORNER III
My flimsy bona fides as a wine connoisseur have been propped up by a perverse sort of humblebrag: higher tariffs added an extra $67 to the fall shipment of the wine club I joined on vacation in Montepulciano, Italy, last year.
When it comes to beer, though, I can’t tell an IPA from an Amber Ale. So sharing a table at Local Time Brewing’s new taproom in Lillington with co-owner Kelly Gallagher — who, like me, prefers wine to beer — I found a bit of a kindred spirit.
Mostly, though, curiosity put me there: with craft beer sales and alcohol use waning, why are Kelly and her husband Chris, both career business consultants, pursuing against-the-grain expansion in Lillington in Harnett County — a rural crossroads not exactly known for its cultural buzz?
Tucked in on Ivey Street downtown, off U.S. 401, Local Time Brewing’s taproom opened with fanfare in August. It’s a dogged cultivation of a vibe inspired by the Gallaghers’ international travels and explorations of overseas pubs and local bars — and, in commerce, conditions difficult to manufacture during headwinds: serendipity and perfect timing.
We’re drinking less
Alcohol consumption has been dropping. A new survey reveals 46% of Americans don’t drink at all, the highest since Gallup began posing the question in 1939. It coincides with research reversing the tables on potential health benefits of moderate drinking and, perhaps not coincidentally, broader legalization of marijuana.
Production is dipping, off 3% year to date among the state’s 400 or so craft beer producers.
En route to Lillington, I popped into Hugger Mugger Brewing in my hometown of Sanford to see friend Tim Emmert, who cofounded the business eight years ago with brewer David McComas. Emmert says their enterprise (about 700 barrels annually, with 20% of that wholesaled) was holding its own. But he cited story after story about shuttered breweries and ruminated about the struggles of industry counterparts.
After breakneck growth, the COVID-19 pandemic slammed the brakes on craft beer. Payroll Protection Program loans, Emmert adds, kept open teetering breweries just as a bill as “some sort of a reckoning for bad beer” came due.
But there’s more to closings than poor product quality and misguided business philosophy. Emmert references fickle investors, landlords raising rents to unsustainable levels, and even top-tier makers facing market competition from other brewers controlled by deep-pocketed owners “with a crazy amount of money” whose vanity triumphs over negative cash flow.
Rural Route is a Business North Carolina column authored by veteran journalist Bill Horner III. He focuses on key issues in less populated parts of the state.
‘We
could make our own mark’
In Apex, where the Gallaghers lived, the pandemic also helped upend Chris’ work assisting industries with growth strategies and new market development.
“Everything that was interesting, in terms of projects, started to evaporate,” Chris told me. “What got even worse was all the travel was gone. And so when the travel and the cool projects went away, I was like, ‘I gotta do something different.’”
He told Kelly (who still consults with states on federal policies and public assistance programs) he’d seek other consulting work, but she suspected that wouldn’t satisfy him. The couple always spoke of having their own business, so in the summer of 2021 they focused on opening a taproom, on South Main Street in thriving Holly Springs.
“Even though there were already two other breweries there, we thought that, with a good location, a great product and great people, we could make our own mark,” Chris says.
The “local” in Local Time proved an homage to beers that reflect authentic inspiration from places the couple cherished. Its four flagship brews are influenced, and fueled by, ingredients from Austria, Thailand, New Zealand and the Pacific Northwest. Destinations inspiring seasonal favorites include Munich and Bavaria in Germany; Lagos, Nigeria; the Danube River; and Puebla, Mexico.
The taprooms also have select cocktails on draft, seltzers, cider and non-alcoholic drinks, plus a curated wine list. Overarching, though, was a commitment, Chris says, to product, people, brand [see sidebar story] and a welcoming environment. “Local” also meant collaborating with other brewers.
“We didn’t approach this as taking a hobby and trying to open up a business, right?” Chris told me. “You see it in the restaurant industry all the time. ‘Hey, you know, you made a great burger for me on July 4th’ … Hmm. I should go open a restaurant! That wasn’t the approach we took. We approached it as a business
That’s the lens by which we make decisions.”
Picking Lillington
While Local Time was bursting out of the gate in Holly Springs — its beers winning awards, Chris and Kelly earning “business of the year” kudos and plaudits for community engagement — a different taproom-cum-coffee shop operating in downtown Lillington was foundering.
Back in Holly Springs, Chris knew Parm Sandhar, the Lillington building’s owner. Success maxed out Local Time’s brewing capacity. The connection with Sandhar led the Gallaghers to consider shifting the bulk of their brewing operation to that available space in Lillington.
There, a potential neighbor — Danny Babb, whose insurance office shared a firewall with the available space on Ivey Street — got wind of the possibility. He drove the half-hour up to Local Time’s Holly Springs taproom.
“I went and scouted them out,” Babb told me. “They didn’t know me, I didn’t know them, and I just went to see what the atmosphere was like.”
Babb is more than a neighbor: he’s served on Lillington’s town board since 2021. He’s also a vocal proponent of transformation and touts Town Manager Joseph Jeffries’ vision to make Lillington’s downtown a viable, walkable destination — and leveraging the town’s equidistant proximity to Raleigh and Fayetteville.
“We’re also at the intersection of two other booming towns, Dunn and Sanford,” Babb says. “We are a crossroads, but we don’t want to just be a drivethrough community.”
Kelly and Chris Gallager
Part of the master plan
Babb loved what he saw. Coincidentally, the day surging COVID-19 cases led then-Gov. Roy Cooper to declare a state of emergency in North Carolina, Lillington’s town commissioners approved a new master plan for their roughly eight-square block downtown. It was March 10, 2020, and that vote codified a vision for a vibrant and transformed downtown.
The primary feature, and bug, of downtown Lillington is the U.S. 421/401 intersection a stone’s throw from Babb’s office. Some 41,000 vehicles pass through daily. The nearby Cape Fear River also hems in the town. A hopedfor bypass project will help divert the traffic; the master plan also puts utilities underground, triples downtown parking, improves infrastructure, and adds space for around 20 retail shops, plus condominiums.
Local Time proved an ideal fit. “It’s increased the traffic flow on our block,” Babb says. “It’s taken a building that was out of business for a year and a half and revitalized it. And it’s good for everyone’s business This means the world to a small community.”
In short, it’s a cultivation of the same atmosphere that evolved Holly Springs. After all, Lillington (population 4,700) is growing, too: 11,000 new residential lots have recently been approved; another 1,000 are anticipated.
Babb’s fellow commissioner, Lillington native Patricia Moss, is also ecstatic about Local Time’s plans.
“I just wanted to hug and kiss them,” she says of the Gallaghers. “I was thrilled to have a business that would attract people to our town, and to help us be a destination — not just a massive traffic jam at that intersection.”
A place to belong
Local Time’s brewer, Devin Singley, thinks Lillington will work for the business because its strategy is simple and focused — and “not trying to be super transactional.” Chris adds that beyond the product, a core value for Local Time is to be a welcoming place.
“We want to make sure that, in our own little way, we help people feel comfortable being neighbors with each other,” he says.
Which speaks back to what Kelly says about the “general vibe” and lifestyle nurtured in pubs in town centers across Europe.
“We see people come in all the time, and they see people they know, and join tables — or meet people at the bar they’ve never met before,” she says. “That communal aspect … you feel like you belong, and it’s a place you want to come back to.” ■
Bill Horner III is a third-generation newspaper publisher who was an owner and editor of The Sanford Herald and the Chatham News + Record. He and his wife Lee Ann live in Sanford. Reach him at bhorner@businessnc.com.
The discussion was sponsored by:
•Greensboro Area CVB
•Greenville-Pitt County CVB
•Pinehurst, Southern Pines, Aberdeen Area CVB
•Visit Sanford
•Visit North Carolina
THE SHOW GOES ON
North Carolina’s travel and tourism industry is facing a triple whammy. There’s government policy uncertainty, budgets tightened by inflation and lingering effects from Hurricane Helene. But its members are moving forward, looking to build on a record $36.7 billion in visitor spending last year. They’re adding and improving attractions, marketing more and turning visitors into residents. Business North Carolina recently gathered five of its leaders to discuss the industry’s current state, their solutions to its challenges and how they plan to keep North Carolina one of the country’s most-visited states. Their conversation was moderated by Publisher Ben Kinney. The transcript was edited for brevity and clarity.
Photography by Bryan Regan
Andrew Schmidt president and CEO, Greenville-Pitt County Convention & Visitors Bureau
Anthony Cordo president and CEO, Greensboro Area Convention & Visitors Bureau
Wendy Bryan executive director, Sanford Tourism Development Authority
WHAT IS THE INDUSTRY’S CURRENT STATE?
TUTTELL: I’ve been in the industry for 30 years, including time in Florida dealing with hurricanes and shark attacks, and I have never seen anything like Hurricane Helene in western North Carolina. It’s amazing how far we’ve come in a year. The region’s state parks and most of the Blue Ridge Parkway are open. Many impacted communities are welcoming visitors again, though some will need more time to recover. Some will be different moving forward. I’m hopeful that rebuilding includes resiliency. Storms like Helene are no longer once-in-alifetime events.
The worst in times brings out the best in people. It was amazing to see the entire community help with recovery. Phil Werz’s destination, for example, was a way station for goods and assistance.
Visitor spending statewide was up 3.1% in calendar year 2024. It’s expected to be flat this year. Some mountain communities are down about 20%. Commercial lodging has done better than vacation rentals. That’s likely because of recovery work, so the numbers are hard to judge. Tourism is experiencing a national slowdown. When that happens, whether because of economic uncertainty or something else, North Carolina fares better than most states. We have a great location, and it’s easy to get here. We’re not seen as expensive, and there’s plenty to do.
North Carolina’s population is growing. More than half its residents weren’t born in the state. Everybody assumes you’ve seen everything if you grew up here.
But it’s a first-time visit for many people. Most of the state’s destination marketing organizations spend more of their marketing dollars on in-state travelers than out-of-state travelers.
WERZ: Our bull’s-eye is the Carolinas, but our target includes Atlanta and Washington, D.C. The state’s DMOs (Destination Marketing Organizations) compete for tourism dollars. But when something the magnitude of Hurricane Helene happens, they support each other. We want the state to be successful. When visitors have a great experience in Pinehurst, for example, they’re inspired to explore the mountains, Greensboro, Sanford and other parts of the state. Drive across the state, and you’ll enjoy many cultures and experiences, each authentic to North Carolina.
SCHMIDT: Our growth has been steady. We set another record in visitor spending in 2024, when visitors spent $320.1 million. Equally important is the record number of hospitality-related jobs that are impacting Greenville and Pitt County. During the 2024 calendar year, 2,108 residents were employed within the industry, which plays a pivotal role in the overall success of our travel and tourism efforts and the health of our economy. We are blessed to have a variety of hospitality markets that we can accommodate, including meetings, conventions, reunions, leisure, medical, outdoor recreation and sports tourism.
HOW ARE QUALITY OF LIFE AND TOURISM CONNECTED?
CORDO: I’ve lived in five states, and North Carolina has a lot going for it. You can be in the mountains or on the beach.
You can walk in the woods or visit a large city. It’s a micro version of the country or world. I see why so many residents choose in-state travel. Those options resonate with out-of-state or -country visitors, too.
Greensboro’s large population is growing. Its economic base is transitioning. Many manufacturers were lining up to leave a couple decades ago. It was a rough time. But when things go down, they eventually go back up, especially when you have good infrastructure, a large population, and good education and healthcare systems. People want to live in those communities, and they’re where jobs move to.
Greensboro has potential to be a cool hipster community, where recent graduates, young professionals and creative class people can afford to live. It’s not there yet, but it’s transitioning. That would be a natural progression for Greensboro.
Some large manufacturers are choosing Greensboro. They see it as a place where people would want to live. That’s tourism. That’s group business for us. It’s visits from friends and family.
BRYAN: Sanford has a similar story — a small community that lost traditional manufacturers and jobs. Then pharmaceutical companies arrived, rebuilding the economic base. The community began to share and invest in that vision. We have assets that were probably unimaginable 15 years ago. We recently built a sports complex — Lee County Athletic Park. We’re building a regional farmers market. We’re renovating our depot.
While many people love living here, we weren’t necessarily attracting residents. When your community improves its quality of life, people want to visit and experience it. Then they discover it has affordable living. Golf and weddings are our top visitor entry points. But our welcome center’s No. 1 visitor is a new resident. They want to explore living here.
WERZ: Pinehurst has historically been seen as a retirement community. While its demographic might be slightly older, Southern Pines is home to many young families with children. It’s at Fort Bragg’s backdoor. More soldiers and their families are choosing to stay in the county after completing their service.
Phil Werz president and CEO, Convention & Visitors Bureau for the Pinehurst, Southern Pines, Aberdeen Area
Wit Tuttell executive director, Visit North Carolina
Our strategic marketing plan celebrates small towns. People crave their authentic experiences. You can shop Southern Pines, visit Seagrove pottery studios or enjoy high tea at Lazy Fox Lavender Farm in Cameron. Brad Halling and his wife, Jessica, operate BHAWK Distillery in Southern Pines. People travel from around the world to sample their creations and meet Brad, an American hero who fought in the Battle of Mogadishu in 1993. These people are tourism leaders. They tell stories. And that’s what we’re about, telling stories.
WHAT CHANGES ARE YOU EXPLORING OR ENACTING TO ATTRACT MORE VISITORS?
SCHMIDT: There are some exciting developments that will support recreational opportunities and sports tourism, one of the industry’s fastest-growing sectors. Greenville recently acquired the ECU North Recreational Complex through a lease agreement. NRC’s eight outdoor fields can host a variety of recreational
tournaments and events. NRC will undergo several upgrades over the next 15 months. They include additional fields, which will allow it to host larger youth and adultamateur tournaments. The city also is under contract to purchase two parcels of land, where it will develop a 12-diamond complex for baseball and softball tournaments. Its design work should begin early next year.
Pitt County recently opened two 25,000 -square-feet indoor recreational centers to support sports, recreation and fitness.
WERZ: We’re close to returning commercial flights to Moore County Airport. That service ended about 20 years ago. A daily flight would fly to and from Dulles International Airport in Washington, D.C. That hub connection would get people anywhere in the world. It would be a gamechanger.
A recent study found there’s no better place with an airport our size in the country to start commercial service. There
is demand. Golfers and members of the healthcare and defense industries want it. And our population is expected to grow to about 180,000 from about 108,000 during the next couple decades. So, we’ve worked closely with our economic development partners, state Sen. McInnis and other lawmakers to make it happen.
Golf is our bread and butter. I tell Pinehurst Resort President Tom Pashley to keep resort owner Mr. Dedman happy, because he spends money — doubling, tripling, quadrupling down on golf. The resort is expanding with Pinehurst Sandmines, where it opened a restaurant, Station 21. Its No. 10 course opened last year, and its No. 11 will open in 2027. The U.S. Open is returning every five or six years through 2047. USGA has its Golf House Pinehurst, and World Golf Hall of Fame and the USGA Experience opened last year.
Kelly Miller and his ownership group are renovating accommodations at their Pine Needles and Mid Pines clubs. They have some of the best Donald Ross-designed
golf courses in the country. If they can take the lodging to the level of the courses, it’ll be a home run. The work is expected to be done before 2029, when the U.S. Open returns to Pinehurst with the men’s and women’s championships in consecutive weeks on the same course. That has only happened once — Pinehurst No. 2 in 2014.
HOW DO YOU KEEP VISITORS COMING BACK?
TUTTELL: North Carolina is a collection of interesting places. It has natural beauty, and it’s hospitality is well-known. That mix will help us well into the future.
The ability to work remotely has encouraged people to see places further from the big cities. That’s an advantage for North Carolina, which is home to many small destinations. Technology helps people find information about them, and social media helps them reach people.
CORDO: Greensboro is an event-driven destination. When we host an event,
festival, conference or whatever it may be, it must make people loyal to our destination for that purpose. You must create the value proposition or attendee experience that makes the meeting planner want to return. You can market all day long, but if visitors’ expectations aren’t met, they won’t return.
North Carolina is undergoing a renaissance. Destinations and accommodations are going to the next level, because the experience matters. Those improvements, whether to buildings or customer service, are happening statewide.
BRYAN: Sanford residents are friendly. They talk to you on the street, and they treat you like family. That geniality has made destinations out of some businesses, including Mrs. Lacy’s Magnolia House. Its owner, Faye Schulz, will hug your neck when you arrive. She’ll make sure you hear about today’s dessert, then she’ll save you a piece in the kitchen. Temple Theatre’s producing artistic
director, Peggy Taphorn, danced on Broadway, where many other staff members worked or performed. They stage professional productions in an intimate 300-seat setting, making you feel part of the show. They take pride in providing great customer service. We want you to come back.
More than 50% of weddings at our local venues involve out-of-town couples. The owners manage the weddings, and they want everyone to be happy. Todd and Amanda Anderson, for example, own Daniel’s Ridge. When a bride added a bridesmaid on the wedding day, Amanda called the florist, who made another bouquet and delivered it as the girls were walking down the aisle. These businesses help more than themselves. They impact all their vendors. Small businesses are the lifeblood of our community. As they and our manufacturing base grow, the community expands its amenities.
WERZ: Tom Pashley says Pinehurst isn’t
a bucket list destination; you don’t check it off and never return. We want you to keep coming back. When I stop at The Cradle Short Course in Pinehurst, I meet a variety of people. There are first-timers. Some have been coming for decades, and others crossed an ocean to get here. It’s a cross section of visitors. It’s a melting pot for golfers and people seeking an authentic experience.
WHAT IS TOURISM’S ROLE IN ECONOMIC DEVELOPMENT?
BRYAN: We’re part of a team that includes Downtown Sanford and Sanford Area Growth Alliance. We touch base on almost every project, whether it’s a visitor experience or benefit to residents. We might host industry representatives, showing them that this is a desirable community.
Sanford has invested in streetscapes. Historic buildings have been renovated and preserved. People learn our history by following the mural trail or taking a ghost tour. You see the pride in the blending of assets and investments.
TUTTELL: Tourism is economic development’s front porch. One reason behind North Carolina’s great economic development wins is it’s a place you want to visit, and you want to live here. That drives a lot of it. In certain wins, companies said they chose this place because their employees want to live here. That desire makes it easier to find workers.
CORDO: Not every state understands that business relocation is more than a tax break. You also need to be a place where your employees want to relocate, and you can find talent. It needs to be fun for young professionals through soon-tobe retirees. That’s where tourism kicks in. It helps drive jobs and people, whether they’re new residents or visitors. A close relationship with economic developers is important for the tourism industry.
SCHMIDT: I represent the travel and tourism industry on Economic Development Partnership of North Carolina’s board of directors. EDPNC and local economic developers do a tremendous job of selling the state.
CNBC named it the country’s Top Place for Business in 2022, 2023 and 2025. Our statewide and local travel and tourism offices are crucial to that success. Each economic development opportunity starts with a visit. Site selectors tour communities, exploring and learning as any other visitor.
WERZ: Ground is being cleared and graded in nearby Richmond County for Amazon Web Services $10 billion cloud computing and artificial intelligence investment. It includes 10 buildings, each 200,000 to 220,000 square feet. AWS told me it would need 2,000 hotel rooms per week for the next seven to 10 years. Moore County has 2,300 hotel rooms, but there are three or four more hotels on the way. One debuts this fall.
Local economic developers are talking with a major golf partner that’s planning a 36-hole course resort with lodging near Carthage.
WHAT CHALLENGES DOES THE INDUSTRY FACE?
TUTTELL: The two biggest are affordable housing and daycare. They’re mentioned in many economic development discussions, but they’re important to tourism, too. Our workers need them.
WERZ: Affordable housing is a big issue in Moore County. We need hospitality workers. Pinehurst, for example, probably could use a couple hundred more. But they can’t work here if they can’t afford to live here.
CORDO: North Carolina is growing but not so fast that a bubble is forming, its culture is being subverted by outsiders or issues that quickly become NIMBY — not in my backyard — are being created. People who come here want to adopt the state’s culture, including its friendliness. Why would they bring the negativity usually found in fastpaced places or lifestyles.
The legislature is committed to thoughtful development. The state has a good road system. There are problems, as there are everywhere, but you can get where you want in a reasonable amount of time.
SCHMIDT: My biggest challenge is
political uncertainty. The state House and Senate are working through their budget processes, and the federal government shut down in October. These uncertainties make it difficult to plan long or short term, whether how to spend tourism generated dollars or how many will be available in the future.
HOW DO INDUSTRY MEMBERS COOPERATE?
TUTTELL: Tourism’s business diversity often goes unrecognized. Most people think tourism is hotels, restaurants and attractions. But many companies support and are impacted by the industry. Laundry companies work with hotels, for example, and banks finance deals.
WERZ: Regional tourism is important. While Ben Owen lives in Moore County, his well-known Seagrove pottery studio is in Randolph County. We often promote Seagrove, even though it’s a 40-minute drive from Pinehurst. If you’re playing golf here, you’re wife may want to go there. It’s similar to NASCAR returning to Richmond County. That race has a regional economic impact.
BRYAN: When Sanford Area Growth Alliance or the welcome center hosts a meeting, attendees usually arrive about 30 minutes early, because we’ve shortened the trip to Sanford, which lacked a four-lane highway until the late 1990s. Once U.S. 1 expanded, there’s one from every direction. They make it easy to get to neighboring communities. They handle hospitality overflow during our big events such as Southern Side by Side Championship and Exhibition at Deep River Sporting Clays. And we get Moore County’s overflow during the U.S. Open.
Overflow is a good problem, but we’re examining capacity. Wicker Center has space, but lodging is needed. A Fairfield Inn is opening this year, adding supply for the first time in 40 years.
Visit NC’s advertising co-op program allows you to purchase advertising and earn media through public relations. We adopted that model for our partners. Our first six have already realized an impact. We share their media, promoting their business and driving people to them. We help them find the most beneficial paid media. We’re offering more
support and hitting better targets. Those businesses bring people to town. We want everyone to have the information they need to have a great time here.
WHAT’S THE CURRENT BALANCE BETWEEN LEISURE AND BUSINESS TRAVEL?
CORDO: We pursue meetings and conventions. Our focus is aviation, because Greensboro is seeing success in that industry. I want more CEOs in town. Tourism is the first stop before moving your business.
The current market is tough. Federal group travel has disappeared. That’s not a political statement; it’s fact. That’s opened gaps in convention center and meeting space schedules, especially in the Northeast. They’re feverishly looking for business and cannibalizing other places. Company and consumer spending are slowing, too, so the market probably has some rough years ahead.
But North Carolina is in a unique position. It’s a one-stop flight from almost anywhere
in the world. It’s a day’s drive from about 50% of North America’s population. It’s relatively inexpensive, even in our metropolitan centers, so we get closer to per diem than many places. So, while it’s a tough time for group sales, they’re not impossible in North Carolina. That’s better than many places can say right now.
Cvent, a large company that sources meetings, compiles an annual top-10 list of meeting cities. They’re ranked by volume, so there are no surprises — Orlando, Chicago, Las Vegas and other massive places. We recently studied that list and found meeting planners could save 40% to 45% on core costs by choosing Greensboro compared to any of the top 10. I think that’s the situation in most of North Carolina. We’re a value.
WERZ: Before the COVID pandemic, our travel mix was 45% leisure and 55% business especially for our major tourism partners. Now, leisure is nearly 80%. Business travel is decreasing, but not for a lack of demand. I’ve recently received 18 inquiries about hosting groups from 250
to 1,000 people. Pinehurst and its vicinity have limited capacity for those groups, so we’re zero for 18 on those. We should be six for 18, even three for 18.
I recently shared those calls with my board members. I didn’t recommend an action, though that’s thousands of people and millions of dollars, especially with the occupancy tax doubling to 6% starting Jan. 1, going elsewhere. If they choose not to pursue those, I’m all for more investments in golf.
BRYAN: Our meetings-and-conventions business was up last year based on Wicker Center visits. We want business that best fits our growing advanced manufacturing base, including corporate meetings, training and weekday retreats. We believe we have the right amenities and advantages for them. We can meet the per diem and offer free onsite parking, which is important. Our hotels offer competitive rates. It’s a matter of getting more people to realize that we can be a destination.■
Bold and beautiful
An annual look at the state’s best new and rehabbed structures.
By Kevin Ellis and Natalie Bradin
Construction’s contributions to North Carolina can be counted in many ways. The $1 billion Pearl complex has led to a highly anticipated medical school and a separate magnet attracting leading global surgeons to study in Charlotte. Toyota’s $14 billion battery plant in Randolph County strengthens the Tar Heel state’s participation in creating a clean energy future.
CN Hotels’ development of a dual-branded Hilton hotel gave the state capital the highest rooftbar in the Triangle. Northwood Development has turned Charlotte’s Ballantyne area, long known for its massive office complex, into a popular place to eat, drink and enjoy live entertainment.
Then there’s Champion Credit Union’s decision to move forward with a new corporate headquarters in Haywood County, demonstrating the resiliency of Canton residents affected by Tropical Storm Fred and the closing of a dominant regional employer. In Bessemer City, a long-abandoned Gaston County textile mill now offers 139 affordable housing units.
Making a difference in communities was a common theme as Business North Carolina recognizes the most important new buildings to open in the year ending June 30. This marks the 12th year for the project, which is put together by the BNC editorial team with input from representatives of the state’s construction and architecture industries.
The list includes nine category winners and eight honorable mentions. The buildings represent some of the biggest investments in state history, some of its tallest office towers and largest residential developments, as well as hospital facilities that promise better access to healthcare. Renovation projects that preserved cultural heritage also show up on the list. Construction contributed $41.4 billion to the state’s gross domestic product last year, about 5.6% of the total. The industry employs about 280,000 workers in the rapidly developing state.
THE PEARL
CHARLOTTE
Developers: Atrium Health (Charlotte) and Wexford Science & Technology (Baltimore)
Contractors: Whiting-Turner Contracting (Baltimore) and R.J. Leeper Construction (Charlotte)
Architects: Ayers Saint Gross (Baltimore) CO Architects (Los Angeles) and Neighboring Concepts (Charlotte)
Cost: $965 million
Size: 643,000 square feet (Phase 1)
The 26-acre innovation district is built around the Charlotte campus of Wake Forest University’s School of Medicine, merging the city’s health, research and education sectors. The Pearl opened its first phase in June as a collaboration between Atrium Health, Baltimore-based Wexford Science & Technology and Ventas, a Chicago-based real estate investment trust.
The Pearl’s first buildings include the 14-story Howard R. Levine Center for Education, which includes the medical school, and a 10-story research building, which houses IRCAD North America.
Those structures include 643,000 square feet of lab, academic, research, office and retail space. Plans call for as much as 4.2 million
square feet of additional development over the next 15 years.
Construction of a hotel is expected to start next year, Atrium officials say.
The Pearl is projected to generate more than 5,500 on-site jobs and spur the addition of 6,000 more across the region, entailing an investment topping $1.5 billion.
The IRCAD North America site will attract more than 8,000 surgeons annually to study emerging techniques in cardiovascular, neuro and orthopedic surgeries, among others. The first course launched in September.
Architect: NewGround International (Chesterfield, Missouri)
Cost: $23 million
Size: 30,000 square feet
hampion Credit Union finished its new headquarters in May, overlooking the former paper mill where seven employees of the former Champion mill came together in 1932 to found what was then known as Champion Savings and Loan. Building plans were announced in 2022, but construction began after Pactiv Evergreen announced the plant’s closing in March 2023, idling more than 1,000 people in a town of 4,400 residents.
The project became a testament to the town’s resiliency and the credit union’s commitment to Canton, says CEO Jake Robinson.
The mostly stone and glass facade offers picturesque views of the surrounding Great Smoky Mountain range. The new building consolidates back office operations and administrative work that had been done in three separate buildings.
The city of Canton bought the credit union’s two former buildings for a new town hall and police department offices. Both need renovations that are expected to be completed over the next 18 months. City staffers still operate out of Federal Emergency Management Agency trailers after Pigeon River flooding during Tropical Storm Fred slammed Canton in August 2021.
The 12-story office tower begun in September 2022 is the first building completed as part of the $1 billion, 40-acre development known as The Exchange. Over the next seven to 10 years, it is slated to include 990,000 square feet of office space, 125,000 square feet of retail and restaurant space, 300 hotel rooms and 1,275 apartments, condos and townhomes.
Building features include outdoor meeting spaces on each floor, an amenity terrace on the top floor and an eight-story, double-helix parking deck with 1,585 spaces. An adjacent park will include walking trails, an amphitheater and connections to an existing greenway.
It’s Raleigh’s first WELL- and LEED-certified project, tied to
sustainable energy and environmental designs.
Plans call for a skybridge to connect 1000 Social with a mirror-image counterpart, 2000 Social, once that building is constructed.
Uzun + Case were the structural engineers; Crenshaw Consulting Engineers handled mechanical, plumbing and electrical; and Advanced Civil Design was in charge of civil engineering. RJTR was the interior designer and Studio Outside was the landscape designer.
Fifty percent of the building was pre-leased. The first tenant, Raleigh-based Whitley Law Firm, moved into its second-floor office last year. CBRE managed leasing.
ASHEVILLE REGIONAL AIRPORT NORTH CONCOURSE
Asheville Regional Airport completed construction of its North Concourse in June, where most of its operations will take place for the next two-plus years. Planning began in 2019, while demolition of the old north concourse started in August 2023.
The North Concourse includes Gates 7 through 12, new restaurants, an art gallery and floor-to-ceiling, electrochromic windows that offer picturesque views of the Blue Ridge Mountains while helping keep the terminal cool on hot days.
The project is part of a five-year, almost $400 million construction project expected to be completed by early 2028. It’s
the largest infrastructure project in the airport’s 64-year history. Workers are also replacing the South Concourse, which will include a new main entrance and Gates 1 through 6. Some operations still take place in the “legacy” concourse, including baggage claims and car rentals. Those areas will be replaced in phases.
Once complete, the new concourse will be 150% larger.
The Asheville airport attracted more than 2 million passengers for the first time in 2023, and did it again in 2024. The number of nonstop destination flights increased from 10 to 27 between 2013 and 2023.
TOYOTA BATTERY MANUFACTURING, NC
LIBERTY
Developer: Toyota (Aichi, Japan)
Contractor: Aristeo Construction (Livonia, Michigan)
Architect: SSOE Group (Toledo, Ohio)
Cost: $13.9 billion
Size: 7 million square feet
Toyota Battery Manufacturing, 20 miles south of Greensboro marks the global marks the global automaker’s first in-house battery plant outside Japan and its 11th U.S. manufacturing plant. Toyota began shipping batteries from the plant in April. It will feature 14 production lines, with four dedicated to hybrid electric vehicles and 10 for battery electric and plug-in hybrid electric vehicles.
Spanning 7 million square feet on roughly 1,825 acres, the campus represents a nearly $13.9 billion investment, with plans to employ about 5,100 people once fully operational. The production build-out will occur in phases through 2030.
The project is expected to supply batteries for Toyota and Lexus electrified models. The company sold a record 1.006 million electrified vehicles in North America in 2024, up 53% from the year before. That represents 43% of its total sales volume. Second quarter electrified vehicle sales increased 29.7%, representing 48% of total sales volume.
The company offers 32 Toyota and Lexus electrified vehicle models, more than any other automaker.
N Hotels opened the 261-bed, dual-branded Hilton hotel located between the state Capitol and Raleigh’s Warehouse District in December. Its location makes it an easy walk to some of the city’s popular restaurants and bars, and entertainment venues like Red Hat Amphitheater, Lincoln Theatre and The Pour House Music Hall & Record Shop.
Homewood Suites has 134 rooms and caters to extended stay guests, while Tempo’s 127 rooms are geared toward lifestyle-
focused travelers. The Raleigh location for Tempo is a first for North Carolina. It is managed by Tampa, Florida-based McKibbon Hospitality.
Urban Oak, featuring tapas plates and cocktails, is on the 13th floor, making it the tallest rooftop bar and lounge in the Triangle area. CN Hotels’ owners, the Patel family, have been operating hotels in North Carolina since the 1970s.
LOFTS AT OSAGE MILL
BESSEMER CITY
Along-vacant textile mill now has 139 apartments to rent in an affordable housing project that city leaders say will be key for downtown redevelopment. Town founder John Smith built the mill in 1896 for his Southern Cotton Mill. It employed more than 400 in its heyday, but closed for good in 1995. After almost 30 years of vacancy, construction started on the project in 2023. The first residents moved into the one-, two- and three-bedroom apartments earlier this year.
The redevelopment preserved the building’s brick exterior and historic features while adding a resident lounge, business center and fitness room. Skylights bring natural light into the building’s interior atriums, illuminating its wooden beams and original flooring.
The North Carolina Housing Finance Agency supported the project with tax-exempt bonds issued by the Gastonia Housing
Developer: WinnDevelopment (Boston)
Contractor: Rehab Builders (Winston-Salem)
Architect: Tise-Kiester Architects (Chapel Hill)
Cost: $36 million
Size: 250,000 square feet
Authority. Bank of America provided construction and permanent financing, as well as equity under the federal Low-Income Housing Tax Credit program, the federal Historic Tax Credit program and the state’s Mill Rehabilitation Tax Credit program.
The Lofts at Osage Mill is WinnDevelopment’s first adaptive reuse project in North Carolina. Collaboration with Duke Energy ensured the building’s design conformed to Energy Star guidelines to maximize energy efficiency.
Apartments will be rented to households earning 60% of the area’s median income, which is less than $53,880 for a two-person household. Monthly rent for the 50 one-bedroom apartments will be $1,125; rent will be $1,352 for the 77 twobedroom units; and $1,160 for the 12 three-bedroom units. As of mid-September, all but 15 of the apartments were occupied.
Developer: Portman Holdings (Atlanta); National Real Estate Advisors (Washington, D.C.)
Contractor: JE Dunn Construction (Kansas City, Missouri)
Architect: LS3P Associates (Charleston, South Carolina)
Cost: Not disclosed
Size: 360,932 square feet (apartments only); 614,385 square feet total
Aglass exterior and 23rd-floor year-round outdoor pool make this 24-story tower stand out in Charlotte’s South End neighborhood, which is home to an estimated 18,000-plus residents. Move-ins began in January to the 370 apartment units, which lease for about $1,800 to $5,000 per month, and 13 penthouses that lease for as much $9,500 a month.
A skybridge offers a connection to The Line office tower, which includes Sycamore Brewing on the ground floor. The parking garage shares 766 parking spaces with The Line. It also has 18,700 square feet of retail space.
Linea has a prime location on the city’s bike-and-walk Rail
Trail, as well as 18,000 square feet of retail and restaurant space, including Night Swim Coffee, Peachy Salon and Half Shell Oyster House. Charlotte Area Transit System has plans for adding a light-rail stop nearby.
In additio to the heated pool on the 23rds floor, the sun deck has loungers, fire pits and grill stations. The floor includes an athletic club that has a two-story rock climbing wall, co-working space, lounges and game rooms.
Portman’s Charlotte developments have included the Westin hotel uptown, which opened in 2003; the 615 South College building, which opened in 2017; and the 16-story Line building, which was completed in 2022.
THE BOWL AT BALLANTYNE
CHARLOTTE
Developer: Northwood Development (Charlotte)
Contractor: Rodgers Builders, (Charlotte, joined Tokyo-based Kajima in 2004) (retail and infrastructure), Samet (Greensboro) (residential)
The Bowl at Ballantyne represents a transformation of South Charlotte’s sprawling office park into a walkable, mixed-use neighborhood. The project, spearheaded by Northwood Development, is anchored by a 20-acre core that combines retail, dining, entertainment, multifamily residences and public green space. The development aims to provide a main street atmosphere in what was once primarily corporate campus land.
Phase I included more than 90,000 square feet of retail, a 350-unit, 26-story residential tower, a 6-acre stream-park, and a myriad of retail and restaurant buildings. The Bowl also offers a 5,000-person capacity outdoor amphitheatre to foster commu-
nity gathering through music and other live events. The mix of tenants includes s includes both local favorites like Olde Mecklenburg Brewery, Bossy Beulah’s Chicken Shack and Rooster’s Wood-fired Kitchen, along with national names like The Salty Donut and Postino WineCafe.
The Bowl is part of a larger $1.2 billion acquisition of 535 acres by Northwood from Bissell Companies in 2017. Phase 1 cost approximately $111 million in infrastructure. Phase 2 has yet to commence, but the expansion may include 1,000 multifamily units, 300 townhomes and 400,000 square feet of office.
Its outdoor concert venue, The Amp, will become a pop-up ice skating rink during the holidays.
CAROMONT HEALTH
BELMONT
Developer: CaroMont Health (Gastonia)
Contractor: Robins & Morton (Birmingham, Alabama)
Architect: McMillan Pazdan Smith Architecture (Charlotte)
Cost: $260 million
Size: 275,000 square feet
CaroMont Health opened its 54-bed hospital in January, which is expected to serve about 30,000 patients a year. Most will come from Gaston County, but other areas served include neighboring Mecklenburg and Lincoln counties and York County, South Carolina.
CaroMont Health built the hospital on a 28-acre campus adjacent to Belmont Abbey College, which is the county’s only four-year college. Benedictine monks a liated with the state’s only Roman Catholic college leased the land to CaroMont to build the hospital. In return, CaroMont helped Belmont Abbey start a nursing program, and its students will train at the hospital and create a nursing pipeline for the county’s healthcare system.
Visible from Interstate 85, the hospital is located near the Mecklenburg County line. It’s the centerpiece of a pledge CaroMont Health made in May 2019 to invest more than $400
million in construction and expansion projects in Gaston County. CaroMont Health le the h oor of the hospital vacant in anticipation of adding 24 beds later. Rooms are 250 to 260 square feet, which is more than double the size of rooms in the original tower at the Gastonia hospital. Newer rooms at the main hospital are larger.
e campus includes a 100,000-square-foot medical o ce that opened in September 2024 and a four-story parking deck. CaroMont’s total investment in the campus is about $315 million.
CaroMont Health started in 1946 as a tribute to soldiers killed in World War II. It includes a 476-bed hospital in Gastonia that was called Gaston Memorial until 2000. e not-for-pro t authority competes regionally with larger rivals Charlotte-based Atrium Health and Novant Health, which is based in Winston-Salem.
The six-story patient tower opened in August 2024, which allowed the 184-bed hospital to triple the size of its emergency department and almost double the number of intensive-care unit beds from 16 to 30.
e new ICU oor is almost ve times larger than the old one, with more spacious rooms and life-saving equipment. Family members have access to a sleeper sofa and recliner. e layout ensures nurses are always close to the sickest patients. Electronic patient information signs inside rooms update in real-time.
e Emergency Department has 29 exam rooms, including four trauma rooms with advanced equipment to stabilize patients. Rooms have also been made safer for the behavioral health
population. It also has consultation and grief rooms and a more extensive waiting area. A connector corridor leads directly to MRI testing or the surgical suite for faster transport times.
e tower also includes a roo op helipad. e landing pad had been located behind the hospital, requiring patients to be taken there by ambulance. ree oors of the tower are shells awaiting up tting for future needs.
Construction on the patient tower began in June 2022. In October 2021, UNC Health and Carolinas Healthcare System Blue Ridge nalized a 10-year management services agreement. Financial details weren’t disclosed. Previously, the hospital was a liated with Charlotte-based Atrium Health.
HONORABLE MENTION - INDUSTRIAL
WINSTON-SALEM
Developer: Front Street Capital (Winston-Salem)
Contractor: Landmark Builders (Winston-Salem)
Architect: Triad Design Group (Greensboro)
Cost: $108 million
Size: 522,000 square feet
After outgrowing its space in Greensboro, German-based Ziehl-Abegg made its largest global investment to date to move 12.5 miles away and build a site almost four times larger for its U.S. base.
e 115-year-old company manufactures motors, drives and fans for the heating, ventilation and air conditioning industry. It moved into its new space in July 2024. When it broke ground in February 2023, the company employed about 230 workers in Greensboro, but expects to have more than 800 working in Winston-Salem over the next ve years. Ziehl-Abegg had been located in Greensboro since 2004.
e project won the 2024 Industrial Project of the Year from
the state chapter of the Commercial Real Estate Development Association for its functionality, innovation and economic value to the community. e building features a two-story o ce, a variety of workspaces, a production area with 30-foot clear height and a process showroom.
e Winston-Salem location oversees the family-owned company’s business in North America, where it has nine sales o ces in the U.S., three in Canada and one in Mexico.
Forsyth County and the city of Winston-Salem provided about $1 million in incentives for the project, while the state contributed a $400,000 economic grant contingent on Ziehl-Abegg hitting investment and job growth goals.
HONORABLE MENTION - RENOVATION
TOWERS AT SOUTHPARK
CHARLOTTE
TDeveloper: Crestlight Capital (Detroit)
Contractor: Barringer Construction (Charlotte)
Architect: Redline Design Group (Charlotte)
Cost: $20 million (renovation)
Size: 534,263 square feet
he Towers is a two-building office campus encompassing 534,263 square feet of office space, and represents the tallest structures in SouthPark at 13 and 14 stories, respectively. In May 2022, Crestlight Capital acquired the property for $192.5 million and initiated a renovation plan, the first since the Towers opened in 1998.
Dated entrances were replaced with modern facades. Former dark granite lobbies are now bright and airy, with modern lighting. A vacant office space was converted into a 4,000-square-foot
tenant lounge with a coffee bar, a conference room for 30-plus and a smaller boardroom. An on-site fitness center was doubled in size, with new showers and upgraded equipment.
Celebrity chef Bobby Flay opened his Bobby’s Burgers restaurant in summer 2024 in the former Zoe’s Kitchen space. Birmingham, Alabama-based Oakworth Capital Bank opened its first North Carolina location in the Towers. The buildings are also adjacent to The Loop, a three-mile urban trail under construction that will connect different places in the SouthPark area.
THE WELD RALEIGH
Developer: SLI Capital (Raleigh)/ Mack Real Estate Group (New York City)
Contractor: Clancy & Theys (Raleigh)
Architect: Gensler, (San Francisco) / JDavis (Raleigh)
Cost: More than $300 million
Size: 878,500 square feet (combined)
The first of two 20-story apartment towers, the Holston, opened in June, offering 283 residential units, while the second building, The Ray, will begin leasing its 392 units soon.
The apartments are adjacent to the city’s 308-acre Dorothea Dix Park, which is replacing a former psychiatric hospital and government office complex. Floor-to-ceiling windows take advantage of natural light. The two towers have different aesthetics and unit sizes to complement one another.
The Holston features a 20th floor Sky Lounge and Terrace and a year-round, heated pool on Level 7 along with a game floor. The Ray has a Level 8 pool with grills, c cabanas, outdoor lounge and bicycle vault. Both have fitness centers and pet spas. Both have fitness centers and pet spas.
Bryan Kane and John Pitt founded SLI Capital in 2017 and have been involved in projects totaling more than $2 billion.
Construction on a second phase is expected to begin in 2026. Plans include another apartment tower with 525 units, a hotel and about 20,000 square feet of retail space.
110 EAST
CHARLOTTE
Developer: Stiles (Fort Lauderdale, Florida) and Shorenstein Properties (San Francisco)
A3,000-square-foot terrace offering unobstructed views of Uptown from the 11th floor, a 4,000-square-foot fitness room and a 100-seat conference room are some of the amenities of this 23-story office tower.
Construction on the property began in January 2022 and it was delivered in mid-2024. The top 13 floors are office space, which sit atop a 900-space parking deck.
East / West LYNX station and platform are integrated into its ground-level public plaza, which will include 7,000 square feet of restaurant and retail space. The Blue Line Light Rail connects commuters to UNC Charlotte, South End, Interstate 485 and the NaDa and LoSo neighborhoods. The adjacent Charlotte Rail Trail contributes to its 96 score in walkability.
The building initially struggled to attract tenants, but Charlotte’s Trinity Partners reported in August that it is now about 70% leased. Next year, Memphis, Tenn.-based First Horizon bank will move into the top three floors, totaling about 88,000 square feet. San Franciscobased Coinbase, the nation’s largest cryptocurrency exchange, plans to hire 130 workers and occupy the 18th and 19th floors.
HONORABLE MENTION - RESTORATION
CAROLINA THEATER
CHARLOTTE
Developer: Foundation For The Carolinas (Charlotte)
Contractor: Cleveland Construction (Mentor, Ohio)
Architect: DLR Group (Omaha, Nebraska)
Cost: $90 million
Size: 36,000 square feet
The Carolina Theatre, a historic 1927 landmark in Uptown Charlotte, underwent a comprehensive renovation before reopening in March after 47 years of dormancy. After purchasing the abandoned theatre for $1 in 2013, the Foundation For The Carolinas led the restoration to revitalize the theater and add a 6,700-square-foot lobby. The project integrates the venue’s original Spanish Revival architecture with modern amenities including 10 laser projectors.
The 906-seat theater was built during the heyday of silent films, and a young Elvis Presley performed there in 1956. It had been vacant since 1978 and suffered damage from a fire. The Charlotte Symphony Orchestra performed to herald the return of a venue for concerts, plays, films, speakers and weddings.
A five-story addition, complete with a lobby, concessions and a Novum point-supported glass facade, are some of the improvements at the theater. Still, DLR Group focused on recreating original murals and ceilings, ensuring the venue’s historic charm from the 1920s.
Carolina Theatre anchors the Belk Place civic campus, a city hub for civic engagement and community gathering. Local, state and federal agencies contributed about $19 million in public funding for the project, while the Belk family and other private donors put up the balance.
Horseshoe at HUB RTP is a mixed-use project that blends office, retail, restaurants and recreational space in a curated downtown for the Research Triangle Park. Developed jointly by White Point Partners and the Research Triangle Foundation of North Carolina, Horseshoe broke ground in October 2022 and opened last year.
Developers describe Horseshoe as the center of the larger $1.5 billion Hub RTP 100-acre district, which is expected to include 1 million square feet of office and lab space, 1,200 residential units, 50,000 square feet of retail space and 250 hotel rooms.
Horseshoe consists of two, one-story pavilions featuring 13,000-square feet of restaurant and retail space, flanking a five-story office-over-retail mid-rise tower. The three buildings form a “U” shape around a central outdoor courtyard and the surrounding 16 acres of green space connect to an existing 20-plus-mile trail system. Office space takes up about 121,900 square feet. Some early tenants include software firm Genesys, Cheeni Indian Cuisine, Drift Coffee Shop & Kitchen and Prime STQ steakhouse.
The Research Triangle Foundation, formed in 1959 to oversee RTP, changed its bylaws to allow housing and retail. A 315,000-square-foot, precast parking deck has more than 1,000 parking spaces. White Point Partners also developed Charlotte’s Optimist Hall adaptive-reuse project.
BUDDING ECONOMY
How North Carolina got legal-ish weed without legalizing it
By Shannon Cuthrell
If you’ve driven down Interstate 40 or 85 lately, you’ve likely seen the billboards shouting “THCA Flower” in thick font, the “Delta-8” decals at gas-station pumps, the growing number of neon vape shop storefronts. Walk inside and the look more resembles a wellness boutique than a head shop: soft lighting, ample browsing space, knowledgeable staff, sharp fragrances, QR codes linking to lab tests and jars full of petalless green buds.
These retailers have spread rapidly across North Carolina, often skirting the thinnest of legal lines. Their shelves are stocked with pre-rolls, vapes, gummies and other consumables that look, smell and smoke like marijuana, but exist inside a federal loophole. In 2018, Congress legalized hemp in the Farm Bill, provided it contained no more than 0.3% of the psychoactive component, delta-9 THC. Although this opened the door for farmers to cultivate a new crop for the cannabidiol (CBD) market, lawmakers didn’t account for some basic chemistry: CBD-rich hemp plants also carry THCA, a nonintoxicating precursor that converts to THC when heated. (THC stands for tetrahydrocannabinol.)
That oversight birthed a much bigger business than CBD oils and lotions, as farmers realized some simple growing hacks could deliver the same high as dispensary cannabis. As a second quirk, the law measures THC by percentage, not total dose, meaning some edibles technically comply while packing far more milligrams than tightly regulated markets allow.
Other states rushed to patch the loophole with potency caps, packaging rules by blocking sales to folks younger than 21. North Carolina did nothing, and attempts at reform have stalled in the General Assembly. Without ever legalizing marijuana, the state has drifted into one of the South’s most permissive cannabis economies.
"It's just an easy business climate to work in," says Tripp Liles, sales training director at Cornelius-based retail chain Apotheca, which started in 2019 with a few Charlotte-area locations and has grown to 50-plus stores and 350 employees, mostly in North Carolina. It also has Georgia, Tennessee and South Carolina stores.
That footprint is concentrated in Apotheca's backyard for a reason, he says. "In some states, we find ourselves in this weird area where local laws may say one thing but federal laws say another, and that just creates confusion. But in North Carolina, we can easily follow federal guidelines. It's been businessfriendly to us."
Apotheca reports three-year revenue growth of 324%, landing on the Inc. 5000 list for the past two years. Liles witnessed the boom first hand while managing two busy stores, watching a steady procession of eight to 12 customers an hour from 8 a.m. to 10 p.m. They weren't the classic stoner classic caricature, but rather adults 35 and older looking to feel good without hangovers, and retirees chasing sleep and pain relief.
"We have two types of customers: those doing it to feel good or feel better," he says. "People are pushing back against anxiety and sleep medications that have been widely prescribed, and cannabis offers them a more natural, healthy alternative."
Pre-rolls/Smokables: $5-$15 per roll, often sold in packs
NC brand: Asheville Dispensary: Indica 1/2g THCA Pre Roll Shorties Tin (Kiwi) - $27 (pack of 5)
Flower and beverages
North Carolina's post-Farm Bill economy is diverse in models and locales. Chains such as Franny’s Farmacy, founded in 2012 at a family farm in Leicester in Buncombe County, are scaling up through franchising. In the Triangle, Delta 9 Analytical and Avazyme have carved a niche as testing labs for hemp products.
Wilson County-based hemp smokeables brand Maverick Lifestyle has ambitions to go public, with an IPO on file but not yet priced. Roxboro-based Open Book Extracts has raised more than $11 million in capital, including investments from British American Tobacco's venture capital arm and Canadian cannabis firm Organigram.
The U.S. Department of Agriculture, which oversees hemp cultivation licensing, counts more than 600 hemp-growing licensees statewide. That includes many smaller growers. Pure Earth Hemp, owned by a married couple in the Triad-area town of King, sells premium indoor-grown THCA flower online. Sales rose 40% in the past year.
"I’ve seen demand grow as more people learn that highquality hemp flower can be just as effective as dispensary products," says co-owner Kylie Reiter. The THCA flower is $85 an ounce."My eight-pack of 3.5-gram jars (about a tenth of an ounce) is our bestseller. It gives people a chance to sample multiple strains, and they love that variety."
Of course, there’s no easy road to riches. Charlotte-based cbdMD is an early CBD brand founded in 2015. It poured millions into clinical and safety studies and rode the first CBD wave before the market shifted to newer Farm Bill-compliant cannabinoids offering a classic "high," like Delta-8 and Delta-10.
cbdMD's revenue peaked at $44.5 million in 2021, then slid to $19.5 million in its most recent fiscal year. Unlike competitors, cbdMD stuck to the less-risky CBD and compliant Delta-9. "We face competition from newer compounds like Delta-10, hexahydrocannabinol and kratom, many of which we view as riskier and less proven," CEO Ronan Kennedy says. "We see this as an opportunity to differentiate ourselves as the safe, science-driven brand consumers and retailers can count on."
cbdMD is now pivoting to THC beverages, with its Oasis label sold through traditional beer-style distribution networks. Oasis is sold in seven states as of August, including in North Carolina through Total Wine. "By more big box traditional brick and mortar retailers entering the market in a responsible way, like Total Wine — a customer — it will ultimately benefit customer awareness and growth," Kennedy says.
The company reported net losses totaling more than $125 million between 2021-23, but cut the deficit to $7.7 million in fiscal 2024 and $1.3 million in the first three quarters this year. Kennedy says Oasis is already contributing incremental growth, and is helping offset declining direct-to-consumer sales.
Nash County's Asterra Labs has found success in contract manufacturing for other companies. Owned by Raleigh investment firm RISE Companies and totaling 17 employees, Asterra gets about 60% of revenues from making gummies, pre-rolls, and other products for outside brands at a 10,000-square-foot facility. It also maintains an in-house Southern Ease line, with about 38 different products.
Sales through September have exceeded the total for 2024, says Asterra President John Bell, who was the N.C. House majority leader from 2017-24 and now chairs the key Rules Committee. He’s faced criticism for bottling up reform bills in the Rules Committee because of his industry ties. He denies any conflict of interest and cites a double standard given several other legislators hold jobs in industries they regulate.
"Even before I became president of Asterra Labs, I was advocating for basic regulations like age restrictions, packaging and testing requirements, and manufacturing standards. That’s the baseline of any successful industry," Bell says. He has invited law enforcement to walk the manufacturing facility, read lab test results, and see how the company packages and tests products.
"I'm here in Nashville, in a Tier One county [referring to the state's highest economic distress ranking] and I'd love nothing more than to double our size and hire more people, because we pay well for the area and have very little turnover. But if the General Assembly passes a law that destroys the industry or makes it illegal, we'll have to close our doors."
▲ cbdMD CEO Ronan Kennedy
▲ Asterra Labs President John Bell
Asterra Labs
Green Products, Gray Market
Looking at the plethora of billboards and retail shops, it’s hard to imagine the legal fragility of North Carolina’s hemp industry. On a hot day in July 2024, law enforcement flooded the storefront of The REC Dispensary in Statesville. Owner Christine Tobias remembers the shock of that day, as officers boxed up products she says were meticulously tested and labeled. Six other local smoke shops were also raided.
“We had built The REC Dispensary on transparency, compliance and professionalism, so to have our business disrupted without warning was devastating," Tobias says. "Even before the raid, we carried only lab-tested, compliant products and followed state and federal guidelines to the letter. Where the system failed us is outdated laws, enforced unevenly, which creates an environment where even the most careful operators can be treated like bad actors. That sends a chilling message to small business owners who are working hard to do things right."
The raid didn’t kill The REC. Sales tanked initially, but after local news coverage noted no charges had been filed, regular customers returned and demand grew. "To lawmakers who claim these products pose a public safety risk, we’d say safety comes from sensible regulation, education and transparency, not raids," Tobias says.
"By offering clean, tested, and clearly labeled products, businesses like ours help protect the public. As business owners, we want the same: a safe marketplace for adults who choose or are advised to use these products."
Many shops have voluntarily adopted guardrails, such as carding at the door and obtaining third-party certificates of analysis proving they meet the federal 0.3% limit. But, police don't have to consider those certificates in establishing probable cause. Even the smell or sight of cannabis alone can justify a search warrant, and certificates have limited practical weight because state testing facilities override them if products are seized.
“THCA isn’t intoxicating until heated. Law enforcement labs use gas chromatography, which heats the sample and literally creates the molecule they're testing for. They’ll take legal hemp and convert it into illegal marijuana in the test, then press charges," says Asheville attorney Rod Kight, who has advised hundreds of hemp and cannabinoid businesses. "It’s a novel legal issue we’re seeing across the country, including North Carolina."
Gov. Josh Stein has called the hemp market “the Wild West” and in June created a 24-member Advisory Council on Cannabis to deliver policy recommendations in 2026.
Membership spans prosecutors and sheriffs, legislators, including Bell, N.C. Senator Bill Rabon, a Brunswick County Republican, N.C. Rep. Zack Hawkins, a Durham Democrat, along with healthcare professionals, highway safety and law enforcement representatives, and hemp producers and sellers.
Also included are the Eastern Band of Cherokee Indians, which voted to allow recreational marijuana sales in its sovereign-nation boundaries and launched a retail store, Great Smoky Cannabis Co. In September, Cherokee officials said they’ve engaged more than 400,000 customers and sold nearly 2 million individual products.
The council's role centers on youth access, unverified products, and a public-safety enforcement apparatus with no clear statewide standards. N.C. Poison Control logged more than 1,000 cannabis-related calls in 2024, double that of 2020. In recent years, the rate of emergency department visits for intoxicating cannabis ingestion surged more than 600% statewide among youth ages 17 and under, with even higher growth among older teens.
Most visits are coded as psychiatric and gastrointestinal issues. Some chronic cannabis users develop cannabinoid hyperemesis syndrome, a condition marked by intense stomach pain and uncontrollable vommiting. The pain can be so servere that patients scream while vomiting.
For Mooresville-based convenience store chain Home Run Markets, the ongoing uncertainty isn't worth the headache. "We don't sell a lot of it," owner David Alexander says. "There’s no age limit, no dosage limits, and we don't know what's in it, so we just don't feel comfortable."
Systems used to help regulate beer and cigarette sales, like ID scans and mystery shoppers testing store cashiers, would translate for hemp-derived THC products, he says. "It truly is the Wild West. It's time to do something."
Beer and wine stores may be less cautious, with some of the 23 members of the NC Beer & Wine Wholesalers Association now distributing hemp-derived THC beverages.
"North Carolina [has] an amazing opportunity, especially for intoxicating hemp products, to establish a regulatory framework that restricts underage sales, sets reasonable limits on potency, provides a tax structure that can adequately fund law enforcement and regulators, and protects consumers and the public through common sense trade practice restrictions," says Kris Gardner, the group’s executive director. "I think it will be a bit easier to consider guidelines with respect to intoxicating hemp products. Marijuana products, on the other hand, present an entirely different set of challenges that will require much more thoughtful consideration and deliberation."
Lee VanTine II cofounded the Hookah Hookup in 2010, then rebranded as Apotheca in 2019. Sales at its 52 stores have earned Inc. 5000 recognition for the past two years.
What Could the State Skim?
For now, the existential question for businesses in the alleged "Wild West" is, how long will the loophole last?
"It’s hard to plan for the future when you don’t know if the product you legally grow and sell today might be restricted or banned tomorrow," says Pure Earth’s Reiter. "[Uncertainty] creates a lot of stress for small farms and businesses trying to stay compliant while still making a living."
One path could mirror Tennessee’s clampdown on high-potency hemp, including THCA, which some view as a worst-case scenario. "If it’s made illegal, I’m out plain and simple," Reiter says. "I don’t have a backup plan that replaces this. I’m not interested in pivoting to CBD or non-psychoactive products just to hang on. That’s not what I’m passionate about, and it’s not what my customers are coming for."
Reducing potency or total THC levels to the point where the flower no longer gives the desired effects would also slam the industry. "You can’t sell watered-down weed and expect people to stay loyal,” she says.” My customers are using THCA for real relief, anxiety, chronic pain, focus, sleep, stress. If the flower no longer helps, they’ll move on."
For THCA consumers, the most reliable alternative may be street weed. “If THCA disappears, they’ll either go back to unregulated sources or be left without access to something that genuinely helps them. That’s not a step forward."
A more lucrative path: regulate and tax with potency caps, childresistant packaging, track-and-trace, and age verification enforced by the same compliance systems used for beer and cigarettes. North Carolina already has the sixth-highest beer taxes in the nation at 62 cents per gallon, per Tax Foundation rankings, plus statecontrolled liquor sales and a cigarette tax of 45 cents a pack.
If hemp THC products were slotted into a similar structure, hundreds of millions of dollars could be on the table. An analysis in 2023 for House Bill 563 found that imposing a 10.5% excise tax on hemp-derived consumables could net $116 million in revenue through 2029.
A middle route, House Bill 328 introduced this year, sketches licensing, testing and labeling standards, and license fees of $25,000 for manufacturers, $5,000 for distributors, and $500 per retail site. A legislative fiscal note suggests more than 23,000 potential retailers, including gas stations, smoke shops, grocery stores, or pharmacies, could be swept into such a system.
If North Carolina ever flips the switch on marijuana legalization, the upside could be enormous. Daily or neardaily use has surged in the last decade, surpassing daily alcohol consumption in 2022, with roughly 80% of users saying they consume for non-medical reasons. Virginia’s fiscal staff modeled $154 million to $308 million in five years once a mature market is in place, while Maryland netted $1.1 billion in fiscal 2024, its first year of legal cannabis sales.
North Carolina’s population is larger than either, and the illicit market here is already measured in the billions.
The proposed N.C. Compassionate Care Act, which stalled in the legislature, would have created a tightly controlled, self-funded medical program generating $44 million in annual revenue by 2028. That included a 10% fee on monthly gross revenues, plus patient and caregiver card fees. State models expected 47,000 patients in the first year, climbing to 154,000 by year three.
Kight sees the policy question through both legal and personal lenses. About a decade ago, during chemotherapy, he tried cannabis for nausea. “The relief was so immediate and remarkable that I thought, ‘Wow, I need to change my career!’” he says.
Today, he advocates for a consumer-safety framework that won't wipe out compliant small businesses. The industry, Kight says, already supports three pillars: keep products away from minors, impose basic manufacturing and testing standards and require consistent labeling so adults know what they’re consuming. “That’s the ideal situation,” he says, and it’s one the responsible players would welcome. ■
APOWERING UP
Data centers are mushrooming, boosting economic prospects while raising concern over N.C. energy policies.
By Mike MacMillan
mazon, Apple, Google, OpenAI affiliate Stargate. Everybody is building a data center these days. Data center construction represents one of the largest building projects in world history.
It is certainly one of the most expensive. “Total investment in upcoming and under construction data centers has soared to around $750 billion,” estimates Alex Wang, an analyst at Nashville, Tennessee-based investment firm Alliance Bernstein. That seems understated, with Stargate alone committed to spending $500 billion for AI-related data center projects over the next four years.
In North Carolina, Amazon says it will spend $10 billion for data centers in Richmond County as part of a broader $100 billion plan over 15 years. Apple is planning a $175 million investment at its data center in Maiden in Catawba County. Major projects are underway or being considered in several other NC cities.
As a result, Duke Energy projects energy demand in North Carolina will grow eight times faster over the next 15 years than in the previous 15. Artificial intelligence requires computing that demands massive energy inputs.
Data center investment is having a measurable impact on the country’s overall economic growth. Information processing
investment contributed more than half of the 1.2% growth in U.S. GDP during the first half of 2025, according to The Wall Street Journal. UBS, an investment bank, forecasts that companies will spend $375 billion on AI infrastructure in 2025 and another $500 billion next year.
It’s a big number, and North Carolina is hoping to get its fair share, or maybe a little bit more. The state ranks ninth nationally in the number of data centers, with 91. Virginia leads with more than 600, followed by Texas (379) and California (318).
In terms of megawatts of electricity consumed by data centers, Texas leads the way with about 8,000 MW, followed by Virginia with 7,000, according to CarbonCredits.com, which tracks carbon usage. In North Carolina, the comparable figure is around 770 megawatts, reports the Baxtel research group. In 2023, data centers consumed 4% of U.S. electricity generation, and that may double by 2030, according to the Electric Power Research Institute.
Data centers are also getting bigger, with many defined as “hyperscale,” a term that IBM characterizes as a physical site large enough for at least 5,000 servers and possibly miles of connection equipment. These centers can “easily encompass millions of square feet of space,” IBM says.
The next Loudon County
In the old days, pioneers followed rivers and streams to open up new territory, and cities were founded along their banks. More recently, railroads and the interstate highway system have helped drive site selection for corporations and distribution centers. Now, for data centers, it’s power availability.
In discussing how to assess a potential data center site, site selection expert Ben Rojahn says he looks for high-voltage transmission lines first, followed by fiber capacity and “some reasonable access to water and sewer.” He’s a vice president for data center solutions with the CBRE real estate firm in Charlotte.
Loudon County, Virginia, which is directly west of Washington, D.C., has perhaps the world’s greatest concentration of data centers. Statewide, they consumed a whopping 23.6% of the Dominion State’s electricity in 2023, according to the Electric Power Research Institute. For North Carolina, the comparable number was 1.9%.
Partly as a result, data center development is on the move.
“The whole I-85 corridor is seeing a lot of activity from data center developers and users,” says CBRE’s Rojahn, moving down from Virginia and, to a lesser extent, up from Atlanta.
North Carolina appears well positioned to capture some of that growth. The state is poised to meet demands for larger power loads over the next four or five years, Rojahn says, making it competitive with other states. It has regions served by high-voltage lines built originally for furniture and textile companies and other manufacturers that can be put to work bringing power to data centers. While those lines may serve smaller markets rather than large metros, that is not an issue with some AI and cloud applications where latency — the time it takes data to move from
where it’s sourced to the destination – is less of a concern.
With billions of dollars at stake, states are competing aggressively to be the next Loudon County. Incentives often include a combination of sales and use tax exemptions, property tax abatements, investment tax credits, and regulatory relief like relaxed zoning requirements. Favorable power rates are also sometimes involved.
“Our job is to work with local leaders and economic development officials to help power their economy in a manner that matches their local vision for the community,” says Danielle Buckins, Duke Energy’s director of North Carolina development.
The benefits are clear, the costs perhaps less so. Consider the potential impact on Richmond County, where median income was $46,600 in 2023, compared with about $69,000 statewide. The county’s value of assessed property stands at $4.4 billion, which is less than Amazon’s proposed long-term investment. As many as 1,500 construction workers are expected to participate over the next five years.
Amazon has promised to create 500 permanent jobs, but hasn’t estimated the expected average salaries. The county offered a 20-year incentive package of cash grants equal to 50% of the annual property tax and 65% of the annual personal property tax for each of the 20 buildings that are proposed for the project. The package is contingent on $1 billion of investments and 50 jobs by the end of 2030.
“Five hundred jobs is huge for Richmond County,” says Martie Butler, a county economic developer. “A lot of years of planning went into developing our infrastructure (to attract a company like Amazon),” including support for Duke Energy’s generating facility near Hamlet, she says. “It will enhance our tax base significantly, and it won’t be a heavy lift for our community.”
SITES OF SOME LARGE N.C. DATA CENTERS
A fool’s race?
In site selection, “The gating issues are ones that drive material cost impact — the availability of power, the availability of fiber,” says Jim Grice, a partner in Dallas at the Akerman law firm and a specialist in data centers and digital infrastructure. “Beyond that, one of the other big inputs to costs is taxes. The data center asset class operates with a very high percent of assets that are personal property. Servers have a refresh cycle. They last three to five years. As a result, your tax framework will have a big impact on site selection.”
Not everyone thinks these incentives are a good idea. North Carolina’s lack of transparency around data center incentives suggests that the state is “hiding costs and exaggerating benefits,” thereby putting the state’s budget at risk, according to a September op-ed in the News & Observer of Raleigh penned by Goodjobsfirst executive director Greg LeRoy and Brian Balfour of the Locke Foundation. Both nonprofits oppose corporate subsidies.
“It’s a fool’s race to the bottom,” LeRoy says in an interview. “This is not a struggling industry. These are enormously profitable and valuable companies doing something that makes a ton of profit for them.”
The companies would build these data centers with or without tax subsidies and abatements, he says. Citing the loss of tax revenues and the potential strain on local infrastructure like schools and roads, “I think North Carolina would win by losing data centers.”
Some residents of potential sites for data centers share that view. Opposition to projects has blocked projects in various N.C. locations, including some economically struggling ones. In September, Tarboro voted to reject a proposal to build a $6.4 billion data center project in Edgecombe County, citing concerns over its impact on water, sewer, and quality of life issues. The county’s 6.1% unemployment rate in September was the state’s highest.
Akerman’s Grice offers a more positive view of the impact of giant server farms. “You have substantial upgrades (to infrastructure) that wouldn’t be done except for the data center.
Typically, [the data centers] pay a higher than regional average salary. The investment is so material they’re not going to walk away overnight. They’ll stimulate the local economy. They don’t have smokestacks. They don’t have as much impact as a new manufacturing facility would. They tend to have a clustering effect — other companies show up.”
The data center industry contends there is a significant multiplier effect of as much as $7 of economic activity for every dollar invested. Good, bad, or indifferent, the tax incentive ship seems to have sailed among political and economic development leaders. As Rojahn puts it, “Tax incentives are a prerequisite for states to be competitive.”
Critics note other issues, most prominently the lack of significant long-term employment opportunities at data centers once they’re up and running, and the potential impact on ratepayers from all this demand for electricity.
“Hyperscale data centers actually don’t employ many staff — typically in the 50 to 150 range,” says Synergy Research Group’s Dinsdale. “For reasons of efficiency, security and cost, there is a lot of software and automation, rather than staff. The big employee numbers are in the construction phase, when there might easily be a thousand workers or many more.”
As for consumers, they are starting to notice the impact of all this construction on their electric bills. A recent study from Carnegie-Mellon and NC State universities reported that “data center and cryptocurrency mining growth through 2030 could increase average U.S. electricity costs by 8%” though the impact will vary by region and the sources of power generation. A Bloomberg analysis in September found that “electricity now costs as much as 267% more for a single month than it did five years ago in areas located near significant data center activity.”
One thing for sure is it will increase demand. Duke has more than 100 prospective customer projects of all types in the Carolinas with a base demand of 50 megawatts or greater. Historically, Duke says, 10 megawatts was considered a large load.
An associate facilities manager in Google's Lenoir data center, burns some wire in a fabrication area.
Dot-com reprise?
In tech land, any trend that persists over a multiyear period is almost inevitably deemed a “bubble.” AI and data centers are now entering that territory, prompting comparisons with the dot-com bubble in 1999-2001 that ended with the NASDAQ index crashing nearly 80% from its peak. Key differences are that the Internet was early in its adoption curve 25 years ago, while today’s AI data centers are being financed by massive companies such as Amazon, Apple, Google and Meta. There may be an excess of capital going into the sector, but the businesses are real.
Of course, AI could change everything and still leave behind hundreds of billions of dollars in stranded capital, which occurred during the early Internet era. San Jose, California-based Cisco Systems is a leading networking equipment operator, and operates a large site in Durham. It had the stock market’s largest valuation in March 2000, briefly topping $80 per share. It lost more than 80% of its value by late 2002. Twenty-three years later, it has rebounded to the $70 range.
Many following the tech industry remain resolutely bullish.
“I don’t sense that we’re going to see a slowdown in the immediate future,” says Akerman’s Grice. “You have cloud [computing] growing at 18% compounded annually, and AI cloud is projected to grow at 36%.”
The next big step in AI is expected to be “inference,” which refers to how technology is deployed once the robotic models have been completely trained.
“There are always going to be examples of data center developers getting it wrong in terms of scale, timing, demand or logistics, but the overriding picture is one of there not being enough data center capacity,” says Dinsdale from Synergy Research.
In August, Open AI CEO Sam Altman told a group of reporters, “When bubbles happen, s mart people get overexcited about a kernel of truth. Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.”
Venture capitalists put $192.7 billion into AI startups this year through late September, according to data provider Pitchbook. That was more than half of total VC investment during the period. Meanwhile, research from the real estate firm JLL found that the data center vacancy rate stood at a low 2.3% in North America.
In his Pulitzer Prize-winning book, Guns, Germs, and Steel author Jared Diamond describes how geography and environment shaped early civilization. If the hype is to be believed, artificial intelligence will soon supplant those forces in defining the future. That intelligence doesn’t exist in the physical world, but rather within a virtual geography of servers and fiber optic cables.
While AI may be agnostic as to location, it is matters very much to states, towns, and counties looking for a lifeline in a postindustrial world. Like Richmond County. ■
BILLIONS AT STAKE
Data center expansions are popping up statewide. Here’s a list of the more publicized projects. The projects that aren’t progressing have each sparked lots of opposition from local residents.
GO – Apex – Natelli Investment is proposing a 190-acre campus for a data center. The Town Council is mulling the site, which is near the Shearon Harris nuclear plant in Wake County.
GO – Charlotte - Austin, Texas-based Digital Realty Trust plans a 3 million-square-foot data center plant in west Charlotte. The real estate investment trust paid $160 million for a 155-acre site.
GO – Charlotte - PowerHouse Data Centers, owned by McLean, Virginia-based American Real Estate Partners, is constructing a four-building project near University City Boulevard. It bought the site for $45.5 million last year.
NO GO - Conover – In April, Microsoft said it is delaying plans for a $1 billion data center in Catawba County announced in early 2024. The project’s future is unclear.
G0 – Hamlet - Amazon plans a $10 billion data center campus on 80 acres in Richmond County. Initial plans call for 20 buildings when completed.
NO GO – Matthews - In October, real estate developers Crosland Southeast and Crow Holdings withdrew plans for a data center that was expected to employ 150 to 500 people.
NO GO - Mooresville - Denver-based investment firm Tract withdrew plans in August for a 400-acre site it says would have involved as much as $30 billion of investment.
GO – Statesville – City Council in September approved a rezoning request that favors Dallasbased Compass Data Centers’ plan for a fivebuilding data center on about 350 acres.
NO GO - Tarboro - The Town Council in September rejected Rocky Mount-based Energy Storage Solutions’ proposed $6.4 billion data center project. The company says it will press ahead with the project.
DOUGH RAISING
Investors globally are raining unprecedented money on Charlotte’s big private-equity firms.
By David Mildenberg
Charlotte’s role in the world of private equity has mushroomed this year, with four groups raising a combined $7.3 billion, with plans to acquire stakes in dozens of middle-market businesses over the next decade.
Very few other U.S. cities outside of New York can make a similar claim, reflecting the Queen City’s emergence as a global financial power, says Kevin McCarthy, who’s been part of the scene since joining First Union Bank in the 1990s. He later headed Wachovia Securities’ Middle-Market Capital Group, then co-founded the Kian Capital PE firm in 2013. It raised $400 million two years ago.
While the Georgia capital area has a much larger population, Charlotte has a bigger, more diverse private-equity industry, he notes. That’s in sync with the city’s important role in U.S. banking for decades. The city’s three big PE groups — Ridgemont Equity Partners, Falfurrias Capital Partners and Pamlico Capital are rooted in the history of Bank of America and First Union, which evolved into Wells Fargo.
In 1993, BofA predecessor NationsBank started a private-equity operation, initially led by Chet Walker. It was later called Banc of America Capital Investors, which invested more than $3 billion in about 140 companies over the next 15 years.
A similar story occurred at First Union, where a privateequity unit formed in 1988 and was renamed Wachovia Capital Partners after the two N.C. banks merged in 2001. By 2010, it was managing $2 billion on behalf of its limited partners.
The 2007-09 financial crisis prompted reforms that limited how much capital banks could invest in PE firms. Incoming Bank of America CEO Brian Moynihan started winding down the private-equity business as he streamlined what was then the largest U.S. bank.
In 2010, Bank of America spun off its private equity arm with existing partners Walker Poole, Trey Sheridan and the late Travis Hain taking control of the new Ridgemont Equity Partners. Its first fundraising was a $735 million fund in 2013 that included investors such as the State of Wisconsin Investment Board. Noticeably absent was BofA, which was still shaky financially and reducing risk.
A similar switch occurred after Wells Fargo took over Wachovia in 2008. About a year later, partners including Scott Perper, Watts Hamrick and Eric Eubank II formed Pamlico Capital, with backing from investors including AlpInvest, HarbourVest and Lexington Partners.
Ridgemont Equity Partners
ALL-WEATHER INVESTING
Fast forward to this past March, when Pamlico raised $1.75 billion for its sixth fund. That same month, Charlotte’s Falfurrias Capital Partners signed up $1.35 billion. It was founded in 2006 by former top BofA executives Hugh McColl Jr. and Marc Oken, along with Ed McMahan Jr., the son of a Charlotte business leader and veteran state lawmaker.
Ridgemont’s payroll has increased to 70, up from 15 upon the split from BofA in 2010. Falfurrias has 55 employees, while Pamlico has about 45 and Carousel about 20.
Ridgemont’s success reflects an excellent investment record, including a previous $2.3 billion fund that closed in 2022, a cohesive partnership team and a consistent emphasis on industry sectors that thrive through economic cycles, says Jack Purcell, who is co-managing partner with John Shimp.
Falfurrias has enjoyed enormous success, including high-profile sales of Bojangles in 2011 and earlier this year, Sauer Brands, which owns Duke’s Mayo. Its investment committee chair is former BofA exec Chet Walker, while former bank CFO Joe Price is a partner.
Other significant PE groups in North Carolina include:
Carousel Capital, which Erskine Bowles and Nelson Schwab founded in 1996. Charles Grigg and Jason Schmidley now lead the Charlotte firm, which raised $700 million in 2020.
Summit Park, formed in Charlotte by Bob Calton and Jim Johnson in 2006. It focuses on the lower middle market and has completed 50-plus investments totaling more than $2.1 billion in combined enterprise value. It raised $245 million in 2018.
Plexus Capital, which was started in 2005 in Raleigh and Charlotte by former Centura Bank executives including Bob Anders and Michael Painter. It has focused on structured capital, raising about $3 billion in debt instruments to help partner companies grow. In October, it also raised $345 million for its second private-equity fund as a natural complement to its larger debt-oriented funds, says partner Alex Bean.
Those capital infusions were eclipsed by Ridgemont’s fifth fund in September, which attracted an N.C. record $3.9 billion, officials say. The firm now manages more than $11 billion with current stakes in 27 companies that employ a combined 30,000 employees.
Purcell’s career track reflects that consistency. He grew up in a suburban Philadelphia town, Phoenixville, then came to Davidson College to play baseball. He had no local ties. Upon graduation, Chet Walker hired him at BofA , and he’s stuck ever since.
“We view Charlotte as a huge competitive advantage,” he says. “The culture of the firm is very different from a lot of our competitors in the middle market.” The city’s welcoming nature and dynamic growth has proven appealing for recruiting associates, while leaders of potential portfolio companies appreciate the firm’s steady approach, he adds.
Like most peers, Ridgemont doesn’t disclose the returns of its funds. But PE groups can’t raise billions of dollars unless investors are happy. The latest money came from about 100 investor groups, double the number in the 2022 fund, Purcell says. Previous investors each wanted to invest again.
What changed is that a chunk of the money came from outside the U.S., including Asia, the Middle East, Western Europe and Australia. That was intentional, Purcell adds, because those investors tend to be growing capital faster than Ridgemont’s core of U.S. insurance companies, endowments and public pension funds.
Purcell also credits Ridgemont’s fundraising success to Laura Fahrney, who heads investor relations. She joined the business in 2013 after working for the Blue Point Capital PE group. “She’s one of the top two or three heads of investor relations of any size fund in the U.S,” he says. She’s also a rare female partner in an industry that in Charlotte remains almost exclusively a white male province in terms of investing professionals.
▲ Jack Purcell Ridgemont Equity
▲ John Shimp Ridgemont Equity
▲ Ed McMahan Falfurrias Capital
▲ Kevin McCarthy Kian Capital
▲ Alex Bean Plexus Capital
CHALLENGING TIMES
Raising $7 billion over the past year is notable given that business valuations are higher, while the uncertain economy is fragile, says Kian’s McCarthy. “You don’t want to pay peak value and then see the economy go the wrong way,” he notes.
Global PE firms closed funds valued at $223 billion during the first half of the year, on track for a 20% decline from a year earlier, according to a report by the EY consulting firm. Valuations and investment returns have declined amid a sluggish economy, it said.
Investors remain confident in middle-market companies that are in demand during good and bad economies, which for Ridgemont means business services, healthcare and industrial companies. Its portfolio includes Charlotte-based Crete United, which has acquired more than 40 commercial HVAC, electrical, plumbing and building automation companies, and Spartanburg, South Carolina-based Agape Care Group, a major operator of hospices.
Definitions of middle market vary, but Ridgemont says it focuses on businesses valued at $100 million to $1 billion, and it will invest as much as $500 million in a business. The deals usually follow at least three years of relationship building, Purcell says.
In contrast, Kian concentrates on companies with $10 million to $150 million in revenue that have previously not taken private equity funding, McCarthy says.
In any case, the industry is a major, sometimes dominant force in many business sectors including car washes, medical practices, restaurants and child care centers. The largest PE groups, including Blackstone, Carlyle Group, KKR and Apollo, manage hundreds of billions of dollars and hold vast economic influence.
That power won’t weaken as long as the funds make more money for their investors than is possible through traditional stock and bond investments. U.S. pension funds had an 11% annualized return through their PE investments between 2000 and 2023, compared with about 6.8% for public stocks, according to a study last year by the New York-based Clifwater investment firm.
There’s also an obvious drive for financial success underlying PE groups that experts consider a factor in the industry’s rise. In short, pro athlete-type compensation is possible in the industry, so it attracts some very driven people.
Partners at top-performing U.S. firms with assets under management of $2 billion to $10 billion typically made about $1.7 million to $2.5 million in base and bonus pay in 2023, according to an annual survey by the Heidrick & Struggles consulting firm. But the real money involves “carry,” or the partner’s share of the profits generated by a fund.
For example, Ridgemont’s challenge is to turn $3.9 billion into much more over the next decade.
He and other PE leaders say massive opportunity exists because so many founder-led businesses need additional funding and expertise to spark new growth. Ridgemont estimates there are 50,000 U.S. companies with revenue from $50 million to $1 billion, with only a fraction owned by private-equity groups.
Increasingly, those companies and investors in PE firms favor groups with expertise in specific sectors, Fahrney says. “The notion of being a generalist is just a no go anymore,” she says. “You need a way to inject resources and talent to help create value. Capital itself is not in short supply.”
BETTER RETURNS
Private equity has plenty of critics, dating back at least to the infamous 1988 buyout of RJR Nabisco by pioneering PE firm Kohlberg Kravis & Roberts, or KKR. The initial PE groups said their work was valuable because too many corporate leaders emphasized asset growth over shareholder returns. Critics contend PE companies too often load up on debt, reduce costs with little concern for workers and show limited long-term vision.
For PE firms in that $2 billion to $10 billion range, the average partner had a “carry” of $21 million to $35 million for their current fund, and $30 million to $39 million for all of their funds, the survey noted. McColl has said his compensation soared after he left his bank CEO perch and launched merger advisory and PE businesses.
Investment success helps explain why about 40 Ridgemont employees put a combined $250 million in the latest fund. Purcell says that is about four or five times more than PE members typically put into funds on a relative basis. He also notes that Ridgemont is more egalitarian than many peers, allowing more participation deeper into the organization.
“We think it leads to better alignment with our investors,” he says. “We all have a significant percentage of our net worth in these funds.”
Still, Ridgemont’s success is more than about financial returns, its leaders insist, citing what they call Charlotte’s distinctive culture. “There’s something about being in the state for over 30 years and having a business model that has largely remained unchanged,” Fahrney says. “It has evolved in a lot of good ways.” ■
▲ Kian Capital has offices in Charlotte and Atlanta.
▲ Carousel Capital opened in 1996, making it one of the state’s oldest PE firms.
NORTH CAROLINA’S EXCEPTIONAL HIGHER EDUCATION INSTITUTIONS
By Alyssa Pressler
It’s no secret that North Carolina boasts a robust and quality higher education system. Across the state, access to community colleges and universities is plentiful, and the training and career preparation are often unmatched.
Whether it is expanding into new technologies and fields, finding ways to provide unparalleled support for students, or building on ideals that have anchored these higher education institutions for over a century, there are countless opportunities in our home state.
SPONSORED SECTION
In this section, we examine three schools in North Carolina and the initiatives they are undertaking to differentiate themselves from others. It was interesting to hear in every interview people say all colleges in North Carolina offer exceptional education. But each does it in a different way to support different types of students. Above all, student success is the goal because it leads to community success. When our educational institutions succeed, so does our state.
Three higher education leaders discuss our changing college landscape.
CHARACTER AND CULTURE AT COLLEGE
Aot has changed in North Carolina over the last 175 years - and quite a bit has changed at Catawba College, too, especially with its current comprehensive campaign underway. But much more has stayed the same on the historic campus.
Most notably is the Catawba ideal: Scholarship with character and culture for service. When you speak with the college’s president, David P. Nelson, he’s quick to point out that the ongoing commitment to this ideal is one of the distinctions that sets Catawba College apart from others.
Catawba College was founded in 1851 after a group of German reformed Christians wanted to start a college of their own. It moved to its current location in Salisbury 100 years ago and since has become an integral part of the wider community.
The ideal, which the college’s leadership, faculty and staff use as their guidepost in all they do, allows them to not only focus on exceptional education, but also each student’s personal and professional formation.
“In a world where students are always asked what they are going to do after graduation and what career they want, we’re busy asking them who they are and how they want to be in the world,” says Nelson. “We all
care about these students making a good living, but more than that we care about them living a good life.”
A good example of Catawba’s embodiment of these ideals is through their three signature centers: The Center for the Environment, The Lilly Center for Vocation and Values and The Center for North Carolina Politics and Public Service. Students are able to interact with all three centers, allowing them to think about their stewardship of their personal lives, their responsibility for the world’s natural resources, and their responsibility to be good citizens.
“The aim of what we do is the wellbeing of people and the common good of all, consistent with the Catawba Ideal, and our signature centers serve our students to that end,” Nelson says.
While this steadfastness in its ideals has allowed the college to grow and succeed over the years, there are plenty of new things happening on campus.
Over a five year period, the college has completed or commenced nearly $150 million in capital improvements, which will include the building of a new residence hall, restoring of two older residence halls, revitalizing a coal smokehouse to be a student experience center and a comprehensive district energy plan which
DAVID P. NELSON Catawba College president
NC • CATAWBA.EDU
relies on geoexchange wells. The college has been able to do all this work while remaining debt free, and growing the endowment to over $650 million dollars, enabling Catawba to substantially increase its aid to students and investment in programs.
Beyond improving the campus, though, the college has also recently launched a brand-awareness campaign that will run for several years, with the goal of getting more prospective students to the college. Nelson says Catawba College will always remain small - it’s part of the charm, after all - but there’s still room for growth.
“There are students who would thrive here and would benefit so much from an education from us, but they don’t yet know about us,” Nelson says. “It’s our responsibility to make Catawba as well known as she deserves to be.” ■
SALISBURY,
GTCC IS LOOKING TO THE FUTURE
Known for its innovation and technology-driven focus, Guilford Technical Community College continues to look ahead— advancing education, strengthening community partnerships, and preparing students for tomorrow’s opportunities.
In October, GTCC broke ground on a $34.6 million aviation training facility on its Cameron Campus, expanding capacity to serve 700 students annually. This is phase one of a two-phase project. As aviation companies continue to grow in the Piedmont Triad, the college is positioning itself to meet the region’s increasing need for highly skilled workers.
“We meet with employers all the time— both new and long-standing partners,” says GTCC President Anthony (Tony) Clarke, Ph.D. “Our commitment is to meet the workforce training needs of our region and prepare students for careers they’re proud of. The aviation expansion is a prime example of how GTCC continues to focus on the future.”
Every day looks different for Clarke, but one of the best parts of his job is being out
in the community—listening, learning, and exploring how GTCC can respond to local needs. By connecting with employers and community partners throughout Guilford County and the region, Clarke helps identify where opportunity is growing and how the college can provide affordable education and hands-on training to match.
“I spend a lot of time meeting with community leaders, business partners, and educators across the region,” says Clarke. “Those conversations are how we stay aligned with workforce needs and ensure GTCC continues to prepare students to make amazing happen.”
One of the college’s newest initiatives is the transition to eight-week course sessions, implemented across most classes beginning in fall 2025. Research shows that shorter sessions lead to higher student perseverance, improved course completion rates, and greater academic success— especially for the 67% of students who attend part time. The eight-week format allows students to focus on fewer courses at a time, which can make it easier to balance classes with careers or family and even help some finish their degrees faster.
GTCC is now the third largest of North Carolina’s 58 community colleges and has grown significantly since the pandemic— enrollment is 6% higher than before, with more than 12,000 degree-seeking students enrolled this fall and more than 31,500 total students served last year.
President Clarke, who has led the college for six years, is proud of how the entire GTCC team has supported students through ongoing changes. “Our faculty and staff are focused on helping students succeed,” Clarke says. “Our new strategic plan, launched in July, strengthens that mission by investing in our people, creating clear pathways for achievement, and building partnerships that drive workforce innovation and community growth.” ■
DR. ANTHONY (TONY) CLARKE GTCC president
GTCC.EDU
EXPERIENCES WITHIN THE COMMUNITY
Pfeiffer University is known for its focus on servant leadership, an aspect that’s been ingrained in the university for the 135 years it’s operated.
A degree program putting this ideal into action daily is the university’s occupational therapy program, a 24-month curriculum which also includes a six-month clinical phase. According to Program Director Crystal Gaddy, experiential learning and servant leadership go hand-in-hand.
“In 80–85% of our courses, students engage in lab experiences within the community,” she says. “This hands-on approach ensures that students not only learn and practice essential skills but also apply them in real-world settings throughout the program—well before they begin formal fieldwork. Our strong ties to local and regional communities are integral to our students’ education and development.”
In addition to the program’s revision of creating innovative online and hybrid
course experiences, the focus on hands-on education and their outstanding academic standards, each cohort includes an average of 30 students, ensuring a close-knit and collaborative learning environment which will serve students beyond their degree.
“Our faculty and students are leading efforts to establish new student-led and honor organizations that foster belonging and inclusion in higher education,” Gaddy says. “I’m especially proud of the program’s growth—not just in numbers, but in the depth and quality of our academic and community engagement.”
The community extends beyond North Carolina for Pfeiffer. Students and faculty are engaging in international partnerships in the United Kingdom as well as strengthening and expanding existing community collaborations. The university is also growing interprofessional collaborations at the Center for Health Sciences in Albemarle and increasing awareness of Pfeiffer’s contributions to health education and rural health.
CRYSTAL GADDY
Pfeiffer University program director
Faculty and students in the occupational therapy program often collaborate on highlevel, evidence-based research projects that address community needs through both quantitative and qualitative methods. These initiatives often lead to educational outreach and direct interventions.
All of this work, both in North Carolina and globally, tie back into the university’s commitment to servant leadership and rural health. Gaddy sees the work they’re doing only continuing to grow and make a difference in the future.
“As program director, I envision even stronger connections between Pfeiffer’s campuses and a continued commitment to excellence in occupational therapy education,” Gaddy says. ■
THREE-WAY STREET
Chatham, Harnett and Lee counties share business ventures, workforce training, utilities and amenities. Their overarching ambition is regional economic development success.
Japan-based drugmaker Kyowa Kirin announced it was spending $200 million to construct its first North American factory early last year. It’s investing that money at Sanford’s Helix Innovation Park at the Brickyard. The company expects to create 102 jobs at the Lee County site. Add N.C. Department of Commerce incentives worth $2 million over 12 years and local incentives approved by Sanford City Council and Lee County Board of Commissioners, and the project is expected to grow the state’s economy by more than $1 billion, according to a news release.
The Kyowa Kirin project represents more than a single economic development win. “It will be a showcase for industry, not just from Lee but from Chatham and Harnett counties as well,” says Sanford Area Growth Alliance CEO Jimmy Randolph. “You’ll be able to see the manufacturing that’s happening
here. It’s going to be a cornerstone of our workforce in North Carolina.”
Nestled together in North Carolina’s center, Chatham, Harnett and Lee counties have more than boundaries in common. Residents cross those lines regularly for work and play. They share utilities, including electricity and water. And their future, economic and otherwise, will be determined by their efforts, whether they’re done individually or collectively.
Drugmaker Kyowa Kirin selected Helix Innovation Park at The Brickyard in Sanford for its first North American factory. The 75-acre site includes room for expansion.
HARNETT COUNTY
CHATHAM COUNTY
LEE COUNTY
Harnett County is grateful to be part of a strong region. Leveraging regional strengths and resources furthers our ability to compete for new and expanding companies, bringing higher-wage jobs.
Harnett County is actively investing in industrial, professional, and business services growth. In collaboration with economic development allies, Harnett County currently promotes market-ready sites ranging from 19 to 95 acres, with another 1,500 acres in early identification. Private developers are planning more than 2.1 million square feet of speculative industrial space, led by Harnett 95, a 175,500 square-foot, subdividable building scheduled for completion in Summer 2026.
Harnett County, home to more than 147,000 residents, is North Carolina’s 23rd largest county. Partnering with Retail Strategies, Harnett County is proactively recruiting retail, restaurant, and hospitality companies that complement residential growth.
With strong roots and exciting new growth, Harnett County is open for business – the ideal location for companies ready to grow and thrive.
Stephen Barrington Harnett County Government Economic Development Director
Welcome to Chatham County, a community rooted in tradition and driven by possibility. As the geographic center of North Carolina,Chatham connects the state’s most dynamic regions while maintaining its own distinctive identity and sense of place.
Our county is home to two certified megasites—one in Siler City and another in Moncure—as well as Chatham Park, one of the most significant mixed-use developments on the East Coast. These sites, along with our growing small business community, position Chatham as one of the most promising locations for investment and innovation.
Chatham is experiencing remarkable growth, powered by strategic investment, innovative employers, and a collaborative spirit that defines our approach to progress. The county’s balance of opportunity and quality of life continues to attract residents, entrepreneurs,and industries eager to grow in a community that values both success and connection.
Chatham Economic Development Center
We’re delighted to welcome you to Sanford and Lee County—a vibrant, well-centered community where opportunity meets innovation, and residents enjoy the perfect blend of small-town charm and big-city access. Located at the crossroads of the world-renowned Research Triangle Region and the Carolina Core, Sanford has a diverse and thriving industrial base, home to global leaders like Pfizer, Caterpillar, and Bharat Forge, as well as a growing network of small businesses and entrepreneurs.
Our commitment to economic development, workforce readiness, and quality of life makes Sanford a perfect destination for investment, growth, and community. Whether you’re exploring our historic downtown, engaging with our dynamic business community, or discovering our myriad cultural and recreational assets, we invite you to experience the energy and promise of Sanford and Lee County.
Welcome to a place where business and community grow together.
Jimmy Randolph CEO, Sanford Area Growth Alliance
Central Carolina Community College shares strong ties with local businesses. They direct training, ensuring workers have the proper skills, says the college’s Vice President of Workforce Development and Chief of Staff Margaret Roberton.
BUILDING A WORKFORCE
Central Carolina Community College has three campuses. Their reach is extended with instructional locations — seven in Lee, four in Chatham and nine in Harnett. “[It’s] more than an educational institution,” says Margaret Roberton, CCCC vice president of workforce development and chief of staff. “It is a vital component of economic development in the region and a trusted partner for businesses across Chatham, Harnett and Lee counties. CCCC’s deep connections to local industry make it a critical force in building a skilled workforce, supporting business retention and driving regional prosperity. The college’s impact extends beyond the classroom. CCCC collaborates closely with regional and local economic development organizations Carolina Core, RTRP, SAGA, Chatham EDC and Harnett EDC — chambers of commerce, workforce boards and local governments to attract new industry and strengthen existing businesses.”
Harnett County Economic Development Director Stephen Barrington says CCCC may be the three-county region’s greatest asset. The best one specifically for industry may be the college’s 22-acre E. Eugene Moore Manufacturing and Biotech Solutions Center in Sanford.
Renovations to Moore Center’s 10,000-square-foot biotechnology
building will make room for program expansions intended to support the region’s blossoming biotechnology industry. A “wall breaking” ceremony kicked off the work in September. “The building will contain clean room experiences, fill-finish labs, BioWork classrooms and a high flexible lab designed to shift with industry needs, among other learning spaces,” Roberton says. “This building will support individuals entering into the industry in areas of process technician and quality as well as upskilling the existing workforce as they progress through their careers.”
Kyowa Kirin joins manufacturers Pfizer and Astellas in providing input for renovations and designing future training efforts at the Moore Center. “The college through a mix of county, state and private funds has committed $32.1 million toward current renovation efforts, which include the biotechnology building and Phase 1 of the manufacturing building,” Roberton says. “We are working on a capital campaign leveraging both public and private funds for the $72 million needed to complete the full renovation of the center. We are inviting a number of area manufacturers for input on Phase 1 of the larger building as well as early design efforts for Phase 2.”
Phase 2 addresses the balance of approximately 175,000 square feet of the main building. “[It’s] focused on ensuring that relevant advanced manufacturing
training is offered as well as holding space for partnerships and unique solution opportunities responding to manufacturing needs,” according to CCCC. “Training areas will include welding, industrial systems, automation, engineering technologies, computer-integrated machining, advanced materials/energy and the integration of Industry 4.0 technologies.”
The Moore Center is home to several programs. Robertson says the commercial drivers’ license division, is parked there, offering hands-on instruction for people pursuing this high-demand field. Other workforce development initiatives are underway elsewhere. Barrington says Harnett County has invested in CCCC’s Liftoff Lab program, funding multiple scholarships per year. The program is led by the college’s Small Business Center, which in partnership with the Sanford Area Growth Alliance and Downtown Sanford created Real Investment in Sanford Entrepreneurs in 2021.
CCCC has several new programs. FirstHealth FirstFutures is a healthcare workforce partnership with FirstHealth of the Carolinas and other community colleges. AdvanceNC is a collaboration of 12 community colleges, seven workforce development boards, three universities and two nonprofit partners that intends to create a more aligned and responsive workforce
ecosystem for the advanced manufacturing sector. And Commercial Leap Ahead for Wide bandgap Semiconductors — CLAWS — works with NC State and N.C. A&T to respond to the national need for a skilled workforce in microelectronics and semiconductors.
CCCC is prepared for a variety of assignments. “From advanced manufacturing and life sciences to clean energy and healthcare, CCCC is at the table for industry recruitment and expansion conversations, ensuring companies know they will have access to the talent they need to grow and thrive,” Roberton says. “These efforts include innovative efforts to include employers in meaningful conversations about workforce needs from inviting employers to help design training environments to establishing Business & Industry Leadership Teams to provide industry direct connections into helping the college align our educational delivery to their current and future workforce needs.”
Central Carolina Community College shares strong ties with local businesses. They direct training, ensuring workers have the proper skills, says the college’s Vice President of Workforce Development and Chief of Staff Margaret Roberton.
SHARED SERVICES
Chatham, Harnett and Lee counties share a workforce, trading commuters every morning and evening. “Our three counties are uniquely part of two distinct economic development regions in the state — Research Triangle and the Carolina Core,” Barrington says. “Areas in which each of our counties will actively work to uncover solutions include affordable housing, which differentiates from lowincome housing; power, including use of alternative sources; and childcare, its scarcity and affordability.”
Barrington says more than half of Harnett residents leave the county for work. The county launched its Harnett County Jobs Campaign in January, hoping to spur 1,000 new jobs at or above 125% of the county average annual wage, which state data shows is $46,969, by the end of 2030. “We know this will not make a real dent in the 39,000, or net loss of 20,000, that leave the county every day to go to work,” he says. “But it is a focused start.”
Randolph says other parameters direct job creation in the counties. “We
TriRiver Water serves customers in Sanford, Pittsboro and Siler City. It’s upgrading its infrastructure, expanding capacity to 30 million gallons per day. Central Electric Membership Corp. provides power to Chatham, Harnett and Lee counties. More electricity will be needed to meet future advanced manufacturing and data center demands.
have to also consider our partnership with [Economic Development Partnership of North Carolina] and their interest in larger projects like in life sciences, energy related and, as the uncertainty around tariffs continues, we see projects that may be interested in onshoring manufacturing. The challenge is power and access to adequate power infrastructure.”
Central Electric Membership Corp. serves Chatham, Harnett, Lee, Moore and Randolph counties. “We need 20 to 50 megawatts for advanced manufacturing that may be heavily automated, and it’s putting some significant challenges to our partners on the utilities side to meet those needs,” Randolph says. “That’s going to be part of the story of economic development in the future. Some data center projects think central North Carolina would be a great place, but we don’t have the electrical capacity to support that. Some centers need potentially hundreds of megawatts, and that’s unprecedented in our area for a single end user.”
The availability of other utilities can be hurdles, too. TriRiver Water serves Chatham, Lee and parts of Orange
counties. It formed in July 2024, when Sanford and the town of Pittsboro in Chatham County merged their water services. Siler City in Chatham County joined a year later. “If you’re thinking about regionality in economic development, you’re now seeing how small systems are not adequate,” Randolph says. “And I think Sanford is going to be a model for the state, where we look at a more regional approach. TriRiver Water is making significant investments to connect all those cities and will move to a 30-million-gallonper-day capacity. That’s critical for our larger businesses.”
Chatham County Economic Development President Michael Smith underscored the importance of adequate water supply to projects. “TriRiver Water is a key player in supporting our community across the county, from the Triangle Innovation Point megasite in Moncure to the Chatham Advanced Manufacturing site in Siler City,” he says. “From regional water infrastructure to industrial site development, our partnerships are fueling opportunity and shaping the future of Chatham County.”
More than 2.5 million people visited Jordan Lake State Park in 2023, making it North Carolina’s busiest state park. The Chatham County attraction offers undisturbed scenic views and plenty to do, including camping, wildlife viewing and boating at Poplar Point.
MIXING WORK AND PLAY
Chatham County has water views. “Jordan Lake is the most visited state park in North Carolina,” Smith says. “And that’s exciting, because it’s right here in our county. It’s a beautiful body of water with zero development along its shores.”
Chatham also has upscale housing developments, including one owned by Disney, and tourist attractions such as Carolina Tiger Rescue, a nonprofit wildlife sanctuary near Pittsboro.
Smith says Chatham has strong relationships with its neighboring counties. “And we’re fortunate to be part of both the RTP Regional Partnership and the Carolina Core,” he says. “These connections give us the advantage of collaboration and the support of regional marketing groups that help us share our story.” It has a whole chapter dedicated to business parks, including Triangle Innovation Point and ChathamSiler City Advance Manufacturing, which has 1,300 acres available.
Apex Gateway has six completed buildings, which total more than 1 million square feet, and additional space is under construction. Tenants include Durham Coca-Cola Bottling, US Autoforce, Emcor and Life Sciences Logistics. “Through our partnership with Apex Economic
Development, we are marketing the Apex Gateway site, which will offer over 1 million square feet of industrial space at the U.S. 64/N.C. 751 intersection,” Smith says.
Chatham County EDC opened a satellite office at 79°West Innovation Hub, a 22,000-square-foot workspace and 8,500-square-foot warehouse in MOSAIC, a 44-acre mixed-use community in the live-work-play-learn community of Chatham Park, just north of downtown Pittsboro. “MOSAIC’s 79°West Innovation Hub keeps creating community with innovative programming and by becoming home to small businesses, including the Chatham EDC and the Chatham Chamber,” says Kirk Bradley, the developer of MOSAIC at Chatham Park. “More guests than ever are attending MOSAIC events, including concerts, markets, wellness Wednesdays and more. And Hampton Inn & Suites is bustling with both business and wedding party traffic.”
MOSAIC includes businesses, restaurants, apartments, an outdoor concert venue and a hotel. “[It’s] alive with activity, whether that’s community events on the Philip H. Kohl MOSAIC Family Commons or a tenant’s grand opening,” Bradley says. “We’ve added multiple new services, like Foundations
Family Therapy and barre3 Chatham Park, and look forward to welcoming a new restaurant, a Tavolo Italian Eatery from local restauranteur Greg Lewis.”
Vanessa Jenkins is executive vice president of Cary-based Preston Development, which created the district. “Chatham Park is a unique community where residents can put down roots and work in a variety of locations,” she says. “We are convenient to megasites, the city of Sanford as well as Hartnett County. There are also many employment opportunities within Chatham Park as well. Various development projects are underway within Chatham Park, several of which will provide services and residential offerings for years to come. Grading of the UNC Health Campus, phase one of Asteria, StoryLiving by Disney, the extension of Chatham Parkway to connect Highway 64 and 15/501 have all broken ground this year.”
MOSAIC has plenty to offer. “[It’s] an attractive spot for businesses to locate, because it’s a mixed-use development, where community members can live, work, learn, play and dine all in one place in the growing community of Pittsboro,” Bradley says. “In short, the momentum at MOSAIC continues to add to Chatham County’s growing energy.”
MAKING ROOM FOR BUSINESS
Harnett’s population is about 146,000, 25% more than in 2010. That increase has been noticed.“Private developers are now circling the county and plan to bring to the market new shopping centers with top tier grocery store anchors,” Barrington says.
“Harnett County has also invested in a relationship with Retail Strategies out of Birmingham, Alabama, to help attract national brands within the retail, restaurant and hospitality space.”
Truck equipment manufacturer Godwin Manufacturing, a $30 million Rooms to Go expansion, doors and turnstiles manufacturer Boon Edam, grocery chain Carlie C’s IGA and Warren Oil Co., are big blocks in Harnett’s economic foundation.
The search for room to add more is underway. Product development — buildings and land — is Harnett County Economic Development’s focus. “Product development is all about ‘setting the table’ for new and expanding companies,” Barrington says. The county is working to identify buildings and land suitable for manufacturing and professional/business services and transitioning available land to marketready sites. He says Harnett’s first Class A industrial park, Harnett 95 Industrial Center, will have approximately 800,000 square feet of industrial building space.
Harnett wants a high-level presence in manufacturing, retail, professional and business services and health care. “Cape Fear Valley Health continues to grow in Harnett County,” Barrington says. “Over the last year, they added a 60,000-square-foot facility at their Lillington campus that included a cancer treatment center. They are currently constructing an Adolescent Behavioral Health Center on the same campus.”
EXPANDING DEVELOPMENT
Kyowa Kirin’s impact goes beyond its factory and CCCC. Randolph says Sanford Area Growth Alliance worked with local developer James Goodnight Jr. to create office space inside the former Capital Bank Building, one of eight properties he owns in downtown Sanford. “And they’ve moved 55 of their employees there,” Randolph says. “So, we will have that live-work-play atmosphere going on downtown.”
Goodnight’s other downtown buildings are undergoing repairs and renovations. Downtown Sanford Inc. Executive Director Kelli Laudate says the Kimbrell’s Furniture Store is being repurposed into 10 market-rate apartments with three to four ground-floor spaces for retail. “Nearby, another building on South Steele Street is under renovation and will soon provide two additional opportunities for retail or restaurant tenants,” she says. “Both projects are expected to be completed by spring 2026. Sanford is fortunate to benefit from Mr. Goodnight’s investment and leadership as he brings not only a strong vision for downtown development but also a deep appreciation for historic preservation.”
Harnett County Economic Development is identifying and preparing sites and buildings to attract businesses. They’ll join other important members of the local economy, including family owned and operated Godwin Manufacturing.
The downtown Pilgrim’s Sanford Agricultural Marketplace is expected to open in the spring. It will be a regional hub for farmers and artisans and partner with N.C. Cooperative Extension for workshops, cooking classes and demonstrations on food preservation. A commercial kitchen will support local food-based businesses. Travel 2 miles from downtown Sanford, and you’ll find Riverbirch Shopping Center in an underserved corner of the city. In late September, Sanford City Council approved $4.4 million in incentives for Ohio-based Casto to redevelop the center, which is expected to include a Target and regional grocery store by 2030. The $64 million project aims to revive the former retail hub and marks Target’s first Lee County location.
Laudate says work on Kyowa Kirin’s office space was completed earlier this year. It signified something bigger than a place to put desks, chairs and workers. “What’s most important is the broader impact,” she says. “Bringing Kyowa Kirin downtown not only anchors a global company in Sanford but also strengthens the city’s ability to attract future industries to establish offices in the heart of downtown.” ■
Kathy Blake is a writer from eastern North Carolina.
• 117,000 sq/ft ready for upfit
• 18+ acre sit with expansion pad graded
• Expandable to 236,000 sq/ft
• 26 ft clear ceilings
• Easy access to 4 lane US 1
• Uilities available with good capacities
• 40 minutes to Raleigh, RDU and the RTP
• 800,000 labor force within 45 minute drive
Carolina
Tiger Rescue gives large and wild cats a better life. It helps local companies and student groups build unity and give back.
ast of Pittsboro off U.S. 64 is Carolina Tiger Rescue, a 67-acre sanctuary that’s gaining favor with local businesses, which bring their staff for outdoor getaways. Cisco employees, for example, had visited 14 times this year as of late September. Employees from Deutsche Bank, Epic Games, Google, Lenovo, MetLife, SAS and Whole Foods have visited, along with sororities and fraternities from Duke University, NC State and UNC Chapel Hill. “It’s like a team building exercise for them,” says Kris Marino, Carolina Tiger Rescue executive director. “I worked for big nonprofits for a long time, and team building is a big thing. They’re getting a day out, and they have a way to give back.”
Marino says the sanctuary welcomed more than 1,000 workgroup volunteers last year. They represented almost 100 companies and universities and contributed nearly 4,500 hours to sanctuary care and maintenance. “We are on track to reach similar numbers in 2025,” she says.
Volunteers help construct enclosures, work on roads, mow grass or do any other outdoor task that needs to be completed. Some bring donations or wish-list items such as paper towels. “We just appreciate them coming and helping out with projects,” Marino says.
WILD MEETINGS E
Carolina Tiger Rescue is home to 55 animals — tigers, lions, servals, cougars, caracals, kinkajous, bobcats, coatimundis, raccoons and porcupines. They live in spacious enclosures that replicate their natural habitat. Most come from traveling circuses, momand-pop zoos or private owners. “Some of our residents have been confiscated by authorities,” Marino says. “You cannot [privately] own a large cat anymore. It’s illegal. But you can own a wild cat like a bobcat [in four states, including North Carolina]. We actually have a bobcat that was owned by someone, and when she reached the age and size where she was no longer a kitten well, she lives here now. We have a lot of caracals that people thought were cute, but at the end of the day, they’re wild animals.”
Everyone who enters Carolina Tiger Rescue requires a staff escort. The sanctuary offers public and private tours, school field trips, a middle school homeschool program and internships. Tours provide an opportunity to educate people about the animals and their rescue stories.
“From an economic perspective, those who travel here, they buy gas, they buy meals and they spend money in Chatham County,” Marino says.
“We hope to have more tours and educate more people. For everyone who works here, it’s a labor of love. It’s a great job. We have about 22,000 visitors a year. Our goal here is to educate.”
Marino moved to Chatham County in December 2020, and she toured Carolina Tiger Rescue the next month. “My favorite animal was the massive tiger who greeted you when you went on tour,” she says. “I walked in and saw him, and I immediately knew I needed to work with Carolina Tiger Rescue somehow. The tiger’s name was Caprichio, and he was a big boy. He weighed 489 pounds. I started working as a volunteer. He’s what made me want to stay.”
Caprichio was born in 2010 and rescued in 2016 from a roadside zoo in Colorado. His hind legs were injured, and his back was bowed from metabolic bone disease. Carolina Tiger Rescue provided medical care and a home. A staff favorite, he learned to appreciate human help and spent hot summer days splashing in his pool. He died in October 2023.
Marino heads a 22-person staff. She says their affection for the animals is continual. “We have a memorial garden, and we have a ceremony,” she says, alluding to Caprichio’s service. “It’s very emotional. Everyone who works here loves animals.”
Carolina Tiger Rescue has 12 acres where it will build a visitor’s center and educational building. D&G Community Development, a national organization that works with nonprofits, is organizing a capital campaign, and Carolina Tiger Rescue has fundraising links on its Facebook page and website. An architect and engineering firm are onboard, and Marino is working with local officials. “We probably are going to have our groundbreaking on the new 16,000-sqare-foot building in 2026,” she says. ■
Kathy Blake is a writer from eastern North Carolina.
CASWELL COUNTY COURTHOUSE
The Caswell County Courthouse stands center stage in Yanceyville, a town of 1,800 that is 40 miles northeast of Greensboro. Three years in the making from 1858 to 1861, the courthouse is a powerful symbol of the county’s rich, turbulent history. Designed by architect William Percival, it is the only public building that has survived from the county’s antebellum era.
The two-story, stuccoed brick building is accented by the intricate elements of Victorian architecture, fused with arches that define Italian Romanesque and the symmetry of Classical design. The courthouse is deeper than it is wide, giving it a rectangular layout that rests on a rise of solid granite. Other distinctive elements include a two-level recessed entrance porch and an elegant cupola crowning the roofline. The courthouse is a rare architectural gem that commands Courthouse Square, located in the town’s historic district. It was added to the National Register of Historic Places in 1973.
The building is also known for its tragic chapter in the state’s Reconstruction history. On May 21, 1870, state Sen. John W. Stephens was ambushed and murdered in the basement of the courthouse. Local officials believed the crime was committed by Ku Klux Klan members, who opposed the Republican leader’s efforts supporting freed slaves. Several Klansmen were arrested, but never charged, and state lawmakers later passed amnesty laws. The building also has gained a reputation as being a source of paranormal activity, and the subject of podcasts and stories that mix fact and folklore.
The historical and cultural importance of the courthouse makes it a striking monument to 19th-century architecture. It is a testimony to the struggles and resilience that have helped shape the county, which is named after Richard Caswell, the state’s first governor after after the U.S. Constitution of 1776.
