Durham NC Downtown Development: 12-Story Project Approved

Durham City Council voted 6-1 on July 9 to approve a 12-story mixed-use building on a 1.8-acre lot at the corner of Chapel Hill Street and Pettigrew Street, two blocks from the central business district.

The decision arrives as Durham records its fastest population growth in a decade, with the county adding 8,400 residents between 2024 and 2025. Housing production has lagged behind demand, pushing median rents in downtown zip codes above $1,650 for a one-bedroom unit. City planners have flagged the need for 4,200 new units by 2030 to keep pace with job growth at Duke University and the Research Triangle Park corridor.

The site sits one block south of the Durham Performing Arts Center and across Pettigrew Street from the American Tobacco Campus. Both landmarks draw thousands of visitors each week, and the new project will add ground-floor retail and a 180-space public parking deck meant to serve evening events at those venues.

Scale and timeline

Plans call for 285 apartments, 22,000 square feet of retail space, and 12,000 square feet of office space above the retail. Construction is scheduled to begin in October 2026 and finish in late 2028, according to documents filed with the Durham Planning Department. Total project cost is listed at $68 million. The developer will pay $2.4 million in impact fees to the city, with a portion earmarked for sidewalk improvements along nearby Mangum Street.

City data shows Durham issued 1,872 residential building permits in 2025, up 14 percent from the prior year. Average sale prices for new downtown condominiums reached $412,000 in the first quarter of 2026, according to county tax records. The approved project will offer 40 units priced below market rate under the city’s inclusionary zoning rules.

Next steps for residents

Final engineering drawings must be submitted by August 15. A public information session on traffic mitigation is set for August 4 at the Durham County Main Library branch on Main Street. Residents can review the full application packet online through the city’s planning portal or request a printed copy at the planning counter on the third floor of City Hall.

Parking on adjacent streets will be restricted during the early construction phase, and the city will post updated detour maps on its website starting in September.