WINSTON-SALEM, NC—Philadelphia-based PMC PropertyGroup and Kimpton Hotels &Restaurants of San Francisco for $7.8 million. haveacquired thehistoric Reynolds Building here from R.J. ReynoldsTobacco Co.

The new owners plan to covert the 22-story art-deco buildinginto a mixed-use property consisting of a boutique hotel,restaurant, and upscale apartments.

Considered one of the country's first examples of art decoarchitecture, the R.J. Reynolds Building was designed byShreve & Lamb, architects who went on todesign the Empire State Building. The property, built in 1929,features a main lobby level with ornate murals, gold leaf gildedmillwork in the ceilings, and interior nickel and brass elevatordoors throughout. The building was the longtime headquarters forR.J. Reynolds Tobacco, however the property has been vacant since2009. PNC plans to convert a portion of the office space intoluxury rental apartments. Kimpton plans to open a new boutiquehotel with 175 rooms, 36 suites, a hotel fitness center and morethan 6,375 square feet of event and meeting space, including twoballrooms and several meeting rooms on the mezzanine level. Thedevelopment will also feature a 120-seat restaurant and bar. Aprojected opening is slated for 2015.