WINSTON-SALEM, NC—Philadelphia-based PMC Property Group and Kimpton Hotels & Restaurants of San Francisco for $7.8 million. have acquired the historic Reynolds Building here from R.J. Reynolds Tobacco Co. 

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

Considered one of the country's first examples of art deco architecture, the R.J. Reynolds Building was designed by Shreve & Lamb, architects who went on to design the Empire State Building. The property, built in 1929, features a main lobby level with ornate murals, gold leaf gilded millwork in the ceilings, and interior nickel and brass elevator doors throughout. The building was the longtime headquarters for R.J. Reynolds Tobacco, however the property has been vacant since 2009. PNC plans to convert a portion of the office space into luxury rental apartments. Kimpton plans to open a new boutique hotel with 175 rooms, 36 suites, a hotel fitness center and more than 6,375 square feet of event and meeting space, including two ballrooms and several meeting rooms on the mezzanine level. The development will also feature a 120-seat restaurant and bar. A projected opening is slated for 2015.

“From the beginning our goal was to take extra time, care and effort ensuring we did this the right way,” says Andrew D. Gilchrist, president and chief commercial officer of R.J. Reynolds Tobacco. “We wanted to come to the best result, not only for us, but also for the city of Winston-Salem and the building itself, considering its historic significance, We are confident that we have found the right owners to successfully transform this beautiful building while still honoring its place in the community, and once again make the Reynolds Building a centerpiece for downtown activity.

“The R.J. Reynolds Building is one of the most historically significant and architecturally interesting buildings in the country, and we are honored to be able to play a role in adapting it into an exciting new hotel for the city, while preserving its important history and character that R.J. Reynolds Tobacco Company has taken such great care to maintain,” says Kimpton Chief Executive Officer and President Mike Depatie. “It's also exciting for us to be expanding our footprint in the Southeast, bringing the Kimpton sense of style and fun to a new market of travelers and Winston-Salem locals.”

The Reynolds building project will be the first hotel venture in North Carolina for Kimpton Hotels and will be the first rental apartment project for PMC Property Group in the state.

Among its Southeast holdings, Kimpton recently opened The Brice in Savannah, GA. and also operates three hotels in Miami, including the Epic Hotel, the Surfcomber, The Angler's hotel and an additional property on Florida's popular Atlantic Coast, the Vero Beach Hotel & Spa. This is also the second venture in two years for Kimpton and PMC Property Group. The two firms have partnered to build the Hotel Monaco Pittsburgh, which is scheduled for a fall 2014 opening.