HIGH POINT – Perhaps the most interesting news to emerge from this High Point Market wasn't about product or design trends at all. It was about strategy and real estate, a story that played out quietly in one of downtown's most iconic landmarks.
At the former Red Lion Hotel, asset manager Tim Moore and his team at HDDA LLC are orchestrating a complex turnaround that could redefine the use of space at the heart of the market.
What began as a run-down hotel has evolved into a mixed-use concept combining showroom, hospitality and residential, a development tailored to the rhythm of the furniture industry's most important event.
See also: The manufacturer is opening a new, year-round showroom in High Point that could be game-changing
“This property was inherited, not purchased,” Moore said. “The corporation that owned the company wanted to minimize losses following the failure of an operator. My job was to intervene, stabilize the company and find a new direction that made sense for High Point.”
Given the progress Moore has already made, he and his team are well on their way to achieving this goal. Moore confirmed that the first step of this reinvention has already been completed. The first floor of the building – approximately 43,000 square feet – is now 99% leased to showrooms and associated tenants.
The Phillips Collection and High Point Exhibitions each occupied more than 15,000 square feet of space, with the Phillips Collection using the space as a year-round hub for interior designers and dealers and featuring a design center and easy access to its nearby warehouse. The showroom has different entrances for market days and year-round visitors and features a design center for custom projects.
High Point Exhibitions has now divided its space into three permanent exhibition spaces, which now house Transformer Tables, Catherine's Home and April's Story.
Karat Home, which previously acquired Z Gallerie, is also exhibiting here and is reintroducing the Z Gallerie brand in Room 121 at 135 S. Main St.
Below, a lower “club level” is being prepared for development as an additional showroom or entertainment area, according to Jordan Reece of Commercial Realty, CCIM, who is working with Moore on the project.
“We view it as a place where producers can both work and host,” Moore explained. “Some may even want to purchase an upstairs condo, creating a true live-work environment.”
Above the showrooms, levels two through eight — another 93,000 square feet — could be converted into about 70 condominiums.
Dubbed “The Foundry on Wrenn,” the units will serve High Point University manufacturers, representatives and parents who visit the area several times a year. “It's about extending the heartbeat of the market beyond these two weeks,” Moore said.
HDDA is currently surveying market exhibitors and local stakeholders to gauge interest in the condominium concept. “We’re looking for about 20 solid commitments to get us started,” Moore notes. “Once we have that, we will move on to architectural design and formal planning.”
If interest continues, Moore estimates it will take eight to 12 months to begin construction. While he expects a handful of permanent residents, most buyers are likely to be industry professionals looking for a comfortable, permanent base during market cycles.
The way to get here was long. The property's previous lease structure made redevelopment impossible until Moore and his partners simplified ownership. “We paid a little over $5 million for the land,” he said. “That gave us control and cleared the way for redevelopment.”
The company has also invested nearly $3 million in renovations and will significantly exceed that number as plans for The Foundry on Wrenn move forward.
The property is now fully consolidated and managed by HDDA LLC. It's part of a nationwide portfolio that originally included 40 assets and was backed by New York-based Capital Partners and an Atlanta-based lender. There are only five assets left, and Moore – who acts as asset manager for the entire portfolio – is committed to bringing this to full productivity.
The ultimate goal is not simply to reposition a building, but to help revitalize High Point's downtown core. Moore envisions a mix of showroom activity, boutique retail and dining venues that can bring year-round energy to Main Street.
“If the Showplace West project is implemented and we move forward with it, it will create real momentum,” he said. “Then you start seeing the cafes, the restaurants and the boutiques. You start to develop a sense of community.”
For Moore and his partners, the project reflects a broader evolution of High Point's identity. The market will always be about furniture – but the real story is increasingly the real estate behind it.