$71M Mixed-Use Development Approved to Wrap Around Spartanburg’s New Government Complex

SPARTANBURG, S.C. — A $71 million mixed-use development featuring luxury apartments, retail, and a restaurant is set to transform a prime block of downtown Spartanburg, with Indiana-based Barrett Realty Investments moving forward on a project that will encircle the city’s new joint city-county government complex.

Spartanburg City Council approved the first reading of a development agreement on May 26 authorizing Barrett Realty Investments to construct more than 325,000 square feet of mixed-use space adjacent to the $101 million, five-story government center that broke ground in January. The commercial elements are currently scheduled to open in 2028, pending a second council reading and county approval of a fee-in-lieu-of-tax agreement.

The project will deliver 220 market-rate apartments, nearly 15,000 square feet of restaurant, retail and office space, and a 950-space parking garage to be built jointly by the city and county. The garage will also provide a direct connection to the Daniel Morgan trail system, known locally as The Dan.

A marquee element of the development is the return of Blue Moon Specialty Foods to downtown. The city will convey a nearly 4,000-square-foot ground-floor condo to house the beloved local restaurant, which was displaced when its former building was demolished to make way for the government complex. The city purchased that property for $1.5 million, with the promise of a new location built into the agreement. Blue Moon’s new home will face a public plaza between the commercial development and the government center.

Council member Jamie Fulmer voiced strong support for the deal. “I’m excited about this project for so many reasons,” Fulmer said. “I’m thrilled that Blue Moon returns to downtown in such a prominent location.”

City Manager Chris Story characterized the apartment component as the highest-end residential offering currently planned for downtown. “These are high-end luxury units,” Story said, noting the complex will include amenities such as a pool and a dog bar. The project will not include workforce housing set-asides.

For commercial real estate professionals, the development adds significant retail and office inventory to a downtown Spartanburg market undergoing its most concentrated investment in decades. The government complex, the $71 million mixed-use project, and nearly $1 billion in broader capital investments being made in the city’s core are reshaping the leasing landscape around Morgan Square. The FILOT designation — structured as a multi-county business park agreement lasting 20 years — will also influence the long-term tax calculus for investors evaluating comparable downtown opportunities. County council approval of the tax agreement is required before the deal is fully closed.