Fidelity Trust Company announced its redevelopment plans for 701 Cherry Street, in Chattanooga's newly-formed Innovation District. The 701 Building, acquired by Matt McGauley and Mike McGauley in January 2015, was originally constructed as the first corporate headquarters of the Krystal Company. Before its construction, the 7th and Cherry site was home to the first Krystal Restaurant, opened in October 1932.
Eighty-three years after the first Krystal opened its doors during the Great Depression, the reimagined and completely redeveloped 20,000 square foot 701 Building will open its doors to a host of new tenants in a new dawn of innovation in the City Center.
OpenTable, a wholly owned subsidiary of The Priceline Group (NASDAQ: PCLN), will be anchoring the building and leasing the entire third floor. The second floor will be completely occupied by two of Chattanooga's most successful organically grown tech companies: Whiteboard and Southtree. Brody Jewelers will be opening an expanded retail location along the Cherry Street frontage . The 3,600 square-foot "former diner space" at the corner is the last remaining space in the building available for lease.
Highlights of the multi-million dollar redevelopment include:
• Restoration of the limestone fa<;ade.
• All new windows and storefronts, featuring double-paned, low-e, butt-glazed windows on the upper floors.
• Two terraces and one balcony will be constructed to provide office tenants with outdoor areas.
• New two-story office entrance of glass and steel channels, with a teak accent .
• Building lobby to feature imported Italian tile, glass walls, exposed concrete ceilings and modern lighting fixtures.
• Full elevator modernization.
• Refinished and polished terrazzo stairway .
• All interior spaces to be constructed per tenant custom specs.
• Interior spaces to feature: stained and polished concrete floors, exposed and painted concrete and steel truss ceilings, reclaimed wood accents, glass "whiteboards", concrete countertops,custom casework, high-efficiency LED,CFL, and T-5 lighting on Wi-Fi and occupancy sensor controls, and high-efficiency HVAC with economizers and a web-based energy management system.
• Fob card security access.
• New streetscape as model for Innovation District branding.
Matt McGauley, president of Fidelity Trust, said, "The 701 Building redevelopment will be one of the signature projects of the Innovation District. Some of Chattanooga's best and brightest will be working and collaborating together under 701's roof. The Krystal was born at 701 Cherry in 1932; we can only imagine the next great ideas that will come to light from this group of talented entrepreneurs. 701 will be a center of innovation through collision."
Mayor Andy Berke said, "Not only is the 701 Building a landmark in Chattanooga's history, it will now be a leader in Chattanooga's future. Today's entrepreneurs want and need a densely populated, highly caffeinated space where ideas can collide. Our Innovation District is that place and the 701 Building will be an anchor within the district, providing the location and resources for companies like OpenTable, Whiteboard and Southtree to grow and thrive."
Jeff Cole, director of Product Management for OpenTable, said, "The Chattanooga OpenTable team has its roots in the startup community beginning as Quickcue which was purchased by OpenTable in December of 2013. Our growing team of product engineering and user experience designers are proud to be a part of Chattanooga's Innovation District."
Taylor Jones, co-founder and CEO of Whiteboard, said, "Whiteboard started between two friends at a kitchen table in the fall of 2010. Those days were filled with late-nights and grit, and the team has now grown to more than 15 designers, developers, strategists, and creatives, all working from Chattanooga, TN. We are proud to be making our new home in the Chattanooga's Innovation District, alongside other great companies focused on showing the world what Chattanooga is capable of."
Adam Boeselager, co-founder of Southtree, said, "Southtree started to help customers make the leap from analog to digital media. Bootstrapped from day one, Southtree has grown from idea to garage to a hard-working team of over 100, all here in Chattanooga, TN. We are excited to be moving our company's headquarters to Chattanooga's Innovation District. It takes a talented and dedicated team to manage a high growth company, and we look forward to the unintended collision points that'll occur in the Innovation District where our team can interact face to face with other growing companies and share learnings and experiences.
Louis Brody, co-owner of Brody Jewelers, said: "We are thrilled to be an integral part of the redevelopment of a signature project like the 701 Building. Our expanded and completely renovated store will be uniquely positioned to better serve our customers in the newly established Innovation District and surrounding areas."
The building redevelopment project team includes Berry Construction Company, River Street Architecture, and Cornerstone Community Bank.