Locally based Empire Properties offered to buy the asset at the same price and convert the property to a fiber-optics center with some residential. Modern Continental officials said in a published report they chose Raleigh over sites in Nashville, TN, California and Arizona.

Modern Continental's new construction plans are expected to enliven Fayetteville Street Mall, the four-block pedestrian mall that lost its retail appeal years ago. Hudson Belk abandoned its building in the mall in 1995 after losing shoppers to suburbia. The city bought the building in 1998, sold it to developers in 1999, then got it back after the deal was canceled.

According to published reports, the city received eight offers and by last month had eliminated all but Modern Continental and Empire Properties. Modern had the upper hand because of its recent purchase of 333 Corporate Plaza next door to the Belk building and its promise to build a restaurant on the mall. The 15-story building was about 70% occupied when Modern bought it for $8.15 million last year. The building is now fully leased and serves as the headquarters for the company's Southeast real estate division.