The new structure will complement the Raleigh, NC-based developer's existing, same-size Capital Plaza I and II buildings and a 167-room Embassy Suites hotel at the East Pine Street complex. About 15,000 sf of retail will also be developed in the office building.

The new spec-built office space is only one component in a planned $100-million, mixed-use undertaking Highwoods and Orlando hotelier Richard Kessler plan for the 2.2-acre site at the southeast corner ofRosaline Avenue and Pine Street.

Kessler expects to break ground also by year end on a seven-story, unbranded hotel at the same site, according to preliminary plans filed with the city. Kessler completed the 250-room, $100-million Westin Grand Bohemian Hotel across from City Hall Downtown in 2001. Mayor Buddy Dyer formally announced the projects April 26.