H street shuffle.

• Author: Martin, Cathy
• Position: NC TREND: Triangle Region

When the storied Velvet Cloak Inn was torn down last month to make room for a student apartment complex, it marked the latest in a series of massive changes taking place along Raleigh's Hillsborough Street. An Atlanta developer bought the 54-year-old New Orleans-style property, which in its prime hosted U.S. presidents and celebrities but in recent decades had fallen into disrepair.

After years of uncoordinated growth, the area is now a hub of new development, with more than $308 million funneled into projects since 2009 along the street's busiest 3-mile stretch. The figure swells to $1.2 billion if you include planned or completed investments by N.C. State University and others in surrounding areas, according to a December report by the Hillsborough Street Community Service Corp. The municipal service district was established in 2009 to boost the area's economy and improve property values. The district extends from St. Mary's School in the east to Interstate 440 in the west.

"It's one of the fastest-growing districts in one of the fastest-growing cities in the United States," says David Dean, the group's director of programs. Major changes began in 2008, when the city launched a streetscape plan that includes reducing traffic from four lanes to two, adding roundabouts to improve traffic flow, widening sidewalks and adding bike lanes.

Recent projects include Stanhope Center, an $80 million student apartment complex developed by Kane Realty that includes 20,000 square feet of retail space. The six-story structure opened in August...