The Restoration on King's days as a boutique hotel are about to end.

The 16-suite inn above the Gap and Lucky Brand jeans shops near King and Wentworth streets in downtown Charleston is now a residence club owned by a Cincinnati-based company.

Jeffrey R. Anderson Real Estate, a privately held developer of numerous commercial ventures, recently acquired the lodging that was originally supposed to become a luxury condominium project.

The sale price was not immediately available Friday.

"We were fortunate to acquire this incredible building at an excellent price," said J.R. Anderson, vice president of development for the buyer. "Our competitive basis combined with the residence club structure will allow us to offer an amazing value to our residence club buyers."

The hotel will slowly evolve into a fractional-ownership residence club, said to Steve Dering, a founding partner of DCP International of Chicago, the firm hired to market and sell units in the building now called the Residences on King.

"As we sell units, we will convert hotel inventory to club inventory," Dering said. He predicted the changeover will take about two years.

The residence club is not a time-share because buyers get a deed to the property that's recorded with the county, he said. Units will be sold in one-eighth ownership allotments, meaning if every owner used a unit equally, they would get six weeks each in the unit.

"If some use it less, others can use it more," Dering said.

Fractional ownership offers the same rights as any real estate ownership, he said. Owners can sell or bequeath their share, he said.

Prices for the club shares and mandatory annual fees that pay for maintenance and other expenses were not disclosed.

The sellers of the property was King Wentworth Associates LLC, which purchased the property at 75 Wentworth St. in 2005 for $7.2 million, according to Charleston County property records.

Its three-year effort to transform the site into luxury condo project called The Exchange dovetailed with the real estate market's collapse. Instead, the group opted to turn the property into a boutique hotel spanning three floors of 16 one- and two-bedroom suites ranging from 862 square feet to 1,359 square feet, some with private patios.

The lodging earned AAA's Four Diamond designation in 2010, and last year Southern Living dubbed it the South's best new romantic stay.

King Wentworth Associates showed signs of financial strain occurred last year when Synovus Bank filed a legal notice that normally precedes a formal foreclosure lawsuit. No further action was taken.

Reach Warren L. Wise at 937-5524 or on Twitter at @warrenlancewise.