Tuesday, March 24, 2026

Graystone Inn on fire for second time in two years

An historic bed and breakfast is on fire in the midst of renovations after a fire destroyed it in 2023. (Courtesy Jamie Alfalla)

WILMINGTON — A bed-and-breakfast that was being renovated after a fire engulfed it in 2023 was in flames again Friday afternoon.

The 911 call came in for Graystone Inn, located at at 100 S. Third St., around 1 p.m. according to Rebekah Thurston of the City of Wilmington Fire Department. Crews of at least a half-dozen firefighters, including from New Hanover County, were on the scene.

Graystone Inn owner Jamie Alfalla told Port City Daily: “I’m in shock.”

It’s unclear where the fire started or what caused it at this time. A part of the roof collapsed within an hour of firefighters battling the flames, though no injuries have been reported and no one was inside the building when the fire began.

WFD closed Third Street between Market and Orange streets and asked the public to avoid the area and expect traffic delays at least through Friday evening.

Around 3 p.m. a power outage was also reported by Duke Energy affecting more than 2,300 downtown residents. Customers received a text explaining the outage was caused by a downtown fire. 

As nightfall descended, around 6 p.m., the fire was mostly extinguished with crews managing hotspots. The emergency personnel kept flames from spreading to other areas and structures surrounding the downtown historic building.

The Graystone Inn was constructed in 1905 by Elizabeth Haywood Bridgers, the widow of Preston L. Bridgers. The Bridgers’ lineage dates back to Robert Rufus Bridgers, Elizabeth’s father, who founded Wilmington/Weldon Railroad and became the president of the Atlantic Coast Line Railway, in operation until the 1960s. 

The building was a private home until it became an inn in 1982.

Husband-and-wife team Ace and Jamie Alfalla purchased The Graystone Inn for almost $2 million in 2021. For two-and-a-half years, the two invested in renovating the historic structure, which serves as a bed and breakfast and was home to fine-dining establishment Preston, named after Preston L. Bridgers. Just after the restaurant opened, a kitchen fire started causing smoke and water damage, rendering the businesses closed.

The Alfalla’s were in the process of making repairs and renovating The Grayston Inn again after the 2023 fire. It was slated to open soon.

The business owners also operate Sugo Italian Steakhouse, Concorde Espresso Bar, located in Front Street Inn, and are part owners of Oklahoma Burgers.


Want to read more from PCD? Subscribe now and then sign up for our morning newsletter, Wilmington Wire, and get the headlines delivered to your inbox every morning.

Shea Carver
Shea Carver
Shea Carver is the editor in chief at Port City Daily. A UNCW alumna, Shea worked in the print media business in Wilmington for 22 years before joining the PCD team in October 2020. She specializes in arts coverage — music, film, literature, theatre — the dining scene, and can often be tapped on where to go, what to do and who to see in Wilmington. When she isn’t hanging with her pup, Shadow Wolf, tending the garden or spinning vinyl, she’s attending concerts and live theater.

Related Articles