High-end condos rising
Projects joining battle for execs, empty-nesters

Brian Falk

The high-end condominium market, which gained a foothold in Charlotte with uptown's 400 North Church Street development in 1996, is blossoming in the city's toniest neighborhoods.

Four new projects -- in Dilworth, Myers Park and Eastover -- are offering condos priced from $250 to more than $300 per square foot. Some will have units that pass the $1 million mark.

"The reason there's consumer demand for this type of living is that the convenience and everything else the purchaser gets really does translate into value for them," says Jeff Kentner, president of State Street Cos., which is building the 615 E. Morehead project on the site of the former Red Carpet Inn, where several units are expected to hit $1 million.

Other projects in the early stages of construction:

• Fenton Place, a Carnegie Co. development in the 400 block of Fenton Place, that has sold 26 of 28 units at prices ranging from the low $300,000s to the mid-$700,000s.
• 2400 Roswell, a 21-unit project by Spectrum Properties' residential division on Roswell Avenue across from Myers Park Country Club, where condos will cost up to $1.3 million.
• The Kenilworth, by 3-D Development, which is in the heart of Dilworth, across from the Latta Pavilion mixed-use development.

The developers point to a combination of factors for spurring the new construction: the city's growing empty-nester population, the large number of highly paid executives who want to be close to uptown and want a low-maintenance lifestyle, low interest rates and the increasingly difficult commute from high-dollar communities in the suburbs.

It's a market that has developed in less than a decade. Bank of America Corp. was the first to expand condo pricing when it backed the 400 North Church project. Before its arrival, there were no condo closings in Charlotte above $500,000, says development consultant Emma Littlejohn of The Littlejohn Group. The market's reception to 400 North Church opened the door to a host of big-ticket projects.

St. Serrant in Myers Park and The Crillon in Eastover raised the bar when they became the first mid-rise condominium projects in Charlotte with units priced above $1 million. Their developers justified the price by emphasizing the location, design and amenities, offering square footage and a level of finish previously unseen in the condo market. Other condo projects, such as The Ratcliffe and Settlers' Place uptown, have also sold some units in the $1 million range.

The pricing defies traditional market thinking that single-family homes should sell at a premium to condos.

Carnegie Co. owner Brian Speas believes lifestyle is the first thing his buyers consider. He says most buyers of high-end condos in Eastover and Myers Park come from large single-family homes in the same neighborhoods. Most are empty-nesters, and they want a different lifestyle but don't want to compromise on quality or leave their neighborhoods.

They're attracted to condos because they offer luxurious, maintenance-free, secure homes in the neighborhoods they prefer.

Spectrum Properties Chairman Jim Dulin says location is also key selling point for 2400 Roswell. "People who spend that kind of money are very particular about where they are," Dulin says. Residents who are members of Myers Park Country Club can walk across Roswell Avenue to enjoy the club's amenities.

The high-end condo projects in Myers Park and Eastover offer a different lifestyle than what buyers at The Kenilworth will see. Whereas Fenton Place and 2400 Roswell are on quiet streets in residential settings, The Kenilworth is at the center of a more mixed-use environment.

Bill Diehl III, president of 3-D Development, says The Kenilworth will offer enough indoor and outdoor space to attract families, but aside from Dilworth's proximity to employment centers uptown, the location's main attribute is that it's surrounded by shopping, dining and entertainment options.

Among this group of new high-end condos, State Street's 615 E. Morehead will offer the most urban lifestyle. While part of Dilworth, the location is across Interstate 277 from uptown. It will be a larger project than the others, with about 110 units just a couple of blocks from a light-rail stop linking uptown, South End and points south.