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May. 30, 2004
Cry for uptown condos climbs
Transit lines, gasoline prices fuel
demand for residential high-rises
DOUG SMITH
For the past three decades
Charlotte
's uptown skyline has been sculpted by office towers.
But the next wave of development
likely will be dramatically different, driven not by the commercial
skyscraper but by the high-rise condominium.
Two such residential projects have
been announced over the past two months, and uptown real estate watchers
anticipate two or three more could be unveiled this year.
Charlotte
isn't the only city experiencing the trend.
"It's all around the country
in big cities and small," said Dave Feehan, president of the
Washington-based International Downtown Association. "It began to
take off in the late 1980s and early 1990s."
Two key factors are encouraging
people to move to the urban core in
Charlotte
and elsewhere: improved center-city entertainment and cultural amenities
and worsening suburban traffic.
"It's different from place to
place, but what really makes the difference is a good mass transit
system," Feehan said.
Charlotte
's first light-rail line, which will parallel
South Boulevard
between uptown and Interstate 485 near Pineville, is to carry its first
passengers in fall 2006.
And the Charlotte Area Transit
System plans to initiate regular trolley service between uptown and South
End this summer.
"Cities with mass transit can
develop at a much higher density," Feehan said. "What you will
see is developers moving quickly to put up new apartments and condos along
a transit line."
If gasoline prices keep rising, he
believes the trend toward urban living will accelerate.
"The explosive growth of
China
's economy is going to affect the world supply of all raw materials --
including oil," Feehan said. "I think we have to be at least
prudent and start planning for $2.50- and $3-a-gallon gasoline."
That likely would encourage many
more suburbanites to minimize their commutes, downsize the auto fleet and
seek housing near jobs in the center city.
About 55,000 people work in uptown
Charlotte
.
Only about 8,500 live there, but
that's up from the mid-1990s total of about 5,500.
No large condo buildings have been
started in the center city since the 10-story, 57-unit Ratcliffe on The
Green sold out late last year on South Tryon Street.
Tim Newman, president of Charlotte
Center City Partners, and urban planners believe the center city will
attract more residents as it adds amenities.
And developers seem to be proving
their theory.
David Furman, whose Boulevard
Centro plans to start work this summer on 16-story, 104-unit Courtside at
Sixth and
Caldwell
streets, cited several amenities as key to his condo project:
• Construction of the new arena,
to open in fall 2005 about a block from his condo tower.
• The planned redevelopment of
the old convention center as an entertainment complex at Trade and College
streets.
• The completion of ImaginOn,
the combination children's library and Children's Theatre, at Sixth and
Brevard streets.
Three weeks after Furman announced
Courtside on April 21, developer Pete Verna revived plans for a condo
tower sidetracked for two years by the effects of 9-11 and a soft economy.
"Courtside and The Park
started what I believe will be a domino effect," Newman said.
"David's announcement led to Pete's. Pete's will lead to
others."
Courtside sold out in about two
weeks at prices ranging from the $150,000s to more than $600,000.
The Park, which began marketing
units about 2 1/2 weeks ago, had 30 of 107 remaining Friday, according to
Helen Adams Realty. Prices started at $156,850 for a studio and ranged to
$700,000-plus for a penthouse.
Verna, managing director of
222 S. Caldwell Street
Partnership, plans to start construction atop an existing four-story
parking garage this summer at Third and
Caldwell
streets.
The residential tower will reach
21 stories.
What's next?
Atlanta-based Portman Holdings,
developer of the 25-story Westin Charlotte, kicked off a marketing
campaign last summer for an 11-story office building beside the hotel at
Stonewall and College streets.
But facing an oversupply of space
in the center city, it's now exploring the potential of a residential
condo tower there.
Real estate watchers say owners of
other uptown sites once considered prime for office buildings might also
look at condos if demand remains high.
The space needs of Bank of America
Corp. and Wachovia Corp., the two largest office users uptown, have eased
over the past four years, making construction of another skyscraper
unlikely for perhaps the remainder of this decade.
As for high-rise residential,
"I don't see it stopping," said Feehan of the IDA. "The
tide is turning. Time and energy consumption will be the biggest factors.
... no one wants to take three or four hours to get to work."
Doug Smith |
