| South
End: Housing Takes Off in Old Manufacturing District
By Susan Shackelford
In October, Anne Knight and Betsy Magdall closed on a new condo in
South End. They were ready to give up the maintenance of a single-family
home and wanted to live near restaurants, nightlife and the airport.
"We like the idea of being in the city, but most cities are too big
and scary for us," Magdall says of their new home in the Park
Avenue Condominiums on the Trolley. "It gives us access to the
stuff we want; it’s urban, yet not ‘big city.’"
Says Knight, "We were looking in the general area of uptown,
within a five-mile radius. South End had the edge due to restaurants,
shops and there seems to be an overall plan to the development."
Former residents of Highland Creek, the couple loved their home and
the neighborhood but found the suburbs "dull and monotonous after
the newness wore off," Magdall says. "The place we selected in
South End is a newly built loft. We love the feel of it." They also
were drawn by historical flavor of the area (see page X).
"South End seemed perfect," Magdall says.
Indeed. With the trolley slated to begin full-time next year, light
rail coming in 2006, old manufacturing buildings being renovated and new
construction popping up, South End has emerged as one of the hottest new
neighborhoods in the city. Housing is finally taking off in a part of
the city that began sustained redevelopment in the early 1990s.
1,262 Homes Since 1999
Ten projects have either
opened or have been announced since 1999 for South End, accounting for
1,262 units
But until the late ’90s, redevelopment of South End consisted
primarily of new retail stores, restaurants and office space. Prior to
’98, 354 units of housing were developed in four projects —
Olmstead Park (near South End), Atherton Lofts, Factory South and
Atherton Heights. By comparison, 10 projects have either opened or been
announced since 1999, accounting for 1,262 units (see chart, page X).
The latest numbers are all multifamily projects and include two projects
on the edge of South End,
Wilmore Walk and Tremont Place.
South End, as defined by a special tax district that funds the
Historic South End organization to promote the area, runs roughly from
Morehead Street to Remount Road and from the east side of South
Boulevard to South Tryon Street
as far south as Hawkins Street.
This fall the Park Avenue condos and The Arlington became the first
two large-scale, for-sale housing projects to open since 1997 —
and both are on the trolley line. The last major housing development to
open consisted strictly of apartments, the Summit Grand View, a 266-unit
project that debuted in November 2000 and is also on the trolley line.
The project’s size (nine stories, including two floors of retail) and
rents ($900 to $2,500 today) showed South End was becoming a more
desirable place to live.
"I think South End is poised to take the next step," says
architect David Furman, managing principle of the development company,
Boulevard Centro. "At this point, particularly with the trolley now
more a reality than a myth, it has spurred a new wave of excitement
about the area. I think you’re going to see a lot more projects
nestling along the trolley line."
Trolley, Uptown Are Focal Points
Tom Warshauer agrees. As part of his job with the City of Charlotte’s
Neighborhood Development department, he has worked with South End
property owners on revitalization since the late 1980s. "The market
really wants to be on that trolley," he says. "We don’t have
a lot of different experiences in Charlotte, something people view as an
amenity. People are very excited about it; they are tired of the
sameness of Charlotte. They may not be quite ready to ride a bicycle to
work, but they will jump on the trolley."
Kevin Gullette, executive director of Historic South End, unabashedly
predicts that the trolley and development around it will become a
destination for people who live in the region as well as for visitors.
"This is our Riverwalk," he says referring to the restaurant,
shopping and nightlife district of San Antonio, Tex. "This is going
to be our calling card."
But the trolley concept has come together in fits and starts over the
last decade and not until recently has it become definite. Thus, the
biggest residential selling point for South End, Gullette says, has been
it’s close proximity to uptown Charlotte, which is only a few blocks
from the northern part of the area. "Downtown is a major employment
center," he says, "and people like the convenience and
accessibility of living in South End."
Jim Gross, developer and architect of The Arlington, agrees that the
closeness to uptown has been the top factor in sales of that project.
"The trolley is not why people are buying (now)," he says.
"What it (South End) is today is not nearly as important as
tomorrow or four or five years down the road. The area still has a long
way to go. The trolley and light rail will come, and the area will
continue to develop.
"There are so many positives for the area," Gross
continues. "Right now the economy is flat, and it’s difficult to
see the forest for the trees. If you have a longer time horizon, that
area will probably outperform other areas that are close to
downtown."
‘New Frontier’ For Housing
Tony Pressley, president of MECA Properties and a pioneer in South
End’s redevelopment, sees South End housing as "a new
frontier." He would like to develop dense, multifamily homes in
Camden Square Village, where he developed the Design Center of the
Carolinas and Camden Row, both of which are primarily retail and office
space. But such urban housing development is a new concept in Charlotte,
and the economics of creating it is more expensive than traditional
suburban development, Pressley says.
Higher land costs than suburban locations, more expensive materials
to construct buildings greater than three stories and the need for decks
to meet parking requirements all drive up the costs. "This all
impacts affordability," he says. "You’re asking people to
pay a premium (up to 50 percent more than in the suburbs) to live more
conveniently close to town. Some people are willing, but others won’t
pay $200,000 for 1,000 square feet."
To promote more affordable housing in urban locations, Pressley would
like to see the City of Charlotte offset some of these higher
development costs. "We have roughly 50,000 to 60,000 working in the
center city," he says. "To stay competitive as a city, we have
to be able to get a skilled workforce in and out of there. How we
accomplish that is a function of housing. Of late, where jobs are
located and what is the commute time has become more important to
people. I think there are a lot of reasons for workforce housing in
close proximity to uptown."
The city is expected to address the affordability issue in its
land-use policies for transit stops, several of which are in South End,
including one near Camden Square Village. A draft of policies from city
staff is expected to go to the Charlotte City Council in January for
approval. Dubbed "Transit Joint Development Policies," the
rules are expected to address incentives for the private sector,
public/private development partnerships, affordable housing and other
issues.
Gap Financing, Expedited Permits
Laura Harmon, who is working on the draft transit policies for the
Charlotte-Mecklenburg Planning Commission, expects there to be "gap
financing" for developers who want to meet transit land-use
policies but can’t make the numbers work financially. "There’s
limited funding so we’ll be looking for the best bang for our
buck," says Harmon, the commission’s economic development program
manager. "We are also looking at things we can do to make the
development process quicker. Part of the cost of a project is the time
to get approvals. We’re looking at expedited permitting and rezonings,
for example."
Also on the horizon are new development and design rules for South
End, called a Pedestrian Overlay District, or "PED" District
(see page X). This will eliminate the suburban-style zoning that allowed
the Eckerd drug store to built at the corner of East and South
boulevards and will ensure that South End continues to develop as an
urban area.
Among South End’s new housing projects, Gross has been criticized
for The Arlington, a 25-story high rise whose exterior is pink glass.
People complain about the height — the tallest residential structure
in Charlotte and perhaps the state — and the contemporary look, which
contrasts sharply with the brick of most South End buildings. He shrugs
at the complaints. "I like doing first-of-a-kind buildings; that’s
what interests me," says Gross, an architect whose development
company is The Metropolitan Group. "It’s not interesting to do
cookie-cutter buildings, lots of four-to-six-story buildings that, to
me, all blend in with each other."
Gross: Wait ’Til Arlington is Done
He believes critics should hold their tongues until they see The
Arlington complete. "It’s reasonable for people who are less
educated about it to become critics before it is finished," he says
"Once it’s finished, it’s fair game. You can’t evaluate a
product until it’s complete and you experience it. So far the people
who have had the most say negatively have had the least exposure."
As of late September, 74 of the 113 units in The Arlington were sold,
according to Gross. They range in size from 886 square feet to 4,800
square feet and in price from $199,900 to nearly $1.5 million. All units
have floor-to-ceiling glass and amenities include swimming pool, fitness
center and terrace, all on the roof. The 435,000-square-foot building
has an adjacent parking deck and includes retail to serve residents. So
far, most buyers are 40 to 60 in age, Gross says. The Arlington is at
South Boulevard and Arlington Avenue.
Meanwhile, the Park Avenue project looks more like typical South End
construction. It’s predominantly brick and four stories. Like The
Arlington, it is right on the trolley line and has a smattering of
retail/office space. The condos share a parking deck with the Park
Avenue Building, a retail center that fronts South Boulevard and
includes Carrabba’s restaurant.
As of late September, 56 of 66 Park Avenue units were sold, according
to sales consultant Erin Bradley. Most buyers have been young
professionals, she says, and the second largest group has been empty
nesters. Prices range from $120,000 to $269,500 and sizes from 600
square feet to 1,250 square feet. Most floor plans have a loft or
townhome feel. The project is at the corner of Camden Road and East Park
Avenue. While the condos face the trolley line, the commercial space —
which consists of five properties — faces East Park Avenue and uses
old store fronts previously there.
The developer is Charleston, S.C.-based Greystar.
‘South End is Place To Be’
Opening late this year or in early 2003 will be South End Square, 299
luxury apartments by Fairfield Development based in Dallas, Tex. The
two-building project is on the trolley line and marks the company’s
first venture out of the Charlotte suburbs. The company developed the
Fairways at Piper Glen and The Marquis at Carmel Valley, among other
communities. "South End is the place to be now; it’s has killer
views of uptown," says Patsy Withers, Fairfield’s Charlotte
office manager. "Young career people want to be near things that
are happening"
Similar to most for-sale housing in the area, South End Square will
have high-end finishes, hardwood floors and high ceilings. Prices and
square footages weren’t available in early October.
The next for-sale housing is targeted to open in 2003 — The Village
of South End and Wilmore Walk, both by Furman’s company, Boulevard
Centro; and Kingston Flats by Pressley’s company, MECA Properties.
The Village of South End is not on the trolley line, but it’s
across South Boulevard from the popular Southend Brewery and Atherton
Mill shopping area. The 115 loft units include price points below
$100,000, with two-thirds of them at $130,000 or less, Furman says. Most
units are 550 square feet to 1,000 feet, with a few at 1,200 square
feet. The project is built around a retail plaza, to be developed by
Crosland, with housing on four sides of the plaza.
Furman expects The Village at South End to attract mostly singles and
couples, just as his company’s Silo Urban Lofts did in Fourth Ward.
"That tested this concept," he says. "Both projects offer
skyline views, 10-foot ceilings, lots of glass and built-in washers and
dryers. These homes are small by traditional standards, but our thinking
is people will trade square footage for a great location and great price
as long as the place is distinctive and cool."
Staying Linked To Wilmore
Wilmore Walk is the working name of a 47-unit project Furman is doing
through the nonprofit part of his business. Located on a new section of
West Worthington on the west side of South Tryon Street, it’s actually
slightly outside South End, whose western boundary is South Tryon. But
the project is significant because South End leaders have a close
working relationship with the Wilmore neighborhood, as they do with the
Dilworth neighborhood.
"Part of the mission of this project is to keep Wilmore tied in
with South End," Furman says. "We are going to do super
affordable townhomes for less than $100,000. They’ll be 1,000 to 1,200
square feet."
The city provided grant money to extend West Worthington into Wilmore
in an effort to "help eliminate a piece of blight in Wilmore and
create affordable housing," Furman continues. "People who buy
there will probably have to live there at least five years before they
can capitalize on the appreciation. If they sell sooner, they will have
to pay a penalty. We want stakeholders in there."
Meanwhile, Kingston Flats is a three-story, 12-unit condo project
with two commercial spaces. It’s located near the trolley on the west
side of Camden Road, at the intersection of West Kingston. The homes
range from 950 square feet to 1,114 square feet and from $100,900 to
$265,400. The project features curved walls, 10-foot ceilings and
upscale kitchens that include concrete countertops and stainless steel
appliances.
On South Boulevard at Bland Street, developer Peter Pappas hopes to
start this summer on a large, mixed-use project that’s been on hold
because of flat market conditions. "The Manchester" will
occupy nearly six acres that front both South Boulevard and the trolley
line. As of late September, Pappas expected to build 70 condos, 260
apartments and about 25,000 square feet of retail space. The project
will have a trolley and light rail stop and eventually be the home of
the trolley barn, currently located at Tremont and South Boulevard. The
trolley barn was originally there in the early 1900s.
Retaining Historical Flavor
Gullette, executive director of Historic South End, sees several
challenges on the horizon for the area – implementing the PED
District, the rising cost of land and making South Boulevard more
pedestrian friendly. All of these things contribute to what he believes
is South End’s biggest challenge: retaining its character. "You
can’t recreate history," he says. "The atmosphere is
phenomenal with all the adaptive reuse of old buildings. That character
defines us. We have to go from a grassroots, funky, quirky area to a
district that advocates for things that preserve the area."
Condo residents Anne Knight and Betsy Magdall hope South End stays
tethered to its past, one of their reasons for choosing it. "We
like living in an area with history, but history that’s coming
alive," Knight says. "Not some old historic-register stuffy
place, but a lively, fun place finding new uses for old buildings.
"We like the feel of South End," she adds. "Women’s
intuition has been good to us, so we’re going with
that on this adventure, too."
Credit: Charlotte Regional Realtors Association magaine: Realtor
Reflections. With thanks. |
