Crescent: Carson Southend (Enterprise site) S. Tryon x Carson MXD

[SydneyCarton]

Considering the strong demand for housing in SouthEnd, it would be nice if the developer increased the number of residential units, and decreased the office space so that this could start now.

[SydneyCarton]

Has the website for this project been posted?  If not, here it is:

https://www.carsontryon.com

 

Edited November 7, 2022 by SydneyCarton

[Reverie39]

Since Queensbridge and Carson renderings can't really include each other, we still haven't gotten a good look at what this area will feel like with both projects complete. I think it will be stunning, absolutely massive change in the Charlotte skyline.

[SydneyCarton]

1 hour ago, Reverie39 said:

Since Queensbridge and Carson renderings can't really include each other, we still haven't gotten a good look at what this area will feel like with both projects complete. I think it will be stunning, absolutely massive change in the Charlotte skyline.

I was thinking the same thing when I walked by yesterday.

I was also thinking that the transformation of this area near the John Belk makes a cap with a park over 277 a priority.

[KJHburg]

8 hours ago, Reverie39 said:

Since Queensbridge and Carson renderings can't really include each other, we still haven't gotten a good look at what this area will feel like with both projects complete. I think it will be stunning, absolutely massive change in the Charlotte skyline.

Riverside shows Queensbridge with the faded out Carson Southend tower from Queensbridge website 

[Reverie39]

13 hours ago, KJHburg said:

Riverside shows Queensbridge with the faded out Carson Southend tower from Queensbridge website 

Oh that looks incredible, I hadn't seen it before. This shot could be the core of a downtown of a small-mid size city, except it's just a small part of South End which isn't even the "downtown" of Charlotte. Amazing how huge this skyline is becoming.

[SydneyCarton]

[JRCLT]

Haven’t seen much of this project. I think they have the most illustrative brochure I’ve ever seen.

https://issuu.com/crescentcommunities/docs/carson_tryon_digital_brochure?fr=sYjg1MjM2MjQwMjE

The new renderings of the project also show better hidden garage which is great as compared to the older renderings!

https://www.carsontryon.com

Some Comparisons:

Older





Newer




The Residential part seems like it extends higher now or the deck got shorter I can’t tell, but it looks like the former is true. I think this is a nice mixed use project. I hope it gets off the ground.

[CharlotteWkndBuzz]

Hope the residents at The Crown apartments get a steep discount if they face that blank wall of the parking deck lol per the pic above. However, that blank wall seems ripe for a panthers mural considering the proximity to the stadium. Looks to be a translucent screening tho. 

Edited November 23, 2022 by CharlotteWkndBuzz

[JRCLT]

Hope the residents at The Crown apartments get a steep discount if they face that blank wall of the parking deck lol per the pic above. However, that blank wall seems ripe for a panthers mural considering the proximity to the stadium. Looks to be a translucent screening tho. 

Definitely ripe for a mural!

[KJHburg]

This marketing is very sleek.  Lots of virtual tours on that huge 18,000 sq ft open air terrace 10 floors or so up.  I hope they can get a anchor they have some good leasing people on it.   This is an excellent project! 

[SydneyCarton]

1 hour ago, KJHburg said:

This marketing is very sleek.  Lots of virtual tours on that huge 18,000 sq ft open air terrace 10 floors or so up.  I hope they can get an anchor they have some good leasing people on it.   This is an excellent project! 

KJ: How many Sq feet in pre-leased space do you think that this project and Queensbridge each require to start rising?

[DJ8hep]

Haven’t seen much of this project. I think they have the most illustrative brochure I’ve ever seen.

https://issuu.com/crescentcommunities/docs/carson_tryon_digital_brochure?fr=sYjg1MjM2MjQwMjE

The new renderings of the project also show better hidden garage which is great as compared to the older renderings!

https://www.carsontryon.com

Some Comparisons:

Older





Newer




The Residential part seems like it extends higher now or the deck got shorter I can’t tell, but it looks like the former is true. I think this is a nice mixed use project. I hope it gets off the ground.

This is a great find @JeanClt! That video was stunning to see how creative marketing a project can be! I did a little video render where I work and even that got some really positive reactions from our client!

This marketing is very sleek.  Lots of virtual tours on that huge 18,000 sq ft open air terrace 10 floors or so up.  I hope they can get a anchor they have some good leasing people on it.   This is an excellent project! 

Absolutely agreed!! I hope Queensbridge will do a video like this as well!

[KJHburg]

9 hours ago, SydneyCarton said:

KJ: How many Sq feet in pre-leased space do you think that this project and Queensbridge each require to start rising?

I would say 20% so around 120K sq ft or so.  Others may be able to answer the question better @atlrvr  they have a great funding partner Nuveen but I am sure they would require some sort of preleasing min.  

[atlrvr]

Preleasing requirements and equity contribution requirements have definitely come-up a lot in the last 6 months.  I would speculate at this point, you a developer probably needs 40% pre-lease and 40% of the construction cost funded in equity.  That's negotiable of course, and could depend on the strength of the tenant (i.e. Major Bank maybe 30%, while tech-firms 50%) and also amount of equity.  If there was 60% equity, you might be able to go full spec.

This project, with residential and hotel components, might actually be easier than straight office, as proceeds from selling development rights, or less rigorous equity requirements for the apartments/hotel can be used to partially offset the needed equity on the office portion.

As far their partner Nuveen, I'm sure availability of capital isn't an issue, as they have over $100B invested in real estate, rather they have to determine if the ROI (which decreases the greater the % equity required) is worth it, and if they feel comfortable with increasing office exposure (I would assume yes, but a lot of larger real estate investment managers are re-thinking how much office they want as % of their portfolio).

All that said, I suspect they have solid leads for 200k of space.

Signing anchor tenants is always a chicken/egg situation.  Tenants don't want to officially commit until they're sure the project will get built and deliver on time for their needs, but developers (and especially their lender) don't want to start construction until they're certain there will be committed tenants.

You end up with Letter of Intent (LOI) as the compromise, where the tenant will conditionally agree to sign a lease (based on delivery date, project quality/design stipulations, etc etc) and developers will use those LOI to convince lenders/investors they have real tenant interest.  All that said, there usually isn't an actual signed lease, especially during the pre-development phase, which is why you see projects rumored to have tenants in-place continue to market the space (contingency, seeing if they can get better deals, gauging demand for future projects, upsizing building, etc etc)

 

[SydneyCarton]

12 minutes ago, atlrvr said:

Preleasing requirements and equity contribution requirements have definitely come-up a lot in the last 6 months.  I would speculate at this point, you a developer probably needs 40% pre-lease and 40% of the construction cost funded in equity.  That's negotiable of course, and could depend on the strength of the tenant (i.e. Major Bank maybe 30%, while tech-firms 50%) and also amount of equity.  If there was 60% equity, you might be able to go full spec.

This project, with residential and hotel components, might actually be easier than straight office, as proceeds from selling development rights, or less rigorous equity requirements for the apartments/hotel can be used to partially offset the needed equity on the office portion.

As far their partner Nuveen, I'm sure availability of capital isn't an issue, as they have over $100B invested in real estate, rather they have to determine if the ROI (which decreases the greater the % equity required) is worth it, and if they feel comfortable with increasing office exposure (I would assume yes, but a lot of larger real estate investment managers are re-thinking how much office they want as % of their portfolio).

All that said, I suspect they have solid leads for 200k of space.

Signing anchor tenants is always a chicken/egg situation.  Tenants don't want to officially commit until they're sure the project will get built and deliver on time for their needs, but developers (and especially their lender) don't want to start construction until they're certain there will be committed tenants.

You end up with Letter of Intent (LOI) as the compromise, where the tenant will conditionally agree to sign a lease (based on delivery date, project quality/design stipulations, etc etc) and developers will use those LOI to convince lenders/investors they have real tenant interest.  All that said, there usually isn't an actual signed lease, especially during the pre-development phase, which is why you see projects rumored to have tenants in-place continue to market the space (contingency, seeing if they can get better deals, gauging demand for future projects, upsizing building, etc etc)

 

Do you have any predictions as to whether the Enterprise project or Queensbridge will secure a tenant and break ground first?

[CLT Development]

On 11/23/2022 at 9:11 AM, SydneyCarton said:

Do you have any predictions as to whether the Enterprise project or Queensbridge will secure a tenant and break ground first?

I'm pretty sure Queensbridge has a 500K Tenant. 

[SydneyCarton]

47 minutes ago, CLT Development said:

I'm pretty sure Queensbridge has a 500K Tenant. 

You definitely have good info, so I think that QB clearly has the green light.

Your Instagram account is great by the way.

Edited November 24, 2022 by SydneyCarton

[KJHburg]

3 hours ago, CLT Development said:

I'm pretty sure Queensbridge has a 500K Tenant. 

I sure it hope it is a US based Bank.  

[SydneyCarton]

Maybe these guys can anchor Crescent’s Enterprise site.

 

 

https://www.google.com/amp/s/amp.charlotteobserver.com/news/business/banking/article266544321.html

 

 

Toppling Bank of America’s crown in Charlotte? Jamie Dimon wouldn’t rule it out. 

The chief executive of JP Morgan Chase, the country’s biggest bank by assets, stopped in the city on Thursday, visiting with employees at a Chase branch in uptown Charlotte.

The branch — coincidentally located across the street from competitor Bank of America’s corporate headquarters — opened in early 2020. It was Chase’s first location in the city.

 

Now, the New York-based bank is up to 17 branches throughout the Charlotte region, with three more slated to open in 2023.

“We’re going to double down,” Dimon told employees. “We’re not gonna stop.” 

JP Morgan Chase has about $3.4 trillion in assets— but here in Banktown, it punches well below its weight, controlling only 0.12% of the deposit market. 

 

 

Edited November 24, 2022 by SydneyCarton

[SydneyCarton]

3 hours ago, SydneyCarton said:

You definitely have good info, so I think that QB clearly has the green light.

Your Instagram account is great by the way.

How much space does US Bank presently occupy in Charlotte, and is their lease expiring soon?

[KJHburg]

14 hours ago, SydneyCarton said:

How much space does US Bank presently occupy in Charlotte, and is their lease expiring soon?

well they have a couple floors in 201 South Tryon where their uptown branch is and several floors in Truist Tower.  I think we discussed this before and came up with like 200K sq ft of space.  But I am not sure.  All I know is Truist Bank does not want a competitor in their Truist bank owned building.   

[SydneyCarton]

13 minutes ago, KJHburg said:

well they have a couple floors in 201 South Tryon where their uptown branch is and several floors in Truist Tower.  I think we discussed this before and came up with like 200K sq ft of space.  But I am not sure.  All I know is Truist Bank does not want a competitor in their Truist bank owned building.   

That’s good news!

[CLT Development]

19 hours ago, SydneyCarton said:

You definitely have good info, so I think that QB clearly has the green light.

Your Instagram account is great by the way.

Thanks! I wish I still had as much time for it as I used to! Theres about a twenty scoops rolling around in my head.

Edited November 25, 2022 by CLT Development

[SydneyCarton]

39 minutes ago, CLT Development said:

Thanks! I wish I still had as much time for it as I used to! Theres about a twenty scoops rolling around in my head.

I look at your Instagram every day.  It’s a great resource.  Thanks for all of your effort to keep us informed.