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SkyHouse Charlotte, Publix and 10Tryon Tower in 4th Ward

monsoon

By monsoon
in Charlotte

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KJHburg
KJHburg

Have not seen this new brochure with the dates of opening and construction all laid out.  Who is this 55,000 sq ft office anchor tenant is that Bank of America as rumored?   Very interesting and

atlrvr
atlrvr

Welp, they just applied for building permits today.

KJHburg
KJHburg

Looking up Church Street and those SkyHouses are really big when you look at them this way. Over 700 apartments in the 2 towers. 

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atlrvr Metropolitan Area

atlrvr

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Stated with no inside information other than seeing Planning Dept formally approved the lot sub-division plan for the site this Monday.

 

I do think that getting funding has been a hold-up on the project, but I do expect it to move forward.  It is possible they have needed to refinance loans construction loans into permanent debt on other projects to raise more equity for this one given the glut of apartments (hypothetically, you might need 40% equity to do this project in Charlotte, and only 30% in Raleigh). 

 

All that said, I think we are seeing an end to the apartment boom, with only a few more projects to break ground this year.

 

I suspect in 2014 we see:

 

SkyHouse

Woodfield Graham

Quarters at Morehead

 

If there is healthy leasing momentum on new projects/stable rents, maybe 4Q14 or 1Q15 we could also see:

 

225 N Cedar

Pollack project on Central at Louise

Pearl South End (recently discussed Morgan Group deal at South and Remount)

 

I'll throw out there Levine Apartments in 1st Ward as a wild unknown.  Theoretically he has enough assets that he COULD probably get financing whenever.  Just not sure if he will pull the trigger.

 

I do think SkyHouse is able to achieve a premium rent enough to justify the higher construction costs.  It's possible that they will wait to see how pre-leasing at Element goes before turning dirt.

 

Not to drag this off topic, but I suspect getting a hotel financed in Uptown is the easiest project to get done right now.  I would guess 3 hotels break ground in Uptown this year.

 

I doubt we see an office tower start this year, but 1 in 2015 seems like a realistic goal.

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dcharlotte Whistle-Stop

dcharlotte

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The apartment boom nationwide is done.  If you're not in the ground right now with foundation work wrapping up, you will deliver far too late and will be at the end of the supply wave. While downtown assets are doing much better than their suburban counterparts, the number of units that is coming to Uptown Charlotte is causing institutional investors to place their money in other assets around town. Why try and finance a construction project when you can buy a stabilized asset? The investment flows nationally are moving from construction to investing.  I have hope for this project, and some working of construction debt on other projects will likely enable them to get started on something.

 

The rumors of seeing this going big may be unfounded.  Dividing up the land so you can develop multiple parts independently is nothing new.  This is Uptown, one thing may get off the ground with the other portions sitting vacant for a decade or more.

 

The fact is that most people are still favoring South End and other locations from Uptown as a result of the rent premium for Uptown multifamily. Absorption has remained strongest in these areas throughout the current boom.

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CLTProductions City

CLTProductions

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The fact is that most people are still favoring South End and other locations from Uptown as a result of the rent premium for Uptown multifamily. Absorption has remained strongest in these areas throughout the current boom.

I think this can be seen in the Skye condos with the fact that the vast majority of the condos still for sale are 2+ bedroom.

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Green_man Hamlet

Green_man

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The apartment boom nationwide is done. 

 

Yes, generally speaking nationwide that might be true, but you really need to look at each market.  And to be honest, I don't really know the Charlotte market that well - maybe its stabilizing to low to normal growth?  But if you look at markets that are continuing their high growth trends (Raleigh, Austin, etc) the boom is not quite done.  Specifically just in the core of downtown Raleigh... about 600 units are under construction now and another 660 are breaking ground in March.

 

I would bet that Skyhouse Charlotte starts though.  They've delivered on each one so far.

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Guest

Guest

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By the way, I didn't include Glenwood South (our South end) and I didn't count the numerous proposed projects.  Only the construction-imminent ones. 

 

But yes, Charlotte's got a lot.  :good:

Not trying to one up or anything, just showing WHY people think its a bubble here.

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atlrvr Metropolitan Area

atlrvr

Posted
Posted

 While downtown assets are doing much better than their suburban counterparts, the number of units that is coming to Uptown Charlotte is causing institutional investors to place their money in other assets around town. Why try and finance a construction project when you can buy a stabilized asset? The investment flows nationally are moving from construction to investing.

 

I do want to quibble this point.  Institutional investors don't want to pay full price for stabilized assets if their view is new construction will put downward pressure on rent growth.  Building more units downtown isn't going to help revenue growth in stabilized uburban properties.Their investment cycle is 1) Buy Stabilized 2) Buy Value Add 3) New Construction 4) move on to something else, which is why I indicated hotels should finally see development dollars this year, and office next year.  In that spectrum, the biggest institutaionl investors are on the tail-end of #2 for hotels, and moving from #1 to #2 on office......no one here cares about industrial, but that has already moved to New Construction

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dcharlotte Whistle-Stop

dcharlotte

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I do want to quibble this point.  Institutional investors don't want to pay full price for stabilized assets if their view is new construction will put downward pressure on rent growth.  Building more units downtown isn't going to help revenue growth in stabilized uburban properties.Their investment cycle is 1) Buy Stabilized 2) Buy Value Add 3) New Construction 4) move on to something else, which is why I indicated hotels should finally see development dollars this year, and office next year.  In that spectrum, the biggest institutaionl investors are on the tail-end of #2 for hotels, and moving from #1 to #2 on office......no one here cares about industrial, but that has already moved to New Construction

 

Fair point, but most of the construction dollars in multifamily is flowing out of construction and into owning the assets as developers with institutional backing are moving onto something else. 

 

Green_man, while this is a national trend and you do need to look at each market individually, the rent growth you're seeing in Raleigh and Charlotte is unusually high for the markets. The amount of rent growth occurring with the supply coming online will far out perform the demand in these cities. Consider that buying a home in Charlotte in many areas of Charlotte is still very cheap with great access to jobs along many preferred growth corridors.

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HopHead City

HopHead

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Posted (edited)

Well, here we go... Looks like Tampa is the latest one to break ground on a Skyhouse tower: http://tbo.com/news/business/skyhouse-aimed-at-young-urbanites-20140204/

 

Still quiet here obviously. Though you have to appreciate the Tampa mayor's quote: “I want more, I want it faster, and I’m not losing any more kids to Charlotte, North Carolina,” 

Edited by wend28
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CLTProductions City

CLTProductions

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!!!!!!! woah! So I guess theyre just sticking with the original plan for now? Seriously can not WAIT for this to transform the skyline on this part of town. N Tryon resurgence.....GO!

 

So this will be about 300 ft?? Same height as BB&T/Catalyst?

Edited by Jayvee
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!!!!!!! woah! So I guess theyre just sticking with the original plan for now? Seriously can not WAIT for this to transform the skyline on this part of town. N Tryon resurgence.....GO!

So this will be about 300 ft?? Same height as BB&T/Catalyst?

Lol, the gran plan was all speculation, based on Intel about something happening with the seedy hotel, the site being approved for up to 650 units and the fact I overheard publix is looking for a spot to put up a grocery store downtown. Nothing more. Connecting the dots, of some convenient coincidences. There is still a open space along Tryon for future development.
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HopHead City

HopHead

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Posted

Take it with a grain of salt, but if you search "Skyhouse" on Twitter you'll see a bunch of tweets regarding that topic. One was from what appeared to be a construction worker/manager of some kind who said he just got to Charlotte to start on SkyHouse. So, perhaps construction really is imminent .. 

 

Back in Charlotte, to set up and start our 11th SkyHouse Project, in just over 2 yrs.

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