Charlotte Residential Tower Rumors

[Skyybutter]

Trademark Tower

[uptownliving]

Now there are rumors of another condo tower of 17 stories just outside the loop on Hawthorne Lane at the Independence bridge. It will go where the currnent Party Time building is.

[Norm2]

Wow, another condo for midtown/elizabeth? There is already gonna be one at the target and home depot. i swear, all of south end, uptown, and midtown is gonna be wall to wall midrises and high rises by the time this boom is over with!

[monsoon]

[ElricSeven]

As long as prices exceed $250 sq/ft or more they will keep building them until the supply exceeds demand.  Then you will see a price drop in DT real estate and a slow down in construction.

<{POST_SNAPBACK}>

What's so key about $250 sq/ft? What about if the cost of the land they build them on and the construction materials goes up? You would expect the cost of the land to increase as it becomes more scarce. It sounds logical, but I'm not sure it is that simple of an equation. Especially if further development brings more retail and the cachet associated with a hot area like South Park and Ballentine. Condo developments there are costing $200 sq/ft even with an abundance of available land.

[uptownliving]

I don't know if anything is key about $250 sq/ft but obviously the downtown market can't support this rate of buildup forever. It may last a couple years...all depends on the economy.

[ElricSeven]

I don't know if anything is key about $250 sq/ft but obviously  the downtown market can't support this rate of buildup forever. It may last a couple years...all depends on the economy.

<{POST_SNAPBACK}>

I guess the question is whether the differential between the cost of building (which includes the land, materials and labor costs) and the price at which they can sell will be big enough for them to realize a profit. If they have really high profits right now, they could drop the prices on the condos to make up in volume what they lack in profit, which might be bad for current owners. More inventory, lower prices.

I guess my whole question was whether anyone knows what type of profit margin is driving this market. If it is really high, then we could be in for some heartburn. However, my understanding is that materials costs have been really skyrocketing, putting a floor on how low they could drop the price of new construction.

Okay, I know I'm rambling...

[uptownliving]

Steel prices have gone up...driving a lot of the cost of these high rises. And I don't anticipate steel prices going down anytime soon.

[dubone]

It is all much more complicated than we can list here. I think what monsoon was saying, is that if prices per square foot that people are willing to pay stay as high as Trademark's ppsf, then the boom will continue.

At some point, though, supply will start to exceed demand, and the resulting price competition will cause the weaker or costlier projects to go stale, like the Park did in 2001.

[BryanH]

CBJ Article

has anyone heard about a development by trammell crow co. at trade and caldwell streets that is supposed to include a residential component? it was mentioned in an article on the charlotte business journal website in the dec 31, 2004 week issue. the article is above. there's like two sentences about it and that's it.

[atlrvr]

Trammell Crow was granted a 1 year development option on the land.....it was originally thought that CATS would move their office to this building, but now they have decided to look for office space to purchase instead.....I have a feeling that TC won't excercise their option and the city will issue another RFQ.

[peaceloveunderstanding]

I got this email

Thank you for your interest in the 230 South Tryon Condos. We are completely sold out except for one unit. Due to the success of this development, Spectrum Properties has decided to announce another condo project in just a few weeks.

[SmellyCat]

I got this email

Thank you for your interest in the 230 South Tryon Condos.  We are completely sold out except for one unit.  Due to the success of this development, Spectrum Properties has decided to announce another condo project in just a few weeks.

<{POST_SNAPBACK}>

Yeah, that doesn't surprise me. When I came in to take a look see at the 230 S. Tryon offices a month or 2 ago, the sales rep told me that since they were just about sold out there, the developer would soon be working on another Uptown resi project, although told me no further details.

[Norm2]

Oh wow, damn! Let the speculations begin!

[ncguy06]

Another one!!!! Dang Charlotte rocks.

[atlrvr]

Well, it could be another renovation, or it could be the 300 S. Tryon site, or the site behind it on Church (those are the two parcels owned by Cornerstone).....if it was a renovation I would guess it to be 129 W. Trade St. (the 1950's building with wavy concrete sides and detached elevator tower)........

I'm going to guess though it's where the 300 S. Tryon office tower was supposed to go. I would really prefer an office tower here, but the good thing is that I think they will need a minimum of a $70M tower to make the numbers work, which translates into a 25-35 story tower (depending on the luxury level)

[dubone]

I hope they don't redo 129 w trade, though. That is another building that i initially hated, but has grown on me over the years.

I hope they build it off tryon on the church street site you mentioned. It will help pull residential momentum to the new park. I hope that 300 s Tryon site can be saved long enough for a tall office tower.

[atlrvr]

^wow.....these are my exact sentiments in all regards....

[skysdalimit]

Indeed, I agree with you all.

[UptownJ]

If they were to build something new and not redo a office tower to condo's I hope they go around the new park... I really want to see the area around the park and statium work into a nice high rise community. All we need is 2 or 3 nice sized projects to go around the new park and we'll be well on our way.

By the way... we should save tryon for office only

[peaceloveunderstanding]

yes, the park would be a great place to build some towers. I sure hope that is what happens.

[rockhilljames]

atlrvr, remember that an apartment building was orginally proposed by Cornerstone on the same block as 300 S. Tryon behind the proposed office tower.

Seems like a logical placement choice to me for a new project.

[AmericanUrbanDesigner]

By the way... we should save tryon for office only

<{POST_SNAPBACK}>

Please tell me you're kidding, right?

[Rufus]

i like the idea of building around the stadium area. greta views, close proximity to entertainment venues, and even a park. why havent they already considered that area. it seems like a logical place for develpoment.

[atlrvr]

Because Duke Energy (Crescent Resources) is holding the land.....it'll be a while before they are ready to sell to a developer and maximize their investment.