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SouthEnd Midrise Projects


atlrvr

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^Sadly, the financing hurdle may be that it's a mixed-use project. Lenders today want guaranteed cash flow in the pro forma of a project. As such, nationally managed residential (apartments) and build-to-suit commercial (chain-store outlots) are viewed as lower risks to finance than any project with speculative commercial.

And yet Circle South End just sold for a new high per square foot for apartments, thanks partly to the inclusion of commercial. Of course, higher risk usually yields a higher return. But there's just that initial hurdle of financing a "riskier" project.

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Furman's project didn't include retail originally, and last I heard it was minimal with just the frontage on Camden being some retail in addition to the leasing office. The inclusion of +/-8,000 sq.ft. of retail shouldn't be a hurdle to get financing. I see your point, but it would be a very small percentage of overall NOI, so even if the lenders excluded the retail income in their underwriting, it wouldn't make the equity requirement so high that the deal no longer made sense. At this point, the current pipeline is likely a bigger hurdle in getting financing. In addition to what's already been announced and under construction in the South End; Junction, Silos, Fountains, Colonial, 330 W Tremont, 1225 PHII, 1200 South, Park & Kingston, Church & Summit, & Centro, which total ~2,400 units, there are 5 other projects that are out there (that I'm aware of) that are either under contract or already owned and are in the planning phase. I would be shocked if any of these actually materialize in the current cycle b/c I don't see how a lender can get comfortable with the pipeline sitting behind 2,400 units.

Living and working in the neighborhood, it's great to see and I'm excited to see the retail that follows all this residential. I've already heard a few rumors that there is some exciting retail coming to the neighborhood in the near future. Hopefully it materializes.

Edited by Prodev
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As far as Centro goes, I loved what I saw in the last rendering, and the night and day difference between it and the previous plan (with its street level pool fronting camden, ugh), seems encouraging that when its built it will prominently feature retail along Camden if not also along West. This is such a crucial site for the retail development of the neighborhood that I would rather see it just sit until something of that calibre can be built rather than rush to any lackluster plan.

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At this point, the current pipeline is likely a bigger hurdle in getting financing. In addition to what's already been announced and under construction in the South End; Junction, Silos, Fountains, Colonial, 330 W Tremont, 1225 PHII, 1200 South, Park & Kingston, Church & Summit, & Centro, which total ~2,400 units, there are 5 other projects that are out there (that I'm aware of) that are either under contract or already owned and are in the planning phase. I would be shocked if any of these actually materialize in the current cycle b/c I don't see how a lender can get comfortable with the pipeline sitting behind 2,400 units.

There are presently more 22 year olds than ever in US history. And in high-growth Charlotte, there are even more 20-somethings than your typical city. Call them Echo-Boomers, Millenials, or Generation Y, but thanks to demographics, all of these units will be absorbed.

Thankfully, the booming supply actually keeps rents from going up even more, especially for these few, walk-friendly locations in an otherwise car-centric Charlotte. People now pay a premium for walk-friendly locations, especially the "smart phone" generation.

Combine Charlotte's limited supply of walk-friendly, for-rent housing with Charlotte's extremely favorable demographics, and you have the perfect storm for greatly expanding the supply of urban apartments and still realizing rapid absorption.

Edited by southslider
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Not sure if this was discussed already but Nova's Bakery is opening a 2nd location where Laurel Market was on South Blvd! So exciting to finally have a good bakery in the Dilworth area! :)

That's amazing, but a french bakery just opened at East and South.

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Not sure if this was discussed already but Nova's Bakery is opening a 2nd location where Laurel Market was on South Blvd! So exciting to finally have a good bakery in the Dilworth area! :)

Sweet!!! I was at CVS the other day and I noticed some work going on inside. Goodbye La Brea at HT (though it too is tasty)!

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Not sure if this was discussed already but Nova's Bakery is opening a 2nd location where Laurel Market was on South Blvd! So exciting to finally have a good bakery in the Dilworth area! :)

The very late Observer piece on the new Nova's suggests that it will only be a coffee shop, no baking at this location. Bummer. But at least a coffee shop will fill a void and 24 hr operation will be a good fit for that area.

Oops, forgot link: http://www.charlotteobserver.com/2012/08/20/3467393/novas-opening-a-24-hour-coffee.html

Edited by kermit
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Hopefully Nova, Einstein, Crispy Crepe in Post and the new bakery near East & South can all coexist in the coffee shop/bakey genre.

Speaking of Crispy Crepe, I expect that it'll start construction soon now that Bite Your Tounge is up and running. Once World of Beer opened it didn't take too long for construction to start in the other space.

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Hopefully Nova, Einstein, Crispy Crepe in Post and the new bakery near East & South can all coexist in the coffee shop/bakey genre.

Speaking of Crispy Crepe, I expect that it'll start construction soon now that Bite Your Tounge is up and running. Once World of Beer opened it didn't take too long for construction to start in the other space.

can they not work on multiple spaces at the same time?
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can they not work on multiple spaces at the same time?

Just doesn't seem like that was how it happened. We knew Bite Your Tounge was coming before WOB was finished. And Crispy Crepe has had their window wrapping up for a while with no movement in and out of the space. So my guess is now that BYT is open its time for the final retail area to be finished.

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I'm was told that BYT actually ran out of most of its menu before dinner today. Not a bad start. Saw a menu at WOB tonight and it looks solid - believe I will definitely be trying them out before the week ends.

Also, re: Novas, sounds like they're doing a satellite location like Amelie's Uptown and they'll be sending food down from their home office. Amelie's Uptown works well with that model, except they're prone to running out of food.

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I ate at BYT yesterday for lunch.

The food was very good, but I was disappointed in the portion size. It was basically a large spoonful of rice with 4-5 pieces of shrimp and some creole sauce.

For $8 I wasn't expecting a heaping portion of shrimp, but I was still very hungry after eating what I got. Some more rice or a piece of bread would have gone a long way.

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I really like that intersection, and remember thinking how it always should have been there when they first had it as part of the CRISP investments coordinated with the Blue Line, but it was eventually cut from the budget as a future item. It makes it much easier to connect to Morehead, and gives easier access to the Carson Station for Dilworth and Dowd YMCA riders. Plus, it makes more sense in with South being turned away from a speed strip into more of grid street.

I'm not sure what is going on with the Simpson sight. That news release from Cambridge said they'd be under construction in spring 2012, perhaps they are waiting to see about the risk of overbuilding.

Just 2 months ago, they were still working on acquiring some of the ancillary city ROW land near the corner of Carson and Lynx, so maybe it is still moving forward, just slower than they hoped.

http://charmeck.org/city/charlotte/CityClerk/CouncilRelated/Documents/Agenda%20Attachments/2012/06_25_2012%20mtg/41%2006_25_12.pdf

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I notice the BYT signage today, but hadn't tried eating there, I will next time I'm by.

I haven't gotten a chance to bike down closer to New Bern lately because the Southline ripped out the trail alongside the blue line for a while during construction, but I noticed that the Colonial has quite a presence in the distance from South Blvd.

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By the way, this intersection did end up happening. Carson/Lexington and South Blvd is now a shiny new 4-way intersection, and Southend is already easier to navigate because of it! They also put in bike lanes for a short stretch of South at that location.

The city will also be installing it's first painted "Bike Box" at this intersection. It will effectively give cyclists prime position to be at the front of the traffic line. It will also be wired to detect the presence of a bicycle.

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Amazing the amount of work going on, it will completely change around new bern station.

3 projects in one shot!

http://www.clearskyimages.com/colonial-reserve-progress-072612/h1247271e#h13f24fd8\

And one isn't even showing!

http://www.clearskyimages.com/colonial-reserve-progress-072612/h1247271e#h19657405

I just wish more was going on with the 100 empty parcels along South Blvd.

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I hope that the parcels on South Blvd itself can continue to be commercial in nature, just with new buildings that are more urban and pedestrian in nature. If mixed-use is impossible in this environment, then I'd just as soon have them sit fallow until the economics catches up and these new residents start chomping at the bit for more retail and services. Maybe a few residential projects sprinkled in, though.

It is about time Long Animal Hospital got new facilities, although I hope their prices do not rise too much for their new debt. It is a shame I can't take my dog on the light rail though to get her there, I always need to borrow a car to go the vet (maybe I'll get a doggy carriage for my bike). For as many dog owners as live downtown, there isn't any vet.

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