Despite economy, South End shows momentum
By Tess Gadwa, Charlotte Business Journal
For a historic district, the face of South End is quickly changing.
Despite the downturn in development across the city, the area is maintaining much of its momentum. With the upcoming expansion of trolley service, the desirability of close-in living and its inventory of industrial chic architecture, South End is demonstrating how such advantages appeal to developers and their customers.
The assessed tax value of the South End Business Improvement District has nearly doubled in recent years, rising from $232 million in 2000 to $441 million in 2003, although revaluation boosted the latest figure.
One of the largest projects under way is a 162,000-square-foot, mixed-use urban village developed by Boulevard Centro. The Village at South End will occupy the block at South Boulevard and Magnolia Avenue, across from Atherton Mills. Boulevard Centro principal David Furman plans a mix of retail, office and housing.
Construction began in late April; so far, Furman has sold 55 of 113 condominiums. The development will also include 62,000 square feet of restaurant, retail and office space. Crosland has signed on to convert a nearby barrel-roofed warehouse into a showroom.
"Mixed use creates a more exciting environment to live and work in," says Furman. "The clientele that we're attracting enjoys having a coffee shop in the building. We look at it as an amenity."
Three major residential projects -- Park Avenue Condominiums, The Arlington and South End Square -- have opened in the past year.
A speculative retail project named 1620 South is rising next to Intro Furniture on South Boulevard. The 13,500-square-foot building, a joint venture between The Boulevard Co. and Freeman, McClintock & Wells, began construction in February and should be complete by early fall.
"It's high visibility. We're try to fit in a niche -- urban development with ample parking," says Jim Zanoni, principal at FMW.
Farther along the horizon, a large, Phillips Place-like residential development will likely accompany the renovation of the historic trolley barn at South Boulevard and Bland Street. Pappas Properties and Crescent Resources are expected to form a joint venture to develop one of the largest high-profile lots in South End.
Meanwhile, the pioneer of South End development, MECA Properties, is expanding its portfolio on Camden Road. Kingston Flats condominiums and two commercial units are slated to open this fall. Camden Square Village West, with its industrial lofts and corrugated metal siding in primary colors, is well under way. Twelve of its 30 units have been completed, says Tony Pressley, president and chief executive of MECA, and 10 of those 12 units been sold.
MECA has also purchased the former Spaghetti Warehouse building and added it to the Design Center of the Carolinas complex. David Byron's Best Impressions Catering has renovated much of the restaurant as a demonstration kitchen. SouthEast Appliance Distributing recently opened a showroom in the space for its Viking stoves and other products.
"We're continuing to target the greater design industry. We have our share of vacancies like everyone else, but we've written over 40,000 square feet of leases in the past 12 months," Pressley says.
In some ways, South End has been a victim of its own success. Rising land prices are pushing development inward onto smaller parcels and outward beyond the edges of South End's original tax district. At the same time, prime real estate, including the corner of Camden Road and Park Avenue, remains vacant.
"Some of the remaining vacant lots, the prices are exorbitant. It's been priced as if light rail is running today. That's been a real barrier," says John Stamas, incoming president of Historic South End.
Kevin Gullette, the outgoing executive director of the organization, notes that "as land prices keep rising, it will present challenges" for additional development.
Rising land prices help explain why the area's periphery is gaining developments.
Beyond the official tax district boundaries are Boulevard Centro's Wilmore Walk, a 47-unit townhome project at West Worthington Avenue and South Tryon Street, and Citispace at South Tryon and Tremont Avenue, a project from Citiline Development and Ventures. Citiline's three-building office and showroom complex will encompass 40,000 square feet and focus on businesses connected to construction, such as suppliers, vendors, wholesalers, designers and contractors.
Even more distant, but still billed as a South End development, is 3030 South. This condominium, retail and office complex from Heath Partners will be built along the light-rail corridor at South Boulevard and New Bern Street.
"The spillover effect is flattering," says Gullette, "but our tax district is not expanding."
Pressley is working with key property owners, community leaders and land designer Richard Petersheim to develop a plan for Camden Road. Because of Camden Road's proximity to the trolley, and because it's not a through street, the road has natural advantages for pedestrians and could emerge as the main street of South End.
Pressley is not discouraged by the downturn in development that has slowed growth in the city. He remembers when "people would look at what's now called South End and say, 'You don't go there.' The redevelopment and reinvestment process knows no boundaries. Success breeds success."
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