Third Quarter Sparkled Downtown

There is an article in the Charlotte Business Journal from the Charlotte Regional Realtors assocation that addresses the increased activity in the Third Quarter within the region. The results of 2012 over 2011 is quite amazing:

       1.Median Sales 2011 = $210,000; 2012 = $207,250
       2.% of asking price 2011 = 93%; 2012 = 95%
       3.Median Days on Market 2011 = 137; 2012 = 90
       4.Units Closed 2011 = 37; 2012 = 64
       5.$ sq ft 2011 = $213; 2012 = $221

The article was intimating that we are now in a sellers market. While I would not go that far, it is clear that activity has increased by 42% and prices are rising. Inventory remains near 10 year lows, interest rates remain under 3.5%, all systems are go.

If you are considering listing your property, please call me (704) 236-7119 and I will do a full analysis for you.

The time might be right.

Charlotte's Best Spot To Build

It Probably Will Not Look Like This

On the heels of the successful selling of the renovated Metropolitan LIfe Building turned into condos, a bold announcement was made for a new development across the street, 300 South Tryon. It was to be a mixed use facility, commercial and residential on top.

Pre-sales were brisk as people were lining up to buy these units, many which would have looked out over the then proposed Third Ward Park. The setback from Third Street was to have been wide enough, 25 feet, to allow for a grand entrance to the park.

We all remember what happened in 2008 don't we?

So now it is 2012, and we have been the site of the Democratic National Convention. The North Carolina Music Factory has proven to be a hit. Epicentre, despite the developers difficulty has been a success. The Romare Bearden Park in the Third Ward is under construction, and across from the park, BB&T Stadium is changing the face of Graham Street. Indications are that there will be a hotel out in Left Field, and Childress Klein has designed a 21 story apartment building to flank The Catalyst.

The location of the 300 South Tryon bulding is absolutely prime for development.

From a people point of view, there will be somewhere around 1,000 people living within 1 block of the park. They all have friends, so maybe double the number of people who will have an interest in that area. It is safe to assume that other developments will follow.

But getting back to the spot where 300 South Tryon holds, it will have frontage on Tryon as well as frontage on the new park, and the emerging Third Ward, the best of both worlds. It is for this reason that I believe it will be the next major project in Charlotte.

Virtues Of Positive Thinking

Let me first say this is totally copied from a blog report I get weekly.  I have contacted the source and have asked to be able to link this directly to my blog and have not heard back yet. 

The reason I am posting this here is that the views and research that is being done here mirrors my beliefs and is very well stated.  I did not want to take credit for it directly.

Signs of positive growth are springing up all around us.  The only fear we are experiencing is being put there by our political representatives. 

Read this and enjoy.

Virtuosity Sometimes our timing is uncanny. Or perhaps it is because we present so many opinions, a few coincidences are likely to happen. Regardless of the reason, a few weeks ago we started focusing on the elusive virtuous cycle. We concluded that the cycle must start with real estate and we indicated that there were signs that this might finally be taking place. Well, a few days ago, this quote appeared in a Wharton publication: Is this the start of the long-awaited and elusive housing recovery -- one that would bring a stronger economy overall? Or is the market just taunting us as it bumps along the bottom? 'It's for real. This is absolutely for real,' says Susan Wachter, professor of real estate at Wharton. The market, she says, is poised to enter a 'virtuous cycle' where positive trends will spur more positive trends. 'This market recovery will continue,' she added.  (See more from article in Real Estate News below.) That is not to say that one person's opinion solidifies the deal. However, it appears that others are taking notice of the rebound that is taking shape. If we want confidence, positive remarks in the media from experts such as Susan Wachter are very important -- certainly more important than our comments. And we certainly do need additional confidence as we build another leg in the virtuous cycle. The employment report released on Friday showed that the recovery is continuing but we could still use more momentum. The drop in the unemployment rate from a high of just under 10% to 7.8% in a period of just under two years is significant. The road to an even lower unemployment rate must be underpinned by a stronger real estate recovery as part of the virtuous cycle. Perhaps it has already begun.   By the less-demanding standards of the past few years, the latest housing figures look pretty good. On September 25, the Standard & Poor’s Case-Shiller Home Price Index showed a 1.2% price gain in July compared to a year earlier. Prices have risen for three consecutive months. The National Association of Realtors (NAR) reported on September 26 that sales of existing homes had risen by 9.3% in August, compared to a year earlier, and that the median price of existing homes sold was up 9.5% over the past year. NAR and Case-Shiller use different methodologies. For the 12 months ended in July, sales of newly constructed homes were up about 25%, though the total was still only about half of the 700,000 units considered healthy. Experts are especially impressed that prices of the least-expensive third of homes lead the gains, going up a full 1% between June and July. Those homes had received the worst drubbing in the recent housing market collapse. Is this the start of the long-awaited and elusive housing recovery -- one that would bring a stronger economy overall? Or is the market just taunting us as it bumps along the bottom? 'It's for real. This is absolutely for real,' says Susan Wachter, professor of real estate at Wharton. The market, she says, is poised to enter a 'virtuous cycle' where positive trends will spur more positive trends. 'This market recovery will continue,' she says, predicting that rising prices will prod potential buyers to buy before prices go up more. That demand will nudge prices up, drawing in even more buyers. 'I have been optimistic about this market for six months or a year,' she adds. Several factors have combined to strengthen the market, Wachter says. Extraordinarily low rates have allowed millions of homeowners to reduce their monthly payments by refinancing. Moreover, Wachter notes, unemployment, while still high at over 8%, is not rising, and fewer workers feel the threat of layoffs. The stock market has been very strong, making those with investments feel wealthier. Worries about a shadow supply are easing. 'People are less likely to walk away when they see prices rising,' she says. Source: Knowledge at Wharton More than 20 million rental households spent more than 30 percent of their income last year on rents. In fact, more than half of those renters spent at least half their income on housing, “severely burdening” their finances, according to Census data. Rents have been on the rise the last few years as demand surges. In the past seven years, median rent payments have soared nearly 20 percent from $728 to $871. Some markets have seen double-digit increases in rent in just the last year, such as in cities like Houston, Seattle, and the San Francisco Bay area where strong job markets are fueling high demand. 'More demand with little new supply means rising rents and shrinking vacancies,' says Jed Kolko, chief economist with the real estate Web site Trulia. Source: USA Today Investors have a new target in real estate: undeveloped land. They're snatching up undeveloped land heavily discounted in bankruptcy proceedings from developers and banks that foreclosed on the builders once they ran out of money for their projects, Reuters reports. The investors then resell the land for up to 20 percent or more returns on their investment. Or, in a buy-and-hold strategy, the investors partner with homebuilders to develop the land. 'We are coming out of the mother of all housing cycles, and residential land is the best way to play the ultimate recovery,' Michael Barr, a Paulson & Co. portfolio manager, told Reuters. 'Land is the highest-returning component of the homebuilding equation.' Investors find the most attractive land to buy is a parcel that already has all the planning permissions in place to start construction. Otherwise, the approval process for building on the land from local and state agencies can be costly and timely. Source: Reuters <

Adding To The Rental Market

Investors would often purchase multiple units in a building, and then resell them before taking ownership, a neat trick during that time.  When the recession hit, many investors found themselves with excess inventory and no buyers to take it, they then turned to the rental market.

Others who purchased found themselves out of work as a result of the recession, and were left with having bought high, and now having to sell low.  The problem with that is that often it means that the seller would have to bring cans TO closing, not a very attractive proposition for most.

Some developments such as 210 Trade Street stopped construction, and others such as 300 South Tryon, and One Charlotte never started construction.  Then there is The VUE, a condo project that has shifted to a rental project.  The result of that is that from the over 400 units per year just 5 years ago, we will see 67 units from the SKYE condos hit the market in 2013.

Developers are finding that funding sources for new construction condo projects is very difficult to get,while multifamily projects do not share the same problems.  Rental rates in general are rising, and developers are taking advantage of that market.

All that is forcing the existing condo market to become the only choice for many looking to buy downtown today. 

Three separate projects are either currently underway,or will be shortly.

First, the Fountains. This development is taking the triangular shaped piece of land on the corner of McDowell and Stonewall Streets across from the Blake Hotel and developing it into over 200 apartments that will have an incredible view of the city skyline.

Second, another 250 unit apartment development at the intersection of Johnson & Wales Way and Fourth Street near the Doubletree Hotel.  Work is underway to realign the roads to allow the project to go forward.

Third, previously mentioned here is the Childress Klein 21 story tower with 250 apartments next to the Catalyst and overlooking Romare Bearden Park.

All exciting, and all happening now.

Why A Walkable City Is Important

Fresh off the highs of the DNC, it is important to find out what people thought of our city.  Chris Matthews of MSNBC has become a great fan, and many of the great newspapers of our country all carried favorable reports of Charlotte.

We, who live here, recognize that a large part of the success of the calm convention was delivered by an influx of police that left some people feeling claustrophobic.  But is also exemplified the case for a walkable friendly city, one that Charlotte has become.

I have often told people the biggest difference between living in the suburbs and living in the city is that in the suburbs, when you are driving down a street, you would beep your horn at a friend in their yard or a passing car you recognized.  In the city, when you are walking down the street, it is much more likely that you will walk over to that friend and talk.

Here is a link to an article by a budding urban planner as to her experience and contrast of city and suburban life.  Go here.  It is a good read.

View From Home Plate

"It's a beautiful day for baseball", as Joe Tait, the former announcer for the Cleveland Indians used to say for every game.  But for today, he would have been correct, it WAS a beautiful day for baseball.

Around 10:15 people started gathering at the corner of MLK Jr Blvd and South Graham Streets though not for a baseball game, but to witness the ground breaking ceremony for the BBT Field.  I was surprised, and excited at the turnout of well over 500 people.  I had an opportunity to talk with Parks Helm for a few minutes.  I couldn't tell if he were wiping the sweat from his brow having walked from his office in One Wells Fargo, or a tear in his eye from finally realizing a dream that was years in the making.

For over 10 years I have been running into Parks at various meetings concerning the relocation of baseball back into the center city.  I have an admiration for someone who has stayed focused for so long on this one project.  Parks is now out of the political limelight, I did not see his name in any publication reporting on the groundbreaking.  That said, if not for Parks and his efforts over the years, yesterday would not have happened.

Ballparks today, beginning with Camden Yards in Baltimore, are being built to be part of the urban fabric of a vibrant downtown.  The list is extensive, Progressive Field in Cleveland, CoMerica Park in Detroit, Minute Maid Park in Houston, etc.  Cellular Field in Chicago, home of the White Sox, ironically the parent team for the Charlotte Knights, was the last ballpark build in the "Donut" tradition, and it is like a fortress, not inviting.

The attached picture is from behind Home Plate and gives your an idea of the view that will greet the people in the stands.  The view is also representative of the Club Seats I have secured behind home plate, perhaps you can join me for a game some day, but the purpose of this story is to illustrate that BBT Field will become an integral part of the downtown scene, you will even be able to see into the park from Mint Street as you walk by.

Then, Suddenly It Was Over

I showed up to welcome my 6:45 am volunteer staff this morning at the Residence Inn and found out that all the shifts today had been cancelled.  I was not surprised, I knew the later shifts were cut, but thought we would be there for the mass exodus.

As I was scooting over to the hotel, it was just getting light, sort of.   There was a fog that hid most of the buildings from view.  Gone were the orange cones funneling traffic, gone were the fences surrounding non-convention buildings, gone were the cops from every corner, the motorcycle cops, the bike cops, etc.  The city was remarkably clean!

The hotel staff greeted me with a sense of relief that I haven't seen since I was draft age and a friend had received a deferment from serving.  Kind of like the battle was over and they had survived. 

The delegation at the Residence Inn was from Colorado.  I have a sister there, and we exchanged stories about Pearl Street Mall, McGuckins Hardware, Phanthom Canyon, etc.  That was fun.

And, now it is all over.

Charlotte will go back to building itself as an important city in the south, the convention certainly helped with that.  Restaurants and residents will return to there daily activities, buses will return to their schedules, life will return to normal.

But it will not be the same normal.  The world has seen that we have a bright, clean, prosperous city.  They will have met some of the 15,000 volunteers who's primary function was to smile and answer or get answers for our guests, a friendly city.  All these little acts will leave an impression. 

Charlotte is one of the fastest growing cities in the country, partly because of the businesses located here, partly because of our geographic location, and partly because we do not have the same degree of infrastructure decay that many northern cities have.  The convention will increase the rate of growth going forward.

Thursday, A Celebration

The buzz in the city all morning touched the speeches last night.  There was a sense of empowerment that is unmistakable.  Delegates left the hotel early for meetings with excitement.

Many were dismayed at the change from the stadium to the arena.  That meant that 65,000 people, myself included, would not hear the President speech live.  A heavy rain hit the city mid afternoon, around 4, but the evening was clear.

The speeches this evening were predictable, but Obama was great.

Tomorrow, everyone leaves.

Wednesday, A Day Of Changes

Everything is routine now.  People know what to expect in terms of delays, and my volunteers can anticipate the questions they get and are ready with helpful answers.

Communications with the Host Committee, the group sponsoring the volunteers is getting better.  Though a few days late, I am getting the information on my volunteers that is helpful. 

The weather remains an iffy distraction with intermitten rain, mostly a light thin type of rain falling for 15 minutes.  It reminds me a lot of the type of rain that falls in Florida. 

The Colorado Delegation has been kind enough to provide us with tickets to get into BankofAmerica Stadium for the Presidents acceptance speech.  Originally I did not think that I would get in, but now I am looking forward to being part of it.  In a strange way it reminds me of my brother Ron.  Back in 1963, he and some of his friends went to Washington DC for the funeral of John F. Kennedy.  I have always remembered that he was there.

Well, that now is changed.  The changing weather has made the outdoor speech too chancy, and a decision had to be made for logistical reasongs to move the speech into Time Warner Cable Arena, effectively reducing the number of people involved from 80,000 to 20,000.

The final note is the speeches given by the Bus Nun, and Bill Clinton has the whole city abuzz.

Tuesday, More Than A Chance of Showers

As Tuesday started, things began to turn into a routine.  People were getting used to all the police in the city and the delays and road closings.  Some thinges changed almost hour by hour.  The Secret Service has been in overall charge of all activities, and one might think that the confusion was planned not to give anyone a heads up as to how to "attack"!

All of my volunteers showed up for the Tuesday shifts.  Most of the day there was little for them to do other than talk to eachother.  The Colorado Delegates were in meetings mosts of the day, and then were getting ready for the opening ceremonies of the convention.

The protestors were active, but not totally disruptive, really a reflection to the incredible amount of security present. 

The tremendous increase in activity in and around downtown is a portent of things to come as Charlotte continues to grow as a city.  Traffic in the central core of the city will get more constrictive, forcing many to choose public transportation as opposed to fighting the crowds and high prices for parking.  There is little doubt that the city will end up this way.

Monday, A Day Of Celebration

Monday morning started early for me as I welcomed my volunteers at the Residence Inn by the BankofAmerica Stadium at 6:45 am.  I am not sure what surprise me more, that I was awake, or that anyone showed up! 

The volunteer presence consists of 4 people each shift, and there are 3 shifts per day.  The volunteers are generally over 50, and delighted to be part of the convention in any way they can.  Truly a feeling of patriotism.  As I explain their jobs to them, to a person they are concerned that they do a good job.  Upon leaving, I give them my card, and encourage them to think for themselves, but not to hesitate to call me for any issue.  I live close and can be there quickly.

Our marching orders are to smile and to respond to questions or issues from a delegate with "I will take care of that for you.".  There are a host of resources for us to use.

The day was built around "Carolina Fest" which was open to the public.  It consumed most of Tryon Street and was well attended.  There is also a large tented area with an exhibit called "The Presidential Experience" which contains a replica of Air Force One, the Oval Office, presidential cars, personal items from 12 presidents, etc.  Downtown was abuzz with people yesterday. 

James Taylor was holding a concert at the intersection of Trade and Tryon that was cut short by a cloudburst, a lingering effect of Hurricane Isaac.   Drenched, I retired to a friends and whipped up a bolognese sauce and had a great pasta dinner.

Sunday A Day Of Police Presence

Getting up on Sunday morning was a bit of a challenge after working until midnight at the NCMF for the opening media party.  It started early as well, 6:45 am.  As Captain of the Residence Inn, I felt the need to show up to welcome the volunteers who agreed to sit at the Host Committee table and answer questions for the guests.

I found out late Saturday Night that I was also scheduled to be a volunteer myself at The Dunhill Hotel, and was scheduled to be there at 6:45 as well!

Yikes!  Fortunately, it was light at both locations, and I was able to accomplish that.

I had a brunch with a friend, and she commented to me how eerie it felt to have the police presence that is everywhere in the city.  I don't know the numbers but there are cops here from DC, Richmond, Chicago, and other nearby locales as well. I have seen stranger Police vehicles than ever.  I have seen cops swarming on bikes in packs of 12, Motorized dirt bikes in packs of 12, and the big escort motorcycles with their red-white-blue strobes.  There are swat teams present, there are other cops on foot in Keflar.  Quite a site.

My night job was to unload and load delegates as they came into the city for parties at the museums.  The process was not as organized as I would have liked, but we accomplished our duties.

It is a fun time to be in Charlotte.

Opening Night. DNC All Hale!

Getting ready for my first volunteer shift at the NC Music Factory and the sky opened up.  Not only a ton of rain, but 10 minutes of hale as well.  Must be Romney!


Picking up where I left off, I arrived at 4 pm to be part of Event Transportation, unloading and loading busses for the event.  A light rain persisted until about 8:30, so we were all issued rain ponchos.

The logistics for the event were clearly planned for a non-rain scenario, and many of the Media who were attending the party were a bit miffed to have to walk through the light rain.

As with any event, the departure of the guests was not as well spaced as the arrival.  At one point we had over 400 people standing around and waiting for a ride, and no busses.  Once a group of busses arrived, it was near pandamonium controlling everyone trying to rush to get on.  After about 45 minutes, we were able to get everyone away, and surprisingly without serious trouble.

Coming Soon To An Intersection Near You

The Charlotte Observer published an article today about land being cleared on the southeast corner of McDowell and Stonewall Streets.  The article, read here, said it is being done to market the property.

Well, as this picture clearly shows, plans are pretty far along for the site. 

It is a strange piece of land, nestled between these two streets and the Belk Freeway on the back side.  The rendition of the planned building is making good use of the Skyline views that should be quite stunning from there.

What I like about it the best is that it is the beginning of the absorbsion of the vacant land along Stonewall Street.  Much of this land was assembled during the reconstruction of the interchange that was part of the NASCAR Hall of Fame.  Indeed, with Romare Bearden Park and the impending construction of the Charlotte Knights Stadium in the Third Ward, this could also be the start of the entire Second Ward reconstruction as designed by Michael Smith in the grand land swap!

In view of the Four Wards that make up downtown Charlotte, we are starting to see signs of life:

1. First Ward.  Levine Properties is nearing on three different projects that are planned to be underway by Summer of 2013.  This is in addition to the construction of an underground parking deck under the First Ward Park between Seventh and Eighth Streets, Brevard and the Light Rail line.
2. Second Ward.  The construction of the apartments indicated above on the far east end of Stonewall Street will be countered by a potential office and apartment complex on the southeast corner of Stonewall and Tryon Streets. 
3. Third Ward.  The park and stadium will be shadowed by a Childress Klein 21 story apartment building on the corner of MLK, Jr Blvd and Mint Street.  Additionally, with the stadium, a hotel is planning to be constructed between Graham and Mint on Fourth Street.
4. Fourth Ward.  Grubb Properties has indicated that they will be developing an apartment building on North Church Street between Tenth and Ninth Streets.

Get ready to see the construction cranes once again.

How The Housing Market Will Recover

CNNMoney published an article illustrating that home values have risen for the first time in 5 years, go here to read the entire article.

We are starting to see that same trend in the downtown Charlotte market as well. 

There are fewer properties on the market than there have been in 10 years.  Ten Years!  It is no wonder when you consider how the value of property has eroded due to inflated prices and a diminishing market.  The only people who were putting property on the market were those who needed to sell.

The big change in this market is that buyers, buoyed by stability in their personal situation coupled with low prices, and low interest rates, are coming back into the market.  YTD 2012 downtown properties are selling for slightly more than 96% of the asking price while the same time period of 2011 showed that selling price to be slightly less than 95% of the asking price.  22% of the properties sold this year were at or above the asking price.

Realtors will tell you that there are often multiple offers coming in for listings.  These activities will drive up prices.

Now for the "800 pound gorilla in the room", foreclosures!  Actually that should be foreclosures and short sales.  There is a good amount of these properties that are selling, and a bigger amount that await being put on the market.  It is a clearing out process that has to happen. 

The difference today is that there are buyers, both homeowners as well as investors, who look for these financially distressed properties to provide them with avenues for financial growth in an otherwise slow investment market.

So, stay tuned, or better yet call me, 704-236-7119, to take advantage of the recovery!

Downtown Charlotte Sales Gain Momentum

In stark contrast to the past 4 years, downtown sales are running ahead of last year to the tune of 11% while sale prices this year are lagging 2011 by -1.1%.

Additionally, there are fewer properties available, 113, than there have been for over 10 years.  I am a big believer in the law of Supply and Demand, and the trend clearly shows that housing prices are set to begin to increase.

In the past week alone, I wrote 4 contracts that all met with multiple offer scenarios for the properties, and all the contracts went to other buyers!   It is not something I am happy about, but it is reflective of an increase in buyer activity in this market.

The map shows a graphical representation of where people are buying in downtown Charlotte this year.  The majority of activity is clearly in the Fourth Ward.

With interest rates still at historic lows, and prices still near bottom, the time to buy, or even invest, has never been better.

When Will The BBT Baseball Stadium Begin?

The political posturing has pretty much ended.  The Knights, have arranged financing, have found corporate sponsors and founding partners, they have released renderings of the new stadium on the corner of Martin Luther King Jr. Blvd and South Graham Streets, and have received endorsements from both the city and county governments.  Jerry Reese not withstanding, the next step seems to be shovels in the ground.

Not so fast!  The construction must start by October 1, but several things will happen first.

The DNC is forcing a relocation of the Transportation Mall from Brevard and Trade to Mint and Third Streets.  Here is a release from CATS:

CATS is moving the transportation center Sept. 3-5 to a temporary location at South Mint and Third streets -- and bus routes will change because of that.
From late July through August, CATS will conduct a series of transportation fairs in uptown buildings, at the current transportation center and at certain LYNX stations. Attendees will learn how buses will be rerouted during the DNC and information on shuttles between the LYNX Blue Line Carson Station to the temporary transit center.
Read more here: http://www.charlotteobserver.com/2012/07/18/3389700/transit-fairs-will-detail-dnc.html#storylink=cpy

So, nothing will happen until after the convention, but once that happens, look out!  Fourth Street will be widened between Graham and Mint to accomodate 2 way traffic on that stretch.  Once widened, the existing branch of Third Street will be removed.  On the heals of that, the Virginia Paper building will be razed to make a contiguous block from MLK Jr. Blve to Fourth, Mint to Graham.  Then the pile driving and site preperation will begin. 

By next summer at this time, it should be looking pretty much like a stadium, no seats yet, and maybe no light poles yet but the shell will be there. 

Excting times are on their way.

Updating The Bike Stations

The sample period of Charlotte B-cycle was a tremendous success! Here are the numbers from Thursday, July 12 – Sunday July 15:

Close to 300 people sampled the Charlotte B-cycle program over the 3 and a half days. We had 35-40 bikes in the system at any given time.

Memberships through today:

· Annual – 46

· Daily – 210

· Total – 256

The demographics of ridership was very diverse in all ways. Those who signed up through Sunday received a free bike helmet. Helmets will also be on sale at Charlotte B-Cycle “Hub” at the United Way Gymnasium at 3^rd and Brevard for $10, which is our cost.

Now, the system is off line so that we can build the other 18 stations. We have not announced when the full system will “Go Live”. We anticipate end of July, first of August. It depends on the construction, installation and testing schedule for the other 18 stations.

Please check out the Facebook page and website: http://www.facebook.com/CharlotteBCycle or www.CharlotteBCycle.com for information. Folks can get more information and sign up for Annual Memberships during this next two week period on line or by visiting the Hub.

The construction schedule: three stations went in successfully today at Presbyterian Hospital (Elizabeth Avenue), Levine Avenue of the Arts and Third and Tryon (Wells Fargo Plaza).

Two Of The Bike Rental Stations

By the Seventh Street Station Market

By the Omni Hotel

Well, now we know two of the Bike Rental Stations.

BBT Ballpark From Graham Street

Just a quick note.  I received some renderings from a friend showing perspectives of the new ballpark that have not yet been seen.

Enjoy this view looking east from Graham Street towards the city.

Wine Tastings At The Public Market

As many of you know, when Reid's closed their Seventh Street Station location, the wine tasting group I belonged to moved to The Historic Dunhill Hotel.  It has proved to be a good move.

But now, The Public Market that has taken the former Reid's site has added a wine vendor, Bond Street Wines.  They held their first tasting last Thursday evening, and had a nice crowd show up. 

Their wine selection, while not as broad as Reid's, contains some recognizable labels as well as some specialty labels that they import themselves.

It has been 2 years since I last sat in that building and enjoyed a glass of wine, and it brought back nice memories.  But those pages have been turned.

The Public Market is slowly gaining momentum.  Additional anchor tenants are coming in and some of the existing tenants are gaining broad support.  While the acceptance of the Market will hinge on repeat customers, those customers will only return if they can appreciate the value of a Market like this.

The Public Market is trying to condense decades of familiarity that other Public Markets around the country have developed into a few years.  The success of this Market will help to further develop a positive growth for our property values.

Housing Market Recovery

Go here for an article in the New York Times last week that talks about the recovering housing market.

Signs here have been clear all year, and most of my fellow Realtors will concur.  There are several things in the NYT article that I would like to highlight.
          

"But roughly six years after the housing market began its longest and deepest slide since the Great Depression, a growing number of experts and people who actually put money into housing believe the end has come. "

              

"The trend is clear in the data. The widely respected S.&P./Case-Shiller index reported earlier this week that sales prices for existing homes rose in April for the first time this year. Several other measures, including a seasonally adjusted version of the index, show that price increases began in February. The pace of housing construction has increased. And the National Association of Realtors said Wednesday that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010. "

The population has continued to grow while few new homes have been built.   Basic indicators of market health that bulged during the bubble, like the ratio of housing prices to income, have returned to more normal levels.

      

“All bets are off if anything happens to the economy, but apart from that, I think the fundamentals look better than they’ve looked in 17 or 18 years,” said Richard K. Green, a professor of real estate at the University of Southern California.

The number of homes for sale has been falling for more than a year, according to the National Association of Realtors. Some owners are waiting for prices to rise; some of them must wait because they are underwater.  Mr. Niece, a Minnesota real estate agent, said he and his partner had seen their book of listings decline from about 120 properties to 70 properties, about 45 of which already are under contract.  “I have buyers every single day complaining that they can’t find houses,” he said.

Go and read the entire article, but the points are clear.  Prices are down but stabilized; Interest rates are lower than anyone can remember; Inventory is low; Buyer demand is rising.

 We need listings!      

Bike Sharing Stations

Bicycle Sharing Station In Paris

First Charlotte began to put in EV Charging Stations at several locations around downtown, including the lot across from Rock Bottom, the Government Center Parking Deck, the parking deck for Discovery Place and in front of Starbucks in the Independence Building.  Certainly a big leap forward for a new technology trend.

Now word is out that an old technology, bicycles, will be finding a home in downtown and surrounding suburbs.  Mary Newsom broke it first on her blog, read it here.  While the pricing and functionality are still to be defined, there is a good chance it will be in place prior to the DNC in September.

I went out and found the Zoning request for these bicycles, see here for the zoning request.  When it gets that serious, you know it is coming.

This is important for Charlotte as a vacationing destination for many reasons.  People coming to the city to visit are less likely to try to explore nearby suburbs if they have to drive.  Where to park, how to get there, etc.  Additionally, riding a bike up Queens Drive, one of the prettiest streets in the city, is much more enjoyable if you are not going 50 miles an hour. 

It is also just a good way to get around for sporatic needs.  As a non-car person, I can see myself grabbing a bike riding to Great Harvest on Kings Drive for some fresh bread, and returning the bike to the station.  I only pay for what I use.

We certainly are not in "Old Charlotte" anymore.

Caught In A Time Warp

The economy continues to gather strength, and property values have stablized.  In the June 27th issue of the Charlotte Observer there is a story that speaks to the fact that housing prices have risen for the second month in a row.

This comes as little surprise.  There are fewer properties available on June 27th (108) than there have been for 12 years.  This lack of supply coupled with a rise in demand (there it is again, supply and demand) is beginning to force prices up.  Of the past 9 transactions I have been involved with, 6 have had multiple offers.   From a sellers standpoint, that is encouraging.

The pressure on financially distressed property has also lessened.  Many banks have developed creative programs in an effort to keep people in their homes, and Short Sales are taking the place of Foreclosure activity by a significant amount.

What is also happening is that developments that have been caught in the recession are emerging owned by new companies at a significant reduction in pricing, and they are being agressively marketed to fill up the empty spaces.  Properties such as Ro28 in NoDa, The Garrison in the Fourth Ward, Bloc 90 will soon be marketed, The Park, now Skye, is being completed and available at attractive prices, and the grand daddy of them all, The VUE, has been purchased out of foreclosure for slightly over $100 million.  That is approximately $220 a square foot.

Couple the lack of existing inventory with an increased appetite to purchase with banks easing credit restrictions with these developments caught in a Time Warp and you have the making of a new "Gold Rush".

City Council Goes Yard!

With relief pitcher Jerry Reese on the mound, and a generally tea-party infused group creating a ruckus, city council took a mighty swing and approved a financial structure that will allow the Charlotte Knights to actually become the CHARLOTTE Knights!

Using a strange metaphor, Council Member Andy Dulin claimed:

“This deal has been massaged and massaged,” Dulin said. “We have squeezed more wine out of the rock.”

I, for one, would like to find one of those wine producing rocks!

So, the situation now is that the Knights have found a sponsor along with founding partners, and have begun to take reservation for the private luxury suites, and 40% have been reserved.  My belief is that these will be hot tickets.

The task now for the Knights is to finalize their financing for the construction of the park.  Construction needs to be underway by October.

The first thing that will happen to form the land that will become the site of the stadium will be the elimination of the Third Street connector, also clearing way for the eventual move of the Greyhound Bus Terminal to the south side of Fourth Street, and the clearance of the site for the new Amtrak Station. 

I call that a pretty good squeeze!

Bottom Of The Ninth, Tied Score, Bases Loaded

I know it seems like I write this article every month, but things have reached a fever pitch (pun intended) for the new BBT Knights Stadium.

Rendering of the new Knights Stadium

First is was BBT announcing that they had come to a long term agreement for naming rights for the stadium.  Then Piedmont Natural Gas announced that they were becoming a Founding Sponsor of the stadium.  Then plans surfaced for Childress Klein to build a 21 story apartment building on the corner of Martin Luther King Jr. Blvd and South Mint Streets.

All of a sudden the concerns of this area becoming a dead zone are melting away.  The prospect of having nearly 600 people within one block of the stadium does that.  The rumor mill is also abuzz of a hotel to be built in the vicinity of the park / stadium.  Ideal for out of town visitors to come for games.
The new rendering for the stadium shown here is pretty dramatic.  The undefined buildings in the general area are meant as placeholders for impending development.  Tie this burst of new development in with the Duke Energy Center, the Museum Complex, Ally Bank Headquarters, and The Catalyst and the changes are incredible. 

This will be augmented by the construction of the new Amtrak Station and Commuter Rail terminal at Graham and Trade and it almost looks like a totally new city. 

There is a legend that Charlotte got the moniker Uptown back in the late 70's when people didn't like to talk about "down things" so in spite of the flight of retail out of the city, boosters started to call downtown "Uptown" to give it a more positive sound.

With this current expansion coupled with expansions in the First Ward around the new UNCC Classroom Building, and Second Ward around  The Madison and Skye and soon Uptown will mean the crossroads of Trade and Tryon while other downtown areas will give birth to other identifying names.

All this will increase the density of downtown Charlotte and help to raise property values.

How Can You Build This Overnight?

Charlotte is a city that is rushing to have everything.  The vision of Hugh McColl of Charlotte becoming a 24 hour a day city was a bold vision, and one that is actually happening.  Pedestrian traffic on the downtown streets is heavier than it has ever been, and that is steadily increasing.

People from all over continue to move to Charlotte and call it home.  Current estimates point to our employment levels approaching the high water mark of 2008, certainly a sign that we are recoving. 

A goal that Charlotte has, lead by Center City Partners, is to develop a Public Market on Seventh Street at the site of the former Reid's downtown.  Rushed to open in December of 2011 due to contractual obligations, the market has seen some modest, very modest, success. A new Grand Opening took place a few weeks ago, complete with events, new merchants, and great food.



Cleveland's West Side Market

But the problem remains how do you instill a habit into a population that has other habits?

As Charlotte is made up of a lot of people from all over, many of us have visions of what the market should look like.  My particular vision is from Cleveland's West Side Market.  I recently came across an article in the Cleveland Plain Dealer (go here for the article) celebrating the 100th year of operation.

The article contains pictures and statistics and graphs and simulated models and stories from  the patrons and vendors over the years.  One can't help but read the article and want to be there. Every trip I make to Cleveland includes a trip to the West Side Market.

The point of this article is to show that they have a 100 year head start on us.  They have had their good times and bad times.  They have seen their neighborhood change several times, and they have had 100 years to develop it. 

My hopes are that 100 years from now someone will be talking about our Public Market in the same light.  The key to making that happen is to go to the market and patronize it.

Welcome To The Neighborhood

The news on the street is that Childress Klein has drawn construction permits to begin an apartment project next to The Catalyst on Martin Luther King Jr. Boulevard.  This originally was a site that Novare, the developer of The Catalyst, had planned a 39 story condo/hotel project before the recession.

Planned Childress Klein Apartments

The Catalyst, from all information I can gather, is a rented out building.  I have worked with several rental clients recently that indicated that they could not get into the building.

This new project will be more modest, 21 stories 392 units, all apartments.  The location of this building puts it on the west end of Romare Bearden Park, and effectively sitting at the foot of Poplar Street as you walk south from the Fourth Ward.  It should be a stunning site.

It will also sit just off  the right field stands of the proposed Knights Stadium.  The importance of this is that it will underscore the growing contributions to the tax base that will be energized by the construction of the stadium.  This increase in tax revenue will encourage the Charlotte City Council to reexamine the request for assistance from the Charlotte Knights.

Considering that 5 years ago, the only activity that took place in this section of downtown was 9 to 5 parking during the week, and about 10 tailgate parties for football games at BankofAmerica Stadium.  Now there will be more than 1,000 people living there full time.

Those numbers will attract merchants, most notably restaurants and bars.  But it will also start to peak the interest of hard and soft good merchants to reconsider a downtown location.

As Pink Floyd said best, "All in all it's just another brick in The Wall".

The VUE Is Out Of MLS

In the next stage of the saga that is The VUE, all listing have been pulled from the Multiple Listing Service that Realtors use to look for properties.  This normally means one of two things; the project is being repriced; the project is being converted into rentals.  Here are my thoughts on both.

Repricing.  Without having exact numbers to work with, I have made some estimates to use for projections.  Assuming there are 408 units in the building, and assuming a number of units at similar sizes, and assuming that the new owner did in fact secure the debt for $100,000,000, my math tells me that the purchase price by the new owner is around $220 per square foot.  It would not be inconceivable that the new for sale price could be in the $300 per sq ft range, down from the initial $535 per sq ft.

Please remember these projections are based on assumptions that are probable, but not confirmed. 

Rental.  It is a hot rental market, and the new owner could certainly price the units at market rates and do very well.  Current rental availability in downtown Charlotte is pretty low, and the units available either lack amenities, or professional ownership. 

My projection for a final decision is mid June.

Should the new owner decide on selling the units, I believe there would be a rush on the building.  The immediate effect would be to put a damper on other resale activity in the downtown market, certainly during the first few months, perhaps even through to the 1st quarter of 2013, but the building would fill in fast.

Should the new owner decide on rentals, again I believe there would be a rush on the building, but not as intense. 

In either event, the sudden onslaught of people into the Fourth Ward of downtown Charlotte will have a serious impact on city living.  Additionally, lights on in the building for the DNC will make for some dramatic TV shots. 

Whatever the outcome, the near term impact of this building is about to be felt.

Big Deal For Charlotte

Example of a Multi Modal Facility

Charlotte is lucky to have Jerry Orr!

He is legendary for his almost dictatorial control over the operations of the Charlotte Douglass International Airport.  He is to the airport what Hugh McColl is to city building.

Today, the Charlotte Observer printed this story about the beginning of construction of a multi-modal facility located between two runways at the airport.  It is something that many of us will hardly notice as it is far from the public view.  The construction will take several years, and when it is completed, Charlotte will have a state of the art distribution yard that can mix rail, ship, truck and air cargo.

I have written elsewhere concerning the widening of the Panama Canal, and the implications of the markets on the East Coast that will now have direct access to shipments from Asia.  Charlotte stands to directly benefit from that.

Charlotte also is within 600 miles of the majority of East Coast populations centers.

This facility will also serve to create jobs and expand growth in a non-financial industry, further broadening our employment base.  It will serve as a catalyst to companies looking to relocate headquarters and businesses here.

On a more one on one basis, the relocation of the shipping facility from its current location on North Tryon covering about 40 acres just north of downtown will open that area for future growth.  This acreage will sit on the LYNX Light Rail expansion to the University area.

It will also eliminate hundreds of tractor trailer trips through the downtown area, lessening the wear and tear on our roads, and making the city more pedestrian friendly.

Jerry Orr is not the only person who made this possible, but his single focused management of the airport has kept its operations separate from city involvement. 

Thanks Jerry.

Regional Growth And Charlotte

The flurry of articles concerning Ballentyne's investigating seceding from Charlotte to create it's own municipality seems misguided.  Instead of shattering this region into parts, there is a clear trend to build up "Citistates" to wield economic power.

A recent symposium focused on Metro Regionalism, go here to read the report.  The author cites 8 reasons why Regionalism is clearly the building trend for economic growth.  Reading through that list, one cannot help but feel that it could be a definition of Charlotte.

The development of the Multi Modal freight yard at Charlotte Douglass International Airport will pay significant returns as the Panama Canal widening nears completion and the East Coast Markets are reachable by super tankers.  Put this together with the $1Billion infrastructure improvements that the airport is doing in addition to the freight yard and it is even clearer.

The potential merger of American Airlines and US Airways will also make Charlotte more of an international city.

The continued flow of companies relocating their headquarters here is clearly a reflection of the quality of life here, and that quality continues to get better with the cultural improvements such as our museums, performance venues, and restaurants that are taking advantage of our city center.

The aggressive and far seeing transportation plan are the early stages of a regional system that could make Winston-Salem, Spartansburg/Greensburg, and Columbia bedroom communities of Charlotte.  These models currently exist in the Northeast, and can be replicated here.

I recently met a couple staying in Charlotte for a brief visit from New York City.  We talked about the housing market here as compared to New York, and the general consensus was that prices are close to 7 times higher for the same space. The difference is that it is not the same space, New York is an economic powerhouse, while Charlotte is in the early stages of that journey. 

The continued following of that trend will push towards those type of prices and increase all of our property values.

Increased Sales Activity Is Real

It is coming back fast, there is no mistaking it.

As of this writing, there are 63 condos in downtown Charlotte that are under contract, that is huge.  There are only 118 condos currently on the market.  Now if I were to use the logic that the local media has been using for the past 4 years, I would say that we have less than a 2 month supply of condos based on this activity.

Truth is that it does not really work that way.  As the available properties begin to sell off, others who have been waiting for the market to return will put their properties up for sale.   The market will find it's balance.

If you are thinking of buying, the time is now.   Prices will begin to rise because of this activity, and interest rates will follow.  The time is now.

If you are thinking of selling, be careful, and price your property appropriately.  As the market comes back you may be pleasantly surprised.

Opening Day 2014 Is Getting Closer

The Charlotte Business Journal is reporting this morning that BB&T has come to an agreement with the Charlotte Knights for naming rights to the proposed Third Ward Stadium.  Go here to see the article.

This is Home Plate for the new stadium

You don't have to go too far to see that I am a big supporter of downtown baseball, and that I have been predicting that it will become a reality.  This latest news is no guarantee that it will happen, but it sure makes the likelihood of it happening pretty good.

Charlotte City Council is voting tonight on the staff recommendation that the city supports the stadiums efforts with an $8.5 million dollar investment in the future growth of the near Third Ward area.  A huge emphasis is being placed on the additional investments that should be following the construction of the stadium and the completion of the park, in fact, most of the money the city will commit will come from future incremental tax revenues coming from the surrounding properties.

For anyone who has been in Charlotte as long as I have, since 1996, the area where the ballpark will be erected has been a barren wasteland, with little interest for growth potential.  That is all about to change.  See my previous posts about not only baseball, but also the Romare Bearden Park.  This will jump start other projects in that entire area.

The economy is definitely heating up, and the investments in the downtown area continue to grow.  All this activity will raise existing property values.

Again, it is not a done deal, but it sure feels good.

Opening Day April 2014

The stars appear to be aligning for the proposed Charlotte Knights Baseball Stadium to be built in the Third Ward of downtown Charlotte.

The first piece of news was the fact that the Knights have achieved the goal of getting two corporate sponsors.  While they weren't publicly named enough was divulged to convince the county that they had met that first milestone.

There was some speculation that the Knights were in negotiation with Duke Energy for the naming rights to the stadium, and with the proximity of the stadium to Duke's concentration of buildings, it would not surprise me if that is one of the corporate sponsors.

The second piece of news is the Charlotte Chamber of Commerce officially supporting the plan that the stadium will deliver significant development and opportunities in an area that does not produce much tax revenue. 

The third piece of news is that the staff is recommending that the city support the efforts to build the stadium to the tune of $9 million dollars.  While this is less than the Knights requested, it represents a significant positive.  The Charlotte City Council will vote on that later this month. 

Jerry Reese has also filed another lawsuit to try to block the stadium.  His past 5 lawsuits were all lost, and his 5 appeals of the lawsuit also lost.  The most significant effect of these lawsuits was the delay in moving forward with this project.

The construction of the Romare Bearden Park is underway, and the entire feel of the Third Ward is changing.  Take a walk down the now two-way Mint Street and you can feel the possibilities building.  As this neighborhood develops, all property in downtown Charlotte will enjoy a renewed increase in property values.

A Discussion About Regionalism

The Red Line, Commuter Rail to Mooresville, will it be built?

This is a tough question, and one that can stifle the regional growth of Charlotte for years.  Some of the towns along the way seem reluctant to chip in, and Norfolk Southern is playing hardball about its right of way.  Many are complaining that the line will be too little used to be worth the investment.

These issues seem short sighted in light of this article by Robert E. Lang, an author who writes about Mega-Politan areas.  His work points to the fact that metropolitan areas in the United States are only trailing metropolitan areas in China and India in terms of density.  He also points out that our country is shifting into regional alliance that will dictate future growth, and that infrastructure within that region must be supported by the region in general.

While he does not talk specifically about the Carolina's as a region, it is not a stretch to see this region running from Raleigh through Charlotte to Atlanta, and perhaps including Columbia.  In a region like this Charlotte stands to be the hub of activity, and a vibrant plan to handle rail transportation is imperative.

The Red Line is just the start.  I can see commuter rail running to Greenville and Spartanburg as well as Columbia.  Going forward, rail will be as important to Charlotte as the airport.

Downtown Charlotte - A Center For Education

Raleigh-Durham envy, many in Charlotte suffer from that disease.  Just look at the lead that area has over Charlotte when it comes to Higher Education, Chapel Hill, NC State, Duke just to name a few.

Charlotte has slowly been planning to make a name for itself in education.  Downtown Charlotte has added Johnson & Wales, UNCC Uptown Classroom Building, Northeastern University and the Wake Forest Graduate School in just the past 15 years.  Tack on to that Johnson C Smith University just up Trade Street on the west side, and CPCC on the east side of Trade Street.

Recently announced is the impending addition of about 150,000 sq ft of classroom space at Gateway for the young Charlotte School of Law in anticipation of a much larger move by that organization.  Queens College is slated to take the current Federal Courthouse located on Trade Street by Mint and develop their own Law Degree.

Our hospitals are also petitioning the state to allow the formation of a Medical College in Charlotte.  This is a lot of activity all going on in a short time period.  As this growth takes place, it will contribute to the rise in property values in the downtown market.

We Have Passed The Bottom

Did you time it as well as you timed the stock market?  Didn't think so.

The driving force over the past 4 years has been fear.  The markets were tottering, people were running for cover, the government, being the only adult (?) in the room tried to help us get through, at least help big business get through, and we all lived in fear.  Fear of layoffs, fear of dwindling markets that cut into our compensation packages, fear of the unknown.

As markets began to shrink, the speed of the shrinkage was increased by fear.  As they began to get better, fear again popped up with talks of a double dip.

Things did start to get better, and here in Charlotte, a bit sooner and stronger perhaps than other areas.  Still, fear of buying or selling too soon kept many from doing the right thing for them at that time.  So everyone began to wait for the bottom.

It has passed us by.

The road to recovery is not a steep angle, but it is moving positive.  As a realtor I see it almost every day, more buyers shopping, banks lending, companies hiring.  We have hit bottom and are on our way up.

In the housing market, we find that there are fewer properties in the downtown market available for sale than at any time in the past 10 years.  If you read this blog you know my favorite law is that of Supply and Demand.  According to that law, if your supply is inadequate to meet the demand for it, two things can happen, prices rise and / or supply increases, sometimes both.

For the first time in quite a while, there is talk of interest rate increases.  The accompanying chart illustrates a quarter point rise in rates and what it will do to monthly payments and overall interest payments. 

Rates are rising, prices are beginning to rise, we have been to the bottom and survived.  Now it is a matter of taking advantage of rates and prices before they rise to a stabilizing level.  There are good deals available in this market but they are not as many as there was just 6 months ago.  New property will be added to the market as we progress, but those properties will begin to reflect a stronger market and prices will rise.

In 2000 the average $ per sq ft in downtown Charlotte was $151; In2011 the average $ per sq ft was $214.  At the peak of the market in 2006 the average $ per sq ft was $309.  Several things drove the prices that high.  Courtside, Fifth & Poplar, The Avenue, 230 South Tryon and TradeMark all came on the market in the mid 2000's at the height of the market. 

A pre construction boom price of $272 per sq ft was achieved in 2005, and I believe that will be the stabilizing price.  It may take several years to get to that level but that will be an achievable and sustainable level to reach.

If you are a buyer, consider those variables and make your decision as to when the right time is for you.