Wine Tasting At The Dunhill

I didn’t think it would take too long to find another spot to keep our weekly Wednesday wine tastings, and a likely candidate has been found.
Following quickly on a story in the Charlotte Observer about the Dunhill Hotel becoming a great “Boutique Hotel”, Craig Spitzer, the General Manager, has agreed to carrying on the tradition started by Reid’s.
This past Wednesday was our first attempt and it appears that not only did we enjoy it, but The Dunhill enjoyed it as well, so for the next several weeks we will continue to meet there.

Ongoing Thoughts about The VUE

As we are now in July, we are probably between 30 and 60 days of the first scheduled closings in
The VUE.
It has been a long road for this project to get to this point. The developer has changed, the sales team has changed several times, there has been a walk off by the general contractor and there have been zoning concerns on several fronts.
This project was borne back in 2005, just as the downtown condo market was entering into its high point. Fifth and Poplar was nearing selling out at a rate of $345—$375 a square foot, and plans for additional developments or actual cranes were to be found everywhere downtown.
Everything seemed to be lining up for The VUE. One of the most unique concept was the inclusion of bio scanners to use fingerprint identification instead of fobs! Those of us who use fobs on a regular basis can attest that a thumb print is a lot cooler, and you always have it with you. The finishes promised to be unsurpassed in the city, and the views were all good, even over the “Green Expanse”, that is Elmwood-Pinewood Cemetery to the rest of us.
The developer insists that there is somewhere around 60% of the units under contract. That would equate to around 240 units. Many of those units sold are tentatively cash sales. It will change the nature of the lower Fourth Ward.
Some owners have expressed concerns that property appraisals may be difficult to justify the sales price. This remains to be seen as no appraisals have taken place.
This will truly be an interesting transition from a large work in progress to an occupied condominium, the tallest in North Carolina.

Positive Signs

As the recession starts to recede (not fast enough!) Charlotte continues to enjoy announcements of companies relocating, or expanding jobs in this market. The exciting thing is that not all of them are in the financial industry.
Last fall we learned of Husqvarna, Seimens, and Ally Bank. This spring we learned about Freightliner, Red Cross, Jo-Mar Spinning, Citco Funds, Morgan Stanley, USBank, Babcocks & Wilcox.
Several contacts I have in City of Charlotte Economic Development have hinted that there are others in the pipeline as we move forward.
Wells Fargo’s community banking president for the eastern region, Laura Schulte, has indicated that the overlap of duplicate jobs is done, and that there are actually people in San Francisco who are eager to move to Charlotte from the West Coast! Who would have thought that!
These are all positive signs that Charlotte will emerge from this recession stronger, as our core businesses are again expanding and we are diversifying our employment base to help avoid future dependence on a single industry.
Additional expansion is taking place with the UNCC Uptown Classroom Building, continued growth of Johnson & Wales University, and discussions about Johnson C. Smith creating a High School on its campus.
All these indicators will bring additional people to this area. These people will need a place to live, and I have already seen buyers are returning to the markets. Property values will begin to rise as the financially challenged properties are removed from the market.
As the supply of available housing decreases, and the demand of people moving to this area increases the only course is for property values to go up

Wow! It is really gone!

A friend of mine pulled me aside in early May and asked me if I had heard anything of Reid's closing their doors. I was shocked, and told him that I had not, but would find out.

I asked Pam Richards if what I heard was true, and she confirmed that it was.

Slowly the word got out, and we began the countdown. It was not initially apparent, but slowly the shelves started thinning out. Then the wine racks became threadbare. People who no one ever saw before began to shop there and commented on how nice it was, and what a shame it was it was closing! Where were they before?

The plan was to close on Saturday, June 26 at 8pm. I planned my day to be on hand for the official locking of the doors. I didn't want to get there too early, so I planned my arrival for around 6:30. I found a hand-written sign on the door that the store was closing at 5!

It's been about 10 days now, and oil is still leaking in the gulf, we're still in Afghanastan, the market is still crazy, and life goes on. I have rediscovered evening aerobic classes, and in general am getting more work done during the day.

There will never be another place quite like Reid's.

What About Home Improvements?

In my May Newsletter, The Marsoun Report, I wrote that buyers are increasingly looking for more updated living space. Traditional space is becoming less attractive in comparison to Contemporary space. Plantation Shutters are less attractive as compared to Blinds that can be raised or lowered. Stainless Steel appliances are almost a requirement. More upscale brands, Bosch, Thermador, SubZero, Viking are becoming the norm.

Many people who read my Newsletter have commented to me about that situation.

The truth is that many of us (excluding me) will purchase a car every 3 or 4 years, spending upwards of $25,000 on an asset that immediately begins to depreciate, while we maintain the same home for almost twice that time. Upgrading your property will usually will appreciate the value of the property. Additionally, you will have the benefit of those upgrades.

Reid's Will Exit Seventh Street Station

When I decided to move downtown in 1998, one of my concerns was where will I buy my groceries. Fortunately, that is when Reid’s opened the Seventh Street Station store. It hardly seems like 12 years!
Effective June 30, 2010, Reid’s will no longer anchor the corner of the parking garage, they have elected to not renew their lease. Talk about a shocker!
Selling real estate in downtown Charlotte was made somewhat easier because of the special attention that Reid’s gave its customers; home delivery; special orders; house accounts; best meat department in the city; bakery and catering; excellent wine selection and a convenient wine bar. The uniqueness of these services made Reid’s stand out amongst many competitors.
More than these services was the friendly nature of the employees. Each time I walked into Reid’s I was greeted by everyone from whoever was sweeping the floor (sometimes the owner) to Chuck and Pam Richards. These are probably stories that each of us could repeat as Reid’s touched us all. I often felt as though I spent more time at Reid’s than at home.
Weekend cooking classes became very popular, and Heidi Billotto would always fill all the seats. Reid’s would offer the students a 10% discount the day of the cooking class, always a very popular reason for taking the classes.
The wine bar itself became a regular stopping place for people waiting for traffic to die down before heading home. The Wednesday and Friday wine tastings allowed me to market myself as a realtor and still enjoy the friendship and camaraderie of the patrons, and of course, the great wines that were offered.
Special cooking tips from Bucky or Mac helped me to become a better cook as well.
All this changes on June 30, 2010.
My first inclination was to try to fight the change, start a grass roots movement to keep things going the way that they have for the past 12 years, but that does not seem to be a possibility. Reid’s is not planning to disappear, but reinvent itself. All things are changing, the way we read books, the way we get our news, the way we look for phone numbers, how we bank (anyone still have a passbook?), and grocery shopping is also changing. The plan is to relocate in an area that will allow the business model to produce a profit for the company. One thing that will not be affected by this change will be the gift business, gifting@reids.com. In these times, those who can change and adapt will succeed, those who cannot, will not!
Pam and Chuck are concerned for their employees, many who have been part of the Reid’s family for generations. Other locations are being considered, and while the size of the store may change, the customer service will not as many of their employees will continue on.
Let’s make these last two months something special for Reid’s and all of us.

Molly McPhersons Will Occupy "Big Daddy's"

New restaurants are beginnig to open. The Observer had an article on Sunday 4/11/10 talking about Jim Nobles new restaurant called "Kings Kitchen", and promises of a version of "Roosters" downtown by the end of the year.
Another planned opening by another group is Molly MacPherson's. "Our plans are to welcome you to our newest pub early July 2010! We are planning to take the space formerly occupied by Daddy's American Bar & Grill on the corner of W. 5th and N. Church. We hope it will become your new favorite place to hang, grab some delicious food, and enjoy a drink or three."
With Ri Ra's and Connolly's just up Fifth Street, we will have plenty of places to watch soccer on the big screen!

Signs Of A Turnaround

We have all been looking for positive signs that the economy has changed enough to feel better about our property values. Well, the 1st Quarter may have brought that to us.
The enclosed chart shows the sales history for 2009 vs 2010. During the 1st Quarter of 2009, only 8 properties were sold compared to 20 properties in 2010.
The size of the units sold in 2010 represents about a 10% increase in size, and an equal increase in average sale price.
An encouraging fact is that properties are selling at closer to the original asking price.
To be sure, some of the property sold represents foreclosures, short sales, or other repressed pricing from prior years. These sales are a necessary part of an “inventory clearance” process, not unlike what you might find in a department store at the end of a season. The sooner these properties are gone, the sooner we can return to a normal selling environment.
The good news is that Buyers are returning to the market. I have had a significant uptick in showings on my listings, even those listings that are labeled either contingent or conditional! This is also reflective of Sellers taking an aggressive view of the value of their property based on the current market conditions. The chart above shows that Sellers are getting 95% of their asking price, while the average $ per square foot has gone down. Clearly this is a market driven change. This market condition will not assume the same type of 6%—8% appreciation of prior years.

The New Urban Century

This picture was taken from the intersection at Seventh and Tryon. It is a prime examples of what Michael Smith is talking about in an article published in the April 1st edition of CNN Living.
The picture is the recently completed renovation of St. Peters Episcopal Church with the looming presence of The VUE Charlotte behind it. The contrast of the 108 year old building and the still unfinished VUE speaks volumes to Charlotte being willing to keep what is good, and add to it.
If you look the other way from this intersection, you will see the rising structural support beams for the UNCC Uptown Classroom Building. It is about 3 floors from completion, and the visual impact that it is having on the city is incredible.
I believe that much like the changes that have taken place since BankofAmerica created the Gateway Village area, UNCC will pull development towards it, further expanding downtown Charlotte, and increasing property values along the way
"As you look at the cities that are going to thrive in the next century, there's a belief that we're entering the urban century," says Michael Smith in an article in USAToday. "There's a new urbanism that's not about cul-de-sacs or expressways. It's sidewalks, bike paths and parks." "We're creating infrastructure for human beings, rather than automobiles."

First Ward Park To Follow UNCC Classroom Building

Construction is scheduled to start this fall on a 4.5 acre-lot on Brevard Street between East Seventh and Ninth streets, said Daniel Levine, president of Levine Properties, which will pay the up-front costs of the $9.6 million construction project.

With restaurants and other attractions planned nearby in later phases, the park ultimately could draw visitors from more distant communities along the light rail line, Levine said.

"We're going to make it a great urban neighborhood," Levine said. "In 30 years, we hope to have Charlotte's equivalent of (New York's) Greenwich Village."

Levine Properties is moving forward with plans for the first phase of a 22-acre mixed-use development in First Ward. Long-term plans call for residences, offices and retail businesses such as restaurants and shops and possibly a hotel.

First Ward Park is part of a partnership between Levine, UNC Charlotte, Mecklenburg County and the city of Charlotte. Park and Recreation was gathering feedback this week on the park's master plan.

Crews will level off the drop in elevation at Eighth and Brevard. Construction also will begin on an underground parking deck with an entrance on East Ninth Street.

Crews also will begin work on a new section of 10th Street and on Market Street, a new street that will run parallel to the proposed light-rail extension.

The area closer to Seventh Street and ImaginOn will have features for children, including two fountains where they can play in the water. That side of the park also will have a lawn that can seat about 4,000 people for concerts or other activities.

Most of the park north of Eighth will be built above the underground parking deck. The proximity to UNC Charlotte's classrooms led to a design for a more serene space, with a reflecting pond.