Another tower plan
delayed in uptown

South Tryon complex postponed until markets stabilize, says developer

DOUG SMITH

The developers of a 32-story uptown condo-office tower plan to postpone construction until the nation's financial markets stabilize.

Spectrum Properties and Cornerstone Real Estate Advisers had planned to start erecting 300 South Tryon this month at Tryon and Third streets.

Spectrum's Darryl Dewberry said Cornerstone, the project's equity partner, "is still bullish on Charlotte, but it wants to wait. Once the turmoil is behind us, we will start."

It's the second planned uptown high-rise to be postponed within the past three weeks.

Atlanta's Portman Holdings, citing the uncertain economy and bad timing, earlier decided to delay its ambitious 40-story, 99-unit One Charlotte tower next to the Westin Charlotte. Condos there were priced from $1.5 million to $10 million.

Dewberry said market acceptance of 300 South Tryon so far has been "tremendous," with 72 of nearly 100 condos under contract in the first phase. Units were priced from the $200,000s to about $1.6 million, he said.

Charlotte is beginning to feel the pain of a national slowdown as housing sales decline, building permits fall and credit tightens.

Economists believe the slump will be less severe and shorter lived here than in the rest of the country, but experts don't expect the bleeding to stop before mid-2008.

Dewberry didn't know how long 300 South Tryon might be postponed, but he believes it still will be started this year.

He said Spectrum plans to continue selling residential units and taking nonbinding reservations on office space during the postponement.

The $200 million project, which also includes a second condo tower of 14 stories, is a mixed-use development including offices, residences, shops and restaurants between Tryon and Church streets next to the historic Latta Arcade.

Uptown has been a hot spot for high-rise condo development over the past four years.

Four are finished and occupied -- 13-story 230 South Tryon, 17-story Courtside, 28-story TradeMark and 36-story Avenue. About 16 projects proposed or under way could produce more than 3,000 residential units and push the center city population from about 10,000 today to more than 21,000 by 2012.

Spectrum's 300 South Tryon would help alleviate a severe shortage of center city office space. The uptown office vacancy rate has dropped to around 2 percent, the lowest of any downtown in the nation.

More than a half-dozen office buildings totaling more than 2.7 million square feet are in the works in the center city.

Spectrum plans to include more than 300,000 square feet of office space in 300 South Tryon.

Dewberry said potential tenants have expressed "intense interest," but so far no leases have been signed.

DEVELOPMENT Doug Smith