Mar. 03, 2008

Developer resuming work on Garrison

Revitalization in area encourages local investors' involvement

DOUG SMITH

A Charlotte developer plans to resume work this week on an 11-story, 41-unit condo building on North Graham Street.

Construction of The Garrison at Graham stalled last fall when a portion of the project's financing fell through.

The delay occurred, said First Charlotte Properties' real estate broker Terry Childers, after issues arose on the project with a national construction lender facing challenges in cities with a more serious housing downturn than Charlotte.

Developer Thomas Barnes now has secured money from local investors to replace what the so-called mezzanine loan would have provided, Childers said.

Asheboro-based Community One Bank is the $22 million project's primary lender, he said.

Financing has become more difficult for residential developers as lenders tighten credit in the wake of subprime lending woes and declining home sales.

Other center city projects have been affected.

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

About two weeks later, Spectrum Properties and Cornerstone Real Estate Advisers postponed construction of 32-story 300 South Tryon, an office-condo tower.

Uptown has been a hot spot for high-rise condo projects 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 15 high-rises totaling more than 3,000 residential units are under way or proposed.

If all are finished, the center city population could grow from about 10,000 today to more than 21,000 by 2012.

Childers, who is handling sales and marketing for The Garrison at Graham, said Barnes completed construction loan arrangements Friday and expects general contractor Cox & Schepp Construction Inc. back on the site this week.

The first buyers should be able to occupy their units in about 14 months, he said.

Of the 41 loft units, 21 have been sold. Childers said remaining two-bedroom and larger units range from 1,250 square feet to 2,550 square feet and sell for $427,500 to about $800,000.

The Garrison at Graham (www.thegarrisonatgraham.com) was designed to blend with Graham's vintage factory and warehouse-style building.

Since it was announced in January 2005 at 715 N. Graham between 10th Street and the Brookshire Freeway overpass, revitalization in the area has picked up.

Off Graham near Statesville and Oaklawn avenues just north of the project, a developer plans North End Square, a mixed-use project, and planning is under way for redevelopment of the Double Oaks Apartments.

Several large industrial tracts in the area also have caught the eye of mixed-use developers.

"We were once on the outermost edge, and now it's more like we are in the middle of everything," Childers said.

Development Doug

Smith