$10M residential project proposed for downtown W-S
The Business Journal of the Greater Triad Area - by Matt Harrington The Business Journal
East Coast Capital Inc. is pushing forward with plans for a $10 million, 32-unit residential condo project on the north end of downtown Winston-Salem that will be unlike anything the Twin City has seen to this point.
Chad Davis, president of East Coast Capital, said the project, called The District, would be done in an ultra-contemporary style with an industrial feel that includes features such as corrugated metal, exposed concrete and steel mesh defining the building and its living spaces. The District will be a new building on the east side of Trade Street, north of Seventh Street.
"This is going to be totally different than anything that's been done here," Davis said this week. "Everyone has done a red brick building. We want to play off the success and the feel of the arts district area, and I think that there's always a market for contemporary architecture."
Davis said he'll start presales immediately, and hopes to begin construction "in a couple of months."
The District will have units ranging from 611 square feet to 2,200 square feet, with the majority being the smaller, studio variety. Prices will range from about $160,000 to $570,000, meaning that, although overall cost for some of the smaller units will be lower than the average cost of condos downtown, the price per square foot, at around $250, will be higher. Most residential projects downtown have sold units for around $200 per square foot.
In addition to the residential units, there will be three first-floor retail spaces, one of which will likely contain a restaurant, Davis said.
The project could also grow in the future, he said. In addition to the land for The District, Davis has purchased 3.8 acres of adjacent land that could hold three other buildings, though he said there are no set plans for more development, and some of the land could be kept as greenspace. The entire site, including where The District will soon rise, currently contains two abandoned buildings, two small apartment buildings and one home, Davis said. Residents of the existing buildings will not be affected by the new structures.
The location of the District will be close to the renovation of the former Tobacco Square building, which is being turned into 30 residential condos by local developer Chris Kellner, who announced his project in December. Kellner is currently in the presale process before he converts the space into what will be called Eight Thirty Six Oak.
The north side of downtown has begun developing briskly, especially along Trade Street, where the Traders Row building is nearly complete and will house Walter Robbs Callahan & Pierce Architects, Cavanaugh & Associates, the sports-marketing firm ISP and some residential condos. In addition, the Goler development, which consists of a senior-living facility as well as for-sale lofts in the former Brown & Williamson building, is within a few blocks, and a developer out of Las Vegas has announced plans to renovate a building on North Liberty Street into 36 condos.
Presales a tougher go
But it's not just the north end of town with momentum. Residential development remains brisk throughout downtown Winston-Salem. Jason Thiel, president of the Downtown Winston-Salem Partnership, said 700 units have been built in the last five years and another 300 are currently under construction.
"This market is still in its adolescence," Thiel said, adding that he thought The District was at a great location and would provide a new type of unit for potential downtown buyers.
But while developers say they're selling units, the rate of presales seems to be slowing. Presales are important because lenders normally require a certain percentage of a building to have commitments before it will issue a loan for construction.
"It's slowed a little bit because there's just more on the market," said Ashley Ackerman, who is leading the sales efforts for Boulevard Centro, the developer of West End Village at the corner of Fourth and Broad streets.
The first two buildings in West End Village, which are nearly complete, have contracts in place for 55 of the 72 units, Ackerman said. Boulevard Centro was slated to begin closing on those contracts this week, he said, as the first building, called The Townes, is finished.
A third building, however, which was first announced in December 2005, has just 15 of its 54 units reserved, Ackerman said, and has not yet gone under construction.
Beau Dancy is finding a similar problem with his 248 South Main development downtown. While his two most recent residential buildings, The Mill at Tar Branch and Tar Branch Tower, are nearly full, he said presales have been slower than expected on South Main.
Thiel admitted that some projects were struggling to reach their presales figures in a timely manner, but said that much of that was due to more options being on the market and already built.
"It's just a matter of absorption and patience," he said. "We've had a lot come on the market in a short period."
Dancy agreed, saying it could be difficult to lure buyers with a plan when other, already under-construction developments could show sample units.
Looking for density
Davis is not new to downtown development. East Coast Capital is in the process of building The Gateway, a mixed-use development just south of downtown near Old Salem that will include residential, office and retail uses as well as a YWCA, which is under construction.
Related Industry News |
Latest News |
