JonesQC

Am I crazy to be happy that prices will adjust and be move favorable/affordable for those who were originally priced out of uptown? There is a tremendous amount of inventory sitting, add 409 units to the existing inventory and everyone is going to think about slashing prices to get residents to move in. Catalyst, Park, EpiCenter when they get to condo time will all follow suit. Its too early to tell what will happen to The Vue but let's be glad the initial loss is on a an out of town builder, and the benefit will be future Charlotte residents in the 'long term'.

So with the recent news that Novare is having financial difficulty, what are realistic options for Catalyst? Would the banks get the property and quickly sell units while slashing prices? Lower rents to get cash flow? Let the building sit?

Supposedly this is the first week of leasers moving in. Anyone heard how leasing / sales were going?

Yes, but this language was not standard in the original contracts and now is.

THought I might add that Catalyst threw in a non-financing contingency in the new contracts. If the purchaser is unable to get financed all earnest money comes back.

This is what they are doing. Novare will own up to floor 14. Condo sales are floor 15-24.

Confirmed - top half is being sold, bottom half is being leased.

Just for sake of argument, what if they split the building. Novare currently has 70-80 contracts down. 462 units in the entire building split in 2 is 231. This puts Catalyst at 30-35% presold. I think we know this is unlikely though, especially considering the park and AAA Knights in stagnant waters.

Agreed, just sharing what I heard around town. Let's say they do move into 1/2 and 1/2 and do not move forward with Twelve ... this would allow for more permanent parking spaces for Catalyst residents and might get people in there quicker?

I heard they were trying to separate the building: half into rentals, half into owner occupied but this was a few weeks ago before the bond package for the park was tabled.

Nothing official on the refinancing end but we do know the bonds for the park on the MLK side did not pass and are tabled for at least 60 days at the Charlotte Meck County Comissioners offices. I doubt in this economy that kind of money is going to be dished out for a park in uptown anytime soon when the city is more pinched to pay its own bills this year. This is a pretty big blow to the appeal of Catalyst. Speaking for me personally, the price of the units on MLK side are at a premium for the city view and the proposed park. I know the park was speculation but I bet anyone who put a contract down on that side was thinking the same thing and valued the park into their purchase ans unit selection.

News 14 reporting that MeckCoCo will reevaluate the bond package in June at the earliest. Not so good for the uptown arena.

I am wondering what the time line is to start on this park on the logistical side. Consider the purchase is 100% complete, the plans are approved, builder/contractors are in line, etc. I think the city would need to wait until at least The Catalyst is complete in order not to clog up MLK Blvd with two construction fronts. Considering The Catalyst is about 1-2 months behind schedule maybe Bearden Park starts to get underway at the tail end of Catalyst completion. Anyone else care to comment or heard any updates? I would also think as soon as Bearden commences Novare will have an easier time selling condos at Catalyst, leasing office at 220 S Church

Just got an email from Novare. The letter notes they are exploring the option of leasing the units but until a final decision is made they are extending the closing dates by 60 days. Happy Holidays

That is correct to my understanding. The value of an individual unit would plummet if there were 80+% rental units. The contracts state no more than 25% of the units can be leased and this is a protection against the home values. Not to say they wouldnt/couldnt offer this but a big discount would have to be offered. With that said this would be unheard of - Im not aware of any project ANYWHERE or EVER that would do such a thing. The Catalyst office has 15 days to let us know their plans so I'm hoping to hear something before Christmas but not expecting to until the end of the month.