Prodev

JLB's Southline project is now called Junction 1504. Million dollar question...why?

They've recently fenced the project and have posted signs that have the name Colonial Reserve at South End versus the former signs that had Colonial Grand at South End. Not sure if one is their higher end product type versus the other. Similarly, Southline apartments, the 280 unit garden project by JLB Partners now has signs with their official name that has slipped my mind. I do remember it didn't sound like an inviting name though. Anyone remember the new name? If not, I drive by there daily, so I can make sure I remember it when I drive by later.

The other corner of Morehead and Kenilworth once had a Walgreens proposed but it was the ground floor of a medical office building. Supposedly the owner of that has a ridiculous price tag for that parcel which is probably why that building has sat vacant for years. As much as I like to see development activity, it's sad to see more of Dilworth's charm disappear. Both the tudor and the white colonial next door are worth saving. Has anyone seen a site plan? The two parcels combined are less than an acre. Wags usually takes 2ac alone, so I'm curious to see how the site lays out with an office building as well. Even if Wags is on the ground floor of the office building, it seems like it would be hard to get the necessary parking.

Maersk Site -

SouthPark Town Center site plan and renderings -

Okay...can someone help me out with posting images that are not from a website?

I'll attempt to post the renderings for the two SouthPark projects (The Market at SP aka SouthPark Town Center and the Maersk site) but they don't really depict what will eventually go on the sites. They were put together by the sellers for marketing purposes to show what could potentially be developed.

Update - Mercury Lofts rezoning was approved

Although Target would love to be in that submarket, I think it's highly unlikely they'll end up at The Market at SouthPark site. They're approving very few new stores these days and the ones they are doing are down the middle of the fairway - ie: no structured parking or multi-level non-prototypical stores. I'm pretty confident you'll see some restaurant and boutique space (min 45k sq.ft. required by current zoning/entitlements), a hotel and apartments at the end of the day. The Maersk site is the 6000 Carnegie site. CB marketed the deal last summer (July-Aug) and it was tied up at around $2 million per acre (13+ acre site). Last I spoke to the broker, the deal was still tied up with the original buyer, but that was a few months ago. The site has some crazy entitlements - 591 resi units, 480,000 sf of office & 15,000 sf of retail.

Owner is shopping the project to developers to sell of rather than develop themselves, so the rendering/architecture/site plan you see today may not be what materializes. I've also seen a rendering of the hotel planned for the music factory. Very art deco 70's mod. Not sure the timeline on that or how it would be branded using the existing design. I don't know how that would do in that location assuming a high end boutique concept that it appears to be.

The loan is matured and therefore in default. They've already gotten a 1 year extension which expired in Feb. Rents here will likely be a new high for the market, so no risk of bringing down numbers. It will likely take a while to absorb all those units being that there is a limited renter pool that can pay the numbers these will likley rent for. They're also much larger on average than a property built as rental apartments.

The junior debt of $130 million is currently being marketed for sale. there was a forebearance agreement in place which was defaulted on. The buyer will likely also buy the senior debt and go through foreclosure then convet the remaining 389 units to apartments.

Agreed. Belk hasn't opened a new store since '07 and doesn't have any immediate plans to. There was just an article in the observer saying they're planning to spend $75 million to renovate existing stores this year and up to $130 million in '13-14.

Kohl's larger prototype is about 88,000 sf so they would need to split the space if they were to occupy the former Expo space. I've heard talk of Sams club, who could take the space as-is, but that was about 8 months ago, so not sure if they;re still considering the space. I get the Kohls Target relationship b/c they create some synergy and offer different products, but what I don't get is Hibbett Sports piggybacking off Walmart. They sell the same items as Walmart at a higher price, but they say their sales are highest at locations near Walmart.

Sheetz may not be here yet but Quiktrip has been buying up sites left and right in the Charlotte area and is pretty much the same concept.

Whether CHA is an expert at commercial development or not, they have entitlements to build 100,000+ square feet of it. My point was that there are limited sites large enough to accomodate a large scale retail project. I was also referring to Pappas's site at Scaleybark. Their original design didn't incorporate a grocer b/c Crosland's did, but now it is probably likley that if there is still a need for a grocer when they proceed, it would be a site that makes sense, again, because of the size.

Thank you Dub. The current pipeline of garden and 4 story projects with surface parking (Southline, Fountains & Silos) will likely be the last. Any desirable land out there today won't trade for under $30/sf, which will require 4-5 story with structured parking. Southline, Fountains and Silos all traded for about $9/sf, which you can make garden/surface work. Silos and Fountains we're both FCL deals too, which there won't be any more of in the current cycle in the South End. I think it's interesting to note that none of the deals coming through the pipeline today have any significant retail component if any at all. When the TOD zoning ordinance and the New Bern/South End area plans were conceptualized, they had visions of grandeur and thought these complex mixed-use projects we're going to happen on every block. Those aren't feasible today, and the TOD zoning is not condusive to retail. A grocer would be great, but it's hard when you're limited to a 30,000 sf footprint, have to have a FAR of at least 0.5 or 0.75, and only get credit for up to 20% of the retail square footage to reach the FAR, it's nearly impossible to make it work. You either need to build a vertical retail project which won't work or you need to build a Park & Market (Raleigh) style mixed-use project which not too many developers want to take on today when they can make a straight forward apartment deal work all day. It'll be interesting to see if there are any rezoning petitions filed in the near future for retail projects trying to get approval under the TOD-O and how they are received by the city. Otherwise, I think the only options for a grocer are Strawn and Scaleybark.

Cherokee/Pappas acquired the Southline site, but has since sold it to JDH, who is developing the apartments on the 11 acres, so the site planning is on their behalf, not Cherokee/Pappas. They provide access to Dunavant because it's a garden apartment deal with surface parking and they have to provide some form of ingress/egress, so I don't really understand your logic. The site I was referring to the connector road running right through the middle is the 3.6 acre site that sits directly at the light at South and Iverson. If the connection happened, it would leave 200' on the south side and 100' on the north side with about 400' of depth. Not sure how you develop anything efficient and dense with that. It basically leaves you with enough land for outparcel/fast food users which is obviously not the intention.

Great map. Thanks for putting that together. A few additions/tweaks - Mercury NoDa is by Tyler Foster and 250 units w/ structured parking. The project off of W Morehead is by Lomax and is 270 units w/ structured parking. The E Morehead deal just off of Kenilworth is by The McAlpine Group and is actually 220 units, not 300 (although rezoning request was for up to 300). One other project to add is 137 S Kings. FMW has built a portion of the retail already (Chipotle, Vitamin World, Mattress...) and the rest of the block excluding the office building is slated for 250 units. Chris Branch was working with FMW on the deal until he joined Fasion. It's highly likely that Faison will buy the site and develop the project themselves. It would include some additional retail as well. Southline is indeed 100% self contained and does not provide any opportunity to connect to Iverson in the future. 280 garden units with surface parking. Although the light rail was supposed to spur dense development (as has), it's good for the area to provide lower cost alternatives to residents.

The 3 parcels at Remount and South they're just finishing the demo on the existing buildings which includes asbestos removal which is why it seems to be taking so long. No immediate plans for this site.

Southline Apartments site plan doesn't take into consideration the Iverson connection, and the city has no plans to fund it in the short term, so this connection is dead for all intensive purposes. The connection would drastically limit Cherokee/Pappas's development potential on South as well since it cuts right throug the middle of the site.