Metropolitan, Midtown Redevelopment

[DigitalSky]

I think West Elm is owned by Williams Sonoma, but I guess I could be wrong. Either way, your point is valid. It's high end and they'd rather lock the doors than be located across the street from a homeless shelter.

As for West Elm doing a good business, they may not have the same pressure as some stores. The one time I've been in there I talked with the manager and she said Sonoma paid cash (or the owners anyway) to upfit the store (granted it might not have been "cash", but they paid out of pocket, not with a loan). She said they owed nothing. Assuming all they have to cover is rent and expenses, that should give them more breathing room than say a store that took out some sort of loan to upfit their new stores....FWIW.

That's correct, Williams-Sonoma, Inc. owns both Pottery Barn and West Elm.

I have never been inside this Home Depot, but I'd like to see an Aldi go in its place. I know Aldi is at least turning a profile in his early depression and a location uptown would help out the bottom line. I was in there new store in Harrisburg and it was very nice and clean. Plus it would be great competition for Trader Joe's. What does everybody else think?

ALDI would be a cool store, and many see it as a downscale version of Trader Joe's (in fact wikipedia says "[Trader Joes] is currently owned by a family trust set up by German billionaire Theo Albrecht, one of the two brothers behind the German supermarket chain Aldi.") However I think most of their stores are stand-alone I'm not sure how it would fit in, and even though its price point and products are separate from TJ's, I don't think TJ's would want an Aldi in the same shopping center.

[swampfox43]

Perfect idea for the Design Center - A Filene's Bargain Basement! Miami, Atlanta, DC, Columbus have one (not to mention all the New England/York locations). Charlotte would be a perfect fit and this Midtown location would be just right.

[voyager12]

While I have personal preferences like anyone else for the design center space let's just hope it does not sit desolate for years.

Also, are any other sidewalk style and not bigbox stores slated to go in next to or across from West Elm? It looks a little silly and in siberia in the retail sense just sitting out by itself on the corner.

[Miesian Corners]

I have never been inside this Home Depot, but I'd like to see an Aldi go in its place. I know Aldi is at least turning a profile in his early depression and a location uptown would help out the bottom line. I was in there new store in Harrisburg and it was very nice and clean. Plus it would be great competition for Trader Joe's. What does everybody else think?

Aldi's owns Trader Joe's, so not likely they'd want to cannibalize their own store. As for West Elm being by itself, It's next to a loading dock, so it's gonna remain the lone retailer on that end.

[mallguy]

I'd love a Filene's Basement- it has high-end stuff at good prices- but unfortunately the chain is closing a big chunk of its stores.

I don't shop at H&M, but why doesn't Charlotte have one yet? Maybe that would do well at Midtown?

[DigitalSky]

I'd love a Filene's Basement- it has high-end stuff at good prices- but unfortunately the chain is closing a big chunk of its stores.

I don't shop at H&M, but why doesn't Charlotte have one yet? Maybe that would do well at Midtown?

I strongly feel that H&M will be one of the next big retailers to come to Charlotte. The demand for them here is seemingly massive (as it is with Whole Foods ). Also, Channel 9 reported that Home Depot is actively seeking a buyer for its design center store (which I guess means that it'll definitely not become a regular Home Depot store as some had hoped for) and they reported that the square footage on the store is 128k square feet, so my 120k guess was very ballpark!

Edited January 27, 2009 by DigitalSky

[nyxmike]

What about a Nordstrom Rack or Neiman Marcus Outlet? The space doesn't seem like somewhere an H&M would locate to but I'm sure they will open a store somewhere here eventually.

[CLTMichael]

A Costco there would be great! The designer center was a fantastic place.

[Neo]

A Costco there would be great! The designer center was a fantastic place.

I seriously doubt a Costco would want to go in there since it is fairly auto dependent and there is one nearby at I-77/Tyvola. I think one of the best options may be a Kohls, they're one of the sole companies doing fairly well in this economy.

[mallguy]

rockhilljames (and others such as StevenRocks)- zero interest by Belk?

I find it interesting that until the late '80s there were 2 department stores uptown plus Charlottetown Mall or whatever it was called right in central Charlotte, plus Eastland and SouthPark, with a much smaller residential/commercial base in central Charlotte. Seems as if there's a department store void that could be filled.

[rockhilljames]

zero.

No new Belk stores this year that haven't already been in the works.

[DigitalSky]

Speaking of like Filene's Basement and Nordstrom Rack etc etc, and Belk.... how about a Belk Outlet Store there?

[Andyc545]

zero.

No new Belk stores this year that haven't already been in the works.

How would there have been a Belk (or any store for that matter) in the works at this locale for this year if the news of the Design's Center demise was literally announced a week ago? This week and going forward would be the opportunity for a company to have sparked interest in some property that is surrounded by some decent stores that attract a great amount of people and I wouldn't think a Kohl's would be unreasonable seeing that they just took out the Express Kohl's from Overstreet. A department store here could make a killing unless the parcel is subdivided. There are problems with subdividing this parcel though: you are going to have central subdivided parcels that will be masked by the parking garage (which I acknowledge that Staples, Marshalls, and TJ's are), but is now ideal, IMO).

Edited January 29, 2009 by Andyc545

[rockhilljames]

No, what I was saying is that Belk has no plans to start ANY new stores this year. So, although opportunities may come up that were unexpected, it would go against current policy to explore this. Not saying it's impossible, but... no.

[DigitalSky]

How would there have been a Belk (or any store for that matter) in the works at this locale for this year if the news of the Design's Center demise was literally announced a week ago? This week and going forward would be the opportunity for a company to have sparked interest in some property that is surrounded by some decent stores that attract a great amount of people and I wouldn't think a Kohl's would be unreasonable seeing that they just took out the Express Kohl's from Overstreet. A department store here could make a killing unless the parcel is subdivided. There are problems with subdividing this parcel though: you are going to have central subdivided parcels that will be masked by the parking garage (which I acknowledge that Staples, Marshalls, and TJ's are), but is now ideal, IMO).

That was a Belk Express, not a Kohl's Express, at Overstreet.

Yeah the location does face the huge issue of visibility, half of it being "underground" and covered by parking deck.

[Andyc545]

That was a Belk Express, not a Kohl's Express, at Overstreet.

Yeah the location does face the huge issue of visibility, half of it being "underground" and covered by parking deck.

LOL. Yeah I'm getting my department stores crossed. I guess I was making assumptions about a Belk in the Home Depot space, not Kohl's. Can you tell I don't go to department stores very often?

[DigitalSky]

http://www.urbanplanet.org/forums/bookstor...06#entry1048006 Want to mention the discussion happening in another thread, that "word on the spot" is that it looks like a warehouse club will come to the Home Depot Design Center space...

[voyager12]

I go to Trader Joes all the time and I have never seen anyone in West Elm when I drive by. I don't think it's ever busy. I hope they are doing decent business. We don't need another closure.

[Charlotte_native]

I go to Trader Joes all the time and I have never seen anyone in West Elm when I drive by. I don't think it's ever busy. I hope they are doing decent business. We don't need another closure.

According to a friend from college who is one of the managers of the store, they are doing well. I think the way it is set up might make it hard to see how many people are in there, or maybe just when you happen to be going by.

[Miesian Corners]

Spoke with a mortgage guy last night who told me that due to changes in the way banks view commercial/residential ratio in individual projects (new Freddie and Fannie rules), no one will loan money to purchase condos at Metropolitan anymore. Same thing has happened at Piedmont Row in SouthPark. Cash sale is now pretty much the only option at these two properties.

[New Name]

Did anyone else read Mary Newsom's last blog about the Home Depo Design Center and get the idea that there would be another similar article in O's Viewpoint?

"OK, back to work. Be sure to read tomorrow's Viewpoint Page in the Observer. I can't reveal yet what will be on it but it will have excellently written headlines. And a sublime Buzz. I hope" (Naked City)

I never saw anything. Did you? Or did I miss the point?

[monsoon]

Spoke with a mortgage guy last night who told me that due to changes in the way banks view commercial/residential ratio in individual projects (new Freddie and Fannie rules), no one will loan money to purchase condos at Metropolitan anymore. Same thing has happened at Piedmont Row in SouthPark. Cash sale is now pretty much the only option at these two properties.

This is the politically correct way to say they don't think these places are worth what they have been asking. If the Met dropped its prices by 70% I bet you could get a bank loan on it then.

[Charlotte_native]

This is the politically correct way to say they don't think these places are worth what they have been asking. If the Met dropped its prices by 70% I bet you could get a bank loan on it then.

No. It is changes in FNMA guidelines for ratios of rental to owned residential units on one part, then on the other hand the ratio of commercial space to residential space in a project. They've always had these guidelines, but have made exceptions in the past. They've also tightened them greatly recently as well.

This is why I'm interested to see how Catalyst gets people loans for their condos with half or more being rental.

[monsoon]

^Believe what you wish, Myrtle Beach is an entire city of condo developments that would prove otherwise.

[Charlotte_native]

^Believe what you wish, Myrtle Beach is an entire city of condo developments that would prove otherwise.

Believe what we work with every day. These guidelines are national and anyone making a Fannie or Freddie loan must conform to them. It isn't project specific nor is this part of their evaluation of projects based on value. I didn't make it up and I also don't care to try and convince someone of something that is public and easy to see. Whether you want to think it is just based on 'overvalued properties' or not, these guidelines are in place for overvalued and undervalued, sold and unsold properties.

Speaking of, as of March 1st the guidelines get even tougher -- you won't get a Fannie or Freddie approval if a project (any project) isn't 70% sold or contracted. Up from current guidelines of 50%.

(by the way all of this is separate from someone going for a FHA loan)