The cancellation of 1Brevard last week signaled what might be the demise of high-rise condominiums in the Uptown area. 
Pre-recession, more than 2,600 permits were issued for condominium space in Uptown. In 2015, that number has plummeted to just 12, according to a Charlotte Observer report.
The reason? Cost of land dictates a high-rise structure and high-end prices in order to make money off the project. It is hard for developers to meet the demand for more affordable housing when the land comes at a premium price.
1Brevard needed pre-sales to start construction. That is a tough sell when units are priced at more than $500 per square foot and penthouses topped out at $7 million. Town homes on the outskirts of Uptown in SouthEnd offer more square footage for half the price per square foot.
Even the planned luxury high-rise The Vue turned apartments after a foreclosure and new ownership.
In areas surrounding Uptown, developers are finding people are buying town homes faster than they can build them. For example, SouthPoint on Youngblood in SouthEnd has just entered its second phase of construction.
Pre-recession, condominiums sold like hot cakes in pre-build phases. Owner investors bought at pre-construction prices and knew they could turn a profit by the time the project was completed a year or two later. That is not the case any longer.
David Furman, the developer behind pre-recession condominiums Courtside and the Trademark building, told the Observer he thinks there is a market for Uptown condos, but developers have not presented the right kind of project.
A high-rise condo with 200 units is not a job he wants to take on, he told The Observer.
However, Furman is in the market to find smaller-scale projects in Center City. He believes a building of between 40-60 units is an easier sell and would not require pre-sale commitments in order to get started.
In the meantime, apartments and for-sale projects around Uptown’s perimeter are booming, and Queen City inventory remains low, which is good news for sellers.
There is a market for Center City living, but for now it is back to the drawing board to find a solution that meets everyone’s needs.