 It is important that our portfolio of projects is diverse and that each project responds to different triggers in the industry. Therefore, we're currently seeking a location near Johnson C. Smith and Johnson & Wales Universities to develop a mixed use student housing and retail project in the West End corridor. This project is not affected by how well homes are selling across the nation - students will go to school and need housing regardless.
The city of Charlotte, NC, has designated this corridor for redevelopment in the next four to six years. This has shaped our strategy for this project. The project will be developed with retail on the first floor and student housing apartments on top. These apartments will be designed with the future plan of a condominium conversion when the redevelopment of the corridor is established.
This strategy allows us to generate strong cash flow from the retail and rental leases until the condominium conversion takes place. At that time, all units will be sold, debt paid off, and profits made, while still maintaining an ongoing cash flow stream from the retail component. |
Calloway Glen is an existing townhome development in Southwest Charlotte, near Carowinds, the Paramount Amusement Park. This development is approximately fifty percent built out. Currently, we plan to buy out twenty nine of their remaining finished lots. Another developer has purchased the remaining lots from the developer, The McAlpine Group, and has begun building.
The overhead as a local developer gives us the agility that the national builders don't have. We therefore, have a lower required absorption rate on home sales. As national homebuilders experience a slow down in their national projects, forcing them even in a strong market like Charlotte to pull back, continued opportunities such as Calloway Glen will become available.
Along South Tryon, townhome developments have experienced great success. Calloway Glen is one of the best locations as it neighbors the $60 million dollar RiverGate retail center anchored by a Super Target, Home Depot, Best Buy, Starbucks, City Tavern Restaurant and many more great stores. It is also close to the water activities at Lake Wylie and just twenty five minutes from Uptown Charlotte. |
