What was supposed to be 462 condos in a 27-story hi-rise on MLK Blvd. in Uptown right now only has 60 condos sold, according to local developer symbiote Doug Smith. As a result the building is converting half of the 400 unsold spaces to apartments. I’d wager the rest will follow sooner or later, as pressure to service the construction debt mounts. Or as Smith puts it:
Conor McNally, senior vice president of development at Novare Group, said the decision to convert from all condo to half apartments was made after Novare’s discussions with senior lender Wachovia and other lenders over concerns that the original financing plan wouldn’t work.
Wachovia loaned $73m. on the project and would like to get it back, you see.
Rents in Novare Group’s Catalyst building start at $1200, or about $1.77 a square foot. Watch that number and see if it softens going forward.
Bonus Observation: I am having a hard time following the property records on this Catalyst parcel, but I do see that Novare owes about $27,000 in property tax and penalties on empty condos in its Avenue building at 210 North Church Street.
