A planned upscale condominium building at Fourth and Brevard streets has been canceled, with the developer citing difficulty getting enough units pre-sold to start the project.
1Brevard would have been the first uptown condo tower built since the recession. The project’s cancellation underscores how the market for new condo towers has yet to come back following the real estate crash and recession, despite the relative strength of the city’s high-end rental market.
The luxury building, announced last year, was planned to total 31 stories with 174 units. Prices started in the $400,000s and ranged up to $7 million for the penthouse. Boston-based Greg Rudolph of RTG Holdings and Robert Gunn of Gunn Financial were developing the project, which they hoped to complete in late 2017.
“The marketing group for the project discovered post-launching that there is no pre-sale market of any depth for a condominium tower of this size and scale,” a message posted on 1Brevard.com on Wednesday read. A sales center opened in July at Fifth and Brevard streets for the project.
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Gunn and Rudolph are considering other uses for the property, the announcement said. No immediate further details were available on future plans for the property.
“The developers are considering alternative uses for the property. It is their expectation that these alternatives will work to the benefit of Uptown and fulfill unmet needs of the City of Charlotte,” the announcement said.
The developers had hoped to lure people currently paying high rents at upscale apartment towers such as The Vue and Element who wanted to own rather than rent.
The building plans included high-end finishes for the condos, which would have been 1- to 3-bedroom units. The condo tower was planned to include amenities such as a pool, fitness center, library and lounge on the seventh floor, a dog lawn and outdoor kitchen on the eighth floor, a secure parking deck and a rooftop deck.
The developers also had reached an agreement to donate 4,000 square feet of ground-floor retail space to the McColl Center for Art + Innovation, which would have been a gallery featuring work by the center’s alumni. The project also would have included a public “pocket park.”
Meanwhile, the city’s high-end rental market is continuing to perform well. Numbers released last week by Charlotte-based Real Data show the average rent in Charlotte is up 7.7 percent from a year ago, totaling $1,011. The vacancy rate is actually down slightly despite the surge of new apartments hitting the market, at 6.2 percent, compared with 6.7 percent a year ago.
Uptown has the highest average rent of a Charlotte submarket: $1,694, according to Real Data.