‘Greatly upsetting’: Developer’s deal to buy aging SouthPark condo site appears unlikely
A deal from a Miami developer to purchase an aging condominium complex in SouthPark appears to be off the table — after years of planning to convert the site into a major mixed-use development.
Condo owners largely supported the sale of the 118-unit Trianon complex to Related Group. Located off Colony Road, Trianon dates back more than 50 years. It was facing continued repairs, The Charlotte Observer has reported.
Now, some owners who had their mind set on moving out in the coming months are left wondering what will happen next.
In March, Related Group got the OK from Charlotte City Council to rezone the 9-acre property. The project included more than 700 apartments, two dozen townhomes and 60,000 square feet of restaurant and retail space.
But two months later, Trianon residents learned the closing of the sale for December was likely not happening, according to a May 31 email from the Trianon Homeowners Association board obtained by the Observer. While there is “some interest” in a sale at a future date, the board indicated that is uncertain.
“This news was obviously greatly upsetting,” the email said, “and the Board has not had an opportunity to fully consider and investigate possible solutions other than a simple termination of the sale deal.”
Related did not believe the deal could close in December due to “rapidly deteriorating conditions in the commercial real estate market,” the email said.
Phone and email messages left by the Observer with both Related Group and Trianon HOA board president Brian Zapata were not returned.
Trianon condo owners’ concerns
Nagy Abdelmalik moved into a condo at Trianon with his wife and son in 2014. A retired high school teacher, Abdelmalik came to appreciate life in SouthPark after years of living in his native Egypt and later New York City.
At Trianon, he’s within walking distance of the mall, doctor’s offices and restaurants. The location is convenient because Abdelmalik said he’s legally blind and can’t drive a car.
Abdelmalik, 69, has mixed feelings about the sale falling through.
It’s disappointing, he said, because his mind was already set to move out. He’s not a big fan of the high HOA fees and planned to purchase a single-family home with fewer stairs, likely further south near the Pineville area.
He also called the sales drop a blessing — citing the proximity of nearby businesses in SouthPark that he can still get to.
“At least I’m comfortable,” Abdelmalik said.
Comparable rents down in SouthPark
There were two driving factors in sale of the condos falling apart, said Charlotte Councilman Tariq Bokhari, who represent the district. He spoke with both Related and the HOA board in the last week or so.
Rising construction and borrowing costs are putting economic pressures on development projects like the Related project, Bokhari said. A second reason in talking to Related Group was rents of comparable residential units have declined over the past year in the area, he said.
Related Group has indicated it’s open to finding a way to salvage the deal, though that seems “highly unlikely,” Bokhari said.
The more likely scenario he’s trying to keep open is to see if there’s a different developer who wants to come in with another concept, pointing to how neighbors there were ready to sell.
He called the Trianon site one of the most important parcels in SouthPark because it can better connect the residential section of the neighborhood and the nearby commercial strip, including the mall.
Bokhari has heard from residents who were in the middle of making other living arrangements, believing the sale was close to a done deal.
“My first priority is to piece together a deal so they can continue on with their transaction,” Bokhari said.
More about the proposed SouthPark project
Related Group was planning a walkable, mixed-use development on the Trianon property.
When the project was announced, the tallest building was going to be between 14 and 16 floors. But those heights were reduced by three floors after hearing concerns from the community.
The project called for a woonerf — Dutch for “living street” — to run through the middle of the development. The open concept also allows for easier walking to shops and restaurants.
Under the rezoning, Related Group was going to contribute money to fund a multi-use trail through South Park as well as give money to Charlotte’s Housing Trust Fund.
This story was originally published June 7, 2023 at 3:07 PM.
