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New condos fuel Downtown

Growth catches attention of developers seeking to cash in on housing demand

By Mark Watson
Contact
April 16, 2005

Atlanta-based Beazer Homes is building a $49 million, 204-unit condo and town home complex Downtown on the site of a former cold-storage warehouse at Georgia and Florida.

Dubbed The State at South End, the project includes two 48-unit condo buildings, standing five stories tall, surrounded by 108 town homes, standing three and four stories tall. It will sit on five acres.

"The Memphis Downtown market has had such a high sales rate, more than anywhere else in the Memphis area, and the city has done a great job of redeveloping the Downtown area," said Pete Canalia, president of Beazer's Memphis Division. "It's just a place where young and old alike want to be living right now."

It's second in value and number of units only to the Riverside Towers project among condo and town home projects in the planning stages on the Center City Commission's Web site.

The Bryan Co. and The Garland Co. envision the $90 million Riverside Towers as two 16-story towers providing 290 condos in all, accompanied by 60 town homes.

Chandler Reports shows the number of sales in Downtown's 38103 Zip Code increased by 14.6 percent, to 425 units in 2004. The average price increased 7.3 percent to $231,875.

Chandler Reports does not release condo sales for a specific Zip Code, but citywide the average condo sales prices increased by 5.8 percent to $112,579.

The condos will range in size from 800 to 1,400 square feet, and the town homes will range in size from 1,200 to 1,800 square feet. The condos will range from $125,000 to about $250,000, Canalia said, and the town homes will range from $180,000 to about $290,000.

Beazer hopes to break ground around May 15, start preselling in August and deliver the first units in October or November. Construction should end in late 2007.

Bloodgood Sharp Buster, a Chicago-based architectural firm, is designing the project.

"Tennessee is going to turn into a boulevard, once you pass Georgia," Canalia said. "What we've tried to do here . . . is to have a community feel."

Can the Downtown housing market absorb 350 units in the Riverside Towers project and 204 in The State project?

"You have to remember that for all intents and purposes, there was no condo available Downtown two years ago," said CCC president Jeff Sanford. "We still have a way to go until supply exceeds demand."

A recent market study commissioned by the CCC showed the Downtown population increasing to 38,000 by 2014.

The area has a population of about 25,000 now.

Downtown's population is growing at a 4.3 percent annual rate, compared to 1.1 percent for the rest of Memphis.

But three Downtown "high-growth areas" -- Mud Island, the South Main District and Downtown Core -- are growing at a 10.3 percent clip.

Memphis developers Jack Belz and Henry Turley had originally envisioned a Downtown that was open 24 hours, and these projects contribute to that vision.

"I say the more, the merrier," Belz said.