As the appeal of suburban life fades for some Americans, developers in urban areas throughout the Southeast are catering to the growing demand for upscale condominium homes.

In Atlanta, Springbok LLC is developing The View @ Chastain, a 10-story, 126-unit high-rise condominium overlooking Chastain Park. The company has begun construction on the $40 million project and aims for a December 2003 delivery. Units will range from 1,089 square feet to 1,840 square feet and from $189,000 to $489,000.

There are no other high-rise buildings around Chastain Park, says Springbok partner Jonathan Berzack. "We were very fortunate to get the zoning. We are the first to be awarded zoning of more than three stories overlooking Chastain Park -- we were awarded 10 stories."

"The total lack of competition gives you spectacular views," he continues. "The entire back side and the sides of the building overlook Chastain Golf Course. We are on a hill at the highest point overlooking Chastain Park. From The View, you will be able to see the downtown and the Buckhead skylines."

Material amenities near the development include the golf course, tennis courts, horses, Chastain Park Amphitheater, a running track and, of course, the park. "It's got everything," says Berzack. Amenities at the development include a heated pool, clubroom, media room, business center, storage and glass-enclosed gymnasium.

Target residents include empty-nesters who want to downsize but remain in the area and 25- to 40-year-olds who can afford the luxury high-rise condominiums, especially single females, who desire the Buckhead location and the security provided by The View @ Chastain. Features include underground, gated parking; cameras; 24-hour concierge; and 24-hour security.

As the largest unit at The View is a two-bedroom, two-and-a-half bath, Berzack does not expect to attract families with kids.

In the Washington, D.C., area, Curtis & Facchina Development Company is planning a condominium development with large floorplans. The tallest residential condominium in the metropolitan Washington area, Eighteen 81 will be a 27-story, 183-residence development located in Rosslyn, Virginia.

Units at Eighteen 81, which will range from 1,800 square feet to 5,600 square feet, will sell for $500,000 to $5 million. Curtis expects the development to attract families and couples. "Given the size of the units, it is not a retirement-type development nor does it offer starter homes," says Bob Curtis, president of Curtis & Facchina.

Many of the people interested in Eighteen 81 want to move from the suburbs into the city to facilitate easier commuting. Early interest in the project has come from residents of Maryland, Virginia and D.C., according to Curtis.

The firm is in the process of acquiring the property, designing the building and marketing the units. Construction will begin in 2003.

Like The View @ Chastain, Eighteen 81 promises great views. Located one block from the Metro and adjacent to Key Bridge, Eighteen 81 offers scenic views up the Potomac River and over the nation's capitol.

"There is no other project of this type in the region," says Curtis, adding that Rosslyn is underdeveloped residentially. He explains that the area has not had the high-rise development that other major cities have seen. "There are not the floor-to-ceiling glass walls and unlimited views, which Eighteen 81 will have."

Another project designed with the view in mind is Oasis Singer Island. Developer Richard Dubois has planned a two-tower condominium development on Singer Island in southwest Florida. The 38-unit project will feature one unit per floor, and 85 percent of the exterior walls will be glass. "Owners will be on a floorplate that is a house in the sky," says Dubois.

He developed a condominium project in Naples, Florida, 8 years ago. "It has taken me that length of time to find another piece of property that I thought would be the utmost for the buyers that I cater to," he states.

Beachfront sites are important to his projects; properties located on the ocean gain significant appreciation over the years, says Dubois. "People can always buy a property on a golf course, but golf courses can be built every second day. I can't build an ocean."

Dubois hopes Oasis Singer Island will be as successful as his Naples project, which was delivered to owners in 1994 at prices averaging $675,000. Today, he says, those condominium units are going for about $1.7 million. "I believe the Oasis Singer Island project should double in price for the owners in the next 5 to 7 years," he predicts.

Catalfumo Construction and Development is the general contractor for Oasis Singer Island. The company broke ground on the project in April and expects completion in February 2004. Sixty percent of the condos have sold already, according to Dan Catalfumo, president and owner of the Palm Beach Gardens, Florida-based company. The units, which are 5,179 square feet and include 732-square-foot balconies, are selling from $1.1 million to $2.5 million.

"The project is absolutely first class," continues Catalfumo. To show the quality of the development to prospective buyers, the company has built the sales center for the project as a working model of the condominium units.

Also featuring panoramic ocean views on the beach, in Sunny Isles, Florida, The Cornerstone Group is developing a $100 million-plus condominium tower to be called La Perla Ocean Residences. The site of the development is "one of the last remaining vestiges of beachfront in Dade County," according to Richard Lamondin, president of Cornerstone Premier Communities, which is the condominium development entity of Coral Gables, Florida-based The Cornerstone Group.

La Perla is a 43-story tower with 328 units. Construction on the 2-year project will begin in November or December of this year.

Units will range in size from 907 square feet to 1,743 square feet and will sell for $375,000 to $425,000.

The location for La Perla attracted The Cornerstone Group. "This is a fantastic community right on the beach," says Stuart Meyers, chairman and CEO of the company. "It is close to Broward County, downtown Miami and Miami Beach."

In addition, he says, "The local government is very supportive of the development of high-class residences." Apparently buyers are attracted by the location and the project. In 3 months, Cornerstone accepted 263 reservations -- made with $10,000 checks -- against the 328 units. Potential buyers include "a broad-based mix of locals, some foreign buyers and some second-home buyers," according to Meyers, who anticipates that 30 to 40 percent of the owners will be full-time local residents.

Alliance Construction, a division of The Cornerstone Group, will handle construction management. Kobi Karb was the architect, and International Sales Group will handle the sales and management.

The Cornerstone Group is just beginning to get into condominium development. The company has been in the multifamily business for some time, says Meyers but has always done rental apartments. "We've grown from an affordable developer to a market-rate rental apartment developer and now we are in the condominium area. It is an extension of our multifamily capabilities and our construction capabilities," he says. "We feel that it gives us an opportunity to participate directly in home ownership, which is something that we have wanted to grow into."

He notes, "The margins are better in the condominium business although there is more risk. We saw that risk offset by the strength of the market down here. And the market response has been wonderful."

Looking for the Next Opportunity

Although The Cornerstone Group is just beginning to be involved in condominium development, the company has jumped in quickly. The company is also developing a 156-unit condominium project in the Fort Lauderdale, Florida, area.

Curtis & Facchina, just beginning its first high-end condominium development, is looking for similar opportunities. "We are looking at a number of sites in the D.C. area," says Curtis.

Oasis Singer Island marks Dubois' second condominium project, and his second project in the Southeast. Previously an office developer in Canada, Dubois chose to begin developing in Florida because of the baby boomers moving to the area, the ocean and the wealth being distributed in the area. "If I ever decide to build another condominium, it would be in Florida," he says, "and only on the ocean."

As for Springbok, The View is the company's fourth high-rise project. The three partners started developing townhomes and moved to low- and mid-rise projects before tackling high-rise condominiums.

The market seems to be changing because so many apartments have been converted to condos, according to Berzack. However, he does not see a dwindling market. He asserts that the conversion projects target different buyers than brand-new luxury condos.

"We have existing product that is not completely sold out, so we are selling off planned and finished product," says Berzack. "Right now, the perception is that it is a buyers' market. The numbers give a completely different picture. The absorption in Atlanta in the last 3 months has been about 60 percent of waiting inventory. Specifically in Atlanta, there is no new development on the horizon, especially in Buckhead, where there is a moratorium on sewer permits. In 6 months to a year, basically there is going to be no inventory. In our price range ($210 to $275 per square foot), in the entire Buckhead area, there are 59 new condos available right now. About 37 were absorbed in January, February and March. Basically, at this current absorption, in 6 months there will be no inventory."

"A lot of developers are putting a hold on their plans, and a lot of developers cannot get permits even if they wanted to break ground," he explains.

In addition to supply constrains bolstering the Atlanta condominium market, Berzack credits the drop in interest rates for helping the market to avoid the recession that many businesses have experienced.


©2002 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.