The suburbs haven1t lost all their charm. But there continues to be a growing number of people who are foregoing the suburban scene for a more convenient location that caters to their hectic and active lifestyles. The result? A multitude of new high-rise multifamily developments in metropolitan areas. The Southeast, in particular, has seen a wave of this type of development due to consumer demand, city plans for revitalization and a dwindling amount of land space in urban areas.

"The national trend toward more high-rise multifamily development in many cities is due to the fact that so many amenities are available to people in cities," says Mark Obrinsky vice president and chief economist of the National Multi Housing Council. "We' still seeing people move to the suburbs, but in the last 5 years, we1ve seen a lot of people move back to the cities."

Obrinsky notes that this has created a demand for all types of housing, but especially higher-end, high-rise multifamily housing in cities. "Baby boomers have more time and more money to take advantage of amenities that cities have to offer," he says. "The fastest growing renters are the higher-end renters ($50,000 income) who have a renewed interest in renting."

Part of that renewed interest comes from a national push to lead a simpler, yet more active and enjoyable lifestyle. "People are living healthier and longer and enjoying full, more productive lives," says Martha Vitkovich, project manager of a three-phase, high-rise development by The Related Group of Florida. "Empty nesters, in particular, are young and vital and want to enjoy their remaining years without having to be tied to a yard or home. So those people are flocking to high-rise multifamily units."

Cities and developers are also leading the trend. "We are seeing more and more high-rise product being proposed and delivered than we have in a long time," says Richard Donnellan, Jr., principal and managing director of Atlantic Realty Partners. "A lot of the planning authorities in Florida have tried to really promote the redevelopment of the urban in-fill areas to get away from urban sprawl, which has been pretty typical of development activity throughout Florida, but certainly in South Florida. The authorities have been trying to get developers to look at redevelopment opportunities back east along the coastal areas, and now we' seeing a lot of developers doing that in a number of areas, including Downtown Miami, Miami Beach and Coral Gables."

And since more urban development means land is at a premium, developers either choose -- or are forced -- to build up. "Land is so expensive, developers can1t afford to spread out," says Tom Raney, senior vice president of R.J. Griffin & Company. "They have to get more units per acre to justify the cost of the land."

Markets for High-rise

High-rise multifamily development continues to hit fast-growing urban markets like Atlanta, Charlotte, Hilton Head Island, Richmond, South Florida and Washington, D.C., but it' also popping up along the Gulf Coast in resort communities, according to Raney. "In resort areas, high-rise and mid-rise residential has been very strong over the last 6 to 8 years," he says. "It' always been strong in South Florida, Ft. Lauderdale and Miami, but in the last 8 years, the high-rise and mid-rise residential condo resort markets all along the Gulf Coast, Paulie' Island, Hilton Head Island and the East Coast have been really hot."

Atlantic Realty Partners is active in the Fort Lauderdale market with several new high-rise developments. Sunrise Harbor on Seminole Road is a 16-story, 352-unit development, offering concierge and valet services, a health and fitness club and a business center, among other amenities. Also recently completed was New River Village, a 10-story, 236-unit building on Fifth Avenue and Bridgeside Place on 32nd Avenue, with 16 stories and 246 units. Both offer a range of amenities as well.

There are a number of other high-rises currently proposed in downtown Fort Lauderdale, according to Donnellan, and the area is likely to see more of the same. "We1ve seen the development trend continue to move northward," he says. "In Palm Beach County, there have been a number of properties either started or recently completed, but it' really occurring throughout the tri-county area in each one of three counties."

Donnellan notes that re-gentrification of areas like Miami Beach has played a part in the trend. "Miami Beach had become economically limited to senior housing, and there was really very little commercial activity. Within 5 years, that area started seeing a lot of renewal. That type of renewal has since worked its way up the coast to downtown Hollywood, Fort Lauderdale Beach, downtown Del Ray -- all of those small coastal communities that were flourishing in the Ø50s and 60s until suburban development kicked in. Now those suburban people are returning, and that has created the demand for this type of high-rise multifamily development."

Another Florida high-rise is Ocean III, the third phase of a development by The Related Group of Florida. Located in Sunny Isles Beach on 3.5 acres with 300 linear feet of oceanfront, the development features 37 stories with 215 units and 14 private beach cabanas. The North Miami-Dade location provides residents easy access to the international airports of Fort Lauderdale and Miami as well as convenience to dining, entertainment and sports options available from South Beach to Las Olas Boulevard.

Also by The Related Group of Florida is Murano Grande at Portofino, part of a 7.08-acre site with 700 linear feet of bayfront. This tree-tiered tower in Miami Beach has 270 residences and offers homeowners easy access to all the shopping, dining, sports and entertainment of South Beach and greater Miami.

R.J. Griffin & Company is building Hammock Beach, a 12-story, 750,000-square-foot luxury condominium located in Palm Coast Florida, just north of St. Augustine. It is the ninth project the company has built for Drake Development and the 28th opportunity to team up with architect Jenkins, Hancock and Sides. Hammock Beach will have 148 luxury condominium units on floors three through twelve. The first two floors will contain parking, a full-service spa and a restaurant/lounge. This project will be completed in late 2002.

Memphis is seeing more interest in high-rise multifamily development due to the increased focus of downtown revitalization through the Downtown Core Redevelopment Plan, according to David Shores, president and CEO of LEDIC Management Group, Inc. "Memphis high-rise developments are concentrated in the downtown central business district; however, we are seeing that developers are noticing the opportunities in other areas of the city," says Shores. "This is evidenced by the planned development of The Highlands, a 107-unit, four-story building with attached garage on a 3-acre site in midtown Memphis."

LEDIC Management Group currently manages four multifamily high-rise developments in downtown Memphis. These properties range from older developments to recent conversions of historic buildings. One of the most interesting is No. 10 Main. This 112-unit, 16-story building was formerly the historic Commerce Title Building, built in 1905. It underwent a dramatic conversion to a multifamily property and offers residents varied and unique amenities, including a rooftop party area with outdoor kitchen.

Construction recently began on Grandview at Skull Creek on Hilton Head Island, South Carolina. The three-building, four-story luxury condominium on the intra coastal Waterway is being constructed by R.J. Griffin & Company. Project owner is Waterway Development Associates LLC, and the architect is Niles Bolton Associates. Grandview at Skull Creek is slated for completion in the summer of 2002.

Atlanta is another booming city for high-rise multifamily, largely spurred by residents longing to escape long commutes from the suburbs. "I think Atlanta has the longest commute time of any city in the country, so a lot of people who have moved out of the city are now trying to get back in," Raney speculates.

One of R.J. Griffin & Company' biggest projects in the works is 933 Peachtree, a mixed-use, 21-story tower of 498 apartments and condos in Midtown Atlanta. Kaplan Companies just announced The Waterford on Piedmont, a 153-unit condominium building, conveniently situated between downtown and Piedmont Park. The Museum Tower at Centennial Hill is a new project in the heart of Atlanta' growing arts and culture center. This $130 million, mixed-use development features 162 one- and two-bedroom condominium homes, lofts and penthouses. And Post Properties is building Post Peachtree, a 121-unit high-rise community currently under construction in Atlanta' Buckhead district.

Finally, in Charlotte, Summit Properties just completed a nine-story, 266-unit mixed-use building with three levels of underground parking. The development won "best mid-rise and high-rise multifamily development of the year" for 2001 by The National Association of Homebuilders.

R.J. Griffin & Company recently completed construction of Jefferson Square, a 200,000-square-foot, six-story urban residential building in the Historic Fourth Ward in Uptown Charlotte. This 75-unit luxury condominium features two levels of underground parking and two towers above ground. The project includes a landscaped plaza with a fountain and personal courtyards. Charter Properties is the developer, and Omni Architecture is served as project architect.

The High-rise Horizon

Will high-rise multifamily developments continue to blanket our southeastern cities? It seems highly likely. "We expect developers will continue to have an interest in high-rise multifamily development in downtown Memphis, especially the opportunities for conversion of existing buildings to multifamily units with the ongoing interest in downtown redevelopment," says Shores.

"I think the trend will continue because people like being close to work," says Donnellan. "Secondly, with these communities that are redeveloping, you' seeing a resurgence of new restaurants, boutique shops, resident services and entertainment. All of that is appealing to the people who are looking for change from the typical suburban type of lifestyle."

Raney sees an eventual lull. "I sense that it has to slow down at some point. But right now, there are some quality projects going on in areas like the resort markets that are still selling well. So it hasn1t slowed down yet."


©2001 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.