VOL. 133 | NO. 104 | Thursday, May 24, 2018
Developers Plan Six-Story Building in South End
By Patrick Lantrip
A new six-story mixed-use building near Loflin Yard may soon be dotting the South Main skyline. Developers Hamilton & Holliman are seeking a 15-year PILOT (payment-in-lieu-of-tax) from the Center City Revenue Finance Corp. to construct the building on a currently vacant lot located at 27 W. Carolina St.
According to the plans, the new 80,000 square foot building would include 57 apartment units and 8,000 square feet of commercial space.
The total cost of the project is estimated to be just under $8 million.
“With an attractive basis, tightening market conditions, and solid location fundamentals, the site is poised for modernization that will allow it to (be) one of the top apartment developments in South End,” a letter of intent reads in part.
The developers indicated they are hoping to tap into the urban market “renaissance” fueled largely in part by the dichotomous needs of both Millennials and Baby Boomers.
“Rather than building complexes out in the East submarket, which is where the bulk of the office inventory exists, developers and renters alike are focusing on property in the Downtown/Midtown area,” it went on to say.
Currently, the property generates $5,208 in city and county annually. If approved, the project would generate more than $44,000 in taxes during the 15-yeat term of the PILOT, representing a 749 percent increase. The accumulative increase in taxes over that period would be around $585,419, DMC staff estimates.
Per the terms of the PILOT, the developers would have to spend 20 percent of hard and soft costs, or approximately $1.4 million, with certified minority and women-owned business.
DMC staff said they are in favor of this project because it will increase the residential density in at area, which is one of its primary metrics of success.
“It builds on the development momentum in the surrounding area, which includes recent projects like South Junction, Central Station, the Malco downtown theater, and Loflin Yard,” the staff evaluation reads in part. “The project will also add significant commercial space in an area that has largely seen only residential development”