Roberson Square site on the market

Margot Carmichael Lester

You may have noticed the inconspicuous “For Sale” sign stuck in the high grass on the corner of Roberson and South Greensboro streets. It’s no joke. The much-ballyhooed 91,575-square-foot Roberson Square property is on the market.

“There’s no bank willing to finance the project now,” said Elias Schtakleff, a partner in the property. “Carrboro shouldn’t be affected by the turmoil, but banks don’t treat us in a different way – they treat us like we’re like any other developer or builder in the nation. Everything’s on hold in terms of credit.”

Schtakleff declined to provide a firm asking price, but said the partnership is “soliciting offers based on the land value plus the approved improvements.” Orange County land records data show the parcel’s tax value is $309,050.

The project, scheduled to break ground next spring, is now on ice. Schtakleff hopes the financial markets will stabilize and he and his partners can return to the bank for funding to restart the project.

“But it could be nine months or a year,” he said.
In the meantime, Schtakleff says, if they get a viable offer, they’ll take it – reluctantly.

“It took four years to get to this stage and we feel upset we couldn’t continue,” Schtakleff said. “We are just a reflection of the current economy.”

News of the sale took area developers by surprise, but the reason for it did not.

“It’s the smart thing to do if you can sell and make money on it today,” said Kara Pittman Hart, co-owner and broker at Terra Nova Global Properties.

Terra Nova markets The Alberta, a four-story residential/commercial project on the same block, which will feature 23 residential units and street-level offices and retail. Though it has yet to pre-lease or sell any of the space, Hart isn’t worried.

“I’m not too concerned that we haven’t had sales in the first two weeks. Everyone’s kind of in a holding pattern. There’s pent-up demand in Carrboro for this kind of project and right now we’re the only ones [actively] doing it.”

Another developer, Laura Van Sant of Main Street Partners, also remains bullish on downtown development. Her 507,500-square-foot commercial project, 300 E. Main, is proceeding on schedule.

“We’re working with our architect and engineers to develop construction drawings and working with contractors on prices for various pieces of the first phase,” she says. “We still hope to begin work early next year.”

That said, downtown developers know they’re not immune to market ills.

“If the credit crunch drags on, it’s certainly going to make it more challenging to get financing, and we’ll have to be a lot more creative,” Van Sant said. “But we’re in a pretty strong position financially, so we hope the worst-case for us would just be a few months’ delay.”