Slow Condo Sales Have Developers Worried

The rush in recent years to build for-sale condos in downtown Winston-Salem and Greensboro is running headlong into the reality of a slowing housing market, cautious buyers and unsold units. As a result, developers are weighing their options. For example, developers behind the Gallery Lofts, a high-end Twin City condo project, are considering shifting from a for-sale to rental model.

While a decision is pending, Judy Siegel, chairwoman of Landex Development LLC, the Baltimore-based builder working on the project with Goler Community Development Corp., said current conditions are making sales difficult.

The 77-unit project -- formerly the Brown & Williamson tobacco plant -- has sold about half of its units, but that took about two years. Siegel said her group is worried that it will take another year to sell out. The project, which was scheduled to start construction Nov. 1, could have started with a rental and sales model, but it made project financing too difficult, Siegel said.

Letters were sent to Gallery's buyers informing them of the possible change and Siegel said all deposits will be refunded for buyers who ask. So far, Siegel said, about seven or eight have been returned.