Sunbelt no longer builders' refuge

REAL ESTATE

In the eyes of national home builders with neighborhoods across a smattering of U.S. markets, the Southeast became a refuge when times got tough.

But even the Sunbelt's steady population growth and retiree migration hasn't been enough to sustain some national builders' interests.

Last week, Los Angeles-based KB Home announced that it was pulling out of Atlanta, costing that market an unknown number of jobs. Beazer Homes, which is based in Atlanta, vacated the Charlotte market earlier this year.

"The Southeast may be better than other parts of the country, but it's still horrible," said Beazer's local division president, Frank Finlaw, speaking in general terms about the residential market.

Homebuyer confidence has been shaken by the growing financial crisis and a diminishing sense of job security. Finlaw says federal lawmakers should create another stimulus package that includes a hefty tax credit that doesn't need to be repaid. (The most recent one worth $7,500 needs to be repaid over the next 15 years.)

KB Home still has a presence in the Charleston market, but it restructured its top management team.

Division president Jeff Meyer is no longer with the company, and the local operation now is being overseen by Wayne Janzik, who heads the builder's Jacksonville division.

Spokeswoman Cara Kane said the company isn't planning to pull out of the Charleston market.

"South Carolina remains an important market for KB Home's business and we look forward to continuing to build high quality homes for families in the area for years to come," she said in a statement.

KB builds homes in the Eagle Run, Gardens at Tanner Plantation, Fairlawn at Foxbank Plantation, Preserve at Charleston Park and Pines at Charleston Park communities.

Cigar sales

The developer behind the Cigar Factory's reinvention has picked a local firm to market the mixed-use property's shops and office space. Grubb&Ellis|Barkley Fraser will be responsible for leasing the 40,000 square feet of retail space and selling 25,000 square feet of offices. The landmark brick structure at East Bay and Columbus streets will eventually house 12 retail spaces ranging from 700 to 16,000 square feet. Already, the space is expected to host a cigar shop and an upscale restaurant run by chef Ken Vedrinski of Sienna and Trattoria Lucca fame.

The former cotton factory, which was built in 1881, is under construction to become a 66-unit condominium building. Simpson Organization Inc. of Atlanta took on the project shortly after it bought the building for about $20 million in mid-2007.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.

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