Cornelius: The Million-dollar house next door

How Cornelius, which only 25 years ago was a cozy mix of farms and older housing stock got to the point of a mini Beverly Hills has everything to do with the lake, our proximity to Charlotte and Charlotte-Douglas International Airport. We haven't seen anything yet.

It had to happen. The upscale neighborhood that 15 years ago redefined Cornelius with estate-like homes, expansive lifestyles and a swank golf course is seeing its first tear downs. Two homes-most people would use the word "fine" in close association with them-have recently been torn down in The Peninsula. Much larger, more amenity-filled homes are going up in their places. Real estate brokers say the trend is likely to continue.

Just like Beverly Hills is known for its remarkable residential areas, so is Cornelius. And it's not confined to The Peninsula by any stretch of the imagination. Shadow Creek has stone "cottages" starting just under $1 million. Lots on Jetton Road that had trailer homes on them three years ago now have CEO-worthy abodes.

These houses compete on a regional level for those people who can afford to live anywhere. Often, it doesn't matter whether they live in Mooresville, Belmont or Cornelius-just that they can quickly get to Charlotte-Douglas International Airport for a flight.

"When somebody falls in love with a piece of property with a mega view, the sky is the limit," says Realtor Sandy Reynolds. "Every view is different, some more spectacular than others. In those cases, money is no object."

According to Wachovia Securities' Chief Economist John Silvia, the lake is "God's gift, or maybe Duke's gift, to the city."

"You've got a lake within 20 miles of a major city. You would have to struggle to find another lake and city situated this way," he says. Thanks to I-77 and the lake, Cornelius is uniquely situated to spawn more and more luxury homes.

For the next 20 years-likely even more-Cornelius will grow "significantly above the rest of the state" in terms of population and income growth. Housing values will boom accordingly.

Silvia owns a waterfront condo in Cornelius and laughs when asked about prices for similar dwellings in Boston or Chicago, suggesting plenty of room on the upside. By inference, those who have lived in other waterfront communities, or at least priced them, know that prices here are still way less-helping to drive demand for posher homes with more amenities.

These are houses with chemical-free saltwater pools. Marble master bathrooms with dual saunas. Kitchens with two dishwashers, two sinks and two refrigerators, not to mention the wine cellar downstairs. Integrated computer systems that control entertainment, lighting and sprinkler systems are de rigueur at these prices.

So are 5,000 to 10,000 square feet in which to roam around.

"Tastes are getting more luxurious. What seemed to be the very best 10 years ago today is at a whole new level, especially in terms of kitchens and bathrooms," says Abigail Jennings, president of Lake Norman Realty Inc. Some of the most expensive stoves in today's typical mansion cost as much as an entire kitchen in a tract home. Corian used to be a big deal, Jennings says, now acres of granite are standard in a multi-million dollar home. "There is more attention to detail, a good positive trend," Jennings said, with deep crown moldings and built-in cabinetry.

By all accounts, Cornelius' luxury sector is plugging along, hampered only by the state of a national housing market that is keeping would-be Golden Crescent residents from selling their current homes to get here.

"The area is still super hot," said Cornelius ReMax realtor Sandy Reynolds. "People just can't sell in order to get here."

Consumer behavior ultimately plays a large role in the direction of the market.

If people believe the climate is wrong for purchasing real estate, they will keep their money, and purchasing power, to themselves, thereby contributing to the market's downturn.

Conversely, optimism about the market can keep consumers spending, blunting the edge of any slowdown that may be occurring. Economists say there is plenty of reason for optimism in Cornelius real estate, based on, well, real estate. The town is adjacent to the lake and convenient to Charlotte-Douglas.

The market for high-end luxury homes is strong in Cornelius, and growing, putting it on a path that could one day rival such pockets of suburban prosperity Greenwich, Ct., Grosse Pointe, Mi., Kenilworth, Ill., and Chevy Chase, Md.

Urbane wealth settled in and got comfortable.

In a newer, more entrepreneurial economy, entrepreneurial wealth is settling into Cornelius. A careful study of backgrounds will show former top officials from not just Charlotte companies, like Wachovia and Bank of America, but national and international companies like Google, General Electric and of course, the NASCAR race teams. Their appetite for houses befitting their station-or corporate entertainment requirements and extended families-is voracious.

Interest in teardowns continues unabated, but the next wave may be high-end condos, with all the luxuries of a fine home, in a smaller package with no maintenance issues.

"There's no more space in Cornelius, and I think it's a great boost," Reynolds said. As the population ages and baby-boomers enter retirement in increasing numbers, the market for luxury appointments will only get deeper in the coming years. Now, Realtors say, baby-boomers, as empty-nesters, are looking for a three-car garage, and a bathroom with heated floors and towel racks.

With an increasingly affluent population, what happens to the corner barber shop or the old watering hole? They're disappearing as the nature of the community changes.

Is it progress? Most people say it's good, in spite of the ever-diminishing local character. "There's almost no way to retain it, Cornelius will become much more of an affluent community, more so than five or ten years ago," Silvia says. As far as the younger generation of natives, Silvia says the growth and bodes well. Education is the key, as new jobs, requiring 21st century skills, come to Cornelius, including the satellite offices of Fortune 500 companies.

The Village at Lake Norman will be as dramatic a change in the town's history as Lake Norman was 45 years ago. When fully built out, the project will have up to 2.4 million square feet of shops, condos, restaurants, offices and two hotels. Some of the offices will be 10-stories tall, dwarfing any other building in Cornelius.

The project will also include road improvements that will support even more growth. The Phoenix-based developer has agree that the project will include widening Interstate 77 to three lanes between Exits 23 and 28, adding an interchange at Westmoreland, making Westmoreland a four-lane lane boulevard, straightening the Bailey Road curve, building a flyover to the west side of I-77, building a connector road from the flyover to Westmoreland that connects to Northcross. The developer, Cornelius-Bromont, will contribute almost $4 million to town projects including a satellite police station, a fire truck and $850,000 to Habitat for Humanity for affordable housing.

The total build-out is on the order of $500 million. "This will change Cornelius forever," says Jim Bensman, a corporate CEO and a member of the Town's Board of Commissioners.