West Gate development progressing ahead of schedule

KINGSPORT — In a little more than a year, the old Stonegate shopping center on West Stone Drive has gone from an empty slate of asphalt to a budding neighborhood with more than 20 homes under construction.However, due to the demand for new housing in Kingsport, and elsewhere across the Tri-Cities region, this transformation is happening a little more quickly than the developers had planned.Site work on the new neighborhood — now called West Gate — got underway in 2021 with the construction of roads and the installation of infrastructure. The $22.5 million project will include more than 70 single-family houses and 14 townhomes.The plan from the beginning was for the developer to do all of the preliminary work and then sell the lots to D.R. Horton (the largest homebuilder in America), who would then build the houses."Originally, we planned to do it in three phases, but once (D.R. Horton) saw the property and the planned development, they decided to take it all," said Danny Karst. "It made us ramp up much quicker."What was going to be a two- to three-year project turned out to be an 18-month one, Karst said. D.R. Horton will soon take the remaining 50 lots for the houses and the townhouse spots in early January.THE NEED FOR HOUSINGThe housing market in Kingsport — as in many places across the country — is doing rather well these days. In fact, many local Realtors say the market is unlike anything they've ever seen before.In February, Kingsport had more than 600 housing lots in development. Two months later, that number jumped to more than 1,500. New homes are being built at record speed all across the Tri-Cities region to meet the increased demand.Jessica Harmon, assistant to the city manager, said the pace of the West Gate development has been truly remarkable."The property ... had sat vacant for over 18 years, so it is very exciting to have new life being brought to it, with over 70 single-family residential houses planned," Harmon said. "It was an 'out of the box' idea to turn a vacant big box site into a residential neighborhood."BUILDING AN ALLIANCETo meet this regional need for housing, Karst and others have taken a regional approach by building an alliance — one that includes him and his wife Carla, landowners, financial partners, and other investors.This group — dubbed a Regional Homebuilder Alliance — has developments underway in Bristol, Greeneville, Johnson City, Church Hill, Morristown, Jonesborough and Kingsport. Three to four other housing projects are also being looked at for this year, the Karsts added."We are seeing unprecedented growth in Northeast Tennessee" said Carla Karst, of CC Company and Landstar Development. "As new families relocate and local families look to expand, it is important for us to build strong partnerships with local landowners, construction companies and local governments to help meet the needs of our growing region."When researching national trends for fast-growing real estate markets, she said the Tri-Cities ranks in the top regions of the country for cost of living, taxes, and quality of life. While our regional tourism efforts and real estate industry have experienced consecutive record years, the Tri-Cities is increasingly low on housing inventory, the Karsts noted.That's where this regional alliance comes in, by pulling the best resources of people together to get new houses in the pipeline."It is very encouraging to see how this team has come together," said Todd East, a local attorney and core partner in Landstar Development.With an abundance of remote working and work-from-home opportunities, many families are relocating to areas where they can enjoy successful career opportunities, superior school systems and the beauty of the Appalachian Mountains.The Regional Homebuilder Alliance is bringing some of the area's best together to meet the demand for those looking to call Northeast Tennessee home."We've long known our region was the best kept secret in America," said Danny Karst. "This growth brings incredible opportunities for our region's economy, and we are proud to lead the way in creating a partnership that meets the needs of the increased housing demands."