Ellington

Jimmy Hudson, owner of Hudson Companies, Inc., is not a patient man. He speaks in crisp, short phrases, talks as he walks, and delegates to trusted staff . Nonetheless, the 53-year-old commercial real estate developer says his first foray into home building — Th e Terrace at Frazier — forced him to waddle like a proverbial turtle rather than leap like a fast-moving hare. “My thought process,” says Hudson, “had to be much longer term.”

A hallmark of Hudson’s career, in fact, has been hurry up, not wait. A Baylor School graduate, he became the youngest member of the 92nd Tennessee General Assembly at the age of 23. At 24, he started his own property development firm.

Today, Hudson Companies, Inc. can claim to have created 3 million square feet of commercial space. Hudson serves as chairman of the Carter Street Corporation, which manages the Chattanooga Convention and Trade Center, and sits on several elite boards. His client list includes Blue Bell Creameries, Apria Healthcare, BlueCross BlueShield of Tennessee, Verizon Wireless, Taco Bell, and — with affiliate Ellis and Grubb — Chattem.

But commercial development failed to entirely hold Hudson’s interest. “Three mayors ago,” as he puts it, Hudson gave in to the siren’s call of “mixed-use” on the North Shore.

At the turn-of-the-century, Frazier Avenue and neighboring streets bustled with stores and commercial traffic, explains Jenny Shugart, the city’s historic planner. Then, as now, bridges created a natural link with downtown, creating a complex fabric of people living, commuting, working, trading and playing.

Today, building in the area—around Manufacturers Road, Cherokee Boulevard, Frazier Avenue, Forest Avenue and Tremont Street—requires approval by the North Shore Design Review Committee, a panel of citizens with building experience and ties to the neighborhood, appointed by the mayor. The group requires turn-of-the-century style, modest building heights and, generally, storefronts next to sidewalks. Th e goal? A pedestrian-friendly place for people to live, play and work as they might have a century ago, notes Shugart.

Long before the present-day luxury condo boom, Hudson says he felt up to the challenge of combining offices, retail stores and luxury condos on a tiny North Shore lot. In the late 1990s, he approached Mayor Jon Kinsey’s staff for permission to buy a city-owned lot next to one he owned at the corner of Frazier Avenue and Tremont Street.

From the beginning, the challenge centered not on style, skyline or price tag, but on parking. Groups including city designers, public works officials, neighboring businesses, local residents and transportation gurus politely pressed for public parking as well as an electric shuttle from downtown to the North Shore.

Hudson, who jokes about having lived “in every neighborhood in town, except Lookout Mountain” says the planning was worth it. “The review process added years to the project, but it was beneficial,” he says. “You want the neighborhood to enjoy their neighborhood. It took away some fears and gave us some insight as to things that would work and fit.”

Early in 2005, the North Shore Design Review Committee approved Hudson’s plans. Hudson owned the land; CARTA would own and operate the garage. By winter, 2008, a new $5 million public parking garage was open and CARTA had launched a shuttle stop. A month later, The Terrace at Frazier opened next door, offering impressive amenities including flexible floor plans, nine-foot ceilings, luxurious hardwood floors and custom cabinetry—as well as private parking and security.

Additional challenges, however, still loomed. In late 2008, a housing recession peaked just as the North Shore became awash in new mixed-use and residential construction. Hundreds of condos came online at One North Shore on Manufacturers Road, 50 units were becoming available at BridgeView on Cherokee Boulevard and, just across the street, 417 Frazier off ered 12 condos. “From a sales standpoint,” says Hudson, “our timing could have been a whole lot better.”

If location is everything, as Realtors often claim, then Th e Terrace offers everything. But for some, its solid brick-and-concrete construction feels too “hard” for a home, notes Hudson. Creating a building for the ages just made sense to him, he explains, pointing out Th e Terrace’s classical proportions and hint of Prairie style. “It has just enough design features to bring in a taste of residential,” Hudson says of his well-constructed, soundproofed project. “It reflects good urban style.”

To encourage sales, the firm began to furnish model units. Originally, the units were offered as completely customizable frameworks, typical in commercial developments. But homebuyers in the residential market are more “hands-on,” says Hudson. “They need to see it, touch it, feel it.” He also learned they are “devilishly fascinated with details.” More at home with steel girders than granite countertops, the “level of finish” required to attract condo buyers exceeded his expectations. “The details of decorating, style and taste were introduced into my process,” laughs Hudson, “and that’s not what I do day in and day out.”

More than 10 years from conception to its first residential sale, The Terrace is now finding its footing. With prices from $281,000 to $5 million, units at the Terrace at Frazier are among the most luxurious in the North Shore market. Regions Bank, the lender for the project, opened a branch at The Terrace late last year. Last month, one residential unit had sold, and another was pending. Prospective buyers include retirees, local residents, and “people moving in from Atlanta to California,” says Hudson. He expects the project to sell out in two or three years.

Despite adjusting his budget “every day” in the recent economy, Hudson keeps a positive outlook. “The quality, location and price will hopefully overcome this downturn,” he says.

Would he do it again, knowing new construction on Cherokee Boulevard will knit Manufacturers Road and Frazier Avenue together, spilling over into North Market Street and surrounding neighborhoods? “My first reaction is ‘no’ but I know it’s not the right answer,” says Hudson, reflecting on his achievement. “Yes, I will probably do it again.”