The developers of Vsion — a 110-unit condominium complex slated for an old office building in Columbia — have called off the project, citing slow pre-sales and a tough economy.

But at the same time, a local optometrist is set to build the city’s most expensive condos. The 11-unit building in the Vista will have a penthouse selling for $1.5 million, which could set a record for Columbia.

Fred Delk, executive director of the Columbia Development Corp., said the trend is toward smaller projects, and more expensive condos and town houses.

The reason?

Banks now require that 60 percent to 75 percent of the units be sold before construction begins or they might not lend developers money for a project. And it’s easier to presell six or seven super-high-priced condos than 50 or 60 moderate to expensive ones.

“We’re just not seeing the huge numbers (of units being built) as we’ve seen in the past,” Delk said. “Everything is going to be smaller and more focused.”

Delk said the downtown market is healthiest at the extremes.

Lower-priced housing from $150,000 to $250,000 at developments such as The Battery at Arsenal Hill are selling. And the most expensive units — $750,000 and up — are selling at developments like City Club on Gervais Street.

“It’s the $350,000 to $600,000 (units) that aren’t moving,” Delk said.

Developers Jeff and Tom Prioreschi cited pre-sales of only 30 of the 110 units in Vsion as the reason for canceling the project.

“We couldn’t get to our pre-sale barrier,” Tom Prioreschi said of the project, which was announced nearly two years ago. “Capital markets have collapsed, and it’s almost impossible to get financing.”

For new projects, banks are asking developers to presell at least 60 percent of their condo projects.

“I would say that would be a general rule,” said John Hipp, the South Carolina president of Ameris Bank. “Anything that has a speculative nature, the banks have become more careful about this past year.”

Banks still will lend money to developers, Hipp said. But those pitching condo projects, even in a market such as Columbia, can expect higher pre-sale requirements and can anticipate having to put more money down, compared to two years ago.

However, the economy is working for optometrist Earl Loftis.

He and his wife, Tammy, have put a significant amount of their own money into the project, so the tight credit market hasn’t really affected The Lofts at Printers Square, which has been in planning for three years.

Loftis said the Lady Street project, to be built on the site of his Eye on Gervais office, has benefited from interest rates that are lower this year than last.

“In a lot of ways, the slowdown is working in our favor,” he said.

The 2,200-square-foot to 3,400-square-foot condos will sell for $739,000 to $1.5 million. The location is next to Trustus Theatre and the Publix grocery store.

“We’re in the walking Vista,” he said. “You can take the elevator and walk out to the Publix. You don’t really have to ever crank your car.”

The Prioreschis were selling units in the 10-story building at Marion and Lady streets for $158,900 for 580 square feet to $757,000 for 2,226 square feet.

The condos were to include a pool, clubhouse, exercise facility and concierge service. There also was to be a hotel-style guest suite available for residents to offer visitors. A one-story parking deck was to be built over an existing parking lot.

The father-and-son team, pioneers in the downtown market, said they are moving forward with other announced projects despite the problems with Vsion.

They plan to convert the 42 units in the Tapp’s Building on Main Street from apartments to condos and to turn the old fire department headquarters on Senate Street in the Vista into condos and retail.

They have called those who had contracts in Vsion to offer them space in those upcoming projects or in their 29-unit 1520 Main building on Main Street.

Jeff Prioreschi said the downtown residential market is strong, interest rates are down, and there is plenty of housing around at a good price. But banks and buyers are jittery over the bad buzz emanating from slumping economies in California and Florida.

“I heard a good quote about the economy the other day,” he said. “‘Perception has trumped reality right now.’ And I think that’s true.”

Staff writer Ben Werner contributed. Reach Wilkinson at (803) 771-8495.