Leon Industrial, a Leon Capital Group subsidiary, has paid $11.5 million for a 120,000-square-foot industrial property in Rock Hill, S.C. Graham Capital sold the asset, while Avison Young brokered the transaction on its behalf and will also provide leasing services for the new owner.

Leon Industrial will implement a substantial improvement and renovation program at the Class B facility to attract tenants in need of small-bay space.

Measuring nearly 8 acres, the property includes one grade-level door, 10 dock-high doors and two exit ramps—with a third one under construction. Leon Industrial’s upcoming changes will include an upgraded exterior, lighting and parking space enhancements.

The 1974-built facility is at 2690 Commerce Drive, near Interstate 77. Charlotte is 23 miles from the property while Charlotte Douglas International Airport is within 25 miles.

This is the Texas-based buyer’s first acquisition in metro Charlotte, N.C. Leon seeks to further expand in the Southeast region and has recently established its Charlotte office, according to Charlotte Business Journal. The asset is fully vacant, the same source shows. It last changed hands for $10 million in 2022, CommercialEdge information shows.

Avison Young Principals Chris Loyd and Tom Tropeano, together with Vice President Ryan Kendall worked on behalf of the seller and will provide leasing services on behalf of the new owner.

Charlotte’s affordable industrial product

Industrial sales volume in Charlotte reached $1.5 billion in 2024, a recent CommercialEdge report shows. Assets changed hands at an average of $89 per square foot—the lowest among Southern markets. The national average stood at $129 per square foot. As of January, Charlotte’s 7.4 percent vacancy rate was one of the lowest in the region, surpassed only by Houston (6.5 percent) and Nashville, Tenn. (6.8 percent). The national figure stood at 8 percent.

A recent notable acquisition for the metro was Stonelake Capital’s $13.5 million deal. The company picked up a 123,140-square-foot, fully leased facility from Steins Fiber. Avison Young also brokered this deal on behalf of the buyer.

The post Leon Industrial Enters Charlotte With $12M Purchase appeared first on Commercial Property Executive.

Westwood Financial has purchased Eastway Square, a 130,156-square-foot shopping center in Charlotte, N.C., from New Forum Partners. Berkley Capital Advisors arranged the sale.

The property has been under New Forum Partners’ ownership since 2020, when the company acquired Eastway Square from BC Wood Properties for $12.5 million. Atlantic Union Bank originated a $9.3 million permanent acquisition loan for that transaction, according to CommercialEdge information.

Completed in 1991, Eastway Square is anchored by regional supermarket chain Food Lion. The 14.7-acre property is located at 3211 Eastway Drive, at the traffic intersection with Central Avenue and less than 5 miles southeast of downtown Charlotte. The tenant roster includes Ross, America’s Best, Papa Johns, Subway, WingStop, Dental Works and Hibbett Sports.

Eastway Square serves more than 311,000 residents on a 5-mile radius, with an average household income above $112,000. It is one of several grocery-anchored retail properties Los Angeles-based Westwood Financial owns in Charlotte. These include Prosperity Village Square, Steele Creek Crossing, Steelecroft Shopping Center and The Arbors at Mallard Creek.

In today’s retail landscape, developers are increasingly focusing on leveraging location analytics and understanding consumer patterns, so as to create shopping centers that are not only profitable but also integral to the community’s lifestyle.

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Stonelake Capital Partners has purchased a 123,140-square-foot industrial building in Charlotte, N.C. Albany, N.Y.-based Steins Fiber sold the property for $13.5 million, Mecklenburg County public records show.

Avison Young arranged the transaction on behalf of the buyer, while Piedmont Properties represented the seller.

The deal marks Stonelake Capital Partners’ second off-market industrial purchase in the metro. The company entered the Charlotte industrial market in late 2024, with the acquisition of a fully occupied, 402,390-square-foot facility. At the time, Stonelake Capital Partners paid $51 million for the property, which is situated within the Concord Airport Business Park. That transaction was also arranged by Avison Young.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The property is at 6000 Old Concord Road and it’s fully leased to Foundation Building Materials and Dixie Plywood & Lumber Co., CommercialEdge shows. The asset allows easy access to interstates 485, 85 and 277. Charlotte Douglas International Airport is within 13 miles, while Concord, N.C., is 22 miles away.

The building features 22-foot clear heights, 13 dock high doors, one grade level door, LED lights, skylights, a fenced truck court and potential for as much as 2 acres of outdoor storage space. Avison Young’s Principals Chris Skibinski, Henry Lobb, Vice president Abby Rights and Associate Broker Jewell Gentry worked on behalf of the buyer. Partner Will Jenkins, Director of Investments Marc Hedrick and Investment Associate Jack Harvey with Stonelake Capital Partners also assisted. The seller was represented by Piedmont Properties’ President Scott Hensley.

Strong industrial activity

Industrial properties traded at one of the lowest average sale prices in the South region, of $79 per square foot, a recent CommercialEdge report shows. Charlotte’s industrial sales volume stood at $781 million, outperforming Baltimore ($486 million) and Memphis ($362 million). The metro maintained its position as one of the South’s tightest markets, with an industrial vacancy rate of 5.4 percent, below the 7.5 percent national average.

In December, INDUS Realty Trust acquired a majority stake in a 21-building industrial portfolio with assets in Charlotte and Charleston, N.C. Dubbed The Carolinas Portfolio, the 4.3 million-square-foot collection is valued at $575 million. Earlier last year, LM Real Estate Partners paid $97 million for an approximately 1.4 million-square-foot industrial property in the area, in a deal brokered by Avison Young.

The post Stonelake Capital Picks Up Charlotte Facility appeared first on Commercial Property Executive.

INDUS Realty Trust has purchased a majority interest in a 4.3 million-square-foot industrial portfolio, comprising 21 buildings in Charlotte, N.C., and Charleston, S.C. Childress Klein owns The Carolinas Portfolio, now valued at $575 million.

The acquisition recapitalizes about one third of CK’s 13.2 million-square-foot logistics inventory. The firm retained a minority ownership stake and will continue to manage and lease the facilities.

Eastdil Secured worked on behalf of Childress Klein in arranging the transaction.

READ ALSO: ‘Big D’ Industrial Stays on Top

The Carolinas Portfolio comprises 16 buildings in Charlotte and five in Charleston and includes last-mile, regional and bulk logistics properties. The buildings and individual tenant suites average 205,000 and 78,000 square feet, respectively, and were 94 percent leased at the time of the deal. The assets carry a weighted average age of 13 years.

One of the properties in the portfolio is Nevada Business Park, a three-building campus totaling 319,500 square feet. It features rear- front-loading configurations. The almost 32-acre park came online last year and is at 2011, 2101 and 2121 Nevada Blvd.

INDUS’ recent industrial expansion

INDUS currently owns or has majority ownership in industrial properties and developments totaling 13.6 million square feet. The company’s assets are in North Carolina, South Carolina, Connecticut, Pennsylvania, Florida, Georgia, Arizona and Tennessee.

Last month, INDUS entered the Phoenix market with the acquisition of Phoenix Airport Logistics, a 393,484-square-foot warehouse for $72.4 million. The building came online in 2016 and, at the time of sale, was leased to five tenants.

Earlier this year, the firm also acquired Primark at Imeson Park, a 550,243-square-foot facility in Jacksonville, Fla., from VanTrust Real Estate. Primark uses the facility as its second distribution center in the U.S. and the first in the state.

The post INDUS Acquires Stake in 4.3 MSF Industrial Portfolio appeared first on Commercial Property Executive.

Once known primarily for its role as a financial hub, Charlotte is now a more diverse, dynamic market. To accommodate this ongoing change and the shifts in work patterns, office landlords and developers are rethinking the role of office buildings.

Tenants are favoring spaces that elevate the employee experience by offering premium amenities and flexible layouts tailored to evolving workstyles. Newer or recently upgraded properties are consistently outperforming older office stock, much like in other parts of the country.

Crescent Communities, a real estate investor, developer and operator of mixed-use communities, has several large projects underway in the Charlotte area and Managing Director Sagar Rathie anticipates steady demand for office space in the coming years. We asked Rathie to talk about Crescent’s flagship projects and to share his perspective on the city’s competitive office market at large.

READ ALSO: Charlotte Office Investment Off to Stronger Start in 2024

How would you describe office space demand in Charlotte?

Rathie: Office space demand in Charlotte has shown interesting dynamics as the workforce adjusts to a new era defined by hybrid work. Our experience and recent data indicate that demand is on the rise. Over the past several quarters, we’ve observed steady increases in both tour activity and new lease deals, pointing to sustained interest from companies seeking modern, well-located office spaces.

A notable trend we’re seeing is the flight to quality, with occupancy rates 85 percent higher in newer or recently renovated buildings compared to older spaces. This aligns with what we hear from employers: Hybrid and remote work trends are likely permanent fixtures, but high-quality office spaces with meaningful amenities are still valued. Employers want to give their employees spaces that make coming into work worthwhile. Offices that offer engaging environments, premium amenities and thoughtful designs that enhance collaboration and productivity.

What’s your competitive advantage in Charlotte’s office market?

Rathie: Crescent Communities’ established assets offer a significant competitive advantage. Our office communities have been strategically designed to not only serve as places of work but also as hubs of activity and convenience for employees.

Take, for example, One Independence Center in Uptown. It recently underwent a massive renovation to meet the diverse needs of today’s workforce—and one of its most salient renovations was the addition of ground-floor retail options that bring vibrancy and convenience to the workday.

For example, the building offers North Carolina’s first Sweetgreen location, New York-style Portofino’s pizza, Coco and the Director coffee shop, and Starbucks, alongside MD Boutique, a wellness-focused med spa that caters to employees looking for quick and accessible self-care options. Our retail offerings are anchored by Monarch Market, Uptown Charlotte’s only experiential dining hall, which opened in late 2023. Monarch Market is designed to be a true lifestyle destination that enhances the entire Uptown streetscape, giving employees an immersive dining experience just steps from their office.

Additionally, the locations of our properties within walking distance or a short drive to major transportation hubs, dining spots, retail and wellness centers give us a competitive edge. This accessibility is a key draw for companies who want to provide employees with a seamless blend of work and lifestyle amenities.

Do Charlotte tenants tend to favor any specific amenities or building features?

Rathie: Connectivity is a top priority for employers, not only in terms of technology but also in creating “third spaces,” which are inviting communal areas outside of traditional workspaces where people can socialize, collaborate or simply recharge. These spaces are becoming essential for companies aiming to foster an engaged workplace culture, and we’ve been intentional about integrating them into the design of our office spaces, like One Independence Center or our recently delivered four-story mixed-use building, Elizabeth on Seventh. Gone are the days of traditional workspaces with cubicles and closed-off offices—employers now seek environments that promote interaction among employees that feel more like home.

Another key feature in demand is natural light. Employers increasingly want work environments that feel open, bright and connected to the outdoors. The benefits extend beyond aesthetics—natural light positively impacts well-being, which is why we design our spaces with ample windows, thoughtful layouts and seamless outdoor access to bring the outside in.

Flexibility is also crucial as employers look to adapt their office layouts to suit evolving work patterns. This could mean multi-use areas that can transition between collaborative hubs and private workspaces or conference rooms that can be easily reconfigured for remote meetings. We design workspaces with this flexibility in mind, creating spaces that can evolve alongside changing needs.

Your Carson & Tryon project seems to be one of the only new office buildings opening in the Charlotte region in the next few years. Tell us more about the particular advantages you see in launching during a time with limited new office supply.

Rathie: What’s been truly driving interest is Carson & Tryon’s prime location bridging Uptown and South End—two of the most desirable office submarkets not just in Charlotte, but across the Southeast. This strategic position will give employees direct access to Charlotte’s vibrant business core while being minutes from South End’s dynamic retail, dining and cultural scenes, providing the best of both worlds.

Potential lessees have also been motivated by Carson & Tryon’s employee-centric design. For example, the building design features 10,000 square feet of activated food and beverage retail, including thoughtfully curated dining options that cater to the needs and tastes of today’s workforce.

In an era when employees prioritize flexibility and experiences that enhance the workday, Carson & Tryon’s combination of premium amenities and unbeatable location has positioned it as a top choice for companies looking to elevate their office presence.

Another project you have in the works is The River District mass timber office development. What impact do you expect it to have on Charlotte’s office landscape? 

Rathie: As the only North American subsidiary of Sumitomo Forestry, Crescent Communities has a unique leg-up in mass timber construction, allowing us to leverage cutting-edge techniques and materials that align with global sustainability goals.

Mass timber offers several distinct benefits that make it an ideal choice. From a construction perspective, it’s faster to build, generates significantly less waste and offers more design flexibility compared to traditional materials. This approach reduces CO2 emissions by 66 percent compared to steel equivalents, which is a huge step in our mission to minimize the carbon footprint of our developments. At the same time, the natural aesthetic and warmth of timber promote a healthier, more inviting environment, supporting the well-being and productivity of occupants. Mass timber construction is not only an investment in a more sustainable future but also a way to create spaces that remain relevant over time, designed to support environmental health and the overall wellness of employees.

What specific employee-centric amenities are planned for these office projects to support wellness, productivity and a positive work-life balance?

Rathie: We recognize that supporting employee well-being is essential to attracting and engaging top talent. Our office projects are designed with employee-centric amenities at their core, with highlights including Carson & Tryon’s 5,000-square-foot dedicated indoor and outdoor fitness studio space, its 8,000-square-foot sky terrace and its bespoke indoor and outdoor lounge designed to accommodate everything from collaborative meetings to quiet reflection or after-work events. One Independence Center’s transformation of the ground floor into a lifestyle and entertainment destination for Uptown workers creates a vibrant space for employees to unwind and enjoy high-quality food options during or after the workday.

Future workspaces at The River District features expansive windows for natural light, surrounded by trails, green spaces and views along the Catawba River, encouraging employees to take breaks, exercise and connect with nature for mental and physical wellness.

Located in Charlotte’s historic Elizabeth neighborhood, Elizabeth on Seventh recognizes that art and aesthetics play a crucial role in supporting wellness and a positive work-life experience. We curated public art throughout the property to transform walls, entrances and other spaces into vibrant, uplifting creations.

How are all these projects designed to accommodate evolving tenant needs over time?

Rathie: Our office projects are designed with a forward-thinking employee-centric approach to accommodate needs well into the future. Recognizing that flexibility is key, we focus on adaptable layouts that allow employers to reshape spaces as their workstyles and team structures change. Open, modular spaces support everything from collaborative gatherings to private work areas, ensuring that the workspaces can evolve as operational needs shift.

To further future-proof our buildings, we emphasize high-quality wellness amenities that cater to the growing demand for work-life balance and employee well-being …

Also, sustainability is a core priority in our developments. As of last year, nearly all our multifamily and office communities feature electric vehicle charging stations. Our office communities are also 43 percent more energy-efficient and 51 percent more water-efficient compared to industry standards. Additionally, we consistently pursue LEED certifications across our commercial and industrial properties, underscoring our commitment to high-performance, sustainable spaces.

How do you expect office demand to evolve in the metro?

Rathie: We anticipate steady demand for office space in Charlotte in the coming years, particularly as companies continue to seek locations that offer a mix of quality and flexibility. While hybrid work is here to stay, newer buildings and properties with updated amenities will continue to capture the lion’s share of employer interest. Charlotte is well-positioned to meet this demand with its growing infrastructure, thriving business ecosystem and appeal as a relocation destination for both companies and individual employees.

The post Crescent Exec Weighs In on Charlotte’s Evolving Office Market appeared first on Commercial Property Executive.

SL Industrial Partners, an affiliate of The Silverman Group, has sold a 402,390-square-foot, fully occupied industrial facility in Concord, N.C. The buyer is Stonelake Capital Partners, which paid $51 million for the asset, Cabarrus County public records show.

The deal marks the buyer’s first purchase in the Charlotte metro. Avison Young worked on behalf of the seller, while Stonelake Capital Partners was represented in-house.

The Class A facility is at 7040 Northwinds Drive NW, within the Concord Airport Business Park. The seven-building industrial campus was developed by The Silverman Group and totals approximately 2.1 million square feet.

The property came online in 2014 as the first building on the campus and includes 36-foot clear heights, four grade-level doors and 84 dock-high doors. Amazon is fully using the property as a fulfillment center.

The one-story building is on nearly 39 acres, close to Concord Padgett Regional Airport and to Interstate 485, that allows easy connection in the area. The property is 17 miles from Charlotte, 23 miles from Charlotte Douglas International Airport and within 64 miles of Winston-Salem, N.C. Vice President Abby Rights and Principals Chris Skibinski and Henry Lobb with Avison Young worked on behalf of the seller. Director Mark Hedrick, together with Investment Associate Jack Harvey and Partner William Jenkins represented Stonelake Capital Partner in-house.

Industrial deals in Charlotte

Charlotte’s industrial sales volume reached $683 million as of October, a recent CommercialEdge report shows. The metro outperformed Baltimore, with $458 million, and Memphis, with $294 million, in the South region. The metro’s industrial vacancy rate clocked in at 4.3 percent, keeping its position as the tightest market in the South, significantly below the national figure of 7.2 percent.

Significant industrial deals closed this year includes LM Real Estate’s $97 million purchase of a 1.4 million-square-foot property. The company picked up the asset from a joint venture between Somerset Properties and Waterfall Asset Management.

In March, Equus Capital expanded its footprint in North Carolina with the acquisition of a nine-building industrial portfolio near Charlotte and Greensboro. The 1.4 million-square-foot portfolio changed hands for $124 million through a sponsored value-add fund called Equus Investment Partnership XII LP.

The post Stonelake Capital Enters Charlotte With $51M Buy appeared first on Commercial Property Executive.

Sterling Organization has sold regional shopping center Windsor Square for $70.1 million to Hackney Real Estate Partners. The 658,000-square-foot asset in suburban Charlotte, N.C., previously traded for $38.4 million.

The seven-building property occupies nearly 64 acres at 1814 Windsor Square Drive, off U.S. Route 74 in Matthews, N.C. Downtown Charlotte is about 9 miles away, and closer at hand, the shopping center is about 1.5 miles north of Interstate 485.

READ ALSO: Retail’s Post-Pandemic Recovery

At the time of the sale, Windsor Square was 97 percent leased. Tenants include Sam’s Club, Kohl’s, Ross Dress for Less, PetSmart, Office Depot, Beall’s and At Home. More than 58,000 people live within a 3-mile radius of the property, with an average household income of about $114,000.

Sterling now owns about 13 million square feet among 73 properties. In September, the company acquired a 994,000-square-foot portfolio of open-air shopping centers in the Atlanta, San Antonio and Washington, D.C., metros for $180.5 million.

In June, the firm closed its Sterling Value Add Partners IV LP. The fund obtained total capital commitments of $600 million, exceeding the $500 million target, and pursues the acquisition of value-add grocery-anchored shopping centers, neighborhood centers and power centers.

Charlotte retail tight

The Charlotte retail market is a tight one, coming in at 3.1 percent vacancy at the beginning of the fourth quarter, according to a Marcus & Millichap report. Some 820,000 square feet is currently under construction.

Companies leased nearly 2 million square feet of Charlotte retail space in 2023, the report shows, with less than a 1 million square feet completed that year. Leasing is down so far in 2024, to less than 1 million square feet. However, asking rents edged up by more than 4 percent this year to about $20 per square foot.

The post Sterling Organization Sells Shopping Center for $70M appeared first on Commercial Property Executive.

Cousins Properties is under contract to purchase Vantage South End, a 639,000-square-foot office complex in Charlotte, N.C., for $328.5 million. The deal is expected to close next month and is subject to customary closing conditions.

A joint venture between Invesco Real Estate and The Spectrum Cos. currently owns the two-building property, according to CommercialEdge information.

The duo completed the campus in 2021 and 2022 with help from general contractor Rodgers Buildings and design firm LS3P Associates. Initial plans for the property also included an 11-story, 200-key boutique hotel.

Vantage South End comprises two 11-story, LEED-certified buildings with floorplates ranging from 21,400 to 31,400 square feet, according to CommercialEdge information.

READ ALSO: Office Vacancy on the Rise in Charlotte

The campus features 45,000 square feet of retail space, a 1-acre park, 18 outdoor terraces, several fitness and conference centers, as well as multiple on-site dining options. In addition, the property has a parking ratio of 3 spaces per 1,000 square feet.

The office complex is 97.4 percent leased with a weighted average lease term of more than nine years. Tenants include CBRE, LendingTree, Alston & Bird and Hartford Insurance.

Located at 1415 Vantage Park Drive and 1120 S. Tryon St., the property is in Charlotte’s South End neighborhood, 1 mile from the city’s downtown. The Charlotte Douglas International Airport is 6 miles northwest.

Charlotte’s office sector faces headwinds

Charlotte’s office investment volume year-to-date as of September amounted to $193 million, according to the latest CommercialEdge office report. Assets in the metro changed hands for $150 per square foot on average, below the $171 national figure. The market’s vacancy rate at the end of the same month was 18.3 percent, 220 basis points higher year-over-year.

In one of the metro’s largest sales through September, Vanguard acquired Centene’s former office complex in Charlotte for $117 million. The financial services company will use the 700,000-square-foot space as the new site for its regional/satellite office. The 91-acre campus is scheduled to open next year.

Other notable deals included KHP Capital Partners’ purchase of The Johnston Building. Spaulding & Slyle Investments sold the 172,382-square-foot asset for $19.3 million in May.

The post Cousins Buys Charlotte Asset for $329M appeared first on Commercial Property Executive.

The joint venture partners plan a five-building development that will have 300 MW of secured power by April 2027, with the potential to increase to 500 MW.

The site is less than 10 miles from downtown Charlotte and has convenient access to the nearby intersection of I-485 and Highway 49.

Additional power

Given an existing adjacent substation, the site will have access to 15 MW of bridging power by the fourth quarter of 2026. Duke Energy has partnered with the developers to build an additional substation to deliver the incremental 500 MW of power, leveraging Duke’s capability to provide over 50 percent renewable energy, thanks to its nuclear power generation.

Simpson Thacher & Bartlett LLP serves as legal counsel to Town Lane, and Arnold & Porter Kaye Scholer LLP serves as legal counsel to PowerHouse. Eastdil Secured LLC advised on the land sale.

In May, a joint venture between PowerHouse and Harrison Street purchased a 50-acre site in Irving, Texas. Plans call for constructing an almost 1 million-square-foot data center campus that will boast 200 MW of power at full build-out.

It marked the duo’s entrance into the Dallas-Fort Worth market and their sixth data center development.

In May, Town Lane closed its inaugural fund, Town Lane Real Estate Opportunities Fund I, with nearly $1.3 billion in total commitments. The fund was oversubscribed and closed on its investor commitments in the first half of 2024, above its initial $1 billion target.

Town Lane was founded by 19-year Blackstone veteran Tyler Henritze and co-founded by Parker Morse, his sister, who was previously at Sycamore Partners for over a decade.

The post PowerHouse JV Plans 2.5 MSF Data Center in Charlotte appeared first on Commercial Property Executive.

As of July, Charlotte had 1.8 million square feet of office space under development across seven properties, representing 2.1 percent of total stock.

The rate was higher than the national average of 1.3 percent and those recorded in most peer markets, such as Raleigh-Durham (2.0 percent), Dallas (1.9 percent) and Orlando (1.2 percent).

The only similar metro with a smaller construction pipeline was Orlando, with approximately 1 million square feet underway.

Charlotte’s overall vacancy and solid pipeline could lead to some office-to-residential conversions, but the metro is not among the top markets in the country for adaptive reuse candidates. CommercialEdge’s Conversion Feasibility Index shows what markets have the most significant office inventories with strong likelihood of repurposing to residential space.

Charlotte’s under-construction pipeline still steady

A significant office project currently underway is 2405 Governor Hunt Road, a 700,000-square-foot development in Charlotte’s University City neighborhood, initially designed to become Centene Corp.’s headquarters in the East Coast region. The campus broke ground in 2020 and was acquired by Vanguard in April for $117 million, for its new regional office. Completion is expected in late 2025.

Another notable development is Legacy Union 600, a 390,000-square-foot project developed and owned by Lincoln Harris. Rising 24 stories at 600 S. Tyron St., this tower will be the fourth office building within the 10-acre Legacy Union mixed-use campus in Uptown Charlotte. Developed in partnership with Goldman Sachs Asset Management, the project broke ground in 2022 and is slated for delivery in late 2025.

Three projects started construction in the first seven months of the year, expected to total 265,500 square feet. Meanwhile, developers delivered two properties totaling 389,984 square feet, marking a 73.6 percent year-over-year drop.

The two new office buildings that came online included the 363,984-square-foot mid-rise at 110 East Blvd., owned by Stiles and completed in March; and the 26,000-square-foot, two-story property at 19525 Jetton Road. The latter came online in January and is owned by Vulcan Property Group.

A slight increase in sales volume

Year-to-date through July, 10 office properties totaling 1.8 million square feet traded in Charlotte for a total of $204 million, marking a 15.6 percent year-over-year increase. Charlotte’s investment activity outperformed Nashville’s ($195 million) and Orlando’s ($126 million), while Dallas led with $584 million.

Apart from Vanguard’s $117 million buy, other notable office deals since the start of the year included the $19.3 million acquisition of The Johnston Building. KHP Capital Partners picked up the 172,382-square-foot asset from Spaulding & Slye Investments in May.

Another significant deal was Montecito Medical Real Estate’s $13.8 million purchase of the 33,891-square-foot medical office building at 1601 Abbey Place. The deal closed in June, with Healthpeak Properties as seller.

Office assets in Charlotte changed hands at an average sale price of $155 per square foot, higher than in Atlanta ($146 per square foot) and Dallas ($116 per square foot). Among peer markets, Austin led with $432 per square foot.

Charlotte’s office vacancy rate on the rise

Charlotte’s office vacancy rate has started to grow since the start of the year—from the 12.8 percent recorded in January to 15.5 percent in April. In July, the rate slightly improved, reaching 14.9 percent.

One notable leasing deal was Tyron Investors’ new commitment at Vantage South End’s East Tower, 286,235-square-foot office building. The tenant is DP World, which uses the space as its new North American base of operations.

At the end of July, the coworking sector in Charlotte encompassed 505,060 square feet, the same footprint that was registered at the end of March.

Among similar markets, only Orlando had a smaller coworking space submarket, totaling 321,187 square feet. The share of coworking space as percentage of total leasable office space reached 1.6 percent—below the national of 1.8 percent and on par with Orlando’s rate.

Year-to-date through July, the flex office provider with the largest footprint in Charlotte remained Regus, with operations totaling 169,787 square feet. The company was followed by Souder Properties, with 95,000 square feet, Hygge, with 92,837 square feet, and WeWork, with 86,000 square feet.

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Constellation Real Estate Partners has acquired 41.4 acres in Charlotte, N.C., for the development of Constellation 485 South, a 374,220-square-foot speculative industrial building. This marks the company’s first project in the market.

The developer purchased the site for $11.8 million from an entity affiliated with Somerset Properties and Waterfall Asset Management, according to The Charlotte Business Journal. Construction is expected to start next month, with completion scheduled for August 2025.

The rear-load facility, designed according to LEED standards, will feature 36-foot minimum clear heights, 65-foot bay spacing, 185-foot truck courts with trailers and 310 parking spaces. Additionally, the property will have 84 trailer stalls and will be able to accommodate tenants needing space from 100,000 square feet up to the entire building.

READ ALSO: I.CON East Special Report: Industrial Opportunity Snapshot

Partners on the project include ARCO Design/Build and OneFourTwo Design Group. Avison Young Principal Henry Lobb, Vice President Abby Rights and Associate Garrott Braswell will handle leasing, while Managing Director Chris Skibinski was tapped to provide capital markets strategic advisory services.

The warehouse will take shape on Continental Boulevard, within 2 miles from interstates 485 and 77. Downtown Charlotte will be some 11 miles from the facility, while the Charlotte Douglas International Airport will be roughly 7 miles away.

Constellation’s recent industrial developments

Constellation 485 South represents the company’s eighth development since its 2021 inception. In January, the firm acquired a 26-acre property in Houston for the construction of Constellation Eldridge, a 537,375-square-foot speculative warehouse. The facility will replace an office building.

A few months earlier, Constellation partnered with Northwestern Mutual for the development of Constellation Mustang Crossing, a four-building campus in Southlake, Texas. The 546,330-square-foot park is set to come online in the first quarter of next year.

The post Constellation Eyes 374 KSF Charlotte Facility appeared first on Commercial Property Executive.

Year-to-date through March, the Charlotte office market had 2.5 million square feet of space under construction across nine properties, representing 2.8 percent of total stock. The percentage placed Charlotte above the national figure of 1.5 percent and the metro also outperformed Atlanta (1.7 percent), Dallas-Fort Worth (2.1 percent) and Phoenix (0.5 percent).

There was not a huge difference from the same period of last year, when the office pipeline had 2.8 million square feet of space, representing 3.8 percent of total stock.

Steady construction pipeline as major projects push through

Notable office projects in the metro include Centene Corp.’s Charlotte headquarters, a development totaling 700,000 square feet in the University City neighborhood. Initially, Centene Corp.’s plans called for a 1 million-square-foot campus representing a $1 billion investment. Ground was broken in 2021 but construction stopped a year later, while in May 2023 it was officially abandoned.

Centene Corp. tapped Cushman & Wakefield to market the project for sale and, in April, Vanguard picked it up for $117 million, planning to make it its regional office. The estimated delivery date was set for January 2025.

Another significant development is the 625,665-square-foot Queensbridge Collective, rising at 1111 S. Tyron St. in the metro’s Midtown South End submarket. The 42-story office tower is built by Riverside Investment & Development and slated for delivery by the end of July 2025. The project is part of the company’s Morehead & Tyron, a $750 million mixed-use community that will include three high-rise properties with luxury multifamily, office and retail space.

The only delivered office property in Charlotte during this year’s first quarter was 110 East, the only Class A office building sited on a light rail platform. Developed by Stiles and Shorenstein Properties, the 370,000-square-foot property was a $186 million project that broke ground in 2022. The joint venture topped out the 23-story high-rise in August last year and delivered it in March.

Sales volume up, still trailing

Year-to-date through March, office sales remained limited in the metro, totaling $53 million, with office assets changing hands at an average of $187.0 per square foot. Across similar markets, Dallas-Fort Worth and Austin led with $159 million in sales volume and were followed by Atlanta and Phoenix, where office investment stood at $73 million.

Charlotte began 2024 with double the amount in sales when compared to the same period last year, when only three office properties changed hands for a combined $25 million.

Notable office deals since the start of the year included ABR Capital Partners’ $11 million acquisition of Scarlet Oak, a 77,069-square-foot office building in Charlotte’s Airport submarket. The Class B office property at 8700 Red Oak Blvd. was sold by Griffin Partners.

In January, a joint venture between Anchor Health and Australian Retirement Fund picked up two medical office buildings in Charlotte and Matthews, N.C., in a three-building portfolio deal. The properties changed hands for a total of $62 million. The Novant & MultiCare On-Campus portfolio includes an 89,000-square-foot building adjacent to the Novant Health Matthews Hospital Campus at 1500 Matthews Township Parkway and a 36,000-square-foot medical office building within Charlotte’s Novant Health Presbyterian Hospital Campus, at 200 Hawthorne Lane.

Charlotte’s office vacancy rate sees slight growth

Charlotte’s vacancy rate clocked in at 14.5 percent at the end of March, up by 320 basis points over the year but still lower than 2023’s highest value—16.1 percent—recorded in September. Furthermore, the metro’s vacancy rate was the smallest when put against similar secondary markets such as Atlanta (16.9 percent), Phoenix at (17.9 percent), Dallas-Fort Worth (21.6 percent) and Austin (22.0 percent).

There were 505,060 square feet of coworking space in Charlotte at the end of March. Across similar markets, Dallas-Fort Worth led with 2.5 million square feet and was followed by Atlanta (2.0 million square feet), Phoenix (1.2 million square feet) and Austin (1.1 million square feet).

On a share of coworking space as percentage of the total leasable office space in the market, Charlotte reached 1.3 percent, below the national figure of 1.8 percent, while Atlanta led with 2.1 percent. Year-to-date through March, the flex office provider with the largest footprint in Charlotte was Regus, with 156,937 square feet. The operator was followed by Hygge, with 92,837 square feet, and WeWork, with 86,000 square feet.

The post Charlotte Office Investment Off to Stronger Start in 2024 appeared first on Commercial Property Executive.

LM Real Estate Partners has acquired 1900 Continental Blvd., an almost 1.4 million-square-foot industrial facility in Charlotte, N.C., for $97 million. The firm financed the purchase with a $67 million loan originated by Voya Investment Management, public records show.

A joint venture between Somerset Properties and Waterfall Asset Management sold the property. Avison Young brokered the deal.

The property previously changed hands in December 2019, when the joint venture purchased it for $60.8 million, or $44.48 per square foot, according to CommercialEdge information.

READ ALSO: Top 5 Metros for Industrial Deliveries

Completed in 1966, the building served as a manufacturing facility for Continental Tire. The asset went through a complete transformation and modernization and is now a distribution facility with 24-foot clear heights.

Other features include 136 dock-high loading doors, 141 trailer stalls and around 500 car parking spots. Cont Tire, Snyder’s-Lance and Deufol are some of the tenants, CommercialEdge shows.

The 69-acre property provides easy access to interstates 77 and 485, while Charlotte Douglas International Airport is some 12 miles away. Downtown Charlotte is within 12 miles northeast.

The Avison Young Investment Sales and Advisory team that brokered the deal was led by Managing Director Chris Skibinski, alongside Principals Chris Loyd and Erik Foster.

Charlotte’s industrial sector remains steady

Charlotte registered $216 million in sales year-to-date through March, according to a CommercialEdge industrial report. Facilities traded for $74 per square foot, half the $147 national average. Meanwhile, the metro’s vacancy rate during the same period clocked in at 3.6 percent, 160 basis points lower than the national average.

In March, Equus Capital Partners acquired a nine-building portfolio totaling more than 1.4 million square feet for $124 million through one of its value-add funds. Investcorp sold the assets.

Other recent deals in the area include Diamond Properties’ expansion in the Charlotte metro with the acquisition of BSN Medical Distribution Facility in Conover, N.C. Founders Properties sold the 149,987-square-foot building.

The post LM Real Estate Pays $97M for Charlotte Industrial Asset appeared first on Commercial Property Executive.

KBS has obtained a $38.4 million loan for the refinancing of Crossroads Distribution Center, a four-building, 496,723-square-foot industrial campus in Charlotte, N.C.’s Airport submarket.

The note supplants an existing $28.8 million refinancing arrangement originated by Citizens in 2020. Joe Donato, a vice chairman at Newmark, led the team that worked on behalf of borrower.

At the Carolinas’ crossroads

KBS bought the Crossroads Distribution Center in 2008 for $26 million, according to CommercialEdge information. The campus, primarily intended for warehousing and distribution users, was built over a nine-year period from 1998 to 2007 and includes facilities ranging from 70,581 to 152,080 square feet.

All the buildings, labeled I through IV, are on Granite Street, roughly 10 miles southwest of downtown Charlotte. The warehouses have tilt-up walls and clear heights ranging from 24 to 30 feet, being surrounded by 110- to 140-foot truck courts and 50-foot concrete aprons. On-site amenities include a lounge and fitness center, as well as a car wash and detailing shop.

READ ALSO: NAIOP Sentiment Index Points to Rising Optimism

According to KBS, many of the property’s tenants sell and ship imported products. Charlotte Douglas International Airport is 6 miles north of the campus.

Crossroad Distribution Center is surrounded by many neighbors in the warehousing sector, including distribution centers used by Amazon and Frito-Lay. Other local businesses leasing space in the area are primarily in the masonry, piping, food distribution and refrigeration sectors.

On the opposite side of Granite Street, Crossroads faces Interstate 77, with connections to interstates 277, 485 and 85, all within 13 miles. The state’s border with South Carolina is half a mile in the opposite direction.

KBS’ Southern activities

Around the same time as the Crossroads refinancing, KBS also extended the maturity date of an $76 million loan encumbering Providence Towers, a 510,529-square-foot office complex in Farmers Branch, Texas. CommercialEdge shows that the note, provided by PNC Bank, was originally set to mature in 2027. The property is now financed through 2029.

The firm purchased the Class A building in 2009 and renovated it three years later. Its current tenants are in the insurance, legal, government and financial services sectors. Transwestern currently handles leasing at the property.

KBS has been active in the Lone Star State’s industrial sector as well. Last month, the firm sold two properties in Austin and Houston.

A 1031 investor represented by MIG Real Estate acquired the Austin property, a 260,112-square-foot light industrial campus that came online in 2002. The 222,750-square-foot light industrial complex in Houston was sold to HPI Holdings LLC.

The post KBS Lands $38M for Charlotte Industrial Campus appeared first on Commercial Property Executive.

Lovett Industrial has broken ground on Orr Road Business Center, an urban infill 282,000-square-foot industrial business park in Charlotte, N.C.

Edifice serves as the project’s general contractor, with Merriman Schmitt Architects having provided design services. Oak Engineering is the civil engineer and Avison Young is in charge of leasing and marketing.

Lake Forest Bank & Trust Co.—a subsidiary of Wintrust Community Bank— provided an $18.4 million construction loan set to mature in 2027, public records show.

READ ALSO: Rising Construction Costs

Spanning nearly 22 acres, Orr Road Business Center will include two multi-tenant rear-load buildings totaling 156,000 and 126,000 square feet, respectively, together with a combined 220 auto parking spaces and 60 truck parking spaces.

Each facility will feature 32-foot clear heights, 6-inch reinforced concrete slabs, 180-foot truck courts and a power capacity of 2,500 amperes, as well as 50- by 54-foot column spacing with 60-foot speed bays. Together, the structures are set to have a total of 60 loading doors and four drive-in doors,

Representing one of the last infill opportunities in Charlotte, the site is at 6830 Orr Road. The property is about 1 mile from the Old Concord Road light rail station, as well as 2 miles from U.S. Road 29 and 4 miles from Interstate 85.

Charlotte’s industrial market performance

According to a CommercialEdge report, Charlotte’s industrial under-construction pipeline is one of the nation’s most robust—presenting 12.3 million square feet as of March—surpassed only by Phoenix and the Dallas-Fort Worth metroplex, which boasted pipelines of 41.8 million square feet and 24.5 million square feet, respectively.

With an industrial vacancy rate of 3.6 percent as of March, the metro’s occupancy was one of the strongest in the country, eclipsing the national vacancy rate of 5.2 percent, the same report shows. However, Charlotte ranked second in the Southeast region, behind Nashville-Knoxville (3.3 percent).

The post Lovett Kicks Off Charlotte Industrial Project appeared first on Commercial Property Executive.

Diamond Properties has acquired BSN Medical Distribution Facility, a fully leased industrial property totaling 149,987 square feet in Conover, N.C. JLL negotiated on behalf of the seller, Founders Properties, also procuring the buyer.

The property traded for $10.3 million, with the help of a $6.2 million acquisition loan from Wells Fargo Bank, according to Catawba County public records. The asset previously changed hands in 2019 for $9.1 million, the same source reveals.

Located at 1011 Keisler Road, the distribution center is fully leased by BSN Medical Inc., which has a remaining lease term of 5 years.  Originally built in 2011 and renovated in 2009, the facility features side- and rear-load configurations, 27 dock-high doors and 82 vehicle parking spaces.

BSN Medical Distribution Facility sits on 17 acres close to Interstate 40, being 20 miles from Lincoln County Airport, 42 miles from Charlote Douglas International Airport and within 47 miles of Charlotte, N.C. Additionally, the location provides easy access to interstates 77, 26 and 85, allowing for easy national and regional access.

The JLL Capital Markets team that negotiated on behalf of the seller included Senior Managing Director Pete Pittroff, Senior Director Dave Andrews, Director Josh McArdle, Associate Michael Scarnato and Analyst Allan Parrott.

Industrial investments in Charlotte

Year-to-date through March, Charlotte had the second largest industrial sales volume across Southern markets, totaling $216 million, according to a recent CommercialEdge report. The metro’s deal volume was outperformed only by Houston’s $314 million. Charlotte industrial properties changed hands at an average sale price of $74 per square foot, the lowest in the region.

A significant industrial purchase in the area was Equus Capital Partners’ acquisition of an 1.4 million-square-foot, nine-building industrial portfolio. The company picked up the fully leased collection for $124 million.

The post Diamond Properties Buys Charlotte-Area Industrial Asset appeared first on Commercial Property Executive.

The joint venture between Stiles and Shorenstein Properties has opened 110 East, a 23-story, 370,000-square-foot Class A office building in Charlotte, N.C. Hastings Architecture designed the $186 million development, while Shelco served as general contractor.

The partnership broke ground on the project in January 2022 and topped it out in August 2023. Global Atlantic Financial Group provided a $137 million construction loan set to reach maturity in January 2025, according to CommercialEdge information.

READ ALSO: Where Office Work Is Heading Now: CoreNet Global Survey

Having received LEED Gold certification and Platinum WiredScore, 110 East Office features 29,000-square-foot floorplates with 13-foot, 4-inch floor-to-floor heights and 11-foot Clear Vision glass. The building also includes 7,000 square feet of ground-level retail and a 900-space parking garage.

Amenities include a 100-seat conference room with a retractable wall providing up to six configurations and a 4,000-square-foot gym. Moreover, the 11th floor has a sky lobby featuring a 3,000-square-foot terrace.

Located at 110 East Blvd., the office tower rises in a 96-walk score area adjacent to the East/West Station Platform, as well as to the Charlotte Rail Train Station. Downtown Charlotte is less than 2 miles away, while interstates 77, 277 and U.S. Route 74 are within a 3-mile radius.

Charlotte’s sturdy office market

The national office supply pipeline bolstered 87.9 million square feet of under-construction space as of March, accounting for 1.3 percent of total stock, a recent CommercialEdge report reveals. By comparison, Charlotte’s pipeline totaled 2.6 million square feet or 3.3 percent of stock, bucking national trends.

Meanwhile, Charlotte’s vacancy rate clocked in at 14.5 percent, well below the national average of 18.2 percent, although up 310 basis points year-over-year, according to the same report. The average full-service listing rate of $31.30 per square foot was also well below the $37.74 per square foot recorded nationally.

The post Stiles, Shorenstein Open $186M Charlotte Office Tower appeared first on Commercial Property Executive.

Financial services powerhouse Vanguard has purchased Centene’s former office campus in Charlotte, N.C. The asset changed hands for $117 million and Vanguard financed the acquisition with a $96.4 million self-financed loan, public records show.

The 700,000-square-foot property located in the University City neighborhood will serve as the new site of Vanguard’s regional/satellite office in Charlotte. The company has more than 2,400 employees in the region, including personnel in financial advice, sales, information technology, human resources and client service.

The new, 91-acre campus is at 2405 Governor Hunt Road, near the Charlotte Blue Line rail link, and is expected to open in 2025. Amenities include dedicated collaboration spaces, a conference center, a full-service cafeteria, outdoor eating and walking areas, EV charging stations and a fitness center.

READ ALSO: Uncovering Regional Disparities in Remote Work

The property has had a troubled history, which is perhaps not surprising, given its timing.

In July 2020, St. Louis–based health-care administration company Centene Corp. chose Charlotte as the site of a new 1 million-square-foot East Coast headquarters. At the time, the project reportedly represented a $1 billion investment.

Slated to come online in four phases, the campus would have ultimately comprised office space, a data center and Centene’s corporate learning and development center. Ground was broken in 2021, but construction stopped after about a year, even though the development was largely complete by then.

By May 2023, with remote work becoming the norm for many large companies and work on the project at a halt, Centene abandoned it and tapped Cushman & Wakefield to market the property for sale.

Post-pandemic doldrums

The metro Charlotte office market is seeing leasing activity slowly recovering from the 2019–2020 drought, though still well below pre-pandemic levels, according to a fourth-quarter report from Avison Young. Investment sales volume, however, continued to fall. Overall direct and sublease availability edged up to an average of 24.5 percent.

This past November, Perkins Fund LP acquired a 107,545-square-foot office building in Charlotte from AEW Capital Management. The five-story Three Water Ridge is in the 11-building Water Ridge Office Park and was fully occupied by Walmart at that time. Notably, the building sold for just $15 million, less than half its previous, 2016 price of $35 million.

The post Vanguard Buys Former Centene Campus for $117M appeared first on Commercial Property Executive.

To convert this 1946-built city landmark into a modern space, The Keith Corp. partnered with Springs Creative, and brought aboard architecture firm Little for design services and brand communication, and Choate Construction for construction services. Initially announced in 2018, with site work set to begin in 2019, the project only took off in 2023 following pandemic-induced delays.

The Keith Corp.’s total investment in this redevelopment amounts to $100 million, of which $55 million is for the first phase. CommercialEdge shows that the company received a $34 million loan from First Horizon Bank last year for the restorative transformation of the historic mill and warehouse. The first phase of The Thread is set to include 150,000 square feet of office space—of which 30,000 square feet will be occupied by textile company Springs Creative as the anchor tenant—and 30,000 square feet of retail space and restaurant venues. For its second phase, plans call for loft-style apartments and additional office and retail space.

Commercial Property Executive caught up with Robert Oppenheimer, senior project architect at Little, who shared details about the vision behind this adaptive-reuse project.

What made you get on board with this redevelopment project?

Oppenheimer: We were approached by one of the ownership partners—with whom we had a long work history—during the speculative office boom, as they were preparing to pull together ideas for an economic development summit in Rock Hill. The project had already kicked off due diligence, feasibility and budgeting. We jumped at the chance to put our expertise to work in the mixed-use realm. This led to us coming on board for the architectural design and execution of the project.

The project was actually set to start before the pandemic, but it was halted. In what ways did the global health crisis reshape your approach?

Oppenheimer: It primarily changed how we worked as a team, as we had just begun working on design development when the shutdown occurred, which meant we had to pivot to virtual meetings. The pandemic had also impacted marketing and leasing the space due to many uncertainties, albeit not as much as other areas in South Carolina that remained open for business. At one time, we did lean into marketing test fits that showcased more open office environments to allow workers more space. High, open structure and access to ample daylight while maintaining a deep floorplate was always an attractive prospect for users, so that continued to play into marketing.

READ ALSO: What Workers Want Now in Office Design

Tell us more about how you preserved parts of the former Baxter Mill building in the new project. Can you expand on the relevance of keeping some of the former building’s aspects intact in terms of practical reasons, as well as for aesthetic purposes?

Oppenheimer: The existing building was in a really good shape. It sounds cliché, but it has really good bones. One would think that having columns every 20 feet would be a detraction, but the feel of the space is different. Having 18-foot, floor-to-floor heights with two-way slabs offer a unique, spacious open environment. This structure is the main feature we wanted to showcase.

We learned that this building’s structural system gave us a lot of flexibility. This is what led us to the updated skin design that removed most of the exterior non-structural solid brick warehouse walls between columns and replaced them with a more dynamic material set that respected the mill building’s industrial roots while creating something new and modern. The team had always wanted to find ways to reference textiles in the design. The concept for the skin came from the tartan grid of the plaid pattern, which has hints of industrial window patterns.

How did you create a lucrative work environment that meets the sophisticated needs and demands of today’s office users?

Oppenheimer: From the project’s inception, the development group had already established a unique opportunity to capitalize on the live-work-play environment as this project is positioned within a larger master plan that includes 1,000 development units. This mixed-use approach plays well in the post-pandemic world. The larger, taller floorplates provide abundant natural light and tenants can easily spread multiple business units across a single floorplate. The Thread is a one-of-a-kind creative office offering in all the Carolinas.

What were some of the biggest challenges you had to overcome while implementing the new design of The Thread?

Oppenheimer: Despite thorough documentation of the existing structure, inevitably, we knew we would make discoveries during construction that would cause challenges. That included discovering foundations of old buildings under the slab, realizing the structure of our monumental stair was not what we thought originally, and the challenge of fitting panelized rainscreen systems into a building where no two surfaces were straight or aligned.

What will make The Thread a mixed-use destination that the entire Rock Hill community will want to come to?

Oppenheimer: The largest mill in Rock Hill was the closest to the center of the city and also the largest employer at one time. Since its steady decline, the mill has now seen a renaissance, with the development of the Knowledge Park Master Plan acting as a catalyst for economic development. Residents are eager to reexperience this familiar place in a new way.

How do you expect the adaptive-reuse trend to evolve?

Oppenheimer: Renovation and reuse have always been around and relevant for the reasons of maintaining existing urban fabric and finding ways to adapt to different market trends. In more modern terms, we are just dealing with a much larger issue of the climate crisis. From a carbon emissions standpoint, it just makes sense because even the reuse of the superstructure can save resources and emissions. We calculated that 20 tons of CO2 were saved by doing just that for this project.

The post Turning a Textile Mill Into a Modern Mixed-Use Destination appeared first on Commercial Property Executive.

Equus Capital Partners has added more than 1.4 million square feet to its North Carolina industrial footprint. The firm acquired a nine-building portfolio near Charlotte and Greensboro for $124 million through a sponsored value-add fund called Equus Investment Partnership XII LP.

The seller was Investcorp, public records show. According to the same source, Equus financed the purchase with a three-year, $75 million loan from Franklin BSP Realty Trust.

READ ALSO: Top 5 Markets for Industrial Transactions

The Charlotte properties total more than 1.2 million square feet across the Lincoln, Cleveland and Iredell County submarkets, while the Greensboro asset has 241,050 square feet and is centrally located in the Piedmont Triad market.

The portfolio is made up of mostly single-tenant bulk distribution assets ranging from 38,480 to 382,668 square feet. At the time of sale, the facilities were fully leased to nine tenants, including FedEx, Lenovo and American Woodmark.

Tim Feron, vice president of acquisitions at Equus, said in prepared remarks that the portfolio has an opportunity to increase net operating income and expand lease duration in the future. Feron also mentioned the properties also have more than 400,000 square feet of development and expansion potential.

Further expanding into North Carolina

In recent years, Equus has been steadily building up its portfolio of industrial properties in North Carolina. The firm’s footprint already includes the Raleigh Light Industrial Portfolio, which totals more than 2.6 million square feet.

In February 2022, the firm acquired eight industrial properties in Greensboro, N.C., through the same value-add fund. More recently, last June, Equus sold Carolina 85 Logistics Center, a speculatively built 300,468-square-foot warehouse/distribution facility in Kings Mountain, N.C., for $32.9 million.

Overall, the firm’s U.S. portfolio totals more than 30 million square feet of owned and managed industrial assets. Equus also owns land for another 5 million square feet of industrial developments.

The post Equus Grows North Carolina Footprint With $124M Buy appeared first on Commercial Property Executive.

The Auburn, Wash., facility is part of the MultiCare Auburn Hospital Campus. Image courtesy of Newmark

Anchor Health Properties, in a joint venture with Australian Retirement Trust, has acquired a three-property medical office portfolio in the Seattle and Charlotte, N.C., markets for $62 million. Newmark facilitated the transaction.

Known as the Novant & MultiCare On-Campus collection, the portfolio comprises a total of 166,000 square feet, and was 94 percent occupied at the time of the sale. The properties are within regional and flagship hospital campuses, providing a variety of medical services, including primary care, orthopedics, cardiology, pediatrics, heart and vascular, physical therapy, neurology, oncology, cardiac rehabilitation, OB/GYN, bariatrics and urology.

READ ALSO: Medical Office Real Estate Trends to Watch in 2024

Anchor Health Properties has more than 9 million square feet of health-care real estate assets under management and it continues to add to its portfolio at a rapid pace. Recently, the firm broke ground on a 100,000-square-foot medical office center in Peoria, Ariz.

Part of medical campuses

The Novant & MultiCare On-Campus portfolio includes a 41,000-square-foot MultiCare Health System property in Auburn, Wash., and two Novant Health outpatient facilities: An 89,000-square-foot building in Matthews, N.C., and a 36,000-square-foot medical office building in Charlotte.

Located at 202 N. Division St., with access to U.S. Route 18, the Auburn facility is some 26 miles south of downtown Seattle. The property is surrounded by other medical providers, including Auburn Regional Medical Plaza and Franciscan Medical Group.

The Matthews facility is adjacent to the Novant Health Matthews Hospital Campus at 1500 Matthews Township Parkway, 12 miles from downtown Charlotte. The third asset in the portfolio is located on the Novant Health Presbyterian Hospital Campus at 200 Hawthorne Lane, less than 2 miles from downtown Charlotte.

The Newmark team that brokered the deal included Executive Managing Director Ben Appel, Senior Managing Directors Jay Miele, John Nero and Michael Greeley, Associate Director Ron Ott and Associate Conor Hilton, alongside Vice Chairman Bert Sanders and Senior Managing Director Cavan O’Keefe.

The post Anchor Health JV Pays $62M for MOB Portfolio appeared first on Commercial Property Executive.

Stiles and Shorenstein Properties topped out 110 East in Charlotte, N.C., this August. Image courtesy of Stiles

The Charlotte, N.C., office market is experiencing economic headwinds that have already made their impact on the national market, data from CommercialEdge shows. Leasing activity remained the healthiest among its peer markets, while the number of transactions and deliveries, as well as the average prices, dropped significantly when compared to the same period of last year.

Year-to-date through September, the Charlotte metro had more than 2.9 million square feet of office space under construction, representing 3.8 percent of total stock. The rate stayed the same since March and remained more than double the national figure of 1.6 percent.

Some 902,445 square feet, or 1.0 percent of the total stock, were added to the market’s pipeline in the first nine months of the year. The figure was lower than the square footage recorded during the same interval in 2022, when more than 1.3 million square feet broke ground.

One of the metro’s office developments got closer to completion in August. Stiles and Shorenstein Properties LLC have topped out their 370,000-square-foot Class A office building in the South End of Charlotte. The 23-story 110 East, currently the only Class A office building sited on a light rail platform, is expected to be complete by March 2024.

Another one of Charlotte’s more significant developments, the 625,665-square-foot Queens Bridge Collective developed by Riverside Investment & Development in Midtown – South End broke ground in May 2023 and is expected to be complete by July 2025. The 42-story property will also feature retail and dining options.

Both prices and sales volume decrease

Roughly 1.2 million square feet of office space traded in Charlotte year-to-date through September, for a combined $172 million. A total of 11 sales out of 17 closed during the second quarter of 2023, when some 970,000 square feet traded for a combined $130 million. The amount of traded square footage by the end of the third quarter was significantly higher last year, when 4.5 million square feet changed hands for roughly $1.1 billion.

In September, the median sale price per square foot in Charlotte was $161, significantly below the national average of $193. When compared to similar secondary markets, Charlotte lagged Austin ($379 per square foot), Dallas-Fort Worth ($209 per square foot), Phoenix ($227 per square foot) and Atlanta ($163 per square foot).

Esplanade at Southpark. Image courtesy of Yardi Matrix

The metro’s largest sale in terms of price year-to-date involved Esplanade at Southpark. Highbrook sold the 220,408-square-foot office building to Childress Klein for $31 million in June.

Office leasing decreases in Charlotte

After seeing continued improvement over the first quarter of the year, clocking in at 11.4 percent at the end of March, Charlotte’s vacancy rate started to grow in the following months, reaching 15.5 percent in August and 16.2 percent in September. However, this increasing rate was still the smallest among similar secondary markets, with Atlanta clocking in at 18.7 percent, Phoenix at 18.8 percent, Dallas at 19.0 percent and Austin at 21.2 percent in September. It was also significantly below the national average of 17.8 percent.

Vantage South End. Image courtesy of Mohr Partners

In one of the market’s more significant deals, Tyron Investors secured a new tenant at its 286,235-square-foot Vantage South End East Tower in Midtown – South End Charlotte. The office space will serve as DP World’s new North American base of operations. The United Arab Emirates-based tenant deals with cargo logistics, port terminal operations, as well as maritime services and free trade zones.

Coworking lags peer markets

As of September, Charlotte had some 507,576 square feet of shared office, representing 1.3 percent of its total rentable office space. The metro’s coworking inventory lagged all its peer markets, with Atlanta leading the fold (2.0 percent of rentable office space), followed by Austin (1.7 percent), Phoenix and Dallas-Fort Worth (both 1.6 percent).

Charlotte’s largest coworking firm as of September was Regus, with an inventory of more than 156,800 square feet. Other flex office providers with substantial inventories in the metro included Hygge (92,837 square feet) and Spaces (67,141 square feet).

The post Charlotte Office Market Slow, Steady appeared first on Commercial Property Executive.

Lakeshore Corporate Park sits on 50 acres. Image courtesy of Stonemont Financial Group

Stonemont Financial Group has completed Lakeshore Corporate Park, a three-building Class A industrial campus totaling 702,250 square feet in Kannapolis, N.C. Developed in partnership with Fortius Capital Partners, the project broke ground in July 2022.

The development team also includes Choate Construction Co. as general contractor in charge, Triad Design Group as architect of record and Oak Engineering as civil engineer. CBRE is providing leasing services.

Lakeshore Corporate Park consists of:

• the 128,750-square-foot Building 1, equipped with 32-foot clear heights, 26 dock high doors, two drive-in doors and 117 vehicle parking spots.
• the 294,500-square-foot Building 2, that includes 36-foot clear heights, ESFR sprinkler systems, a 1,935-square-foot speculative office component, two drive-in doors, 41 dock high doors and 181 vehicle parking spots.
• Building 3, totaling 279,000 square feet, equipped with 36-foot clear heights, ESFR sprinkler system, a 1,990-square-foot speculative office space, two drive-in doors, 56 dock high doors and 144 vehicle parking spots.

Additionally, the industrial campus is situated off of Interstate 85, providing two ingress and egress points, as well as 76 trailer parking spots. While Buildings 2 and 3 are available for lease, Building 1 has been sold to Chick-fil-A, to be used as a distribution center.

Lakeshore Corporate Park is developed on the local minor league baseball team’s stadium, Kannapolis Intimidators, that was built in 1995 and demolished. The 50.5-acre property is 8 miles from Concord, N.C., 15 miles from Concord-Padgett Regional Airport, 29 miles from Charlotte, N.C., and within 52 miles of Winston-Salem, N.C. CBRE’s team of Senior Vice Presidents Bryan Crutcher and Anne Johnson are marketing the properties for lease.

Recently delivered projects in the area

In October, Stonemont Financial Group completed another industrial project in the Southeast. In a joint venture with The Davis Cos., the company delivered two industrial buildings totaling 2.7 million square feet, in Rincon, Ga. The properties are build-to-suit projects for Lowe’s and are situated within Georgia International Trade Center, a 1,150-acre master-planned industrial campus.

Other recently delivered industrial projects in the area include Trinity Capital Advisors’ Delta Industrial Park, a 876,587-square-foot building in Gastonia, N.C. Construction on the project commenced in late 2021, with Frampton Construction serving as general contractor.

The post Stonemont Financial JV Completes 700 KSF Industrial Campus appeared first on Commercial Property Executive.

Hunter Douglas sold 201 Southridge Parkway and was also its sole tenant. Image courtesy of Cushman & Wakefield

KORE Investments has acquired a 175,239-square-foot Class A industrial facility in Bessemer City, N.C. New York-based manufacturer Hunter Douglas sold the asset for $13.5 million, according to Gaston County public records.

Cushman & Wakefield represented the buyer and is also marketing the asset for lease, led by Executive Director Matt Treble and Senior Director Andrew DeLamielleure.

According to CommercialEdge, Hunter Douglas acquired the building in 2003 for $4.3 million. The previous owner was also the sole tenant of the now-vacant property.

The manufacturing facility is at 201 Southridge Parkway and includes seven dock high doors with seals, levelers and lights, four electric drive-in doors, a covered exterior dock for scrap hoppers, a 30,195-square-foot office component and 157 vehicle parking spots. Additionally, the property also features an expansion pad measuring 70,000 square feet.

The 20-acre property is 6 miles from Gastonia, N.C., 10 miles from Gastonia Municipal Airport, 20 miles from Charlotte Douglas International Airport and within 28 miles of Charlotte. Additionally, the industrial building also allows access to Interstate 85 and State Route 74.

Recent investments in the metro

Year-to-date through September, Charlotte saw $686 million in industrial transactions, a recent CommercialEdge report shows. In terms of sales volume in the South, the metro was followed by Tampa ($557 million) and Baltimore ($530 million), but was outpaced by Atlanta ($1 billion). Industrial properties changed hands at an average sale price of $96 per square foot, while the U.S. average stood at $135.

Recent sales in Charlotte include Faropoint’s a acquisition of a three-building industrial portfolio for $33 million. Totaling 312,950 square feet, this was the company’s second investment in the market. In October, EQT Exeter purchased Stateline 77, a two-building, 1 million-square-foot industrial campus in Fort Mill, S.C. Rockefeller sold the fully-leased industrial park for $106 million.

The post KORE Investments Buys Charlotte-Area Manufacturing Facility appeared first on Commercial Property Executive.

Three Water Ridge is part of an 11-building office campus. Image courtesy of CBRE

AEW Capital Management has sold a 107,545-square-foot office building in Charlotte, N.C., to Perkins Fund LP. The asset, Three Water Ridge, was fully occupied by Walmart at the time of sale; the retailer has been a tenant at the property since 2015.

AEW sold Three Water Ridge for $15 million, public records show, with the assistance of CBRE‘s Patrick Gildea, Matt Smith, Grayson Hawkins and Robert Hardaway. The property had previously traded in 2016 for $35 million.

Standing five stories tall, Three Water Ridge came online in 1991 and underwent renovations in 2018, CommercialEdge data shows. The property is part of the 11-building Water Ridge Office Park, so tenants have access to three fitness centers, outdoor picnic areas, walking trails, 24/7 security and a tenant lounge, among other amenities.

Located at 2118 Water Ridge Parkway within the I-77 Corridor submarket, the property is close to Billy Graham Parkway and West Tyvola Road, across from the 170-acre City Park master-planned community. Downtown Charlotte is approximately 7 miles northeast, while Charlotte Douglas International Airport is 6 miles away.

Office sales shrink in Charlotte

Only some 1.3 million square feet of office space have traded in Charlotte year-to-date as of September for a total of $179 million, according to a recent CommercialEdge report. The sales volume was three times smaller than the one recorded in the same interval of 2022, when more than 3.9 million square feet changed hands.

Assets sold, on average, for $161 per square foot. The price was nearly half the one recorded in 2022’s first three quarters and 18.7 percent smaller than the national average of $198 per square foot.

The post Walmart-Occupied Office Building Changes Hands in Charlotte appeared first on Commercial Property Executive.

7149 Logistics Lane within the Stateline 77 industrial park. Image courtesy of Rockefeller Group

Rockefeller Group has sold Stateline 77, a two-building, 1 million-square-foot industrial park in Fort Mill, S.C., in metro Charlotte, N.C., to EQT Exeter, the real estate division of EQT Group AB. The purchase price was $106 million, according to York County records.

The transaction’s dollar value was not disclosed. The park was completed last year and is fully leased.

In September, solar panel manufacturer Silfab Solar announced plans to expand its U.S. footprint by establishing operations in York County at the larger of Stateline 77’s two buildings, a 786,167-square-foot cross-dock at 7149 Logistics Lane. The company reportedly plans to invest $150 million and create 800 new jobs.

READ ALSO: Industrial Sector Navigates Growth Challenges

The second building, a 221,000-square-foot distribution center, was fully leased last year by two tenants, Element Designs, which committed to 112,840 square feet, and Motion Industries Inc., which took the remaining 108,160 square feet. The building is at 7107 Logistics Lane.

Stateline 77 is along I-77 just south across the state line from Charlotte on 77.5 acres that Rockefeller had acquired in 2019.

JLL’s Pete Pittroff, Dave Andrews, Josh McCardle, Michael Scarnato and Britton Burdette represented Rockefeller Group on the sale to EQT Exeter. JLL’s Spencer Yorke and Brad Cherry were the exclusive leasing agents on the park.

Still growing

Metro Charlotte’s industrial market is seeing an increase in sublease space, in both Class A and Class B categories, according to a second-quarter report from JLL. Nonetheless, the overall vacancy is just 3.0 percent.

Year-to-date net absorption has been about 3.6 million square feet, with a substantial 17.2 million under construction, against a warehouse/distribution inventory of 207 million square feet.

In August, Trinity Capital Advisors completed Delta Industrial Park, an 876,587-square-foot industrial building on 69 acres near I-85 in Gastonia, N.C.

In September, MDH Partners received $23.3 million in construction financing for the second phase of Northcross Commerce Center, in Huntersville, N.C. Plans called for two buildings totaling 254,000 square feet, with ground to be broken almost immediately and completion scheduled for the third quarter of 2024.

The sales side has also been active.

In July, Stoltz Real Estate Partners acquired Carolina 85 Logistics Center, a fully leased 300,468-square-foot distribution center in Kings Mountain, N.C., from Equus Capital Partners Ltd. for $32.9 million.

And just last month, Faropoint purchased a 312,950-square-foot, three-building Class B infill industrial portfolio in Charlotte for $33.3 million. The seller was Beacon Partners.

The post Rockefeller Group Sells Industrial Park for $106M appeared first on Commercial Property Executive.

Vantage South End was the largest office delivery recorded last year in Charlotte, N.C. Image courtesy of Mohr Partners

DP World has signed a lease for 15,808 square feet at Vantage South End’s East Tower, a 286,235-square-foot office building in Charlotte, N.C. Mohr Partners represented DP World, while The Spectrum Cos. represented the landlord, Tyron Investors.

The office space will serve as United Arab Emirates-based DP World’s new North American base of operations. The company deals with cargo logistics, port terminal operations, maritime services and free trade zones.

The Vantage South End is a mixed-use property that comprises two 11-story office towers, with the West Tower encompassing 326,800 square feet. The 635,000-square-foot asset also includes 55,000 square feet of retail and amenity space.

Tenants can access features such as a fitness center, green space with room for more than 1,000 outdoor seats, a training and event space, as well as several on-site dining options. The property was the largest office delivery recorded last year in metro Charlotte.

The anchor tenant is LendingTree, which occupies 175,000 square feet, according to CommercialEdge. The roster also includes Alston & Bird, Brightspeed and Armstrong Transport Group.

Located at 1120 S Tyron St., the mixed-use asset is less than a mile southwest of the Charlotte Convention Center and some 6 miles east of the Charlotte Douglas International Airport. The property is also surrounded by several dining, transportation, retail and entertainment options.

Mohr Partners Managing Principal & Shareholder Eric Beichler represented DP World in the deal, while The Spectrum Cos. Managing Director Virginia Luther represented Tyron Investors.

The post Tyron Investors Secures New Tenant at Charlotte Office Tower appeared first on Commercial Property Executive.

Northcross Commerce Center is taking shape some 17 miles from downtown Charlotte, N.C. Image courtesy of MDH Partners

MDH Partners has received $23.3 million in construction financing for the development of Northcross Commerce Center’s second phase, in Huntersville, N.C. Plans call for two buildings totaling 254,000 square feet. The developer will break ground this month, with completion slated for the third quarter of 2024.

JLL worked on behalf of the borrower to secure the loan, provided by TD Bank. The broker team included Senior Managing Director Chris Drew, Senior Director Taylor Allison and Associate Jimmy Calvo.

Northcross Commerce Center is a Class A industrial park. According to CommercialEdge, the first phase was completed in 2021 and features two buildings, measuring 331,385 and 114,100 square feet. The facilities are currently leased to Prime Beverage, HAWE Technology and Icon VF. Phase two will feature two shallow bay buildings, 160 and 200 feet deep. MDH Partners is using CarbonCure technology for the development of the industrial facilities.

READ ALSO: Expanding Into Industrial: Diversifying for Long-Term Success

The second phase is taking shape on Jamesburg Drive, near Interstate 77, 17 miles North of downtown Charlotte. The industrial campus is next to U.S Route 73 and 20 miles from Charlotte Douglas International Airport.

As of July, the Charlotte industrial market had 13.8 million square feet under construction, representing 4.5 percent of stock, according to a recent CommercialEdge report. In the last few months, Bosch broke ground on a 325,000-square-foot manufacturing facility in Lincolnton, N.C., while Trinity Capital Advisors completed Delta Industrial Park, an 876,587-square-foot industrial building in Gastonia, N.C.

MDH industrial expansion

Since January, MDH expanded its industrial footprint with several acquisitions that added to a total of nearly 3 million square feet. The company also entered new markets, including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania.

Some notable transactions include the $112.3 million purchase of Harvill Logistics Center, a 333,570-square-foot facility in Perris, Calif. The company also acquired a 1.4 million-square-foot industrial portfolio that included two newly completed buildings in the Atlanta and Memphis, Tenn., metro areas.

The post MDH Partners Lands $23M Loan for Charlotte Industrial Development appeared first on Commercial Property Executive.

2101 Westinghouse Blvd. dates back to 1979. Image courtesy of CBRE

Faropoint has purchased a 312,950-square-foot, three-building industrial portfolio in Charlotte, for $33.3 million. CBRE‘s Vice Chairman Patrick Gildea negotiated on behalf of the seller, identified by CommercialEdge as Beacon Partners.

The ensemble of infill industrial properties includes a 45,750-square-foot, Class B building at 4112 Joe St. Constructed in 1969 on 2 acres, the property has an office build-out component, 20-foot clear heights and was vacant at the time of the deal.

The second property is a 200,000-square-foot, Class B asset at 2101 Westinghouse Blvd. Built in 1979 on 9.4 acres, the facility’s current tenant roster comprises Pinpoint Warehousing and Woodward Compressor Sales Inc.

The third, 67,200-square-foot, Class B building at 9701 Brookford St. dates back to in 1972. Located on a 2.6-acre lot, the property has 18-foot clear heights and L & M Supply Co. as a tenant, CommercialEdge data shows.

The three properties are within 17 miles of each other, allowing easy access to interstates 77, 85 and 485 and within 29 miles of Charlotte-Douglas International Airport. The deal follows Faropoint’s first investment in the Charlotte market, namely the purchase of a 56,846-square-foot industrial building earlier this year.

Earlier in July, CBRE brokered another industrial deal in the metro: the company negotiated on behalf of Equus Capital Partners Ltd. in the sale of Carolina 85 Logistics Center in Kings Mountain, N.C. Stoltz Real Estate Partners picked up the fully occupied, 300,488-square-foot property for $32.9 million.

The post Faropoint Buys 3 in Charlotte for $33M appeared first on Commercial Property Executive.

Stiles and Shorenstein Properties have topped out 110 East in Charlotte, N.C. Image courtesy of Stiles

Stiles and Shorenstein Properties LLC have topped out their 110 East project, a 23-story, 370,000-square-foot Class A office building in the South End of Charlotte, N.C.

The building, at 110 East Blvd., is scheduled for completion in March 2024 and reportedly is the only Class A office building in the South End that’s sited on a light rail platform. It was designed by Nashville-based Hastings Architecture, with Shelco LLC as the general contractor.

Besides the transit connectivity from being directly on the platform of the LYNX Blue Line and Charlotte Rail Trail, the location provides proximity to a variety of restaurants and nightlife venues.

READ ALSO: Where to Find Office Investment Opportunity Now

Rendering of 110 East in Charlotte, N.C., designed by Hastings Architecture. Image courtesy of Stiles

When ground was broken, in January 2022, the speculative project’s value was given as $186 million.

In a prepared statement, Chris Grenier, senior vice president of development, Stiles Carolinas, noted the building’s amenities, which include a parking garage with more than 900 spaces, a 4,000-square-foot fitness center, flexible conference spaces, 11-foot clear vision glass and 5,800 square feet available directly on the rail platform for retail and restaurant uses. In addition, 110 East will feature both LEED Gold and WiredScore Platinum certifications.

Jessica Brown and David Dorsch of Cushman & Wakefield are leading the office leasing effort. Retail leasing is being handled by Adam Williams with Legacy Real Estate Advisors.

Economy outpaces office sector

The Charlotte region’s economy is benefiting from 3.4 percent year-over-year employment growth and from an unemployment rate 40 basis points below the national average, according to a second-quarter report from Cushman & Wakefield.

The office market, however, has seen its direct vacancy rate rise for four straight quarters, to 18.0 percent currently, with a 22.0 percent overall office vacancy. The strong presence in Charlotte of the banking sector has been a factor here, as it has a substantial proportion of hybrid or remote workers.

Last December, Shorenstein sold the Commons at the Park, a 430,000-square-foot, two-building adaptive reuse campus on a 63-acre site in Charlotte’s University Park area. Shorenstein acquired the then industrial property in 2019 and by 2021 had adapted it into a creative office campus. The buyer was Albemarle Corp., a Charlotte-based chemicals supplier, which plans to use the campus for a $200 million lithium research center.

The post Stiles, Shorenstein Top Out $186M Tower in Charlotte appeared first on Commercial Property Executive.

Construction wrapped up at Delta Industrial Park. Image courtesy of Trinity Capital Advisors

Trinity Capital Advisors has completed Delta Industrial Park, a 876,587-square-foot industrial building in Gastonia, N.C. The development team included Frampton Construction as contractor, Thomas & Hutton as civil engineer and Merriman Schmitt Architects, which designed the Class A facility.

Construction on the project started in late 2021. Pinnacle Financial Partners provided the developer with financing in the amount of $52.6 million, CommercialEdge data shows.

READ ALSO: Why CapRock Maintains Cautiously Optimistic Outlook for Industrial Development

Located at 1502 Delta Drive, the cross-dock industrial facility includes 40-foot clear heights, four drive-in doors, 180 dock doors, a 2,820-square-foot office component, ESFR sprinkler systems, 171 trailer parking spots, expandable up to 275, and 196 vehicle parking spots, expandable to 506. Additional features include a high-voltage transmission tower and a fire water tank with a 138,000-gallon capacity.

The 69-acre property is close to Interstate 85, some 19 miles from Charlotte Douglas International Airport and 26 miles from downtown Charlotte, N.C. JLL’s Brad Cherry and Spencer Yorke have been tapped as leasing brokers.

Charlotte’s active pipeline

Charlotte maintains its position as one of the most active markets in the South in terms of industrial development, according to a recent CommercialEdge report. The metro had 14.9 million square feet of space under construction as of June, representing 4.9 percent of its current inventory, with 16 million square feet of space delivered since the beginning of 2022.

Recent projects in the metro includes Bosch’s 325,000-square-foot expansion of its Lincolnton, N.C., manufacturing facility. Graycor Construction Co. serves as general contractor of the $130 million industrial project.

The post Trinity Capital Completes Charlotte-Area Industrial Project appeared first on Commercial Property Executive.

Carolina 85 Logistics Center. Image courtesy of Equus Capital Partners Ltd.

Stoltz Real Estate Partners has acquired Carolina 85 Logistics Center, a fully leased 300,468-square-foot distribution center in Kings Mountain, N.C. Equus Capital Partners Ltd. sold the property for $32.9 million. CBRE represented Equus in the building’s sale, while Cushman & Wakefield worked on securing tenants.

Located at 330 Woodlake Parkway, near the intersection of Woodlake Parkway and Canterbury Road, the property is close to Interstate 85. Charlotte Douglas International Airport and the Norfolk Southern Intermodal hub area are also nearby.

Completed in 2022, Carolina 85 Logistics Center is 100 percent leased to Ferguson Plumbing and Utz Quality Foods. The building features 32-foot clear heights, is located on 23.7 acres and includes 40 dock doors and 55 trailer parking spaces. Additionally, the building includes energy-efficient features such as a heat load reducing TPO white membrane roof and LED high-bay lighting.

Carolina 85 Logistics Center is another example of Charlotte’s trend toward larger industrial buildings in a fast-growing market. According to a recent CommercialEdge report, the metro had more than 16 million square feet of industrial stock under construction as of May, which represented a sizeable 5.4 percent of its current stock. CCC 85, a 290-acre commercial warehouse park with five buildings planned, is another mid- to bulk-size industrial space currently underway along the Interstate 85 corridor.

CBRE Vice Chairmen Frank Fallon, Jose Lobon, Trey Barry and Mike Hines handled the transaction for the seller.

The post Equus Capital Gets $33M for Charlotte-Area Asset appeared first on Commercial Property Executive.

Promenade at Carolina Reserve. Image courtesy of JLL

Bandera Ventures has sold Promenade at Carolina Reserve, a 221,054-square-foot retail center in Indian Land, S.C. Public records show that an entity affiliated with Eagles Enterprise LLC acquired the asset for $34 million, financing the purchase with a $21.4 million loan from Morgan Stanley Bank.

Bandera had purchased the property last year from Hutton for $36.9 million, according to CommercialEdge data. Veritex Community Bank provided a $29.5 million bridge loan, the same source shows.

Completed in 2018 on a 32.6-acre site, Promenade at Carolina Reserve has a diverse mix of local, regional and national tenants. Fully occupied at the time of sale, the super-regional retail center is anchored by TJ Maxx, Burlington, Ross, Hobby Lobby, HomeGoods, Ulta, Petco and Dollar Tree and shadow-anchored by ALDI.

Located at US 521 at Jim Wilson Road, Promenade at Carolina Reserve is some 20 miles from downtown Charlotte, N.C., in an area with a population of approximately 70,000 and an average household income of almost $150,000 within a 5-mile radius. The retail center receives around 2.3 million visitors per year, according to JLL.

A JLL Capital Markets Investment Sales Advisory team led by Senior Managing Director Jim Hamilton, Managing Director Brad Buchanan, Senior Director Tom Kolarczyk and Associate Andrew Kahn assisted the seller in the disposition. Insight Property Group Commercial Real Estate Advisor Rikky Goswami represented the buyer.

The post Bandera Ventures Sells Charlotte-Area Retail Center for $34M appeared first on Commercial Property Executive.

Bosch expansion rendering. Image courtesy of Graycor Construction Co.

Bosch is expanding its manufacturing facility in Lincolnton, N.C., by 325,000 square feet. Graycor Construction Co., serving as general contractor, has broken ground on the new industrial building that will house manufacturing as well as logistics and warehousing space. The project is expected to take 24 months.

Bosch has invested $130 million into the facility expansion, which could generate up to 400 new jobs in Lincoln County. The firm worked with the North Carolina Department of Commerce, the Economic Development Partnership of North Carolina and other state and city agencies to expedite the project.

Bosch’s expansion qualifies for a Job Development Investment Grant that was approved by the state’s Economic Investment Committee. The grant allows for the potential reimbursement of more than $2.7 million spread throughout 12 years as the project is expected to grow the state’s economy by more than $1 billion.

A very active general contractor

Beyond its project with Bosch, Graycor has worked on similar developments in North Carolina, including the 324,480-square-foot expansion of Pactiv’s existing 24/7 manufacturing facility in Huntersville. The company more than doubled the factory’s space, which now includes 35 more loading docks and 3,000 square feet of office space.

Graycor has been constructing other industrial projects across the U.S. as well. In March, the company broke ground on a 1.5 million-square-foot complex in Waddell, Ariz., being developed by IndiCap and Invesco Real Estate.

Also in Arizona, Graycor is building a 3.8 million-square-foot campus adjacent to the Phoenix-Mesa Gateway Airport. When complete, the mixed-use property will total 1.3 million square feet of aeronautical and 2.2 million square feet of non-aeronautical space, as well as 270,000 square feet of office and retail space.

The post Bosch Breaks Ground on Charlotte-Area Facility Expansion appeared first on Commercial Property Executive.

Image by pawel.gaul via iStockphoto.com

Charlotte’s office market has remained relatively unaffected by nationwide economic unrest recorded through the first quarter of 2023. Office-using employment in the metro continued to grow, up 2.2 percent on a year-over-year basis as of February and prompting office construction to continue at a steady pace. Here’s how Charlotte’s office market performed in the first three months of the year, according to CommercialEdge data.

Office construction on the upswing

Some 2.8 million square feet of office space were underway in Charlotte as of March, representing 3.8 percent of total stock. The rate was more than double the national figure of 1.8 percent.

READ ALSO: Top 5 Markets for Office Construction in the South

600 South Tryon. Image courtesy of Square Mile Capital

Significant developments in the market included 600 South Tryon, the fourth office building at the 10-acre Legacy Union mixed-use development in Uptown Charlotte. Lincoln Harris is developing the 24-story, 415,000-square-foot tower in partnership with the real estate arm of Goldman Sachs Asset Management. Square Mile Capital provided $184 million in construction financing for the project that is slated for completion by the fourth quarter of 2024.

110 East is the only office development in Charlotte’s South End that was constructed directly on a light rail platform. Shorenstein Properties and Stiles broke ground on the 370,000-square-foot project in January 2022. The 23-story building at 110 East Blvd. will be ready for occupancy in March 2024.

As remote work has become the new norm for many large companies, the future remaines uncertain for the city’s largest office development, accounting for 28.6 percent of the pipeline. In 2021, Centene Corp. broke ground on what was, at the time, its future 800,000-square-foot corporate headquarters. After one year of construction, when the $1 billion campus in University City was nearly complete, the corporation abandoned the project and tapped Cushman & Wakefield to market the property for sale.

Leasing activity improved throughout the quarter

Charlotte’s office market has seen constant improvement in leasing activity since the beginning of the year. After clocking in at 13.2 percent in January and at 12.7 percent in February, the metro’s vacancy rate reached 11.4 percent at the end of March. The value was also 530 basis points lower than the national vacancy rate of 16.7 percent, which was up 20 basis points over the month.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

Gama Goat Building. Image courtesy of CommercialEdge

The Queen City’s low vacancy rate put it in first position among similar secondary markets. Dallas-Fort Worth ranked second, with a 16.6 percent vacancy rate as of March, while Phoenix (18.2 percent), Atlanta (19.8 percent) and Austin (22.2 percent) followed.

In one of the quarter’s largest transactions, Bolton & Menk signed an 11-year, 24,600-square-foot lease at 1801 N. Graham St., Camp North End’s Gama Goat Building. The civil engineering firm chose Charlotte as its permanent Southeast headquarters following the merger with ColeJenest & Stone and will relocate from 200 S. Tryon St. in mid-2023.

Charlotte’s coworking scene trails peers

Charlotte had some 450,000 square feet of shared office space as of March, representing 1.2 percent of its total rentable office space. The metro’s coworking inventory accounts for less than its comparable secondary markets. Atlanta led the fold, with 2.0 percent of rentable office space, followed by Austin (1.8 percent), Phoenix (1.5 percent) and Dallas-Fort Worth (1.5 percent).

Regus was the largest coworking operator in Charlotte at the end of the first quarter, with an inventory of more than 170,000 square feet. Other flex office providers included Hygge (92,800 square feet) and WeWork (80,000 square feet).

Fewer office sales for smaller prices

Transactions were few across Charlotte’s office market in the first quarter of 2023. Only three office properties, totaling some 158,000 square feet, changed hands in the metro for a combined $25 million. The amount of traded square footage was more than five times smaller than in the first quarter of 2022, when nearly 799,000 square feet changed hands for approximately $163 million.

The median price per square foot was $155 in March, below the national average of $195 and down 47.5 percent year-over-year. When compared to similar secondary markets, the metro trailed Austin ($392 per square foot), Dallas-Fort Worth ($344 per square foot) and Phoenix ($210 per square foot), surpassing only Atlanta ($103 per square foot).

The post Charlotte Office Market Held Steady in Q1 appeared first on Commercial Property Executive.

Whitehall Tech Center. Image courtesy of JLL

CIP Real Estate has secured financing in the amount of $29.5 million for Whitehall Tech Center, a three-building, 279,150-square-foot industrial park in Charlotte, N.C. Mecklenburg County records show that Hartford Investment Management Co. provided the three-year, floating-rate loan. JLL arranged the deal on behalf of the borrower.

CIP initially acquired the property in April 2016, in a joint venture with CrossHarbor Capital Partners. The asset was recapitalized in June 2020 with a $21.5 million loan from a life company managed by Global Atlantic Financial Group.

READ ALSO: Waiting for the Thaw in CRE Deal Flow

Located at 2745, 2915 and 2705 Whitehall Drive Park, the Class A, multi-tenant business campus comprises two existing warehouses totaling 204,900 square feet, with a third, 74,250-square-foot facility expected to break ground in the second quarter of this year. All buildings will have ESFR sprinkler systems, 20- to 28-foot clear heights and a total of 57 dock-high doors.

Whitehall Tech Center is close to interstates 77 and 485, 9 miles from Charlotte Douglas International Airport and 12 miles from downtown Charlotte. Tenants at the property include Guardian Pharmacy, DEX Imaging and BlueDot Medical, CommercialEdge data shows.

Charlotte sees growing industrial demand

JLL Executive Managing Director Kevin MacKenzie, together with Senior Directors Taylor Alison and Peter Thompson, secured the financing for CIP Real Estate. According to the company’s 10th annual U.S. Industrial Demand Study, Charlotte saw a 31.4 percent increase in industrial demand from 2021 to 2022, due to the current population growth and expansion of manufacturing activities. The market’s proximity to the Port of Charleston and the Inland Port put Charlotte on the 15th position among the U.S. metros.

Recent projects in the area include Crow Holdings’ speculative development that will total more than 470,000 square feet of space when complete. With Avison Young tapped as exclusive leasing agent, the projects is expected to be available for occupancy in late 2023.

The post CIP Real Estate Lands $30M for Charlotte Industrial Park appeared first on Commercial Property Executive.

Hazel SouthPark is located adjacent to the Specialty Shops SouthPark. Image courtesy of Yardi Matrix

Nuveen Real Estate has acquired a pair of retail properties in two high barrier-to-entry southeastern U.S. markets.

One of the assets acquired, Roswell Wieuca, is a 74,370-square-foot grocery-anchored shopping center in Atlanta’s Buckhead neighborhood. The property is adjacent to Chastain Park and has been operational since 1954.

The site was previously owned by ShopCore Properties, according to CommercialEdge data. The purchase price could not immediately be learned, though the same data revealed that Chicago-based ShopCore acquired the asset for $32.5 million, or $443.29 per square foot, in 2017.

READ ALSO: What’s Next for Experiential Retail?

Nuveen also acquired Specialty Shops SouthPark in Charlotte, N.C., purchasing the asset alongside Hill Partners, which has managed and leased the complex since 2014. The pair acquired the property from GWL Realty Advisors for $40.2 million in March, paying $576.57 per square foot, according to CommercialEdge data. The same data shows that GWL acquired the asset for $25.1 million, or $359.28 per square foot, in April 2014. The 65,362-square-foot open-air shopping plaza is part of the SouthPark commercial and residential community, which is located near the Myers Park, Barclay Downs, Quail Hollow and Foxcroft neighborhoods.

The SouthPark property hosts restaurants and privately owned boutiques, as well as national brand name stores. Two other retail centers—SouthPark Mall, offering more than 150 retailers and restaurants, and the Piedmont Town Center—are located within the complex. Queens University of Charlotte and Central Piedmont Community College are located less than 10 miles from the property, while the Tyvola, Woodlawn, Archdale, Scaleybark and Arrowood transit stations, offering subway access, are all less than 5 miles away.

Multifamily housing developer ZOM Living sold Hazel SouthPark, a luxury, mixed-use community at the site, for $130.8 million in 2022. The deal set a record for the highest per-unit price ever paid for a North Carolina multifamily project. The buyer was not disclosed at the time, but Yardi Matrix data revealed the owner to be Herndon, Va.-based Lincoln Property Co.

Nuveen is investing heavily in mixed-use properties with various demand drivers that are located near both residential and daytime population centers. In a statement, the company noted that the deals are part of its retail strategy of prioritizing assets which benefit from shifting consumer preferences and evolving demographic trends, as well as investing in locations near employment and residential hubs.

Naming both southern metros as priority markets, Nuveen’s statement also observed that open-air retail has emerged from the COVID-19 pandemic as a particularly strong sector. The company’s retail portfolio in the region includes The Forum on Peachtree Parkway in Peachtree Corners, Ga., Commonwealth in Charlotte and Birkdale Village in Huntersville, N.C.

The post Nuveen Purchases Southern Retail Duo appeared first on Commercial Property Executive.

Rock Hill Commerce Center. Image courtesy of JLL

Strategic Capital Partners has sold Rock Hill Commerce Center Phase I in metropolitan Charlotte, N.C., with the assistance of JLL. A MetLife Investment Management client acquired the two fully leased assets totaling 792,081 square feet.

The 294,092-square-foot Building A and the 497,989-square-foot Building B are part of a two-phase development taking shape on 80 acres in Rock Hill, S.C. Once complete, Rock Hill Commerce Center will feature four facilities totaling 1,039,361 square feet.

The developer had secured some $60 million in financing for the project from The Sherbert Group in 2020. The development is a design/build of Development and Construction Insight LLC; ARCO Construction Co. Inc. serves as its general contractor.

Two industrial assets near Charlotte

Located at 2501 David Hutchison Road, Building A features rear-loading doors and a 32-foot clear height, according to CommercialEdge data. The building is fully leased to Power Technique North America LLC, a division of Atlas Copco AB.

Featuring 36-foot clear heights, Building B was constructed with a cross-dock configuration. The asset at 2601 David Hutchison Road is fully occupied by Logistics Plus.

Tenants of Rock Hill Commerce Center have easy access to the larger Southeast region through their proximity to Interstate 77. The Norfolk Southern CLT Intermodal Terminal and the Charlotte Douglas International Airport are less than 30 miles from the property.

JLL Capital Markets Senior Managing Directors Patrick Nally and Pete Pittroff, along with Director Dave Andrews and Associate Michael Scarnato, represented Strategic Capital Partners in the deal.

The post Strategic Capital Partners Sells 2 Fully Leased Industrial Assets appeared first on Commercial Property Executive.

36 & NoDa. Image courtesy of Stream Realty Partners

AJ Capital Partners has acquired 36 & NoDa, a 26,447-square-foot retail center in Charlotte, N.C. Stream Realty Partners brokered the $10.3 million transaction on behalf of the seller, Ascent Real Estate Capital.

Located at 501-517 E. 36th St., the asset is in an infill retail corridor within NoDa, the city’s historic arts and entertainment district. Salud Cerveceria and Neighborhood Theatre are among the tenants at the fully leased property.

City residents and visitors can easily walk to 36 & NoDa since it is conveniently located near an array of multifamily apartments and Charlotte’s Lynx light rail system. The employment nodes of Uptown and University City are also close by.

Stream Executive Managing Director Jared Londry and Senior Associate Alex Olofson brokered the deal on behalf of the seller.

According to a recent Cushman & Wakefield report, the fourth quarter of 2022 saw a robust retail sector with resilient demand driving shopping center vacancy to its lowest level on record since 2007. Additionally, the sector experienced positive net absorption for the seventh consecutive quarter, totaling 10.9 million square feet nationwide as of December.

The same data source shows Charlotte’s retail market recorded a vacancy rate of 4.5 percent in Q4, while net absorption totaled 82,045 square feet.

The post AJ Capital Partners Buys Charlotte Retail Asset appeared first on Commercial Property Executive.

Gama Goat Building. Image courtesy of CommercialEdge

Engineering and planning firm Bolton & Menk has signed a 24,600-square-foot lease at the Class A Gama Goat Building in Charlotte, N.C. Lincoln Harris brokered the deal on behalf of the tenant, while Trinity Partners facilitated the deal for the owners, ATCO Properties & Management and Shorenstein Properties.

The tenant will relocate its Southeast headquarters to the 140,000-square-foot historic building that is part of Camp North End, a 76-acre adaptive reuse campus in the city’s North End Smart District. The 11-year lease takes the total occupied space at the development to 250,000 square feet. Camp North End has 300,000 square feet of space lined up for work, art, dining, entertainment, recreation, and community development, as well as an additional 1.5 million square feet planned.

Bolton & Menk will be relocating from 200 South Tryon St. to the Camp North End building, where more than 50 employees are expected to start working in mid-2023. The company will occupy a custom-built space in the northern section of the property and will handle the design of its new headquarters.

In 2021, Bolton & Menk acquired Charlotte-based ColeJenest & Stone, resulting in a need for a bigger footprint in the metro. The new tenant joins the building’s existing roster, including Google Fiber and Kingsmen Software—which have recently signed leases at the Gama Goat Building—Centene Corp., Ally Financial, AON and CloudGenera.

Senior Vice President Marshall Williamson led the Lincoln Harris team representing the tenant in the lease signing, while Managing Partner Rhea Greene, Partner Jennifer Kurz and Director Chase Merkel of Trinity Partners negotiated the deal for the landlord.

READ ALSO: Class A Demand Stabilizes Office Sector

According to a recent CommercialEdge report, the Southern states registered high vacancy rates as of December 2022. Still, Charlotte had the lowest rate across the most significant metros in the region, with a 13.2 percent vacancy. According to the same report, while the national outlook is unclear, the Sunbelt is still experiencing strong growth in its office employment.

Part of a larger community

The Gama Goat Building, which underwent a significant redevelopment by ATCO and Shorenstein, opened in the summer of 2020. Originally an industrial structure, the property served the U.S. Army until the 1960s as an assemblage site for Gama Goat military vehicles. Located at 1701 N. Graham St., the office property is less than 3 miles from downtown Charlotte and 11 miles from Charlotte Douglas International Airport.

The historic property sits within Camp North End’s Keswick District, where other businesses like CloudGenera, Rent EBoards Charlotte, YVY Fitness, Windy O’Connor Art + Home, along with food stalls such as Bleu Barn North End, La Caseta, Plant Joy and SARU, also reside.

The post ATCO, Shorenstein Ink HQ Lease in Charlotte appeared first on Commercial Property Executive.

Charlotte skyline. Image by user 1778011 via Pixabay.com

Technology company Pallidus is relocating its corporate headquarters and manufacturing operations to a new facility in York County, S.C., leased from private equity firm Boston Andes Capital.

Pallidus, which manufactures silicon carbide wafer semiconductors, will depart its New York headquarters for the Rock Hill, S.C., site, which is located at 1786 and 1800 Overview Drive. The 300,000-square-foot property will house both the company’s corporate headquarters and its manufacturing plant. Its research and development facility will remain in New York.

Pallidus is investing $443 million in the project. The Buenos Aires, Argentina-based owner acquired the property from Framingham, Mass.-based Calare Properties in August 2022.

The relocation is expected to create 405 new jobs. The new facility, which is scheduled to come online in 2023, is located in the metropolitan area of Charlotte, N.C.

Rock Hill Mayor John Gettys credited his city’s utility infrastructure with helping land the investment.

He noted in prepared remarks that for decades the community has invested in its utility systems with the belief that dependable and modernized utilities would entice investments. He added that Rock Hill’s foresight and commitment to attain the diamond standard recognition as a Reliable Public Power Provider has resulted in one of the most impactful economic development announcements in its history.

The Charlotte area continues to be a popular destination for industrial facilities. Most recently, Crow Holdings announced it would develop The Oaks Logistics Center in nearby Belmont, N.C.

The post Pallidus Invests $443M in HQ, Plant Relocation appeared first on Commercial Property Executive.

Photo by Adrian Sulyok on Unsplash

JLL’s brand-new 10th annual U.S. Industrial Demand Study cuts past the usual transaction statistics to focus on which sectors are propelling the nation’s stunning 30 percent year-over-year increase in industrial space demand, which properties are most in demand and why Phoenix, Savannah, Ga., and Charlotte, N.C., are the current stars of the market.

Although e-commerce demand has abated somewhat nationwide, it continues to drive the Logistics and Parcel Delivery industry’s space needs, which represent more than 194 million square feet in requirements.

Just since 2021, the automotive industry has increased its needs by more than 156 percent, driven in part by the growth of electric vehicle manufacturers and battery makers.

READ ALSO: Will CRE Construction Hold Steady in 2023?

Demand for Construction, Machinery & Materials companies grew by more than 41 percent in 2022, primarily caused by increased commercial and residential development.

In an introduction, Craig Meyer, president, JLL Americas Industrial, calls the study a “comprehensive glimpse into future potential leasing decisions.” He notes that its conclusions come from JLL local market intelligence across nearly 60 U.S. markets and tracking more than 2,200 individual tenant requirements encompassing more than 864 million square feet of space.

To touch on a few of the above points in a bit more depth, 2022 total demand was 864 million square feet, versus 664 million in 2021. And from 2018 till 2022, the number of markets with at least 20 million square feet in requirements grew from eight to 13.

The hot Logistics and Parcel Delivery sector was the most active industry occupying industrial space in eight of the 10 U.S. regions. Demand is growing most rapidly for properties in the mid-sized range (250,000 to 499,999 square feet), which is especially popular with food and beverage companies.

A tale of three cities

Phoenix tops that short top three list, based on its location, population growth, construction pipeline and industrial demand, along with relative proximity to the Los Angeles and Long Beach, Calif., ports. Industrial demand there rocketed up by 56.6 percent from 2021 to 2022.

Congestion at other major ports has powered a 29.5 percent jump in demand at the Port of Savannah, in response to which the Georgia Port Authority has announced an increase in storage space there.

Substantial and steady population growth has brought Charlotte to the 15th position among U.S. MSAs, concurrent with strong expansion of its manufacturing base, which benefits from proximity to the Port of Charleston and the Inland Port in Greer, S.C. Like Savannah, the latter two ports are undergoing infrastructure expansions. From 2021 to 2022, Charlotte saw a 31.4 percent increase in industrial demand.

According to JLL, the practice of reshoring is more important as supply chain woes continue to create backlogs at ports. “Tight availability, high rents and port congestion along the West Coast have pushed many occupiers to the Southeast,” the report notes. Consequently, the region led the nation for industrial demand in 2022, with 240 million square feet in requirements.

IRR’s recent Viewpoint 2023 emphasized the same point, based on data from Newmark.

The post Top Sectors for Industrial Demand: JLL appeared first on Commercial Property Executive.

The Oaks Logistics Center development site. Image via Google Earth

Crow Holdings answers the ongoing call for premier industrial space in metropolitan Charlotte, N.C., with plans for the development of The Oaks Logistics Center, as first reported by Charlotte Business Journal. The speculative project will encompass more than 470,000 square feet in Belmont, roughly 15 miles west of Charlotte’s central business district.

Oaks Logistics will take shape on a 46-acre site near Interstate 85, along a portion of Hickory Grove Road that will be renamed Crawford Oaks Drive. During a meeting on December 5, 2022, the Belmont City Council helped pave the way for the project’s next step, unanimously approving the development plan as well as a zoning request for two parcels and a petition for contiguous annexation.

READ ALSO: What’s Next for Industrial Development

Oaks Logistics will cater to the needs of the Class A industrial tenant. The warehouse was deigned to feature a clear height of 36 feet and ESFR, as well as ample auto and trailer parking accommodations. Additionally, the vision for Oaks Logistics includes the incorporation of 2,000 square feet of speculative office space.

Crow has tapped Avison Young to market the development; according to the brokerage company’s website, Oaks Logistics will be available for occupancy later in 2023.

No prelease, no problem

In the current development climate, building an industrial facility sans a tenant commitment in place in suburban Charlotte doesn’t pose a great deal of risk. In the fourth quarter of 2022, the metro’s industrial market recorded 2 million square feet of positive net absorption, according to a recent report from Savills. Additionally, average asking rental rates jumped 17.7 percent year-over-year.

Like every other market in the U.S., Charlotte is bracing for the consequences of increasing interest rates and mounting economic uncertainty. However, the metro’s industrial sector is poised to weather any potential storms. “Charlotte poses as a premier Sunbelt destination with connectivity to the ports of Charleston and Savannah, which have been gaining market share from West Coast ports,” according to the Savills report. “The relative affordability of Charlotte compared with other major Sunbelt cities will continue to support growth in demand.

READ ALSO: Development Financing Slowdown Is Real

While Crow has not disclosed the development cost of Oaks Logistics or the financing source for the project, the real estate investment and development firm is not at a loss for funds. In March, the firm completed the final closing of Crow Holdings Development Opportunities I LP, reaching its hard cap of $750 million in commitments for a total of approximately $1.5 billion in leveraged capitalization for investment in the U.S. logistics and housing sectors.

Additionally, in August 2021, the company formed a joint venture partnership with Abu Dhabi-based Mubadala Investment Co. to develop roughly $1 billion in Class A industrial product in leading U.S. markets.

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Commons at the Park. Image via Google Street View

Shorenstein Properties LLC has sold the Commons at the Park, a 430,000-square-foot, two-building adaptive reuse campus on a 63-acre wooded site in the University Park area of Charlotte, N.C., Shorenstein announced on Monday, Dec 19. Terms of the transaction were not disclosed.

The buyer was Albemarle Corp., a chemicals supplier headquartered in Charlotte, which had a week earlier announced its plans for a $200 million lithium research center at the campus. Albemarle operates the only currently active lithium mine in the U.S., at Silver Peak, Nev.

READ ALSO: Top 5 Southeast Markets for Office Deliveries

In addition, Blue Ridge Public Radio reported that the Charlotte region has large deposits of lithium, and that Albemarle is making plans to reopen an old lithium mine at Kings Mountain, N.C., where it already operates a lithium processing plant.

The Commons at the Park was completed in 1982 and was originally an industrial building, according to information from CommercialEdge.

Shorenstein acquired the property in 2019 and by 2021 had completely renovated it into a creative office campus with such amenities as a fitness center, conference and training center, a future café and 1.5-acre park. The location, at 6800 Solectron Drive, is minutes from Uptown and UNC Charlotte.

Progress on absorption

The Charlotte office market is seeing substantial net absorption, heavily concentrated in newly completed buildings, showing the flight to quality seen in so many other markets, according to a third-quarter report from JLL.

About 3.6 million square feet of office space is under construction, with construction starts seeming to taper off. The overall vacancy is 17.6 percent, which is projected to fall somewhat.

One of the bigger news items on Charlotte’s office scene was the August announcement that the Bank of London will be locating its second hub in the U.S. in a 40,000-square-foot space at One Independence Center in Charlotte.

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Airpark West. Image courtesy of JLL

Lincoln Property Co. has acquired Airpark West, a 626,061-square-foot industrial park in Charlotte, N.C. Canada-based BentallGreenOak sold the asset for nearly $81 million, according to the Charlotte Business Journal. JLL Capital Markets worked on behalf of the seller.

Airpark West is a logistics park composed of four Class A buildings that are offering diverse leasing opportunities. The four buildings, located at 9015, 8805, 8810 and 8710 Air Park W. Dive, have been built in phases between 2007 and 2019. The tenant roster includes Chadwell Supply, Thibaut Design and Trane Supply, as well as Pupco, which fully occupies the fourth building, CommercialEdge data shows.

READ ALSO: Industrial Investment’s Changing Risk Picture

The four-building portfolio is situated close to Interstates 85 and 485, 3.7 miles from Charlotte Douglas International Airport and within 5 miles of Norfolk Southern CLT Intermodal Terminal. Additionally, Airpark West is situated near Interstates 77 and 277, providing easy access to Charlotte, N.C., Concord, N.C., and Gastonia, N.C.

JLL Capital Markets’ team led by Director Dave Andrews, Senior Managing Director Pete Pittroff, Managing Director Patrick Nally and Analyst Zach Lloyd negotiated the transaction on behalf of BentallGreenOak. According to the company, Charlotte’s industrial sector continues to demonstrate strong fundamentals, with a 5.6 percent employment growth in the warehousing and transportation industry as of the third quarter.

Earlier in 2022,  Westcore closed its first industrial purchase in North Carolina, with the acquisition of a two-building asset in Winston-Salem, while DRA Advisors acquired an 869,916-square-foot industrial portfolio in Charlotte, N.C., and Durham, N.C., for $71 million.

The post Lincoln Property Pays $81M for Charlotte Industrial Portfolio appeared first on Commercial Property Executive.

Doosan Bobcat Statesville facility. Image courtesy of Doosan Bobcat

Bobcat Co. has completed the expansion of its Statesville, N.C. manufacturing facility. After investing $70 million into the asset, the site is now the company’s largest North American manufacturing property.

The expanded facility is located at 1293 Glenway Drive within the 150-acre Doosan campus, some 42 miles north of Charlotte, N.C. Around 600,000 square feet of space was added, bringing the property’s total square footage to more than 1 million square feet.

Shultz + Associates Architects designed the expansion, while Omega Construction was the construction manager. Beginning in July 2021, construction took 14 months to complete.

The expansion increases Bobcat’s production capabilities and efficiency. New features include added space for research, development, manufacturing and warehousing. The facility now has an automated paint line, a shipping and delivery entrance, storage for finished inventory, docks for receiving and shipping, parts control/storage and a space for quality control and product testing. Additional parking was also added.

READ ALSO: Industry Embraces Reshoring Initiatives

To simplify the transfer of information across Bobcat’s national facilities, the new technology and system implementations are consistent across all North American manufacturing sites.

The Statesville location will produce the Bobcat mini track loader (MTL) as well as the compact tractor line. The MTL production line is currently in Bismarck, N.D., but will move to Statesville by the end of this year. The new facility will produce 35 units per shift, or a new Bobcat MT100 every 10.8 minutes. The compact tractor, which has been assembled in the Statesville facility since 2019, will continue its production on the site.

Generators, air compressors and light towers are also currently produced in the Statesville manufacturing facility.

Over the next five years, it is estimated that around 250 more jobs will be created in the Iredell County due to the facility’s expansion. Around one-third of these positions have been filled, bringing the current Statesville team to almost 600 employees.

The post Bobcat Wraps $70M NC Industrial Expansion appeared first on Commercial Property Executive.

6526 Carnegie Blvd. Image courtesy of JLL Capital Markets

Two newly renovated office buildings in Charlotte, N.C., sold to Griffin Partners for $50.9 million. JLL Capital Markets represented the seller, a partnership between Intercontinental Real Estate Corp. and Spectrum Cos. Carnegie and Roxborough, totaling 179,242 square feet, previously traded for a combined $35.5 million in 2016, CommercialEdge data shows.

The neighboring assets are in Charlotte’s SouthPark submarket. The 115,442-square-foot Carnegie rises five stories at 6525 Carnegie Blvd.; the second building, at 1901 Roxborough Road, is 63,800 square feet and four stories.

The properties were 88.4 percent leased at the time of sale to a mix of real estate, finance, engineering and construction companies, among others. One of the tenants is Movement Mortgage, which leased some 20,000 square feet at Roxborough in the second quarter of 2022, according to a Cushman & Wakefield report.

Situated roughly 6 miles south of downtown Charlotte, Carnegie and Roxborough are across the street from SouthPark Mall, having access to some 3 million square feet of grocery stores, restaurants and retail options. More than 2,500 multifamily units, several hotels and other office and mixed-use spaces are also nearby.

JLL Senior Managing Director Ryan Clutter and Director Daniel Flynn represented the seller.

Sold in a high-demand area

The Charlotte office sector is increasing in investor demand, with leasing activity accelerating in quarter two of 2022, according to a report by Avison Young. Office leasing activity was up 26 percent year-over-year as of June, the same report shows.

The Bank of London recently announced it will be locating its U.S. Global Platform and Services headquarters in Charlotte. Construction on a new 415,000-square-foot office tower, set to be a 24-story high-rise, has commenced in the area as well.

In the SouthPark submarket, Equus Capital sold The Rotunda, a Class A Office building totaling 234,670 square feet. The property is 1 mile away from Carnegie and Roxborough.

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The Rotunda

An affiliate of Equus Capital Partners Ltd. has completed the sale of The Rotunda, a four-story Class A office building totaling 234,670 square feet, in the SouthPark office submarket of Charlotte, N.C.

The buyer was not identified and was described only as an Atlanta-based institutional real estate investment fund manager. Nor was the transaction’s dollar value disclosed.

Ryan Clutter and Chris Lingerfelt of JLL represented Equus in the sale.

The Rotunda underwent a $4.5 million amenity and capital improvement program, most of which was completed in 2019. The renovations included the restrooms, the main building lobby, the upper floor elevator lobbies, elevator cab interiors, upgraded lighting in the portico, replacement of the cooling tower, creation of a new amenity space, and activating the 4,500-square-foot south side outdoor patio overlooking Symphony Park.

The Rotunda is at Congress Street and Carnegie Boulevard, about 5 miles south of Uptown Charlotte.

The 5.3-acre property was developed in 1988 and sits on a two-level parking deck. On-site amenities include a full-service restaurant known as Village Tavern, a conference center and an outdoor seating area.

READ ALSO: When CRE Sellers Are No Longer King

SouthPark Mall, the area’s premiere shopping mall, is directly across from the property, and several hotels and dining options are within walking distance.

The sale was made on behalf of Equus Investment Partnership X L.P., a $361 million discretionary equity fund managed by Equus.

In a prepared statement, Equus Vice President Peter Shatz remarked that the company succeeded in executing their value-add strategy, as shown by their ability to increase rental rates by 25 percent since acquiring The Rotunda in 2017.

Along with Shatz, Christopher Locatell, senior vice president of dispositions, oversaw the transaction for Equus.

Charlotte office market’s ups and downs

The Charlotte office market is characterized currently by a strong development pipeline of about 3.8 million square feet (about half of which is preleased), accelerating leasing activity and rental rate increases, according to a second-quarter report from Avison Young.

The 4.5 million-square-foot SouthPark office submarket has a Class A vacancy of 17.0 percent and saw negative net absorption of nearly 20,000 square feet in the second quarter, Avison Young reports.

In a high-profile lease, The Bank of London signed for 40,000 square feet at One Independence Center in Charlotte, just the company’s second U.S. location, the other being in New York City. JLL represented Crescent Communities, the building’s owner, and Savills represented the tenant.

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650 South Tryon at Legacy Union. Image courtesy of Lincoln Harris

A partnership between Lincoln Harris and Goldman Sachs Asset Management has completed the disposition of 650 South Tryon at Legacy Union, a 367,000-square-foot office building within Charlotte’s central business district.

Highwoods Properties Inc. paid $201.2 million for the LEED Gold-certified tower, Mecklenburg County records show, following the purchase agreement announced in May, which pointed to a total investment of $203 million.

The total investment includes $5.2 million for potential leasing expenditures aimed at stabilizing the multi-tenant property and excludes $3.7 million rent-related costs provided by the sellers.

Lincoln Harris will continue to oversee management and leasing operations at the 18-story building. Meanwhile, Highwoods secured a $118.4 million self-financed loan for the purchase, according to public records.

In the first seven months of the year, 19 office properties totaling 1.9 million square feet traded in a 15 mile-radius from the high-rise also known as Legacy Union SIX50, CommercialEdge data shows. The sales volume amounted to more than $634.5 million or $346.12 average sale price per square foot, below the $548.3 price per square foot shelled out by Highwoods.

Notable transactions included the $206 million acquisition of The Line, a recently completed 16-story office building totaling 305,000 square feet in the city’s South End neighborhood. CBRE Investment Management purchased the Gensler-designed property.

In May, Crestlight Capital paid $192.5 million for the two-building 526,650-squrae-foot office campus dubbed SouthPark Towers. The buyer financed the purchase with a $167.8 million acquisition loan originated by Mesa West Capital.

The third office tower within Legacy Union

650 South Tryon at Legacy Union. Image via Google Street View

650 South Tryon at Legacy Union features a cantilevered glass facade, 23,800-square-foot floorplates and also includes 10,208 square feet of retail space. The high-rise at 650 S. Tryon St. shares a parking structure with the adjacent Bank of America Tower.

650 South Tryon at Legacy Union is the third office tower sold by Lincoln Harris and Goldman Sachs Asset Management within the 10-acre Legacy Union, on the former site of the Charlotte Observer. The co-developers traded Honeywell’s global corporate headquarters last December for $275 million. PRP Real Estate Investment acquired the 23-story tower totaling 373,921 square feet.

The tallest building, the 868,064-square-foot Bank of America Tower, was also acquired by Highwoods Properties. The company paid $441.6 million in late-2019 for the 33-story high-rise. In July, Lincoln and Goldman announced plans for a fourth office tower at Legacy Union. Designed by LS3P, the 24-story high-rise will take shape at 600 S. Tryon St.

At the time of the sale, the tower was 79 percent leased to a roster that includes Deloitte, Cadwalader Wickersham & Taft, as well as JLL. Recently, The Bank of London announced plans for a second U.S. hub, less than half a mile away. The bank signed a 40,000-square-foot lease at One Independence Center.

The post Highwoods Properties Closes $201M Office Tower Acquisition appeared first on Commercial Property Executive.

Charlotte, N.C. Image courtesy of user 1778011 via Pixabay.com

The Bank of London will be locating its U.S. Global Platform and Services headquarters at One Independence Center in Charlotte, N.C. The bank leased 40,000 square feet from Crescent Communities for 11 years. By 2026, the space is set to accommodate up to 350 employees.

Barry Fabyan, Charley Leavitt and Grant Keyes with JLL represented Crescent Communities, and Tommy Beecher, with Savills, represented The Bank of London.

This marks The Bank of London’s second U.S. location, with its first office in New York. Launched in November 2021, the bank is also present in London and Belfast. When fully staffed, the Charlotte location’s surrounding counties can expect a $33 million annual payroll impact, according to the bank.

READ ALSO: CBRE Investment Management Buys Charlotte Office Asset

Located at 101 North Tryon Street, One Independence Center was built in 1983 and renovated in 2021, according to CommercialEdge data. The location is in Charlotte’s central business district, and the office space will have a terrace overlooking the intersection of Trade and Tryon streets.

Charlotte is known as a banking and fintech hub, with other financial and fintech companies having significant footprints in the metro. USAA leased 90,000 square feet in May, and Lincoln Harris and Goldman Sachs have mixed-use developments underway in the area.

The post Bank of London Picks Charlotte for 2nd US Hub appeared first on Commercial Property Executive.

600 S. Tryon. Image courtesy of Lincoln Harris

Legacy Union, the 10.2-acre, mixed-use development in Uptown Charlotte, N.C., will soon welcome its fourth office building, a 415,000-square-foot tower. Lincoln Harris and its partner, Goldman Sachs Asset Management’s real estate business, have already commenced construction on the 24-story high-rise at 600 S. Tryon.

Lincoln Harris and Goldman Sachs initiated the Legacy Union vision in 2016, when the partnership acquired the former Charlotte Observer site to make way for the project. Currently, the high-rise complex is home to the 841,000-square-foot Bank of America Tower at 620 S. Tryon, the 367,000-square-foot 650 S. Tryon and Honeywell’s 330,000-square-foot headquarters at 855 S. Mint St. All three office buildings feature ground-level retail space, and the campus also includes a 14-level parking facility, as well as a street-level public plaza and ample green space.

READ ALSO: CRE 2.0: The Office of the Future

Upon delivery, the newest addition to Legacy Union will supplement its office space with 20,000 square feet of ground-level retail offerings. Additionally, the building will provide podium parking, in addition to an amenity center with conference space, co-working accommodation and fitness spaces. LS3P, the architecture firm that designed the other office buildings at Legacy Union, is also behind the visual concept of 600 S. Tryon.

However, there will be more to 600 S. Tryon than its striking all-glass exterior and coveted amenities. In addition to integrated ESG elements, the tower will target LEED certification and it will incorporate such safety features as touchless building entry.

With the completion of the fourth tower, Legacy Union will encompass a total of approximately 2 million square feet of premier office space. The campus’ office buildings are hot properties in the investment community. In May 2022, Lincoln Harris agreed to sell 650 S. Tryon, which boasts Deloitte as its anchor, to Highwoods Properties Inc. for $203 million.

Sweet spot

It appears 600 S. Tryon is sprouting up in the right place at the right time. In the second quarter of 2022, more than 90 percent of all leasing activity was concentrated in Class A space, primarily within the Uptown, Airport and Ballantyne submarkets, according to a report by JLL. However, the proof is in the pudding and Lincoln Harris’ Ridr Knowlton and Campbell Walker landed a lease commitment from law firm Robinson Bradshaw for 102,000 square feet at 600 S. Tryon. The firm will set up shop on the building’s top four floors.

And there’s every reason to believe that Lincoln Harris will be able to stabilize the office tower in a reasonable amount of time, despite the national office sector’s continued challenges. “The flight-to-quality trend still dominates activity as companies lean on highly amenitized real estate as a magnet for talent recruitment and retention. New-to-market occupiers and investors will apply pressure for best-in-class, modern amenities and bring an increased focus on sustainable practices and employee wellness,” according to the JLL report.

The post New Office Tower Rises at Charlotte’s Legacy Union appeared first on Commercial Property Executive.

The site of the new Morehead Tryon project in Charlotte. Image via Google Earth

Riverside Investment & Development is planning to link two neighborhoods in Charlotte, N.C., with a $750 million mixed-use development, according to Charlotte Business Journal. According to the developer’s website, the project, Morehead & Tryon, will occupy a site that is the gateway between the traditional central business district environment of Uptown and the dynamic vibe of the South End.

Morehead & Tryon will consist of three high-rise buildings that will sprout up at a prominent intersection with the address of 1111 S. Tryon St. The new development, Riverside claims, will become “the new market standard for technology, efficiency, and occupant health and wellness.”

The live-work-play destination will encompass 650 luxury multifamily units, 50,000 square feet of retail space and 800,000 square feet of Class A office space. Riverside has tapped the CBRE team of Joe Franco, Kris Westmoreland and Stephanie Spivey to spearhead office leasing for the project.

Numbers Can Be Deceiving

Riverside’s decision to incorporate nearly a million square feet of office space at Morehead & Tryon may not appear to be in accord with current office market statistics—the availability rate was 16.9 percent in the fourth quarter of 2021 and more than 4.9 million square feet of product was under construction, according to a report by Savills—but change is afoot.

“Charlotte’s robust development pipeline is a bullish sign of higher office space demand in both the short- and long-term,” according to the Savills report. “Expect 2022 to see more companies from outside the market to become active in the market as corporate relocations could be accelerating again.”

Recent arrivals to Charlotte include St. Louis-based health-care administration corporation Centene, which announced in July 2020 that it had selected the city for a new $1 billion regional headquarters campus. In December 2020, U.K.-based electric vehicle manufacturer Arrival revealed it had chosen a 45,000-square-foot office space in the South End for its North American headquarters.

The post Riverside Investment’s $750M Live-Work-Play Plan for Charlotte appeared first on Commercial Property Executive.

110 East Blvd. Image courtesy of Stiles and Shorenstein Properties

Shorenstein Properties and Stiles broke ground this week on 110 East, a 23-story, 370,000-square-foot speculative Class A office building in the South End submarket of Charlotte, N.C.  The $186 million project is slated for completion by March 2024.

Located at 110 East Blvd., the building will be situated on a 1.99-acre parcel at the intersection of East and South Boulevard and directly at the platform of the LYNX Blue Line Light Rail and Charlotte Rail Trail, offering easy connectivity to commuters. Designed by Hastings Architecture, the building will include about 11,000 square feet of ground-floor retail, a parking garage with more than 900 spaces, a 4,000-square-foot fitness center and flexible conference spaces. Floorplates will be 29,000 square feet.

READ ALSO: What’s Driving the CRE Recovery?

Matt Knisely, managing director at Shorenstein, said in a prepared statement the location and amenities at 110 East will provide companies with high-quality resources. Calling Charlotte an attractive market, Knisely said the San Francisco-based real estate investment firm was pleased to expand its footprint in the city and to continue is longstanding partnership with Stiles. One of the projects they have teamed on is The Main Las Olas, a 2.7-acre mixed-use development in downtown Fort Lauderdale, Fla., where Stiles has its headquarters. The property includes a Class A, 357,000-square-foot office tower. In Charlotte, Shorenstein’s current office holdings include 6800 Solectron Drive, a 450,000-square-foot office asset acquired in October 2019.

Growing market

Justin Siemens, president of Stiles Carolinas, called 110 East a transformative project that will accommodate the tremendous growth in the Charlotte area. He said in prepared remarks the development team remains highly committed to the growing South End submarket and Charlotte market. Stiles’ other office projects in Charlotte date back to at least the fall of 2016, when the firm announced plans construct a three-story, 64,000-square-foot, Class A office building at 300 W. Summit Ave. in the South End neighborhood. Citing investor demand for office properties in the South End, Stiles sold the building early last year to a core fund advised by Zurich Alternative Asset Management for approximately $28.8 million.

Of the 2.1 million square feet of office space under construction in the fourth quarter of 2021, 824,693 square feet was being developed in the South End submarket, according to JLL’s Office Insight report. Overall, 4.9 million square feet delivered in 2021 from pre-pandemic projects and several long-awaited speculative projects broke ground last year as well, JLL reports.

In addition to 110 East, Stiles is building a mixed-use tower in the submarket with joint venture partner Catalyst Capital Partners. The project will have 291 units of ultra-luxury housing in a 30-story tower along with office, retail and restaurant space. Catalyst will be occupying the approximately 10,000 square feet of office space in the building. Construction is expected to begin later this year. The mixed-use tower at Camden Road and W. Park Avenue will be near 110 East.

Jessica Brown and David Dorsch of Cushman & Wakefield are handling the office leasing at 110 East.

The post Shorenstein, Stiles Break Ground on $186M Tower appeared first on Commercial Property Executive.

725 Ponce. Image courtesy of Cousins Properties

Cousins Properties has added two properties to its Sun Belt portfolio, while also divesting an older asset. The company acquired a fully leased office property in Atlanta, entered into a joint venture to develop a mixed-use project in Nashville, Tenn., and sold an office tower in Charlotte, N.C., that was built in 1974.

READ ALSO: Hudson Pacific, Blackstone Launch Big Studio Project

Colin Connolly, president & CEO of Cousins Properties, said in prepared remarks that the company had Nashville as a target for expansion as the market fit into its Sun Belt strategy. According to Cousins’ investor presentation in July, these three transactions would make for Cousins’ entry into Nashville with a path for growth, keep its portfolio relevant and modern, and decrease the portfolio’s lease-up risk and capex requirements.

In Atlanta, Cousins acquired 725 Ponce, a 372,000-square-foot office tower, from New City LLC and its institutional partner for $300.2 million. The office was completed in late 2019 and is currently fully occupied by tenants including BlackRock, McKinsey & Co. and Chick-fil-A. The Cousins’ presentation also showed that 725 Ponce had a weighted average lease term of 12 years. The company additionally spent $4 million for a 50 percent ownership of an adjacent site that can accommodate from 150,000 to 200,000 square feet of development.

In Nashville, Cousins entered into a joint venture with a large institutional investor to develop Neuhoff, a mixed-use project in the Germantown neighborhood. The project’s first phase includes 388,000 square feet of office space, 60,000 square feet of retail space and 542 multifamily units. Cousins’ $275 million investment secured a 50 percent ownership in Neuhoff’s first and second phases. The joint venture tapped New City Properties to serve as the development manager for the project, which has an expected initial delivery beginning in the fourth quarter of 2022.

Rearranging the Sun Belt portfolio

To improve the quality of its portfolio, Cousins also sold One South at the Plaza, its 40-story Class A office building in Charlotte. The company sold the office property to Monarch Alternative Capital LP for $271.5 million. The 891,000-square-foot tower was built in 1974 and saw a full building renovation in 2019. Cousins acquired One South at the Plaza in its merger with TIER REIT in 2019 but the property has since fallen to 58 percent occupancy, after Bank of America’s lease expired in December 2020. According to Cousins, the sale of the office tower doesn’t include the adjacent College Street parking deck that was recently acquired.

Connolly said in prepared remarks that the transactions allow Cousins to recycle capital from an older capex-intensive property into more modern assets. Following the sale of the Charlotte office tower, 10 percent of Cousins’ portfolio continues to be located in Charlotte. However, the majority of the company’s portfolio remains in Austin, Texas, and Atlanta at 31 and 35 percent, respectively.

The post Cousins Properties Closes 3 Sun Belt Deals appeared first on Commercial Property Executive.

Doosan Bobcat Statesville Expansion Plan. Image courtesy of Shultz + Associates Architects

In a move to accommodate current and future growth, compact equipment manufacturer Doosan Bobcat has recently held a groundbreaking ceremony for the 600,000-square-foot addition to its office and manufacturing complex in Statesville, N.C. The $70 million project will enhance the Charlotte-area property with manufacturing, warehouse and distribution space and double its size to roughly 1.2 million square feet.

READ ALSO: Dalfen Industrial Pays $115M for Tacoma-Area Logistics Park

Located at 1293 Glenway Drive, the Doosan campus sits roughly 42 miles north of Charlotte in Iredell County. The company tapped Shultz + Associates Architects to design the expansion, which will connect to the existing facility and offer such features as high exterior windows for abundant, natural daylight. The addition will accommodate space for R&D; parts control and storage; shipping and receiving docks; open air space for product testing and quality control; shipping and delivery entrance; and finished goods inventory storage. The site will have room for additional parking as well, as the expansion will yield 650 new jobs once fully operational.

Omega Construction is aboard the project as construction manager. Upon completion of the 62-acre expansion, which will increase the size of the site to a total of 154 acres, the Statesville campus will be the largest Doosan Bobcat manufacturing campus in the world. Announcement of the expansion plan follows a recent $11 million upgrade at the facility that reached completion in January 2021. Doosan has called Statesville home since 2008.

Manufacturers’ growth spurt

It’s not just Amazon that requires space in the industrial sector. While many businesses continue to struggle due to consequences of the pandemic, others are in expansion mode, and like Doosan Bobcat, many are bursting at the seams. Other manufacturing companies that are adding to their own square footage include Owens Corning, which announced earlier this year that it will build a 550,000-square-foot manufacturing facility across from its current site in Fort Smith, Ark. At the end of June, Nestlé Purina PetCare Co. announced it will invest $182 million to increase the size of its kitty litter production facility in King William County, Va. Doosan Bobcat is on schedule to complete its facility in the fall of 2022.

The post Doosan Bobcat Breaks Ground on $70M Industrial Complex appeared first on Commercial Property Executive.

NorthBay Medical Office Building, 2470 Hilborn Road, Fairfield, Calif. Image courtesy of courtesy of Anchor Health Properties

Anchor Health Properties continues its expansion program with the addition of four Class A medical office buildings to its holdings, courtesy of separate transactions valued at a total of more than $100 million.

With the new purchases, the national health-care real estate company has grown its portfolio by an aggregate 210,000 square feet in high barrier to entry markets on the West Coast and in North Carolina.

READ ALSO: Top Gateway Markets for Office Vacancy

Anchor’s new additions include California’s NorthBay Medical Office Building and Vista Medical Plaza, located in Fairfield and Vista, respectively, as well as IDC Medical Plaza in Renton, Wash., and University City Medical Office Building in Charlotte, N.C.

Vista Medical Plaza, 2067 W. Vista Way, Vista, Calif. Image courtesy of courtesy of Anchor Health Properties

The company acquired all four properties through joint ventures with existing institutional equity partners in off-market transactions. With the closing of the purchases, Anchor has completed $330 million in MOB investments via 12 transactions year-to-date. It’s a pattern; the company has been highly acquisitive throughout the global health crisis.

“The COVID 19 pandemic put many marketed investment sales processes across U.S. commercial real estate asset classes on hold—including medical office—and rewarded those investment firms who were able to create their own opportunities,” James Schmid, chief investment officer & managing partner with Anchor Health Properties, told Commercial Property Executive.

“It helped Anchor to have complementary development and management / leasing platforms, which also helped generate investment leads. At a macro level, U.S. consumers started spending on health care as a basic need function almost immediately after lockdowns ended last spring, which reinforced the tenancy within medical office buildings and helped ensure operating performance over the past 12+ months.”

Property particulars

IDC Medical Plaza, 1412 S.W. 43rd St. Renton, Wash. Image courtesy of courtesy of Anchor Health Properties

NorthBay MOB in Fairfield, Calif., carries the address of 2470 Hilborn Road and is part of the San Francisco MSA. The approximately 29,600-square-foot, two-story structure first opened its doors in 2015 and counts NorthBay Healthcare and Retinal Consultants Medical Group as tenants. At the other end of the state, the two-story Vista Medical Plaza at 2067 W. Vista Way sits in the San Diego-area market, offering roughly 54,700 square feet. The MOB is leased to such names as United HealthCare, Rady Children’s, LabCorp, Greider Eye Associates and Blue Coast Cardiology.

IDC Medical Plaza’s Renton address at 1412 S.W. 43rd St., places it firmly in the suburban Seattle market. The approximately 59,200-square-foot property opened in 2005 and holds the distinction of being one of only two MOBs to be erected in the Renton submarket within the last 15 years. A host of tenants call the building home, including anchor tenants Providence Health and a Sight Partners-operated ambulatory surgery center.

University Place Medical Office Building, 8401 Medical Plaza Drive, Charlotte, N.C. Image courtesy of courtesy of Anchor Health Properties

University City MOB at 8401 Medical Plaza Drive in Charlotte completes the group of new purchases and at 66,500 square feet, is the largest of the collection. Novant serves as anchor tenant at the three-story property, which occupies a site that provides more than 2 acres of excess developable land for future expansion. Anchor will bring all four assets under its corporate umbrella, providing asset and property management services at the properties, in addition to spearheading leasing activities.

The road ahead

The MOB sector is a competitive business. New construction notwithstanding, the MOB market in the U.S. has a relatively limited supply of investable inventory, according to a 2021 report by Colliers International. Furthermore, the majority of that inventory, approximately two-thirds, can be found under the ownership of health-care systems and providers. Anchor, however, is undaunted by the investment community’s increasing fondness for the resilient sector. The company still has big plans for the rest of 2021.

“We have $300 million of new investments under our control and see the potential to close on significantly more than that if things break our way,” Schmid said. “Our growth trajectory continues to open new doors for the firm, and we look forward to sustaining and diversifying the growth in the coming months.”

The post Anchor Health Adds $100M in MOBs to Portfolio appeared first on Commercial Property Executive.

1001 Bond St. Image courtesy of Cushman & Wakefield

Rialto Capital Management has sold a four-property, 869,916-square-foot industrial portfolio in Charlotte, N.C. and Durham, N.C., after three years of ownership. DRA Advisors paid $71 million for the asset.

At the time of the deal, the portfolio was 88 percent leased to five tenants. The former owner acquired the assets in mid-2018 from Trinity Capital Advisors for $39.8 million, according to Charlotte Business Journal.

The two largest properties, built in the 1960s, are situated in the Charlotte metro. Spanning 406,001 square feet across two buildings, 1001 Bond St. is located 5 miles north of Charlotte Douglas International Airport. The second property, located at 4001 Performance Road, has 187,000 square feet.

The Durham portfolio component includes two buildings at 2710 and 2910 Weck Drive. The structures date back to the 1980s and offer 107,968 and 168,847 square feet, respectively. The properties are 2 miles north of Interstate 40 and less than 8 miles northwest of Raleigh-Durham International Airport.

Cushman & Wakefield’s Rob Cochran, Stewart Calhoun, Casey Masters, Nolan Ashton, David Finger and Sara Owen of the capital markets team, along with Fermin Deoca and Eric Ridlehoover of the industrial leasing team represented Rialto in the deal.

In late 2020, DRA Advisors sold a 1.9 million-square-foot industrial portfolio to Spirit Realty Capital. The four properties, spread across a total of 141 acres, are each located near major metros, including Indianapolis, St. Louis, Atlanta and Oklahoma City.

The post DRA Advisors Buys $71M North Carolina Industrial Portfolio appeared first on Commercial Property Executive.

The Square at South End, 200 West Blvd. Image courtesy of USAA

USAA is joining the major financial services firms with a significant footprint in Charlotte, N.C. The San Antonio-based company announced on Thursday that it will lease 90,000 square feet at 200 West Blvd., a new 153,000-square-foot office building.

Part of The Square at South End, a mixed-use project being developed by Charlotte-based Beacon Partners in the city’s trendy South End neighborhood, 200 West Blvd. is scheduled for completion this summer, according to information on Beacon’s website. The East/West Blvd. light rail station, The Design Center, the Rail Trail and other amenities and attractions are within a short walk. USAA’s new office space will eventually house some 750 professionals, who will work either onsite or in a hybrid model, USAA said in a statement.

READ ALSO: Top 5 Markets for Office Construction Activity

With its new office, USAA establishes a larger corporate footprint in a city that serves as the headquarters for Bank of America and Truist. A principal attraction of gaining a presence in Charlotte is the large local talent pool in a variety of professions, ranging from banking and legal services to risk management and technology, noted USAA President & CEO Wayne Peacock in a statement.

Flowing pipeline

Also planned is Centro Square, the residential project sponsored by Centro Cityworks and Ascent Real Estate Capital, two Charlotte-based firms. Scheduled for completion in the summer of 2022, the six-story multifamily component will include 132 residential units and 7,300 square feet of ground-floor retail, according to the Charlotte Business Journal.

According to a February 2021 report from Charlotte Center City Partners, a nonprofit business development organization, South End’s development pipeline includes 2.2 million square feet of in-progress or planned construction. Also on the way are 371,000 square foot of retail, 3,800 residential units and 380 hotel guestrooms.

The Square at South End will also feature an outdoor wellness center and an outdoor plaza. A new community attraction, Wilmore Centennial Park, located on an adjacent 1.5-acre site, is scheduled for completion this summer.

Beacon Partners’ other recent developments in the area include RailYard South End. Completed in 2019, the project consists of two eight-story towers totaling nearly 300,000 square feet of office and 30,000 square feet of retail. Late last year Cousins Properties acquired the RailYard in a $201 million deal.

Charlotte’s 7.7 million square feet of under-construction office product represents 10.7 percent of existing inventory—the largest share of any major U.S. metro, according to CommercialEdge’s latest national office report. Office vacancy rate stood at 15.2 percent, 80 points lower than the national average, CommercialEdge reported.

The post USAA Takes 90 KSF in Charlotte appeared first on Commercial Property Executive.

Carolina 85 Logistics Center. Image courtesy of Equus Capital Partners Ltd.

Preparing to fill a void in local industrial offerings, Equus Capital Partners Ltd. has broken ground on a new project in the Charlotte area.

The developer and private equity real estate fund manager has commenced construction of Carolina 85 Logistics Center, an approximately 300,200-square-foot speculative logistics facility fronting Interstate 85 in Kings Mountain, N.C.

READ ALSO: Partners Group Strikes $1B Industrial Deal

Carolina 85 will take shape on a 23-acre site at 300 Woodlake Parkway in Gaston County, roughly 30 miles west of Charlotte’s central business district. Equus completed the purchase of the land for the project earlier this year, after successfully obtaining rezoning approval from the Kings Mountain City Council for a 13-acre portion of the site in 2020.

The Class A warehouse, which will feature 32-foot clear heights and 55 trailer parking spaces, is designed to accommodate either a single occupant or multiple users seeking a home named for a thoroughfare that Equus refers to in a prepared statement as the “logistics spine for the Southeastern Region.”

Equus is relying on Equus Development LP, its development operating division, to manage development and construction activity for Carolina 85, and the company has tapped Cushman & Wakefield’s Matt Treble, Fermin Montes de Oca and Patrick McGrath to oversee an aggressive marketing and leasing campaign. Equus is confident that the project will be partially preleased in advance of its scheduled delivery in December 2021.

Desperately seeking space in Charlotte

Equus has every reason to believe that Carolina 85 will see a full tenant roster sooner rather than later; demand for industrial is strong in Charlotte. Metropolitan Charlotte logged more than 2.5 million square feet of new leasing activity in the first quarter of 2021, helping to push the quarter-over-quarter vacancy rate down 30 basis points to 7.7 percent, according to a report by Cushman & Wakefield. A first quarter 2021 report by Cresa puts the vacancy rate in Gaston County at a mere 3.7 percent.

Carolina 85, however, has more than just a good location working in its favor; it has size on its side as well. “At the close of the first quarter of 2021, space options for tenants requiring larger Class A space were extremely limited—only six options for spaces 250,000 square feet or larger with 32-foot clear heights are available for immediate occupancy,” according to the Cushman & Wakefield report.

Multi-tasking

Equus has had a busy six months, remaining active in a bevy of diverse transactions. The company completed a 1.1 million-square-foot industrial lease with Lowe’s Home Centers in Shippensburg, Pa., in November 2020 and acquired a 304-unit multifamily community in Naples, Fla., for $82.3 million in December. Most recently, the company has closed a handful of dispositions, including that of a three-building office and lab portfolio in Wyomissing, Pa., and a two-building office/R&D portfolio in Silicon Valley. Perhaps most notably, Equus sold and recapitalized an 8.6 million-square-foot industrial portfolio for a consideration of $1 billion.

The post Equus Capital Breaks Ground on Charlotte-Area Industrial Facility appeared first on Commercial Property Executive.

The Wells Fargo Capitol Center is the largest property in the transaction.

UPDATE: By closing time, the deal amount changed to $683 million.

Preferred Apartment Communities has agreed to sell an office portfolio to Highwoods Properties for $769 million. The deal, which includes 1.8 million square feet in Charlotte, N.C., Raleigh, N.C., and Atlanta, is slated to close in the third quarter. Highwoods intends to finance the purchase with the sale of a number of its non-core office properties.

The largest part of the portfolio is in Raleigh, comprising the 560,000-square-foot Wells Fargo Capitol Center at 150 Fayetteville St. in the city center and the 300,000-square-foot CAPTRUST Tower in the North Hills submarket. This marks the second major acquisition Highwoods has made in Raleigh this year alone: In January, the company paid $131.3 million to acquire a full ownership stake in The Forum, a 636,000-square-foot campus 10 miles from downtown.

The portfolio also includes two properties in Charlotte: the 479,000-square-foot Capitol Towers and the 291,000-square-foot Morrocroft Centre. PAC acquired the two Capitol Towers in late 2018 for $208.8 million, according to CommercialEdge data, with the three-building Morrocroft Centre fetching a $107.6 million price tag in December 2019.

Non-core Atlanta component

Armour Yards in Atlanta

In addition to the four assets in North Carolina, the portfolio also includes several non-core properties in Atlanta. Armour Yards, a creative office campus which delivered in 2016 and 2017, totals 187,000 square feet and is located near another asset that was part of the transaction: a 36,000-square-foot office building at 251 Armour Drive NE. Due to Highwoods’ preferred focus on core office properties, PAC will continue to market these assets for sale to a third party.

Finally, the portfolio will include a mezzanine loan to build 8West, a nine-story building in Atlanta’s Midtown district. The 195,000-square-foot project would replace an existing, 123,501-square-foot single-story office asset that PAC acquired in late 2016.

The post Highwoods Commits to $769M Office Buy appeared first on Commercial Property Executive.

2825 South. Image courtesy of Marsh Properties

Marsh Properties continues to make progress on its Sedgefield mixed-use redevelopment in Charlotte, N.C.’s blossoming South End neighborhood with the announcement of plans for a new office project. Marsh is partnering with Aston Properties to develop the approximately 138,800-square-foot office and retail building known as 2825 South.

READ ALSO: McCraney Property Buys Land for 1.2 MSF Spec Industrial Park

Sited along South Blvd. between Elmhurst Road and Marsh Road, 2825 South will constitute the “work” component of the live-work-play Sedgefield mixed-use endeavor. The six-story building will feature roughly 118,400 square feet of office space spanning four floors atop a structured parking deck and approximately 20,400 square feet of ground-level retail accommodations.

LS3P is the architect behind 2825 South, which is designed to provide users a safer and healthier workplace in the post-pandemic era. In Charlotte, according to a fourth quarter 2020 report by JLL, “the question of office re-entry looks less like an ‘if’ and more like a ‘when.’” The building will offer such features as touchless automatic building entry doors; touchless elevator controls and destination dispatch; washable material finishes; and advanced air filtration systems.

In an added demonstration of support for 2825 South, Aston has committed to occupying 8,000 square feet of office space at the property and Samet Corp., which is serving as the general contractor for the project, has staked a claim to 12,000 square feet. Trinity Partners is handling leasing for the office segment at 2825 South, while Aston is overseeing leasing for the building’s retail component.

Primed for a rebound

Metropolitan Charlotte’s office market did not go unscathed amid the ravages of the COVID-19 pandemic. However, the city is well-equipped to regain its footing and welcome new office developments like 2825 South and others. “In the post vaccine world, the Charlotte office market will be one of the first office markets to stage a recovery,” according to the JLL report. “The market has a solid foundation buoyed by growing office sector employment and surging population growth. The same conditions that made Charlotte one of the top destinations for corporate relocations and expansions remain. As user requirements grow, the market will be ready for new entrants.” Marsh and Aston expect to break ground on 2825 South in September 2021.

The post Marsh Properties JV Plans Charlotte Office Project appeared first on Commercial Property Executive.

Image courtesy of Marcin Jozwiak via Pixabay.com

McCraney Property Co. has purchased an ensemble of four parcels totaling 150 acres for the development of a 1.2 million-square-foot speculative industrial park in Charlotte, N.C. The off-market transaction marks the sale of the last premium vacant lots in the city’s Southwest Airport submarket.

READ ALSO: Ramping Up Warehouse Safety

Dubbed 485 Logistics Industrial Park, the five-building Class A project is still under review by city officials, while the parcels’ rezoning from residential to industrial use has already been approved. The development would bring McCraney’s total footprint in the market to more than 2 million square feet.

The four parcels near Charlotte Douglas International Airport are less than a mile from Interstate 485, while central Charlotte is roughly 8 miles west. The project would more than double the submarket’s industrial stock under construction as of the last quarter of 2020.

Joe Curley, leasing & acquisition director of Southeastern Regions at McCraney, arranged the deal in-house on behalf of the buyer, while Avison Young’s Managing Director & Principal Christopher Skibinski, along with Vice President Chris Loyd represented one of the four sellers.

McCraney’s recent deals

The announcement comes on the heels of McCraney’s disposition of the three-building, 350,687-square-foot Airport South Business Park, situated in the same submarket. Nuveen paid $272 million to acquire the asset, along with five other warehouses in Florida and Georgia. In 2017, McCraney bought 54 acres for the development, which was initially slated to comprise six buildings.

Down in Florida, McCraney and partner Tavistock Development Co. are in the process of developing the 206-acre Infinity Park’s second phase in Orlando, Fla. The expanding park’s latest 433,404-square-foot speculative warehouse, dubbed Building 800, was the largest industrial development underway in the market at the end of last year.

The post McCraney Property Buys Land for 1.2 MSF Spec Industrial Park appeared first on Commercial Property Executive.

ATCO Properties & Management and Shorenstein Properties LLC are beginning Phase II of the 76-acre, 1 million-square-foot Camp North End adaptive reuse and redevelopment project in Charlotte, N.C., this month and expect construction at the mixed-use campus to be completed by early 2022.

READ ALSO: Top Projects That Will Reshape Los Angeles

The second phase will add 120,000 square feet of Class A office space and approximately 15,000 to 20,000 square feet of retail to the live-work-play hub in the city’s North End Smart District. The plan includes two adaptive-reuse buildings at 201 Camp Road and 701 Keswick Ave., along with construction of new multifamily units and a parking garage. The project team, including S9 Architecture and BB+M Architecture, is also in the planning stages for several other buildings on the site, which will feature the renovation of the historic Ford Factory. Once a manufacturing plant for Model T and Model A cars, the former factory dates back to 1924 and was recently designated as a local historic landmark.

Now one of the largest adaptive reuse projects in the U.S., the Camp North End site was also home to a U.S. quartermaster depot during World War II and was converted to the Charlotte Area Munitions Plant during the Cold War. The site was also used by the U.S. Army to assemble Gama Goat vehicles. In June, the developers announced they had completed the adaptive reuse of the Gama Goat Building at 1801 N. Graham St. and began leasing the space as a creative office property.

In addition to the Gama Goat Building, which has been awarded a two-star Fitwel Community Design Certification, Phase I involved the leasing of 70,000 square feet in buildings facing The Boileryard and The Mount, two of the project’s districts. Phase I, which included completion of the site’s main retail thoroughfare, Keswick Avenue, was done by summer. All four food stalls at the Keswick Avenue section were fully leased by that time, with tenants like La Caseta, Bleu Barn Bistro, SARU by Bow Ramen and Plant Joy. Other retail tenants in recent months include used bookstore That’s Novel Books, specialty paper goods shop Good Postage, plant shop GROW, Leah & Louise restaurant, gourmet bakery Wentworth & Fenn, taproom Free Range Brewing, specialty cocktail company Black Moth Bars, dessert stand Popbar and boutique fitness center bloc, which leased space at the Gama Goat Building.

Health and wellness

Plans to revitalize the former industrial site began in earnest in May 2018 when ATCO formed a joint venture partnership with Shorenstein. Damon Hemmerdinger, co-president of ATCO, said in a prepared statement that beginning Phase II was a milestone in the team’s efforts to redefine the modern work environment, to enliven the commercial center of the North End and create a place where creativity and innovation thrive.

Matt Knisely, managing director at Shorenstein, said in prepared remarks the Phase II announcement is a testament to the initial success of Camp North End. He said they look forward to expanding the offerings at the site and to continue doing it safely.

In August, Tommy Mann, ATCO development director, told Commercial Property Executive the project had always been planned with a special focus on health and wellness. He noted that some of the design elements at Camp North End are particularly appropriate and welcome now for companies looking for safe spaces for their employees during and after the pandemic. The buildings are all single story and office spaces have multiple entrances directly to the outdoors. There are no common lobbies, no elevators and no shared restrooms. Each office space has its own self-contained HVAC system that lets in 20 to 30 percent more outside air than a typical office tower.

Camp North End was one of the first four developments in North America to receive Fitwel Community Certification from the Center for Active Design. Other health and wellness offerings at the site include ample outdoor amenities including a quarter-mile covered walking loop, bike storage, community gardens and public art.

A Cushman & Wakefield team comprising Jessica Brown, David Dorsch and Grant Keyes are the exclusive leasing agents for the property’s office component.

The post Charlotte Adaptive Reuse Project Starts Phase 2 appeared first on Commercial Property Executive.

446 Wrenplace Road. Image via Google Maps

Office Properties Income Trust has acquired a 150,000-square-foot, Class A office building in Fort Mill, S.C., for $35.1 million. Completed in 2019, the property is fully leased to RoundPoint Mortgage Servicing Corp.­— a subsidiary of Freedom Mortgage Co.—serving as its corporate headquarters.

RoundPoint broke ground on the three-story building in mid-2018, as reported by Charlotte Business Journal. The site was home to the Charlotte Knights stadium and is part of the 350-acre, mixed-use Southbridge project, developed by Lincoln Harris with owner The Gato Corp.

Spanning 16 acres at 446 Wrenplace Road, the property sits along Interstate 77, 15 miles southwest of downtown Charlotte, N.C. The interchange between I77 and Interstate 485 is 6 miles north of the site.

OPI was formed in late 2018, through the merger of Government Properties Income Trust and Select Income REIT. The current sale reflects the company’s strategy of purchasing newly constructed, single-tenant Class A assets with long-term leases, according to David Blackman, president & CEO of the REIT. Earlier this year, the company announced Blackman’s retirement in 2021, with Christopher Bilotto named as his successor.

The post OPI Picks Up Metro Charlotte Office Asset for $35M appeared first on Commercial Property Executive.

Stateline77. Image courtesy of Rockefeller Group

Rockefeller Group has started construction on Stateline77, a two-building, 1 million-square-foot speculative industrial development in Fort Mill, S.C.

The distribution center, designed to include two warehouses of 814,162 square feet and 221,000 square feet, respectively, represents the company’s second development in the Charlotte area in the last two years. Edwards Construction Services serves as design builder for the project slated for a January 2022 completion. JLL’s Jordan Quinn and Spencer Yorke will spearhead leasing efforts.

Stateline77 will take shape on Logistics Lane, an under-construction road off Central Carolina Parkway, on a 77.5-acre parcel the developer purchased in 2019. Upon completion, the property’s 814,000-square-foot building will offer 40-foot clear heights, a 185-foot truck court and 197 trailer parking spaces. The 221,000-square-foot warehouse will feature 32-foot clear heights and 164 auto-parking stalls.

The development site is some 5 miles north of downtown Fort Mill, 1 mile south of the Interstate 77-U.S. Route 21 interchange. Rockefeller Group Director Steven McGee said, in a prepared statement, that the Charlotte industrial market vacancy rate is in the 6 percent range, while the metro’s year-to-date absorption hit 4 million square feet.

In September, Rockefeller Group broke ground on a 222,330-square-foot speculative industrial property in Braselton, Ga. Randall-Paulson Architects designed that project, slated for delivery in 2021.

The post Rockefeller Group Breaks Ground on 1 MSF Charlotte-Area Project appeared first on Commercial Property Executive.

The RailYard

Cousins Properties has acquired The RailYard, a 329,000-square-foot creative office asset in Charlotte, N.C. The seller, Beacon Partners, traded the property for $201 million. According to public records, the buyer self-financed the deal.

Built in 2019, the two-building property comprises nearly 300,000 square feet of office and 30,000 square feet of retail space. Common-area amenities include a fitness center, a rooftop terrace and locker rooms. Parking is available at a ratio of 3 spaces per 1,000 square feet in an attached, multi-level structure. The tenant roster includes Allstate and Ernst & Young, among others. 

Located on 3 acres at 1414 S. Tryon St., the asset is 1 mile from downtown in Charlotte’s vibrant South End neighborhood, home to a wide variety of shopping and dining establishments. The property is within 1 mile of Interstate 277 and is less than half a mile from two light rail stations. 

In December 2019, Cousins Properties agreed to the sale of a 46-story, Class A office tower 1 mile northeast of The RailYard for more than $450 million. Anchor tenant Truist Financial was the buyer. 

The post Cousins Properties Pays $201M for Charlotte Creative Office appeared first on Commercial Property Executive.

325 Hawthorne Lane. Image courtesy of Anchor Health Properties

Although Charlotte commercial real estate is facing headwinds, the metro is showing signs of resilience, owing to strong population growth, a diversified economy and the explosive growth of e-commerce in the wider region. A number of major industrial acquisitions closed during the past month, and the market’s office sector also appears well positioned, even as more than 5.2 million square feet is under construction. Here’s our November list of Charlotte must-knows:

1. DEAL – Clarion buys logistics portfolio for $201 million.

Developer Beacon Partners sold the 1.9 million-square-foot Metrolina Park, located 7 miles north of downtown Charlotte in the I-77 industrial corridor. The eight properties, constructed between 1996 and 2018, range from 135,105 to 495,950 square feet. Clarion Partners assumed a number of outstanding debts relating to the assets as part of the deal. JLL Senior Managing Directors Pete Pittroff and Travis Anderson led the team representing Beacon.

2. LEASE – Cushman & Wakefield closes East Forest office lease.

The brokerage represented Community Alternatives in its 22,243-square-foot agreement at INQ @ 2401, a 162,372-square-foot office property at 2401 Sardis Road N. CBRE worked on behalf of the landlord, Mainstreet Capital Partners. The 1980s-era building, formerly a Super Kmart, was converted to office space in 2016, according to CommercialEdge data.

3. DEAL – GCP sells North Charlotte industrial property.

Exeter Property Group acquired the 464,947-square-foot asset at 10000 Twin Lakes Parkway for $27.6 million, according to Charlotte Business Journal. CommercialEdge further shows the deal was one component of a larger, $800 million portfolio disposition, involving a mix of industrial, self storage and hospitality assets across 11 markets. Exeter also assumed a $60 million MetLife loan from December 2017 alongside the acquisition.

4. DEAL – Anchor Health pays $50 million for medical office portfolio.

Novant Health anchors the three buildings, which total 97,000 square feet. Synovus Bank provided the buyer with acquisition financing for the off-market transactions. The largest property, a 36,000-square-foot asset at 325 Hawthorne Lane, has 12,000-square-foot floorplates, two elevators and covered parking. CommercialEdge shows the property is subject to a ground lease held by Novant Health.

The post Charlotte Commercial Real Estate Roundup – November 2020 appeared first on Commercial Property Executive.

Metrolina Park. Image courtesy of JLL

Beacon Partners has sold Metrolina Park, an eight-building industrial complex encompassing almost 1.9 million square feet in Charlotte, N.C. Clarion Partners acquired the warehouses on behalf of one of its funds, for a total of $201 million, according to Mecklenburg County records. 

As part of the transaction, the new owner assumed the existing debt that encumbered the properties. TIAA provided several notes to the seller and developer between 2015 and 2020, per public records.

Metrolina Park spreads across 114 acres. The properties are located at 4901, 5224 and 5321 Gibbon Road; 7110 Expo Drive; 7224, 7320, 7335 and 7600 Statesville Road. Three of the facilities were built between 1996 and 2006, while the remaining five were delivered between 2017 and 2018. The warehouses vary in size between 135,105 square feet and 495,950 square feet.

The asset is within 2 miles of Interstate 77, which also provides access to interstates 85 and 485. The campus is 12 miles northeast of Charlotte Douglas International Airport and 7 miles north of the city center. Other companies along the I-77 industrial corridor include Bonded Logistics, WESCO Distribution and US Foods.

JLL Capital Markets Senior Managing Directors Pete Pittroff and Travis Anderson, Senior Director Patrick Nally, President Jody Thornton, along with Analyst Dave Andrews, assisted the seller in the transaction. 

Earlier this month, Clarion Partners closed the $90 million disposition of a 257,489-square-foot trophy office asset in Fall Church, Va. Apollo Global Management acquired the eight-story building.

The post Clarion Partners Buys $201M Charlotte Logistics Park appeared first on Commercial Property Executive.

The Villages Shoppes at Sherrills Ford. Image courtesy of Cushman & Wakefield

Koury Corp. has acquired The Villages Shoppes at Sherrills Ford, a Publix-anchored retail center in Sherrills Ford, N.C., from developer Wagner Property Group. Cushman & Wakefield arranged the $13.9 million sale of the newly constructed asset.

The 60,300-square-foot property is located at the intersection of U.S. Road 150 and Slanting Bridge Road, roughly 34 miles north of Charlotte, N.C. Other tenants include Pizza Hut, Coinstar and Hardee’s. According to Charlotte Stories, the shopping center opened its doors in the first half of 2018.

The site is part of Prestige Corporate Development’s 206-acre The Village at Sherrills Ford project along with Lake Norman, currently under construction. The development will include some 6,000 single-family units, retail and medical space.

The brokering team arranging the deal comprised Managing Director Fain Hicks, Senior Director Margaret Jones and Senior Associate Lane Breedlove. Cushman & Wakefield hired Jones to lead the Southeast Retail investment team at the beginning of the year, after spending more than a decade at JLL.

The post Charlotte-Area Shopping Center Changes Hands for $14M appeared first on Commercial Property Executive.

Although construction activity slowed down this year, a handful of new projects broke ground nevertheless. Charlotte’s diverse economy made way for a new influx of campus expansions, as well as taller and bigger buildings—the future Charlotte Metro Tower was the largest one to break ground in the past decade. The list below highlights the largest office projects underway in the metro as of November, based on CommercialEdge data.

5. Ballantyne Corporate Park – 13146 Ballantyne Corporate Place

Ballantyne Corporate Park. Rendering courtesy of Northwood Investors

In May 2019, Northwood Investors broke ground on 13146 Ballantyne Corporate Place, a 328,000-square-foot asset within Ballantyne Corporate Park. The 535-acre mixed-use campus is located in Charlotte’s Highway 51 submarket and is considered one of the largest campuses under single ownership in the country. Additionally, the project represents Northwood’s first development since acquiring the majority of the Ballantyne portfolio in 2017.

Upon completion, scheduled for March 2021, the 11-story building will include a 1,312-space parking structure shared with the upcoming Ballantyne Corporate Park residential tower—the first apartment building within the complex. Wells Fargo financed the construction with a $121 million loan.

4. Lowe’s Global Technology Center

Lowe’s Global Technology Center. Image courtesy of Lowe’s

A joint venture between Childress Klein and Ram Realty Advisors is developing Lowe’s Global Technology Center, a 377,956-square-foot building in Midtown-South End. The $153 million project broke ground in August 2019, with completion estimated for the second quarter of 2021. Architecture firm Little Diversified provided the design services.

The 23-story tower, the tallest office building underway in the South End neighborhood, will include 357,956 square feet of office space, 20,000 square feet of first-floor retail and nine levels of parking. It will serve as Lowe’s newest global tech hub, housing nearly 2,000 of its technology employees. Located at 100 W. Worthington Ave., the asset is rising adjacent to the Lynx Blue Line light rail and Rail Trail. 

3. Legacy Union – 650 South Tryon

Legacy Union – 650 South Tryon. Image via Google Street View

The 370,240-square-foot building at 650 S. Tryon St. is a Lincoln Harris project taking shape in Charlotte’s CBD. Rising 18 stories on the former site of The Charlotte Observer, the development represents the final phase of the two-building Legacy Union campus. When completed at the end of 2020, the tower will add 362,448 square feet of office and 7,792 square feet of retail space to the market’s total inventory.

U.S. Bank funded construction with an $88.1 million loan. Deloitte signed a 90,000-square-foot lease in December 2018 and will serve as the anchor tenant. The development team included architect companies LS3P and HKS and general contractors Gilbane Building Co. and Shelco.

2. Ally Charlotte Center

Ally Charlotte Center. Rendering courtesy of Crescent Communities

Another project emerging in the CBD is Crescent Communities’ Ally Charlotte Center. The 743,600-square-foot development at 601 S. Tryon St. spreads a full city block and includes 717,000 square feet of office space, 26,600 square feet of ground-floor retail, a 12,000-square-foot public plaza, a 1,436-stall parking garage and a 381-key JW Marriott hotel developed by White Lodging.

The 26-story Ally Charlotte Center is expected to come online in the first quarter of 2021. The project takes its name from anchor tenant Ally Financial, which will consolidate its Charlotte team within the building and take up 400,000 square feet.

1. Charlotte Metro Tower

Charlotte Metro Tower. Rendering courtesy of Duke Energy

The largest office property under construction in the metro is Charlotte Metro Tower, another project taking shape in the CBD. Encompassing 1 million square feet of office space and 25,000 square feet of retail, the tower is scheduled for delivery in March 2022. Once delivered, Charlotte Metro Tower will be the fourth-largest office building in the city and the largest one to break ground in a decade. The architect in charge is tvsdesign, while Batson-Cook Construction serves as the general contractor.

Duke Energy started construction on the 40-story development in July 2019. The company subsequently sold the project in a sale-leaseback deal to a joint venture between CGA Capital and Childress Klein for $675 million. Located at 509 S. Tryon St., the upcoming asset is across the street from the company’s current headquarters.

The post Top 5 Office Projects Under Construction in Charlotte appeared first on Commercial Property Executive.

The three-story, 36,000-square-foot building at Hawthorne Lane is on the campus of Novant Health Presbyterian Medical Center. The 2016-built facility features primary and specialty services such as urology, bariatrics and OBGYN. The asset was acquired in an all-cash transaction from Hale Partnership Capital Management, according to Yardi Matrix data.

Delivered in 2008, the Steelecroft Parkway facility last traded in 2019 for $12.7 million, Yardi Matrix shows. The two-story, 34,000-square-foot building houses a diverse mix of tenants providing imaging, gastroenterology, pediatric, women’s health and dentistry services, among others.

The third structure is a 27,000-square-foot, recently constructed building in Cotswold, about 5 miles south of Uptown Charlotte. The property provides orthopedics, sports medicine and dentistry services. Novant Health opened a 13,000-square-foot clinic on-site in February.

During the past month, Anchor Health completed several medical office acquisitions across the U.S. October deals included a two-building, 78,690-square-foot portfolio in Germantown, Tenn., and another two-building, 42,857-square-foot property in Temecula, Calif.

The post Anchor Health Grows Charlotte Presence With $50M Buy appeared first on Commercial Property Executive.

Novant Health Claudia W. and John M. Belk Heart & Vascular Institute and Agnes B. and Edward I. Weisiger Cancer Institute. Image courtesy of Novant Health

Charlotte’s commercial real estate activity began to pick up in October, following some easing of restrictions at the state level. In line with national trends, several notable industrial transactions closed through the month, but even the office sector saw significant movement, both in terms of deals and developments, underscoring the metro’s importance as a fintech hub. Here’s our October list of Charlotte must-reads:

1. DEAL – Nuveen buys industrial park in $272 million deal.

McCraney Property Co. and Northwestern Mutual sold the three-building, 350,687-square-foot Airport South Business Park, together with five other warehouses in Florida and Georgia, according to Charlotte Business Journal. McCraney purchased 54 acres for the Airport South project in 2017. Initial plans called for six buildings, but only three moved forward. Located at the intersection of West Boulevard and Billy Graham Parkway, the property is less than 3 miles southeast of Charlotte Douglas International Airport.

2. DEVELOPMENT – Second tower breaks ground at Vantage South End.

The Spectrum Cos. started work on the 286,000-square-foot office project within the 5-acre, mixed-use development that will link Uptown and South End. Completion is slated for early 2022. The wider, $300 million Vantage South End development broke ground in July 2019 and will include 580,000 square feet of office space, 55,000 square feet of experiential retail, a 1-acre urban park with event space and a 200-key boutique hotel at full build-out.

3. DEAL – Northwood Investors pays $90 million for mixed-use Midtown asset.

The company purchased the three-building, 342,233-square-foot Metropolitan Midtown through affiliated funds, with MetLife providing $61 million in financing. The Class A property at 1111 Metropolitan Ave. encompasses 170,589 square feet of office space, a 171,644-square-foot retail component, 101 residential condominiums and a 1,110-space parking structure, as well as a 1.3-acre development lot. JLL represented the seller, JPMorgan Asset Management, and sourced the new owner’s acquisition financing.

4. DEVELOPMENT – Outpatient facility opens near Novant Health Presbyterian.

Novant Health completed the $165.9 million Novant Health Claudia W. and John M. Belk Heart & Vascular Institute and the Agnes B. and Edward I. Weisiger Cancer Institute. Vannoy Construction broke ground on the 260,000-square-foot building in late 2018, with McCulloch England Associates serving as architect. The seven-story facility at 125 Queens Road is linked to the adjacent medical center through an enclosed walkway spanning East Fourth Street.

5. DEAL – Lightstone acquires distribution facility.

The company paid Clarius Partners $34 million for the 400,000-square-foot property at 7800 Tuckaseegee Road. The recently delivered warehouse is 50 percent leased to Power Distributors and will be rebranded as Lightstone Logistics Center. The asset is near the intersection of interstates 85 and 485, less than 2 miles north of the airport. The facility features 36-foot clear heights, 70 dock doors and nearly 400 parking spaces for cars and trailers. Avison Young represented Clarius, while JLL secured the buyer’s acquisition financing.

The post Charlotte Commercial Real Estate Wrap-Up – October 2020 appeared first on Commercial Property Executive.

Vantage South End. Image courtesy of The Spectrum Cos.

The Spectrum Cos. has moved a step closer toward the realization of its $300 million mixed-use Vantage South End development in Charlotte, N.C., with the start of construction on a second office building. The new East Tower will deliver approximately 290,000 square feet of premier office space to the market.

READ ALSO: Charlotte Commercial Real Estate Wrap-Up – September 2020

Spectrum is developing Vantage South End in partnership with Invesco Real Estate. Located one block from a light rail stop and within close proximity of Bank of America Stadium and Truist Field, the mixed-use project will span 5 acres and serve as a connection between Charlotte’s Uptown and South End communities. At full build-out, the property will feature roughly 580,000 square feet of Class A office space, a 200-key boutique hotel and approximately 57,000 square feet of restaurant and retail offerings. Additionally, the site will be home to a 1-acre urban park available to tenants and the community.

The new East Tower development will stand 11 stories at 1415 Vantage Park Drive and, like the West Tower, it will feature event and conference offerings and a bevy of terraces overlooking the mixed-use destination’s urban park. Spectrum expects the open and activated green space to serve as a major draw for tenants. The company describes the project as centering on a “work from park” concept, or WFP, marking another advancement in the remote “work from anywhere” evolution.

Pandemic-era lease-up

The first office building at Vantage South End has already attracted LendingTree as a tenant; the online lending marketplace will anchor the West Tower with a 175,000 square-foot space beginning in the first quarter of 2021. As for the newly begun office building, Spectrum is undeterred by the challenges the national office market is facing due to COVID-19. As Steve McClure, chief operating officer of The Spectrum Cos., said in a prepared statement, the company is still excited about the prospects for Charlotte and believes that the region’s quality of life, unrivaled talent pool and dynamic neighborhoods will continue to attract companies seeking a place where they and their employees can grow and prosper.

The post Spectrum Cos. Kicks Off Project Expansion in Charlotte appeared first on Commercial Property Executive.

Metropolitan Midtown

Northwood Investors has completed the acquisition of Metropolitan Midtown, a three-building, 342,233-square-foot mixed-use development in Charlotte, N.C., through affiliated funds. According to public records, the Class A property changed hands for $90 million, while MetLife provided $61 million in acquisition financing.

JLL negotiated on behalf of the seller—institutional investors advised by J.P. Morgan Asset Management—and secured the financing package for the buyer. Metropolitan Midtown last traded in 2013 for $94.4 million, Yardi Matrix data shows.

Located at 1111 Metropolitan Ave., the property came online in 2008 and is LEED Silver certified. Metropolitan Midtown encompasses 170,589 square feet of office space, 171,644 square feet of retail, 101 residential condominiums and a 1,110-space parking structure, as well as a 1.3-acre development lot. According to JLL, the office component was 97.1 percent leased at the time of sale. A Trader Joe’s anchors the asset’s retail portion, while other tenants on the roster include national and local companies such as Marshalls, Best Buy and Zoe’s Kitchen.

Metropolitan Midtown is less than 2 miles from downtown Charlotte, just south of Interstate 277. The 8-acre property is roughly 3 miles from ATCO’s Camp North End, a 1 million-square-foot mixed-use development.

JLL Senior Managing Directors Ryan Clutter and Richard Reid, along with Senior Directors Chris Lingerfelt, Tom Kolarczyk, Hunter Barron and Zack Drozda, led the Capital Markets team assisting the seller, while Senior Managing Director Travis Anderson led financing efforts. In March, a JLL team that included Clutter, Lingerfelt and Drozda represented the seller in the $80 million disposition of two mixed-use assets in Raleigh, N.C.

The post Northwood Investors Closes $90M Charlotte Mixed-Use Buy appeared first on Commercial Property Executive.

Novant Health Claudia W. and John M. Belk Heart & Vascular Institute and Agnes B. and Edward I. Weisiger Cancer Institute. Image courtesy of Novant Health.

Novant Health has completed Novant Health Claudia W. and John M. Belk Heart & Vascular Institute and the Agnes B. and Edward I. Weisiger Cancer Institute, a 260,000-square-foot cardiovascular and cancer outpatient clinic in Charlotte, N.C. The facility provides outpatient cardiac and cancer treatments, treatment services and support programs, all in one location. McCulloch England Associates served as architect and Vannoy Construction was the general contractor for the $165.9 million project.

Located at 125 Queens Road, the seven-story property features an eight-story parking deck for patients and visitors. The building is linked to the Novant Health Presbyterian Medical Center through an enclosed over-street walkway connector. Amenities include the Mecklenburg Radiology Resource Center as well as a boutique, café with indoor and outdoor seating, interfaith chapel and specialty pharmacy.

The facility is less than 2 miles from downtown Charlotte, in a high-density area of health-care providers, which also includes Atrium Health and OrthoCarolina. The property is also less than 2 miles from Atrium Health’s Carolinas Medical Center campus, where a 150,000-square-foot medical facility broke ground at the end of September.

Cardiovascular and cancer care

The Belk Heart & Vascular Institute provides innovative care for patients with heart and vascular diseases. Specialty clinics include noninvasive cardiac testing, electrophysiology, cardiac rehabilitation, cardio-oncology, heart failure, interventional cardiology, preventive cardiology, structural heart intervention, minimally invasive cardiac surgery, valve replacement, noninvasive vascular lab and peripheral arterial disease. The institute also features the Bank of America Wellness Center, providing support through various programs such as exercise therapy, disease management and nutrition counseling.

The Weisiger Cancer Institute features 12 specialty clinics, including gastrointestinal and hepatobiliary, genitourinary, head and neck, gynecologic, breast, hematology and thoracic oncology. Additionally, the institute offers radiation oncology, breast cancer care, cellular therapy and developmental therapeutics. The space includes a dedicated area for cancer research and phase I, II and III clinical trials, 80 chemotherapy infusion suites and the Sherry Strong Integrative Medicine holistic center.

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Charlotte. Image by David Mark via Pixabay.com

September was a relatively calmer month for North Carolina, with the number of new COVID-19 cases and hospitalizations decreasing compared to August, albeit an uptick was registered starting with the end of the month. Nonetheless, the state entered Phase 3 of reopening on Oct. 2, which slightly loosened some restrictions. Meanwhile, Charlotte commercial real estate activity hummed along. Developers were active across a variety of asset classes, with a special focus on the industrial sector. Here’s our September list of Charlotte must-knows:

1. DEVELOPMENT – 2.8 million square feet of industrial space coming to Rock Hill.

Two large industrial projects are underway some 30 miles southwest of Charlotte, according to Charlotte Business Journal. Rock Hill Economic Development Corp. partnered with the Barron family and Childress Klein for the construction of the 1.8 million-square-foot Aspen Business Park. The 10-building property will be developed on 216.5 acres near Celanese and Aspendale roads. The second project, adjacent to Celriver Road, is Rock Hill Commerce Center. Strategic Capital Partners is building the 1 million-square-foot, four-building industrial park slated for delivery in the fourth quarter of 2021.

2. OPERATIONS – Foundry Commercial to manage Plaza Midwood redevelopment.

The company will oversee more than 104,000 square feet of retail and some 150,000 square feet of office space within the mixed-use project of Crosland Southeast and Nuveen Real Estate. The joint venture purchased the 12-acre site at Pecan and Central avenues for roughly $50 million this spring. The pedestrian-friendly project is set to include residences, retail, restaurants and creative office space. The phased redevelopment is expected to take up to five years.

3. DEVELOPMENT – Atrium Health breaks ground on rehab hospital.

Upon completion, the 150,000-square-foot new facility will replace the current 150-bed Atrium Health Carolinas Rehabilitation, a first step in the modernization and expansion of the 3.3 million-square-foot Carolinas Medical Center campus. Taking shape on Morehead Street, on the former site of the Carolinas College of Health Sciences, the hospital will include 70 private patient rooms, a 9,300-square-foot outpatient clinic and an outdoor therapy challenge garden. Opening is slated for 2022.

4. HOSPITALITY – Hampton Inn & Suites opens near Northcross Shopping Center.

Located at 7911 W W.T. Harris Blvd., the 130-key Hampton Inn & Suites Charlotte Northlake is 10 miles north of the city center, just off Interstate 495. Amenities include a business center, fitness center and event space. Northlake is the fourth same-branded asset opened by Daly Seven Inc. in Charlotte, following the two Hampton Inn & Suites near the airport and the one on Arrowood Road.

5. LEASING – Cushman & Wakefield adds tenant to Montclaire South office park.

Working on behalf of the landlord, Viking Partners, the brokerage firm negotiated a 13,438-square-foot lease with DMG MORI at Forest Park I. The company will occupy the entire Building 800 of the 65,670-square-foot, two-building property completed in 1986. The single-story office campus occupies 6.5 acres at 700 Forest Point Circle, near Interstate 77. JLL represented the tenant.

The post Charlotte Commercial Real Estate Wrap-Up – September 2020 appeared first on Commercial Property Executive.

Atrium Health Carolinas Rehabilitation groundbreaking. Image courtesy of Atrium Health

Atrium Health has broken ground on a replacement hospital for the 150-bed Atrium Health Carolinas Rehabilitation in Charlotte, N.C. The 150,000-square-foot new facility represents the first step in the modernization and expansion of the 3.3 million-square-foot Carolinas Medical Center campus, development taking shape despite the coronavirus pandemic and its effects on the health-care real estate. Construction will take roughly a year to complete, with the opening slated for 2022.

The new hospital will come online on Morehead Street, on the former site of the Carolinas College of Health Sciences, according to Charlotte Business Journal, as the college relocated to Water Ridge Office Park in January. The current rehabilitation facility at 1100 Blythe Blvd. provides inpatient and outpatient treatment for patients with brain or spinal cord injury, stroke, cancer and other debilitating diseases.

Upon completion, the new Atrium Health Carolinas Rehabilitation will include 70 private patient rooms, a 9,300-square-foot outpatient clinic, an outdoor therapy challenge garden, an aquatic therapy program and a center for independent living.

Atrium Health’s Carolinas Medical Center campus is some 2 miles south of downtown Charlotte in the Dilworth neighborhood. Charlotte Douglas International Airport is less than 8 miles northwest.

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Charlotte skyline. Image by 1778011/Pixabay.com

Even while COVID-19 cases climbed at the end of August, state authorities in North Carolina made moves to gradually allow for the reopening of some businesses. Governor Roy Cooper introduced a plan to allow for a limited reopening of gyms, bowling alleys, museums and aquariums prior to Labor Day weekend. 

Charlotte faced particular challenges in August. The city hosted the Republican National Convention, which raised questions about how to organize political gatherings in a time of social distancing. The metro’s commercial real estate saw an appreciation in activity over the past month, with developments moving forward and sales closing across a variety of sectors. Here’s our August list of Charlotte must-reads:

1. DEAL – JLL completes sale of four-building Mooresville industrial portfolio.

The brokerage represented the seller, Corporate Center Properties. RealOp Investments acquired Oates Crossing, which totals 235,400 square feet, for $31.7 million. Developed by the seller in 2005 and expanded in 2018, the buildings are home to 13 tenants. Located at 105 and 115 Corporate Center Drive and 120 and 128 Talbert Road, the Class A portfolio is just off Interstate 77.

2. DEVELOPMENT – The Kessler Collection opens 254-key downtown hotel. 

Grand Bohemian Hotel Charlotte includes 32 suites and features amenities such as a spa, executive lounge, open-kitchen restaurant and rooftop bar. The hospitality asset has more than 16,000 square feet of versatile event space and 4,400 square feet of outdoor space. Located at 201 W. Trade St., the new property is within walking distance of Bechtler Museum of Modern Art.

3. DEVELOPMENT – CrossRidge Development breaks ground on Class A office building.

CrossRidge One is a 120,000-square-foot project within CrossRidge Center, a 190-acre campus in Indian Land, S.C. Edifice is the general contractor, and Perkins Eastman is providing architectural services. JLL will handle leasing at the property, scheduled to deliver in 2021. The larger development is anchored by a new, 78,000-square-foot YMCA multiplex, slated for completion in September. The campus’ site also includes an existing office building and a 32,000-square-foot event center.

4. DEAL – Flagship Healthcare Properties acquires two suburban MOBs.

The first property, the 55,912-square-foot Tate Medical Commons IV at 1501 Tate Blvd. SE in Hickory, traded for $14.6 million. The buyer financed the deal with an $8.5 million loan from First Horizon Bank, according to public records. Huntersville Medical Plaza, a 26,166-square-foot Class A property built in 2009, sold for $6.3 million. Atlantic Union Bank provided $5.6 million in acquisition financing. CBRE brokered the deal for the building, located at 17220 Northcross Drive in Huntersville.

5. LEASING – Conterra Networks inks office park lease. 

Cushman & Wakefield arranged the 21,000-square-foot full-building lease at thExchange on behalf of the tenant. CBRE assisted The Dilweg Cos., the owner of the 14-building, 600,000-square-foot park. The property is located alongside Interstate 77 at Tyvola Road. Conterra plans to move into its new space at 5301 77 Center Drive in early 2021.

6. DEVELOPMENT – Crescent Communities breaks ground on mixed-use property.

Elizabeth on Seventh is a 103,500-square-foot project in partnership with Faison Enterprises. Truist is providing construction financing. The property will include speculative office, marketed by JLL, and ground-floor retail space. Located at the intersection of East Seventh Street and North Caswell Road, the site is 2 miles from downtown Charlotte.

The post Charlotte Commercial Real Estate Wrap-Up – August 2020 appeared first on Commercial Property Executive.

Tommy Mann, Development Director, ATCO Properties & Management. Image courtesy of ATCO Properties & Management

ATCO Properties & Management recently completed The Gama Goat Building, a Class A, 140,000-square-foot creative office property, part of the Camp North End, a 1 million-square-foot adaptive reuse mixed-use development in Charlotte, N.C. Ranking as one the largest adaptive reuse projects in the U.S., the Camp North End is set to transform a 75-acre space into a mix of residential, retail, restaurant and office space campus, while preserving the character of former industrial factories.

ATCO’s partnership with Shorenstein Properties LLC and design architect S9 Architecture focuses on occupant’s health and wellness. As a result of their strategy on tenant’s well-being, Camp North End was one of the first four properties in North America to receive a Fitwel Community Design certification for implementing health benefits as part of their design. In addition to the Fitwel certification, The Gama Goat building also boasts a Wired Gold Certification. ATCO’s Development Director Tommy Mann talks about how the project is meant to pave the way for an experience that blends the old and the new.

READ ALSO: The Projects That Will Reshape Charlotte

What is the vision behind the 75-acre megaproject? 

Mann: When we began this process just three years ago, we saw one of the largest pieces of property just a mile outside of Uptown that had not been redeveloped. Not only that, but it was full of great old buildings with tons of historic character. Charlotte has a history of tearing down older buildings to build new developments in and around center city, so finding a 75-acre site with real character is very uncommon here. Our vision is to create a mixed-use environment that will be a hub for creative businesses, retail and the best food and beverage, all among amazing public spaces just a mile outside of Uptown while taking advantage of this extraordinary historic fabric and character.

Camp North End. Image courtesy of ATCO Properties & Management

Tell us about the greatest challenges you encountered while redesigning this historic industrial land into a mixed-use development.

Mann: As with most historic buildings, adaptive reuse comes with considerable unknowns, many of which are only found during the course of construction. There are often unanticipated costs and considerable risk in adaptive reuse projects, but we firmly believe that preserving these really great old structures is the right thing to do and leads to a much better place for the people that will live, work, eat, shop and spend time here.

Another challenge is the size of these buildings. They were built by the U.S. Army during World War II and each is a quarter-mile long. As we reimagined this site as a pedestrian-oriented, walkable place, we had to solve for these quarter-mile long barriers across the site. Our design architect, S9 Architecture based out of New York, came up with a fantastic plan to cut passageways through these buildings and create shared streets and really break down the scale of the site into something that’s more walkable, more pedestrian-friendly and much more human form. In addition, our joint venture partner, Shorenstein Properties LLC, works as a strategic capital partner in collaboration with us on the redevelopment and leasing of these buildings as creative office and retail space. 

The Gama Goat Building was completed a few weeks ago, but more than 1 million square feet is still planned. What’s next for the remaining space?

Mann: With the Gama Goat Building now completed, we’re actively working on designing phase II of the project and getting it ready for construction, which consists of 120,000 square feet of office space and approximately 15,000 to 20,000 square feet of retail on our main retail thoroughfare, Keswick Avenue. We’re also in the early planning stages for several other buildings on-site, which includes the renovation of the historic Ford Factory, which dates back to 1924 and was once a manufacturing plant for Model T and Model A cars.

Gama Goat Building. Image courtesy of Leandra Creative Co.

How has the ongoing pandemic impacted your plans so far?

Mann: Even pre-pandemic, we were positioning Camp North End as a place that focuses on occupant health and wellness. Studies have shown that employees who are healthier and happier are more productive in their jobs and that directly benefits a company’s bottom line. This has been our strategy since day one and we’ve used it as a framework in our planning to make design choices that prioritize tenant health.

For example, we have great outdoor places where people can get up from their desk and stretch their legs, clear their mind, meditate or have a walking meeting. One of our key features is our quarter-mile covered loop around the Gama Goat Building, which is perfect for a 15-minute walking meeting. We also feature public art throughout the site because we know that art stimulates the mind and leads to happier employees. There are currently more than 50 murals across Camp North End and we expect to add more murals and sculptures to come.

Are there any health-related elements that buildings across Camp North End will feature, considering the need to address current health concerns?

Mann: As a result of all the thoughtful planning that went into the design and development of our spaces, Camp North End is very well-suited for companies looking for office space in a post-COVID-19 world. For instance, all of our buildings are single story and each of our office spaces have multiple entrances directly to the outdoors. There are no common lobbies, no elevators and no shared restrooms. Each of our office spaces has its own self-contained HVAC system and our HVAC design lets in 20to 30 percent more outside air than a typical office tower.

Companies that are re-evaluating their office strategy and might be worried about going back into an office tower, or going back into a coworking space where it’s not only their own employees that they’re thinking about, but everybody else’s employees that they have no control over. We’ve seen a real uptick in tours at our site over the last few months and it’s because of how our office spaces are positioned relative to what else is available in the market.

Camp North End has been awarded a two-star Fitwel Community Design Certification. Tell us about this certification.

Mann: Fitwel Community is a new building standard developed by The Center for Active Design that recognizes projects that have optimized health benefits as part of their design. Camp North End was one of the first four properties in all of North America to receive this certification, which was a tremendous honor. It affirms our commitment to supporting health and ensuring equitable access to vibrant public and private spaces that support the quality of life.

Camp North End. Image courtesy of ATCO Properties & Management

What effects do you think this large-scale project will have on the whole district?

Mann: We believe Camp North End is the heart of the North End Smart District. One of the first things that we did when we got here in 2017 was to take down chain-link fences and open up the property to our neighbors and to the city. Our first phase of the construction involved creating some really great indoor and outdoor public spaces gathering spaces, which have become the primary gathering spaces for all eight neighborhoods that surround the site.

As a result of the work that we’ve done at Camp North End over the past couple of years, we’ve seen an increase in commercial development around the area—from breweries, restaurants, offices, to multifamily housing and investments in publicly-owned community centers. All of these elements are starting to pop up around Camp North End as a result of the place that we’ve created and they all reference proximity to Camp North End and as one of the sorts of key features of their individual projects.

How do you expect this large-scale project to benefit the city and boost the region’s growth in the coming years?

Mann: We are delivering over a million square feet of office space in phases just a mile outside of Uptown, which is a great opportunity for the city to continue to attract more employers and create jobs for people of Charlotte. Our project is unlike anything else in the metro, which broadens the appeal of Charlotte companies that are doing national searches and looking for the type of cool, creative adaptive reuse projects that they might find in other markets like Austin, the San Francisco Bay Area, Brooklyn, Denver or Atlanta. Nowhere else in Charlotte has this type of creative adaptive reuse project available at the scale that Camp North End has to offer.

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Centene, East Coast headquarters in Charlotte, N.C.Image courtesy of Centene Corp.

Even as the city experienced a significant uptick in new coronavirus cases in July, Charlotte’s commercial real estate sectors saw a sizable share of activity during the past month. Developments moved forward, even as many commercial tenants had to operate at reduced capacity. Investment activity was muted, though one sizable industrial deal highlighted continuing interest in well-positioned, stable distribution centers, even in uncertain times. Although health officials reported fewer new COVID-19 cases toward the end of the month, the longer-term effects of the pandemic on Charlotte’s economy may not be felt for some time. Catch up on our July selection of Charlotte must-knows:

1. DEVELOPMENT – Centene to invest $1 billion in new offices.

After conducting a comprehensive evaluation process, the company settled on Charlotte as the location for its new regional headquarters. The campus—expected to create 6,000 new jobs—will encompass several office buildings, a data center and Centene Tech University. The development will be built in four phases, the first of which is slated for completion in the second half of 2022. The site is located along Governor Hunt Road in University Research Park.

2. DEAL – KKR pays $84 million for Kannapolis Amazon facility.

The company paid $260 million for two Amazon-leased properties encompassing 2.5 million square feet in the Charlotte and Chicago markets. Morgan Stanley sold the 1.1 million-square-foot fulfillment center near Charlotte, public records show. Capital One originated a $42.7 million acquisition loan for the deal. Delivered in 2018, the building is located on 90 acres at 6500 Davidson Highway.

3. PEOPLE – CBRE strengthens tenant representation team.

The firm’s Charlotte office hired John Christenbury to serve as senior vice president in its occupier services group. He is a multi-million dollar producer and has represented several Fortune 500 companies. Christenbury’s client list includes Verizon, Lend Lease, Citizens Bank and UBS, among others. Before coming to CBRE, he worked as a director at Cushman & Wakefield for six years. Christenbury holds a bachelor’s degree in criminal justice from the University of North Carolina at Charlotte.

4. LEASING – Commercial Credit Group moves headquarters to 19-story tower.

The company relocated its operations to New York Life Real Estate Investors’ 405,000-square-foot office building at 525 N. Tryon St. The firm is moving from 227 W. Trade St., a 476,000-square-foot property owned by KBS Realty Advisors. During its 10 year tenure at its previous location, the firm grew from 17 to 80 employees and sought additional space. The financier will join existing tenants Bank of America, Regus and Frontier Capital at the 1998-built tower in downtown Charlotte.

The post Charlotte Commercial Real Estate Wrap-Up – July 2020 appeared first on Commercial Property Executive.

Centene’s East Coast headquarters in Charlotte, N.C. Image courtesy of Centene Corp.

Centene Corp. has selected Charlotte, N.C., for the location of its new 1 million-square-foot East Coast headquarters. The St. Louis-based health-care administration company, which conducted a comprehensive evaluation process in its search for a regional home, will invest $1 billion in the development of a campus that will generate 6,000 new jobs.

Centene will build its East Coast headquarters on a site along Governor Hunt Road in University Research Park. The campus will take shape in four phases and will ultimately consist of several buildings encompassing office space, a data center and Centene Tech University, the company’s corporate learning and development center.

READ ALSO: What Will Construction Look Like When COVID-19 Ends?

Centene’s new location will also offer a host of amenities, including meeting space, a childcare and early education center, dining venues and a fitness center. Additionally, the state-of-the-art property will feature technology enabling remote collaboration in today’s emerging work-from-home climate and connection to the corporate network throughout the campus via Wi-Fi.

Construction of Centene’s Charlotte project is on schedule to commence in August, with the delivery of the first phase planned for the second half of 2022. Centene expects to commence the second phase of the project in 2024.

National Growth Spurt

News of Centene’s decision to establish its East Coast headquarters in Charlotte comes while the company is in the midst of developing a new 68-acre West Coast headquarters in the Natomas area of Sacramento, Calif.

Centene has been doing its share of signing tenant agreements, as well. As noted in its annual report, the company generally leases space in the states where its health plans, specialty companies and claims processing facilities operate.

Just weeks ago, in May, Centene pre-leased Renaissance Center 7, a 118,800-square-foot project in Tampa, in its entirety. And in the fourth quarter of 2019, the multi-tenant Centene Centre delivered fully leased in St. Louis, with Centene as the anchor tenant occupying 70 percent of the 640,000-square-foot tower’s space.

The post Centene Plans $1B Regional HQ in Charlotte appeared first on Commercial Property Executive.

Charlotte. Image via Pixabay.com

Through June, the state of North Carolina was hit with a large spike of new coronavirus cases, leading Governor Cooper to prolong the second phase of its reopening plan by four weeks, adding an additional face mask requirement in public spaces. However, even with many restrictions in place, investors and developers remained active in Charlotte’s commercial real estate sectors. Read our June selection of Charlotte must-knows:

1. DEAL – CIP Real Estate acquires $75.5 million industrial portfolio.

Albany Road Real Estate Partners finalized its disposition of the 13 properties totaling 560,500 square feet in Charlotte, Concord, Mooresville and Rock Hill. At the time of the sale, the assets were 91 percent occupied. Albany acquired the buildings for $60.8 million in 2017. CBRE assisted the seller, and two of its brokers—Anne Johnson and Bryan Crutcher—will remain on to lease the properties.

2. FINANCING – MB Real Estate lands $207.5 million loan for office portfolio.

Capital One originated a four-year note for 14 properties in eight markets, according to Yardi Matrix data. Included in the portfolio is One SouthPark Center, a 144,185-square-foot office property in Charlotte. Located on a 4-acre parcel at 6060 Piedmont Row Drive, the 10-story building was completed in 1973. MB had acquired the property for $38.3 million from Continental Capital Partners in August 2019.

3. DEVELOPMENT – Gaston County breaks ground on 330-acre industrial campus.

County officials began site work at Apple Creek Corporate Center, a public-private industrial project, according to Charlotte Business Journal. Over the past six years the county acquired 15 parcels for a total of $29 million. Two unidentified companies will invest in properties at Apple Creek: A European firm will spend $30 million on a manufacturing facility dubbed “Project Raven” and a second company will invest $3 million in a 30,000-square-foot distribution center named “Project DUO”.

4. DEAL – Two grocery-anchored assets sell in $90 million portfolio deal.

Armada Hoffler Properties completed the sale of a seven-asset retail portfolio encompassing 623,766 square feet in North Carolina, Virginia and Maryland to Slate Retail REIT. Two of the properties are in Charlotte: the 57,710-square-foot Alexander Pointe and the 80,467-square-foot Renaissance Square. Located at 850 Jake Alexander Blvd. W. and 11124 Renaissance Drive, both assets are anchored by Harris Teeter. At the time of closing, the full portfolio was 92 percent leased.  

5. LEASING – JLL leases two floors in 18-story office tower.

The brokerage company signed a 41,000-square-foot lease in Lincoln Harris’ Legacy Union, a 370,240-square-foot office project. Located at 650 S. Tryon St., the building broke ground in late 2018 and is slated for delivery by year-end. At the start of 2021, JLL will consolidate its operations on the fifth and sixth floors, bringing 150 employees under the same roof.

6. DEVELOPMENT – ATCO Properties JV delivers creative office project.

The company partnered with Shorenstein Properties and finalized the development of The Gama Goat Building, a Class A, 140,000-square-foot office asset. Located at 1701 N. Graham St., the property is in Camp North End, a 1 million-square-foot adaptive reuse project. Cushman & Wakefield’s Jessica Brown, David Dorsch, Kris Westmoreland and Grant Keyes are the exclusive leasing agents.

The post Charlotte Commercial Real Estate Wrap-Up – June 2020 appeared first on Commercial Property Executive.

Image via Pixabay.com

KKR, the New York City-based global investment firm, has acquired two Amazon distribution properties in the Chicago and Charlotte, N.C., metro areas with a total of 2.5 million square feet for $260 million. They are the first industrial assets acquired through KKR’s core-plus real estate strategy focusing on longer-hold commercial real estate properties.

READ ALSO: COVID-19’s Impact on E-Commerce

While KKR declined to publicly identify the tenants, specific locations of the properties or provide details on the sellers, local media reports indicated both transactions involved Amazon fulfillment and distribution centers. In the largest of the two deals, KKR paid $176 million to Prologis for two buildings in Kenosha, Wis., part of the Chicago industrial market. The deal involved a 1.1 million-square-foot fulfillment center at 3501 120^th Ave. and a neighboring 500,000-square-foot distribution center at 11211 Burlington Road, according to BizTimes.com, a Milwaukee, Wis.,-based business news site. Crain’s Chicago Business reported it was the most ever paid for an industrial property in the Chicago area.

In the second transaction, KKR paid $84 million for a 1.1 million-square-foot fulfillment center known as Amazon CLT3 in Kannapolis, N.C., with a mailing address of 6500 Davidson Highway in Concord, N.C., according to the Charlotte Business Journal. The seller was not identified.

Roger Morales, KKR partner & head of commercial real estate acquisitions in the Americas, said in a prepared statement the firm was excited to increase its footprint in two major distribution markets and called the properties high-quality stable assets. He stated the accelerated penetration of e-commerce in the current environment was driving demand for large, modern distribution centers. Morales said logistics real estate represents a growth opportunity as more U.S. consumers move to online shopping.

KKR owns more than 12 million square feet of industrial property in strategic locations near major metropolitan areas across the U.S. Since launching a dedicated real estate platform in 2011, KKR Real Estate has grown to about $11.8 billion in assets under management in the U.S., Europe and Asia as of March 31. The global team focuses on both equity and credit parts of the real estate business.

KKR Investments

Last month, Toolots Inc., signed a 436,350-square-foot lease at Indian Commerce Center, an industrial property in California’s Inland Empire owned by KKR since 2019. The manufacturing equipment distributor agreed to lease the entire facility at 17783 Indian St. in Moreno Valley, Calif.

In late May, KKR increased its presence in the European industrial market with the acquisition of an interest in Etche France, a Paris-based private real estate company which controls a 120-property portfolio of logistics, light industrial and office assets in France valued at $438 million.

Also in May, KKR partnered with data center entrepreneur Franek Sodzawiczny to create Global Technical Realty, a build-to-suit and roll-up acquisition data center platform in Europe. KKR made a $1 billion equity commitment primarily from a global infrastructure fund and could boost its investment over time. GTR will have an estimated $2.5 billion to develop and operate data centers for technology clients across Europe.

The post KKR’s $260M Portfolio Expansion appeared first on Commercial Property Executive.

The Shops at Christenbury. Image courtesy of The Shopping Center Group

Thompson Thrift Development has sold The Shops at Christenbury, a 11,350-square-foot retail center in Concord, N.C. A private entity affiliated with Deville Developments purchased the asset for $7.1 million.

Marcus & Millichap represented the buyer, while The Shopping Center Group assisted the seller in the disposition.

Situated on roughly 2 acres at 8825 Christenbury Parkway, the retail asset is part of Christenbury Corners, a Kohl’s-anchored, 129,319-square-foot shopping center developed by Thompson Thrift in 2017. According to TSCG, The Shops at Christenbury was fully leased at the time of sale, with Aspen Dental, First Watch, Atrium Health and Brownlee Jewelers on the tenant roster.

Completed in 2019, the property is some 11 miles west of downtown Concord at one of the primary entrances to Highland Creek, Mecklenburg County’s largest residential neighborhood. The strip center is less than a mile from Simon Property Group’s Concord Mills Mall and 2 miles from Great Wolf Lodge Water Park.

TSCG Partner & Director of Investment Sales Anthony Blanco led the investment sales team representing Thompson Thrift. Marcus & Millichap’s IPA Senior Managing Director Erin Patton assisted the buyer. Patton was also part of a team arranging the $46 million recent sale of a 458,935-square-foot shopping center in Cuyahoga Falls, Ohio.

The post Thompson Thrift Sells Charlotte-Area Retail Center appeared first on Commercial Property Executive.

The Gama Goat Building. Image courtesy of Leandra Creative Co.

The Gama Goat Building, a Class A, 140,000-square-foot creative office property located within Camp North End, the 1 million-square-foot adaptive reuse mixed-use development in Charlotte, N.C.,’s North End Smart District, has been completed and leasing is underway.

READ ALSO: Office Occupancy Varies Widely as Workers Trickle Back

Developed by ATCO Properties & Management and its partner, Shorenstein Properties LLC, the Gama Goat Building has office spaces available, ranging from 40,000 to 60,000 square feet. A Cushman & Wakefield team led by Jessica Brown, David Dorsch, Kris Westmoreland and Grant Keyes are the exclusive office leasing brokers. 

Enviable design, location

The building at 1701 N. Graham St. features soaring ceilings, clerestory windows—large windows that bring in more natural light, steel beams, wooden trusses and exposed brick. The building already has one tenant, bloc, a boutique fitness studio. The property features passageways that cut through the building to connect with cross streets in the neighborhood, creating new east-west connectivity within the site and the North End corridor. The team includes design architect S9 Architecture, local production architect BB+M Architecture and civil engineering/landscape architect LandDesign.

Matt Knisely managing director overseeing Shorenstein’s Investment Group East, said in prepared remarks the building is expected to be a highly-sought-after destination for office space in Charlotte. He noted the project aligns with Shorenstein’s strategy to invest in markets like Charlotte that attract high-quality employers and employees. The firm also has two other office projects in development in Charlotte—East West Station, a 23-story, 393,000-square-foot property, and 6800 Solectron, a 430,000-square-foot redevelopment. Shorenstein signed on as ATCO’s partner on the Camp North End development in May 2018.

Adative reuse megadevelopment

The Gama Goat Building is one of several buildings ATCO and Shorenstein are adaptively reusing at Camp North End. Currently one of the largest adaptive reuse projects in the U.S., the project is transforming a historic, 75-acre site where Model T cars, Hercules missiles and U.S. Army Gama Goat vehicles were assembled. More than 300,000 square feet of space has already been redeveloped for work, dining and hospitality, entertainment and artistic expression. Another 1.5 million square feet is planned. The site also features retail and restaurant uses and approximately 3,000 square feet of retail space is still available for lease at the property and one food stall space. Three of the four food stalls on Keswick Avenue—Raydal Hospitality’s La Caseta, farm-to-table concept Bleu Barn Bistro and a noodle shop, Saru by Bow Ramen—opened this week during a grand opening event attended by ATCO, Shorenstein and city officials.

In January, the Gama Goat building was awarded a two-star Fitwel Community Design Certification. The national building standard, offered through the Center for Active Design, focuses on optimizing holistic health benefits in large-scale projects. It previously received a Wired Gold Certification.

The post ATCO Properties JV Completes Charlotte Project appeared first on Commercial Property Executive.

READ ALSO: Charlotte Commercial Real Estate Wrap-Up – May 2020

The portfolio includes the three-building 77 Overlook campus in Charlotte, N.C., the five-building International Corporate Center in Concord, N.C., the three-building Lakefield Corporate Center in Mooresville, N.C., and the two-building SouthCross Corporate Center in Rock Hill, S.C. Totaling 560,500 square feet, the portfolio is 91 percent occupied. Tenants include Wesco Distribution, TTEC Healthcare Solutions and Winbro Group Technologies, CBRE told Commercial Property Executive. Albany Road purchased the 13 buildings for a total of $60.8 million in March 2017.

CBRE also told CPE that the new owners don’t have any major changes planned. CIP has been acquiring industrial properties throughout the U.S. and currently has five other business parks in its North Carolina portfolio, located in Greensboro, Charlotte and Cornelius . The company also owns a group of three industrial/office business parks in California’s Inland Empire submarket, which recently landed a $58.6 million refinancing.

CBRE’s Patrick Gildea, Matt Smith, Anne Johnson, Bryan Crutcher and Grayson Hawkins represented Albany Road and facilitated the sale, while Johnson and Crutcher will also continue to lease the industrial portfolio on behalf of CIP.

Industrial resilience in Charlotte

Gildea, an executive vice president at CBRE, said in prepared remarks that many commercial real estate transactions have been postponed due to the COVID-19 pandemic but the industrial sector remains resilient. Gildea added in his prepared statement that industrial properties were still being transacted, especially in strong markets like Charlotte and that sector’s pricing is the same as pre-COVID-19 levels, whereas other sectors have seen dips in pricing.

According to CBRE’s first quarter industrial market report, the Charlotte metro area saw $56.7 million in property transaction volume. While 12 percent lower than the previous quarter, the metro area has totaled $1.9 billion of industrial properties sold in the last five years. Charlotte’s industrial market also saw a slight uptick of 0.4 percent in asking rates to $6.95 per square foot, representing the 36th consecutive quarter of overall rent growth in the market.

The post Charlotte-Area Industrial Portfolio Trades for $76M appeared first on Commercial Property Executive.

John Evans, Chief Project Officer, Six Rock Properties. Image courtesy of Six Rock Properties

Six Rock Properties has welcomed John Evans as the new chief project officer. In his new role, Evans will oversee the company’s value-add projects and will also help Six Rock expand outside of its home state of North Carolina. Evans will work closely with Christopher Ebert, Six Rock’s founder & CEO.

Evans brings 17 years of experience in the building trades industry, having previously worked for companies such as BP, Shell, DOW Chemical and GE. He has also owned, operated and upgraded manufactured housing communities, having bought his first mobile home park in 2015.

Six Rock Properties owns and operates seven manufactured housing communities in North Carolina, the most recent addition being the 34-site Fairview Park in Gaston County, N.C. The company plans to further expand its portfolio in the Southeast.

The post Six Rock Properties Hires New CPO appeared first on Commercial Property Executive.

4200 Corning Place. Image courtesy of Cushman & Wakefield

As North Carolina began to reopen and lift certain restrictions, real estate activity in Charlotte followed suit. Several major deals closed, particularly in the resilient industrial sector, and some new developments look to be taking shape. However, the metro could still have a challenging road ahead, with the state reporting a significant spike in new COVID-19 cases just before Memorial Day weekend. Check out our May selection of Charlotte-must reads: 

1. DEAL – JLL facilitates sale-leaseback deal for Wilbert Plastic Services.

AIC Ventures paid $7.5 million for the 126,400-square-foot facility, according to public records. The seller will continue to occupy the facility under a long-term absolute net lease. Located on 9 acres at 7301 Caldwell Road in Harrisburg, the single-story building was completed in 1990. The warehouse is 2 miles from Interstate 485 and 25 miles east of Wilbert’s headquarters in Belmont.

2. LEASING – Cushman & Wakefield arranges industrial leases totaling 90,180 square feet.

The firm represented Dogwood Industrial Properties in the two agreements, bringing the 167,657-square-foot warehouse to full occupancy. Polygal will occupy 23,750 square feet and a Fortune 500 company will lease 66,430 square feet in the building. Completed in 1972, the facility sits on 7 acres at 5130 Hovis Road. The brokerage team included Eric Ridlehoover, Matt Treble and Patrick McGrath. 

3. DEAL – Beacon Capital closes $58.5 million Corning Optical HQ sale.

Crown Realty & Development purchased the 182,200-square-foot property in an all-cash transaction. Located at 4200 Corning Place, the build-to-suit development delivered in the third quarter of 2019 with an estimated price tag of $38 million. Corning Optical occupies the asset under a lease expiring in 2034. Cushman & Wakefield assisted the seller in the deal.

4. SUSTAINABILITY – Duke Energy, Charlotte authorities to develop solar farm.

The public-private partnership will join forces with Carolina Solar Energy and Ecoplexus to deliver a 35-megawatt solar farm in 2022, according to The Charlotte Weekly. Under a 20-year power purchase agreement, Duke will provide zero-carbon energy for the metro. The solar farm’s site is along Tomlin Mill Road outside of Statesville. 

5. DEAL – Cousins Properties buys downtown parking garage for $85 million.

Arden Group sold the 11-story parking deck adjacent to the BB&T Center, according to Charlotte Business Journal. The seller still owns the 570,601-square-foot office tower, which it acquired for $148.5 million in 2017. Located at 200 S. College St., the parking structure could potentially support future development of roughly 80,000 square feet of office, residential or hotel space.

The post Charlotte Commercial Real Estate Wrap-Up – May 2020 appeared first on Commercial Property Executive.

Fairview Park. Image via Google Street View

Less than one year after buying Oak Grove Park in Dallas, N.C., Six Rock Properties completed a second purchase in Gaston County, N.C. Fairview Park is a mobile home community centrally situated in the city of Gastonia, offering residents access to the upcoming Franklin Urban Sports & Entertainment (FUSE) District. The acquisition is also the third deal that Six Rock completed within a year.

The 34-site property is located at 1963 Cloverdale Circle, in Gastonia, near Interstate 85 and approximately 25 miles from downtown Charlotte. CaroMont Regional Medical Center and The Schiele Museum of Natural History and Planetarium are also located nearby. With Gastonia being the second-largest satellite city of the Charlotte area, after Concord, the need for more affordable housing options is high, especially near the growing downtown and upcoming sports and entertainment district.

FUSE is projected to feature a variety of restaurants, retail shops, green spaces and apartment buildings. The development will also feature a stadium component that can accommodate an array of sports ranging from baseball and football to lacrosse and ice skating, as well as concerts and fairs.

Six Rock owns and manages six other manufactured housing communities in North Carolina, the most recent addition being Deer Run Estates in Greenville.

The post Six Rock Properties Expands Charlotte-Area Mobile Home Portfolio appeared first on Commercial Property Executive.

7301 Caldwell Road. Image courtesy of JLL

JLL Capital Markets has completed the disposition of a fully leased 126,400-square-foot, single-tenant manufacturing facility in Harrisburg, N.C. AIC Ventures has purchased the property and executed a long-term, absolute net lease with the seller, Wilbert Plastic Services.

The manufacturing facility is located at 7301 Caldwell Road, within the Charlotte area, and it will serve as a mission-critical location for the thermoforming and injection molding company. Situated on 15.6 acres, the building is within 5 miles of Interstate 85 and 2 miles from Interstate 485. Additionally, the property is near the headquarters of Wilbert Plastic Services and a thermoforming facility in Belmont, N.C. 

The JLL Capital Markets team that represented the seller included Managing Director Pete Pittroff, Senior Director Patrick Nally, Associate Val Derrick and Analyst Dave Andrews. 

Earlier this month, JLL closed the sale of five Chicago-area industrial properties totaling approximately 539,100 square feet. 

The post AIC Ventures Purchases Charlotte-Area Industrial Building appeared first on Commercial Property Executive.

4200 Corning Place. Image courtesy of Cushman & Wakefield

Beacon Capital Partners has sold the newly developed office property at 4200 Corning Place in Charlotte, N.C., in a $58.5 million, all-cash transaction. With the assistance of Cushman & Wakefield, Beacon secured an affiliate of Crown Realty & Development as a buyer for the approximately 182,200-square-foot building, which serves as the headquarters of Corning Optical Communications.

With Balfour Beatty aboard as general contractor, Beacon wrapped up development of 4200 Corning as a build-to-suit for Corning Optical at a cost of $38 million in the third quarter of 2019. Corning Optical, a fiber optics solutions provider and division of materials science innovation giant Corning Inc., occupies the property under a lease that is scheduled to expire in 2034.

READ ALSO: How Coronavirus Is Impacting Office Leasing

In marketing the asset for sale, Cushman & Wakefield welcomed a great deal of interest from the investment community and ultimately fielded 30 offers before selling to Crown. “Buyers were attracted to a number of things, including the strength of the tenant and its long-term commitment, and the quality of the building,” Rob Cochran, managing director in Cushman & Wakefield’s Capital Markets group, told Commercial Property Executive. “The fact that Corning Optical is a tech tenant was a huge attraction as well.”

Corning Optical’s home occupies roughly 12 acres at the center of the 115-acre Riverbend Village mixed-use development in Northwest Charlotte. Gensler designed the LEED-qualified office property, which is clad in View Dynamic Glass smart window technology and metal panels to reflect the history Corning Optical parent company Corning Inc.’s nearly 170-year history in the glass industry. The building has the capacity to accommodate 650 employees, who can avail themselves of a long list of amenities that includes indoor and outdoor lounges, a café, on-site walking trails and a green roof with seating. Cochran noted, “It is one of the most technologically advanced buildings in Charlotte with amenities that employees demand.”

Charlotte’s Staying Power

It remains to be seen just how COVID-19 will impact the U.S. office sector over the long term, but Charlotte is poised to withstand challenges. And despite uncertainty amid the pandemic, investors remain keen on the city’s office market, as evidenced by the Corning Optical headquarters transaction, which traded at the local record-breaking sum of approximately $321 per square foot.

Top office transactions in the first quarter of 2020 included NorthPond Investors’ acquisition of the historic Latta Arcade Building for $7.9 million, or $269 per square foot, and South Street Partners’ purchase of Coliseum Centre 3, 5 & 6 for $102 million, or $208 per square foot. “Charlotte was and will be on the top of investors’ lists due to the diversity of the economy and its strong population and job growth,” said Cochran.

The post Corning Optical’s Charlotte HQ Sells for $59M appeared first on Commercial Property Executive.

Charlotte. Image via Pixabay.com

Charlotte’s commercial real estate sector began the month on a strong footing. Two deals crossed the $100 million threshold, and construction activity kept its strong pace, with a notable South End project landing a major financing package from PCCP. However, the second half of the month was notably slower, following the metro’s first confirmed cases of COVID-19. On March 26, Mecklenburg County issued a three-week order for all residents to stay at home. Although the order specifically exempts construction work as a critical trade, it will nonetheless have a chilling effect on the market’s overall activity in the short-term.

1. DEAL – Armada Hoffler to sell $106.5 million retail portfolio.

Slate Retail REIT agreed to buy the Renaissance Square and Alexander Pointe shopping centers, as part of a seven-property portfolio sale. Both assets—the first located at 11040 Renaissance Drive in Kannapolis, the other at 850 Jake Alexander Blvd. W. in Salisbury—are anchored by Harris Teeter grocery stores. The full transaction includes 630,000 square feet in Maryland, North Carolina and Virginia and will close in the second quarter.

2. PEOPLE – Extended Stay America names chief investment officer.

Judi Bikulege brings more than 28 years of experience to the newly created role, where she will oversee new construction and renovation activity and manage ongoing capital investments. Prior to her promotion, she served as the hospitality firm’s senior managing director of real estate. Bikulege also previously held senior positions with a wide variety of other hospitality firms including Gencom, Morgans Hotel Group and Patriot American.

3. DEAL – Dalfen Industrial acquires warehouse near Charlotte International Airport.

CLT Freight Carrier sold its 58,160-square-foot facility for $5.3 million, according to public records. The seller signed a three-year leaseback deal which allows for one three-year extension option. Built in 2001, the building is located on 6 acres at 4325 Beam Road, 5 miles from the intersection of interstates 77 and 485. The purchase brings Dalfen’s North Carolina portfolio to approximately 2.5 million square feet.

4. DEAL – South Street Partners pays $102 million for three Class A office assets.

Brookfield provided the buyer with a four-year, floating-rate $79.4 million acquisition loan. America’s Capital Partners sold Coliseum III, V and VI which total 511,344 square feet. Completed between 1996 and 1998, the six-story buildings are located at 2550 W. Tyvola Road and 2810 and 2815 Coliseum Centre Drive. JLL Capital Markets assisted the seller, procured the buyer and arranged the financing.

5. SUSTAINABILITY – Albemarle Corp. awarded LEED Gold certification for headquarters expansion.

The 141,000-square-foot addition, completed in January 2019 at the northern structure within Lincoln Harris’ Capitol Towers at 4250 Congress St., received the certification due to its wide range of sustainable features. The project, spread across six of the building’s 10 stories, targeted improvements in water efficiency, energy use and indoor environmental quality, among others.

6. DEVELOPMENT – South End office project gets $95.6 million construction loan.

PCCP provided the senior note for Portman Holdings’ 2151 Hawkins, according to Charlotte Business Journal. The 280,000-square-foot, 16-story office development broke ground earlier in the year and is slated to deliver in September 2021. While the project has not yet secured any office tenants, Sycamore Brewing will move from its location next door to anchor the building’s retail component.

The post Charlotte Commercial Real Estate Wrap-Up – March 2020 appeared first on Commercial Property Executive.

Construction activity is concentrated in North Carolina’s two largest cities: Charlotte and Raleigh. According to Yardi Matrix, more than 9.5 million square feet of office space was under construction in the state as of February, with the majority of the underway properties already preleased. The bulk of the upcoming assets are expected to come online in 2021 and will serve as corporate headquarters for major companies including LendingTree, Ally Financial and Duke Energy, to name a few.

10. Raleigh Crossing

301 Hillsborough St. Rendering courtesy of The Fallon Company

The Fallon Co. broke ground on the 292,500-square-foot project in September 2019. Situated at 301 Hillsborough St. in the heart of downtown Raleigh, N.C., the 20-story building represents the first phase of Raleigh Crossing, a mixed-use development named for its location at the junction of four city districts. The office building is expected to be completed in December 2021.

At full build-out, the Duda|Paine Architects-designed development will encompass retail space, a 165-room hotel as well as 135 apartments. Software firm Pendo has already signed a four-story lease at 301 Hillsborough St., planning to move its corporate headquarters from the nearby Wells Fargo Capitol Center.

9. Vantage South End – West Tower

Vantage South End – West Tower. Rendering courtesy of The Spectrum Cos.

In July 2019, a joint venture between Invesco Real Estate and Spectrum Group broke ground on Vantage South End – West Tower, a 295,600-square-foot office development in Charlotte’s Midtown–South End. Bank of America provided a $178.4 million construction loan.

Scheduled for completion in the first quarter of 2021, the building will serve as LendingTree’s new headquarters. The upcoming West Tower is located at 1100 S. Tryon St. and is part of a 635,000-square-foot, $300 million mixed-use development, which will also include another office tower, a boutique hotel and an urban park.

8. Honeywell Tower

Another office building taking shape in Charlotte is Lincoln Harris’ Honeywell Tower. Construction of the 304,250-square-foot, 23-story tower started in October 2019, with completion anticipated in March 2021. The asset is located at 700 S. Mint St. and is part of the 10-acre, mixed-use Legacy Union development. Additionally, the tower will serve as Honeywell’s newest corporate headquarters, expected to house 750 employees over the next five years.

7. 2151 Hawkins

Portman Holdings is currently working on 2151 Hawkins, a 323,000-square-foot office building in Charlotte’s emerging Midtown–South End submarket. Developed on a former brownfield site, the 16-story property is expected to come online in March 2021, with Gensler leading the project design. The property will include a food hall and will house the award-winning Sycamore Brewery. The site provides frontage on the Lynx Blue Line and Charlotte Rail Trail.

6. Ballantyne Corporate Park – 13146 Ballantyne Corporate Place

The largest office project under construction outside of Charlotte’s urban core is 13146 Ballantyne Corporate Place, a 328,000-square-foot asset developed by Northwood Investors. Construction on the 11-story property started in May 2019, with completion scheduled for March 2021. Wells Fargo provided $121 million in construction funding.

The building is part of Ballantyne Corporate Park, a 2,000-acre community,  which includes more than 4 million square feet of office space and 1,000 residential units as well as a hotel, located in the Highway 51 submarket. The campus is also home to 35 Fortune 500 companies, including Brighthouse Financial, Wells Fargo, Premier, Synchrony, TIAA, Lincoln Financial Group, Spectrum and Siemens.

5. Advance Auto Parts Tower

Slated for delivery by September 2020, the second Raleigh, N.C., property on the list is Advance Auto Parts Tower, located in the city’s North Hills area. Kane Realty Corp.’s 336,834-square-foot asset will spread across 20 stories, with Bank OZK facilitating construction with an $84.7 million loan. Advance Auto Parts will anchor the building, taking up 85 percent of the total space. The other tenant in place is IAT Insurance Group.

4. Legacy Union – 650 South Tryon

650 S. Tryon St. Rendering courtesy of Lincoln Harris

The 370,240-square-foot building represents the second phase of the Legacy Union project in downtown Charlotte, on the former site of The Charlotte Observer. Lincoln Harris broke ground on the 18-story project in December 2018, with completion scheduled for December 2020. U.S. Bank financed the construction with an $88.2 million loan. Deloitte will be the anchor tenant, leasing 90,000 square feet.

3. Design Center Tower

Design Center Tower. Rendering courtesy of Lowe’s

The fourth building on our list, expected to come online in March 2021, is Ram Realty Advisors’ and Childress Klein’s Design Center Tower in Charlotte’s Midtown–South End submarket. The joint venture began work on the $153-million project in October 2019. Upon completion, the asset will add 378,502 square feet of premier space to the market’s total inventory.

The 23-story property is rising at 100 W. Worthington Ave. and it will serve as Lowe’s global tech hub. The home improvement giant will move more than 2,000 technology professionals in the building by late 2021.

2. Ally Charlotte Center

Ally Charlotte Center. Image courtesy of Crescent Communities

Also in Charlotte’s CBD, Crescent Communities is currently developing Ally Charlotte Center, a 743,600-square-foot premier office asset at 601 S. Tryon St. The developer broke ground on the 26-story building in March 2018, with completion scheduled for March 2021. Regions Bank provided $167.8 million in construction financing.

Ally Financial leased 400,000 square feet in the building and will consolidate its Charlotte employees there upon completion. The site will also feature the first JW Marriott in North Carolina.

1. Charlotte Metro Tower

North Carolina’s largest office property underway is Childress Klein’s Charlotte Metro Tower in Queen City. Construction of the 1,025,000-square-foot building started in July 2019. Upon completion in March 2022, the project will include seven stories of retail space and seven levels of parking. It will also be the third-tallest office building in Charlotte.

The 40-story development will house Duke Energy’s future corporate offices. Located at 509 S. Tryon St., Charlotte Metro Tower is across from the company’s current headquarters in Uptown Charlotte. The new location comes on the heels of Duke’s plan to reduce its office space in the area by 25 percent.

Yardi Matrix covers office properties of 50,000+ square feet in markets across the United States. This ranking reflects developments underway within that sample group.

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Ally Charlotte Center. Image courtesy of Crescent Communities

The metro’s economy is advancing at a fast rate, and the city stands to transform even further as work on a five-year, $600 million expansion project at Charlotte Douglas International Airport gets underway. In February, the metro buzzed with activity, as a financial services company inked a major lease agreement and Exeter Property Group kicked off an industrial project at a former prison site. Here is our February selection of notable real estate moves in Charlotte: 

1. DEAL – Bridge Investment makes $46.3 million suburban office buy.

Angelo Gordon sold LakePointe Corporate Center 3 and 5 in the 227,000-square-foot portfolio deal. The seller had finished $1.6 million in renovation work last year. Located at 3730 and 3735 Glen Lake Drive, the properties were completed between 2001 and 2006. Angelo Gordon had purchased the two buildings in 2017 from Starwood Property Trust as part of a 1.3 million-square-foot portfolio transaction spanning four states.

2. DEVELOPMENT – Exeter Property kicks off construction at former prison site.

The developer broke ground on Meadow Oak Commerce Center, which will encompass 523,000 square feet across two flex buildings, according to Charlotte Business Journal. Located on 48 acres at 4101 Meadow Oak Drive, the site is roughly 5 miles from Charlotte Douglas International Airport. Landmark Builders is the general contractor for the McMillan Pazdan Smith-designed development. In January, Exeter paid Transwestern $19.1 million for a newly constructed facility 5 miles from O’Hare in Chicago.

3. LEASING – Ally Financial inks Uptown lease expansion.

Less than three years after committing to 400,000 square feet within Crescent Communities’ Ally Charlotte Center, the bank inked an agreement to occupy the remaining space within the 725,000-square-foot high-rise development. In addition to Ally, the owner will occupy part of the building at 601 S. Tryon St. Apart from its office component, the tower will have retail space, a public plaza and more than 1,400 parking spaces upon completion in 2021.

4. DEAL – Prime Group Holdings pays $9.2 million for self storage asset.

A private investor sold CrossTrax Self Storage, a 116,350-square-foot facility at 9400 Bob Beatty Road. The Storage Acquisition Group facilitated the deal, and LMF Commercial provided the buyer with financing. Located on 12 acres, the 666-unit property is 1 mile south of Interstate 485 and was completed in five phases between 1997 and 2016. 

5. DEAL – Gladstone Commercial trades Southpark office building.

Exeter Property Group purchased the vacant, 67,949-square-foot property for $4.1 million, according to public records. Located at 5815 Westpark Drive on a 4-acre parcel, the building opened its doors in 1984. The new owner plans to upgrade the assets with the addition of new amenities, outdoor common areas and exterior renovations. JLL Capital Markets negotiated the off-market transaction on behalf of the seller.

The post Charlotte Monthly CRE Wrap-Up (Feb. 2020) appeared first on Commercial Property Executive.

READ ALSO: Charlotte Office Report – Fall 2019

JLL represented the seller, America’s Capital Partners, and procured the buyer, Charlotte-based South Street Partners. The JLL Capital Markets team also arranged the four-year, floating-rate acquisition loan with Brookfield for the buyer. The team representing the seller was led by Senior Managing Director Ryan Clutter, Senior Director Chris Lingerfelt and Director Zack Drozda. The team representing the borrower was led by Senior Managing Director Travis Anderson and Director Taylor Allison.

Clutter said in a prepared statement the deal demonstrates the investor appeal of the Charlotte office market, which has strong employment growth and leasing demand. Lingerfelt, also in prepared remarks, pointed to the Airport submarket and noted both the submarket and Coliseum Centre properties are poised for growth because of the underlying fundamentals in the area.

Last month, JLL’s Clutter represented Angelo Gordon, the owner of LakePoint Corporate Center 3 and 5, a 226,863-square-foot office campus in Charlotte, in the sale of the property to Bridge Office Fund Manager, a subsidiary of Bridge Investment Group. The office campus was also located in the Airport submarket.

Property details

Built between 1996 and 1998, the six-story Coliseum Centre buildings are 87 percent occupied and offer amenities not normally found in similar-sized buildings including on-site dining options, three oversized fitness centers, a conference facility, three large boardrooms, 60-person training facilities with adjacent tenant Wi-Fi lounge and a shared collaboration area.

Coliseum Centre III, located at 2550 W. Tyvola Road, has 200,725 square feet and is located on 14.28 acres with 743 parking spaces. Tenants include Saussy Burbank, Paycor, Circle K, Baker & Taylor and Swinerton. Coliseum Centre V is located at 2810 Coliseum Centre Drive and has 155,844 square feet and 745 parking spaces on a 9.75-acre site. Tenants include Valta and Curvature, which signed a long-term lease in February 2018 for 41,716 square feet at the building for its headquarters. Coliseum Centre VI is located at 2815 Coliseum Centre Drive and has 153,272 square feet and 567 parking spaces on an 8.34-acre site. Tenants include Brinkley Financial Group, Acara Solutions, VP Engineering, ADW Architects, Aetna and Compass Group.

The properties are immediately adjacent to Billy Graham Parkway and are close to Interstates 77, 85 and 485, the area’s primary transportation arteries. They are also a short distance from the Charlotte Douglas International Airport and Uptown Charlotte, the city’s central business district. Many top hotel brands are also nearby.

The post America’s Capital Partners Sells Charlotte Campus for $102M appeared first on Commercial Property Executive.

5815 Westpark Drive

Exeter Property Group has acquired a vacant office building totaling 67,949 square feet in Charlotte, N.C. JLL Capital Markets assisted the seller in the off-market transaction with the buyer, which was self-represented.

Built in 1984 and renovated in 1996, the two-story asset includes private and conference rooms, as well as a mix of creative and private offices. The buyer plans to implement renovations at the property. Enhancements will include new amenities, outdoor common areas, automation systems and an exterior upgrade. The project is scheduled for completion by the fourth quarter of this year.

Located at 5815 Westpark Drive, on a 4-acre site, the property is just off Interstate 77 and 6 miles from both Charlotte city center and Charlotte Douglas International Airport.

The JLL Capital Markets team included Senior Directors Chris Lingerfelt and Zack Drozda, as well as Senior Managing Director Ryan Clutter. Fred Knapp, principal at Exeter, represented the company in the transaction. This month, Clutter represented the seller of a two-building, 226,863-square-foot office campus in Charlotte, N.C.

The post Exeter Property Buys Charlotte Office Building appeared first on Commercial Property Executive.

CrossTrax Self Storage

Prime Group Holdings has acquired CrossTrax Self Storage in Charlotte, N.C., from a private investor. The 116,350-square-foot facility changed hands for $9.2 million, and the new owner received acquisition financing from LMF Commercial, Mecklenburg County records show.    

Located at 9400 Bob Beatty Road, the 666-unit property is 1 mile south of Interstate 485 near its intersection with the Bill Lee Freeway. The asset is 10 miles north of downtown Charlotte and within 3 miles of more than 8,300 multifamily units, according to Yardi Matrix data.

Completed in five phases between 1997 and 2016 on an 11.9-acre site, the property comprises units ranging from 25 to 400 square feet. The gated facility features climate control, RV parking, drive-up access, security cameras and 24-hour accessibility.

Associate Jonathan Spencer, Associate Appraiser Scott Eckert and President & CEO Cowles Spencer Jr. from The Storage Acquisition Group negotiated the deal. Spencer was also part of the team coordinating the $7.1 million January sale of a 91,569-square-foot facility in Mesa, Ariz.

The post Charlotte Self Storage Asset Trades for $9M appeared first on Commercial Property Executive.

LakePointe Corporate Center 3

Bridge Office Fund Manager, a subsidiary of Bridge Investment Group, has purchased LakePointe Corporate Center 3 and 5, a two-building, 226,863-square-foot office campus in Charlotte, N.C.

According to Yardi Matrix data, the seller was Angelo Gordon, which bought the Class A asset in 2017 from Starwood Property Trust in a portfolio deal incorporating nearly 1.3 million square feet of office space across four states. Ryan Clutter of JLL represented the seller in the current transaction.

The office campus occupies more than 15 acres in the Airport submarket. Located at 3730 and 3735 Glen Lake Drive, the four-story buildings feature open floorplans and parking ratios of more than 4 spaces per 1,000 square feet. Completed between 2001 and 2006, the campus recently underwent a $1.6 million renovation plan. Amenities include a fitness center, community conference room and full-service cafe. The LEED Silver-certified assets are currently 52 and 100 percent occupied, respectively, with Compass Group, Toshiba and Westinghouse on the tenant roster.

Bridge intends to invest an additional $1.3 million in capital improvements at the site. Bridge Commercial Real Estate, the operating division of Bridge Office, will serve as property manager and also oversee all redevelopment work.

The office campus is some five miles west of city center, near Charlotte Douglas International Airport and easily accessible to interstates 77 and 485. The office park is roughly 14 miles south of another Bridge property, a 358,000-square foot office park the firm acquired in 2017.

The post Bridge Investment Group Buys Charlotte Office Campus appeared first on Commercial Property Executive.

Image courtesy of ATCO Properties & Management

ATCO Properties & Management’s Camp North End creative office development in Charlotte, N.C., has been awarded a two-star Fitwel Community Design Certification. The national building standard, offered through the Center for Active Design, focuses on optimizing holistic health benefits in large-scale projects.

The certification system was launched for universal use in 2016, developed by the U.S. Centers for Disease Control and Prevention and the General Services Administration, and evaluates and rates the health affecting aspects of the built environment to improve occupant wellbeing. Fitwel’s analyzed categories include location, building access, outdoor spaces, entrances and ground floor, stairwells, indoor environments, workspaces, shared space, water supply, cafeterias and prepared food retail, vending machines and snack bars, and emergency procedures. 

READ ALSO: Building Design Shifts Toward Wellness Architecture

“It all starts with and comes back to people. We believe people do their best work when they are happy, healthy and inspired. When designing a place where people will spend many of their waking hours, we take seriously our responsibility to provide space that will unlock their potential and facilitate healthy and inspired lifestyles, which directly impacts their productivity and the success of their employers,” Damon Hemmerdinger, co-president of ATCO Properties & Management, told Commercial Property Executive.

“Fitwel provided a roadmap to build nudges into the physical space to encourage these positive outcomes at scale. These initiatives will improve the wellbeing and productivity of our tenants’ employees, and some of these decisions have the added benefit of impacting anyone who visits the site, whether they live next door or travel across the city to spend time at Camp North End,” he added.

Camp North End. Image courtesy of ATCO Properties & Management 

The Fitwel Design Certification is awarded to new construction and major renovation projects, as soon as the design of the development is solidified and prior to it being occupied. This recognition is valid for three years from the certification date, after which the projects apply for a Built Certification. This certification is also valid for three years.

Pioneering project

The Fitwel Community project type, currently in the pilot phase, impacts occupants of a contiguous development that incorporates open space, more than one building and multiple uses, including residential and at least one other type, such as retail, commercial, industrial, civic or institutional, as per the information on the Fitwel website. In addition to the Fitwel certification, Camp North End’s 150,000-square-foot Gama Goat building also boasts a Wired Gold Certification.

Camp North End. Image courtesy of ATCO Properties & Management

ATCO Properties & Management is well aware of the significance of the Camp North End project and the example it sets. “We are raising the bar on development in Charlotte, both in terms of physical space and conscientious community and building engagement, beginning in the North End. We are building a central gathering place in the area and support active lifestyles that enhance social connections,” believes Hemmerdinger. 

“The City and North End neighborhoods are organized and motivated to implement progressive ideas in their community, like the North End Smart District. NESD is paving the way for new development and creating economic opportunities for residents centered on technology, innovation and sustainability. ATCO shares those aspirations and implementing Fitwel is an important step towards making that real,” he concluded.

Spanning over 74 acres at 1824 Statesville Ave., Camp North End is the city’s largest assemblage of historic factories and warehouses turned into an adaptive reuse project with one million square feet of creative office space. The development used to house the production line for Henry Ford’s Model T cars in the 1920s, and two decades later, U.S. Army missiles. While functioning as an Army outpost, it was known as CAMP, which remained part of its name to this day.

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SilverPark North. Image courtesy of JLL

M. David Properties has completed work on its first speculative building at SilverPark North in Charlotte, N.C. The 136,000-square-foot structure is part of a 300,000-square-foot industrial park that is set to include three buildings upon completion.

Located at the intersection of Hucks and Old Statesville Roads in north Charlotte, the industrial facility is roughly one mile from interstates 485 and 77. M. David Properties’ first building features a rear-loading configuration, 32-foot clear height, 40 dock doors, two drive-in bays, ESFR sprinklers and additional storage for 35 trailers. JLL is heading up marketing for the Class A structure, which can accommodate distribution or manufacturing users.

In the Charlotte market, M. David Properties also owns SilverLake, a 565,000-square-foot industrial park on Westinghouse Boulevard, and the 125,000-square-foot SilverLanding building near Charlotte Douglas International Airport’s intermodal yard. In total, the company owns and manages one million square feet of industrial space in the market. According to JLL Managing Director Brad Cherry, the Charlotte industrial market absorbed nearly 6 million square feet of space in 2019, fueled by increasing demographics and the growing impact of e-commerce.

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