Landmark Pays $21M for 380-unit Victoria Park

By Eliza Theiss, Associate Editor

Richmond, Va.-based Landmark Apartment Trust of America Inc. has announced two acquisitions in the Carolinas totaling 600 units. The transactions, worth a combined $36 million, include the 380-unit Victoria Park in North Carolina’s booming Charlotte metropolitan area and the 220-unit Reserve at River Walk in Columbia, S.C. Featuring an array of attractive amenities, the two apartment complexes have a combined occupancy rate of 95 percent.

“The addition of these assets to our portfolio aligns with our disciplined investment strategy of acquiring assets in high-growth Southeastern markets at a discount to replacement cost,” declared Stanley J. Olander, chief executive officer of Landmark. “We are confident our proven operating platform strategy will maximize the potential of each asset, unlocking unrealized cash flow opportunities.” Oleander also predicted value-add renovation work will be undertaken at both properties.

Victoria Park’s 4616 Stoney Trace Dr. address locates it within the town of Mint Hill with swift access to Charlotte’s major employment and entertainment opportunities, while at the same time offering the peaceful atmosphere of suburbia. The community boasts several resort-style amenities such as both indoor and outdoor swimming pools, a multi-sports court, picnic area, playground and lush landscaping. Other community privileges include a fitness center, 24-hour clothes care center, Wi-Fi café, onsite business center and resident activities program.

Apartment amenities include walk-in closets, a gourmet kitchen, dishwasher and private balcony, with larger units boasting wood-burning fireplaces. Victoria Park is comprised of one-, two- and three-bedroom units ranging from 645 to 1,306 square feet. Rents start at $505 and go up to $950 per month.

Victoria Park’s individual purchase price was $21 million.

Click here for more Charlotte market data

Photo credits: Victoria Park’s Facebook page

22-Story Second Ward Mixed-Use Development on Track for Completion

By Eliza Theiss, Associate Editor

What was once an unfinished eyesore in Charlotte’s Uptown is now shaping up to be a prized downtown asset. Formerly named The Park, the 21-story building under development at the corner of South Caldwell and East 3^rd Streets is now known as SKYE Condominiums—but the mixed-use development will feature far more than just condos.

Alongside the 67 luxury condo units, two penthouse suites will also be featured, as well as a 172-key limited-service hotel, street-level retail, a rooftop restaurant and bar. The property’s condo component will take up floors 14 through 19 and will be made up of one- and two-bedroom condominiums in several layouts, with floor spaces starting at 700 square feet for one-bedroom units and reaching 2,500 square feet for two-bedroom condos.

All units feature state-of-the-art stainless steel appliances, granite countertops and large-scale terraces. Both penthouse suits will be located on the 21^st floor, offering sweeping views of Uptown Charlotte and 3,500 square feet of open living space. The three-bedroom, three-and-a-half bathroom units also offer a two-story great room, formal dining room, and gourmet kitchen with a wet bar, among other features.

SKYE Condominiums residents will enjoy amenities such as a theatre room, fitness center, rooftop pool and sun deck, demonstration kitchen and wet bar, party room, game and billiards room, lounge complete with an E-room, private mail room, additional storage space, and bicycle storage. Other building amenities include a green roof with open space walkways, 24-hour security and concierge service, five high-speed elevators, resident room service, and valet parking.

The property’s ground floor will be taken up by retail, while part of the rooftop will be occupied by a restaurant and bar. The property will also feature a five-story parking garage with three levels of residents-only, controlled access.

The high-rise is seeking LEED certification from the U.S. Green Building Council. The McDevitt Agency is the designated broker for SKYE’s 67 condos, of which, according to the Charlotte Business Journal, 24 are already under contract. The same source reports the first residential units will be delivered in the third quarter of the current year, with the hotel component, a 172-key Hyatt dubbed Hyatt Place Charlotte/Downtown, opening late in the third quarter as well. In the lead-up to the September opening of the hotel, which will occupy the lower levels of the high-rise, Hyatt veteran Don Lockhart has been appointed general manager.

SKYE’s current owner and developer, Small Brothers Charlotte LLC, acquired the building, then an unfinished 106-unit condo project, in 2009 for a little over $4.5 million. It subsequently increased its area ownership by purchasing two adjacent parcels to increase pedestrian and vehicle access to the high-rise. Award-winning international design firm Perkins Eastman is architect of the project, while Cleveland Construction Inc. is the designated construction management firm.

For more market data from Charlotte, click here.

Image courtesy of SKYE Condominium’s Facebook page

Adolfson & Peterson Buys Charlotte Location for $2.5M; Fifth Third Center Applauded for Energy Efficiency

By Eliza Theiss, Associate Editor

Minneapolis-based Adolfson & Peterson Construction (A&P) has announced its purchase of the Fowler Building, the company’s Charlotte location. A&P moved into the South Tryon Street building in March 2012, leasing 8,300 square feet of the property’s gross leasable area of 18,000 square feet.

Built in 1928, the property is located in the historic South End neighborhood conveniently close to Charlotte’s light rail system and Uptown—a definite advantage of the property. A&P will invest in the property’s vacant space to convert it into additional office space, which is needed due to its increasing employee roster. Such includes part of the third floor and basement area.

A tenant currently leasing 3,500 square feet on the third floor will continue to occupy its current space. The Charlotte Business Journal identifies the tenant as IT consulting firm Systemtec. A&P, represented by Josh Beaver of The Nichols Co., paid a reported $2.5 million for the Fowler building, purchasing it from Boulevard at 1447 South Tryon Street LLC—represented by Greg Pappanastos of Argos Real Estate Advisors.

In other news, Parmenter Realty Partners announced that Fifth Third Center, one of its Charlotte assets, has been named among the top three energy saving buildings in the “Over 500,000 Square Foot” category of the Smart Energy Now® Building Recognition Program. Smart Energy Now® is Duke Energy’s program dedicated to aid in lowering energy consumption in Charlotte’s Uptown office properties, with a focus on changing employee attitudes and habits in relation to energy consumption.

Located at 201 North Tryon St., Fifth Third Center is a LEED Silver and Energy Star-certified marquis trophy tower. The 30-story Class A office building features 654,533 square feet of office space, as well as an attached ten-story, 1,030-car parking garage. Parmenter Realty purchased the asset in mid-2012 from Parkway Properties in one of the year’s biggest deals in Charlotte, paying $245 million for the coveted asset (click here to read more about this transaction).

For further Charlotte market data click here.

Photo courtesy of Adolfson & Peterson Construction

32-story Uptown Office Building Hits the Market

By Eliza Theiss, Associate Editor

Following hot on the heels of last week’s sale of One Wells Fargo Center (read more about the transaction here), another uptown office high-rise has just hit the market. Though not as hot an asset as the one-million-square-foot Wells Fargo trophy tower, the 121 West Trade office tower is still very much an attractive property.

121 West Trade, previously known as the Interstate Tower, has been listed for sale with CBRE Group Inc., according to a Charlotte Business Journal report. The property, located at the corner of Trade and Tryon Streets, is 72 percent occupied, with it largest tenant—Chicago Bridge & Iron Co.—taking up a 117,000-square-foot lease set to expire in 2018. The property also houses the members-only Charlotte City Club on its top floor.

Faison Enterprises Inc. developed the 32-story office building in 1990. An affiliate of the company, Tryon Street LLC, sold the property in 2006 to Tryon Tower LLC, an affiliate of Cornerstone Real Estate Advisers LLC. The entity, current owner of 121 West Trade, paid $52.3 million for the asset.

The office tower features 330,000-square-feet of Class A office space. Amenities include a 260-car, eight-floor parking garage, onsite management by Spectrum Properties, 24-hour security service, an outdoor courtyard with water features, 360-degree views of Charlotte, and upgraded fixtures and finishes. The property features street-level retail as well. The Kohn Pedersen Fox Associates-designed office high-rise features a classical architectural look with limestone, granite and marble exteriors.

Click here for more Charlotte market data.

Photo courtesy of Civilengtiger via Wikimedia Commons

Starwood Picks Up One Wells Fargo Center Trophy Tower

By Eliza Theiss, Associate Editor

Leading private investment firm Starwood Capital Group has announced that one of its affiliates, New Jersey-based Vision Equities, in partnership with Mountain Lakes, has acquired One Wells Fargo Center—one of Charlotte’s trophy office buildings. The off-market purchase was made at a yet to be disclosed price.

Previous owner Childress Klein Properties will stay on to handle property management and leasing under a long-term agreement with the new owners. The office tower had been under Childress Klein’s ownership for 25 years.

“We are pleased to be acquiring one of the premier office buildings in Charlotte’s central business district. 1 Wells Fargo Center is a welcome addition to our portfolio, as it is a high-quality asset with a strong tenant roster that will generate significant cash flow for years to come,” declared Starwood Capital Senior Vice President Mark Keatley.

The high-quality Class AA office building is located in Charlotte’s central business district and features one million square feet of office space. The property is 98 percent-leased to long-term tenants. Seven of the property’s nine largest tenants, occupying 92 percent of the total rentable area, have been in One Wells Fargo Center for over 20 years and have average remaining leasing contracts averaging 7.5 years. An added bonus of the property is that circa 70 percent of its in-place income derives from investment grade tenants.

Amenities at the 42-story office tower include a seven-level underground parking garage of approximately 1,100 parking spaces; a 24-hour on-site security with controlled visitor and tenant access; shops and service providers such as a coffee house, dry cleaner and sundry store; a YMCA; casual and fine dining venues; and part of Wachovia Center—a hub of offices, restaurants, shops, venues and businesses spanning three city blocks.

For more Charlotte market data click here.

Image courtesy of Kozo via Wikimedia Commons

Crescent Communities Breaks Ground on 63-Acre Mixed-Use Alexander Village in Charlotte

By Eliza Theiss, Associate Editor

Crescent Communities (formerly known as Crescent Resources) has announced breaking ground on the 63-acre health club-inspired Alexander Village. The ambitious project is being developed on Senator Royall Drive close to University Research Park, an area presenting high growth numbers. The mixed-use development is set to be constructed in several phases and is inspired by Crescent Communities’ award-winning Palmetto Bluff Resort located in Bluffton, S.C.

The $33.6 million Phase One of Crescent Alexander Village is the multi-use development’s 27-acre residential component. The garden-style luxury apartment community will comprise 320 units. Buildings will feature a vernacular classical design, such as stonework reminiscent of 18th-century stone homes—present in the community’s clubhouse, as well as several seaside resort-type elements such as an outdoor yoga lawn. Eight of the 320 units will be cottages intended as corporate apartments.

Community amenities include a clubhouse that will target LEED certification, a state-of-the-art health club, business center, clubroom, gaming area, catering kitchen, outdoor kitchen, outdoor fireplace, lounging areas, resort-style saltwater pool, aqua sundeck, bocce courts, amphitheater, scenic pond with fitness trail, and an expansive, wooded dog park.

“We are creating a community that will be an ideal complement to the continued growth in high-level career opportunities within University Research Park,” declared Brian Natwick, president of Crescent’s multifamily group, in a news release.

Further development phases include 250,000 square feet of office space, up to 75,000 square feet of retail, and a hotel. The project is a registered member of the Audubon International Signature Program and is working towards becoming  a Certified Signature Sanctuary. Regions Bank is project construction lender.

For more market data from Charlotte, click here.

Image courtesy of Crescent Communities

Chart courtesy of Marcus & Millichap

New Apartment Projects Rumored in Charlotte

By Eliza Theiss, Associate Editor

Rumors of new multifamily projects have been abound lately. Following Gvest Partners’ recent announcement of developing a $37 million 342-unit apartment complex in the artsy NoDa neighborhood of Charlotte, another hot submarket within the city could see a brand new apartment community. According to the Charlotte Business Journal, Woodfield Investment Trust LLC is conducting due diligence on a two-acre property in the vicinity of the future BB&T Ballpark.

Even though no official statements have yet been released, rumors of the company planning to develop a 230-unit apartment community near the ballpark have been circulating for months. Currently, however, Woodfield has the site under contract, which is empty save for a 13,000-square-foot industrial structure. If the company moves forward with the project, plans call for 230 units spread across four levels complete with a two-level car park.

Located in close proximity to the Bank of America Stadium, the Third Ward is set to become even hotter with the Charlotte Knights minor league baseball team’s new $54 million stadium currently under construction. The 10,000-seat stadium broke ground earlier this years and is slated to open in time for the 2014 season. It is expected to not only generate healthy tax income, but also a boom of new developments in the surrounding area—from office projects to hotels to multifamily projects.

Woodfield currently has two other multifamily projects under construction in Metrolina and expects to break ground on two more before the year is out. One of the planned communities will be developed in the NoDa district. It owns several completed projects in the city as well, such as the Gramercy Square at Ayrsley.

In other multifamily news, Crescent Communities LLC (previously known as Crescent Resources) is also rumored to be looking to develop a 300-unit apartment community in the Midtown area. According to the Charlotte Business Journal, Crescent will buy up about two acres of property at the intersection of East Morehead and Harding Place in order to construct a community featuring underground parking. The alleged site currently holds some low-rise office properties.

Image courtesy of Woodfield Investments’ Facebook page

Chart courtesy of Marcus & Millichap

$37M Apartment Complex Planned for NoDa, Speculative Office Space for Mooresville

By Eliza Theiss, Associate Editor

Gvest Partners LLC, a closely held real estate investment partnership that focuses on the acquisition, development and management of commercial real estate and renewable energy assets, has announced plans for a $37 million apartment development in Charlotte. According to the Charlotte Business Journal, Gvest plans to build a 342-unit apartment complex in the city’s NoDa neighborhood.

Expected to break ground within a few weeks, The Yards at NoDa will consist of eight four-level buildings spread across 10 acres west of North Brevard St. The developer purchased the plot in early 2012, which, according to the report, has been rezoned for proper land use. Gvest paid $4 million for the land.

The community, which will rise in close proximity to a station of the planned extended light-rail line, will feature studios, one-, two- and three-bedroom units, as well as two townhomes.  Amenities will include a fitness center, resort style pool, clubhouse, dog park and surface parking. The community will also mirror NoDa’s vibrant, walkable, urban vibe with features such as graffitied walls.

The property is expected to be completed in 16 months. Construction financing was provided by Well Fargo & Co.

In other news, signs of market recovery are beginning to show in Metrolina as well, with ideas and rumors of speculative development in the Greater Charlotte area creating a buzz. According to a report by the Charlotte Business Journal, Merinos Home Furnishings owner Michael Bay is considering redeveloping some of the available space at his Mooresville store into office space.

With the Merinos home furnishings store taking up about half of the available 1.1 million square feet of space, Bay is reportedly considering renovating 82,000 square feet into speculative office space.

Photo courtesy of Merino Home Furnishing Warehouse’s Facebook page

SunTrust to Anchor 105,000-Sq.-Ft. Sharon Square Office Component

By Eliza Theiss, Associate Editor

Atlanta-based SunTrust Banks Inc. is consolidating its Charlotte area operation and has chosen Pappas Properties’ SouthPark mixed-use development as its future location. According to a report by the Charlotte Business Journal, SunTrust has signed a 43,500-square-foot lease at Sharon Square, which translates into the second and third floor of a five-story 105,500-square-foot Class A office building set to break ground in May. The new location will act as SunTrust’s Charlotte headquarters beginning in the second quarter of 2014, the planned date of relocation.

SunTrust’s Charlotte presence includes a 30,000-square-foot office building under its ownership and an approximately 30,000-square-foot lease in a SouthPark office building. Some of its operations from these locations will be consolidated at Sharon Square, where the company plans to open street-level retail branch.

Pappas Properties is developing Sharon Square with the Allen Tate Co. The four-phase property is currently adding a $52 million Phase Two, which broke ground in September 2012.  It comprises two luxury residential buildings with street-level retail space, as well as a 445-car parking facility.

As previously reported on this page, retail will occupy 22,000 square feet and will contain restaurants and high-end boutiques. Some of the amenities of the residential component will include private courtyards, landscaped garden terraces, fitness center and elevated pool terraces. According to the Charlotte Business Journal, units will include one-, two- and three-bedroom apartments with the first units completed in Fall 2013 along with the retail space.

Phase One of the project opened in August 2012 and is anchored by Charlotte’s first Whole Foods store with a total surface of 48,000 square feet.

Image courtesy of pappasproperties.com

Three Multifamily Communities Trade for $83M

By Eliza Theiss, Associate Editor

Richmond, Va.-based Landmark Apartment Trust of America Inc. (LATA) has announced the acquisition of three Charlotte multifamily communities for an estimated $83 million. The three assets, Mallard Creek, Abbington Place and Ashley Court, have a combined 795 units and are 93 percent occupied.

“The acquisition of these three high-quality properties significantly expands our operations in Charlotte and aligns with our disciplined investment strategy of acquiring attractive assets at a discount to replacement cost,” said LATA CEO Stanley J. Olander in a news release, adding: “We believe these assets offer strong unrealized cash flow potential that we plan to unlock by implementing our proven operating platform and renovation and repositioning strategy.”

And the optimism surrounding the multifamily industry seems to be quite on point. According to Marcus & Millichap’s 2013 market forecast report, the 20-34-year-old age bracket—the largest rental age group—is expected to increase by 50,000 in the next five years, which will not only keep vacancies low but also increase building efforts even further throughout the year. It is most likely that completed units will pass well above the last decade’s average of 2,000 per annum.

And the three properties purchased by LATA are located ideally for increasing revenue and tenancy. Their close proximity to downtown Charlotte and the University submarket, with convenient access to major interstate highways, will appeal to young professionals in the greater Charlotte area, as will their amenities.

Located at 6001 Bennettsville Ln., the 1999-built Mallard Creek boasts 240 units. Community amenities include a fully equipped fitness center, pool complete with a deck, resident clubhouse, business center, playground, car care center, detached garages and landscaped grounds. The garden-style community is also pet-friendly – a major draw for a young demographic. Mallard Creek boast one-, two- and three-bedroom units.

Located at 10015 Pantheon Court, 279-unit Abbington Place was developed in two phases between 2005 and 2008. It comprises one-, two and three-bedroom units in either three-story buildings or villas. Amenities include a pool, patios, courtyards and detached garages.

Adjacent to Abbington Places is the 276-unit Ashley Court. The 9740 Ashley Lake Court property was built in two phases between 2009 and 2011. The one-, two and three-bedroom apartment complex boasts amenities such as a 24-hour cardio center, 24-hour business center, private conference room, pool with adjacent dressing rooms, clubhouse complete with coffee bar, community grilling area and car care center.

Landmark Apartment Trust of America owns and operates over 11,000 apartment units located throughout the Southeastern United States. LATA targets below market acquisition and repositioning of mid-income multifamily properties in the South.

Photo courtesy of the Abbington Place Facebook page

Chart courtesy of Marcus & Millichap

$20M ER Breaks Ground; Roby Commercial Completes VA Outpatient Clinic Renovation

By Eliza Theiss, Associate Editor

Carolinas Healthcare System has broken ground on its newest free-standing ER facility. The new venture will rise on Rocky River Road in Harrisburg, Cabarrus County. Expected to be completed in early 2014, the 23,689-square-foot 24-hour emergency care facility will boast six treatment rooms, a full service lab, diagnostic imaging equipment (including a CT scanner), and a helipad to airlift patients to and from the facility.

According to a report by the Charlotte Business Journal, the $20.2 million emergency department—named CMC-Harrisburg—will be the healthcare system’s sixth free-standing emergency. Other such units can be found in Kannapolis, Huntersville, Steele Creek and Waxhaw.

As previously reported on this page, another free-standing emergency care department, CMC-Morrorcroft, is currently under construction in SouthPark and is expected to open in March 2014. CMC-Harrisburg will have a staff equivalent to 45 full-time employees.

In other healthcare news, Roby Commercial announced completing its renovation at the VA Outpatient Clinic—a project that added two new exam rooms and a storage room to the facility. The facility provides primary care services to veterans in the greater Charlotte area, as well as behavioral health services including individual, group and family counseling. Located at 8601 University East Dr., the facility originally opened in 2008.

Roby Commercial operates with an unlimited general contractor license in both North and South Carolina and is a member of the Roby Family of Companies, which also includes Robycross. As previously reported, Robycross recently completed renovation work on eight Brookdale Senior Living communities, four of which are located in Metrolina.

Photo courtesy of Carolinas Healthcare System

Mixed-use Midtown Asset Sold for $94M; Suburban Medical Facility Trades for $14M

By Eliza Theiss, Associate Editor

Birmingham, Ala.-based Colonial Properties Trust Inc. has announced the sale of Metropolitan Midtown in Charlotte, N.C. The mixed-use property developed in 2008 with Pappas Properties brought in sales proceeds of $94.4 million, which will be used to fund Colonial’s multifamily development endeavors, as well as to improve the company balance sheet.

The 1225 Baxter St. asset features 170,000 square feet of office space, 172,000 square feet of retail and 2,219 parking spaces. According to a company news release, the property was 93.5 percent occupied as of December 31, 2012. Metropolitan Midtown’s retail component boasts 27 stores and anchor tenants such as Target—with 137,000 square feet, Marshall’s—with a 32,967-square-foot lease, and a 30,000-square-foot Best Buy and Staples.

With the sale of Midtown, Colonial reached its goal of having at least 90 percent of the total net operating income generated by its multifamily assets.

According to the Charlotte Business Journal, the asset was purchased by institutional investors advised by a J.P. Morgan Investment Management Inc. company. CBRE represented seller Midtown Redevelopment Partners, a Colonial and Pappas-managed LLC.

In other news, Marcus & Millichap Real Estate Investment Services announced arranging the sale of the 42,300-square-foot Mint Hill Medical Commons medical care facility in Mint Hill, N.C. The fully leased property located at 11304 Hawthorne Dr. traded for $14.1 million, or about $334 per square foot.

The property’s anchor tenant is the Charlotte Mecklenburg Hospital Authority, operating as Mint Hill Primary Care through Carolinas HealthCare System. It leases 92 percent of the facility. The seller was a Charlotte-based developer, while the buyer is New York-based. The transaction was arranged via a 1031 exchange.

In further news, Crescent Resources LLC announced commencing construction on the Circle University City student housing project. As previously reported on this page, Circle University City is 546-bed luxury student residences projects set to open in summer 2014 right across from the UNC Charlotte campus’ main entry. The 187-unit project will feature one-, two- and three-bedroom units and amenities such as individual and group study areas, a media room, fitness center with yoga studio, game room, pool, tanning beds, rooftop deck, fire pits, grilling area and secure car park. Circle University City will be pursuing LEED certification.

Rendering courtesy of Crescent Resources

Chart courtesy of Marcus &Millichap

Brookdale Senior Living Therapy Clinics Upgraded; Historic Building Becomes Medical Office Suite

By Eliza Theiss, Associate Editor

Robycross, a national retirement community and healthcare center renovation company, has announced completing work started in mid-2012 on eight Brookdale Senior Living communities in North Carolina. Through upgrade work executed by Robycross, Brookdale’s communities—four of which are located in Metrolina—now boast renovated and upgraded therapy clinics.

The new Innovative Senior Care (ISC) clinics can be found in greater Charlotte area communities, examples of which include Clare Bridge of Asheville, Salisbury Gardens, Sterling House of Shelby and the Carriage Club of Charlotte.

ISC clinics are central to the senior-living style Brookdale offers, as they provide techniques for pain and disability prevention and promote functional independence via traditional therapy, as well as less conventional routines—such as Tai Chi, massage therapy and chair yoga.

An example of the type of renovation and upgrade work done by Robycross can be seen at the Carriage Club of Charlotte—a 44-acre rental retirement community with independent living, personalized assisted living, Alzheimer’s and dementia care, and skilled nursing housing options in apartments and villas.

At the Carriage Club of Charlotte, Robycross worked on two ISC therapy clinics. One located in the independent living clubhouse was doubled in size from 528 square feet to 1,440 square feet, while another 972-square-foot clinic with state-of-the-art rehabilitation equipment was added by converting existing space.

In other news, Capital City Bank—the banking subsidiary of Capital Bank Financial Corp. (formerly North American Financial Holdings Inc.)—has announced May 2013 as the expected date of completion for the historic Biltmore School Building revitalization and redevelopment in Asheville, N.C.

The $12 million project undertaken by local real estate firm Biltmore Property Group and North Carolina contractor Beverly-Grant Inc. is already well underway, with over 47,000 square feet of the building already redeveloped and leased. Built in 1927, the 58,000-square-foot property was home to Biltmore High School, Biltmore Elementary School and UNC-Asheville, but fell into disuse for ten years. Several attempts of revitalization failed.

The currently undertaken revamp, which has involved some demolition work as well, has given Biltmore Building a new life as a state-of-the-art medical office building.

Photo courtesy of Mefi Franco’s Facebook page

$16.5M Refinancing Set for The Village of Ballantyne; Library Plans Approved by County

By Eliza Theiss, Associate Editor

Southwood Realty Company Inc., a privately owned property management company headquartered in Gastonia, N.C., has secured first mortgage refinancing of $16.5 million for The Village of Ballantyne—the company’s 240-unit multifamily property located in Gastonia. According to CoStar Group, Bill Matone—NorthMarq Capital’s Charlotte Regional Office senior vice president and managing director—arranged the 10-year-term loan, which has a 25-year amortization schedule.

Located at 2380 Ballantyne Dr., the 997,112-square-foot community is 22 miles from Charlotte, ensuring quick access to the Queen City. The 2006-built property offers one-, two- and three-bedroom units featuring 9-foot ceilings, granite countertops, ceiling fans, energy-efficient central heat and air, wood cabinets and outside storage, among other things. Community amenities include a 24-hour fitness center, saltwater pool, clubhouse, picnic area, grilling stations, a dog park and parking lot.

In other news, the Catawba County Board of Commissioners has approved architectural plans for the Sherills Ford Branch Library. The 10,000-square-foot library is to be built on 2.5 acres at the intersection of Highway 150 and Sherills Ford Road. The project is expected to break ground in mid-2013 and be completed in 2014.

The bidding process for selecting a contractor is expected to start soon. Funding for the project was set aside by the Board over several years, accumulating the necessary $2.9 million. Designed by Jenkins-Peer Architect, the building will be brick-clad and feature an atrium entrance, a children’s area and landscaped outside area. Public meeting space will be generous. Plans call for a structure that is both economically and environmentally conscious.

Photo courtesy of The Village of Ballantyne’s Facebook page

Chart courtesy of Marcus & Millichap

Carolina Pavilion Sold for $106M

By Eliza Theiss, Associate Editor

The start of a new year, as always, is the time of new reports in the real estate industry. And so DDR Corp., an owner and manager of value-oriented shopping centers in North and South America, has released its sales and acquisitions activity report for the fourth quarter of 2012. According to a press release, two major acquisitions were made in Q4 2012, both in North Carolina.

One of the purchased properties is Carolina Pavilion—the 852,000-square-foot prime shopping center located on the corner of South Boulevard and Interstate 485 in Charlotte. Purchased for $106 million, the power center is currently 94 percent leased, with that percentage expected to increase in the near future, as 85,000 square feet of currently vacant space will be taken up by national chains such as Golfsmith and PetSmart.

Current anchor tenants include Target, Kohl’s, Bed, Bath &Beyond, AMC Theatres, Nordstrom Rack and Craft Stores, among others. Carolina Pavilion has a trade area population of 812,000, with average household incomes of $78,000, serving the affluent suburbs to the south of the Queen City, as well as the I-77 residential corridor and neighborhood of South Charlotte.

The other recently acquired North Carolina property is 434,000-square-foot Poyner Place in Raleigh. The 96 percent leased prime power center was purchased for $45 million. Boasting anchor tenants such as Target, Old Navy and World Market, among others, the shopping center sits in a trade area populated by 367,000, with average household incomes of $78,000.

Neither property is encumbered by mortgage debt. Funding for both purchases was provided by a combination of asset sale proceeds, new common equity and unsecured notes issued in November.

Photo courtesy of Kelly Martin via Wikimedia Commons

Chart courtesy of Marcus & Millichap

Regency Buys Interest in Philips Place; 476-Unit Apartment Community Sold in $95M Portfolio

By Eliza Theiss, Associate Editor

Regency Centers, a national owner, operator and developer of grocery-anchored and community shopping centers, acquired four such complexes in November 2012 at a total purchase price of $188.5 million. Among the properties picked up is Charlotte’s Philips Plaza—a 133,059-square-foot upscale retail center located at the intersection of Fairview Road and Cameron Valley Parkway in the affluent SouthPark submarket.

Philips Place is 99 percent leased to clients that include Dean & Deluca, Brooks Brothers and Regal Cinemas. According to a press release, Regency purchased a 50 percent interest in the complex for $27.7 million.

The company also purchased Uptown District—a 148,638-square-foot urban center in San Diego—for $81.1 million, as well Sandy Springs Plaza—a 115,794-square-foot shopping center in Atlanta. The latter was picked up for $35.3 million.

Regency’s fourth purchase had a price tag of $16.7 million, yet the company only ended up paying $3.3 million. This is because only a share of Village Plaza—a neighborhood center located in Chapel Hill, N.C.—was bought. Regency also shed its interest in three properties for $49.7 million.

In other news, Elco Landmark Residential REIT, an owner and operator of multifamily properties located throughout the southeastern United States, announced entering a private label partnership with Timbercreek Asset Management. The partnership purchased a four-property multifamily portfolio from Colonial Properties Trust for $95.4 million. The 1,380-unit portfolio is collectively 95 percent occupied.

Among the purchased properties is the 476-unit Heatherwood Apartment Homes in Charlotte. Located at 5931 Providence Rd., the 1980-built apartment community boasts two pools, a 24-hour work-out facility, business center, children’s play area and two tennis courts.

According to a press release, Elco will renovate and re-brand the entire portfolio. Estimated to take about 10 months, the renovation will include upgrades such as adding dog parks, cafés, business centers and Wi-Fi technology. Clubhouses will be remodeled and interior lighting is set to be replaced, this along with cabinet doors, kitchen and bath floors, and carpeting. New appliances will also be added.

The portfolio’s other assets include the 229-unit Colonial Village at Canyon Hills in Austin, Texas, the 250-unit Colonial Village at Highland Hills in Chapel Hill, N.C., and the 425-unit Autumn Hill Apartments in Charlottesville, Va.

Photo courtesy of Heatherwood Apartment’s Google+ profile

Crescent Resources Announces $36M Student Housing Project

By Eliza Theiss, Associate Editor

Charlotte-based real estate development company Crescent Resources recently announced its new Circle University City project—a 546-bed student housing complex near the University of North Carolina (UNC) Charlotte campus. Construction on the $36 million community is set to start by December 23.

The ambitious project represents an emerging trend in student housing—communities that offer students upper-echelon amenities and green features. The 187-unit community will offer features such as a salt-water pool, tanning beds and outdoor fire pits.

The community’s design will draw on architectural elements from the UNC Charlotte campus. As such, residents will enjoy generous living areas and open floor plans. Recycled materials will be used in the development process. Solar power will also be implemented, along with other, yet-to-be-announced environmentally sustainable elements.

“Circle University City will offer a unique student living experience that isn’t typically found in campus housing. The community’s targeted amenities will provide a great environment for both study and recreation,” said Ben Collins, regional director for Crescent Resources, in a press release.

Financing for the project is being provided by equity from Crescent Resources and a construction loan from Regions Bank. Crescent also partnered up with Charlotte-based Carbon Properties LLC—a real estate development company specializing in providing integrated sustainable development initiatives to reduce a project’s carbon footprint.

Charlotte-based architecture firm BeachamBunce+Manley Architecture (BB+M) is also signed on to the project, as is local interior design firm Vignette Interior Design. LandDesign was selected as civil engineer and landscape architect for the project, while Adolfson & Peterson Construction was named general contractor. Greystar will handle property management.

The project was prompted by UNC Charlotte’s soaring enrollment, which is expected to continue in the next few years. Due to record number of students choosing the university, campus housing has become an issue. Circle University City will relieve some of the pressure on housing around the campus, as the wave of units will be available in time for the fall 2014 semester.

Photo courtesy of LandDesign

Chart courtesy of Marcus &Millichap

$34M Medical Facility Expansion Completed; Cole Corporate Purchases $42M Office Building

By Eliza Theiss, Associate Editor

The Catawba Valley Medical Center has announced the dedication of the new Pavilion at Catawba Valley Medical Center (CVMC) in Hickory, N.C.—marking the completion of a $34 million project. Located at 810 Fairgrove Church Rd., the 258-bed Catawba Valley Medical Center recently underwent a $34 million expansion and renovation, seeking to upgrade comfort, technology and cost-effectiveness.

The project included the renovation of surgical suites as well as the recently dedicated Pavilion, housing the Comprehensive Cancer Center and the Center for Women & Children.

The Comprehensive Cancer Center houses the Inpatient Oncology Unit and the relocated Infusion Center, now equipped with personal entertainment options and lounge chairs, while the Center for Women & Children houses the expanded 15,000-square-foot Level III Neonatal Intensive Care Unit (NICU) for critically ill infants.

The improved NICU, featuring private rooms, is the only such facility in the area. An upgraded Birthing Center with sizeable, up-to-date labor and delivery suites is also available onsite. $3.6 million of the necessary $34 million were covered by community donations.

Catawba Valley Medical Center in Hickory, N.C. is the region’s largest non-profit, public healthcare hospital. It provides both physical and mental health care services, while also serving as a center for health education, wellness services, preventive medicine and acute care, receiving no direct funding from taxes.

In other news, Charlotte Raleigh Citybizlist reports that Cole Corporate Income Trust Inc. is expected to purchase a 284,010-square-foot building in Charlotte for $42.171 million. Though the report does not specifically name the property, it is identified as the building leased by Compass Group North America—the food service management and support services company affiliated with the U.K.-based Compass Group PLC. Compass Group North America’s headquarters is listed at 2400 Yorkmont Rd. in the Coliseum Centre area.

Furthermore, in late 2011, Citybizlist reported Compass renewing and expanding a 12.5-year 214,507-square-foot lease at Coliseum Centre One and Two. It can be concluded that Cole Corporate is purchasing one of the Class A office buildings in the six-building, 979,000-square-foot Coliseum Centre, purchased earlier this year by Cargill affiliate CarVal Investors LLC and Vision Equities. The deal is expected to close by the end of December 2012.

Photo courtesy of Catawba Valley Medical

Chart courtesy of Colliers International

Crescent Develops $33M Luxury Apartment Community in Charlotte

By Eliza Theiss, Associate Editor

Crescent Resources is continuing its expansion in Charlotte’s multifamily market. For its newest project, the Charlotte-based developer has partnered up with Global Growth Trust Inc., a non-traded REIT focused on providing capital appreciation for investors. The result of this partnership will be Circle Alexander Village—a $33.6 million luxury apartment community that will rise on 18.6 acres in the northeastern part of Charlotte.

The 320-unit luxury garden-style community will feature one-, two- and three-bedroom apartments, the first of which will be available in fall of 2013. Units will be done in the style of vernacular classical revival architecture.

Circle Alexander Village will feature top community amenities—a pool plaza that will include a resort-style saltwater pool; a sundeck; lounging areas; bocci courts; an outdoor fireplace; and an outdoor kitchen. The community clubhouse will boast a business center, cyber café, gaming area, clubroom and a catering kitchen.  The apartment complex will encourage a healthy lifestyle with its state-of-the art gym, yoga lawn, dog park, walking trail and pond.

“The Circle brand represents upscale apartment living with environmentally sensitive attributes and social programming with the goal to build a strong community and enhance our residents’ lives,” declared Ben Collins, regional director for Crescent’s multifamily division, in a press release. And true to its eco-consciousness, Circle Alexander Village will pursue not only LEED certification, but an Audubon International Signature Sanctuary designation as well.

The Preston Partnership has been chosen as architect for the project, while LandDesign has been designated as landscaping architect and civil engineer. The construction lender is Regions Bank, while equity investments will be made by both parties of the partnership. Global Growth Trust will put forward 60 percent, and Crescent Resources will contribute the remaining 40 percent.

Circle Alexander Village is located within University Research Park near I-85, providing convenient access to both Downtown and the Greater Charlotte Area. The apartment community is only the first phase in a 62-acre mixed-use project Crescent Resources plans to develop.

Circle Alexander Village represents the second partnership between CNL Financial Group affiliate Global Growth Trust and Crescent Resources after partnering on Circle Crosstown—the $37 million apartment community in Tampa, Fla. currently under construction.

Crescent Resources’ 360-unit Circle at South End sold earlier this year for $74 million.

Photo courtesy of Circle at South End – Charlotte’s Facebook profile

Chart courtesy of Marcus & Millichap 

Hines Continues Green Streak in Charlotte with Carillon LEED Gold Certification

By Eliza Theiss, Associate Editor

International real estate firm Hines reiterated its commitment to sustainability, announcing the LEED Gold Certification of the 24-story Carillon office tower in downtown Charlotte. The announcement came hot on the heels of news that Hines was selected by the North Carolina Department of Transportation (NCDOT) as master developer for the $200 million Gateway Station—the multi-modal transit center anchoring the 20-acre transit-oriented and mixed-use development set to re-energize uptown Charlotte.

Purchased by Hines in 2007, the 24-story corporate office tower has since received the ENERGY STAR® energy performance label yearly. Its current ENERGY STAR® rating of 88 means that the property is 38 percent more energy-efficient than an average office building, generating a $0.66 per-square-foot energy cost saving. All in all, the Carillon’s energy efficiency saves greenhouse gases equivalent to the annual output of 554 passenger vehicles.

Among the green features and practices that earned Carillon Gold under the U.S. Green Building Council’s LEED for Existing Buildings Rating System are its energy-efficient lighting with reduced mercury content, low-flow water fixtures, an 84 percent waste diversion rate recycling program, the implementation of eco-friendly cleaning practices and products and the Hines signature Green Office for Tenants program, which assists tenants in reducing their environmental footprint.

“Energy savings, equipment efficiencies, water conservation and recycling programs directly benefit the tenants in terms of lower operating costs,” said Hines General Manager Michael Delev in a press release. “In addition, LEED certification strengthens the unique public-private collaborative efforts of the Envision Charlotte program, whose goal is to spur sustainable behaviors and reduce defined environmental resource use and related cost by up to 20 percent within five years in the Uptown Loop.”

Located at 227 W. Trade St. in Charlotte’s downtown submarket, Carillon offers 470,726 square feet of leasable area. Tenants include the U.S. Attorney’s Office, Crescent Resources, Greer & Walker and IBM, among others. Designed by Thompson, Ventulett, Stainback & Associates, the office tower features neo-Gothic architectural elements and was completed in 1989.

Photo courtesy of Uptown Charlotte’s Facebook page

Chart courtesy of Marcus & Millichap