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.

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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.

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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).

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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.

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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.

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Image courtesy of Kozo via Wikimedia Commons