$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